Pub. L. 112-74, div. F, tit. III (as amended)

309.(a)Federal Pell Grant Eligibility.—(1)Minimum level.—Section 401(b)(4) of the HEA (20 U.S.C. 1070a(b)(4)) is amended by striking , except that and all that follows and inserting a period.(2)Duration of award period.—Section 401(c)(5) of the HEA (20 U.S.C. 1070a(c)(5)) is amended—(A)by striking 18 each place it appears and inserting 12; and(B)by striking the last sentence.(b)Zero Expected Family Contribution.—Section 479(c) of the HEA (20 U.S.C. 1087ss(c)) is amended—(1)in paragraph (1)(B), by striking $30,000 and inserting $23,000; and(2)in paragraph (2)(B), by striking $30,000 and inserting $23,000.(c)Students Who Are Not High School Graduates.—(1)Amendment.—Section 484(d) of the HEA (20 U.S.C. 1091(d)) is amended—(A)in the matter preceding paragraph (1), by striking meet one of the following standards:;(B)by striking paragraphs (1), (2), and (4); and(C)in paragraph (3), by striking (3) The student has and inserting have; and(2)Transition.—The amendment made by paragraph (1) shall apply to students who first enroll in a program of study on or after July 1, 2012.(3)Conforming change.—Section 101(a)(1) of the HEA (20 U.S.C. 1001(a)(1) is amended by striking section 484(d)(3) and inserting section 484(d).(d)Temporary Elimination of Interest Subsidy During Student Loan Grace Period.—(1)Section 428(a)(3)(A)(i)(I) of the HEA (20 U.S.C. 1078(a)(3)(A)(i)(I)) is amended to read as follows:(I)which accrues prior to the date the student ceases to carry at least one-half the normal full-time academic workload (as determined by the institution), or.(2)20 U.S.C. 1078 noteThe amendment made by paragraph (1) shall apply to new Federal Direct Stafford Loans made on or after July 1, 2012 and before July 1, 2014.(e)Revised Special Allowance Calculation.—(1)Revised calculation rule.—Section 438(b)(2)(I) of the HEA (20 U.S.C. 1087-1(b)(2)(I)) is amended by adding at the end the following:(vii)Revised calculation rule to reflect financial market conditions.(I)Calculation based on libor.For the calendar quarter beginning on April 1, 2012 and each subsequent calendar quarter, in computing the special allowance paid pursuant to this subsection with respect to loans described in subclause (II), clause (i)(I) of this subparagraph shall be applied by substituting of the 1-month London Inter Bank Offered Rate (LIBOR) for United States dollars in effect for each of the days in such quarter as compiled and released by the British Bankers Association for of the quotes of the 3-month commercial paper (financial) rates in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H-15 (or its successor) for such 3-month period.(II)Loans eligible for libor-based calculation.The special allowance paid pursuant to this subsection shall be calculated as described in subclause (I) with respect to special allowance payments for the 3-month period ending June 30, 2012, and each succeeding 3-month period, on loans for which the first disbursement is made on or after January 1, 2000, and before July 1, 2010, if, not later than April 1, 2012, the holder of the loan (or, if the holder acts as eligible lender trustee for the beneficial owner of the loan, the beneficial owner of the loan), affirmatively and permanently waives all contractual, statutory, or other legal rights to a special allowance paid pursuant to this subsection that is calculated using the formula in effect at the time the loans were first disbursed.(III)Terms of waiver.(aa)In general.A waiver pursuant to subclause (II) shall be in a form (printed or electronic) prescribed by the Secretary, and shall be applicable to—(AA)all loans described in such subclause that the lender holds solely in its own right under any lender identification number associated with the holder (pursuant to section 487B);(BB)all loans described in such subclause for which the beneficial owner has the authority to make an election of a waiver under such subclause, regardless of the lender identification number associated with the loan or the lender that holds the loan as eligible lender trustee on behalf of such beneficial owner; and(CC)all future calculations of the special allowance on loans that, on the date of such waiver, are loans described in subitem (AA) or (BB), or that, after such date, become loans described in subitem (AA) or (BB).(bb)Exceptions.Any waiver pursuant to subclause (II) that is elected for loans described in subitem (AA) or (BB) of item (aa) shall not apply to any loan described in such subitem for which the lender or beneficial owner of the loan demonstrates to the satisfaction of the Secretary that—(AA)in accordance with an agreement entered into before the date of enactment of this section by which such lender or owner is governed and that applies to such loans, such lender or owner is not legally permitted to make an election of such waiver with respect to such loans without the approval of one or more third parties with an interest in the loans, and that the lender or owner followed all available options under such agreement to obtain such approval, and was unable to do so; or(BB)such lender or beneficial owner presented the proposal of electing such a waiver applicable to such loans associated with an obligation rated by a nationally recognized statistical rating organization (as defined in section 3(a)(62) of the Securities Exchange Act of 1934), and such rating organization provided a written opinion that the agency would downgrade the rating applicable to such obligation if the lender or owner elected such a waiver..(2)Conforming amendments.—Section 438(b)(2)(I) of the HEA (20 U.S.C. 1087-1(b)(2)(I)) is further amended—(A)in clause (i)(II), by striking such average bond equivalent rate and inserting the rate determined under subclause (I) (in accordance with clause (vii)); and(B)in clause (v)(III), by striking (iv), and (vi) and inserting (iv), (vi), and (vii).(f)Reappropriation of Mandatory Savings.—Section 401(b)(7)(A)(iv) of the HEA (20 U.S.C. 1070a(b)(7)(A)(iv)) is amended to read as follows:(iv)to carry out this section—(I)$13,500,000,000 for fiscal year 2011;(II)$13,795,000,000 for fiscal year 2012;(III)$7,587,000,000 for fiscal year 2013;(IV)$588,000,000 for fiscal year 2014;(V)$0 for fiscal year 2015;(VI)$0 for fiscal year 2016;(VII)$1,574,000,000 for fiscal year 2017;(VIII)$1,382,000,000 for fiscal year 2018;(IX)$1,409,000,000 for fiscal year 2019;(X)$1,430,000,000 for fiscal year 2020; and(XI)$1,145,000,000 for fiscal year 2021 and each succeeding fiscal year..(g)20 U.S.C. 1001 noteEffective Date.—The amendments made by subsections (a), (b), and (c) shall take effect on July 1, 2012.(h)20 U.S.C. 1089 noteInapplicability of Negotiated Rulemaking and Master Calendar Exception.—Sections 482(c) and 492 of the HEA (20 U.S.C. 1089(c), 1098a) shall not apply to the amendments made by this section, or to any regulations promulgated under those amendments.This title may be cited as the Department of Education Appropriations Act, 2012.