Higher Education Act Reauthorization: A Comparison of Current Law and S. 1642

Higher Education Act Reauthorization: A Comparison of Current Law and S. 1642

Order Code RL34095
Higher Education Act Reauthorization:
A Comparison of Current Law and S. 1642
July 23, 2007
Charmaine Mercer and
Blake Alan Naughton, Coordinators
Analysts in Social Legislation
Domestic Social Policy Division
Rebecca R. Skinner, David P. Smole,
Jeffrey J. Kuenzi, and Richard N. Apling
Specialists in Social Legislation
Domestic Social Policy Division

Higher Education Act Reauthorization:
A Comparison of Current Law and S. 1642
Summary
The Higher Education Act of 1965 (HEA) as amended, authorizes the federal
government’s major federal student aid programs (Title IV), as well as other
programs which provide institutional aid and support (Titles II, III and V). In
addition, the HEA authorizes services and support to less-advantaged students (select
Title IV programs), and to students pursuing international education and certain
graduate and professional degrees (Titles VI and VII). The programs authorized by
the HEA are administered by the U.S. Department of Education (ED), and made
available an estimated 70% ($94 billion) of all federal, state and institutional aid
awarded to postsecondary students in 2005-2006 (excluding tax benefits).
The 108th and 109th Congresses each considered but did not complete the HEA
reauthorization process. For the 110th Congress, the Higher Education Amendments
of 2007 (S. 1642) was introduced by Senator Kennedy on June 18, 2007, and
approved by the Senate Health, Education, Labor, and Pensions Committee (HELP)
on July 10th. Additionally, much like what occurred during the 109th Congress, this
year the reauthorization of the HEA has become heavily intertwined with the budget
reconciliation process, as both the Senate HELP Committee and the House Education
and Labor Committee have reported budget reconciliation bills that would make
numerous changes to programs and provisions contained in the HEA.
This report provides a side-by-side comparison of the HEA reauthorization
proposal in the HELP Committee-passed version of S. 1642 to current law. The
side-by-side is generally organized to correspond with the organization of S. 1642.
The report begins with a brief overview of the titles and major programs of the HEA,
and includes a short summary of the larger issues and proposed changes in S. 1642
for each title and program.
This report will be updated following major legislative developments.

Contents
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Title I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Title II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Titles III and V . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Title IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Part A: Grants to Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Part B: Federal Family Education Loan Program . . . . . . . . . . . . . 4
Part E: Perkins Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Part F: Need Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Part G: General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Part H: Program Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Title VI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Title VII . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 1. Comparison of Current Law with S. 1642 . . . . . . . . . . . . . . . . . . . . 6
Title I: General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Institutions of Higher Education (IHEs) . . . . . . . . . . . . . . . . . . . . 6
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Protection of Student Speech and Association Rights . . . . . . . . . . 7
National Advisory Committee on Institutional Quality
and Integrity (NACIQI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Drug and Alcohol Abuse Prevention . . . . . . . . . . . . . . . . . . . . . . . 8
College Tuition Information for Consumers . . . . . . . . . . . . . . . . . 9
Student Information Databases . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Performance Based Organization (PBO) . . . . . . . . . . . . . . . . . . . 11
Requirements for Lenders and Institutions Participating
in Educational Loan Arrangements . . . . . . . . . . . . . . . . . . . 11
Title II: Teacher Quality Enhancement . . . . . . . . . . . . . . . . . . . . . . . . 12
Teacher Quality Enhancement Grants for States and
Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Title III: Institutional Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Strengthening Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
American Indian Tribally Controlled Colleges and Universities . 15
Alaska Native and Native Hawaiian-Serving Institutions . . . . . . 16
Native American-Serving, Non-Tribal Institutions . . . . . . . . . . . 16
Historically Black Colleges and Universities (HBCUs) . . . . . . . 16
Historically Black Colleges and Universities, Professional
or Graduate Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Historically Black College and University Capital Financing
Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Title IV: Student Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Federal Pell Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Academic Competitiveness (AC) and Science Mathematics
Access to Retain Talent (SMART) Grants . . . . . . . . . . . . . 18
Federal TRIO Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Gaining Early Awareness and Readiness for Undergraduate
Programs (GEAR UP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Federal Supplemental Educational Opportunity Grants
(FSEOG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Leveraging Educational Assistance Partnership (LEAP)
Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Robert C. Byrd Honors Scholarship Program . . . . . . . . . . . . . . . 24
Child Care Access Means Parents in School . . . . . . . . . . . . . . . . 24
Learning Anytime Anywhere Partnerships . . . . . . . . . . . . . . . . . 24
Federal Family Education Loan (FFEL) Program and
William D. Ford Direct Loan (DL) Program . . . . . . . . . . . . 24
Federal Work-Study (FWS) Programs . . . . . . . . . . . . . . . . . . . . . 27
Federal Perkins Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Need Analysis: Cost of Attendance . . . . . . . . . . . . . . . . . . . . . . 28
Need Analysis: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Definition of an Academic Year . . . . . . . . . . . . . . . . . . . . . . . . . 29
Compliance Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Forms and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Student Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Statute of Limitations and State Court Judgments . . . . . . . . . . . . 33
Institutional Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Institutional and Financial Assistance Information for Students . 33
National Student Loan Data System (NSLDS) . . . . . . . . . . . . . . 35
Early Awareness of Financial Aid Eligibility . . . . . . . . . . . . . . . 36
Program Participation Agreement (PPA) . . . . . . . . . . . . . . . . . . . 36
Regulatory Relief and Improvement: Quality Assurance
Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Transfer of Allotments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Advisory Committee on Student Financial Assistance
(ACSFA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Recognition of Accrediting Agency or Association . . . . . . . . . . 37
Program Review and Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Timely Information About Loans . . . . . . . . . . . . . . . . . . . . . . . . 42
Title V: Developing Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Hispanic Serving Institutions (HSIs) . . . . . . . . . . . . . . . . . . . . . . 43
Title VI: International Education Programs . . . . . . . . . . . . . . . . . . . . 43
International and Foreign Language Studies . . . . . . . . . . . . . . . . 43
Title VII: Graduate and Postsecondary Improvement Programs . . . . 44
Graduate Student and Program Assistance . . . . . . . . . . . . . . . . . 44
Fund for the Improvement of Postsecondary Education
(FIPSE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Urban Community Service Program . . . . . . . . . . . . . . . . . . . . . . 45
Demonstration Projects to Ensure Students with Disabilities
Receive a Quality Higher Education . . . . . . . . . . . . . . . . . . 46
S. 1642, Title VIII: Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Mathematics and Science Scholars Program . . . . . . . . . . . . . . . . 46
Postsecondary Education Assessment . . . . . . . . . . . . . . . . . . . . . 46
Job Skill Training in High-Growth Occupations or Industries . . 47
Additional Capacity for R.N. Students or Graduate-Level
Nursing Students . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
American History for Freedom . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Teach For America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Patsy T. Mink Fellowship Program . . . . . . . . . . . . . . . . . . . . . . . 48
Improving College Enrollment by Secondary Schools . . . . . . . . 48

Predominantly Black Institutions (PBIs) . . . . . . . . . . . . . . . . . . . 48
Early Childhood Education Professional Development
and Career Task Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Improving Science, Technology, Engineering, and
Mathematics (STEM) Education with a Focus on
Alaska Native and Native Hawaiian Students . . . . . . . . . . . 49
Pilot Program to Increase Persistence in Community Colleges . . 49
Student Safety and Campus Emergency Management . . . . . . . . 50
S. 1642, Title IX: Amendments to Other Laws . . . . . . . . . . . . . . . . . 50
Education of the Deaf Act of 1986 (EDA) . . . . . . . . . . . . . . . . . 50
Higher Education Amendments of 1998 . . . . . . . . . . . . . . . . . . . 52
Grants to States for Workplace and Community Transition
Training for Incarcerated Youth Offenders . . . . . . . . . . . . . 53
Tribally Controlled College or University Assistance Act
of 1978 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Navajo Community College Act . . . . . . . . . . . . . . . . . . . . . . . . . 53
Appendix A. Outline of the Higher Education Act: Titles, Parts,
Programs, and Major Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Title I: General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Title II: Teacher Quality Enhancement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Title III: Institutional Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Title IV: Student Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Title V: Developing Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Title VI: International Education Programs . . . . . . . . . . . . . . . . . . . . . . . . 57
Title VII: Graduate and Postsecondary Education Improvement
Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Additional Programs Authorized by Higher Education Amendments . . . . . 57
Higher Education Amendments of 1986 . . . . . . . . . . . . . . . . . . . . . . . 57
Higher Education Amendments of 1992 . . . . . . . . . . . . . . . . . . . . . . . 57
Higher Education Amendments of 1998 . . . . . . . . . . . . . . . . . . . . . . . 57

Higher Education Act Reauthorization:
A Comparison of Current Law and S. 1642
The Higher Education Act of 1965 (HEA) as amended, authorizes the federal
government’s major federal student aid programs (Title IV), as well as other
programs which provide institutional aid and support (Titles II, III and V). In
addition, the HEA authorizes services and support to less-advantaged students (select
Title IV programs), and to students pursuing international education and certain
graduate and professional degrees (Titles VI and VII). The programs authorized by
the HEA are administered by the U.S. Department of Education (ED), and made
available an estimated 70% ($94 billion) of all federal, state and institutional aid
awarded to postsecondary students in 2005-2006 (excluding tax benefits)1.

The HEA was last comprehensively reauthorized by the Higher Education
Amendments of 1998 (P.L. 105-244), which expired September 30, 2003. Since the
initial expiration of the authorization, there have been several temporary extensions2.
Most recently, the HEA was extended by the First Higher Education Extension Act
of 2007 (P.L. 110-44), which authorizes the programs and activities of the HEA
through July 31, 2007.
The 108th and 109th Congresses each considered but did not complete the HEA
reauthorization process. For the 110th Congress, the Higher Education Amendments
of 2007 (S. 1642) was introduced by Senator Kennedy on June 18, 2007, and
approved by the Senate Health, Education, Labor, and Pensions Committee (HELP)
on July 10th. Additionally, much like what occurred during the 109th Congress, this
year the reauthorization of the HEA has become heavily intertwined with the budget
reconciliation process, as both the Senate HELP Committee and the House Education
and Labor Committee have reported budget reconciliation bills that would make
numerous changes to programs and provisions contained in the HEA.3
This report provides a side-by-side comparison of the HEA reauthorization
proposal in the HELP Committee-passed version of S. 1642 to current law. The side-
1 The College Board, Trends in Student Aid 2006.
2 The original termination date for most of the provisions of the HEA was September 30,
2003, which was the original date enacted by the Higher Education Amendments of 1998.
This termination date was extended through FY2004 by the General Education Provisions
Act (GEPA). A series of subsequent measures — P.L. 108-366, P.L. 109-81, P.L. 109-150,
P.L. 109-212. P.L. 109-238, and P.L. 109-292 — have temporarily extended the HEA
program and provision authority.
3 For additional information about the budget reconciliation process see CRS Report
RL34077, Student Loans, Student Aid, and FY2008 Budget Reconciliation, by Adam Stoll,
David P. Smole, and Charmaine Mercer.

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by-side is generally organized to correspond with the organization of S. 1642.4 The
report begins with a brief overview of the titles and major programs of the HEA, and
includes a short summary of the larger issues and proposed changes in S. 1642 for
each title and program.
It is important to note that the side-by-side comparison, which is presented in
Table 1, is intended to provide a summary of the larger issues and changes addressed
in S. 1642 as they compare to current law. Thus, this analysis does not attempt to
capture all of the changes of the proposed bill. Finally, S. 1642 includes provisions
that extend the authorization of appropriations for most HEA programs through
FY2013. In this report, proposed authorization periods will only be noted for those
programs and provisions that have a different authorization period. It should
otherwise be assumed that appropriations would be authorized through FY2013.
Unless otherwise specified, “such sums as may be necessary” would be authorized
for most programs.
Overview
There are seven titles of the HEA that authorize numerous programs and
provisions designed to provide assistance to postsecondary students and institutions.
The seven titles of the HEA are
! Title I — General Provisions
! Title II — Teacher Quality Enhancement
! Title III — Institutional Aid
! Title IV — Student Assistance
! Title V — Developing Institutions
! Title VI — International Education Programs; and
! Title VII — Graduate and Postsecondary Improvement Programs
Title I. Title I primarily provides the general provisions and definitions that
govern most of the programs authorized by the HEA. For example, it includes many
of the institutional reporting requirements, important definitions such as “institution
of higher education” (IHE) and “distance education,” and authorizes a performance
based organization (PBO) to administer federal student aid within ED. The major
changes proposed include:
! Changes to the definitions of an IHE, including eliminating the
requirement that proprietary institutions earn at least 10% of their
revenue from non-Title IV sources (referred to as the 90/10 rule) as
a condition of Title IV eligibility.
! The establishment of new requirements related to making college
tuition information available to the public, including the
development of higher education price indices and net price
calculators.
4 This report will be updated to include a column for the House version of the HEA
reauthorization should a measure gain passage during the 110th Congress.

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Title II. Title II is the source of grants for improving teacher education
programs, strengthening teacher recruitment efforts and training for prospective
teachers. This title also includes the reporting requirements for states and IHEs
regarding quality of teacher education programs. The major changes proposed
include:
! The elimination of the State and Recruitment grants and all Title
II-A funds are directed to the current Partnership grant program.
! The introduction of additional accountability, evaluation, and
reporting requirements regarding traditional teacher preparation
programs and the introduction of new requirements for programs
offering alternative routes to certification.
Titles III and V. Titles III and V are the primary sources of institutional
support authorized by the HEA. Both titles award grants to IHEs to strengthen their
academic, administrative, and financial capabilities. Title III includes provisions for
IHEs that serve large numbers of needy students, tribal colleges and universities,
Alaska Native and Native Hawaiian-serving institutions, and historically black
colleges and universities. Title V authorizes funds for Hispanic-serving institutions.
The major changes proposed include:
! The establishment of a new program, the Native American-serving
non-tribal institution program.
! The establishment of the Promoting Postbaccalaureate Opportunities
for Hispanic Students program.
Title IV. Programs authorized under Title IV are the primary source of federal
aid to support postsecondary education. The largest Title IV student aid programs
are the Pell Grant program and the Federal Family Education Loans (FFEL) and the
William D. Ford Direct Loan (DL) programs. Additionally, there are several other
smaller student aid programs, Federal Supplemental Educational Opportunity Grants
(FSEOG), Federal Work-Study (FWS), and Federal Perkins Loans — collectively
known as the campus-based programs, and the Leveraging Educational Assistance
Partnership (LEAP). Title IV also authorizes programs for student services. The
federal TRIO programs and the Gaining Early Awareness and Readiness for
Undergraduate Programs (GEAR UP) both provide less-advantaged students with
support services to help them complete high school, and enter and persist through
college. The major changes proposed include:
Part A: Grants to Students.
! The elimination of the tuition sensitivity provision from the Pell
Grant program.
! The provision of up to two Pell Grant awards in a single academic
year for students who enroll at least half-time in a four-year or
two-year institution.
! Broadened eligibility for Academic Competitiveness and National
Science and Mathematics Access to Retain Talent (SMART) grants
to include students who are enrolled half-time, pursuing a one-year

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or two-year certificate, or are enrolled in programs that require five
years of study.
Part B: Federal Family Education Loan Program.
! Additional requirements pertaining to the disclosure of additional
information to borrowers regarding the capitalization of interest on
federal student loans and the consequences of consolidating federal
student loans.
! An increase in the FFEL program lender loan origination fee from
50 to 100 basis points for consolidation loans.
Part E: Perkins Loans.
! The expansion of the types of public service occupations for which
Perkins Loans may be canceled.
Part F: Need Analysis.
! An expansion of the definition of room and board to include a room
and board allowance for students who live in housing located on a
military base or who receive a basic allowance for housing.
! The exclusion of the value of military housing or a military housing
allowance received by a student or his/her parent, from consideration
as untaxed income or benefits in the need analysis formula.
Part G: General Provisions.
! The addition of several requirements regarding the information IHEs
must make available to enrolled and prospective students, including
the institution’s transfer of credit policy, campus emergency
response and evacuation policies, fire safety practices and standards,
and information on student body diversity, completion and
graduation rates, employment of graduates, and students’ pursuit of
graduate school.
Part H: Program Integrity.
! The addition of several new accreditation provisions including those
related to the stated mission of the IHE, distance education, public
disclosure of an IHE’s transfer of credit policy, and due process
requirements for an IHE opposing an adverse action taken by an
accrediting agency.
Title VI. Title VI authorizes a variety of grants to IHEs and related entities to
enhance instruction in foreign language and area studies. The international education
program reflects the special priority placed by the federal government on foreign
language and area studies, especially with respect to diplomacy, national security, and
trade competitiveness. The major changes proposed include:

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! Making undergraduate students engaged in intermediate or advanced
study eligible for fellowships currently limited to graduate students.
Title VII. There are three graduate fellowship programs authorized under Title
VII targeted to select graduate and professional degrees.
In addition to these seven titles, prior amendments to the HEA have included
additional titles which established free-standing programs and provisions, or
amended existing authorities outside of the HEA. S. 1642 would add a new title to
the HEA, Title VIII — Miscellaneous (authorizing 13 new programs), and Title IX
— Amendments to Other Laws would amend existing authorities outside of the
HEA. These two titles are preceded by S. 1642 in this report to denote that they are
not a part of the HEA.

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Table 1. Comparison of Current Law with S. 1642
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Title I: General Provisions.
Institutions of Higher Education (IHEs).
Selected provisions from the Section 101 definition of an IHE:
Includes the following changes to this definition:
! Admits as regular students only individuals who
! Expands criteria for students who may be admitted
have a certificate of graduation from a secondary
as regular students to include students dually
school or its recognized equivalent; persons above
enrolled in an IHE and a secondary school.
the age of compulsory attendance may also be
! Expands criteria for institutional eligibility under
admitted as regular students.
Section 101 to IHEs that provide a degree that is
! An IHE must provide a program for which the
acceptable for admission to a graduate or
institution awards a bachelor’s degree or provides
professional degree program if reviewed and
not less than a two-year program of study that is
approved by the Secretary.
acceptable for full credit toward a bachelor’s degree.
Graduate medical schools located outside the United States (U.S.)
Changes the second set of criteria to require that the institution has
may participate in the Federal Family Educational Loan (FFEL)
continuously operated a clinical training program in at least one state
program if: (1) the institution meets specific requirements related to
that is approved by that state.
student enrollment and passing rates on a particular examination; or
(2) the institution has a clinical training program that was approved
by a state as of January 1, 1992.
To participate in Title IV, both proprietary institutions and
Expands criteria of students who may be admitted as regular students
postsecondary vocational institutions must admit as regular students,
to include students dually enrolled in an IHE and a secondary school.
only individuals who have a certificate of graduation from a
secondary school or its recognized equivalent. Persons above the age
of compulsory attendance may also be admitted as regular students.

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Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Definitions.
No similar provision.
Defines “critical foreign language” as each of the languages contained
in the list of critical languages designated by the Secretary of
Education (Secretary) in the August, 2, 1985 Federal Register, except
that with respect to a specific title of the HEA, the Secretary may set
priorities based on the purposes of the title, national security,
economic competitiveness, and the educational needs of the U.S.
No similar provision.
Defines “distance education” as education that uses one or more
specific types of technologies to deliver instruction to students who
are separated from their instructor and to support regular and
substantive interaction between students and their instructor.
No similar provision.
States that the term “poverty line” means poverty line as defined in
the Community Service Block Grant Act.
Protection of Student Speech and Association Rights.
A sense of Congress addresses the protection of student speech and
Expands the current sense of Congress in several ways, including
association rights.
specifying that IHEs should design their academic programs in
accordance with their education goals; colleges should facilitate the
free and open exchange of ideas; students should not be intimidated,
harassed, or discouraged from speaking out; and students should be
treated “equally and fairly.” Modifies existing language to require
that the imposition of any sanctions of students be done “objectively
and fairly.”

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Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
National Advisory Committee on Institutional Quality and Integrity (NACIQI).
The Secretary appoints the 15 members of NACIQI for three-year
Renames NACIQI the Accreditation and Institutional Quality and
terms of office. The committee advises the Secretary in several areas
Integrity Advisory Committee. Retains the 15 committee member
related to accreditation, including providing guidance related to the
structure, but 5 members would be appointed by the Secretary, 5
establishment and enforcement of the standards of accrediting
members appointed by the House of Representatives, and 5 members
agencies for Title IV purposes, advising the Secretary regarding the
appointed by the Senate. Each member serves for six years. Retains
recognition of a specific accrediting agency, developing and
all of the functions of the committee authorized by current law,
recommending standards and criteria for specific categories of
except it eliminates developing standards and criteria for specific
institutions for which no recognized accrediting agency exists,
categories of institutions for which no recognized accrediting agency
making recommendations related to the eligibility and certification
exists.
process, and advising the Secretary regarding the relationship
between accreditation and eligibility and certification, and IHEs and
state licensing.
Drug and Alcohol Abuse Prevention.
No similar provision.
Requires IHEs to determine the number of drug and alcohol-related
incidents and fatalities that occur on the IHE’s property or as part of
the IHE’s activities and are reported to the IHE. It also requires IHEs
to determine the number and type of sanctions imposed in response to
drug and alcohol-related incidents and fatalities that occur on the
IHE’s property or as part of the IHE’s activities.

CRS-9
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
College Tuition Information for Consumers.
No similar provision.
Requires the Commission of the Bureau of Labor Statistics (BLS) to
develop higher education price indices that accurately reflect the
annual change in tuition and fees for undergraduate students enrolled
in specific types of IHEs (e.g., four-year public degree-granting).
Requires the Secretary to annually publish a national list and a list for
each state that ranks IHEs based on their changes in tuition and fees
over the preceding two years. Data must be reported by institutional
sector (i.e., level and control of the institution). Data must also be
reported based on the percentage change in tuition and fees and the
dollar change in tuition and fees. IHEs whose increase in tuition and
fees exceeds that of its applicable higher education price index would
be placed on the “Higher Education Price Increase Watch List.”
No similar provision.
Requires the Secretary to annually report for each state a comparison
of the percentage change in state appropriations per enrolled student
in public IHEs to the percentage change in tuition and fees for each
public IHE for each of the five previous years.
No similar provision.
Requires the Secretary to report on the total amount of need-based aid
and merit-based aid provided by the state to students enrolled in each
public IHE.
No similar provision.
Requires the Secretary to develop net price calculators for each
institutional sector no later than one year after the date of enactment.
Not later than three years after the date of enactment, IHEs receiving
federal funds under the HEA must adopt and use a net price calculator
developed by ED or by the IHE.

CRS-10
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
Requires an IHE receiving funds authorized by the HEA to include in
its application materials the most recent information regarding the net
price of the institution calculated for each income quartile based on
the income of the students’ parents (dependent students) or the
income of the students (independent students) for each of the two
academic years preceding the academic year for which the application
is produced.
No similar provision.
Requires the Secretary to contract with an independent organization
with expertise in the development of consumer-friendly websites to
recommend improvements to the College Opportunities On-Line
(COOL) website. No later than one year after the date of enactment,
the Secretary must implement these recommendations.
No similar provision.
Requires the Secretary to create a model document, the University
and College Accountability Network (U-CAN), that IHEs may use to
annually report basic institutional information. IHEs are not required
to participate in this data collection effort.
No similar provision.
Requires the Government Accountability Office (GAO) to examine
the institutional cost burden associated with completing the Integrated
Postsecondary Education Data System.
Student Information Databases.
No similar provision.
Prohibits the development of a federal database of student
information. This prohibition does not extend to the development of
state databases of student information.

CRS-11
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Performance Based Organization (PBO).
Establishes that the Performance-Based Organization (PBO) shall be
Establishes that the functions of the PBO in ED are now referred to as
a discrete management unit responsible for managing the operational
“administrative and oversight” functions, not “operational.” The PBO
functions supporting the programs authorized under Title IV.
will also be responsible for the administration of federal student
financial assistance programs
No similar provision.
Directs the PBO to utilize procurement systems that streamline
operations, improve internal controls, and enhance management.
Requirements for Lenders and Institutions Participating in Educational Loan Arrangements.
No similar provision.
Requires lenders that provide FFEL or Direct Loans (DL) and that are
also financial institutions as defined in Section 509 of the Gramm-
Leach-Bliley Act to provide several disclosures to students, in
writing, prior to making a loan to a student, such as interest rate and
repayment options. Also requires these lenders to annually report to
the Secretary any reasonable expenses paid or given under specific
sections of the HEA to any employee in the financial aid office of any
Title IV eligible IHE that receives any federal funding or assistance
(referred to as “covered institutions”). The Secretary must
subsequently report this information to the authorizing committees.

CRS-12
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
! Requires the Secretary to report on the adequacy of
the information provided to students and their
families about educational loans.
! Directs the Secretary to develop a model format for
use by lenders and covered institutions to report
information about educational loans.
! Requires lenders to annually provide to the
Secretary and to each covered institution with which
it has a student loan arrangement, the information
included in the model format for each type of loan
provided to students (or their parents) attending a
covered institution.
! Requires covered institutions to submit an annual
report to the Secretary that includes the information
provided to the institution by each lender with which
the covered institution has a student loan
arrangement and a detailed explanation of why the
institution believes the terms and conditions of each
loan are beneficial to students.
! The covered institution must also make this report
publicly available and provide the report to students
and their families in time for the student or parent to
take the information into account in selecting or
applying for a student loan.
Title II: Teacher Quality Enhancement.
Teacher Quality Enhancement Grants for States and Partnerships.
Funds appropriated for Title II, Part A are for state, partnership, and
Eliminates the state and recruitment grants.
recruitment grants.

CRS-13
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Defines a “high-need local educational agency (LEA)” as one that
Amends the definition of a “high-need” LEA as one that (1) enrolls at
serves a school in, “an area in which there is (A) a high percentage of
least 20% or 10,000 children from low-income families; or (2) serves
individuals from families with incomes below the poverty line; (B) a
only schools designated with a locale code of 6, 7, or 8 and has a total
high percentage of secondary school teachers not teaching in the
enrollment of less than 600 children; and (3) has a high percentage of
content area in which the teachers were trained to teach; or (C) a high
out-of-field or out-of-grade-level teachers; or (4) has a high teacher
teacher turnover rate.”
turnover rate or a high percentage of teachers with emergency,
provisional, or temporary certification.
Authorizes the Secretary to award competitive grants to eligible
! Authorizes the Secretary to award competitive
partnerships. Requires funds to be used for implementing reforms of
grants to eligible partnerships. Requires funds to be
teacher preparation programs, providing clinical experience including
used for carrying out a program for the pre-
mentoring of prospective teachers, and providing professional
baccalaureate preparation of teachers, a teaching
development that improves content knowledge for current teachers.
residency program, or both. Proposed program (as
Allows funds to be used for preparing teachers to work with diverse
revised) is very similar to the current partnership
populations, involving parents in program reform, disseminating
program but adds considerably more detailed
information, coordinating reform efforts, developing school
language on accountability and use of funds for
management and leadership, and recruiting new teachers into the
reforms.
profession.
! Expands the required uses of funds for clinical
experience and adds new required uses for
induction, support, and recruitment.
! Adds new language describing a teaching residency
program that gives new teachers and prospective
mid-career professionals a one-year stipend to
receive intensive training toward a Master’s degree
and requires that they teach for a period of at least
three years in a high-need school.
! The program would also give experienced teachers
the opportunity to serve as mentor teachers in
exchange for full relief from their usual teaching
duties.

CRS-14
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Grantees may receive an award under each of the state, partnership,
Partnerships may receive only one grant during a five-year period;
and recruitment programs only once.
however, an eligible partner may be a member of multiple
partnerships.
Requires the Secretary to ensure equitable geographic distribution of
Requires the Secretary to ensure an “equitable geographic distribution
the grants throughout the U.S..
of grants among rural and urban areas.”
Requires grantees to provide matching funds, from non-federal
Requires grantees to provide matching funds, from non-federal
sources, in an amount equal to 25% of the grant for the first year of
sources, in an amount equal to 100% of the amount of the grant and
the grant, 35% for the second year, and 50% for each succeeding
gives the Secretary authority to waive this requirement for any fiscal
year.
year in which it would result in serious hardship or an inability to
carry out the authorized activities.
Requires that all IHEs that conduct traditional teacher preparation
Adds programs that offer alternative routes to state certification and
programs and enroll students receiving federal assistance under the
licensure to the list of programs that must report this information.
HEA report the status of pass rates for teacher preparation students
Requires programs to report “scaled scores” in addition to pass rates
taking assessments within three years of leaving the program,
of those still enrolled in a program or who have completed in the last
program and accreditation information, designation of low-
two years, to disaggregate program information by race and gender,
performing programs, among other things.
and to describe activities employed to prepare teachers to use
technology.
States must annually submit a report card on the quality of teacher
Prohibits the Secretary from creating a national list or ranking states
preparation to the Secretary.
or schools based on these reports.

CRS-15
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Title III: Institutional Aid.
Strengthening Institutions.
Secretary may award grants to any eligible institution with an
Expands eligibility to include any eligible institution with an
application approved under section 351 (Minority Science and
application approved under all other sections of Title III.
Engineering Improvement Program).
No similar provision.
Expands authorized activities to include remedial education, English
language instruction courses, and education or counseling services
designed to improve financial literacy and economic literacy of
students or students’ parents, among other things.
American Indian Tribally Controlled Colleges and Universities.
Tribal College or University (TCU) has the same meaning as tribally
Defines a TCU as: an institution that qualifies for funding under the
controlled college or university in Section 2 of the Tribally Controlled
TCCUAA or the Navajo Community College Assistance Act of 1978
College or University Assistance Act of 1978 (TCCUAA) and
or, is cited in section 532 of the EELGSA.
includes institutions listed in the Equity in Educational Land-Grant
Status Act of 1994 (EELGSA).
No similar provision.
Expands authorized activities to include acquisition of real property
and education or counseling services designed to improve financial
literacy and economic literacy of students or students’ parents, among
other things.
The Secretary shall ensure maximum and equitable distribution of
Establishes a new allocation formula whereby the Secretary can
funds among all eligible institutions.
reserve 30% of the appropriation for one-year construction grants.
Remaining funds should be allocated as follows: 60% based on Indian
student count and 40% equally distributed among eligible TCUs. The
minimum grant would be $500,000.

CRS-16
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Alaska Native and Native Hawaiian-Serving Institutions.
No similar provision.
Expands the authorized activities to include education or counseling
services designed to improve financial literacy and economic literacy
of students or students’ parents, among other things.
Native American-Serving, Non-Tribal Institutions.
No similar provision.
Establishes a new program (Section 318) for Native
American-serving, non-tribal institutions. Native American defined
as: an individual who is of a tribe, people or culture indigenous to the
U.S.. Eligible institutions must have at least 10% Native American
students and cannot be a TCU as defined in Section 316. Minimum
grant would be $200,000.
Historically Black Colleges and Universities (HBCUs).
The phrase “professional and academic areas in which Blacks are
Requires the Secretary to also consult with the Commissioner for
underrepresented” shall be determined by the Secretary and the
Education Statistics.
Commissioner of the BLS, on the basis of the most recent available
satisfactory data, as professional and academic areas in which the
percentage of Black Americans who have been educated, trained, and
employed is less than the percentage of Blacks in the general
population.
No similar provision.
Expands the authorized activities to include education or counseling
services designed to improve financial literacy and economic literacy
of students or students’ parents, among other things.

CRS-17
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Provides formula for allotting funds.
Adds new requirement that to receive the annual allotment, HBCUs
must annually provide data on the following: number of Pell Grant
recipients, number of graduates from the preceding year, and the
number of students who enrolled in a graduate or professional
program within last five years.
Historically Black Colleges and Universities, Professional or Graduate Institutions.
No similar provision.
Expands the authorized activities to include education or counseling
services designed to improve financial literacy and economic literacy
of students or students’ parents, among other things.
There are 18 existing eligible grantees.
Expands the list of eligible graduate and professional
schools/programs (Part B, Section 326) to include Alabama State
University; Coppin State University; Delaware State University;
Prairie View A&M University; Langston University; West Virginia
State University; and Fayetteville State University.
Historically Black College and University Capital Financing Program.
No similar provision.
Requires the Secretary to submit an annual report to the authorizing
committees no later than 90 days after the date of enactment, that
provides ED’s progress in implementing the recommendations made
by the GAO for improving the HBCU Capital Financing Program.

CRS-18
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Title IV: Student Assistance.
Federal Pell Grants.
Existing program authority expired in FY2004. The most recent
The program authority for Pell is extended to 2013. The authorized
authorized maximum Pell Grant (Pell) award is $5,800 for academic
maximum Pell award is as follows: $5,400 for academic year
year 2003-2004.
2008-2009; $5,700 for 2009-2010; $6,000 for 2010-2011; and $6,300
for 2011-2012.
If the maximum appropriated Pell award is greater than $2,700,
Eliminates tuition sensitivity provision.
tuition sensitivity is invoked. As implemented by ED, tuition
sensitivity reduces the Pell for a small number of low-income
students attending IHEs with very low tuition charges.
Minimum authorized Pell award is $400.
Changes the minimum Pell award to 10% of the appropriated
maximum Pell award, unless a recipient qualifies for an award
between 5% and 10% in which case recipient would receive 10%.
No similar provision.
Provides up to two Pell Grant awards in a single academic year for
students who enroll at least half-time in a four-year or two-year
institution.
No similar provision.
Limits Pell receipt to 18 semesters or equivalent determined by
Secretary. Limit is determined without regard for attendance status
(full-time or part-time) and would include time prior to the date of
enactment.
Academic Competitiveness (AC) and Science Mathematics Access to Retain Talent (SMART) Grants.
Secretary is authorized to award grants to Pell-eligible U.S. citizens,
Removes the term “academic” from all references to year of study in
who are enrolled full-time in an undergraduate program. First and
the AC and SMART grant program provisions. Extends eligibility to
second year undergraduates receive an AC grant and students in their
eligible non-citizens and those enrolled on at least a half-time basis.
third or fourth year receive a SMART grant.

CRS-19
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
First-year students who were previously enrolled in an undergraduate
Extends eligibility to first-year students who were previously enrolled
program are ineligible for AC or SMART.
in a program of undergraduate education.
No similar provision.
Extends eligibility to students enrolled in certificate programs lasting
at least one year (AC grant) or lasting at least two years (SMART
grant).
No similar provision.
Extends eligibility for SMART grants to students studying qualified
subjects who are enrolled in IHEs that do not permit declaration of a
major.
No similar provision.
Extends a fifth year of eligibility for SMART grants to students in
programs that require five full years of course work.
No similar provision.
Requires that IHEs make payments for AC and SMART grants in the
same manner as Pell .
Federal TRIO Programs.
Authorizes the Secretary to award grants for the following TRIO
Extends the grant period to five years and increases the minimum
programs: Talent Search, Upward Bound, Student Support Services,
grant amount to $200,000.
McNair Postbaccalaureate Achievement, and Educational
Opportunity Centers for a four-year period with a minimum grant
amount between $170,000 and $190,000.
No similar provision.
Requires the Secretary to establish outcome criteria for measuring the
quality and effectiveness of the TRIO programs. Outcome criteria
must be disaggregated by the following categories: low-income, first
generation, and individuals with disabilities. Further requires that
programs be assessed on how they meet or exceed their objectives as
measured against an eligible entity’s stated target outcomes.

CRS-20
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Authorizes numerous services for TRIO programs, including
Creates a new set of required services for each of the TRIO programs
assistance with academic matters, applications for college admission,
that includes assistance with academic matters, applications for
financial aid, and personal and career counseling.
college admission, financial aid, and financial literacy.
No similar provision.
Establishes priority for Upward Bound projects that include at least
30% of first-time students who have a high risk of academic failure.
Prohibits the Secretary from denying participation in Upward Bound
to a student who enters the program for the first time after the ninth
grade.
Secretary is authorized to award contracts to evaluate the
Requires the Secretary to submit an annual report on the program’s
effectiveness of the TRIO programs and disseminate the results of
delivery of services, participating students’ secondary and
these evaluations.
postsecondary school enrollment and completion, and academic
performance. The report must include the following:
! Disaggregated data by individual project
performance, including descriptive, longitudinal,
and multi-cohort information, and be comparable to
the national population of low-income, first
generation students and students with disabilities.
! National performance data with the primary purpose
of identifying and highlighting best practices for
increasing college access and persistence through
implementation of the programs.
Secretary prohibited from requiring an eligible TRIO grant applicant
to recruit students to serve as a control group in an evaluation.
However, the Secretary is allowed to give priority to entities that
voluntarily elect to participate in an evaluation using a control group.

CRS-21
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP).
The Secretary is required to give priority to eligible entities that
Eliminates this priority.
previously carried out GEAR UP programs prior to the Higher
Education Amendments of 1998.
Requires the Secretary to allocate at least 33% of available funds for
Eliminates this requirement and requires the Secretary to consider the
both State and Partnership grants.
geographic distribution and the distribution of awards between urban
and rural applicants.
Limits the amount of funds that State and Partnership grantees can
Applies this limitation only to State grantees.
use for early intervention to not less than 25% and not more than 50%
of the amount available for distribution.
No similar provision.
Grantees must ensure that grants will be used to supplement and not
supplant federal, state and other local funds used for similar activities
and programming.
Eligible entities must submit a plan to the Secretary which contains a
Specifies that the contents of an application must include a
description of “the activities for which assistance is sought” and
description of how the entity meets the scholarship requirements, a
“provides such additional assurances as the Secretary determines
demonstration of adequate staffing for coordinating activities, an
necessary.”
assurance that activities would not displace employees or eliminate
positions at schools, a description of how the entity defines the
targeted cohort and serves the cohort through grade 12, and a
description of program coordination with existing federal, state, and
local projects.
Requires State grantees to establish and maintain a scholarship
Requires grantees to notify students of the eligibility requirements to
component that provides students with funds equal to 75% of the
receive a scholarship and to create or organize a trust for each cohort
state’s cost of attendance (COA) or the maximum Pell award.
of students. Gives the Secretary authority to allow State grantees to
exceed the 50% use of funds for early intervention.

CRS-22
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Federal Supplemental Educational Opportunity Grants (FSEOG).
The Secretary is authorized to allocate up to an amount equal to 10%
Removes this provision.
of the amount by which funds appropriated for programs authorized
under Title IV, Part A exceeds $700 million, among IHEs from
which 50% or more Pell recipients either graduate or transfer to
four-year IHEs.
The allowance for books and supplies used in calculating each
Increases the allowance for books and supplies to $600.
institution’s average COA for purposes of allocating funds to IHEs
according to “fair share” allocation procedures is $450.

CRS-23
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Leveraging Educational Assistance Partnership (LEAP) Program.
Grants to students may not exceed $5,000 per academic year.
Increases maximum grant per academic year to the lesser of $12,500
or the student’s COA.
The Special Leveraging Educational Assistance Partnership (SLEAP)
Replaces the SLEAP program with the “Grants for Access and
program is authorized funding from amounts appropriated for HEA,
Persistence” program. The program is authorized in the same manner
LEAP that are in excess of $30 million. State SLEAP programs may
as SLEAP.
consist of the following activities: increasing the dollar amount of
! Authorized activities include (a) partnerships with
grants under the LEAP program; carrying out transition programs
IHEs, private corporations, philanthropic
from secondary school to postsecondary education for needy students;
organizations, and other entities to coordinate
carrying out early intervention, mentoring, and career education
financial assistance to low-income students; (b)
programs; and awarding merit or academic scholarships to needy
need-based grants to low-income students for access
students. The federal share of funds may not exceed 33a% and
and persistence, (c) early notification of low-income
states must meet maintenance of effort requirements.
students about their eligibility for financial aid, and
(d) encouraging the participation of low-income
students in early information and intervention
mentoring, or outreach programs.
! States must apply in partnership with private
corporations or philanthropic organizations, and
IHEs.
! The federal share of funds is 50% for states that
apply in partnership with IHEs whose combined
enrollment represents less than half of all students
enrolled in the state; and 57% for states that apply in
partnership with IHEs whose combined enrollment
represents more than half of all students enrolled in
the state.

CRS-24
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Robert C. Byrd Honors Scholarship Program.
Merit-based scholarships are awarded to high school students who
Expands eligibility to include home-schooled students.
demonstrate academic achievement and show promise of continued
achievement.
Child Care Access Means Parents in School.
The Secretary is authorized to provide grants to assist IHEs in
Specifies a minimum grant award of $30,000 when annual
providing campus-based child care services to low-income students.
appropriations exceed $20 million. Also, expands definition of a low-
income students to include those who would be eligible for Pell but
for enrollment in graduate level programs or for temporary U.S.
status.
Learning Anytime Anywhere Partnerships.
The Secretary is authorized to make grants to partnerships to enhance
Program is repealed.
the delivery and quality of career-oriented lifelong learning through
technology.
Federal Family Education Loan (FFEL) Program and William D. Ford Direct Loan (DL) Program.
No similar provision.
Lenders must provide borrowers of unsubsidized Stafford Loans who
are eligible for a deferment with information on how the
capitalization of interest may impact the total amount to be repaid.

CRS-25
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Certain restrictions on inducements, mailings, and advertising apply
Restrictions on inducement, payments, mailings, and advertising by
to guaranty agencies.
guaranty agencies are revised to include other items, such as stock or
other securities, prizes, travel, entertainment expenses, and tuition
payment. The prohibition on unsolicited mailings is revised to apply
to mailings by postal or electronic means. Guaranty agencies are
prohibited from performing or paying another person to perform any
function the IHE is required to perform under Title IV, Parts B, D, or
G.
Guaranty agreements must contain certain provisions regarding the
Requires lenders to provide borrowers with specific information when
form of forbearance granted by lenders.
granting forbearance, including information about the impact of the
capitalization of interest; and, at least once every 180 days,
information on the accrual of interest.
Certain requirements apply to agreements with lenders regarding
Lenders must, in a clear and conspicuous manner, disclose to
consolidation loans.
borrowers who consolidate loans that were made under Title IV, Parts
B, D, or E information on any loan benefits that would be lost by
consolidating their loans.
The Secretary, guaranty agencies, lenders, and subsequent loan
Replaces “credit bureaus” with “consumer reporting agencies;” and
holders are required to enter into agreements with credit bureaus to
also requires reporting of the type of loan, the repayment status of the
exchange information concerning student borrowers.
loan, and any other information required by federal law.
Eligible lenders are required to disclose certain information to
In addition to existing requirements, eligible lenders subject to Title
borrowers regarding the terms and conditions of their loans.
V-A of the Gramm-Leach-Bliley Act shall only use, release, disclose,
sell, transfer, or give student information (e.g., name, address, social
security number, or amount borrowed) as permitted by that subtitle.
Eligible lenders, loan holders, and servicers must provide borrowers
with certain information on borrower benefits they offer, such as
interest rate reductions and any limitations on such benefits.

CRS-26
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
Guaranty agencies working with IHEs they serve; and the Secretary
working with IHEs in the DL program, must develop programs and
materials for providing students with training on budgeting, financial
management, debt management, and financial literacy. Such
activities shall be considered default reduction activities for purposes
of HEA, Section 422.
Eligible lenders may be disqualified for use of certain incentives.
Restrictions on inducement, payments, mailings, and advertising by
eligible lenders are revised to address other items, such as payments
for referrals, finder fees, prizes, stock or other securities, travel,
entertainment expenses, tuition payment, and additional financial aid
funds. The prohibition on unsolicited mailings is expanded to apply
to mailings by postal or electronic means. Eligible lenders are
prohibited from entering into consulting arrangements or other
contracts with employees of IHEs’ financial aid offices; and from
performing any function the IHE is required to perform under HEA,
Part B, D, or G. The compensation by lenders to students and
employees of IHEs’ financial aid offices is restricted.
IHEs may be eligible lenders; and eligible lenders may serve as
This authority sunsets June 30, 2011.
trustees for IHEs.
FFEL and DL loans borrowers who die or become permanently and
Specifies that borrowers who are unable to engage in gainful activity
totally disabled (as determined in accordance with regulations) may
due to a medically determinable physical or mental impairment,
have their loans discharged.
expected to result in death, which has lasted or is expected to last
continuously for 60 months, shall have their loans discharged.

CRS-27
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Federal Work-Study (FWS) Programs.
The allowance for books and supplies used in calculating each
Increases the allowance for books and supplies to $600.
institution’s average COA for the purpose of allocating funds
according to the “fair share” allocation procedures is $450.
IHEs must use at least 7% of their FWS allocation to compensate
Revises the criteria upon which the Secretary may grant a waiver.
students employed in community service; and must operate at least
Waivers would be granted because: enforcement would cause
one tutoring or family literacy project. These requirements may be
hardship for students at the IHE; or the IHE certifies that 15% or
waived if the Secretary determines that enforcement would cause
more of its full-time students participate in specified community
hardship for students at the IHE.
service or tutoring and literacy activities.
IHEs may use not more than 10% or $50,000 of their FWS allocations
IHEs may use not more than 10% or $75,000 of their FWS allocations
for job location and development programs.
for job location and development programs.
Certain requirements apply to “work-learning” programs operated by
Revises requirements applicable to work colleges, including (a)
work colleges.
referring to programs as “comprehensive work-learning-service
programs;” (b) limiting eligibility to public or profit four-year,
degree-granting IHEs; and (c) requiring resident students to
participate in comprehensive work-learning-service programs for not
less than 5 hours per week, or 80 hours per period of enrollment.

CRS-28
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Federal Perkins Loans.
Perkins Loans may be cancelled for employment in certain types of
Expands occupations for which Perkins Loans may be cancelled to
public service jobs.
include (a) full-time staff member in a pre-kindergarten or child care
program that is licensed or regulated by the state; (b) full-time faculty
member at a TCU; (c) librarian with a master’s degree in library
science, and employed in a school served under Title I of the
Elementary and Secondary Education Act, or a public library serving
a Title I school; and (d) full-time speech language therapist with a
master’s degree working exclusively in Title I schools. Provides loan
cancellation for these occupations, and for service as a member of the
armed forces in an area of hostilities, at the rate of 15% for the 1st and
2nd years of service; 20% for the 3rd and 4th years of service; and 30%
for the 5th year of service.
Perkins Loans borrowers of who die or become permanently and
Specifies that borrowers who are unable to engage in gainful activity
totally disabled (as determined in accordance with regulations) may
due to a medically determinable physical or mental impairment
have their loans discharged.
expected to result in death, which has lasted or is expected to last
continuously for 60 months, shall have their loans discharged.
Need Analysis: Cost of Attendance.
Defines an allowance for room and board costs incurred by a student
Expands definition to include a room and board allowance for
without dependents who resides at home and for students who live
students who live in housing located on a military base or who receive
on-campus in institutionally owned and operated housing.
a basic allowance for housing. The allowance would be based on the
reasonable expenses incurred solely for board, not for room.

CRS-29
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Need Analysis: Definitions.
Untaxed Income and Benefits: The term untaxed income and benefits
Excludes the value of military housing or a military housing
means, “... housing, food, and other allowances for military, clergy,
allowance received by a student or his/her parent, from consideration
and others.”
as untaxed income or benefits in the need analysis formula.
Definition of an Academic Year.
On a case-by-case basis, the Secretary may reduce the minimum
Clarifies that the Secretary may only reduce the number of weeks of
number of weeks of instruction in an academic year from 30 weeks to
instruction for programs that measure program length in credit hours
26 weeks, for good cause, for IHEs providing a two-year or four-year
or clock hours. Thus, the Secretary may not waive the minimum
program of instruction for which the institution awards an associate’s
weeks of instruction requirement for IHEs that solely measure student
or bachelor’s degree.
learning based on direct assessment.
Compliance Calendar.
No similar provision.
Prior to the beginning of each award year, requires the Secretary to
provide IHEs with a list of all reports and disclosures required under
the HEA, including, for example, the date each report or disclosure is
due, required recipients of each report or disclosure, and the required
content of each report or disclosure.
Forms and Regulations.
No similar provision.
Requires the Secretary to develop an EZ-Free Application for Federal
Student Aid (FAFSA) for individuals eligible for automatic-zero
expected family contribution (auto-zero EFC). The form shall only
contain elements necessary to determine student eligibility for federal
student aid and if applicant is eligible for auto-zero EFC. Secretary
shall include state specific data on the EZ-FAFSA, if state allows
residents to use EZ-FAFSA to apply for state aid.

CRS-30
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
Develops a simplified electronic form for auto-zero EFC and
simplified needs test (SMT)-eligible applicants. Secretary shall
include state specific data on the simplified electronic version if State
allows residents to use simplified version to apply for state aid.
No similar provision.
The Secretary shall phase-out printing the full paper FAFSA at such
time as he/she determines it is not cost effective to print the full
version. Prior to the phase-out and after, the Secretary shall maintain
a paper form on the Internet. Any savings produced shall be used to
help to improve access to electronic forms for students who qualify
for auto-zero EFC.
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. If State fails to
inform the Secretary, Secretary can allow applicants from that state to
complete the simplified application and not answer the state-specific
questions.
No similar provision.
Within 180 days of the date of enactment, the Secretary shall
implement a real-time data match between the Social Security
Administration and ED to minimize the time required to receive a
personal identification number.
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 the previous year’s FAFSA.
No similar provision.
Applicants can complete FAFSA in the years prior to enrolling in
postsecondary education to obtain a non-binding expected family
contribution (EFC).

CRS-31
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
The Secretary is authorized to include space for parent’s social
security number and date of birth on the FAFSA.
No similar provision.
Any entity that 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 ED’s website. Also, cannot charge
recipients who qualify for SNT or auto-zero EFC.
No similar provision.
The Secretary shall implement an early application demonstration
study program that enables dependent students to complete a FAFSA
two years prior to enrollment in an IHE. The Secretary shall partner
with states, IHEs and secondary schools.
No similar provision.
The Secretary shall evaluate the demonstration program to measure
the program’s benefits and adverse effects. The evaluation should:
identify whether financial awards or estimates, as applicable, have a
positive impact on the higher education aspirations and plans of the
student; determine whether using income data from two years prior
would impact the state’s and IHEs ability to make financial aid
awards and commitments; focus on simplifying the financial aid
application process; and developing alternative approaches to
calculating the EFC.
No similar provision.
Upon conclusion of the study the Secretary in joint decision with the
Secretary of the Treasury may use Internal Revenue Service data to
pre-populate the FAFSA if such use would not negatively impact
students, IHEs, states or the federal government on each of the
following criteria: program costs; re-distributive effects on students;
accuracy of aid determinations. Also should reduce burden to FAFSA
filers.

CRS-32
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Student Eligibility.
A student who is not a high school graduate may be eligible for
Allows IHEs to determine if a student has the ability to benefit from
federal student aid if it is determined that the student has the ability to
postsecondary education if the student satisfactorily completes six
benefit from postsecondary education based on the student’s score on
credit hours or the equivalent coursework applicable toward a degree
a specific examination, by meeting a state’s standards for making this
or certificate offered by the IHE.
determination, or by completing secondary school through home
schooling.
A student enrolled in a course of instruction at an IHE that is offered
Changes the current law reference to “distance education” to be
in whole or in part through telecommunications and leads to a
consistent with the newly added definition of distance education and
recognized certificate or degree shall not be considered enrolled in
specifies that students enrolled in a course of instruction offered
correspondence courses.
“principally through distance education” that leads to a recognized
degree or certificate will not be considered enrolled in
correspondence courses.
No similar provision.
Defines students with intellectual disabilities as a new group of
students eligible for federal student aid. To be considered a student
with intellectual disabilities, a student must be: (1) a person whose
cognitive impairment substantially affects intellectual and cognitive
functioning; (2) eligible for assistance under the Individuals with
Disabilities Education Act (IDEA) and have completed secondary
school or no longer be eligible for IDEA because he/she has exceeded
the maximum age; (3) enrolled or accepted for enrollment in a
comprehensive transition or postsecondary education program
meeting specific requirements such as preparing students for gainful
employment or independent living; and (4) satisfactorily progressing
in the program based on institutional standards. The student must
also meet various requirements related to federal aid repayment,
citizenship or residency, and fraud with respect to Title IV programs.

CRS-33
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Statute of Limitations and State Court Judgments.
Certain provisions ensure that obligations to repay loans and grant
Protects IHEs that participate in the Perkins Loan program against a
overpayments are enforced. For example, in collecting on a defaulted
defense raised by a borrower based on a claim of infancy. In the case
FFEL program loan, a guaranty agency or the Secretary shall not be
of a deceased student, neither the student’s estate nor the student’s
subject to a defense raised by a borrower based on a claim of infancy.
family’s estate shall be required to repay any Title IV aid, student
loan interest, or collection costs.
Institutional Refunds.
If an IHE determines that a student did not begin the withdrawal
Provides an IHE with the option of also determining that the HEA
process or failed to notify the institution of his/her intent to withdraw
requirements related to the return of Title IV funds do not apply to the
due to student illness, accident, or other circumstances beyond the
student.
student’s control, the IHE may determine the appropriate withdrawal
date.
Institutional and Financial Assistance Information for Students.
No similar provision.
Requires IHEs to develop policies and sanctions related to copyright
infringement.
No similar provision.
Requires IHEs to provide information on student body diversity,
employment of graduates, and types of graduate and professional
education pursued by graduates of four-year degree programs.
IHEs may exclude information on the graduation or completion rates
Adds that if these students represent 20% or more of certificate or
of students who leave school to serve in the armed forces, on official
degree-seeking, full-time, undergraduate students, the IHE may
church missions, or with a recognized foreign aid service of the
recalculate the completion and graduation rates of such students by
federal government.
excluding the time period during which they were not enrolled due to
one of the reasons listed.

CRS-34
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
Requires IHEs to disaggregate data on completion and graduation
rates by gender, race/ethnicity, receipt of Pell, receipt of specific
federal student loans, and receipt of other federal aid.
IHEs must provide exit counseling for borrowers.
Adds additional requirements to be discussed through exit counseling,
including loan prepayment requirements, consequences of default,
loan consolidation, and the National Student Loan Data System
(NSLDS). Requires that the IHE provide the borrower with a “clear
and conspicuous notice” regarding the effects of using a consolidation
loan.
The Secretary must compile and disseminate information on state and
Requires the Secretary to also collect and disseminate information on
other prepaid tuition and savings plans.
state grant assistance.
IHEs may exclude from their reports on the completion and
Adds that if these students represent 20% or more of certificate or
graduation rates of students and student athletes, students or student
degree-seeking, full-time, undergraduate students, the IHE may
athletes who leave school to serve in the armed forces, on official
recalculate the completion and graduation rates of such students by
church missions, or with a recognized foreign aid service of the
excluding the time period during which they were not enrolled due to
federal government.
one of the reasons listed.
All IHEs participating in Title IV must disclose their campus security
Excludes foreign institutions from this requirement.
policies and campus crime statistics.
No similar provision.
Requires IHEs to include a statement of their policies regarding
immediate emergency response and evacuation procedures. Among
other things, these policies must include procedures to test emergency
response and evacuation procedures annually.
No similar provision.
Requires the Secretary to annually report to the authorizing
committees regarding institutional compliance with the disclosure of
campus security policies and crime statistics, and the Secretary’s
monitoring of such compliance.

CRS-35
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
Requires IHEs to publicly disclose their transfer of credit policies,
and to state whether transfer of credit is denied solely on the basis of
the accreditation held by the sending institution. IHEs must also
publish a list of IHEs with which it has established articulation
agreements.
No similar provision.
Prohibits the Secretary or the Accreditation and Institutional Quality
and Integrity Advisory Committee (formerly NACIQI) from requiring
particular policies, procedures, or practices by IHEs regarding
transfer of credit.
No similar provision.
States that the transfer of credit policy does not: (1) permit ED to
exercise any direction, supervision, or control over the curriculum,
instruction, administration, or personnel at any IHE or over any
accrediting agency; (2) limit the application of the General Education
Provisions Act ; or (3) provide students with legally enforceable
rights to require an IHE to accept a transfer of credit.
No similar provision.
Requires IHEs to annually disclose information on fire safety
practices and standards.
National Student Loan Data System (NSLDS).
The Secretary is required to establish in NSLDS, information
Requires the Secretary to take certain actions with regard to NSLDS.
regarding loans made under the FFEL, DL, and federal Perkins Loan
These include ensuring: NSLDS is used for legitimate purposes; that
programs.
non-governmental researchers and policy analysts are prohibited from
accessing personally identifiable information; that students are
informed of their rights and responsibilities about information
contained in NSLDS on aid received under Title IV; that loan
recipients are informed that information about their loans may be
accessible to authorized NSLDS users; and that standardized
protocols are developed for limiting access to NSLDS.

CRS-36
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Early Awareness of Financial Aid Eligibility.
No similar provision.
The Secretary, in cooperation with states, IHEs, secondary and middle
schools, and outreach programs, shall implement an early awareness
of financial aid information program. ED should also develop a paper
and electronic means of allowing applicants to receive a non-binding
estimate of the amount of grant and loan aid he/she may be eligible
for.
Program Participation Agreement (PPA).
No similar provision.
Requires IHEs to establish and make publicly available a code of
conduct regarding student loans that addresses issues such as, revenue
sharing, contracting arrangements, and advisory board compensation.
Proprietary institutions are required to earn 10% of their revenue from
Moves the 90/10 rule from Title I to the PPA, and subjects proprietary
non-Title IV sources of revenue as a condition of institutional
institutions violating this rule to sanctions. By making this change,
eligibility; also referred to as the 90/10 rule.
the 90/10 rule is no longer an institutional eligibility requirement.
No similar provision.
Adds requirements related to preferred lender lists maintained by
IHEs. For example, IHEs must disclose why each lender is on the
preferred lender list.
No similar provision.
Adds requirements for IHEs related to teach-outs. Defines a teach-
out plan as a written plan providing for the equitable treatment of
students if an IHE ceases operations before all students have
completed their program of study.
No similar provision.
Requires that IHEs that violate their code of conduct regarding
students loans have their eligibility to participate in the federal
student loan programs limited, suspended, or terminated.

CRS-37
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Regulatory Relief and Improvement: Quality Assurance Program.
The Secretary’s authority for the QAP expired June 30, 1999.
The Secretary has authority to continue existing programs and
establish additional experimental sites until June 30, 2008. Also
requires the Secretary to review and submit a biennial report to the
authorizing committees on the experience of participating IHEs.
Transfer of Allotments.
IHEs may transfer up to 25% of their Perkins Loan FCC allotment to
Allows IHEs to transfer up to 25% of their FSEOG allotment to FWS.
FSEOG and/or FWS; and up to 25% of their FWS allotment to
FSEOG.
Advisory Committee on Student Financial Assistance (ACSFA).
ACSFA currently provides extensive knowledge and understanding of
Expands the purpose of the ACSFA to include providing knowledge
federal, state, and institutional programs for postsecondary student
and understanding of early intervention programs and making
assistance, among other things.
recommendations that will result in early awareness for low and
moderate-income students of their eligibility for assistance.
No similar provision.
Requires the ACSFA to conduct a study of innovative pathways to
baccalaureate degree attainment, such as dual enrollment, Pell
program changes, and compressed or modular scheduling, among
other things.
Recognition of Accrediting Agency or Association.
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 for the duration of the accreditation
standards.
period.

CRS-38
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
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. It does
not require IHEs to have separate standards for courses or programs
offered by distance education.
No similar provision.
Requires an accrediting agency 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.

CRS-39
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Accrediting agencies are required to assess the IHE’s success
Requires accrediting agencies to examine an IHE’s success regarding
regarding student achievement in relation to the institution’s mission,
student achievement in relation to the institution’s mission, which
including, as appropriate, course completion, state licensing exams,
may include different standards for different institutions or programs.
and job placement rates.
In making this assessment, accrediting agencies must examine
achievement based on expected levels of student achievement
established by the institution and which use empirical evidence and
external indicators, as appropriate, to examine:
! student retention rates;
! course completion rates;
! program completion and graduation rates;
! for prebaccalaureate career and technical education
programs, degree programs leading to initial
professional licensure or certification, the results of
state licensing exams and job placement rates;
! enrollment in graduate or professional programs;
and
! other student performance information selected by
the institution, especially information used by the
institution to evaluate or strengthen its programs and
information that reflects the institution’s mission
and distinctive goals for students.

CRS-40
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
An institution may oppose actions taken by its accrediting agency that
Modifies due process requirements for an institution opposing an
adversely affect the institution. Specifically, accrediting agencies are
adverse action to include:
required to apply procedures throughout the accrediting process that
! adequate specification of requirements and
comply with due process including:
deficiencies at the IHE or program being evaluated;
! adequate specification of requirements and
! opportunity for a written response by any such IHE
deficiencies at the IHE or program being evaluated;
that would be included, prior to final action, in the
! notice of an opportunity for a hearing by any such
evaluation and withdrawal proceedings;
IHE;
! upon written request by the IHE, an opportunity for
! right to appeal an adverse action against any such
the IHE to appeal any adverse action at a hearing
IHE; and
prior to the action becoming final, before an appeals
! right to representation by counsel for any such IHE.
panel that does not include members of the
accrediting agency’s 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
during an appeal of an adverse action.
An accrediting agency must make a summary of any review that
Requires the agency to make the summary publicly available and
results in final denial, termination, or suspension of accreditation, and
available to the state licensing or authorizing agency, and submit to
the comments of the affected institution, available to the public, upon
the Secretary, a summary of agency actions including:
request, and to the Secretary and state licensing or authorizing
! the award of accreditation or reaccreditation;
agency.
! final denial, withdrawal, suspension, or termination
of accreditation, or placement on probation of an
IHE, and any findings made in relation to the action
taken, and any official comments of the affected
IHE; and
! any other adverse action taken with respect to an
IHE.
No similar provision.
Requires on-site evaluations to include a review of the federally
required information that the institution or program must provide to
current and prospective students.

CRS-41
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
Requires accrediting agencies to monitor the growth of programs at
IHEs that are experiencing significant enrollment growth.
No similar provision.
Requires an IHE to submit a teach-out plan for approval by the
accrediting agency if specific events occur, such as the accrediting
agency withdraws accreditation or the IHE notifies the accrediting
agency that it will be closing.
No similar provision.
Requires accrediting agencies, as part of accreditation or re-
accreditation reviews, to confirm that the IHE has publicly disclosed
its transfer of credit policy and that the policy specifically states
whether the transfer of credit is denied solely on the basis of the
accreditation of the sending institution.
No similar provision.
Prohibits the Secretary from establishing any criteria that “specifies,
denies, or prescribes” the standards an accrediting agency will use to
assess an institution’s success with respect to student achievement.

CRS-42
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Program Review and Data.
The Secretary must conduct program reviews.
Adds that the Secretary must provide an IHE with an adequate
opportunity to review and respond to any program review report and
relevant materials before a final program review is issued. This review
and response must be taken into consideration in any final program
review or audit determination an IHE’s response. The report or
determination must include a written statement addressing the IHE’s
response, a statement of the basis for the determination, and a copy of
the IHE’s response. The confidentiality of any program review report
must be maintained until these steps are taken and a final program
review is issued, except to inform the state or accrediting agency when
the Secretary takes an action against an IHE. Requires the Secretary to
promptly disclose all program review reports to the institution under
consideration.
Timely Information About Loans.
No similar provision.
Requires lenders of a loan made, insured, or guaranteed under Title
IV to provide specific information to the borrower at designated
times, including pertinent information about the loan for each
payment installment period, information at least one month prior to
the commencement of repayment, information provided during
delinquency, and information provided at least twice during default.

CRS-43
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Title V: Developing Institutions.
Hispanic Serving Institutions (HSIs).
No similar provision.
Expands authorized activities to include education or counseling
services designed to improve financial literacy and economic literacy
of students or students’ parents and articulation agreements and
student support programs designed to facilitate the transfer from a
two-year to a four-year IHE.
No similar provision.
Establishes the Promoting Postbaccalaureate Opportunities for
Hispanic Students. The program would provide competitive grants for
HSIs offering postbaccalaureate degrees and certificates. Program
would be similar in nature to the existing program for HBCUs.
Title VI: International Education Programs.
International and Foreign Language Studies.
Supports centers, programs, and fellowships in U.S. IHEs, including
Requires the Secretary to consult with appropriate federal agencies to
programs partnering with overseas institutions, to increase the number
determine national priorities and assist programs funded under this
of trained personnel, and study in foreign language and area studies.
title to develop surveys of participants to determine placement after
graduation.
Grants may be used for a variety of activities to improve instruction
Adds to the list of authorized activities “support for instructors of less
including teaching and research materials, curriculum planning and
commonly taught languages” as well as “programs of linkage or
development, linkages with foreign institutions, summer institutes,
outreach between or among” State and local educational agencies and
travel support, visiting scholars, and professional development.
federal or state scholarship programs.

CRS-44
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Fellowship recipients must be graduate students engaged in, “the
Removes the graduate student limitation and makes undergraduate
international aspects of a professional studies program, including,
students engaged in intermediate or advanced study eligible for a
pre-dissertation level studies, preparation for dissertation research,
fellowship.
dissertation research abroad, and dissertation writing.”
Only 10% of total Title VI, Part A appropriation may be used to
Increases the amount to 20% of total Title VI, Part A appropriations,
support undergraduate programs.
but the study abroad component is limited to 10%.
Authorizes the Secretary to conduct research that contributes to
Adds to the description of this research, “evaluations of the extent to
achieving the purposes of Title VI, Part A.
which programs funded under this title reflect diverse perspectives
and generate debate on world regions and international affairs.”
Authorizes the Secretary to establish the Institute for International
Authorizes the provision of financial assistance to needy students in
Public Policy to increase the number of African Americans and
the form of summer stipends of up to $3,000 or Ralph Bunche
underrepresented minorities in international service.
scholarships of up to $5,000 per academic year.
Title VII: Graduate and Postsecondary Improvement Programs.
Graduate Student and Program Assistance.
Jacob K. Javits Fellowship Program — The Secretary is authorized to
Requires that the Fellowship Board include members from diverse
award fellowships for graduate study in the arts, humanities, and
institutions and geographic regions and at least one member from an
social sciences.
institution eligible for a grant under Titles III or V.
Graduate Assistance in Areas of National Need (GAANN) — The
Amends procedure for designating areas of national need, specifying
Secretary is authorized to award grants to IHEs and other entities to
consultation with the National Science Foundation, the Departments
support graduate programs in areas of national need.
of Defense and Homeland Security, the National Academy of
Sciences, and the BLS.
Thurgood Marshall Legal Educational Opportunity Program — The
Expands scope of authorized activities to include service to secondary
Secretary is authorized to award grants to provide low-income,
school students, to emphasize undergraduates’ preparation for
minority, or disadvantaged college students with financial assistance
admission to law school, and to pay stipends to participants.
to gain access to and complete law school.

CRS-45
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Fund for the Improvement of Postsecondary Education (FIPSE).
The Secretary is authorized to make grants and enter into awards for
Adds authorized uses of funds to include (1) establish and continue
contracts under FIPSE.
technologically-mediated collaborations; (2) reform remedial and
English language instruction; and (3) create consortia of IHEs to
establish interdisciplinary programs on poverty.
No similar provision.
Establishes a new FIPSE program to support integrated secondary-
postsecondary graduation reform programs, with funds going to
Project GRAD USA (a non-profit).
No similar provision.
Establishes a new FIPSE program to create, at an IHE, a Center for
Best Practices to Support Single-Parent Students.
No similar provision.
Establishes a new FIPSE program to create, at an IHE, a
clearinghouse for Understanding the Federal Regulatory Impact on
Higher Education.
Urban Community Service Program.
Program provides funds to IHEs in urban areas to enable them to
Repeals this program.
work with organizations to devise and implement solutions to the
problems in their communities.

CRS-46
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Demonstration Projects to Ensure Students with Disabilities Receive a Quality Higher Education.
Program provides funds to support demonstration projects that
Expands the list of authorized activities to include the development of
provide technical assistance and professional development for faculty
innovative teaching methods and strategies to ensure the smooth
and administrators in IHEs to provide individuals with disabilities a
transition of students with disabilities from high school to
quality postsecondary education.
postsecondary education; and strategies to make distance education
programs or classes more available to students with disabilities.
No similar provision.
Adds a new subpart that establishes a grant program and coordinating
center transition programs for students with intellectual disabilities.
S. 1642, Title VIII: Miscellaneous.
Mathematics and Science Scholars Program.
No similar provision.
Establishes a new grant program that authorizes the Secretary to
award competitive grants to states. States would award $1,000 to first
and second-year undergraduate students who complete a rigorous
high school program in math and science. States must match 50% of
federal funds and may set priorities (e.g., underrepresented groups)
for the scholarships.
Postsecondary Education Assessment.
No similar provision.
The Secretary must contract with a bipartisan organization to study
the cost factors associated with tuition at IHEs. Provision does not
specify authorization for funding

CRS-47
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Job Skill Training in High-Growth Occupations or Industries.
No similar provision.
Establishes a new program that authorizes the Secretary to award
competitive grants to IHEs and local workforce board partnerships for
development of job training programs in high-growth industries.
Additional Capacity for R.N. Students or Graduate-Level Nursing Students.
No similar provision.
Establishes a new program that authorizes the Secretary to award
competitive grants to nursing programs to expand faculty and
facilities. Necessary funding is indefinitely authorized.
American History for Freedom.
No similar provision.
Creates a new program that authorizes the Secretary to award
competitive grants to IHEs to establish or strengthen programs that
promote “(1) traditional American history; (2) the history and nature
of, and threats to, free institutions; or (3) the history and
achievements of Western Civilization.”
Teach For America.
No similar provision.
The Secretary is authorized to award a grant to Teach For America,
Inc., to implement and expand its program of recruiting, selecting,
training, and supporting new teacher; and to study the program’s
effectiveness. The organization may not use federal funds for more
than 25% of its administrative costs.

CRS-48
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Patsy T. Mink Fellowship Program.
No similar provision.
Establishes a new program to award competitive grants to IHEs for
fellowships to minorities and women seeking doctoral degrees with
the intent of entering the professoriate. Fellowship recipients must
sign a service agreement. At least 30% of funds would be reserved
for IHEs eligible for a grant under Titles III or V.
Improving College Enrollment by Secondary Schools.
No similar provision.
The Secretary must contract with a non-profit organization to conduct
a needs assessment and provide comprehensive services to urban
school districts and rural states in order to improve college-going
rates of participating schools.
Predominantly Black Institutions (PBIs).
No similar provision.
The Secretary is authorized to award formula grants of not less than
$250,000 to eligible predominantly black IHEs to develop programs
to enhance capacity to serve low- and middle-income Black American
students. A PBI is an IHE that enrolls at least 1,000 undergraduates,
of which at least 40% must be African-American and not less than
50% must be low-income or first-generation and 50% must be
pursuing an associate’s or bachelor’s degree. Allowable grant
activities are similar to those authorized under Title III, Part B.
Grantees may not concurrently receive Title III Part A or B funds.

CRS-49
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Early Childhood Education Professional Development and Career Task Force.
No similar provision.
Authorizes the Secretary to award competitive grants to states to
establish task forces to develop comprehensive statewide plans for
professional development and careers for early childhood education
providers, and which shall include assistance to pay up to $17,500 for
professional development for individuals with incomes below the
median income and who sign service agreements to work in early
childhood education programs.
Improving Science, Technology, Engineering, and Mathematics (STEM) Education with a Focus on Alaska Native
and Native Hawaiian Students.
No similar provision.
Authorizes the Secretary to award competitive grants to partnerships
(STEM schools/colleges, two-year IHEs, and private career
organizations) to develop or expand STEM programs and academic
support services and internships for STEM students, with a focus on
Alaska Native and Native Hawaiian students.
Pilot Program to Increase Persistence in Community Colleges.
No similar provision.
The Secretary is authorized to award competitive grants to IHEs for
scholarships ($2,000 per year for two years) and counseling services
for low-income students with dependents. Scholarship funds are paid
upon completion of specified academic milestones. The program is to
be evaluated with random assignment.

CRS-50
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Student Safety and Campus Emergency Management.
No similar provision.
The Secretary, in consultation with the Attorney General and the
Secretary of Homeland Security, is authorized to award competitive
grants to IHEs, to be matched by non-federal sources, for emergency
communication systems or improved safety training and response.
The Secretaries and Attorney General may also advise IHEs on model
emergency response practices.
S. 1642, Title IX: Amendments to Other Laws.
Education of the Deaf Act of 1986 (EDA).
Section 104 of the EDA refers to elementary and secondary education
Renames the section the “Laurent Clerc National Deaf Education
programs.
Center” and all references to elementary and secondary education
programs are replaced by references to the “Clerc Center.”
No similar provision.
Creates an additional requirement to the subsection on
“Administrative requirements” requiring Gallaudet University to
select and implement academic standards and assessments for
programs at the Center and determine and publicize whether
programs are making adequate yearly progress based on these
standards.
Authorizes the National Technical Institute for the Deaf (NTID).
The current operator of the center, Rochester Institute of Technology
(RIT) would be specified in the act
No similar provision.
Requires the Secretary to re-compete the operation of NTID if RIT
terminates the agreement.

CRS-51
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
No similar provision.
Creates a new section that authorizes the Secretary to make grants to
eligible non-profit entities for “cultural experiences” for deaf and
hard-of-hearing children and adults
Provides for enrollment of international students at Gallaudet and
Adds a new provision exempting international students participating
NTID and caps the number of such students.
in distance learning through Gallaudet or NTID from counting against
the enrollment cap except that such students shall not displace a U.S.
citizen applying for such courses. In addition, international students
participating in distance learning would not be charged the tuition
surcharge other international students at these institutions must pay.
International students must pay a tuition surcharge of 100% except
The 100% surcharge would be continued for students from “non-
for certain students from “developing countries” for whom the
developing countries.” The 50% surcharge for students from
institution may reduce the surcharge to 50%..
“developing countries” would be mandated, rather than being at the
institution’s discretion for certain students. Beginning with the 2008-
2009 academic year, the surcharges would be reduced to 50% and
25%, respectively, for students who demonstrate “need” and make “a
good faith effort” to obtain aid from their home governments.
“Developing country” is defined as having not more than a per capita
Definition would be updated to $4,825 in 1999 dollars.
income of $4,000 in 1990 dollars.

CRS-52
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Higher Education Amendments of 1998.
The Secretary is required to conduct numerous studies of selected
Repeals provisions for the following studies:
topics.
! Study of Market Mechanisms in the Federal Student
Loan programs
! Study of the Feasability of Alternative Financial
Instruments for Determining Lender Yields
! Student Related Debt Study
! Study of Transfer of Credits
! Study of Opportunities for Participation in Athletics
Programs
! Study of the Effectiveness of Cohort Default Rates
for Institutions with few Student Loan Borrowers
! Education Welfare Study
Title VIII authorizes various types of programs, and includes a Sense
Repeals the following programs and provisions:
of the Congress regarding good character.
! Community Scholarship Mobilization;
! Improving United States Understanding of Science
Engineering and Technology in East Asia
! Sense of the Congress regarding good character

CRS-53
Current Law
S. 1642 (as reported by the Senate Committee on Health,
Education, Pensions, and Labor)
Grants to States for Workplace and Community Transition Training for Incarcerated Youth Offenders.
Youth are currently defined as persons 25 or younger.
Changes the definition of “youth” to include persons under the age of
35.
Each state can receive $1,500 maximum, annually for each eligible
Increases the amount that each state can receive for each eligible
student for tuition, books, and essential materials.
student to $3,000 annually, for tuition, books, and essential materials.
Tribally Controlled College or University Assistance Act of 1978.
No similar provision.
Defines “Indian student” to mean a student who is: a member of an
Indian tribe; or a biological child of a member of an Indian tribe.
No similar provision.
Expands the definition of an eligible grantee to specify that the
tribally controlled college must also be accredited by a nationally
recognized accrediting association or an association recognized by the
Secretary.
Grant amount of $6,000 per Indian student.
Increases the grant amount per Indian student count to $8,000.
No similar provision.
Creates a new Subtitle V on Tribally Controlled Postsecondary Career
and Technical Institutions. “Tribally controlled postsecondary career
and technical institution” aligns with the definition of the term in the
Carl D. Perkins Career and Technical Education Act.
Navajo Community College Act.
The purpose of the act is to provide support for the education of
Strikes Navajo Community College and specifies that the support will
members of the Navajo tribe, by supporting the Navajo Community
be directed to Diné College.
College.

CRS-54
Appendix A. Outline of the Higher Education Act:
Titles, Parts, Programs, and Major Provisions
Title I: General Provisions
Part A: Definitions
Institutions of Higher Education (IHEs)
Institutions of Higher Education for Title IV Purposes
Part B: Additional General Provisions
Antidiscrimination
Protection of Student Speech and Association Rights
National Advisory Committee on Institutional Quality and Integrity (NACIQI)
Disclosure of Foreign Gifts
Collegiate Initiative to Reduce Binge Drinking and Illegal Alcohol
Consumption
Part C: Cost of Higher Education
Market Information and Public Accountability
Part D: Administrative Provisions for Delivery of Student Financial Assistance
Performance-Based Organization [Federal Student Aid]
Title II: Teacher Quality Enhancement
Part A: Teacher Quality Enhancement Grants for States and Partnerships
Teacher Quality Enhancement State Grants
Teacher Quality Enhancement Partnership Grants
Teacher Recruitment Grants
Part B: Preparing Tomorrow’s Teachers to Use Technology
Technology Training Grants
Title III: Institutional Aid
Part A: Strengthening Institutions
Strengthening Institutions Grants
Tribal Colleges and Universities (TCUs) Grants
Alaska Native and Native Hawaiian-serving Institutions Grants
Part B: Strengthening Historically Black Colleges and Universities (HBCUs)
Strengthening Historically Black Colleges and Universities Grants
Strengthening Historically Black Graduate Institutions Grants
Part C: Endowment Challenge Grants for Part A and Part B Institutions
Endowment Challenge Grants
Part D: Historically Black College and University Capital Financing
Federal Insurance for Bonds
Historically Black College and University Capital Financing Board

CRS-55
Part E: Minority Science and Engineering Improvement Program
Minority Institutions Science Improvement Program
Part F: General Provisions
Title IV: Student Assistance
Part A: Grants to Students in Attendance at Institutions of Higher Education
Federal Pell Grants
Academic Competitiveness Grants
National Science and Mathematics Access to Retain Talent (SMART) Grants
Federal TRIO Programs
Talent Search
Upward Bound
Student Support Services
Ronald E. McNair Postbaccalaureate Achievement Program
Educational Opportunity Centers
Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)
Academic Achievement Scholarships
Federal Supplemental Educational Opportunity Grants (FSEOG)
Leveraging Educational Assistance Partnership (LEAP) Program
Special Leveraging Educational Assistance Partnership (SLEAP) Program
College Assistance Migrant Program
Robert C. Byrd Honors Scholarship Program
Child Care Access Means Parents in School
Learning Anytime Anywhere Partnerships
Part B: Federal Family Education Loans (FFEL)
Robert T. Stafford Federal Loan Program
Federal Stafford Loans
Federal PLUS Loans
Federal Consolidation Loans
Federal Unsubsidized Stafford Loans
FFEL/Guaranteed Student Loan Program Provisions
Insurance Fund
Interest Rates, Terms, Conditions, and Benefits
Interest Subsidies
Guaranty Agency Agreements
Targeted Loan Terms
Armed Forces Student Loan Interest Payment Program
Loan Forgiveness for Teachers
Loan Forgiveness for Child Care Providers
Lender, Holder, Servicer, and Guaranty Agency Provisions
Loan Dispersement, Terms, and Fees
Default Terms, Rates, and Reduction
Common Guaranteed Student Loan Application Form and Promissory Note
Student Loan Marketing Association [repealed and dissolving July 1, 2013]
Part C: Federal Work-Study Programs
Federal Work-Study (FWS)
Work Colleges

CRS-56
Part D: William D. Ford Federal Direct Loans (DL)
Federal Direct Stafford/Ford Loan Program
Federal Direct Stafford Loans
Federal Direct PLUS Loans
Federal Direct Consolidation Loans
Federal Direct Unsubsidized Stafford Loans
DL Program Provisions
Institutional Participation
Interest Rates, Terms, Conditions, and Benefits
Loan Dispersement, Terms, and Fees
Armed Forces Student Loan Interest Payment Program
Loan Cancellation for Teachers
Part E: Federal Perkins Loans
Federal Perkins Loan Program
Armed Forces Student Loan Interest Payment Program
Cancellation of Loans for Certain Public Service
Part F: Need Analysis
Cost of Attendance
Expected Family Contribution
Part G: General Provisions Relating to Student Assistance Programs
Program Eligibility
Common Financial Aid Application Form [Free Application for Federal Student Aid
(FAFSA)]
Student Eligibility
Loan and Grant Repayment
Institutional Refunds
Institutional and Financial Assistance Information for Students
Collegiate Athletics Information Disclosures.
Jeanne Cleary Disclosure of Security Policy and Campus Crime Statistics Act
National Student Loan Data System (NSLDS)
College Access Initiative
Distance Education Demonstration Programs
Program Participation Agreements (PPA)
Integrated Postsecondary Student Aid Survey (IPEDS)
Quality Assurance Program
Regulatory Improvement and Streamlining Experiments
Wage Garnishment
Advisory Committee on Student Financial Assistance
Negotiated Rulemaking
Part H: Program Integrity
Program Integrity Triad
State Role
Accrediting Agency Recognition
Eligibility and Certification Procedures.
Title V: Developing Institutions
Part A: Hispanic Serving Institutions (HSIs)
Developing Hispanic Serving Institutions Grants
Part B: General Provisions

CRS-57
Title VI: International Education Programs
Part A: International and Foreign Language Studies
National and Area Language Centers and Programs
Graduate Fellowships for Foreign Language and Area or International Studies
Language Resource Centers
Undergraduate International Studies and Foreign Language Programs
Technological Information and Cooperation for Foreign Information Access
American Overseas Research Centers
Part B: Business and International Education Programs
Centers for International Business Education
Business and International Education and Training Programs
Part C: Institute for International Public Policy
Institute for International Public Policy
Part D: General Provisions
Title VII: Graduate and Postsecondary Education
Improvement Programs
Part A: Graduate Education Programs
Jacob K. Javits Fellowship Program
Graduate Assistance in Areas of National Need (GAANN)
Thurgood Marshall Legal Educational Opportunity Program
Part B: Fund for the Improvement of Postsecondary Education (FIPSE)
Fund for the Improvement of Postsecondary Education Grants
Part C: Urban Community Service
Urban Community Service Grants
Part D: Demonstration Projects to Ensure Students with Disabilities Receive a
Quality Higher Education
Quality Higher Education for Students with Disabilities Grants
Additional Programs Authorized by Higher Education
Amendments
Higher Education Amendments of 1986.
Title XV — American Indian, Alaska Native, and Native Hawaiian Culture and
Art Development
Institute of American Indian and Alaska Native Culture and Arts Development
Program for Native Hawaiian and Alaska Native Culture and Arts
Development
Higher Education Amendments of 1992.
Title XV — Related Programs and Amendments to Other Laws
B.J. Stupak Olympic Scholarships
Higher Education Amendments of 1998.
Title VIII — Studies, Reports, and Related Programs
Community Scholarship Mobilization Grants
Grants to States for Workplace and Community Transition Training for
Incarcerated Youth Offenders
Grants to Combat Violent Crimes Against Women on Campuses

CRS-58
Improving United States Understanding of Science, Engineering, and
Technology in East Asia
Underground Railroad Educational and Cultural Program
Notes: As amended through September 30, 2006. Programs are in italic type. Authorizations
for demonstration, dissemination, professional development, research, study, or evaluation grants
and contracts are not delineated above. Expired programs or provisions are omitted.