Cooperative Education Act of 1985

Cooperative Education Act of 1985 - Amends title VIII (Cooperative Education) of the Higher Education Act of 1965 to revise provisions for the cooperative education program.

Authorizes appropriations for such program for FY 1986 through 1990.

Reserves portions of such funds for each fiscal year as follows: (1) a minimum of 75 percent for grants to institutions of higher education and combinations of such institutions for cooperative education; (2) a maximum of 13 percent for demonstration projects; (3) a maximum of ten percent for training and resource centers; and (4) a maximum of two percent for research.

Revises provisions for grants by the Secretary of Education to cooperative education programs which provide alternating or parallel periods of academic study and of public or private employment.

Raises the limit on the amount of such grant to $500,000 per institution of higher education, or $350,000 per such an institution when in combination with other such institutions receiving a single grant.

Revises application requirements for such grants.

Lowers the percentage of the cost of carrying out an application which may be the maximum Federal share for each of the first three years of a grant (retains the maximum percentages for the fourth and fifth years of the grant which are provided under current law).

Allows former grant recipients to reapply for further grants under specified conditions.

Sets forth factors to be given special consideration in the approval of applications for such grants, including the extent to which: (1) programs in the academic discipline for which the application is made have had a favorable reception by public and private sector employers; (2) the institution is committed to cooperative education, as demonstrated by plans made to continue the program after the Federal assistance ends; and (3) the institution is committed to extending cooperative education on an institution-wide basis for all students who can benefit.

Sets forth provisions for grants and contracts for cooperative education: (1) demonstration and innovation projects; (2) training and resource centers; and (3) research. Authorizes the Secretary to make such grants to and such contracts with: (1) institutions of higher education, or combinations of such institutions; and (2) other public or private nonprofit agencies or organizations, whenever such grants or contracts will make an especially significant contribution to attaining the objectives of such projects, centers, and research.