H.R. 2669 would provide for reconciliation pursuant to section 601 of the concurrent resolution on the budget for fiscal year 2008.

== Detailed Summary ==

<summary>
College Cost Reduction Act of 2007 -<b> Title I: Investing<b>(This measure has not been amended since the Conference Report was filed in Student Aid - Part A: Increasing the Purchasing PowerHouse on September 6, 2007. The summary of Pell Grants</b> - (Sec. 101) Amends the Higher Education Act of 1965 (HEA) to reauthorize the Pell Grant program through FY2013. Authorizes and appropriates additional funding for the program for FY2008-FY2017 to increase the amount of the maximum Pell grant for which a studentthat version is eligible by $200 for each of the award years 2008-2009 and 2009-2010, $300 for award year 2010-2011, and $500 for each subsequent award year. Increases the authorized maximum Pell grant to $7,600 for academic year 2008-2009 and by $1,000 increments each academic year thereafter until it stands at $11,600 for academic year 2012-2013. repeated here.)</b>

RepealsCollege Cost Reduction and Access Act - <b>Title I: Grants to Students in Attendance at Institutions of Higher Education</b> - (Sec. 101) Amends the Higher Education Act of 1965 (HEA) to repeal the formula for calculation ofcalculating an individual Pell grant which includes, in part, the sum of the student's tuition. (Thus eliminates the &quot;tuition sensitivity provision&quot; which currently prohibits maximum Pell grant awards to students attending low-tuition institutions of higher education (IHEs) even if their income is low enough to otherwise to qualify for the maximum award.) Makes $5Authorizes and appropriates $11 million available until October 2008for FY2008 to cover the costs of eliminating tuition sensitivity.

Allows, beginning in academic year 2009-2010, students who attend year-round institutions of higher education (IHEs)(Sec. 102) Reauthorizes the Pell Grant program through FY2017. Authorizes and appropriates additional funding for the program for FY2008-FY2017 to receive up to twoincrease the amount of the maximum Pell grants ingrant for which a student is eligible by $490 for each of the same academic year.award years 2008-2009 and 2009-2010, $690 for each of the award years 2010-2011 and 2011-2012, and $1,900 for award year 2012-2013.

Makes part-time students(Sec. 103) Authorizes and students whose prior enrollment in undergraduate education was partappropriates $57 million for each of FY2008-FY2011 to provide assistance to all Upward Bound projects that did not receive assistance in FY2007 and have a secondary school program of study, eligible for Academic Competitiveness grants.grant score above 70.

(Sec. 102) Increases students' Pell grant eligibility by increasing the income protection allowance to: (1) $3,750 for104) Establishes a dependent student; (2) $6,690 for an independent student without dependents, other than perhapsTEACH Grant program, providing $4,000 of tuition assistance each academic year to high-achieving undergraduate, post-baccalaureate, and graduate students who commit to teaching a spouse, who is single, separated,high-need subject in a high-need elementary or married and both spouses are enrolled; and (3) $10,720secondary school for an independent student without dependents other than a spouse if only one of the couple is enrolled. Provides for cost-of-living adjustments to such amounts, but for each of academic years 2010-2011four years. Includes mathematics, science, foreign languages, bilingual education, special education, and 2011-2012 increasesreading among such income protection allowances by 10%.high-need subjects.

Increases the income protection allowances in the table for independent students with dependents other than a spouse by 10% for academic year 2009-2010, and for eachSets an $16,000 aggregate limit on an individual's receipt of the three succeeding academic years.TEACH Grants.

(Sec. 103) Makes dependent students eligible for a simplified means test if one of their parents is a dislocated worker or they or their parents received a means-tested federal benefit within the past two years. (Currently, one year.) Makes independent students eligible for a simplified means test if they or their spouses are dislocated workers<b>Title II: Student Loan Benefits, Terms, and they have received a means-tested federal benefit withinConditions</b> - (Sec. 201) Phases-in cuts in the past two years. interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2011.

Raises, from $20,000 to $30,000,(Sec. 202) Eliminates the zero-expected family contributions incomethree-year deferment limit which allows students in families with incomes belowunder the FFEL, DL, and Perkins loan (PL) programs for borrowers who are serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency. Extends such limitdeferment for 180 days after demobilization. Removes language limiting such deferments to qualifyloans for which the maximum Pell grant award. Provides for cost-of-living adjustments to such amount. first disbursement was made after June 2001.

Includes the dislocated worker status(Sec. 203) Caps FFEL and DL repayments by student borrowers at no more than 15% of the amount a family member withinborrower's and the special circumstances giving financial aid administrators extra discretion in making need analyses.borrower's spouse's adjusted gross income exceeds 150% of the poverty line. Requires the Secretary of Education to pay any unpaid interest on such loans for up to three years, and cancel or repay them after 25 years.

(Sec. 104) Excludes welfare benefits, Earned Income Tax Credits, federal special fuels tax credits, untaxed foreign income, untaxed Social Security benefits, and204) Allows veterans who were called to active duty when enrolled in, or within six months of being enrolled in, an IHE to receive a 13-month student loan deferment. Cancels such deferment upon the additional federal child tax credit from the income and benefits which are considered untaxed and thereby includedborrower's reenrollment in student need analyses. school.

Excludes untaxed distributions from qualified education benefits(Sec. 205) Includes FFEL, DL, and PL economic hardship deferral periods, as incomewell as the months a borrower's FFEL or assetsDL payments are capped, in computing expected family contributionscalculating the maximum period an income contingent repayment plan may be in student aid calculations. Treats a qualified education benefit as: (1) the parent's asset when considering the family contributioneffect for a dependent student; and (2) the student's asset when considering such contribution for independent students. Excludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education savings accounts.non-defaulting borrower.

<b>Part B: Making Student Loans More Affordable</b> - (Sec. 111) Phases-in cuts in the interest rate charged undergraduate student borrowers under the<b>Title III: Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rateProgram</b> - (Sec. 301) Reduces from 6.8% in July 200623% to 3.4%16% the percentage of defaulted FFEL collections a guaranty agency may retain, beginning in July 2012.October 2007.

(Sec. 112) Increases FFEL annual loan limits302) Eliminates exceptional performer status for thirdlenders, servicers, and forth year students from $5,500 to $7,500. Increases aggregate limits from $23,000 to $30,500guaranty agencies, which rewards such entities for undergraduate students and from $65,500 to 73,000 for graduate students.high due diligence in FFEL collection, beginning in October 2007.

(Sec. 113)303) Reduces special allowance payments made to FFEL lenderslender insurance to compensate them for95% of the difference between FFEL interest rates and market rates. unpaid principal of such loans, beginning in FY2013. Provides total coverage to lenders-of-last-resort.

(Sec. 114) Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence304) Redefines economic hardship so that it describes the condition of borrowers whose full-time earnings do not exceed the greater of the minimum wage or 150% of the poverty line. Requires consideration, in FFEL collection. determining economic hardship, of the poverty line applicable to the borrower's family size, rather than the one applicable to a family of two.

(Sec. 115) Limits FFEL lender insurance to 95% of the unpaid balanceDefines eligible not-for-profit holders of FFELs. Provides that: (1) such loans. (Currently, 97%holders must have been acting as eligible lenders upon this Act's enactment, unless they are trustees acting on behalf of a FFEL issued after June 2006 is federally-insured.) such lenders; and (2) if such holders sell their loans to entities that are not not-for-profit holders, their special allowance payments will be calculated using the rates applicable to such entities.

(Sec. 116) Reduces from 23%305) Changes the formula for calculating special allowance payments (SAPs) made to 16%FFEL lenders, to compensate them for the difference between FFEL interest rates and market rates, by reducing the lender rate: (1) by 0.40 percentage of defaultedpoints for loans held by nonprofit lenders; and (2) by 0.55 percentage points for all other lenders. Equalizes the SAP rate for FFEL collections a guaranty agency is allowed to retain, beginning in October 2007.Stafford and PLUS loans.

(Sec. 117) LowersIncreases the account maintenanceloan fee paid tocharged FFEL guarantorslenders from .10%.5% to .06%1% of the original principal amount of active loans they have guaranteed.first disbursed after September 2007. Prohibits its collection from borrowers.

(Sec. 118) Increases306) Lowers the loanaccount maintenance fee chargedpaid to FFEL lendersguarantors from .5%.10% to 1%.06% of the original principal amount of active loans disbursed after October 2007, but eliminates the fee for small lenders, nonprofit organizations, and state and local governments. Prohibits its collection from borrowers. they have guaranteed.

(Sec. 119) Directs<b>Title IV: Loan Forgiveness</b> - (Sec. 401) Cancels the Secretary of Education (Secretary) and the Secretary of the Treasury to conduct a planning study of alternative market-based mechanisms for setting FFEL lenders' yields, which is to be followedDL balance owed by a limited two year pilot program testing the mechanisms which the study found most promisingborrowers who, after October 1, 2007, have made 120 payments under income-based or standard repayment plans while employed in ensuring loan availability, minimizing administrative complexity, and reducing federal costs. Allows the Secretary to implement on a program-wide basis the auction-based system proven to satisfy such criteria, after an independent evaluation of the pilot program by the General Accountability Office (GAO) .certain public service jobs.

(Sec. 120) Directs<b>Title V: Federal Perkins Loans</b> - (Sec. 501) Delays the date after which IHEs must begin distributing late PL collections to the Secretary from March 31, 2012, to pay to each FFEL guaranty agency, for deposit into their Operating Fund, a monthly delinquency prevention fee equal to 0.0055% of the original principal amount of loans insured by the agency, other than loans in in-school, grace period, or delinquency status.October 1, 2012.

Sets a minimum aggregate amount<b>Title VI: Need Analysis</b> - (Sec. 601) Increases students' eligibility for financial aid under title IV of loan processing and origination fees to be paidthe HEA by increasing, by academic year 2012-2013, the income protection allowance to: (1) $6,000 for a dependent student; (2) $9,330 for an independent student without dependents, other than perhaps a spouse, who is single, separated, or married, and where both spouses are enrolled; and (3) $14,960 for an independent student without dependents other than a spouse if only one of the Secretarycouple is enrolled. Provides for cost-of-living adjustments to FFEL guaranty agencies in any fiscal year.such amounts.

<b>Part C: Rewarding ServiceIncreases through academic year 2012-2013 the income protection allowances in Repayment</b> - (Sec. 131) Provides student loan forgivenessthe table for independent students with dependents other than a spouse, with cost-of-living adjustments to borrowers under the FFEL or DL programs who serve full-time in areas of national need as: (1) early childhood educators in low-income communities; (2) nurses; (3) critical foreign language specialists who teach in elementary or secondary schools or use such knowledge as federal employees; (4) librarians; (5) highly qualified teachers who teach bilingual education or who teach in schools that enroll a high proportion of disadvantaged students; (6) child welfare workers; (7) speech language pathologists in elementary or secondary schools; (8) National Service participants; (9) school counselors in elementary and secondary schools that enroll a high proportion of disadvantaged students; and (10) public sector employees. amounts thereafter.

Provides up to $1,000Revises the table of student loan forgivenessincome protection allowances for parents of dependent students, for each academic year of service, but limits forgiveness to $5,000after academic year 2008-2009, by increasing such amounts by the percentage increase in the aggregate.cost-of-living since December 1992.

(Sec. 132) Directs602) Makes dependent students eligible for a simplified means test if one of their parents is a dislocated worker or they or their parents received a means-tested federal benefit within the Secretary to forgive the balance due on DLs and direct consolidation loans by individuals who have been public sector employeespast two years (currently, one year). Makes independent students eligible for 10 yearsa simplified means test if they or their spouses are dislocated workers and they have made 120 income contingent payments on such loans.received a means-tested federal benefit within the past two years.

(Sec. 133) Caps FFEL and DL repayments by student borrowers at no more than 15% ofRaises from $20,000 to $30,000 the amount a borrower's and the borrower's spouse's adjusted grosszero-expected family contributions income exceeds 150% of the poverty line. Requireslimit which allows students in families with incomes below such limit to qualify for the Secretarymaximum Pell grant award. Provides for cost-of-living adjustments to cancel or repay such loans after 20 years.amount.

(Sec. 134) EliminatesIncludes the three-year limit on the deferraldislocated worker status of FFELs, DLs, and Perkins loans when borrowers are suffering economic hardship, redefined to include borrowers whose full-time earnings do not exceed 150% of the poverty line. Includes such deferral periods, as well as the months a borrower's FFEL or DL payments are capped, in calculatingfamily member within the maximum period an income contingent repayment plan may bespecial circumstances giving financial aid administrators extra discretion in effect for a non-defaulting borrower.making need analyses.

(Sec. 137) Allows veterans who were called to active duty when enrolled in, or within six months603) Includes the recent unemployment of being enrolled in, an IHE to receiveindependent student, the dislocated worker status of a 13 month student loan deferment. Cancels such deferment uponfamily member, and homelessness within the borrower's reenrollmentspecial circumstances giving financial aid administrators extra discretion in school.making need analyses.

<b>Part D: Sustaining the Perkins Loan Program</b> - (Sec. 141) Appropriates an additional $100 million for each of FY2008-FY2012 for(Sec. 604) Excludes untaxed distributions from qualified education benefits as income or assets in computing expected family contributions to Perkins Loan funds.in student aid calculations.

<b>Title II: ReducingExcludes welfare benefits, Earned Income Tax Credits, federal special fuels tax credits, untaxed foreign income, untaxed Social Security benefits, and the Cost of College - </b> (Sec. 201) Directsadditional federal child tax credit from the Commissioner of Education Statistics, in redesigning the College Opportunity On-Line (COOL) website, to identifyincome and include the data of greatest importance to prospectivebenefits which are considered untaxed and enrolled students, and their families. Requires such website also to provide comparable information and a sorting function that permits users to customize their search for and comparison of IHEs.thereby included in student need analyses.

RequiresIncludes in the Secretary to publish, on such website, additional college affordability information that includes sticker prices for the five most recent academic yearsdefinition of independent students those who: (1) are in foster care; (2) are emancipated minors or in legal guardianship; and an IHE's net tuition (tuition(3) have been verified as unaccompanied homeless children or youth or as unaccompanied, at risk of homelessness, and fees, minus student grant amounts) forself-supporting. States that a financial aid administrator may make a determination of independence based on a documented determination made by another financial aid administrator in the most recent academic year for which data are available.same award year.

Requires a school whose prices increase at more than twice the percentage change in the HEPI over a three-year period to report an explanation to the Secretary. Places schools on affordability alert status if their prices continue to exceed the HEPIExcludes special combat pay, received by such amount for two additional years. Requires publicationmilitary personnel because of such explanatory reports on the COOL website.exposure to a hazardous situation, from student need analyses or from consideration as financial assistance.

(Sec. 202) EstablishesTreats a new HEA title VIII, Restraining Tuition Increases.qualified education benefit as: (1) the parent's asset when considering the family contribution for a dependent student; and (2) the student's asset when considering such contribution for independent students.

Establishes a five-year cooperativeExcludes from need analyses any untaxed distributions from state prepaid tuition plans or Coverdell education grant program providing matching grants to IHEs to increase the availability and quality of programs offering students alternating or parallel periods of academic study and remunerative employment related to their academic or occupational objectives.savings accounts.

Reduces, by yearly 15% increments,<b>Title VII: Competitive Loan Auction Pilot Program -</b> (Sec. 701) Directs the federal share of cooperative education grants from 85%Secretary to conduct a Competitive Loan Auction Pilot program, beginning in July 2009, under which biennial auctions are held in each state allowing prequalified lenders to compete for the grant's first yearexclusive right to 25% inmake FFEL program PLUS loans at all IHEs within the fifthstate. Provides that the winning bids from each state auction shall be the two bids containing the lowest and final yearthe second lowest proposed special allowance payments requested from the Secretary. Requires the Secretary to guarantee 99% of the grant.unpaid balance of such loans.

Authorizes<b>Title VIII: Partnership Grants</b> - (Sec. 801) Establishes a College Access Challenge Grant program requiring the Secretary to use a portionprovide formula matching grants to states for specified activities and services to improve student access to postsecondary education. Requires that such grants cover two-thirds of program funds for: (1) demonstration projectscosts, with states responsible for the remainder. Requires the Secretary to reduce a state's grant to determine the feasibility or valueextent it fails to provide the full non-federal share and authorizes the award of innovation methodsthe amount of cooperative education; and (2) cooperative education training and resource centers.such reduction directly to a philanthropic organization to carry out the program.

Makes $15 Lists as allowable grant activities and services: (1) information to students and parents on postsecondary education benefits; (2) information on financing options that promote financial literacy and debt management among students and parents; (3) outreach for at-risk students; (4) assistance in completing the Free Application for Federal Student Aid (FAFSA) or other common financial reporting forms; (5) need-based grant aid for students; (6) professional development for middle school and high school guidance counselors, and college financial aid administrators and admissions counselors; and (7) student loan cancellation, repayment, or interest rate reductions for borrowers employed in high-need geographical areas or professions. Requires states to give service priority to low-income students and families. Authorizes and appropriates $66 million availablefor the program for each of FY2008-FY2012 to carry out title VIII.FY2008 and FY2009.

Directs the Secretary(Sec. 802) Makes $255 million for each of FY2008-FY2012 available to award competitive grantsminority-serving institutions, with: (1) $100 million going to IHEs that, for academic year 2008-2009 or any succeeding academic year, have an annual net tuition increase for the most recent academic year by no more than the percentage change in the HEPI for such academic year. Requires IHEsHispanic-serving institutions; (2) $100 million going to distribute such funds as need-based grant aidHistorically Black Colleges and Universities and Predominantly Black institutions; and (3) $55 million going to students who are eligible for Pell grants.Tribal Colleges and Universities, Alaska Native and Native Hawaiian-serving institutions, Asian American and Native American Pacific Islander-serving institutions, and Native American-serving nontribal institutions.

Provides bonus amounts to IHEs that guarantee to keep their tuition increasesDefines Predominantly Black institutions as accredited institutions serving at no more than the increase in the HEPI.least 1,000 undergraduate students at least: (1) 50% of whom are pursuing a bachelor's or associate's degree; (2) 40% of whom are Black Americans; and (3) 50% of whom are low-income or first-generation college students. Requires IHEs to providethe spending per full-time undergraduate student of such bonus amountsinstitutions to students who are eligible for Pell grants. be low in comparison to that of institutions offering similar instruction.

Requires IHEs whose net tuition increase exceeds the HEPI increase forDefines Asian American and Native American Pacific Islander-serving institutions as accredited institutions that have a significant enrollment of financially needy students and an academic year to report to the Secretaryenrollment of undergraduate students that are at least 10% Asian American and Congress regardingNative American Pacific Islander students. Requires the causesspending per full-time undergraduate student of such increase and voluntary actions they are takinginstitutions to reduce net tuition.be low in comparison to that of institutions offering similar instruction.

Gives grant and bonus priority to IHEs with the lowest annual net tuition increases.

Makes $15 million available for each of FY2008-FY2012 for such grants and bonus amounts.

<b>Title III: Ensuring a Highly Qualified Teacher in Every Classroom - Part A: TEACH Grants</b> - (Sec. 301) Establishes a TEACH Grant program providing $4,000 of tuition assistance each academic year to high-achieving undergraduate, post-baccalaureate, and graduate students who commit to teaching a high-need subject in a high-need elementary or secondary school for four years. Includes mathematics, science, foreign languages, bilingual education, special education, and reading among such high-need subjects.

Provides $500 Bonus TEACH Grants each academic year to students who are eligible for TEACH Grants and enroll in a Teacher Preparation program that is implemented by an IHE in partnership with high-need LEAs and schools and offers a baccalaureate degree, post-baccalaureate teacher credential, or graduate degree and concurrent teacher certification in science, technology fields, special education, foreign language, engineering, and English language instruction.

Sets aggregate limits on an individual's receipt of TEACH Grants and Bonus TEACH Grants.

<b>Part B: Centers of Excellence</b> - (Sec. 311) Awards competitive grants to minority-serving IHEs to establish centers of excellence that improve the preparation and support of highly-qualified teachers by: (1) implementing reforms within teacher preparation programs to ensure that teachers are able to understand scientifically-based research and use advanced technology effectively; (2) providing sustained and high-quality preservice clinical experience; (3) developing and implementing initiatives to promote the retention of such teachers; (4) awarding financial need scholarships for participation in teacher preparation programs; and (5) disseminating information on effective teacher preparation practices.

Makes $50 million available from FY2008-FY2012 for centers of excellence.

<b>Title IV: Leveraging Funds to Increase College Access - Part A: Strengthening Historically Black Colleges and Universities and Minority-Serving Institutions</b> - (Sec. 401) Makes $100 million for each of FY2008-FY2012 available to minority-serving institutions, with: (1) 40% going to Hispanic-serving institutions; (2) 40% going to Historically Black Colleges and Universities and Predominantly Black institutions; and (3) 20% going to Tribal Colleges and Universities, AlaskaDefines Native and Native Hawaiian-serving institutions, and Asian and Pacific Islander-serving institutions.

Defines Predominantly BlackAmerican-serving nontribal institutions as accredited institutions serving at least 1,000 undergraduate students at least: (1) 50% of whom are pursuing a bachelor's or associate's degree; (2) 40% of whom are Black Americans; and (3) 50% of whom are low-income or first-generation college students. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.

Defines Asian and Pacific Islander-serving institutions as accredited institutionsIHEs that have a significant enrollment of financially needy students and an enrollment of undergraduate students that are at least 10% AsianNative American students and Pacific Islander students from subgroups with low levels of college degree attainment. Requires the spending per full-time undergraduate student of such institutions to be low in comparison to that of institutions offering similar instruction.are not Tribal Colleges and Universities.

Requires that funds for Predominantly Black institutions be available for competitive grants for programs in science, technology, engineering, mathematics, health education, international affairs, teacher preparation, or to improve the educational outcomes of African American males.

Requires that funds for the other institutions be used for certain capacity-building activities. Sets spending priorities for Hispanic-serving institutions and Historically Black Colleges and Universities that include education in disciplines in which minorities and low-income students are underrepresented and, in the case of Hispanic-serving institutions, the development of model transfer and articulation agreements.

<b>Part B: College Access Challenge Grants</b> - (Sec. 411) Establishes a College Access Challenge Grant program providing matching grants to philanthropic organizations that are members of eligible consortia for financial aid, mentoring, and outreach services to increase the number of needy students from underserved populations who enter and complete college.

Makes $300 million available for the program from FY2008-FY2012.

<b>Part C: Upward Bound</b> - (Sec. 412) Directs the Secretary to rescind the absolute priority for Upward Bound program participant selection and evaluation, established by regulation.

Authorizes and appropriates $57 million for each of FY2008-FY2011 to restore funding to all Upward Bound projects that: (1) received funding in FY2006 but not in FY2007; and (2) have grant score above 70.
</summary>

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== Status of the Legislation ==

<status>
Latest Major Action: 9/7/2007: Conference report agreed9/19/2007: Presented to in House. Status: On agreeing to the conference report Agreed to by the Yeas and Nays: 292 - 97 (Roll no. 864).President.
</status>

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== Points in Favor ==

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== Points Against ==

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