,,ii #aafth ,,congress #ast ,session ,s4 #fgb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #f1 #bjai ,mr4 ,schatz 7for himself1 ,mr4 ,brown1 ,ms4 ,harris1 ,mr4 ,booker1 ,mr4 ,merkley1 ,mr4 ,blumenthal1 ,mrs4 ,gillibrand1 ,mr4 ,durbin1 ,ms4 ,baldwin1 and ,ms4 ,warren7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to establish ,state-,federal partnerships to provide students the opportunity to attain higher education at in-,state public institutions of higher education without debt1 to provide ,federal ,pell ,grant eligibility to ,d,r,e,a,mer students1 to repeal suspension of eligibility under the ,higher ,education ,act of #aife for drug-related offenses1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,debt-,free ,college ,act of #bjai4 #b4 ,debt-free college partnership ,title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj et seq47 is amended by adding at the end the following3 ,j ,debt-,free ,college ,partnership #dii;,a-#a4 ,purpose ,the purpose of this part is to establish ,state-,federal partnerships that will-- 7#a7 increase investment in public higher education2 and 7#b7 provide students the opportunity to attain higher education at in-,state public institutions of higher education without debt 7debt-free college74 #dii;,a-#b4 ,definitions ,in this part3 7#a7 ,college completion program ,the term college completion program means a program or service at an institution of higher education that is dedicated to addressing barriers to degree attainment1 particularly for low-income students1 for the purpose of increasing the percentage of students completing programs of study in their entirety and attaining related degrees4 7#b7 ,cost of attendance ,the term cost of attendance means-- 7,a7 tuition and fees normally assessed a student carrying the same academic workload as determined by the institution1 and including costs for rental or purchase of any equipment1 materials1 or supplies required of all students in the same course of study2 7,b7 an allowance for books1 supplies1 transportation1 and miscellaneous personal expenses1 including a reasonable allowance for the documented rental or purchase of a personal computer1 for a student attending the institution on at least a half-time basis1 as determined by the institution2 and 7,c7 an allowance 7determined by the institution7 for room and board costs incurred by the student which-- 7i7 shall be an allowance determined by the institution for a student without dependents residing at home with parents2 7ii7 for students without dependents residing in institutionally owned or operated housing1 shall be a standard allowance determined by the institution based on the amount normally assessed most of its residents for room and board2 7iii7 for students who live in housing located on a military base or for which a basic allowance is provided under section #djc7;b7 of title #cg1 ,united ,states ,code1 shall be an allowance based on the expenses reasonably incurred by such students for board but not for room2 and 7iv7 for all other students shall be an allowance based on the expenses reasonably incurred by such students for room and board4 7#c7 ,debt-free college commitment ,the term debt-free college commitment means a commitment by a ,state participating in the ,state-,federal partnership under this part to cover the unmet financial need for all eligible students4 7#d7 ,eligible student ,the term eligible student means an individual who-- 7,a7 is enrolled1 or is eligible to enroll1 in a public institution of higher education in the ,state in which the individual resides2 7,b7 completes a ,free ,application for ,federal ,student ,aid2 and 7,c7 demonstrates satisfactory academic progress1 as defined under the ,federal ,pell ,grant program under subpart #a of part ,a1 once enrolled in a public institution of higher education in the ,state in which the individual resides4 7#e7 ,full-time equivalent students ,the term full-time equivalent students means the sum of the number of students enrolled full time at an institution1 plus the full-time equivalent of the number of students enrolled part time1 which shall be defined and calculated in the manner determined most appropriate by the ,secretary4 7#f7 ,net ,state operating support ,the term net ,state operating support means an amount that is equal to the amount of ,state funds and local government appropriations used to support public higher education annual operating expenses in the ,state1 calculated in accordance with subparagraphs 7,a7 and 7,b74 7,a7 ,calculation ,a ,state's net ,state operating support shall1 for a fiscal year1 be an amount that is equal to the difference resulting from the gross amount of ,state funds appropriated and disbursed by the ,state and expended by the recipient institutions in the fiscal year for public higher education operating expenses in the ,state1 minus-- 7i7 such appropriations that are returned to the ,state2 7ii7 ,state-appropriated funds derived from ,federal sources1 including funds provided under this part2 7iii7 local government funds not appropriated for operating support for public higher education2 7iv7 amounts that are portions of multi-year appropriations to be distributed over multiple years that are not to be spent for the year for which the calculation is being made2 7v7 tuition charges remitted to the ,state to offset ,state appropriations2 7vi7 ,state funding for students in non-credit continuing or adult education courses and non-credit extension courses2 7vii7 sums appropriated to private nonprofit institutions of higher education1 or to proprietary institutions of higher education1 for capital outlay or operating expenses2 and 7viii7 any other funds excluded under subparagraph 7,b74 7,b7 ,exclusions ,net ,state operating support does not include-- 7i7 funds for-- 7,i7 student aid programs that provide grants to students attending in-,state private nonprofit institutions of higher education1 in-,state proprietary institutions of higher education1 independent institutions1 and out-of-,state institutions2 7,,ii7 capital outlay2 7,,iii7 deferred maintenance2 or 7,,iv7 research and development2 or 7ii7 any other funds that the ,secretary may exclude4 7#g7 ,net ,state operating support per ,,fte student ,the term net ,state operating support per ,,fte student means1 for a fiscal year-- 7,a7 the net ,state operating support for the previous fiscal year2 divided by 7,b7 the full-time equivalent students for the previous fiscal year4 7#h7 ,partnership ,office ,the term ,partnership ,office means the ,office created under section #dii;,a-#d7;a74 7#i7 ,public institution of higher education ,the term public institution of higher education means an educational institution in any ,state that-- 7,a7 admits as regular students only persons having a certificate of graduation from a school providing secondary education1 or the recognized equivalent of such a certificate1 or persons who are eligible students2 7,b7 is legally authorized within such ,state to provide a program of education beyond secondary education2 7,c7 provides an educational program for which the institution awards a bachelor's degree or provides not less than a #b-year program that is acceptable for full credit toward such a degree1 or awards a degree that is acceptable for admission to a graduate or professional degree program1 subject to review and approval by the ,secretary2 7,d7 has the full faith and credit of the ,state2 and 7,e7 is accredited by a nationally recognized accrediting agency or association1 or if not so accredited1 is an 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 status1 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 time4 7#aj7 ,relevant committees of congress ,the term relevant committees of ,congress means the ,committee on ,health1 ,education1 ,labor1 and ,pensions and the ,committee on ,appropriations of the ,senate and the ,committee on ,education and ,labor and the ,committee on ,appropriations of the ,house of ,representatives4 7#aa7 ,unmet need ,the term unmet need means the difference between a student's cost of attendance to attend an in-,state public institution of higher education and the student's expected family contribution plus any ,federal1 ,state1 or local sources of grant aid4 #dii;,a-#c4 ,establishment of a ,state-,federal partnership grant program 7a7 ,grants authorized ,the ,secretary shall award grants to ,states to establish ,state-,federal partnerships with a goal of providing debt-free college for all eligible students at in-,state public institutions of higher education4 7b7 ,application ,a ,state that desires to participate in the ,state-,federal partnership under this part shall submit an application to the ,secretary at such time1 in such manner1 and accompanied by such information as the ,secretary may require4 7c7 ,amount of grants 7#a7 ,in general ,the ,secretary shall award a grant to a ,state that submits an application under subsection 7b7 for a fiscal year in an amount that is equal to ,state's net ,state operating support4 7#b7 ,ratable reduction ,if the amount appropriated to carry out this part for a fiscal year is insufficient to award each ,state the ,state's full grant amount pursuant to paragraph 7#a71 the ,secretary shall establish procedures for ratably reducing each ,state's award amount for such fiscal year4 7d7 ,amounts not expended ,any amount of a grant awarded under this part that is not expended on allowable expenditures by the end of the fiscal year for which the grant was awarded shall be applied to the following year's grant award amount1 if the ,state remains eligible to receive a grant under this part for such following year4 ,if such ,state is not eligible to receive a grant under this part for such following year1 the ,state shall return the unexpended balance amount to the ,federal ,government4 #dii;,a-#d4 ,state-,federal partnership responsibilities 7a7 ,federal 7#a7 ,in general ,the ,secretary shall create an office in the ,department of ,education to administer the ,state-,federal partnerships established under this part4 ,such ,partnership ,office shall be responsible for-- 7,a7 administering grant awards2 7,b7 monitoring compliance with partnership requirements2 7,c7 providing technical assistance to ,states in applying for participation in1 and implementing1 a partnership2 and 7,d7 providing information to students in participating ,states4 7#b7 ,evaluations ,the ,partnership ,office shall develop metrics of evaluation and perform an annual evaluation of each ,state participating in a ,state-,federal partnership under this part4 ,the evaluation shall assess the ,state's success in meeting the partnership's goals1 including-- 7,a7 providing debt-free college for all eligible students2 7,b7 increasing ,state investment in higher education2 7,c7 maintaining access to in-,state public institutions of higher education for low-income and underserved students2 7,d7 maintaining and improving rates of college completion and academic quality2 7,e7 maintaining or reducing the cost of public higher education and the price charged to students2 and 7,f7 investing in improving capacity1 access1 quality1 and student achievement of in-,state public institutions of higher education4 7#c7 ,annual report ,the ,partnership ,office shall submit an annual report to the relevant committees of ,congress and include information gained from the annual evaluation under paragraph 7#b74 7#d7 ,website ,the ,partnership ,office shall create a public1 consumer-oriented website with information about ,state-,federal partnerships established under this part1 including information from the annual evaluation under paragraph 7#b74 7b7 ,state 7#a7 ,in general ,a ,state that receives a grant under this part to establish a ,state-,federal partnership shall-- 7,a7 distribute the grant funds according to the allowable uses of funds described in section #dii;,a-#e in a manner designed to best achieve the partnership's goal of providing debt-free college for all eligible students at in-,state public institutions of higher education2 7,b7 maintain access at each in-,state public institution of higher education for low-income and underserved students2 7,c7 cap tuition and fees at public institutions of higher education in the ,state at levels as of the date of enactment of the ,debt-,free ,college ,act of #bjai1 with a yearly increase allowed based on the ,consumer ,price ,index 7as determined by the ,secretary72 7,d7 commit to working with in-,state public institutions of higher education to reduce tuition and fees as the net ,state operating support increases2 7,e7 maintain ,state need-based financial aid programs in effect on the date of enactment of the ,debt-,free ,college ,act of #bjai or use ,state funds for such programs to further the debt-free commitment made under the ,state-,federal partnership2 7,f7 maintain or increase levels of net ,state operating support in effect on the date of enactment of the ,debt-,free ,college ,act of #bjai1 subject to the maintenance of effort provisions contained in this part2 7,g7 develop1 adopt1 and implement a ,state formula for calculating the cost of attendance at in-,state public institutions of higher education2 7,h7 develop statewide credit transfer policies to-- 7i7 facilitate credit transfers among in-,state public institutions of higher education2 and 7ii7 provide students with clear and timely information about credit transfer policies at in-,state public institutions of higher education2 and 7,i7 clearly communicate to prospective students1 their families1 and the general public how the ,state plans to implement the ,state-,federal partnership and how eligible students can attend a public institution of higher education in the ,state without debt1 including early notification for students of their eligibility for financial aid under the partnership4 7#b7 #e-year plan 7,a7 ,in general ,in order to receive a grant under this part1 a ,state shall provide to the ,secretary a #e-year plan for achieving the goals of the ,state-,federal partnership4 ,a ,state shall update and resubmit a plan every #e years thereafter4 7,b7 ,plan to meet goals ,the #e-year plan shall detail how the ,state plans to meet the goal of providing debt-free college for all eligible students at in-,state public institutions of higher education within #e years and increase the ,state's investment in higher education1 with specific benchmarks detailed for each year4 7,c7 ,approved by the secretary ,the #e-year plan1 and the ,state's annual progress1 shall be approved by the ,secretary in order for the ,state to be eligible to receive1 or continue receiving1 grant funds under the ,state-,federal ,partnership award4 7,d7 ,waiver of #e-year deadline ,a ,state may apply for a waiver from the deadline of meeting all of the ,state-,federal partnership's goals within #e years if the ,state-- 7i7 provides a credible plan for making progress towards the goals2 and 7ii7 is able to demonstrate that the ,state will1 at a minimum1 provide debt-free college within #e years to eligible students who are ,federal ,pell ,grant recipients under subpart #a of part ,a4 7#c7 ,no additional eligibility requirements ,a ,state that receives a grant under this part to establish a ,state-,federal partnership may not impose additional eligibility requirements on students other than those contained in this part4 #dii;,a-#e4 ,uses of funds 7a7 ,in general 7#a7 ,need-based aid for pell recipients ,a ,state that receives a grant under this part to establish a ,state-,federal partnership shall disburse funds from the net ,state operating support and the partnership grant funds on the basis of need1 as determined by the ,free ,application for ,federal ,student ,aid1 to cover the unmet need for each eligible student who receives a ,federal ,pell ,grant under subpart #a of part ,a4 7#b7 ,disbursement of remaining funds ,any funds that remain after a ,state disburses funds in accordance with paragraph 7#a7 shall be used by the ,state to cover part or all of the unmet need for eligible students who do not receive a ,federal ,pell ,grant under subpart #a of part ,a1 with priority based on student financial need1 in a manner determined by the ,state4 7#c7 ,no funds in excess of cost of attendance ,an eligible student shall not receive funds under this part in excess of the student's actual cost of attendance4 7#d7 ,private aid not taken into account ,in disbursing funds under this paragraph1 the ,state shall not take into account any private sources of aid or loans available to an eligible student4 7b7 ,college completion programs 7#a7 ,in general ,a ,state that receives a grant under this part for a fiscal year to establish a ,state-,federal partnership shall use #d percent of the grant funds for such fiscal year to establish or increase funding for college completion programs4 7#b7 ,distribution ,from the total amount of grant funds available under paragraph 7#a7 for a fiscal year1 the ,state shall provide to each public institution of higher education in the ,state that is eligible to participate in programs under this title for such fiscal year an amount that bears the same relation to such total amount as the number of students enrolled in such institution of higher education who are eligible to receive a ,federal ,pell ,grant bears to the number of students enrolled in all public institutions of higher education in the ,state who are eligible to receive a ,federal ,pell ,grant4 7#c7 ,allowable uses ,an institution of higher education that receives funds under paragraph 7#b7 shall use such funds to establish1 implement1 or expand a college completion program1 including for the following purposes3 7,a7 ,providing information to prospective and current students to assist and improve completion1 including creating materials clarifying different program completion requirements and costs1 holding seminars for prospective or current students on course schedules and program costs1 and updating school websites to make information publically available4 7,b7 ,hiring additional counselors and advisors to focus on student completion support and training existing personnel to implement the college completion program4 7,c7 ,increasing academic support programs1 such as writing coaches1 tutors1 prerequisite skill courses1 and study materials1 and enhancing academic facilities for students4 7,d7 ,providing microgrants for students participating in the college completion program who maintain good academic standing and progress toward on-time graduation4 7#d7 ,reporting 7,a7 ,reports from institutions ,an institution of higher education that receives funds under paragraph 7#b7 shall submit to the ,state in which the institution is located at the end of each fiscal year a report that details the uses of funds1 changes in the ratios of students to counselors1 and #b-year and #d-year degree attainment rates1 disaggregated by race and ,federal ,pell ,grant recipient status4 7,b7 ,suspension ,if a ,state determines that an institution of higher education that receives funds under paragraph 7#b7 for a fiscal year used such funds for activities that were not allowable uses under paragraph 7#c71 the ,state may suspend distribution of funds to the institution for the following fiscal year and require the institution to submit proposed expenditures for approval before receiving funds again under paragraph 7#b74 7,c7 ,report from state ,a ,state that receives a grant under this part for a fiscal year to establish a ,state-,federal partnership shall submit to the ,secretary at the end of each fiscal year a report that details the uses of grant funds under this subsection in public institutions of higher education in the ,state that are eligible to participate in programs under this title1 changes in the ratio of students to counselors in such institutions in the ,state1 and #b-year and #d-year degree attainment rates in such institutions in the ,state1 disaggregated by race and ,federal ,pell ,grant recipient status4 7c7 ,higher education related activities ,a ,state that receives a grant under this part to establish a ,state-,federal partnership may use not more than #e percent of the grant funds for the following higher education related activities3 7#a7 ,increasing the capacity within the public higher education system of the ,state1 including through the following3 7,a7 ,construction of new facilities4 7,b7 ,renovation of existing facilities4 7,c7 ,hiring of faculty4 7,d7 ,student support services4 7#b7 ,increasing the enrollment of low-income and underserved students4 7#c7 ,improving student outcomes1 including meeting student learning goals1 increasing completion rates1 and improving post-graduate job placement1 in consultation with faculty and staff at in-,state public institutions of higher education4 7#d7 ,providing information to prospective students and families4 7#e7 ,developing new higher education programs to meet the ,state's workforce needs1 in consultation with faculty and staff at in-,state public institutions of higher education1 employers1 and other relevant stakeholders4 7#f7 ,programs and student support services at public secondary schools if those programs and services directly support an activity described in any of paragraphs 7#a7 through 7#e74 7#g7 ,other activities as approved by the ,secretary to improve the ,state's public higher education system1 particularly for low-income and underserved students4 7d7 ,administration and other uses ,a ,state that receives a grant under this part to establish a ,state-,federal partnership may use not more than #a percent of the grant funds-- 7#a7 to administer the partnership2 and 7#b7 for-- 7,a7 higher education research and data tools1 such as those that link education and employment data systems2 7,b7 forming agreements with other ,states participating in the partnership for reciprocal student eligibility2 and 7,c7 developing and implementing systems to provide early notification to students and families of their eligibility for financial aid4 7e7 ,prohibition on use of funds ,a ,state that receives a grant under this part to establish a ,state-,federal partnership may not use grant funds for-- 7#a7 endowments2 or 7#b7 the construction of athletic or commercial venues4 #dii;,a-#f4 ,maintaining net ,state operating support for higher education 7a7 ,in general ,a ,state that receives a grant under this part to establish a ,state-,federal partnership shall maintain net ,state operating support for a fiscal year at a level that is not less than the level that is equal to the average of such net ,state operating support for the #c fiscal years preceding such fiscal year4 7b7 ,waivers 7#a7 ,in general ,the ,secretary may grant a waiver to a ,state from the requirement under subsection 7a7 for a fiscal year1 if the ,state demonstrates that-- 7,a7 the net ,state operating support for such fiscal year as a percentage of total revenue available to the ,state that will fund higher education for such fiscal year is not less than such percentage for the previous fiscal year2 and 7,b7 unexpected or uncontrollable circumstances prevent the ,state from maintaining such ,state support4 7#b7 ,no reduction for subsequent fiscal year ,if the ,secretary grants a ,state a waiver under paragraph 7#a7 for a fiscal year1 a determination of the required level of net ,state operating support for subsequent fiscal years shall exclude the fiscal year for which the waiver was granted4 #dii;,a-#g4 ,oversight 7a7 ,in general ,if a ,state that receives a grant under this part to establish a ,state-,federal partnership breaches a term of the partnership1 the ,partnership ,office shall notify the ,state and provide the ,state an opportunity to correct the record or cure the breach within #cj days of the notification4 7b7 ,recommendation ,based on the ,state's response to a notification under subsection 7a71 the ,partnership ,office shall recommend that the ,secretary-- 7#a7 take no action2 7#b7 place the ,state on probation2 or 7#c7 deem the ,state ineligible to continue to participate in the partnership4 7c7 ,implementation 7#a7 ,in general ,except as provided in paragraph 7#b71 the ,secretary shall implement the recommendation of the ,partnership ,office under subsection 7b74 7#b7 ,exception 7,a7 ,in general ,subject to subparagraph 7,b71 the ,secretary may choose not to implement the recommendation of the ,partnership ,office under subsection 7b74 7,b7 ,reasons and report ,if the ,secretary chooses not to implement the recommendation of the ,partnership ,office under subsection 7b71 the ,secretary shall-- 7i7 provide an explanation for such decision2 and 7ii7 notify the relevant committees of ,congress in a report4 7d7 ,probation 7#a7 ,in general ,if a ,state is placed on probation by the ,secretary due to a breach of a term of the partnership1 the ,state shall develop a plan to remedy the breach4 7#b7 ,withholding ,with respect to a ,state that is placed on probation by the ,secretary due to a breach of a term of the partnership1 the ,secretary shall withhold half of the ,state's partnership grant award until the breach has been remedied or the ,state has demonstrated credible progress towards remedying the breach4 7e7 ,ineligibility 7#a7 ,in general ,if a ,state is deemed ineligible to continue to participate in a partnership due to a breach of a term of the partnership1 the ,state shall not receive its partnership grant award for the subsequent year4 7#b7 ,remaining ineligible ,a ,state that is deemed ineligible to continue to participate in a partnership due to a breach of a term of the partnership1 shall remain ineligible for participation until the ,state has demonstrated that the ,state meets the partnership's requirements4 #dii;,a-#h4 ,state withdrawal or ineligibility 7a7 ,in general ,if a ,state that receives a grant under this part to establish a ,state-,federal partnership intends to withdraw from the partnership or becomes ineligible to continue participation under this part1 the ,state shall comply with the requirements of this section1 including1 if the ,state intends to withdraw1 notifying the ,secretary and the ,partnership ,office #fj days prior to the withdrawal4 7b7 ,continued coverage 7#a7 ,in general ,any unexpended balance from a ,state-,federal partnership grant award that remains after a ,state notifies the ,partnership ,office of the ,state intention to withdraw from the partnership or becomes ineligible to continue participation under this part shall be placed into an escrow account at the ,department and used solely to provide need-based grant aid to an eligible student who has received a ,federal ,pell ,grant under subpart #a of part ,a and who was enrolled before the ,state notified the ,partnership ,office of the ,state's intention to withdraw from the partnership or the ,state became ineligible4 7#b7 ,coverage until students finish program 7,a7 ,in general ,a ,state that withdraws from a ,state-,federal partnership or becomes ineligible to continue participation under this part shall continue to cover the unmet need for each eligible student who received a ,federal ,pell ,grant under subpart #a of part ,a and who was enrolled before the ,state notified the ,partnership ,office of the ,state's intention to withdraw from the partnership or became ineligible until each such student completes the student's program of study at the institution or until the allotted time for completion of such program of study expires4 7,b7 ,priority ,in carrying out subparagraph 7,a71 a ,state shall prioritize funding based on students' financial need4 7#c7 ,communication of information ,a ,state that withdraws from a ,state-,federal partnership or becomes ineligible to continue participation under this part shall communicate its withdrawal or ineligibility1 as appropriate1 to students and families in the ,state and provide clear information to eligible students described in paragraph 7#b77;,a7 that the students may continue to have their cost of attendance at an in-,state public institution of higher education covered4 #dii;,a-#i4 ,authorization of appropriations 7a7 ,in general ,there are authorized to be appropriated to carry out this part-- 7#a7 #hd1jjj1jjj1jjj for fiscal year #bjbj2 and 7#b7 such sums as may be necessary for each fiscal years #bjba through #bjcj4 7b7 ,availability ,funds made available under subsection 7a7 shall be available for obligation through ,september #cj of the fiscal year succeeding the fiscal year for which such sums were appropriated4 4 #c4 ,debt-free college grant program for ,h,b,c,us and ,m,s,is ,part ,f of title ,,iii of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajfgq et seq47 is amended by adding at the end the following3 #cgb4 ,debt-free college grant program for ,h,b,c,us and ,m,s,is 7a7 ,definition of eligible institution 7#a7 ,in general ,in this section1 except as provided in paragraph 7#b71 the term eligible institution means an institution of higher education that is-- 7,a7 a private1 nonprofit #b-year or #d-year part ,b institution 7as defined in section #cbb72 7,b7 a ,tribal ,college or ,university 7as defined in section #caf72 or 7,c7 a private1 nonprofit #b-year or #d-year institution-- 7i7 that is-- 7,i7 a ,hispanic-serving institution 7as defined in section #ejb72 7,,ii7 an ,alaska ,native-serving institution 7as defined in section #cag7;b772 7,,iii7 a ,native ,hawaiian-serving institution 7as defined in section #cag7;b772 7,,iv7 a ,predominantly ,black ,institution 7as defined in section #cah72 7,v7 an ,asian ,american and ,native ,american ,pacific ,islander-serving institution 7as defined in section #cbj7;b772 or 7,,vi7 a ,native ,american-serving1 nontribal institution 7as defined in section #cai72 and 7ii7 in which not less than #ce percent of the students enrolled at the institution are eligible to receive a ,federal ,pell ,grant4 7#b7 ,for-profit institution that converted to a nonprofit institution ,notwithstanding paragraph 7#a71 an institution of higher education is not an eligible institution if the institution was a for-profit institution of higher education that converted to a nonprofit institution of higher education and less than #be years have passed since the date of such conversion4 7b7 ,grant program authorized 7#a7 ,in general ,the ,secretary shall award grants to eligible institutions to enable the institutions to provide need-based financial aid to cover unmet need for students enrolled at the institutions4 7#b7 ,duration ,grants awarded under this section shall be for a period of #e years4 7c7 ,application ,an eligible institution that desires a grant under this section shall submit an application to the ,secretary at such time1 in such manner1 and accompanied by such information as the ,secretary may require1 including a plan detailing how-- 7#a7 the eligible institution will use grant funds to provide debt-free college to the students enrolled at the institution2 and 7#b7 the institution plans to meet the requirements of the grant program4 7d7 ,awarding of grants 7#a7 ,in general 7,a7 ,in general ,a grant amount awarded to an eligible institution under this section for a year-- 7i7 shall be in an amount equal to the amount of the institution's expenditures on student undergraduate instruction and academic support for the year2 and 7ii7 shall not be disbursed for the year until the ,partnership ,office created under section #dii;,a-#d7;a7 reviews and approves the annual update submitted by the institution pursuant to subsection 7f74 7,b7 ,ratable reduction ,if the amount appropriated to carry out this section for a fiscal year is insufficient to award each eligible institution the institution's full grant amount pursuant to subparagraph 7,a71 the ,secretary shall establish procedures for ratably reducing each institution's award amount for such fiscal year4 7#b7 ,waivers 7,a7 ,in general ,subject to subparagraph 7,b71 if the percentage of students eligible to receive a ,federal ,pell ,grant who are enrolled at an eligible institution that receives a grant under this section decreases to less than #ce percent after the first year of the grant award1 such institution may apply to the ,secretary for a waiver of the requirement that an institution to be eligible to receive a grant under this section have not less than #ce percent of the students enrolled at the institution eligible to receive a ,federal ,pell ,grant4 7,b7 ,restrictions on waiver ,the ,secretary shall grant a waiver under subparagraph 7,a7-- 7i7 only if the decrease in percentage is-- 7,i7 small relative to the size of the student body2 or 7,,ii7 the result of unexpected or uncontrollable circumstances2 and 7ii7 not more than #b times during the #e-year grant period4 7e7 ,use of grant funds 7#a7 ,in general ,an eligible institution that receives a grant under this section shall use the grant funds as follows3 7,a7 ,ninety-five percent of the grant funds shall be-- 7i7 used to cover the unmet need for financial assistance to attend the institution of students who have not yet earned a bachelor's degree2 and 7ii7 disbursed according to financial need4 7,b7 ,five percent of the grant funds shall be used for the following activities3 7i7 ,increasing capacity through construction or renovation of facilities4 7ii7 ,hiring faculty4 7iii7 ,student support services4 7iv7 ,other activities to increase enrollment of low-income and underserved students1 improve student outcomes1 and provide information to prospective students and families1 and other activities as approved by the ,secretary to improve access1 affordability1 or quality of the education provided by the institution4 7#b7 ,prohibition on use of funds ,an eligible institution that receives a grant under this section may not use grant funds for endowments or the construction of athletic or commercial venues4 7f7 ,annual update ,an eligible institution that receives a grant under this section shall submit to the ,secretary an annual update-- 7#a7 with any changes to the institution's expenditures on student instruction and academic support2 and 7#b7 on how the institution is fulfilling the terms of the grant4 7g7 ,terms of the grant 7#a7 ,grantee commitment ,an eligible institution that receives a grant under this section shall carry out the following3 7,a7 ,cap tuition and fees at the institution at the level as of the date of enactment of the ,debt-,free ,college ,act of #bjai1 with a yearly increase allowed based on the ,consumer ,price ,index 7as determined by the ,secretary74 7,b7 ,maintain expenditures on instruction and academic support at the institution at a level that is not less than the average of such expenditures at the institution over the period of #c years preceding the date of enactment of the ,debt-,free ,college ,act of #bjai4 7,c7 ,maintain the enrollment of low-income students1 as defined by the ,secretary1 at the institution at a level that is not less than the level of such enrollment as of the date of enactment of the ,debt-,free ,college ,act of #bjai4 7,d7 ,maintain institutional aid at a level that is not less than the average of such aid over the period of #c years preceding the date of enactment of the ,debt-,free ,college ,act of #bjai4 7,e7 ,submit to the ,secretary for approval the institution's calculation of the cost of attendance at such institution4 7,f7 ,clearly communicate to prospective students and their families the following3 7i7 ,how students can attend the institution without debt4 7ii7 ,that a debt-free college education provided pursuant to this section is conditioned upon institutional eligibility and participation under this section and may not apply for each year that the student is enrolled at the institution4 7#b7 ,breach of terms of grant 7,a7 ,in general ,if an eligible institution that receives a grant under this section breaches a term of the grant1 the ,partnership ,office created under section #dii;,a-#d7;a7 shall notify the institution and provide the institution with an opportunity to correct the record or cure the breach not later than #cj days after the date of the notification4 7,b7 ,recommendation ,the ,partnership ,office created under section #dii;,a-#d7;a7 shall1 after considering the eligible institution's response to a notification under subparagraph 7,a7 or lack of response1 make a recommendation to the ,secretary that the ,secretary-- 7i7 take no action with respect to the eligible institution2 7ii7 place the eligible institution on probation2 or 7iii7 revoke the eligible institution's eligibility for the grant program under this section4 7,c7 ,probation ,an eligible institution that is placed on probation by the ,secretary shall develop a plan to remedy the breach of the term of the grant4 ,if the eligible institution does not remedy the breach1 the ,secretary may levy a fine against the institution of an amount not to exceed #a percent of the annual grant amount4 7,d7 ,ineligibility ,if an eligible institution's eligibility for the grant program under this section has been revoked by the ,secretary1 such institution shall-- 7i7 place into escrow any unexpended grant funds described in subsection 7e77#a77;,a7 to be disbursed directly to students enrolled at the institution2 7ii7 return to the ,secretary any unexpended funds described in subsection 7e77#a77;,b72 7iii7 remain ineligible to receive a grant under this section during the #c-year period after the date eligibility was revoked2 and 7iv7 notify prospective and enrolled students at the institution and their families of such ineligibility for participation in the grant program under this section4 7h7 ,withdrawal ,an eligible institution that receives a grant under this section that intends to withdraw from the grant program under this section shall-- 7#a7 notify the ,partnership ,office created under section #dii;,a-#d7;a7 not less than #fj days prior to the withdrawal2 7#b7 place into escrow any unexpended grant funds to be disbursed directly to students enrolled at the institution2 and 7#c7 notify prospective and enrolled students at the institution and their families of such withdrawal4 7i7 ,authorization of appropriations 7#a7 ,in general ,there are authorized to be appropriated to carry out this section-- 7,a7 #c1jjj1jjj1jjj for fiscal year #bjbj2 and 7,b7 such sums as may be necessary for each fiscal years #bjba through #bjcj4 7#b7 ,availability ,funds made available under paragraph 7#a7 shall be available for obligation through ,september #cj of the fiscal year succeeding the fiscal year for which such sums were appropriated4 4 #d4 ,title ,,iv eligibility for ,d,r,e,a,mer students ,section #dhd of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajia7 is amended-- 7#a7 in subsection 7a77#e71 by inserting 1 or be a ,dreamer student1 as defined in subsection 7u7 after becoming a citizen or permanent resident2 and 7#b7 by adding at the end the following3 7u7 ,dreamer students 7#a7 ,in general ,in this section1 the term ,dreamer student means an individual who-- 7,a7 was younger than #af years of age on the date on which the individual initially entered the ,united ,states2 7,b7 has provided a list of each secondary school that the student attended in the ,united ,states2 and 7,c7 7i7 has earned a high school diploma1 the recognized equivalent of such diploma from a secondary school1 or a high school equivalency diploma in the ,united ,states or is scheduled to complete the requirements for such a diploma or equivalent before the next academic year begins2 7ii7 has acquired a degree from an institution of higher education or has completed not less than #b years in a program for a baccalaureate degree or higher degree at an institution of higher education in the ,united ,states and has made satisfactory academic progress1 as defined in subsection 7c71 during such time period2 7iii7 at any time was eligible for a grant of deferred action under-- 7,i7 the ,june #ae1 #bjab1 memorandum from the ,secretary of ,homeland ,security entitled ,exercising ,prosecutorial ,discretion with ,respect to ,individuals ,who ,came to the ,united ,states as ,children2 or 7,,ii7 the ,november #bj1 #bjad1 memorandum from the ,secretary of ,homeland ,security entitled ,exercising ,prosecutorial ,discretion with ,respect to ,individuals ,who ,came to the ,united ,states as ,children and with ,respect to ,certain ,individuals ,who ,are the ,parents of ,u4,s4 ,citizens or ,permanent ,residents2 or 7iv7 has served in the uniformed services1 as defined in section #aja of title #aj1 ,united ,states ,code1 for not less than #d years and1 if discharged1 received an honorable discharge4 7#b7 ,hardship exception ,the ,secretary shall issue regulations that direct when the ,department shall waive the requirement of subparagraph 7,a7 or 7,b71 or both1 of paragraph 7#a7 for an individual to qualify as a ,dreamer student under such paragraph1 if the individual-- 7,a7 demonstrates compelling circumstances for the inability to satisfy the requirement of such subparagraph 7,a7 or 7,b71 or both2 and 7,b7 satisfies the requirement of paragraph 7#a77;,c74 4 #e4 ,repeal of suspension of eligibility under the ,higher ,education ,act of #aife for grants1 loans1 and work assistance for drug-related offenses 7a7 ,repeal ,subsection 7r7 of section #dhd of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajia7r77 is repealed4 7b7 ,revision of ,,fafsa form ,section #dhc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajij7 is amended by adding at the end the following3 7i7 ,convictions ,the ,secretary shall not include any question about the conviction of an applicant for the possession or sale of illegal drugs on the ,,fafsa 7or any other form developed under subsection 7a774 4 7c7 ,conforming amendments ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 is amended-- 7#a7 in section #dbh7;b77#c7 7#bj ,u4,s4,c4 #ajgh7;b77#c77-- 7,a7 in subparagraph 7,c71 by striking #dhe7l7 and inserting #dhe7k72 and 7,b7 in subparagraph 7,d71 by striking #dhe7l7 and inserting #dhe7k72 7#b7 in section #dce7;d77#e7 7#bj ,u4,s4,c4 #ajhe7;d77#e77-- 7,a7 in subparagraph 7,e71 by striking #dhe7l7 and inserting #dhe7k72 and 7,b7 in subparagraph 7,f71 by striking #dhe7l7 and inserting #dhe7k72 7#c7 in section #dhd 7#bj ,u4,s4,c4 #ajia71 as amended by section #f1 by redesignating subsections 7s71 7t71 and 7u7 as subsections 7r71 7s71 and 7t71 respectively2 7#d7 in section #dhe 7#bj ,u4,s4,c4 #ajib7-- 7,a7 by striking subsection 7k72 and 7,b7 by redesignating subsections 7l7 and 7m7 as subsections 7k7 and 7l71 respectively2 and 7#e7 in section #dhg7;e77#b77;,b77ii77,,iv7 7#bj ,u4,s4,c4 #ajid7;e77#b77;,b77ii77,,iv771 by striking 7l7 of section #dhe and inserting 7k7 of section #dhe4