Nontraditional Student Success Act - Authorizes and appropriates specified funds for Federal Pell grants under the Higher Education Act of 1965 (HEA), including increasing maximum grant amounts for academic years 2005-2006 through 2009-2010, after a specified reduction from the academic year 2003-2004 level for academic year 2004-2005.
Amends the HEA to revise the requirements for the allowance of two Pell grants during a single award year to allow the student to be enrolled full-time in a certificate (or, as currently, a degree) program.
Requires the Secretary to publish in the Federal Register each academic year a revised table of income protection allowances.
Excludes the earned income tax credit (EITC) from financial aid determinations.
Authorizes the Secretary to select institutionsof higher education, or systems or consortia of such institutions, for voluntary participation in a Nontraditional Students Demonstration Program, strictly monitored by the Department of Education, to test the effectiveness of providing expanded financial assistance to: (1) less than half-time students for not more than three terms over the duration of the students' course of study; and (2) students in compressed, modular, or other alternative schedules.
Directs the Secretary to award competitive grants to eligible institutions for the purposes of improving remedial education.
Increases minimum grant amounts for the Federal TRIO programs.
Permits student support services and educational opportunity centers to include career and academic (as well as personal) counseling provided by assigned counselors.
Makes awards under the Early Intervention and College Awareness Program for six years. Requires services under the Program provided in a cohort approach to be provided through the first year of attendance at a postsecondary education institution to students in the participating grade level. Requires the continuing system of mentoring and advising under an early intervention program to be provided to eligible students through the first year of attendance at a postsecondary education institution. Authorizes appropriations for the Program through FY 2010.
Authorizes FY 2005 appropriations for the Child Care Access Means Parents in School Program of campus-based child care services for low-income parents in postsecondary education.
Directs the Secretary to establish a website and brochures for providing outreach about financial aid and education tax credits that targets employers, one-stop centers, Head Start centers, and other appropriate locations.
Includes among the activities for which grants to Hispanic-serving institutions, as well as grants from the Fund for the Improvement of Postsecondary Education, may be used the introduction of reforms to customize remedial education, including English language instruction, to help students move rapidly from remedial courses into core courses and through program completion.
Revises requirements for Special Programs for Students Whose Families Are Engaged in Migrant and Seasonal Farmwork to: (1) specify childcare and transportation among the essential supportive services which may be provided by the high school equivalency program; and (2) authorize appropriations through FY 2010 for both the high school equivalency program and the college assistance migrant program.
Amends the Internal Revenue Code to increase from 20 to 50 percent the Lifetime Learning income tax credit, specify that it is for qualified higher education expenses, but reduce the credit limit from $10,000 to $4,000 per year. Makes a portion of the credit refundable. Directs the Secretary of the Treasury to establish a program for making advance payments to eligible educational institutions of such credits on behalf of certified individuals in an amount equal to such a credit for the year.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2360 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2360
To provide higher education assistance for nontraditional students, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 29, 2004
Mrs. Clinton (for herself, Mr. Graham of Florida, and Mr. Dayton)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To provide higher education assistance for nontraditional students, and
for other purposes.
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 ``Nontraditional
Student Success Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--FINANCIAL PROVISIONS
Sec. 101. Federal Pell Grants.
Sec. 102. Income protection allowance revised tables.
Sec. 103. Exclusion of the earned income tax credit (EITC) from
financial aid determinations.
Sec. 104. Nontraditional Students Demonstration Program.
TITLE II--SUPPORT SERVICES
Sec. 201. Strengthening institutions.
Sec. 202. Grants to increase completion by improving remedial
education.
Sec. 203. Federal Trio Programs.
Sec. 204. Student support services.
Sec. 205. Educational opportunity centers.
Sec. 206. Early intervention and college awareness program.
Sec. 207. GEAR UP cohort requirement.
Sec. 208. Early intervention.
Sec. 209. Authorization of appropriations.
Sec. 210. Child Care Access Means Parents in School program.
Sec. 211. Increased awareness of financial aid availability.
Sec. 212. Hispanic-serving institutions.
Sec. 213. Fund for the improvement of postsecondary education.
Sec. 214. Amendments to special programs for students whose families
are engaged in migrant and seasonal
farmwork.
TITLE III--LIFETIME LEARNING CREDIT
Sec. 301. Improvement of lifetime learning credit.
Sec. 302. Refundability of lifetime learning credit.
Sec. 303. Advance payment of lifetime learning credit.
TITLE I--FINANCIAL PROVISIONS
SEC. 101. FEDERAL PELL GRANTS.
(a) Authorization and Appropriation of Funds for Federal Pell
Grants.--There are authorized to be appropriated and there are
appropriated, out of any money in the Treasury not otherwise
appropriated for the fiscal year ending September 30, 2004, for
carrying out subpart 1 of part A of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070a), $14,515,000,000.
(b) Authorization Amount and Maximum Federal Pell Grant.--Section
401(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)) is
amended--
(1) in paragraph (2)(A), by striking clauses (i) through
(v) and inserting the following:
``(i) $7,600 for academic year 2005-2006;
``(ii) $8,600 for academic year 2006-2007;
``(iii) $9,600 for academic year 2007-2008;
``(iv) $10,600 for academic year 2008-2009; and
``(v) $11,600 for academic year 2009-2010,''; and
(2) in paragraph (3)--
(A) in subparagraph (A), by striking
``appropriation Act'' and inserting ``appropriation Act
or subparagraph (C)''; and
(B) by adding at the end the following:
``(C) The maximum Federal Pell Grant for which a student shall be
eligible during academic year 2004-2005 shall be $4,500, less an amount
equal to the amount determined to be the expected family contribution
with respect to the student for that year.''.
(c) Students With Low Family Incomes.--Section 401(b)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1070a(b)(2)) is amended further
by adding at the end the following:
``(C) In the case of a student with a negative expected family
contribution equal to or less than -$750, a positive amount
corresponding to the negative expected family contribution amount shall
be added to the maximum basic grant for which the student is qualified,
except that in no case shall the amount of the basic grant exceed the
amount permitted under paragraph (4).''.
(d) Two Pell Grants in a Single Award Year.--Section 401(b)(6)(A)
of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(6)(A)) is
amended to read as follows:
``(6)(A) The Secretary shall allow a student to receive 2 Federal
Pell grants during a single award year, if--
``(i) the student is enrolled full-time in a certificate or
degree program of study at an eligible institution; and
``(ii) the student completes course work toward completion
of a certificate or an associate or baccalaureate degree that
exceeds the requirements for a full academic year as defined by
the institution.''.
SEC. 102. INCOME PROTECTION ALLOWANCE REVISED TABLES.
Section 478(b) of the Higher Education Act of 1965 (20 U.S.C.
1087rr(b)) is amended to read as follows:
``(b) Income Protection Allowance.--
``(1) Revised tables.--For each academic year after
academic year 1993-1994, the Secretary shall publish in the
Federal Register a revised table of income protection allowances for
the purpose of sections 475(c)(4) and 477(b)(4). The revised table for
section 475(c)(4) shall be developed by increasing each of the dollar
amounts contained in the table in such section by a percentage equal to
the estimated percentage increase in the Consumer Price Index (as
determined by the Secretary) between December 1992 and the December
next preceding the beginning of such academic year. The revised table
for section 477(b)(4) shall be developed by using a 3-year average of
the median expenses for a family of 4 based on the Consumer Expenditure
Survey data, adjusted for current dollars, calculated for the lower
living level. The results for both tables shall be rounded to the
nearest $10.
``(2) Revised amounts.--For each academic year after
academic year 2005-2006, the Secretary shall publish in the
Federal Register a revised income protection allowance for the
purpose of section 476(b)(1)(A)(iv)(I). Such revised allowance
shall be developed by increasing the dollar amount contained in
such section by a percentage equal to the estimated percentage
increase in the Consumer Expenditure Survey (as determined by
the Secretary) between December 2005 and the December next
preceding the beginning of such academic year, and rounding the
result to the nearest $10.''.
SEC. 103. EXCLUSION OF THE EARNED INCOME TAX CREDIT (EITC) FROM
FINANCIAL AID DETERMINATIONS.
Section 480(b) of the Higher Education Act of 1965 (20 U.S.C.
1087vv(b)) is amended--
(1) by striking paragraph (8); and
(2) by redesignating paragraphs (9) through (14) as
paragraphs (8) through (13), respectively.
SEC. 104. NONTRADITIONAL STUDENTS DEMONSTRATION PROGRAM.
Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.) is amended by adding at the end the following:
``PART I--NONTRADITIONAL STUDENTS DEMONSTRATION PROGRAM
``SEC. 499. NONTRADITIONAL STUDENTS DEMONSTRATION PROGRAM.
``(a) Purpose.--It is the purpose of this section--
``(1) to allow demonstration programs that are strictly
monitored by the Department to test the effectiveness of
providing expanded financial assistance under this title to
less than half-time students for not more than 3 terms over the
duration of the students' course of study, and to students in
compressed, modular, or other alternative schedules;
``(2) to increase graduation rates of nontraditional
students by enabling the nontraditional students to stay
continuously enrolled during periods when the nontraditional
students must temporarily attend college less than half-time;
and
``(3) to increase graduation rates of nontraditional
students by enabling the nontraditional students to enroll in
programs with compressed, modular, or other alternative
schedules that allow the nontraditional students to better
balance work, family, and school.
``(b) Demonstration Program Authorized.--
``(1) In general.--In accordance with the provisions of
subsection (d), the Secretary is authorized to select
institutions of higher education, systems of institutions of
higher education, or consortia of institutions of higher
education for voluntary participation in the Nontraditional
Students Demonstration Program. Such program shall provide
participating institutions, consortia, or systems with waivers,
as described in paragraph (2), that provide the ability to
offer expanded financial assistance--
``(A) to less than half-time students who have
completed not less than 1 term of coursework, for not
more than 3 terms over the duration of the students'
course of study; and
``(B) to students enrolled in programs with
compressed, modular, or other alternative schedules.
``(2) Waivers.--
``(A) Less than half-time students.--The Secretary
is authorized to waive, for any institution of higher
education, system of institutions of higher education,
or consortium of institutions of higher education
participating in the Nontraditional Students
Demonstration Program, the requirements of section 472
that relate to limiting the definition of the cost of
attendance for less than half-time students, especially
paragraphs (2) and (4) of such section, with the goal
of allowing the institution, system, or consortium to
use the same definition of the costs of attendance for
less than half-time students as is used for students
attending at least half-time.
``(B) Compressed, modular, or other flexible
schedules.--The Secretary is authorized to waive for
any institution of higher education, system of
institutions of higher education, or consortium of
institutions of higher education participating in the
Nontraditional Students Demonstration Program, the
requirements of subsection (a) or (b)(1) of section
481, except that no program shall be considered an
eligible program under section 481 unless the program--
``(i) offers at least 300 clock hours of
instruction, 8 semester hours, or 12 quarter
hours, offered during a minimum of 10 weeks;
and
``(ii) is articulated with a certificate or
degree program of not less than 1 year in
length.
``(3) Eligible applicants.--
``(A) Eligible institutions.--Except as provided in
subparagraph (B), an institution of higher education, a
system of institutions of higher education, or a
consortium of institutions of higher education shall be
eligible to participate in the demonstration program
authorized under this section only if the institution,
each institution of higher education in the system, or
each institution of higher education participating in the consortium,
respectively--
``(i) is eligible to participate in
programs under this title; and
``(ii) provides a program for which the
institution of higher education awards an
associate or bachelor's degree.
``(B) Prohibition.--An institution of higher
education described in section 102(a)(1)(C) shall not
be eligible to participate in the demonstration program
authorized under this section.
``(c) Application.--
``(1) In general.--Each institution, system, or consortium
desiring to participate in a demonstration program under this
section shall submit an application to the Secretary at such
time and in such manner as the Secretary may require. An
institution, system, or consortium may apply for a waiver of a
provision described in subsection (b)(2) (A) or (B), or both.
``(2) Contents.--Each such application shall include--
``(A) a description of programs that have
characteristics known to be effective for
nontraditional students, which will be carried out in
support of the waiver, including programs related to
student financial aid counseling, academic support
services, study skills courses, remedial courses,
English as a Second Language courses, individual
mentoring, skills assessment, addressing child care
needs, and creating flexible course schedules;
``(B) a description of the statutory and regulatory
requirements described in subsection (b)(2) for which a
waiver is sought and the reasons for which the waiver
is sought;
``(C) in the case of an institution, a system, or a
consortium applying for a waiver of a provision
described in subsection (b)(2)(A), a description of the
less than half-time students to whom such expanded
financial assistance will be offered;
``(D) in the case of an institution, a system, or a
consortium applying for a waiver of a provision
described in subsection (b)(2)(B), a description of the
programs with compressed, modular, or other alternative
schedules in which students in the demonstration
program will be enrolled;
``(E) an assurance that the institution, system, or
consortium will offer full cooperation with the ongoing
evaluations of the demonstration program provided for
in this section; and
``(F) such other information as the Secretary may
require.
``(d) Selection.--
``(1) In general.--For the first 2 years of the
demonstration program the Secretary is authorized to select for
participation in the program not more than an aggregate of 50
institutions of higher education, systems of institutions of
higher education, or consortia of institutions of higher
education. For the third year of the demonstration program
authorized under this section, not more than an aggregate of 70
institutions, systems, or consortia, may participate in the
demonstration program, if the Secretary determines that such
expansion is warranted based on the evaluations and oversight
conducted in accordance with subsections (f) and (g).
``(2) Considerations.--In selecting institutions, systems,
or consortia to participate in the demonstration program in the
first or succeeding years of the demonstration program, the
Secretary shall take into account--
``(A) the number and quality of applications
received;
``(B) the Department's capacity to oversee and
monitor the participation of each institution, system,
or consortium;
``(C) an institution's, system's, or consortium's--
``(i) financial responsibility;
``(ii) administrative capability;
``(iii) number of matriculated students
enrolled less than half-time, or program or
programs to be offered with compressed,
modular, or other alternative schedules; and
``(iv) ability to offer programs that have
characteristics known to be effective for
nontraditional students, including programs
that provide student financial aid counseling,
academic support services, study skills
courses, remedial courses, English as a Second
Language courses, individual mentoring, and
skills assessment, programs that address child
care needs, and programs that create flexible
course schedules; and
``(D) ensuring the participation of a diverse group
of institutions, systems, and consortia with respect to
size, mission, and geographic distribution.
``(e) Notification.--The Secretary shall make available to the
public and to the Committee on Health, Education, Labor, and Pensions
of the Senate and the Committee on Education and the Workforce of the
House of Representatives a list of institutions, systems, or consortia
selected to participate in the demonstration program authorized by this
section. Such notice shall include a listing of the specific statutory
and regulatory requirements waived for each institution, system, or
consortium and a description of the students served or the types of
alternative schedule courses offered.
``(f) Evaluations and Reports.--
``(1) Evaluations.--The Secretary shall evaluate the
demonstration program authorized under this section on an
annual basis. Such evaluations specifically shall review--
``(A) the extent to which each institution, system,
or consortium participating in the demonstration
program has met the goals set forth in its application
to the Secretary, including the measures of program
quality assurance;
``(B) the number and types of students
participating in the less than half-time demonstration
programs and in the alternative schedule programs,
including the progress of participating students toward
recognized certificates or degrees and the extent to
which participation in such programs increased;
``(C) issues related to student financial
assistance for less than half-time enrollment;
``(D) issues related to student financial
assistance for students in compressed, modular, or
other alternative schedule programs; and
``(E) the extent to which persistence or completion
increased or decreased for students in the
demonstration program as compared to a comparable group
of students.
``(2) Reports.--Not later than 30 months after the first
waiver is authorized under this section, the Secretary shall
report to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and the
Workforce of the House of Representatives with respect to--
``(A) the evaluations of the demonstration program
authorized under this section; and
``(B) any proposed statutory changes designed to
enhance persistence and completion for students.
``(g) Oversight.--In conducting the demonstration program
authorized under this section, the Secretary shall, on a continuing
basis--
``(1) ensure the compliance of institutions, systems, and
consortia participating in the demonstration program with the
requirements of this title (other than the sections and
regulations that are waived under subsection (b)(2)); and
``(2) provide technical assistance.''.
TITLE II--SUPPORT SERVICES
SEC. 201. STRENGTHENING INSTITUTIONS.
Section 311(c) of the Higher Education Act of 1965 (20 U.S.C.
1057(c)) is amended--
(1) by redesignating paragraph (12) as paragraph (13); and
(2) by inserting after paragraph (11) the following:
``(12) The introduction of reforms in remedial education,
including English language instruction, to customize remedial
courses to student goals and help students move rapidly from
remedial courses into core courses and through program
completion.''.
SEC. 202. GRANTS TO INCREASE COMPLETION BY IMPROVING REMEDIAL
EDUCATION.
Part A of title III of the Higher Education Act of 1965 (20 U.S.C.
1057 et seq.) is amended by adding at the end the following:
``SEC. 318. GRANTS TO INCREASE COMPLETION BY IMPROVING REMEDIAL
EDUCATION.
``(a) Authorization of Program.--From amounts appropriated under
subsection (k), the Secretary shall award grants, on a competitive
basis, to eligible institutions for the purposes of improving remedial
education, including English language instruction, to customize
remedial courses to student goals and help students move rapidly from
remedial courses into core program courses and through program
completion.
``(b) Definition of Eligible Institution.--In this section, the
term `eligible institution' means an institution of higher education
(as defined in section 101(a)) in which not less than 35 percent of the
institution's entering first-year students are enrolled in remedial
courses to improve reading, writing, or mathematics.
``(c) Application.--An eligible institution seeking a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and containing such information as the Secretary may
require.
``(d) Priority for Replication of Proven Practices.--The Secretary
shall give priority to applications that propose to replicate practices
that have proven effective with adults.
``(e) Peer Review.--The Secretary shall convene a peer review
process to review applications for grants under this section and to
make recommendations to the Secretary regarding the selection of
grantees.
``(f) Mandatory Activity.--An eligible institution that receives a
grant under this section shall use the grant funds to create bridge
programs that customize remedial adult education, English as a Second
Language, or remedial education curricula to the content of the
certificate or degree programs or clusters of programs in which
remedial education students enroll.
``(g) Permissible Activities.--An eligible institution that
receives a grant under this section may use the grant funds to carry
out the following:
``(1) Designing and implementing innovative ways to improve
retention in and completion of remedial education courses, such
as enrolling students in cohorts, providing counseling, and
giving small, material incentives for attendance and
performance.
``(2) Redesignating class schedules to meet the needs of
working adults, through modular, compressed, repeated, or other
alternative schedules.
``(3) Improving the quality of teaching in remedial courses
through professional development, reclassification of such
teaching positions, or other means the eligible institution
determines appropriate.
``(4) Any other activities the eligible institution and the
Secretary determine will promote retention of and completion by
students attending eligible institutions.
``(h) Grant Period.--Grants made under this section shall be for a
period of not less than 36 months and not more than 60 months.
``(i) Technical Assistance.--The Secretary shall enter into a
contract with a private entity to provide such technical assistance to
grantees under this section as the Secretary determines appropriate.
``(j) Evaluation.--The Secretary shall conduct an evaluation of
program impacts under the demonstration program, and shall disseminate
to the public the findings from the evaluation and information on best
practices. The Secretary is encouraged to partner with other funders,
such as private foundations, to allow for use of a random assignment
evaluation in at least one of the demonstration sites.
``(k) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $50,000,000 for fiscal year 2005
and each of the 5 succeeding fiscal years, of which an aggregate of not
more than 5 percent may be used to carry out subsections (i) and
(j).''.
SEC. 203. FEDERAL TRIO PROGRAMS.
Section 402A of the Higher Education Act of 1965 (20 U.S.C. 1070a-
11) is amended--
(1) in subsection (b)--
(A) in paragraph (3)--
(i) in subparagraph (A), by striking
``$170,000'' and inserting ``$190,000'';
(ii) in subparagraph (B), by striking
``$180,000'' and inserting ``$200,000''; and
(iii) in subparagraph (C), by striking
``$190,000'' and inserting ``$220,000''; and
(B) by adding at the end the following:
``(4) Increases.--
``(A) In general.--The amount of any funding
increase described in subparagraph (B) shall be used in
part to help first year students by assigning
counselors to the students so that there is consistency
and continuity in the academic and career advice the
students receive.
``(B) Funding increases.--The funding increase
referred to in subparagraph (A) is--
``(i) in the case of a program authorized
by section 402D, the amount by which the
individual grant exceeds $170,000; and
``(ii) in the case of a program authorized
by section 402F, the amount by which the
individual grant exceeds $180,000.''; and
(2) in subsection (f), by striking the first sentence and
inserting the following: ``For the purpose of making grants and
contracts under this chapter, there are authorized to be
appropriated $1,250,000,000 for fiscal year 2005 and such sums
as may be necessary for each of the 5 succeeding fiscal
years.''.
SEC. 204. STUDENT SUPPORT SERVICES.
Section 402D(b)(2) of the Higher Education Act of 1965 (20 U.S.C.
1070a-14(b)(2)) is amended to read as follows:
``(2) consistent, individualized personal, career, and
academic counseling provided by assigned counselors;''.
SEC. 205. EDUCATIONAL OPPORTUNITY CENTERS.
Section 402F(b)(6) of the Higher Education Act of 1965 (20 U.S.C.
1070a-16(b)(6)) is amended to read as follows:
``(6) consistent, individualized personal, career, and
academic counseling provided by an assigned counselor during
the admissions process that may be continued throughout
students' undergraduate enrollment;''.
SEC. 206. EARLY INTERVENTION AND COLLEGE AWARENESS PROGRAM.
Section 404A(b) of the Higher Education Act of 1965 (20 U.S.C.
1070a-21(b)) is amended--
(1) in paragraph (1), by inserting ``6 year'' after ``shall
make'';
(2) in paragraph (2), by amending subparagraph (B) to read
as follows:
``(B) ensure that students served under this
chapter on the day before the date of enactment of the
Nontraditional Student Success Act continue to receive
assistance through the completion of secondary school
and at least through the first year of attendance at a
postsecondary education institution.''; and
(3) by adding at the end the following:
``(3) Current grantees.--An eligible entity that has
received an award under this section, has performed
successfully, and still has need for an award may apply for an
additional award under this section.''.
SEC. 207. GEAR UP COHORT REQUIREMENT.
Section 404B(g)(1)(B) of the Higher Education Act of 1965 (20
U.S.C. 1070a-22(g)(1)(B)) is amended to read as follows:
``(B) ensure that the services are provided through
the 12th grade and through the first year of attendance
at a postsecondary education institution to students in
the participating grade level.''.
SEC. 208. EARLY INTERVENTION.
Section 404D of the Higher Education Act of 1965 (20 U.S.C. 1070a-
24) is amended--
(1) in subsection (b)(2)(A), by amending the matter
preceding clause (i) to read as follows:
``(A) Providing eligible students in preschool
through grade 12 and through the first year of
attendance at a postsecondary education institution
with a continuing system of mentoring and advising
that--''; and
(2) in subsection (c), by amending the matter preceding
paragraph (1) to read as follows:
``(c) Priority Students.--For eligible entities not using a cohort
approach, the eligible entity shall treat as priority students any
student in the preschool through grade 12 and through the first year of
attendance at a postsecondary education institution who is eligible--
''.
SEC. 209. AUTHORIZATION OF APPROPRIATIONS.
Section 404H of the Higher Education Act of 1965 (20 U.S.C. 1070a-
28) is amended by striking ``$200,000,000 for fiscal year 1999 and such
sums as may be necessary for each of the 4 succeeding fiscal years''
and inserting ``$500,000,000 for fiscal year 2005 and such sums as may
be necessary for each of the 5 succeeding fiscal years''.
SEC. 210. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL PROGRAM.
Section 419N(g) of the Higher Education Act of 1965 (20 U.S.C.
1070e(g)) is amended by striking ``$45,000,000 for fiscal year 1999''
and inserting ``$75,000,000 for fiscal year 2005''.
SEC. 211. INCREASED AWARENESS OF FINANCIAL AID AVAILABILITY.
Part G of title IV of the Higher Education Act of 1965 (20 U.S.C.
1088 et seq.) is amended by adding at the end the following:
``SEC. 493C. INCREASED AWARENESS OF FINANCIAL AID AVAILABILITY.
``The Secretary, in consultation with the Secretary of Commerce,
the Secretary of Health and Human Services, and the Secretary of Labor,
shall establish a website and brochures for providing outreach about
financial aid and education tax credits. The outreach shall target
employers, one-stop centers, Head Start centers, and other locations
the Secretary of Education determines appropriate.''.
SEC. 212. HISPANIC-SERVING INSTITUTIONS.
Section 503(b) of the Higher Education Act of 1965 (20 U.S.C.
1101b(b)) is amended--
(1) by redesignating paragraph (14) as paragraph (15); and
(2) by inserting after paragraph (13) the following:
``(14) The introduction of reforms in remedial education,
including English language instruction, to customize remedial
courses to student goals and help students move rapidly from
remedial courses into core courses and through program
completion.''.
SEC. 213. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.
Section 741(a) of the Higher Education Act of 1965 (20 U.S.C.
1138(a)) is amended--
(1) in paragraph (7), by striking ``and'' after the
semicolon;
(2) in paragraph (8), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(9) the introduction of reforms in remedial education,
including English language instruction, to customize remedial
courses to student goals and help students move rapidly from
remedial courses into core courses and through program
completion.''.
SEC. 214. AMENDMENTS TO SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES
ARE ENGAGED IN MIGRANT AND SEASONAL FARMWORK.
Section 418A of the Higher Education Act of 1965 (20 U.S.C. 1070d-
2) is amended--
(1) in subsection (b)(8), by inserting ``such as childcare
and transportation,'' after ``supportive services,''; and
(2) in subsection (h)--
(A) in paragraph (1), by striking ``$15,000,000 for
fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years'' and inserting
``$75,000,000 for fiscal year 2005 and such sums as may
be necessary for each of the 5 succeeding fiscal
years''; and
(B) in paragraph (2), by striking ``$5,000,000 for
fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years'' and inserting
``$75,000,000 for fiscal year 2005 and such sums as may
be necessary for each of the 5 succeeding fiscal
years''.
TITLE III--LIFETIME LEARNING CREDIT
SEC. 301. IMPROVEMENT OF LIFETIME LEARNING CREDIT.
(a) In General.--
(1) Increase in amount.--Section 25A(c)(1) of the Internal
Revenue Code of 1986 (relating to lifetime learning credit) is
amended--
(A) by striking ``20 percent'' and inserting ``50
percent'',
(B) by striking ``qualified tuition and related
expenses'' and inserting ``qualified higher education
expenses'', and
(C) by striking ``$10,000 ($5,000 in the case of
taxable years beginning before January 1, 2003)'' and
inserting ``$4,000''.
(2) Qualified higher education expenses.--Section 25A(f) of
such Code (relating to definitions) is amended by inserting at
the end the following new paragraph:
``(3) Qualified higher education expenses.--The term
`qualified higher education expenses' means, with respect to
any individual described in clause (i), (ii), or (iii) of
paragraph (1)(A)--
``(A) tuition, books, supplies, and equipment
required for the enrollment or attendance at an
eligible educational institution,
``(B) in the case of an individual with special
needs, expenses for special needs services which are
incurred in connection with such enrollment or
attendance,
``(C) expenses for child care which are incurred in
connection with such enrollment or attendance, and
``(D) expenses for food, shelter, and other living
expenses which are incurred during the period of such
enrollment or attendance.
With respect to expenses described in subparagraph (D), only
the first $250 of such expenses for any month shall be taken
into account.''.
(3) Conforming amendments.--Paragraphs (1), (2), (3), and
(4) of section 25A(g) of such Code are each amended by
inserting ``and qualified higher education expenses'' after
``qualified tuition and related expenses'' each place it
appears.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 302. REFUNDABILITY OF LIFETIME LEARNING CREDIT.
(a) Refundable Credit.--
(1) In general.--Section 25A of the Internal Revenue Code
of 1986 is amended by redesignating subsection (i) as
subsection (j) and by inserting after subsection (h) the
following new subsection:
``(i) Portion of Credit Refundable.--
``(1) In general.--The aggregate credits allowed to a
taxpayer under subpart C shall be increased by the amount of
the credit allowed under this section by reason of subsection
(a)(2) without regard to this subsection and the limitation
under section 26(a).
``(2) No double benefit.--The amount of the credit allowed
under this subsection shall not be treated as a credit allowed
under this subpart and shall reduce the amount of the credit
otherwise allowable under subsection (a) without regard to
section 26(a).''.
(2) Conforming amendment.--Paragraph (2) of section 1324(b)
of title 31, United States Code, is amended by inserting before
the period ``or from section 25A(i) of such Code''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 303. ADVANCE PAYMENT OF LIFETIME LEARNING CREDIT.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986
(relating to miscellaneous provisions) is amended by redesignating
section 7528 as section 7529 and inserting after section 7527 the
following new section:
``SEC. 7528. ADVANCE PAYMENT OF LIFETIME LEARNING CREDIT.
``(a) General Rule.--Not later than August 1, 2004, the Secretary
shall establish a program for making payments on behalf of certified
individuals to eligible educational institutions.
``(b) Limitation on Advance Payments During any Taxable Year.--The
Secretary may make payments under subsection (a) only to the extent
that the total amount of such payments made on behalf of any individual
during the taxable year does not exceed an amount equal to 50 percent
of so much of the qualified higher education expenses paid with respect
to such individual as does not exceed $4,000 for such year. For
purposes of this section, qualified higher education expenses taken
into account with respect to any individual shall be reduced--
``(1) by the amount of qualified tuition and related
expenses taken into account under section 25A(b) (if any), and
``(2) under rules similar to the rules under section
25A(g)(2).
``(c) Certified Individual.--For purposes of this section, the term
`certified individual' means any individual for whom a qualified
education costs credit eligibility certificate is in effect.
``(d) Qualified Education Costs Credit Eligibility Certificate.--
For purposes of this section, the term `qualified education costs
credit eligibility certificate' means a written statement that an
individual has incurred costs which are qualified higher education
expenses.
``(e) Other Definitions and Special Rules.--
``(1) Definitions.--Any term used in this section which is
also used in section 25A shall have the meaning given such term
in section 25A.
``(2) Rules.--Except as otherwise provided in this section,
payments made under subsection (a) shall be subject to rules
similar to the rules of section 25A.''.
(b) Coordination of Lifetime Learning Credit With Advanced
Payment.--Section 25A of the Internal Revenue Code of 1986, as amended
by section 2, is amended by redesignating subsection (j) as subsection
(k) and by inserting after subsection (i) the following new subsection:
``(j) Coordination With Advance Payment.--
``(1) Recapture of excess advance payments.--
``(A) In general.--If any payment is made to an
eligible educational institution on behalf of an
individual under section 7528 during any calendar year,
then the tax imposed by this chapter on the applicable
taxpayer for the last taxable year beginning in such
calendar year shall be increased by the aggregate
amount of such payments.
``(B) Applicable taxpayer.--For purposes of
subparagraph (A), the applicable taxpayer is--
``(i) such individual, or
``(ii) in the case a taxpayer who is
allowed a deduction with respect to such
individual under section 151(c), such taxpayer.
``(2) Reconciliation of payments advanced and credit
allowed.--Any increase in tax under paragraph (1) shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit (other than the credit
allowed by subsection (a)) allowable under this part and
subpart C.''.
(c) Disclosure of Return Information for Purposes of Carrying Out a
Program for Advance Payment of Lifetime Learning Credit.--
(1) In general.--Subsection (l) of section 6103 of the
Internal Revenue Code of 1986 (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(21) Disclosure of return information for purposes of
carrying out a program for advance payment of lifetime learning
credit.--The Secretary may disclose to educational institutions
for any certified individual (as defined in section 7528(c))
return information with respect to such certified individual
only to the extent necessary to carry out the program
established by section 7528 (relating to advance payment of
Lifetime Learning credit).''.
(2) Procedures and recordkeeping related to disclosures.--
Subsection (p) of such section is amended--
(A) in paragraph (3)(A) by striking ``or (18)'' and
inserting ``(18), or (21)'', and
(B) in paragraph (4) by striking ``or (20)'' and
inserting ``(20), or (21)'' each place it appears.
(3) Unauthorized inspection of returns or return
information.--Section 7213A(a)(1)(B) of such Code is amended by
striking ``(l)(18) or (n)'' and inserting ``(l)(18), (l)(19),
or (n)''.
(d) Information Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 (relating to
information concerning transactions with other persons) is
amended by inserting after section 6050S the following new
section:
``SEC. 6050T. RETURNS RELATING TO LIFETIME LEARNING CREDIT.
``(a) Requirement of Reporting.--Every person who is entitled to
receive payments for any month of any calendar year under section 7528
(relating to advance payment of Lifetime Learning credit) with respect
to any certified individual (as defined in section 7528(c)) shall, at
such time as the Secretary may prescribe, make the return described in
subsection (b) with respect to each such individual.
``(b) Form and Manner of Returns.--A return is described in this
subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name, address, and TIN of each individual
referred to in subsection (a),
``(B) the amount entitled to be received for each
year with respect to such individual under section
7528, and
``(C) such other information as the Secretary may
prescribe.
``(c) Statements To Be Furnished to Individuals With Respect to
Whom Information Is Required.--Every person required to make a return
under subsection (a) shall furnish to each individual whose name is
required to be set forth in such return a written statement showing--
``(1) the name and address of the person required to make
such return and the phone number of the information contact for
such person, and
``(2) the information required to be shown on the return
with respect to such individual.
The written statement required under the preceding sentence shall be
furnished on or before January 31 of the year following the calendar
year for which the return under subsection (a) is required to be
made.''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) of such
Code (relating to definitions) is amended by
redesignating clauses (xii) through (xviii) as clauses
(xiii) through (xiv), respectively, and by inserting
after clause (xi) the following new clause:
``(xii) section 6050U (relating to returns
relating to Lifetime Learning credit),''.
(B) Paragraph (2) of section 6724(d) of such Code
is amended by striking ``or'' at the end of
subparagraph (AA), by striking the period at the end of
subparagraph (BB) and inserting ``, or'', and by adding
after subparagraph (BB) the following new subparagraph:
``(CC) section 6050U (relating to returns relating
to Lifetime Learning credit).''.
(e) Clerical Amendments.--
(1) Advance payment.--The table of sections for chapter 77
of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``Sec. 7528. Advance payment of Lifetime
Learning credit.''.
(2) Information reporting.--The table of sections for
subpart B of part III of subchapter A of chapter 61 of such
Code is amended by inserting after the item relating to section
6050S the following new item:
``Sec. 6050T. Returns relating to
Lifetime Learning credit.''.
(f) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S4694-4695)
Read twice and referred to the Committee on Finance.
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