To amend and extend the Higher Education Act of 1965.

May 5, 2004

Mr. BOEHNER (for himself and Mr. MCKEON) introduced the following bill; which was referred to the Committee on Education and the Workforce

To amend and extend the Higher Education Act of 1965.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `College Access and Opportunity Act of 2004'.

(b) Table of Contents-

Sec. 1. Short title; table of contents.

Sec. 2. References; effective date.

TITLE I--GENERAL PROVISIONS

Sec. 101. Definition of institution of higher education.

Sec. 102. New borrower definition.

Sec. 103. Student speech and association rights.

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

Sec. 105. Alcohol and drug abuse prevention.

Sec. 106. Prior rights and obligations.

Sec. 107. Consumer information and public accountability in higher education.

Sec. 108. Performance-based organization.

TITLE II--TEACHER PREPARATION

Sec. 201. Sense of the House of Representatives.

TITLE III--INSTITUTIONAL AID

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

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

Sec. 303. Grants to part B institutions.

Sec. 304. Technical amendments.

Sec. 305. Title III authorizations.

TITLE IV--STUDENT ASSISTANCE

Part A--Grants to Students

Sec. 401. Pell Grants.

Sec. 402. TRIO programs.

Sec. 403. GEARUP.

Sec. 404. Federal Supplemental Educational Opportunity Grants.

Sec. 405. LEAP.

Sec. 406. HEP/CAMP program.

Sec. 407. Byrd Scholarship.

Sec. 408. Child care access.

Sec. 409. Learning anytime anywhere partnerships.

Sec. 410. Technical amendments.

Part B--Federal Family Education Loan Program

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

Sec. 422. Loan limits.

Sec. 423. Interest rates and special allowances.

Sec. 424. Additional loan terms and conditions.

Sec. 425. Consolidation loan changes.

Sec. 426. Unsubsidized Stafford loans.

Sec. 427. Teacher recruitment and retention.

Sec. 428. Additional administrative provisions.

Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.

Sec. 442. Community service.

Sec. 443. Allocation of funds.

Sec. 444. Books and supplies.

Sec. 445. Job location and development.

Sec. 446. Work colleges.

Part D--Federal Direct Loan Program

Sec. 451. Reauthorization of the Direct Loan Program.

Part E--Federal Perkins Loan Program

Sec. 461. Reauthorization of program.

Sec. 462. Loan terms and conditions.

Sec. 463. Loan cancellation.

Sec. 464. Technical amendments.

Part F--Need Analysis

Sec. 471. Simplified needs test improvements.

Sec. 472. Additional need analysis amendments.

Part G--General Provisions Relating to Student Financial Assistance

Sec. 481. Definition of academic year.

Sec. 482. Distance education.

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

Sec. 484. Student eligibility.

Sec. 485. Institutional refunds.

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

Sec. 487. College access initiative.

Sec. 488. Distance education demonstration program.

Sec. 489. College affordability demonstration program.

Sec. 490. Program participation agreements.

Sec. 491. Additional technical and conforming amendments.

Part H--Program Integrity

Sec. 495. Accreditation.

TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitional changes.

Sec. 502. Assurance of enrollment of needy students.

Sec. 503. Additional amendments.

Sec. 504. Title V authorization.

TITLE VI--TITLE VI AMENDMENTS

Sec. 601. Sense of the House.

TITLE VII--TITLE VII AMENDMENTS

Sec. 701. Sense of the House.

TITLE VIII--CLERICAL AMENDMENTS

Sec. 801. Clerical amendments.

TITLE IX--STUDENT LOAN FORGIVENESS FOR FAMILIES OF 9/11 VICTIMS

Sec. 901. Cancellation of student loan indebtedness for spouses, surviving joint debtors, and parents.

TITLE X--AMENDMENTS TO OTHER EDUCATION LAWS

Part A--Education of the Deaf Act of 1986

Sec. 1001. Laurent Clerc National Deaf Education Center.

Sec. 1002. Authority.

Sec. 1003. Agreement for the National Technical Institute for the Deaf.

Sec. 1004. Definitions.

Sec. 1005. Audit.

Sec. 1006. Reports.

Sec. 1007. Liaison for educational programs.

Sec. 1008. Federal endowment programs for Gallaudet University and the National Technical Institute for the Deaf.

Sec. 1009. Oversight and effect of agreements.

Sec. 1010. Authorization of appropriations.

Part B--Additional education laws

Sec. 1021. Amendment to Higher Education Amendments of 1998.

Sec. 1022. Tribally Controlled College or University Assistance Act of 1978.

Sec. 1023. Navajo Community College Act.

Sec. 1024. Education Amendments of 1992.

Sec. 1025. Study of student learning outcomes and public accountability.

SEC. 2. REFERENCES; EFFECTIVE DATE.

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

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

TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

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

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

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

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

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

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

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

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

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

`(4) meets either of the following criteria:

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

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

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

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

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

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

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

`(b) Additional Limitations-

`(1) For-profit postsecondary institutions-

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

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

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

`(3) Limitations based on management- An institution shall not be considered to meet the definition of an institution of higher education in this section if--

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

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

`(4) Limitation on course of study or enrollment- An institution shall not be considered to meet the definition of an institution of higher education in subsection (a) if such institution--

`(A) offers more than 50 percent of such institution's courses by correspondence (excluding courses offered by telecommunications as defined in 484(l)(4)), unless the institution is an institution that meets the definition in section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998;

`(B) enrolls 50 percent or more of the institution's students in correspondence courses (excluding courses offered by telecommunications as defined in 484(l)(4)), unless the institution is an institution that meets the definition in section 3(3)(C) of the Carl D. Perkins Vocational and Technical Education Act of 1998, except that the Secretary, at the request of the institution, may waive the applicability of this subparagraph to the institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively;

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

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

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

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

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

`SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

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