Higher Education Act Reauthorization: A Comparison of Current Law and Major Proposals

Higher Education Act Reauthorization: A Comparison of Current Law and Major Proposals

Order Code RL33415
CRS Report for Congress
Received through the CRS Web
Higher Education Act Reauthorization:
A Comparison of Current Law
and Major Proposals
May 2, 2006
Adam Stoll, Coordinator
Charmaine Mercer, Rebecca R. Skinner,
David P. Smole, Gail McCallion,
Ann Lordeman, Jeffrey J. Kuenzi
Specialists and Analysts in Social Legislation
Laura L. Monagle
Information Research Specialist
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

Higher Education Act Reauthorization: A Comparison
of Current Law and Major Proposals
Summary
The Higher Education Act of 1965 (HEA) includes the federal government’s
major student aid programs, as well as other significant programs such as those
providing aid to special groups of higher education institutions and support services
to enable economically disadvantaged students to complete secondary school and
enter and complete college. The HEA student aid programs supported some 63% of
all federal, state, and institutional aid awarded to postsecondary students in 2003-
2004 (excluding all tax benefits).
The HEA was last comprehensively reauthorized by the Higher Education
Amendments of 1998 (P.L. 105-244). P.L. 109-212, signed into law April 1, 2006,
temporarily extended the programs and activities of the HEA through June 30, 2006.
During the first and second sessions of the 109th Congress, the Congress has
actively considered HEA reauthorization. H.R. 609, an HEA reauthorization bill,
was passed in the House on March 30, 2006. This report provides a side-by-side
comparison of current law with HEA reauthorization proposals that are in the House-
passed version of H.R. 609. The side-by-side comparison in this report will be
updated to include a column on Senate provisions should a reauthorization measure
gain passage in the Senate this session.

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
List of Tables
Table 1. Comparison of Current Law with H.R. 609,
as Passed by the House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Higher Education Act Reauthorization:
A Comparison of Current Law
and Major Proposals
Introduction
The Higher Education Act (HEA) legislation, whose programs are administered
by the U.S. Department of Education (ED), includes the federal government’s major
student aid programs, as well as other significant programs such as those providing
aid to special groups of higher education institutions and support services to enable
economically disadvantaged students to complete secondary school and enter and
complete college. Although important support from outside of the HEA flows to
postsecondary institutions through multiple federal agencies for activities such as
research and development, the federal presence in postsecondary education is shaped
to a significant degree by the HEA. The HEA student aid programs supported some
63% of all federal, state, and institutional aid awarded to postsecondary students in
2003-2004 (excluding all tax benefits).1
The HEA was last comprehensively reauthorized by the Higher Education
Amendments of 1998 (P.L. 105-244). The Higher Education Extension Act of 2006
(P.L. 109-212), signed into law on April 1, 2006, temporarily extended the programs
and activities of the HEA through June 30, 2006.
During the first session of the 109th Congress, the Congress actively considered
HEA reauthorization. HEA reauthorization activities ultimately became heavily
intertwined with the budget reconciliation process. The Concurrent Resolution on
the FY2006 Budget (H.Con.Res. 95, H.Rept. 109-62) included reconciliation
instructions that directed authorizing committees to report legislation to reduce
mandatory spending for the period FY2006-FY2010. Under the reconciliation
instructions, the House Committee on Education and the Workforce was responsible
for a reduction of $12.7 billion overall for FY2006-FY2010, and the Senate
Committee on Health, Education, Labor, and Pensions was responsible for a
reduction of $13.7 billion for FY2006-FY2010. Two HEA programs, the Federal
Family Education Loan (FFEL) program and the William D. Ford Direct Loan (DL)
program, are two of the major mandatory programs under each committee’s
jurisdiction. Each committee looked to reduce mandatory spending on these federal
student loan programs.
During the first session of the 109th Congress, the House Committee on
Education and the Workforce reported an HEA reauthorization bill and the Senate
1 The College Board, Trends in Student Aid 2005.

CRS-2
Health, Education, Labor, and Pensions Committee ordered reported an HEA
reauthorization bill. A large number of reconciliation provisions were included as
a part of each of these HEA reauthorization bills (H.R. 609 and S. 1614). Each
committee then approved reconciliation recommendations (drawn from many of the
reconciliation provisions included in H.R. 609 and S. 1614) that were sent on to the
respective budget committees and included in omnibus reconciliation bills that were
adopted in each chamber. The President signed the Deficit Reduction Act (DRA) of
2005 (P.L. 109-171) into law on February 8, 2006. It reduces mandatory spending
by an estimated $38.8 billion over a five-year period. Student loan provisions
generate an estimated $11.9 billion in mandatory savings over that period.2
Additionally, the DRA includes provisions that increase direct spending. Among
these provisions, the principal increases stem from the introduction of Academic
Competitiveness and Science and Mathematics Access to Retain Talent grant
programs which would provide grants that would supplement Pell grants, a reduction
of student borrower fees, increased student loan limits, and various changes to need
analysis. The DRA also includes provisions that extend the program authorities of
the FFEL and DL programs through FY2012 and FY2011, respectively.
In general, the DRA provisions that were taken from H.R. 609 and S. 1614 dealt
with mandatory spending. HEA reauthorization provisions without direct mandatory
spending implications introduced in these reauthorization bills are once again
receiving active consideration. An amended version of H.R. 609 was passed by the
House on March 30, 2006. It is expected that an amended version of S. 1614 may
soon be introduced as well.
This report provides a side-by-side comparison of HEA reauthorization
proposals which are in the House-passed version of H.R. 609 to current law. The
side-by-side comparison is generally organized in a manner that corresponds with the
organization of H.R. 609. The side-by-side comparison in this report will be updated
to include a column on Senate provisions should a reauthorization measure gain
passage in the Senate this session.
It is important to note that the side-by-side comparison, which is presented in
this report (below), aims to provide a summary of the larger issues addressed in H.R.
609 as they relate to current law. In the interest of concision, we have not attempted
to capture all changes proposed in the bill. Also please note that H.R. 609 includes
provisions that extend the program authorities of programs discussed, in almost all
instances, through FY2012. For the most part, only those provisions that extend
program authorities for a different time period are discussed in the side by side
comparison.
2 Congressional Budget Office, Cost Estimate, S. 1932, The Deficit Reduction Act of 2005,
Conference Agreement as Amended and Passed by the Senate on Dec. 21, 2005. Some of
the student aid provisions in the act reduce direct spending while others increase costs;
$11.9 billion reflects the projected net savings after new costs are accounted for.

CRS-3
Table 1. Comparison of Current Law with H.R. 609, as Passed by the House
Current law
H.R. 609 (passed by the House)
H.R. 609, Title I — General Provisions
The HEA contains two definitions of an institution of higher education
Changes to only one definition of an IHE for both Title IV and non-Title
(IHE) — one for non-Title IV purposes (Section 101) and one for Title
IV purposes. The single definition retains many of the provisions in
IV purposes (Section 102). (Title IV authorizes student aid programs.)
current law Sections 101 and 102.
Selected provisions from the Section 101 definition of an IHE:
Includes the following changes in the single definition of an IHE:
! Admits as regular students only individuals who have
! Expands criteria of students who may be admitted as
a certificate of graduation from a secondary school or
regular students to include home schooled students and
its recognized equivalent; persons above the age of
students dually enrolled in an IHE and a secondary
compulsory attendance may also be admitted as
school.
regular students.
! Expands degrees awarded criteria to include graduate
! An IHE must provide a program for which the
or first professional degrees. Also includes a degree
institution awards a bachelor’s degree or provide not
that is acceptable for admission to a graduate or
less than a two-year program of study that is
professional degree program if approved by the
acceptable for full credit toward a bachelor’s degree.
Secretary.
! Institutions are also considered IHEs if they provide
! Permits institutions to award a certificate for an
not less than a one-year program of training to prepare
eligible program that prepares students for gainful
students for gainful employment in a recognized
employment in a recognized occupation and be
occupation.
considered IHEs. Certificate programs are not required
to be at least one-year programs.
Proprietary (for profit) institutions are required to earn 10% of their
Repeals the 90/10 rule as a condition of institutional eligibility for
revenue from non-Title IV sources of revenue as a condition of
proprietary institutions and moves it to the Program Participation
institutional eligibility. This is commonly referred to as the 90/10 rule.
Agreement (PPA) where it applies to all IHEs. (See detailed discussion
of 90/10 rule under Title IV, Part G.)
Proprietary (for profit) institutions are only considered IHEs for Title
Considers proprietary institutions IHEs only if they have been in
IV purposes if they have been in existence for at least two years.
existence for at least two years.
No similar provision.
For programs providing grants to institutions for use by the institution (as
opposed to students), proprietary institutions are considered IHEs for the
purposes of competitive grant programs only.

CRS-4
Current law
H.R. 609 (passed by the House)
Postsecondary vocational institutions are only considered IHEs for Title
Considers postsecondary vocational institutions IHEs only if they have
IV purposes if they have been in existence for at least two years.
been in existence for at least two years.
An institution is not Title IV eligible if the institution, its owner, or its
Expands criteria to include federal, state, or local government funds
chief executive officer has been convicted of, pled nolo contendere or
rather than Title IV funds only.
guilty to a crime involving the acquisition, use, or expenditure of Title
IV funds or been judicially determined to have committed fraud
involving Title IV funds.
IHEs that enroll 50% or more of their students in correspondence
The Secretary of Education (Secretary) may waive this requirement for
courses, excluding courses offered by telecommunications, lose their
good cause for an IHE that provides a two-year or four-year program of
Title IV eligibility.
instruction for which it awards an associate’s or bachelor’s degree,
respectively.
IHEs meeting the definition in section 521(4)(C) of the Carl D. Perkins
Updates reference to Section 3(3)(C) of the Carl D. Perkins Vocational
Vocational and Applied Technology Education Act are excluded from
and Technical Education Act of 1998.
the 50% rules governing the percentage of courses that may be offered
through correspondence or the percentage of students that may be
enrolled in courses offered through correspondence.
The Secretary may waive the requirement that an institution have 25%
Extends availability of waiver to proprietary institutions.
or less of its student enrollment in incarceration for nonprofit IHEs that
offer a two-year or four-year program of instruction for which a
Changes “postsecondary diploma” to “postsecondary certificate.”
bachelor’s degree, associate’s degree, or postsecondary diploma is
awarded.
The Secretary may waive the requirement that prohibits IHEs in which
Changes the requirement to apply to IHEs in which more than 50% of the
more than 50% of the students do not have a secondary school diploma
students were not homeschooled or do not have a secondary school
or its equivalent and the IHE does not provide a two-year or four-year
diploma or its equivalent.
program of instruction for which it awards an associate’s or bachelor’s
degree from being considered IHEs for Title IV purposes for nonprofit
Extends availability of waiver to proprietary institutions.
institutions that exceed the limitation because they serve such students
through federal, state, or local contracts.
Institutions outside the US are only eligible to participate in Part B of
Adds an additional requirement that an institution outside the US must
Title IV (the FFEL student loan program) if they are found to be
be legally authorized by the education ministry or comparable agency of
comparable to an IHE as defined in Section 101 based on criteria
the country in which the institution is located.
established by the Secretary and are approved for participation based on
criteria established by the Secretary.

CRS-5
Current law
H.R. 609 (passed by the House)
An advisory panel comprised of medical experts is charged with
Specifies that the advisory panel only qualifies foreign graduate medical
determining whether an institution outside of the US is eligible to
institutions for the purposes of Part B of Title IV.
participate in Part B of Title IV.
No similar provision.
Includes additional restrictions for proprietary institutions under the
single definition of an institution of higher education:
! May not use HEA funds (except those received by the
institution from Title IV aid awarded to students) for
construction, maintenance, renovation, repair, or
improvement of facilities; establishing, improving, or
increasing an endowment fund; or establishing or
improving an institutional development office.
! Are not eligible to participate in Title III or Title V
(institutional aid) programs.
! Are not automatically eligible to participate in
programs outside the HEA that reference the Section
101 definition of an IHE, unless the program
legislation is changed to specifically include
proprietary institutions.
! Are not automatically eligible to participate in
programs outside the HEA that reference institutional
eligibility to participate in Title III or Title V of the
HEA, unless the program legislation is changed to
specifically include proprietary institutions.
A sense of Congress addresses the protection of student speech and
Expands on the current sense of Congress in several ways, including new
association rights.
provisions specifying that students should not be treated adversely due
to their “political, ideological, or religious beliefs.” Also requires that
any official sanctions imposed on students must be done so “objectively,
fairly, and without regard to the student’s personal political, ideological,
or religious beliefs.”

CRS-6
Current law
H.R. 609 (passed by the House)
No similar provision.
Requires that no HEA funds be used for publicity or propaganda
purposes not authorized by Congress prior to the date of enactment of
this act. If authorized by law prior to this date, funds may not be used to
produce a prepackaged news story intended for broadcast or distribution
unless the story includes clear notification of the source of funding.
No similar provision.
Requires the College Opportunities Online (COOL) website operated by
the Department of Education (ED) to be redesigned based on input from
experts knowledgeable about data that are relevant to current and
prospective students. Requires the redesigned website to include all data
currently reported by IHEs to ED, to the extent practical, ensure data
across institutions are comparable through the use of common
definitions, and include a new sorting feature to enable users to
customize their comparisons of institutions.
IHEs must report data on tuition and fees, cost of attendance, and
Adds data reporting requirements, including instructional expenditures,
financial assistance. The Secretary is required to make these data
completion and graduation rates, and faculty information. The
publicly available.
Commissioner of Education Statistics is required to make these data
publicly available.
No similar provision.
Creates a college affordability index for each IHE based on the
percentage increase in tuition and fees over a three-year period compared
with the percentage increase in the Consumer Price Index-All Urban
Consumers (CPI-U) over the same time period. IHEs whose index
exceeds 2.0 will be subject to reporting requirements. Each IHE having
an index in the top 5% of all indexes exceeding 2.0 will be required to
develop quality-efficiency task forces. IHEs failing to reduce their
affordability index below 2.0 for two consecutive years will be placed on
affordability alert status. The Secretary will make information in reports
submitted by IHEs available to the public through COOL.
No similar provision.
Requires GAO to conduct a study of the policies and procedures
implemented by institutions that increase the affordability of
postsecondary education.
The Secretary is required to survey student aid recipients at least once
Changes the requirement to at least once every four years.
every three years.
No similar provision.
Prohibits the development of a national student information database.

CRS-7
Current law
H.R. 609 (passed by the House)
H.R. 609, Title II — Teacher Preparation
States and partnerships may receive a Title II, Part A grant only once.
Eliminates the limitation on the number of times states may receive
grants.
Terms pertaining to teacher quality are defined without reference to
Defines new terms adopted from the ESEA including highly qualified,
teacher provisions in the Elementary and Secondary Education Act of
exemplary teacher, professional development, scientifically based
1965 (ESEA).
reading research, and scientifically based research. Also, defines the new
term — teaching skills. Inserts the term “highly qualified” in all current
provisions that refer to teacher quality and competency.
State grantees can choose among several uses of funds including reform
Retains the current allowable activities and adds language that these
of teacher preparation programs, reform of certification or licensure
activities be coordinated with those provided under ESEA Title II,
requirements, alternative routes to certification, and teacher recruitment.
Section 2113(c). Adds a new allowable activity involving “innovative
programs” that support charter colleges of education and partnerships
between universities and local educational agencies.
Partnership grantees must include a high-need LEA defined as one that
Retains the out-of-field and turnover portions of the definition and
serves a school located in an area that has either (1) a high percentage
amends the first component of the definition by including rural LEAs and
of students from families below the poverty line, (2) a high percentage
specifying minimum enrollment counts or percentages of low-income
of out-of-field teachers, or (3) a high teacher turnover rate.
students.
Any entity in a partnership is prohibited from retaining more than 50%
Amends this provision to require that the high-need LEA benefit directly
of the partnership grant.
from at least 50% of the funding.
Partnerships are required to undertake one of three activities —
Adds a fourth allowable activity — training teachers to serve students
accountability for teacher preparation programs, preservice clinical
with different learning styles and to improve student behavior — and
experience activities, and professional development.
requires partnerships to engage in at least one of the four activities.
State grantees are required to report annually on progress made toward
Expands and specifies the data to be included in these reports and ties
program goals.
these requirements to the highly qualified teacher provisions in the
ESEA.
No similar provision.
Adds three new programs: Centers of Excellence to implement reforms,
provide pre-service experience, and develop retention initiatives; a
Teacher Incentive Fund to develop, implement, or expand teacher
compensation systems that reward teachers based on student
achievement; and a National Teacher Corps Program to increase the
number of highly-qualified teachers in high-need LEAs.

CRS-8
Current law
H.R. 609 (passed by the House)
H.R. 609, Title III — Institutional Aid (General)
Title III is intended to provide support for less-advantaged institutions
Eligible IHEs must provide a program that is not less than a two-year
serving students from low-income or racial minority backgrounds.
education program and is acceptable for full credit towards a bachelor’s
Eligible IHEs must award bachelor’s degrees or be a junior or
degree.
community college.
H.R. 609, Title III — American Indian Tribally Controlled Colleges and Universities
Tribal College or University (TCU) has the same meaning as tribally
TCU would be defined as any of 34 delineated institutions that qualify
controlled college or university in Section 2 of the Tribally Controlled
for funding under the TCCUAA or the EELGSA and any other institution
College or University Assistance Act of 1978 (TCCUAA) and includes
that meets the definition of a tribally controlled college or university in
institutions listed in the Equity in Educational Land-Grant Status Act of
Section 2 of the TCCUAA and meets all of the other requirements of
1994 (EELGSA).
HEA Title III, Section 316.
The Secretary shall ensure maximum and equitable distribution of funds
Would establish a new allocation formula. The formula would allocate
among all eligible institutions.
funds to each participating institution as follows: 50% of allocation
would be based on the number of Pell Grant recipients and the remaining
50% based on the number of degrees/certificates awarded. The
minimum grant would be $500,000 per institution.
Grants may be used to assist tribally controlled colleges and universities
Expands the list of identified activities for which grant funds are
to plan, develop, undertake, and carry out activities to improve or
authorized to be used to include acquiring real property adjacent to the
expand their capacity to serve their target student populations.
campus of the institution on which to construct instructional facilities,
Authorized activities include, among other things, renovating
and developing or improving facilities for Internet use or other distance
instructional facilities, providing academic tutoring, counseling and
learning academic capabilities.
student support services, and purchasing educational materials.
H.R. 609, Title III — Alaska Native and Native Hawaiian-Serving Institutions
Grants may be used to assist Alaska Native and Native Hawaiian-
The authorized activities for Alaska Native and Native Hawaiian-serving
serving institutions to plan, develop, undertake, and carry out activities
institutions would be expanded to include the use of funds to establish or
to improve or expand their capacity to serve their target student
increase the institution’s endowment. Not more than 20% of the grant
populations. Examples of authorized activities include renovating
could be used for this purpose and the institution would be required to
instructional facilities and providing academic tutoring.
match federal funds with non-federal funds.

CRS-9
Current law
H.R. 609 (passed by the House)
H.R. 609, Title III — Historically Black Colleges and Universities (HBCUs)
Minimum grant is $500,000 per institution.
If the funds appropriated are sufficient to provide each HBCU with the
amount they received in the preceding fiscal year, then the excess should
first be allotted to increase the minimum grant to $750,000 per
institution.
No similar provision.
An institution can use up to 2% of the grant funds for technical
assistance services. Technical assistance services may include enrollment
management, financial management, and strategic planning. Use of
funds for such purposes must be annually reported to the Secretary.
Grants may be used to assist historically black colleges and universities
Expands the list of activities for which grant funds are authorized to be
to plan, develop, undertake, and carry out activities to improve or
used to include acquiring real property adjacent to the campus of the
expand their capacity to serve their target student populations.
institution on which to construct instructional facilities, and developing
Authorized activities include, among other things, construction,
or improving facilities for Internet use or other distance learning
renovating instructional facilities, providing academic tutoring,
academic capabilities.
counseling and student support services, and purchasing educational
materials.
H.R. 609, Title III — Historically Black Colleges and Universities, Professional or Graduate Institutions
There are 18 existing eligible grantees.
The list of eligible graduate and professional schools/programs (Part B,
Section 326) would be expanded to include Alabama State University;
Coppin State; Delaware State University; Prairie View A&M; Langston
University; West Virginia State University; and Fayetteville State
University.
H.R. 609, Title IV: Part A, Grants to Students — Pell Grants
Existing program authority expired in FY2004. The most recent
Extends program authority for Pell Grant awards until FY2013.
authorized maximum Pell Grant award is $5,800 for academic year
Authorized maximum Pell Grant award is $6,000 from academic year
2003-2004.
2007-2008 through academic year 2013-2014.
The Secretary may make Pell Grant payments directly to an eligible
Deletes this provision.
student, in advance of the academic year, if the institution elects not to
participate in disbursement system.

CRS-10
Current law
H.R. 609 (passed by the House)
If the maximum appropriated Pell Grant award is greater than $2,700,
Eliminates tuition sensitivity.
tuition sensitivity is invoked. As implemented by ED, tuition sensitivity
reduces the Pell Grant for a small number of the neediest students
attending institutions with very low tuition charges.
Students are allowed to take remedial and non-credit courses that the
Limits the receipt of a Pell Grant award for remedial and non-credit
institution determines are necessary without restrictions.
courses to not more than one academic year.
Students who are enrolled in elementary or secondary school are not
Allows students who are enrolled full-time, in a gifted student program
eligible for Title IV student aid.
that leads to fully transferable college academic credit, and who reside
on a residential college campus, and are eligible for a Pell Grant, except
for the fact that he/she is in secondary school, to receive a Pell Grant for
up to two years.
No similar provision.
Authorizes year-round Pell grants for students who enroll for 12 months
rather than nine in a four-year or two-year institution. A four-year
institution must have at least a 30% graduation rate in the preceding four
years reported in the Integrated Postsecondary Education Data System
(IPEDS). A two-year institution must have a graduation rate reported in
IPEDS at least once in the last three years that is above average for the
applicable year for the institution’s type and control.
No similar provision.
The Secretary must conduct an evaluation of the year-round Pell Grant
program and report to Congress no later than October 1, 2011.
No similar provision.
Makes individuals confined to civil commitment centers for sexual
offenders ineligible for Pell Grants.
No similar provision.
Pell Grant receipt would be limited to 18 semesters or 27 quarters. Limit
would be determined without regard for attendance status (full-time or
part-time) and would include time prior to the enactment of the College
Access and Opportunity Act (H.R. 609).
Academic Competitiveness Grants provide grants in the amount of $750
Establishes an additional supplemental grant program for Pell eligible
(first-year students) and $1,300 (second-year students), for Pell eligible
students — the Pell Grant Plus: Achievement Grants for State Scholars
students who completed a rigorous secondary school program. The
Program. Similar to the Academic Competitiveness Grants, but would
rigorous program is one that is designated as such by a state or local
provide $1,000 grants for Pell eligible students who completed a rigorous
education agency and recognized by the Secretary. Students must be
high school curriculum established by state in consultation with Center
enrolled full-time, in their first or second academic year.
for State Scholars. Students must be enrolled full-time, in their first
academic year, not previously enrolled.

CRS-11
Current law
H.R. 609 (passed by the House)
H.R. 609, Title IV: Part A, Grants to Students — Academic Competitiveness Grants
States that the “rigorous secondary school program” is established by
Clarifies that the rigorous program must be beyond the basic graduation
the state or local education agency and recognized by the Secretary of
requirements and must be recognized as such by the designated state
Education.
official, or with respect to any private school or home school, the
designated school official for such school.
H.R. 609, Title IV: Part A, Grants to Students — TRIO and GEARUP
Trio grants are awarded for a four-year period; except for Staff
Extends the grant period of the major Trio programs to five years,
Development Grants which are two years in duration. The minimum
increases the minimum award for all but Staff Development Grants to
award amount for Student Support Services and Staff Development
$200,000, synchronizes the grant cycles, allows for multiple grants to
Grants is $170,000; the minimum for Talent Search and Educational
multi-campus IHEs, and allows multiple grants to the same campus that
Opportunity Center Grants is $180,000; and the minimum for Upward
serve different populations. Also, adds foster care youth to the list of
Bound and McNair Grants is $190,000. Grant cycles for the various
students eligible for participation in the Trio programs.
Trio programs begin in different fiscal years and only one grant may be
given to a single IHE.
Priority points are given to applicants with prior experience.
Charges the Government Accountability Office (GAO) with conducting
a study of the impact of prior experience consideration on the
distribution of grants and the continuity of programs. Specifies program
outcomes which the Secretary should consider when assessing an
applicant’s performance.
Only one of the five Trio programs that provide direct services to
Adds to each Trio program’s list of permissible services a provision for
students contains a statutory requirement to provide a specific service.
support services that improve participants’ financial literacy.
Upward Bound grantees must provide instruction in specified core
academic subject-matter.
Upward Bound grantees are allowed to provide stipends to participating
Increases the maximum stipend to $100 for June, July, and August and
students in a monthly amount not to exceed $60 during the months of
$60 during the remaining months.
June, July, and August and $40 during the remaining months.
Gaining Early Awareness and Readiness for Undergraduate Programs
Ensures that prior grantees receive consideration for an additional grant,
(GEAR UP) grants are awarded to states and partnerships for a period
extends grants to a period of six years, and allows service provision to
of five years.
continue through the first year of college.

CRS-12
Current law
H.R. 609 (passed by the House)
H.R. 609, Title IV: Part A, Grants to Students — Federal Supplemental Educational Opportunity Grants
FSEOG aid must be awarded first to students with exceptional financial
Pell Grant recipients have priority for FSEOG aid; and IHEs may award
need, with priority going to students who receive Pell Grants.
only 10% of FSEOG aid to students who did not receive a Pell Grant in
a prior year.
The Secretary may allocate up to 10% of the amount appropriated to
The Secretary may allocate up to 10% of the amount appropriated to
carry out this part (HEA Title IV, Part A) that exceeds $700 million to
carry out this part (HEA Title IV, Part A) that exceeds $700 million to
IHEs at which 50% or more of Pell Grant recipients either graduate or
IHEs at which at least 10% of students receive Pell Grants, and which
transfer to four-year institutions.
have graduation rates for Pell Grant recipients which exceed the median
rate for the particular class of institution.
The allowance for books and supplies used in calculating “fair share”
Increases the allowance for books and supplies to $600.
allocations is $450.
H.R. 609, Title IV: Part A, Grants to Students — Leveraging Educational Assistance Partnership (LEAP) Program
The Leveraging Educational Assistance Partnership (LEAP)
Extends the authorization through FY2012.
Program/Special Leveraging Educational Assistance Partnership
(SLEAP) Program provides formula grants to states to assist them in
providing need-based grants and community service work-study
assistance to eligible postsecondary students.
H.R. 609, Title IV, Part A, Grants to Students — HEP/CAMP Program
Provides educational assistance and services to persons who themselves,
Makes the spouses of such workers eligible for the program and adds
or their parents, have spent a minimum of 75 days during the previous
child care, transportation, financial counseling, mentoring, and follow-up
24 months in migrant or seasonal farmwork.
to the list of allowable activities.

CRS-13
Current law
H.R. 609 (passed by the House)
H.R. 609, Title IV: Part A, Grants to Students — Robert C. Byrd Honors Scholarship Program
Merit-based scholarships are awarded to high school students who
Replaces the current program with five new grant programs to improve
demonstrate academic achievement and show promise of continued
and promote math, science, and foreign language education.
achievement.
!
The Robert C. Byrd Math and Science Honors Scholarship
Program awards funds to eligible full-time college students
pursuing a major in studies leading to a baccalaureate,
masters, or doctoral degree in physical, life, or computer
sciences, mathematics, or engineering.
!
The Mathematics and Science Incentive Program provides
eligible math and science teachers relief from interest
payments on student loans in return for working in high-need
schools.
!
Mathematics and Science Education Coordinating Council
Grants awards funds to states to assist in coordinating math
and science related activities supported by the ESEA Title II,
Part B, Mathematics and Science Partnerships Program and
the HEA Title II, Teacher Quality Enhancement Program.
!
The Adjunct Teacher Corps awards grants to LEAs or other
educational organizations (private or public) to recruit
adjunct math, science and foreign language teachers.
!
The Foreign Language Partnership Program awards grants to
IHEs in partnership with one or more LEAs to recruit foreign
language teachers and provide them with professional
development in critical languages.
H.R. 609, Title IV: Part A, Grants to Students — Child Care Access Means Parents in Schools
The Secretary is authorized to provide grants to assist IHEs in providing
Program authorization is extended through FY2012.
campus-based child care services to low-income students.

CRS-14
Current law
H.R. 609 (passed by the House)
H.R. 609, Title IV: Part A, Grants to Students — Learning Anytime Anywhere Partnership
The Secretary is authorized to make grants to partnerships to enhance
This program is repealed.
the delivery and quality of career-oriented lifelong learning through
technology.
H.R. 609, Title IV: Parts B & D — Federal Family Education Loan Program & William D. Ford Direct Loan Program
The Secretary is authorized to, subject to appropriations, carry out a
Replaces the demonstration program, authorizing new loan forgiveness
demonstration program of repaying Federal Family Education Loan
of up to $5,000, for FFEL and DL borrowers, subject to appropriations,
(FFEL) program and William D. Ford Direct Loan (DL) program loans
for service in areas of national need. Individuals meeting all
for child care providers working in low income communities.
requirements and working in one of the following occupations would be
eligible: early childhood educators, nurses, specified foreign language
specialists, librarians, highly-qualified teachers (bilingual or serving low
income communities), first responders, child welfare workers, speech-
language pathologists, public service employees, doctors in high-need
medical specialties, and child or adolescent mental health professionals.
In addition, the Secretary would be granted the authority to designate
additional groups for this loan forgiveness.
No similar provision.
Authorizes new mandatory loan forgiveness for FFEL and DL loans on
which amounts were owed on September 11, 2001; would be
implemented for eligible public servants, victims, and survivors of
victims of the September 11, 2001 attacks.
No similar provision.
Specifies that FFEL and DL consolidation loans, to the extent used to
pay off outstanding principal balance on loans made under Title IV, will
be counted against applicable aggregate loan limits for subsidized and
unsubsidized Stafford loans and Perkins loans.
Under a statutory restriction often referred to as the “single holder rule,”
Eliminates the single holder rule effective July 1, 2006.
borrowers whose loans are held by one FFEL holder must first attempt
to consolidate their loans with that holder. Only under limited
circumstances may they pursue a consolidation loan with another
lender.
No similar provision.
Requires the provision of specified disclosure information by FFEL
lenders to educate consolidation borrowers about the costs of a
consolidation loan and its effect on benefits.

CRS-15
Current law
H.R. 609 (passed by the House)
FFEL program Guaranty agencies are required to enter into reporting
Includes a new requirement that FFEL guaranty agencies provide each
agreements with credit agencies, but not with all of the major credit
of the major credit agencies with borrower information.
agencies.
If a FFEL or DL student borrower becomes permanently and totally
Specifies that for the purposes of making determinations of permanent
disabled (as determined in accordance with regulations of the
and total disability, borrowers who have been certified as permanently
Secretary), the Secretary shall discharge the borrower’s debt and repay
and totally disabled by the Department of Veterans Affairs or the Social
the loan on the borrower’s behalf.
Security Administration will not be required to present further
documentation for the purposes of Title IV.
A DL program borrower’s income contingent repayment is based on the
Specifies that for all married borrowers, borrower’s income contingent
adjusted gross income of the borrower or, if the borrower is married and
repayment is based on the adjusted gross income of the borrower and
files a joint income tax return with their spouse, on the adjusted gross
their spouse.
income of the borrower and their spouse.
H.R. 609, Title IV: Part C — Federal Work-Study Programs
For employment in on-campus child care to be considered community
Strikes the requirement that on-campus child care must be “open and
service, the child care services must be “open and accessible to the
accessible to the community” for it to be considered community service
community.”
employment.
The Secretary may allocate up to 10% of Federal Work-Study (FWS)
Beginning with FY2008, the Secretary may allocate up to 10% of the
funding that exceeds $700 million to IHEs at which 50% or more of Pell
amount appropriated for FWS that exceeds $700 million to IHEs at
Grant recipients either graduate or transfer to four-year institutions.
which at least 10% of students receive Pell Grants; and which have
graduation rates for Pell Grant recipients which exceed the median rate
for the particular class of institution.
The allowance for books and supplies used in calculating “fair share”
Increases the allowance for books and supplies to $600.
allocations is $450.
IHEs may use not more than 10% or $50,000 of their FWS allotments
IHEs may use not more than 15% or $75,000 of their FWS allotments for
for job location and development programs.
job location and development programs, except that not less than one-
third of such amount shall be allocated for the location and development
of community service jobs.
Work-Colleges Program requires all resident students who reside on
Requires all resident students, including at least one-half of all students
campus to participate in a comprehensive work-learning program.
who are enrolled on a full-time basis, to participate in a comprehensive
work-learning-service program for at least 5 hours each week, or at least
80 hours during each period of enrollment.

CRS-16
Current law
H.R. 609 (passed by the House)
No comparable provision.
An institution with a plan approved by the Secretary may transfer a
portion of its FWS allocation under a program to award work assistance
to students with mental retardation who are enrolled and maintaining
satisfactory progress in a comprehensive postsecondary program for
students with mental retardation at that institution.
H.R. 609, Title IV: Part E — Federal Perkins Loan Program
Authorization of appropriations: $250 million for FY1999 and such
Authorization of appropriations: $250 million for FY2007 and such
sums as may be necessary for each of the four succeeding fiscal years;
sums as may be necessary for each of the five succeeding fiscal years;
plus such sums as may be necessary for FY2003 and each of the five
plus such sums as may be necessary for FY2013 and each of the five
succeeding years to enable students who received loans for academic
succeeding years to enable students who received loans for academic
years ending prior to October 1, 2003 to continue or complete courses
years ending prior to October 1, 2013 to continue or complete courses of
of study.
study.
Federal Perkins Loan federal capital contributions (FCCs) funds are
Beginning in FY2008, allocations for base guarantees are reduced by 20
allocated to IHEs in two stages; and only IHEs with a default penalty of
percentage points every two years, until being completely phased out by
“1” may receive funds. First, IHEs receive a “base guarantee”
FY2016. Funding according to “fair share” procedures would be
allotment; next, remaining funds are allotted to IHEs on the basis of
concomitantly increased. Only IHEs with a default penalty of “1” may
their proportionate amount — or “fair share” — of aggregate student
receive funds.
financial need.
The allowance for books and supplies used in calculating “fair share”
Increases the allowance for books and supplies to $600.
allocations is $450.
Annual Perkins Loan limits are $4,000 for undergraduate students, and
Increases annual Perkins Loan limits to $5,500 for undergraduate
$6,000 for graduate and professional students.
students and $8,000 for graduate and professional students.
Aggregate Perkins Loan limits are $20,000 for undergraduate students
Increases aggregate Perkins Loan limits to $27,500 for undergraduate
with two or more years of study; $40,000 for graduate and professional
students with two or more years of study; $60,000 for graduate and
students; and $8,000 for other students.
professional students; and $11,000 for other students.
Perkins Loan forbearance must be requested in writing.
Strikes requirement to request forbearance in writing.
No compromise repayment of a defaulted loan may be made unless the
No compromise repayment may be made unless agreed to by the
borrower pays in a lump sum payment: 90% of the loan, interest due,
Secretary.
and collection fees.
Perkins Loans may be rehabilitated after making 12 on-time payments.
Perkins Loans may be rehabilitated after making nine on-time payments.

CRS-17
Current law
H.R. 609 (passed by the House)
Perkins Loan borrowers may have up to 50% of their loan cancelled for
Perkins Loan cancellation for service in the armed forces in an area of
service in the armed forces in an area of hostilities at the rate of 12½%
hostilities made similar to cancellation for most other types of service:
per each of four years of service.
up to 100% cancelled at the rate of 15% for each of 1st and 2nd years, 20%
for each of 3rd and 4th years, and 30% for 5th year of service.
IHEs must begin returning Perkins Loan FCCs to the Secretary when
Extends period at which IHEs must begin distribution of assets to
authorization for the program expires.
between September 30, 2012, and March 31, 2013.
H.R. 609, Title IV: Part F — Need Analysis
No similar provision.
Applicants can complete Free Application for Federal Student Aid
(FAFSA) four years prior to enrolling in postsecondary education to
obtain a non-binding expected family contribution (EFC).
No similar provision.
Two years after early estimates have been implemented, the Secretary
shall evaluate the difference between the initial non-binding estimates
and the final financial aid award. The Secretary shall report the findings
to the authorizing committees.
No similar provision.
The Secretary shall develop a simplified paper application known as
“EZ-FAFSA” for individuals eligible for auto-zero EFC. The form shall
only contain elements necessary to determine if applicant is eligible for
auto-zero. The Secretary shall include state-specific data on the EZ-
FAFSA, if the state allows residents to use EZ-FAFSA to apply for state
aid.
No similar provision.
The Secretary shall develop a simplified electronic form for auto-zero
applicants. The Secretary shall include state-specific data on the
simplified electronic version if the state allows residents to use
simplified version to apply for state aid.
No similar provision.
The Secretary shall encourage applicants to utilize electronic FAFSA.
The Secretary shall also develop a form that contains “skip logic” to
simplify application process.
No similar provision.
The Secretary shall maintain a version of the long, paper FAFSA on the
Internet in a printable format.

CRS-18
Current law
H.R. 609 (passed by the House)
No similar provision.
The Secretary shall encourage states to utilize the simplified forms to
award state aid. States that do not permit the use of the forms must
inform the Secretary of the reason(s) for not allowing it. If a state fails
to inform the Secretary, the Secretary can allow applicants from that state
to complete the simplified application and not answer the state-specific
questions.
No similar provision.
The Secretary shall determine, in cooperation with the states, IHEs and
organizations involved in student financial assistance, the data elements
that can be updated from previous year’s application.
No similar provision.
Auto-zero eligible applicants shall not be required to provide any
financial data in a re-application form, except those elements that are
necessary to determine eligibility.
No similar provision.
Any entity who provides any value-added service such as completion or
submission of the FAFSA shall provide a clear and conspicuous notice
that the FAFSA is free; can be completed without professional
assistance; and provide a link to the Department of Education’s website.
No similar provision.
The Secretary shall utilize the savings realized from moving more
students to utilizing the electronic application to improve access to
technology for students who qualify for auto-zero EFC.
No similar provision.
The Secretary is to commission a non-partisan, comprehensive study on
the prevention of fraud, waste, and abuse in Title IV student aid
programs. A report shall be submitted to the Congress no later than
December 31, 2007.
No similar provision.
The Secretary is to commission a non-partisan, comprehensive study on
the extent to which the student application process complies with the
Paperwork Reduction Act of 1995. A report shall be submitted to the
Congress within one year following the enactment of the College Access
and Opportunity Act of 2006.

CRS-19
Current law
H.R. 609 (passed by the House)
No similar provision.
Expands the definition of an independent student to include an individual
who is an orphan, in foster care, or ward of the court, or was in foster
care or a ward of the court until age 18. Also includes an individual who
has been verified as both a homeless child or youth and an
unaccompanied youth (defined by McKinney-Vento Homeless
Assistance Act).
The financial aid administrator has discretion to adjust, on a case by
Expands list of special circumstances for use of professional judgment
case basis, the cost of attendance or the values of the items used to
by a financial aid administrator to include a student’s status as a ward of
calculate the EFC to allow for treatment of an individual eligible
the court at any time prior to turning 18 years of age, adoption after age
applicant with special circumstances (e.g., recent unemployment of a
13, or a student’s status as a homeless or unaccompanied youth (as
family member, unusually high child care costs).
defined by McKinney-Vento Homeless Assistance Act).
Students from the Freely Associated States are eligible for a Pell Grant,
Only students from the Republic of Palau would remain eligible. Also,
FSEOG and Federal Work-Study until September 1, 2004.
would limit their eligibility to only Pell Grants. Extends authority until
September 1, 2007.
H.R. 609, Title IV: Part G — General Provisions Relating to Student Financial Assistance
No similar provision.
The Secretary shall make special efforts in conjunction with states’
efforts to notify students who qualify for free and reduced price lunch,
food stamps, or other programs determined by the Secretary of their
potential eligibility for Pell Grants.
IHEs must disseminate specific institutional and financial assistance
Requires the information to be publicly available to enrolled and
information upon request to enrolled and prospective students.
prospective students rather than being “available upon request.”
No similar provision.
Requires IHEs to make publicly available to enrolled and prospective
students information on the institution’s educational mission and goals.
IHEs must report completion and graduation rates for certificate- or
Requires IHEs to make publicly available to enrolled and prospective
degree-seeking, full-time, undergraduate students.
students information on student outcomes for full-time undergraduate
students including, but not limited to, completion and graduation rates
for certificate- or degree-seeking, full-time, undergraduate students.
No similar provision.
Requires IHEs to make publicly available to enrolled and prospective
students information about the process by which students can register
complaints with organizations that accredit, approve, or license the
institution and its programs.

CRS-20
Current law
H.R. 609 (passed by the House)
No similar provision.
Requires IHEs to make publicly available to enrolled and prospective
students information about the penalties regarding suspension of
eligibility for drug related offenses.
No similar provision.
Requires each IHE to publicly disclose its transfer of credit policy. The
policy must specify that transfer of credit cannot be denied solely on the
basis of the accreditation held by the institution at which the credits were
earned if the institution’s accrediting agency was recognized by the
Secretary.
(Note: In a subsequent section of Title IV, IHEs are permitted to deny
the transfer of credit solely on the basis of the accreditation held by the
sending institution if the institution’s transfer of credit policy specifically
states that the institution does this.)
No similar provision.
Requires each eligible institution to provide a borrower of a loan under
Part B, D, or E of Title IV with a note clearly describing the effects of
loan consolidation.
IHEs are required to disclose their campus security policy and campus
Excludes foreign institutions of higher education from these
crime statistics.
requirements.
No similar provision.
Requires IHEs to prepare and distribute annual fire safety reports.
Proprietary institutions that meet the definition of an IHE, with the
Applies the requirements for participant eligibility for the DEDP to all
exception of meeting the 50% rules in Section 102, and that provide a
IHEs rather than proprietary institutions only.
two-year or four-year program of study leading to an associate’s or
bachelor’s degree, respectively, are eligible to participate in the
Distance Education Demonstration Program (DEDP). (Note: Other
IHEs are not subject to this requirement.)
In the third year of the DEDP, the Secretary may select up to 35
Permits the Secretary in subsequent years to select not more than 100
additional institutions, systems, or consortia to participate if the
additional institutions, systems, or consortia to participate in the DEDP.
Secretary determines such expansion is warranted based on program
evaluations.
No similar provision.
Up to five of the institutions, systems, or consortia participating in the
DEDP may be accredited, degree-granting correspondence schools.

CRS-21
Current law
H.R. 609 (passed by the House)
No similar provision.
Creates a college affordability demonstration program: (1) to increase
innovation in the delivery of higher education and student financial aid
that will result in cost savings for students and the institution; (2) to help
determine the most effective way to deliver student financial aid and a
quality postsecondary education; and (3) to determine the most effective
ways to obtain and manage institutional resources.
The institution will not knowingly employ an individual who will be
Expands criteria to include federal, state, and local funds rather than only
involved with the administration of Title IV programs or the receipt of
Title IV funds.
Title IV funds who has been convicted of, or has pled nolo contendere
or guilty, to a crime involving the acquisition, use, or expenditure of
Title IV funds or been judicially determined to have committed fraud
involving Title IV funds. The institution will not knowingly contract
with a third-party server who has been terminated under Title IV for an
action involving the acquisition, use, or expenditure of Title IV funds
or been judicially determined to have committed fraud involving Title
IV funds.
No similar provision.
Permits an IHE to be considered in compliance with voter registration
requirements if it sends out an electronic message focused on voter
registration that contains a voter registration form or an Internet address
where a form can be obtained.
The 90/10 rule only applies to proprietary institutions, and is a Title IV
Incorporates the 90/10 rule into the Program Participation Agreement
eligibility requirement for these institutions contained in Section 102.
(PPA) and applies it to all IHEs.
(See discussion of the 90/10 rule under Title I for additional
information.)
No similar provision.
IHEs must use the cash basis of accounting when determining
compliance with the 90/10 rule.

CRS-22
Current law
H.R. 609 (passed by the House)
No similar provision.
Defines what may be considered non-Title IV revenue for the purposes
of meeting the 90/10 rule:
! Non-Title IV funds used by students to pay tuition,
fees, and other institutional charges, provided the IHE
can demonstrate that the funds were used for these
purposes.
! Funds used by the institution to meet Title IV program
matching-fund requirements.
! Funds from education savings plans authorized by the
Internal Revenue Code of 1986.
! Funds paid by the student or entity other than the IHE
for a non-Title IV eligible education and training
program that is approved or licensed by the state or an
accrediting agency recognized by the Secretary.
! Institutional loan repayments received during the fiscal
year.
! Academic achievement or need-based institutional
scholarships in the form of monetary aid or tuition
discounts disbursed during the fiscal year from an
established restricted account whose funds represent
designated funds from an outside source or from
income earned on these funds.
No similar provision.
An IHE that violates the 90/10 rule for three consecutive years will lose
its Title IV eligibility.
No similar provision.
IHEs failing to meet the 90/10 rule in any year may be placed on
provisional certification and/or be subject to increased monitoring and
reporting requirements.
No similar provision.
Requires the Secretary to publicly identify on COOL any IHE that fails
to meet the 90/10 rule in any year.

CRS-23
Current law
H.R. 609 (passed by the House)
No similar provision.
Requires an IHE to disclose to the alleged victim of any crime of
violence or non-forcible sex offense the final results of any institutional
disciplinary proceedings conducted by the institution against a student
who is the alleged perpetrator of the crime.
H.R. 609, Title IV: Part H — Program Integrity
No similar provision.
Requires that a state agency that is approved by the Secretary as an
accrediting agency does not directly or indirectly require institutions to
obtain accreditation from the state agency and does not provide any
exemptions, privileges, or benefits to IHEs as a result of their choice to
obtain accreditation from the state agency.
Accrediting agencies are required to consistently apply and enforce
Requires accrediting agencies to consider the stated mission of the
standards to ensure courses and programs are of sufficient quality to
institution, including religious missions, when applying and enforcing
achieve their stated objectives.
standards.
No similar provision.
Requires an accrediting agency that already has or seeks to include the
evaluation of distance education programs within its scope of recognition
to demonstrate to the Secretary that its standards effectively address the
quality of distance education programs in the same areas in which it
evaluates classroom-based programs.
No similar provision.
Requires accrediting agencies to require that IHEs offering distance
education programs establish that a student registered for a distance
education course is the same student that participates in, completes, and
receives credit for the course.
Accrediting agencies are required to assess various aspects of IHEs,
Specifies additional outcome measures by which accrediting agencies
such as student achievement, curricula, faculty, facilities, and fiscal and
must evaluate institutions, including student academic achievement,
administrative capability.
retention, program completion, and other student performance
information provided by the institution, especially information used for
internal program evaluation by the institution.
No similar provision.
Requires accrediting agencies to assess the institution’s governing board
within the context of the institution’s mission if the institution uses
accreditation for Title IV purposes.

CRS-24
Current law
H.R. 609 (passed by the House)
An institution may oppose actions taken by its accrediting agency that
Modifies due process requirements for an institution opposing an adverse
adversely affect the institution. More specifically, accrediting agencies
action taken by its accrediting agency. Accrediting agencies will be
are required to apply procedures throughout the accrediting process that
required to comply with due process including:
comply with due process including:
! adequate specification of requirements and
! adequate specification of requirements and deficiencies
deficiencies at the IHE or program being evaluated;
at the IHE or program being evaluated;
! notice of an opportunity for a hearing by any such
! opportunity for a written response by any such IHE
IHE;
that will be included in the evaluation and withdrawal
proceedings;
! right to appeal an adverse action against any such
IHE; and
! upon written request by the IHE, an opportunity for the
IHE to appeal any adverse action at a hearing prior to
! right to representation by counsel for any such IHE.
the action becoming final before an appeals panel that
does not include members of the accrediting agency
decision-making body that made the adverse decision
and that is subject to a conflict of interest policy; and
! right to representation by counsel for any such IHE.
An accrediting agency must make a summary of any review that results
Requires the summary of agency actions and the comments of the
in final denial, termination, or suspension of accreditation and the
affected institutions to be made publicly available rather than available
comments of the affected institution available to the public, upon
by request.
request, and to the Secretary and state licensing or authorizing agency.
Expands the categories of actions that must be summarized to include
final withdrawal of accreditation and any other final adverse action.
No similar provision.
Requires onsite reviews conducted by accrediting agencies to evaluate
the substance of the student outcome data reported by the institution.

CRS-25
Current law
H.R. 609 (passed by the House)
No similar provision.
Requires accrediting agencies to confirm that an institution has publicly
disclosed its transfer of credit policy and that the policy specifically
states whether the institution denies the transfer of credit solely on the
basis of the accreditation of the institution at which the credit was
earned.
(Note: This provision seems to allow IHEs to deny the transfer of credit
solely on the basis of the accreditation of the institution at which the
credit was earned. A previously discussed Title IV provision would not
permit IHEs to do this.)
No similar provision.
Requires accrediting agencies to monitor enrollment in distance
education programs to ensure IHEs experiencing substantial enrollment
growth have adequate capacity to serve students effectively.
No similar provision.
Requires accrediting agencies to publicly disclose a list of individuals
who have served on evaluation teams and their title and affiliation. The
list does not need to specify which institutions each individual evaluated.
Also requires accrediting agencies to publicly disclose their processes for
selecting, preparing, and evaluating evaluation team members, as well as
any information related to the responsibilities of evaluation team
members.
No similar provision.
Requires accrediting agencies to review the record of complaints made
by students to the organizations that accredit, approve, or license the
institution and its programs.
No similar provision.
Requires the Secretary to submit an annual report to Congress on the
status of any accrediting agency which has had its recognition limited,
suspended, or terminated by the Secretary.

CRS-26
Current law
H.R. 609 (passed by the House)
The Secretary must conduct program reviews.
Adds that the Secretary must provide an IHE with an opportunity to
review and respond to any program reviews or audit findings before a
final program review or audit determination is reached. This response
must be taken into consideration in any final program review or audit
determination and a copy of the response must be included in the final
program review or audit determination. The final determination must
also include a written statement addressing the IHE’s response and state
the basis for the final determination. The confidentiality of the program
review report or audit finding must be maintained until a final program
review or audit determination is issued. Requires the Secretary to
promptly disclose review reports and audit findings to the institution
under consideration. Requires that the authority to approve or issue any
program review report or audit finding that contains a finding,
determination, or proposed assessment that exceeds (or may exceed)
$500,000 in liabilities may not be delegated to an official beyond the
Chief Operating Officer for Federal Student Aid.
No similar provision.
Requires the Secretary to commission a study on the prevention of fraud
and abuse in federal student aid programs.
H.R. 609, Title V: Developing Institutions — Hispanic-Serving Institutions
Hispanic-serving institutions (HSIs) must provide assurances that not
The 50% low-income Hispanic student requirement would be removed
less than 50% of the institution’s Hispanic students are low-income
from the eligibility requirements for HSIs.
individuals.
No similar provision.
Would establish the Promoting Postbaccalaureate Opportunities for
Hispanic Students program. The program would provide competitive
grants for HSIs offering postbaccalaureate degrees and certificates. The
program would be similar in nature to the existing program for HBCUs.

CRS-27
Current law
H.R. 609 (passed by the House)
H.R. 609, Title VI: Title VI Amendments — International Education Programs
The International Education Programs support undergraduate and
Adds three new allowable activities to the Language and Area Centers:
graduate foreign language and area studies (FLAS) primarily through
Language and Area Centers and FLAS fellowships for graduate
1.
faculty support for “less commonly taught languages,”
students.
2.
dissemination of instructional materials to other IHEs as well
as elementary and secondary schools, and
3.
student support for understanding science and technology in
coordination with foreign language proficiency.
The Secretary may award additional grants to Language and Area
Modifies outreach provisions to include “partnerships” as well as
Centers for the purposes of “programs of linkage or outreach to 2- and
programs of linkage and outreach and adds “colleges of education and
four-year colleges and universities.”
teacher professional development programs” as well as “local
educational agencies and public and private elementary and secondary
education schools.”
No provision.
Adds study abroad to the list of allowable activities under the
Undergraduate International Studies and Foreign Language Programs
and limits funding for this purpose to not more than 10% of a grantee’s
award.
No provision.
Establishes an International Higher Education Advisory Board charged
with providing “advice, counsel, and recommendations to the Secretary”
that would result in, among other things, the “development of such
programs ... that will reflect diverse perspectives and the full range of
views on world regions, foreign language, and international affairs.”
H.R. 609, Title VII: Part A — Graduate Assistance in Areas of National Need
No similar provision.
The Secretary shall establish a grant program to prepare individuals who
will themselves prepare highly-qualified elementary and secondary math,
science, special education and limited English proficient teachers. The
grants shall support fellowships for post-baccalaureate study related to
teacher preparation and pedagogy in the aforementioned disciplines, and
dissertation research in these areas.

CRS-28
Current law
H.R. 609 (passed by the House)
H.R. 609, Title VII: Part A — Thurgood Marshall Legal Educational Opportunity Program
Grant funds are authorized to be used to prepare students for study at
The grantee is authorized to utilize funds to award fellowships to eligible
accredited law schools; to assist with the selection of a law school and
law school students who participated in an authorized summer institute
to provide support for students who are in their first year of law school.
and are enrolled in an accredited law school.
H.R. 609, Title VII: Part A — Graduate and Postsecondary Improvement Programs
The Secretary is authorized to award Jacob K. Javits Fellowship
Changes include (1) providing that under exceptional circumstances,
Program fellowships for graduate study in the arts, humanities, and
such as active duty military service, the fellowship recipient can interrupt
social sciences.
periods of study; (2) providing that the Fellowship Board includes
members from diverse geographic regions and at least one member from
an institution eligible for a grant under HEA Title III or V; and (3)
clarifying that the stipend shall be equal to the level of support provided
by the National Science Foundation (NSF) Graduate Research
Fellowship Program.
Authorizes the Fund for the Improvement of Postsecondary Education
Adds authorized uses of funds, including (1) support and assist programs
(FIPSE) with which the Secretary is authorized to make grants and enter
implementing integrated education reform in order to improve
into awards for contracts.
graduation, attendance, and completion rates for disadvantaged students;
(2) assess the performance of teacher preparation programs within
institutions of higher education in a state; (3) support efforts to establish
pilot programs and initiatives to help college campuses reduce illegal
downloading of copyrighted content; (4) support increased fire safety in
student housing; and (5) establish and operate pregnant and parenting
student services. Also adds a prohibition against the use of funds to aid
students who do not meet the citizenship requirements of HEA section
484(a)(5).
H.R. 609, Title VII: Part A — Urban Community Service
Program provides funds to IHEs in urban areas to enable them to work
Program is repealed.
with organizations to devise and implement solutions to the problems
in their communities.

CRS-29
Current law
H.R. 609 (passed by the House)
H.R. 609, Title VII: Part A — Demonstration Projects to Ensure Students with Disabilities Receive a Quality Higher Education
Program provides funds to support demonstration projects that provide
Expands the list of authorized activities to include, for example: the
technical assistance and professional development for faculty and
development of innovative teaching methods and strategies to ensure the
administrators in IHEs to provide individuals with disabilities a quality
smooth transition of students with disabilities from high school to
postsecondary education.
postsecondary education; and strategies to make distance education
programs or classes more available to students with disabilities.
H.R. 609, Title IX: Part A — Education of the Deaf Act of 1986
No
similar
provision.
Specifies that elementary and secondary programs
operated
in
conjunction with this act by Gallaudet University shall be operated
through the Laurent Clerc National Deaf Education Center.
No similar provision.
Requires that elementary and secondary programs operated at the
Laurent Clerc National Deaf Education Center shall, not later than the
beginning of the 2007-2008 school year, adopt and implement academic
content and achievement standards and academic assessments as
described in Paragraphs (1) and (3) of Section 1111(B) of the Elementary
and Secondary Education Act of 1965; develop adequate yearly progress
standards for such Center as described in Section 1111(b)(2)(C) of such
act; and publicly report results of such assessments.
The Secretary is authorized to enter into or continue an agreement with
Specifies that the Rochester Institute of Technology is operating the
an IHE for the operation of the National Technical Institute for the
National Technical Institute for the Deaf.
Deaf.
International students from developing countries are eligible for tuition
Allows international students to be eligible for tuition reduction if their
reduction at Gallaudet University and the National Technical Institute
country has a per capita income of $5,125 in 2002 U.S. dollars, adjusted
for the Deaf, if their country has a per capita income of not more than
to reflect inflation since 2002.
$4,000 in 1990 U.S. dollars.
No similar provision.
Renames the act, the Education of the Deaf Act of 1986 shall now be
referred to as the Gallaudet University and National Technical Institute
for the Deaf Act.

CRS-30
Current law
H.R. 609 (passed by the House)
H.R. 609, Title IX: Part B — Additional Education Laws
No similar provision.
Directs the Comptroller General to conduct a study of the FSEOG, FWS,
and Federal Perkins Loan programs to examine the procedures for
allocating funds to institutions and the awarding of aid to students.
No provision.
The Secretary shall commission or conduct several studies. Specifically,
the Secretary shall conduct the following: a study of the best practices
of states in assessing undergraduate postsecondary student learning,
particularly with respect to public accountability systems; a national
study on the decreasing number of under represented minority males,
particularly African American males, entering and graduating from
college; a study to evaluate the higher education-related indebtedness of
medical school graduates; a study of older adult learners attending
college and how institutions of higher education are addressing the needs
specific to this group; an evaluation of the quality of distance education
programs, compared to traditional campus-based programs; and a study
to evaluate the decline and causes in the number of individuals who have
been accepted into or currently participate in a graduate medical
education program and/or fellowship to provide health care services that
require more than five years of graduate medical training and has fewer
U.S. medical school applicants than the total number of training and
fellowship positions. The reports from each study shall be submitted to
the Senate Health, Education, Labor and Pensions and House Education
and the Workforce Committees.
H.R. 609, Title IX: Part B — Amendments to the 1998 HEA Amendments
The Secretary of Education is required to conduct a study of the policies
Extends the reporting deadline to September 30, 2007. Adds a
and practices of accrediting agencies related to the treatment of the
requirement that the final report include recommendations regarding the
transfer of credits between IHEs. A final report was required to be
recognition of transfer of credit policies at IHEs.
submitted within one year of enactment of the 1998 HEA amendments.

CRS-31
Current law
H.R. 609 (passed by the House)
The Secretary of Education is required to conduct a study of the
Modifies the current study to require the Secretary of Education to study
effectiveness of cohort default rates as an indicator of administrative
the effectiveness of cohort default rates as an indicator of administrative
capability and program quality at IHEs at which less than 15% of
capability and program quality for IHEs, as opposed to only those IHEs
students participate in Title IV student loan programs. A final report
at which less than 15% of students participate in Title IV student loan
was due September 30, 1999.
programs. Requires the study to specifically examine the effect of cohort
default rates at IHEs at which less than 15% of students participate in
Title IV student loan programs. Extends the reporting deadline to
September 30, 2007.
H.R. 609, Title IX: Part B — Tribally Controlled College or University Assistance Act of 1978
Program provides grants to tribally controlled colleges or universities
Extends the authorization for this program to 2007 and the five
to aid in the postsecondary education of Indian students.
succeeding years.
H.R. 609, Title IX: Part B — Navajo Community College Act
Program provides grants to assist the Navajo Tribe of Indians in
Extends the authorization for this program to 2007 and the five
providing education to the members of the tribe and other qualified
succeeding years.
applicants through a community college.