I

103D CONGRESS

1ST SESSION H. R. 3376

To make certain technical and conforming amendments to the Higher

Education Act of 1965.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 27, 1993

Mr. FORD of Michigan (for himself, Mr. GOODLING, Mr. CLAY, Mr. PETRI,

Mr. MILLER of California, Mr. GUNDERSON, Mr. MURPHY, Mr.

CUNNINGHAM, Mr. KILDEE, Mr. WILLIAMS, Mr. MARTINEZ, Mr. SAWYER, Mr. PAYNE of New Jersey, Mrs. UNSOELD, Mr. ANDREWS of New

Jersey, Mr. SCOTT, Mr. ROMERO-BARCELO ́, Mr. DE LUGO, and Mr.

UNDERWOOD) introduced the following bill; which was referred to the

Committee on Education and Labor

A BILL

To make certain technical and conforming amendments to

the Higher Education Act of 1965.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; REFERENCES EFFECTIVE DATES.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Higher Education Technical Amendments of 1993’’.

6 (b) REFERENCES.—References in this Act to ‘‘the

7 Act’’ are references to the Higher Education Act of 1965.
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1 (c) EFFECTIVE DATES.—Except as otherwise pro2 vided therein, the amendments made by this Act shall be

3 effective as if such amendments were included in The

4 Higher Education Amendments of 1992 (Public Law 102–

5 325).

6 SEC. 2. TECHNICAL AMENDMENTS.

7 (a) AMENDMENTS TO TITLES I, II, AND III OF THE

8 ACT.—The Act is amended—

9 (1) in section 103(b)(2), by increasing the in10 dentation of subparagraphs (A) through (E) by two

11 em spaces;

12 (2) in section 104(b)(5)(C), by striking ‘‘sub13 part’’ and inserting ‘‘part’’;

14 (3) in section 241(a)(2)(B), by striking ‘‘infor15 mation service’’ and inserting ‘‘information science’’;

16 (4) in section 301(a)(2), by striking the comma

17 after ‘‘planning’’;

18 (5) in section 312(c)(2), by inserting ‘‘the’’ be19 fore ‘‘second fiscal year’’ the second place it appears;

20 (6) in section 316(c), by striking ‘‘Such pro21 grams may include—’’ and inserting the following:

22 ‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—

23 Such program may include—’’;
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1 (7) by reducing by two em spaces the indenta2 tion of each of the following provisions: sections

3 323(b)(3), 331(a)(2)(D), and 331(b)(5);

4 (8) in section 326(e)(2)—

5 (A) by inserting ‘‘and’’ after the semicolon

6 at the end of subparagraph (A);

7 (B) by striking subparagraph (B); and

8 (C) by redesignating subparagraph (C) as

9 subparagraph (B);

10 (9) in section 331(b)(2), by reducing the inden11 tation of subparagraphs (B) and (C) by four em

12 spaces; and

13 (10) in section 331(b)(5), by striking ‘‘an en14 dowment’’ and inserting ‘‘An endowment’’.

15 (b) AMENDMENTS TO PART A OF TITLE IV OF THE

16 ACT.—Part A of title IV of the Act is amended—

17 (1) in section 401(a)(1), by striking the last

18 sentence;

19 (2) in section 401(b)(6), in the matter preced20 ing subparagraph (A), by striking ‘‘single 12-month

21 period’’ and inserting ‘‘single award year’’;

22 (3) in section 401(b)(6)(A), by striking ‘‘a bac23 calaureate’’ and inserting ‘‘an associate or bacca24 laureate’’;
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1 (4) in section 401(b)(6)(B), by striking ‘‘a

2 bachelor’s’’ and inserting ‘‘an associate or bacca3 laureate’’;

4 (5) in section 401(b)(8)(A), by striking ‘‘(deter5 mined in accordance with regulations issued by the

6 Secretary)’’;

7 (6) in section 401(i), by striking ‘‘part D of

8 title V’’ and inserting ‘‘subtitle D of title V’’;

9 (7) in section 402A(b), by striking paragraph

10 (2) and inserting the following:

11 ‘‘(2) DURATION.—Grants or contracts made

12 under this chapter shall be awarded for a period of

13 4 years, except that—

14 ‘‘(A) the Secretary shall award such grants

15 or contracts for 5 years to applicants whose

16 peer review scores were in the highest 10 per17 cent of scores of all applicants receiving grants

18 or contracts in each program competition for

19 the same award year; and

20 ‘‘(B) grants made under section 402G

21 shall be awarded for a period of 2 years.’’;

22 (8) in section 402A(c)(1), by inserting before

23 the period the following ‘‘, except that in the case

24 of the programs authorized in sections 402E and

25 402G, the level of consideration given to prior expe-
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1 rience shall be the same as the level of consideration

2 given this factor in the other programs authorized in

3 this chapter’’;

4 (9) in section 402A(c)(2)(A), by inserting ‘‘with

5 respect to grants made under section 402G, and’’

6 after ‘‘Except’’;

7 (10) in section 402A, by amending subsection

8 (e) to read as follows:

9 ‘‘(e) DOCUMENTATION OF STATUS AS A LOW-INCOME

10 INDIVIDUAL.—(1) Except in the case of an independent

11 student, as defined in section 480(d), documentation of

12 an individual’s status pursuant to subsection (g)(2) shall

13 be made by providing the Secretary with—

14 ‘‘(A) a signed statement from the individual’s

15 parent or legal guardian;

16 ‘‘(B) verification from another governmental

17 source;

18 ‘‘(C) a signed financial aid application; or

19 ‘‘(D) a signed United States or Puerto Rico in20 come tax return.

21 ‘‘(2) In the case of an independent student, as de22 fined in section 480(d), documentation of an individual’s

23 status pursuant to subsection (g)(2) shall be made by pro24 viding the Secretary with—

25 ‘‘(A) a signed statement from the individual;
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1 ‘‘(B) verification from another governmental

2 source;

3 ‘‘(C) a signed financial aid application; or

4 ‘‘(D) a signed United States or Puerto Rico in5 come tax return.’’;

6 (11) in section 402C(c), by striking ‘‘and for7 eign’’ and inserting ‘‘foreign’’;

8 (12) in section 402D(c)(2), by striking ‘‘ei9 ther’’;

10 (13) in section 404A(1), by striking ‘‘high11 school’’ and inserting ‘‘high school’’;

12 (14) in section 404B(a)(1)—

13 (A) by striking ‘‘section 403C’’ and insert14 ing ‘‘section 404D’’; and

15 (B) by striking ‘‘section 403D’’ and insert16 ing ‘‘section 404C’’;

17 (15) in section 404B(a)(2), by inserting ‘‘shall’’

18 after ‘‘paragraph (1)’’;

19 (16) in section 404C(b)(3)(A), by striking

20 ‘‘grades 12’’ and inserting ‘‘grade 12’’;

21 (17) in section 404C(b)(3)(D)(i), by striking

22 ‘‘section 401D of this subpart’’ and inserting ‘‘sec23 tion 402D’’;
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1 (18) in section 404C(b)(3)(D)(ii), by striking

2 ‘‘section 401D of this part’’ and inserting ‘‘section

3 402D’’;

4 (19) in section 404D(d)(3), by striking ‘‘pro5 gram of instruction’’ and inserting ‘‘program of un6 dergraduate instruction’’;

7 (20) in section 404D(d)(4), by striking ‘‘the’’

8 the first place it appears;

9 (21) in section 404E(c), by striking ‘‘tuition’’

10 and inserting ‘‘financial’’;

11 (22) in section 404F(a), by striking ‘‘under this

12 section shall biannually’’ and inserting ‘‘under this

13 chapter shall biennially’’;

14 (23) in section 404F(c), by striking ‘‘bian15 nually’’ and inserting ‘‘biennially’’;

16 (24) in section 404G, by striking ‘‘an appro17 priation’’ and inserting ‘‘to be appropriated’’;

18 (25) in section 409A(1), by striking ‘‘private fi19 nancial’’ and inserting ‘‘private student financial’’;

20 (26) in section 413C(d)—

21 (A) by striking ‘‘, a reasonable proportion

22 of the institution’s allocation shall be made

23 available to such students, except that’’ and in24 serting ‘‘and’’; and
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1 (B) by striking ‘‘5 percent of the need’’

2 and inserting ‘‘5 percent of the total financial

3 need’’;

4 (27) in section 413D(d)(3)(C), by striking

5 ‘‘three-fourths in the Pell Grant family size offset’’

6 and inserting ‘‘150 percent of the difference between

7 the income protection allowance for a family of five

8 with one in college and the income protection allow9 ance for a family of six with one in college’’;

10 (28) in section 415C(b)(7), by striking the pe11 riod at the end and inserting a semicolon;

12 (29) in section 419C(b)—

13 (A) by striking ‘‘for a period of not more

14 than 4 years for the first 4 years of study’’ and

15 inserting ‘‘for a period of not less than 1 or

16 more than 4 years during the first 4 years of

17 study’’; and

18 (B) by adding at the end the following:

19 ‘‘The State educational agency administering the program

20 in a State shall have discretion to determine the period

21 of the award (within the limits specified in the preceding

22 sentence), except that—

23 ‘‘(1) if the amount appropriated for this sub24 part for any fiscal year exceeds the amount appro25 priated for fiscal year 1993, the Secretary shall
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1 identify to each State educational agency the num2 ber of scholarships available to that State under sec3 tion 419D(b) that are attributable to such excess;

4 and

5 ‘‘(2) the State educational agency shall award

6 not less than that number of scholarships for a pe7 riod of 4 years.’’;

8 (30) in section 419D, by adding at the end the

9 following new subsection:

10 ‘‘(d) CONSOLIDATION BY INSULAR AREAS PROHIB11 ITED.—Notwithstanding section 501 of Public Law 95–

12 1134 (48 U.S.C. 1469a), funds allocated under this part

13 to an Insular Area described in that section shall be

14 deemed to be direct payments to classes of individuals, and

15 the Insular Area may not consolidate such funds with

16 other funds received by the Insular Area from any depart17 ment or agency of the United States Government.’’; and

18 (31) in section 419G(b), by striking ‘‘the Dis19 trict of Columbia, the Commonwealth of Puerto

20 Rico,’’.

21 (c) AMENDMENTS TO PART B OF TITLE IV OF THE

22 ACT.—Part B of title IV of the Act is amended—

23 (1) in section 422(c)(7), by striking the semi24 colon at the end of subparagraph (B) and inserting

25 a period;
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1 (2) in section 425(a)(1)(A)—

2 (A) by striking clauses (ii) and (iii) and in3 serting the following:

4 ‘‘(ii) in the case of a student at an eli5 gible institution who has successfully com6 pleted such first year but has not success7 fully completed the remainder of a pro8 gram of undergraduate education—

9 ‘‘(I) $3,500; or

10 ‘‘(II) if such student is enrolled

11 in a program of undergraduate edu12 cation, the remainder of which is less

13 than one academic year, the maximum

14 annual loan amount that such student

15 may receive may not exceed the

16 amount that bears the same ratio to

17 the amount specified in subclause (I)

18 as such remainder measured in semes19 ter, trimester, quarter, or clock hours

20 bears to one academic year;

21 ‘‘(iii) in the case of a student at an el22 igible institution who has successfully com23 pleted the first and second years of a pro24 gram of undergraduate education but has
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1 not successfully completed the remainder

2 of such program—

3 ‘‘(I) $5,500; or

4 ‘‘(II) if such student is enrolled

5 in a program of undergraduate edu6 cation, the remainder of which is less

7 than one academic year, the maximum

8 annual loan amount that such student

9 may receive may not exceed the

10 amount that bears the same ratio to

11 the amount specified in subclause (I)

12 as such remainder measured in semes13 ter, trimester, quarter, or clock hours

14 bears to one academic year;’’ and

15 (B) by striking the semicolon at the end of

16 clause (iv) and inserting a period;

17 (3) in section 425(a)(1), by inserting at the end

18 thereof the following:

19 ‘‘(C) For the purpose of subparagraph (A), the

20 number of years that a student has completed in a

21 program of undergraduate education shall include

22 any prior enrollment in an eligible program of un23 dergraduate education for which the student was

24 awarded an associate or baccalaureate degree, if

25 such degree is required by the institution for admis-
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1 sion to the program in which the student is en2 rolled.’’;

3 (4) in section 427(a)(2)(C)(i), by inserting

4 ‘‘section’’ before ‘‘428B or 428C’’;

5 (5) in section 427A(e)(1), by striking ‘‘under

6 this part,’’ and inserting ‘‘under section 427, 428, or

7 428H of this part,’’;

8 (6) in section 427A(i)(1), by amending sub9 paragraph (B) to read as follows:

10 ‘‘(B)(i) during any period in which a stu11 dent is eligible to have interest payments paid

12 on his or her behalf by the Government pursu13 ant to section 428(a), by crediting the excess

14 interest to the Government; or

15 ‘‘(ii) during any other period, by crediting

16 such excess interest to the reduction of prin17 cipal to the extent provided in paragraph (5) of

18 this subsection.’’;

19 (7) in section 427A(i)(2)(B), by striking out

20 ‘‘outstanding principal balance’’ and inserting in lieu

21 thereof ‘‘average daily principal balance’’;

22 (8) in section 427A(i)(4)(B), by striking out

23 ‘‘outstanding principal balance’’ and inserting in lieu

24 thereof ‘‘average daily principal balance’’;

25 (9) in section 427A(i)(5)—
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1 (A) by striking ‘‘paragraph (2)’’ and in2 serting ‘‘paragraphs (2) and (4)’’;

3 (B) by striking ‘‘principle’’ and inserting

4 ‘‘principal’’; and

5 (C) by inserting before the period at the

6 end of the second sentence the following: ‘‘, but

7 the excess interest shall be calculated and cred8 ited to the Secretary’’;

9 (10) in section 427A(i), by adding at the end

10 the following new paragraph:

11 ‘‘(7) CONVERSION TO VARIABLE RATE.—(A)

12 Subject to subparagraphs (B) and (C), a lender or

13 holder may convert the interest rate on a loan made

14 pursuant to section 428 or 428H that is subject to

15 the provisions of this subsection to a variable rate

16 which is adjusted quarterly. The applicable rate of

17 interest for such loans for each 3-month period be18 ginning on January 1, April 1, July 1, or October

19 1, shall be determined on the first day of the month

20 preceding such 3-month period, and shall be equal to

21 (i) the bond equivalent rate of the 91-day Treasury

22 bill auctioned at the final auction held prior to the

23 first day of the month preceding such 3-month pe24 riod; plus (ii) 3.25 percent if the first disbursement

25 of the loan occurred prior to July 23, 1992, or 3.10
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1 percent if the first disbursement of the loan occurred

2 on or after July 23, 1992.

3 ‘‘(B) A lender or holder shall notify the bor4 rower within 30 days of the conversion of the loan

5 to a variable interest rate.

6 ‘‘(C) The interest rate on a loan converted to

7 a variable rate pursuant to this paragraph shall not

8 exceed the maximum interest rate applicable to the

9 loan prior to such conversion.

10 ‘‘(D) Loans on which the interest rate is con11 verted in accordance with subparagraph (A) shall

12 not be subject to any other provisions of this sub13 section.’’;

14 (11) in section 428(a)(2)(C)(i), by striking the

15 period at the end and inserting ‘‘; and’’;

16 (12) in section 428(a)(2)(E), by inserting ‘‘or

17 428H’’ after ‘‘428A’’;

18 (13) in section 428(a)(3)(A)(v)—

19 (A) in subclause (I), by striking out ‘‘be20 fore the first disbursement of the loan; or’’ and

21 inserting ‘‘before the loan is first delivered to

22 the borrower; or’’; and

23 (B) in subclause (II), by striking out ‘‘be24 fore the first disbursement of the loan’’ and in-
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1 serting ‘‘before the loan is first delivered to the

2 borrower’’;

3 (14) in section 428(b)(1)(A)—

4 (A) by striking clauses (ii) and (iii) and in5 serting the following:

6 ‘‘(ii) in the case of a student at an eli7 gible institution who has successfully com8 pleted such first year but has not success9 fully completed the remainder of a pro10 gram of undergraduate education—

11 ‘‘(I) $3,500; or

12 ‘‘(II) if such student is enrolled

13 in a program of undergraduate edu14 cation, the remainder of which is less

15 than one academic year, the maximum

16 annual loan amount that such student

17 may receive may not exceed the

18 amount that bears the same ratio to

19 the amount specified in subclause (I)

20 as such remainder measured in semes21 ter, trimester, quarter, or clock hours

22 bears to one academic year;

23 ‘‘(iii) in the case of a student at an el24 igible institution who has successfully com25 pleted the first and second years of a pro-
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1 gram of undergraduate education but has

2 not successfully completed the remainder

3 of such program—

4 ‘‘(I) $5,500; or

5 ‘‘(II) if such student is enrolled

6 in a program of undergraduate edu7 cation, the remainder of which is less

8 than one academic year, the maximum

9 annual loan amount that such student

10 may receive may not exceed the

11 amount that bears the same ratio to

12 the amount specified in subclause (I)

13 as such remainder measured in semes14 ter, trimester, quarter, or clock hours

15 bears to one academic year;’’;

16 (B) by redesignating clause (iv) as clause

17 (v); and

18 (C) by inserting after clause (iii) the fol19 lowing:

20 ‘‘(iv) in the case of a student who has

21 received an associate or baccalaureate de22 gree and is enrolled in an eligible program

23 for which the institution requires such de24 gree for admission, the number of years

25 that a student has completed in a program
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1 of undergraduate education shall, for the

2 purposes of clauses (ii) and (iii), include

3 any prior enrollment in the eligible pro4 gram of undergraduate education for

5 which the student was awarded such de6 gree; and’’;

7 (15) in section 428(b)(1)(B), by striking the

8 matter following clause (ii) and inserting the follow9 ing:

10 ‘‘except that the Secretary may increase the

11 limit applicable to students who are pursuing

12 programs which the Secretary determines are

13 exceptionally expensive;’’;

14 (16) in section 428(b)(1), by amending sub15 paragraph (N) to read as follows:

16 ‘‘(N) provides that funds borrowed by a

17 student—

18 ‘‘(i) are disbursed to the institution by

19 check or other means that is payable to,

20 and requires the endorsement or other cer21 tification by, such student, unless such stu22 dent requests that the check be endorsed,

23 or the funds transfer authorized, pursuant

24 to an authorized power-of-attorney; and
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1 ‘‘(ii) are, at the request of the stu2 dent, disbursed directly to the student by

3 the means described in clause (i), in the

4 case of a student who is studying outside

5 the United States in a program of study

6 abroad that is approved for credit by the

7 home institution at which such student is

8 enrolled or at an eligible foreign institu9 tion;’’;

10 (17) in section 428(b)(1)(U)—

11 (A) by striking ‘‘this clause;’’ and inserting

12 ‘‘this clause’’; and

13 (B) by inserting a comma after ‘‘emer14 gency action’’ each place it appears;

15 (18) in section 428(b)(1), by striking subpara16 graph (V);

17 (19) in section 428(b)(2)(F)(i), by striking

18 ‘‘each to provide a separate notice’’ and inserting ’’ei19 ther jointly or separately to provide a notice’’;

20 (20) in section 428(b)(2)(F)(ii), by striking

21 ‘‘transferor’’ and inserting ‘‘transferee’’;

22 (21) in section 428(b)(2)(F)(ii)(I), by striking

23 ‘‘to another holder’’;

24 (22) in section 428(b)(2)(F)(ii)(II), by striking

25 ‘‘such other’’ and inserting ‘‘the new’’;
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1 (23) in section 428(b), by striking paragraph

2 (7) and inserting the following:

3 ‘‘(7) REPAYMENT PERIOD.—(A) In the case of

4 a loan made under section 427 or 428, the repay5 ment period shall exclude any period of authorized

6 deferment or forbearance and shall begin—

7 ‘‘(i) the day after 6 months after the date

8 the student ceases to carry at least one-half the

9 normal full-time academic workload (as deter10 mined by the institution); or

11 ‘‘(ii) on an earlier date if the borrower re12 quests and is granted a repayment schedule

13 that provides for repayment to commence at an

14 earlier date.

15 ‘‘(B) In the case of a loan made under section

16 428H, the repayment period shall exclude any period

17 of authorized deferment or forbearance, and—

18 ‘‘(i) if such loan is made to a borrower

19 that has borrowed a loan made under section

20 427 or 428 for the same period of instruction—

21 ‘‘(I) interest shall begin to accrue or

22 be paid by the borrower on the day the

23 loan is disbursed, or, if the loan is dis24 bursed in multiple installments, on the day

25 of the last such disbursement; and
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1 ‘‘(II) the repayment period with re2 spect to principal begins in accordance

3 with subparagraph (A); and

4 ‘‘(ii) if such loan is made to any other bor5 rower, the repayment or accrual of interest

6 shall begin as described in clause (i)(I), but the

7 borrower shall be required to elect whether the

8 repayment of principal shall begin as described

9 in clause (i)(II), or on the day immediately

10 after the student ceases to carry at least one11 half the normal full-time academic workload (as

12 determined by the institution).

13 ‘‘(C) In the case of a loan made under section

14 428A, 428B, or 428C, the repayment period shall

15 begin on the day the loan is disbursed, or, if the

16 loan is disbursed in multiple installments, on the day

17 of the last such disbursement, and shall exclude any

18 period of authorized deferment or forbearance.’’;

19 (24) in section 428(b), by adding at the end

20 thereof the following new paragraph:

21 ‘‘(8) MEANS OF DISBURSEMENT OF LOAN PRO22 CEEDS.—Nothing in this title shall be interpreted to

23 prohibit the disbursement of loan proceeds by means

24 other than by check or to allow the Secretary to re-
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1 quire checks to be made co-payable to the institution

2 and the borrower.’’;

3 (25) in section 428(c)(1)(A), by striking the

4 last sentence and inserting the following: ‘‘A guar5 anty agency shall file a claim for reimbursement

6 with respect to losses under this subsection within

7 45 days after the guaranty agency discharges its in8 surance obligation on the loan.’’;

9 (26) in section 428(c)(2)(G), by striking ‘‘dem10 onstrates’’ and inserting ‘‘certifies’’;

11 (27) in section 428(c)(3), by striking subpara12 graph (A) and inserting the following:

13 ‘‘(A) shall contain provisions providing

14 that—

15 ‘‘(i) upon written request, a lender

16 shall grant a borrower forbearance, renew17 able at 12-month intervals, on terms

18 agreed to in writing by the parties to the

19 loan with the approval of the insurer, and

20 otherwise consistent with the regulations of

21 the Secretary, if the borrower—

22 ‘‘(I) is serving in a medical or

23 dental internship or residency pro24 gram, the successful completion of

25 which is required to begin professional
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1 practice or service, or is serving in a

2 medical or dental internship or resi3 dency program leading to a degree or

4 certificate awarded by an institution

5 of higher education, a hospital, or a

6 health care facility that offers post7 graduate training, provided that if the

8 borrower qualifies for a deferment

9 under section 427(a)(2)(C)(vii) or

10 subparagraph (M)(vii) of this para11 graph as in effect prior to the enact12 ment of the Higher Education

13 Amendments of 1992, or section

14 427(a)(2)(C) or subparagraph (M) of

15 this paragraph as amended by such

16 amendments, the borrower has ex17 hausted his or her eligibility for such

18 deferment; or

19 ‘‘(II) has a debt burden under

20 this title that equals or exceeds 20

21 percent of income;

22 ‘‘(ii) the length of the forbearance

23 granted by the lender—

24 ‘‘(I) under clause (i)(I) shall

25 equal the length of time remaining in
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1 the borrower’s medical or dental in2 ternship or residency program, if the

3 borrower is not eligible to receive a

4 deferment described in such clause, or

5 such length of time remaining in the

6 program after the borrower has ex7 hausted his or her eligibility for such

8 deferment; or

9 ‘‘(II) under clause (i)(II) shall

10 not exceed 3 years; and

11 ‘‘(iii) no administrative or other fee

12 may be charged in connection with the

13 granting of a forbearance under clause (i),

14 and no adverse information regarding a

15 borrower may be reported to a credit bu16 reau organization solely because of the

17 granting of such forbearance;’’;

18 (28) in section 428(e)(2)(A)—

19 (A) by striking ‘‘(i)’’;

20 (B) by striking ‘‘(I)’’ and inserting ‘‘(i)’’;

21 and

22 (C) by striking ‘‘(II)’’ and inserting ‘‘(ii)’’;

23 (29) in section 428(j)(2), in the matter preced24 ing subparagraph (A), by striking ‘‘lender of last re25 sort’’ and inserting ‘‘lender-of-last-resort’’;
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1 (30) in section 428A(b)(1), by striking subpara2 graph (B) and inserting the following:

3 ‘‘(B) In the case of a student at an eligible

4 institution who has successfully completed such

5 first and second years but has not successfully

6 completed the remainder of a program of un7 dergraduate education—

8 ‘‘(i) $5,500; or

9 ‘‘(ii) if such student is enrolled in a

10 program of undergraduate education, the

11 remainder of which is less than one aca12 demic year, the maximum annual loan

13 amount that such student may receive may

14 not exceed the amount that bears the same

15 ratio to the amount specified in subclause

16 (I) as such remainder measured in semes17 ter, trimester, quarter, or clock hours

18 bears to one academic year.’’;

19 (31) in section 428A(b)(1)—

20 (A) by redesignating subparagraph (C) as

21 subparagraph (D); and

22 (B) by inserting after subparagraph (B)

23 the following:

24 ‘‘(C) For the purposes of this paragraph,

25 the number of years that a student has com-
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1 pleted in a program of undergraduate education

2 shall include any prior enrollment in an eligible

3 program of undergraduate education for which

4 the student was awarded an associate or bacca5 laureate degree, if such degree is required by

6 the institution for admission to the program in

7 which the student is enrolled.’’;

8 (32) in section 428A(b)(3)(B)(i), by striking

9 ‘‘section 428’’ and inserting ‘‘sections 428 and

10 428H’’;

11 (33) in section 428A(c)(1), by striking ‘‘sec12 tions 427 or 428(b)’’ and inserting ‘‘section 427 or

13 428(b)’’;

14 (34) in section 428B(c)(2), by striking ‘‘bor15 rower.’’ and inserting ‘‘borrower, and sent to such

16 institution.’’;

17 (35) in section 428C(a)(3)(A), by striking ‘‘de18 linquent or defaulted borrower who will reenter re19 payment through loan consolidation’’ and inserting

20 ‘‘defaulted borrower who has made arrangements to

21 repay the obligation on the defaulted loans satisfac22 tory to the holders of the defaulted loan’’;

23 (36) in section 428C(a)(4)(A), by striking ‘‘,

24 except for loans made to parent borrowers under
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1 section 428B as in effect prior to the enactment of

2 the Higher Education Amendments of 1986’’;

3 (37) in section 428C(a)(4)(C), by striking ‘‘part

4 C’’ and inserting ‘‘part A’’;

5 (38) in section 428C(c)(2)(A)(vi), by inserting a

6 period after ‘‘30 years’’;

7 (39) in section 428C(c)(3)(A), by inserting ‘‘be

8 an amount’’ before ‘‘equal to’’;

9 (40) in section 428F(a)(2)—

10 (A) by striking ‘‘this paragraph’’ and in11 serting ‘‘paragraph (1) of this subsection’’; and

12 (B) by striking ‘‘this section’’ and insert13 ing ‘‘this subsection’’;

14 (41) in section 428F(a)(4), by striking ‘‘this

15 paragraph’’ and inserting ‘‘paragraph (1) of this

16 subsection’’;

17 (42) in section 428F(b), by adding at the end

18 thereof the following new sentence: ‘‘A borrower may

19 only obtain the benefit of this subsection with re20 spect to renewed eligibility once.’’;

21 (43) in section 428G(c)(3), by striking ‘‘dis22 bursed’’ and inserting ‘‘disbursed by the lender’’;

23 (44) in section 428H(d)(2), by striking sub24 paragraph (B) and inserting the following:
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1 ‘‘(B) in the case of a student at an eligible

2 institution who has successfully completed such

3 first and second years but has not successfully

4 completed the remainder of a program of un5 dergraduate education, $5,000.’’;

6 (45) in section 428H(e)(1), by striking ‘‘shall

7 commence 6 months after the month in which the

8 student ceases to carry at least one-half the normal

9 full-time workload as determined by the institution.’’

10 and inserting ‘‘shall begin as described in section

11 428(b)(7)(B).’’;

12 (46) in section 428H(e)(4), by striking

13 ‘‘427A(e)’’ and inserting ‘‘427A’’;

14 (47) in section 428H, by redesignating sub15 section (l) as subsection (h);

16 (48) in section 428I(g), by striking ‘‘the Fed17 eral False Claims Act’’ and inserting ‘‘section 3729

18 of title 31, United States Code,’’;

19 (49) in section 428J(b)(1), by striking ‘‘sec20 tions 428A, 428B, or 428C’’ and inserting ‘‘section

21 428A, 428B, or 428C’’;

22 (50) in section 428J(b)(1)(B), by striking

23 ‘‘agrees in writing to volunteer for service’’ and in24 serting ‘‘serves as a full-time volunteer’’;
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1 (51) in section 428J(c)(1), by striking ‘‘aca2 demic year’’ each place it appears and inserting

3 ‘‘year of service’’;

4 (52) in the heading for section 428J(d), by

5 striking ‘‘OF ELIGIBILITY’’ and inserting ‘‘TO ELIGI6 BLE’’;

7 (53) in section 428J, by amending subsection

8 (e) to read as follows:

9 ‘‘(e) APPLICATION FOR REPAYMENT.—

10 ‘‘(1) IN GENERAL.—Each eligible individual de11 siring loan repayment under this section shall sub12 mit a complete and accurate application to the Sec13 retary at such time, in such manner, and containing

14 such information as the Secretary may reasonably

15 require. Loan repayment under this section shall be

16 on a first-come, first-served basis and subject to the

17 availability of appropriations.

18 ‘‘(2) CONDITIONS.—An eligible individual may

19 apply for repayment after completing each year of

20 qualifying service. The borrower shall receive for21 bearance while engaged in qualifying service.’’;

22 (54) in section 430A(f)(1), by striking the

23 comma at the end and inserting a semicolon;

24 (55) in section 432(m)(2)—
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1 (A) by striking ‘‘DEFERMENT FORM’’ and

2 inserting ‘‘DEFERMENT FORMS’’; and

3 (B) by striking ‘‘a common deferment re4 porting form’’ and inserting ‘‘common

5 deferment reporting forms’’;

6 (56) in section 433(b), in the matter preceding

7 paragraph (1), by striking ‘‘60 days’’ and inserting

8 ‘‘30 days’’;

9 (57) in section 433(e), by striking ‘‘section

10 428A, 428B,’’ and inserting ‘‘sections 428A,

11 428B,’’;

12 (58) in section 435(d)(2)(D), by striking ‘‘lend13 er; and’’ and inserting ‘‘lender;’’;

14 (59) in section 435(d)(2), by increasing the in15 dentation of the matter following subparagraph (F)

16 by two em spaces;

17 (60) in section 435(d)(3), by striking ‘‘435(o)’’

18 and inserting ‘‘435(m)’’;

19 (61) in section 435(m)(1)(A), by striking ‘‘428

20 or 428A’’ and inserting ‘‘428, 428A, or 428H,’’;

21 (62) in section 435(m)(2)(D)—

22 (A) by inserting ‘‘(or the portion of a loan

23 made under section 428C that is used to repay

24 a loan made under section 428A)’’ after ‘‘sec25 tion 428A’’ the first place it appears; and
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1 (B) by inserting ‘‘(or a loan made under

2 section 428C a portion of which is used to

3 repay a loan made under section 428A)’’ after

4 ‘‘section 428A’’ the second place it appears;

5 (63) in section 437, by amending subsection (b)

6 to read as follows:

7 ‘‘(b) PAYMENT OF CLAIMS ON LOANS IN BANK8 RUPTCY.—The Secretary shall pay to the holder of a loan

9 described in section 428(a)(1)(A) or (B) or section 428A,

10 428B, 428C, or 428H, the amount of the unpaid balance

11 of principal and interest owed on such loan—

12 ‘‘(1) when the borrower files for relief under

13 chapter 12 or 13 of title 11, United States Code;

14 ‘‘(2) when the borrower who has filed for relief

15 under chapter 7 or 11 of such title commences an

16 action for a determination of dischargeability under

17 section 523(a)(8)(B) of such title; or

18 ‘‘(3) for loans described in section 523(a)(8)(A)

19 of such title, when the borrower files for relief under

20 chapter 7 or 11 of such title.’’.

21 (64) in section 437(c)(1)—

22 (A) by striking ‘‘If a student borrower’’

23 and inserting ‘‘If a borrower’’;

24 (B) by striking ‘‘under this part is unable’’

25 and inserting ‘‘under this part and the student
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1 borrower, or the student on whose behalf a par2 ent borrowed, is unable’’; and

3 (C) by striking ‘‘in which the borrower is

4 enrolled’’ and inserting ‘‘in which such student

5 is enrolled’’; and

6 (65) in section 437(c)(4), by adding at the end

7 thereof the following sentence: ‘‘The amount of a

8 loan, and interest on a loan, which is canceled under

9 this subsection shall be treated the same as loans

10 under section 465(a)(5) of this title.’’

11 (66) in section 437A(a), in the matter preced12 ing paragraph (1), by striking ‘‘, to the extent of

13 funds appropriated under subsection (d)’’;

14 (67) in section 437A(c)(2), by inserting a pe15 riod at the end;

16 (68) in section 437A, by striking subsection (e);

17 and

18 (69) in section 439(r)(12), by striking ‘‘section

19 522’’ and inserting ‘‘section 552’’.

20 (d) AMENDMENT TO PART C OF TITLE IV OF THE

21 ACT.—Part C of title IV of the Act is amended—

22 (1) in section 442(d)(4)(C), by striking ‘‘three23 fourths in the Pell Grant family size offset’’ and in24 serting ‘‘150 percent of the difference between the

25 income protection allowance for a family of five with
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1 one in college and the income protection allowance

2 for a family of six with one in college’’;

3 (2) in section 442(e)—

4 (A) by inserting ‘‘(1)’’ after the subsection

5 heading; and

6 (B) by adding at the end the following new

7 paragraph:

8 ‘‘(2) If, under paragraph (1) of this subsection, an

9 institution returns more than 10 percent of its allocation,

10 the institution’s allocation for the next fiscal year shall

11 be reduced by the amount returned. The Secretary may

12 waive this paragraph for a specific institution if the Sec13 retary finds that enforcing this paragraph would be con14 trary to the interest of the program.’’;

15 (3) in section 443(b)(2)(A), by striking ‘‘insti16 tution;’’ and inserting ‘‘institution; and’’;

17 (4) in section 443(b), by amending paragraph

18 (5) to read as follows:

19 ‘‘(5) provide that the Federal share of the com20 pensation of students employed in the work-study

21 program in accordance with the agreement shall not

22 exceed 75 percent for academic year 1993–1994 and

23 succeeding academic years, except that the Federal

24 share may exceed such amounts of compensation if

25 the Secretary determines, pursuant to regulations
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1 promulgated by the Secretary establishing objective

2 criteria for such determinations, that a Federal

3 share in excess of such amounts is required in fur4 therance of the purpose of this part;’’; and

5 (5) in section 443(b)(8), by striking subpara6 graphs (A), (B), and (C) and inserting the following:

7 ‘‘(A) that are only on campus and that—

8 ‘‘(i) to the maximum extent prac9 ticable, complement and reinforce the edu10 cation programs or vocational goals of such

11 students; and

12 ‘‘(ii) furnish student services that are

13 directly related to the student’s education,

14 as determined by the Secretary pursuant

15 to regulations, except that no student shall

16 be employed in any position that would in17 volve the solicitation of other potential stu18 dents to enroll in the school; or

19 ‘‘(B) in community service in accordance

20 with paragraph (2)(A) of this subsection;’’.

21 (e) AMENDMENTS TO PART E OF TITLE IV OF THE

22 ACT.—Part E of title IV of the Act is amended—

23 (1) in section 462(a)(2)(D), by striking ‘‘if the

24 institution which has’’ and inserting ‘‘if the institu25 tion has’’;
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1 (2) in section 462(d)(4)(C), by striking ‘‘three2 fourths in the Pell Grant family size offset’’ and in3 serting ‘‘150 percent of the difference between the

4 income protection allowance for a family of five with

5 one in college and the income protection allowance

6 for a family of six with one in college’’;

7 (3) in section 462(e), by reducing the indenta8 tion of paragraph (2) by two em spaces;

9 (4) in section 462(h)(4), by reducing the inden10 tation of subparagraph (B) by two em spaces;

11 (5) in section 463(a)(2)(B)(i)(II), by striking

12 ‘‘7.5 percent’’ and inserting ‘‘7.5 percent for award

13 year 1993–1994 and has a cohort default rate which

14 does not exceed 15 percent for award year 1994–

15 1995 or for any succeeding award year’’;

16 (6) in section 463(c)(4), by striking ‘‘shall dis17 close’’ and inserting ‘‘shall at least annually dis18 close’’;

19 (7) in section 463, by adding at the end the fol20 lowing new subsections:

21 ‘‘(d) LIMITATION ON USE OF INTEREST BEARING

22 ACCOUNTS.—In carrying out the provisions of subsection

23 (a)(10), the Secretary may not require that any collection

24 agency, collection attorney, or loan servicer collecting

25 loans made under this part deposit amounts collected on
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1 such loans in interest bearing accounts, unless such agen2 cy, attorney, or servicer holds such amounts for more than

3 45 days.

4 ‘‘(e) SPECIAL DUE DILIGENCE RULE.—In carrying

5 out the provisions of subsection (a)(5) relating to due dili6 gence, the Secretary shall make every effort to ensure that

7 institutions of higher education may use Internal Revenue

8 Service skip-tracing collection procedures on loans made

9 under this part.’’;

10 (8) in section 463A, by striking subsections (d)

11 and (e);

12 (9) in section 464(c)(2)(B) by striking ‘‘repay13 ment or’’ and inserting ‘‘repayment of’’;

14 (10) in section 464(c)(6), by striking

15 ‘‘Fullbright’’ and inserting ‘‘Fulbright’’;

16 (11) in section 464(e), by striking ‘‘principle’’

17 and inserting ‘‘principal’’;

18 (12) in section 465(a)(2)(D), by striking ‘‘serv19 ices’’ and inserting ‘‘service’’;

20 (13) in section 465(a)(2)(F), by striking ‘‘or’’

21 at the end;

22 (14) in section 465(a), by reducing the indenta23 tion of paragraph (6) by 2 em spaces; and

24 (15) in section 466(c), by reducing the indenta25 tion of paragraph (2) by two em spaces.
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1 (f) AMENDMENTS TO PART F OF TITLE IV OF THE

2 ACT.—Part F of title IV of the Act is amended—

3 (1) in the table contained in sections 475(c)(4)

4 and 477(b)(4), by inserting ‘‘$’’ before ‘‘9,510’’;

5 (2) in section 475(f)(3)—

6 (A) by striking ‘‘Income in the case of a

7 parent’’ and inserting ‘‘If a parent’’;

8 (B) by striking ‘‘(1) of this subsection, or

9 a parent’’ and inserting ‘‘(1) of this subsection,

10 or if a parent’’; and

11 (C) by striking ‘‘is determined as follows:

12 The income’’ and inserting ‘‘the income’’;

13 (3) in section 475(g)(1)(B), by inserting a close

14 parentheses after ‘‘paragraph (2)’’;

15 (4) in the table contained in section 475(g)(3),

16 by adding a last row that is identical to the last row

17 of the table contained in section 476(b)(2);

18 (5) in section 476, by adding at the end thereof

19 the following new subsection:

20 ‘‘(d) COMPUTATIONS IN CASE OF SEPARATION, DI21 VORCE, OR DEATH.—In the case of a student who is di22 vorced or separated, or whose spouse has died, the

23 spouse’s income and assets shall not be considered in de24 termining the family’s contribution from income or as25 sets.’’;
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1 (6) in section 477 by adding at the end thereof

2 the following new subsection:

3 ‘‘(e) COMPUTATIONS IN CASE OF SEPARATION, DI4 VORCE, OR DEATH.—In the case of a student who is di5 vorced or separated, or whose spouse has died, the

6 spouse’s income and assets shall not be considered in de7 termining the family’s available income or assets.’’;

8 (7) in section 478—

9 (A) by striking ‘‘1992–1993’’ each place it

10 appears and inserting ‘‘1993–1994’’; and

11 (B) in subsection (c)(1), by striking

12 ‘‘1992’’ and inserting ‘‘1993’’;

13 (8) in section 478(h), by striking ‘‘Bureau of

14 Labor Standards’’ and inserting ‘‘Bureau of Labor

15 Statistics’’;

16 (9) in section 479(a)(1), by inserting ‘‘of’’ after

17 ‘‘(c)’’;

18 (10) in section 479(b)(1)(B)(i)—

19 (A) by inserting ‘‘(and the student’s

20 spouse, if any)’’ after ‘‘student’’ each time it

21 appears; and

22 (B) by striking ‘‘such’’;

23 (11) in section 479(b)(2), by striking ‘‘five ele24 ments’’ and inserting ‘‘six elements’’;
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1 (12) in section 479(b)(2)(E), by striking the

2 semicolon and inserting a comma;

3 (13) in section 480(c)(2), by striking ‘‘Title’’

4 each place it appears and inserting ‘‘United States

5 Code, title’’;

6 (14) in section 480(d)(2), by inserting ‘‘or was

7 a ward of the court until the individual reached the

8 age of 18’’ prior to the semicolon; and

9 (15) in section 480, by adding at the end the

10 following new subsections:

11 ‘‘(k) DEPENDENTS.—(1) Except as otherwise pro12 vided, the term ‘dependent of the parent’ means the stu13 dent, dependent children of the student’s parents, includ14 ing those children who are deemed to be dependent stu15 dents when applying for aid under this title, and other

16 persons who live with and receive more than one-half of

17 their support from the parent and will continue to receive

18 more than half of their support from the parent during

19 the award year.

20 ‘‘(2) Except as otherwise provided, the term ‘depend21 ent of the student’ means the student’s dependent children

22 and other persons (except the student’s spouse) who live

23 with and receive more than one-half of their support from

24 the student and will continue to receive more than half

25 of their support from the student during the award year.
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1 ‘‘(l) FAMILY SIZE.—(1) In determining family size in

2 the case of a dependent student—

3 ‘‘(A) if the parents are not divorced or sepa4 rated, family members include the student’s parents,

5 and the dependents of the student’s parents includ6 ing the student;

7 ‘‘(B) if the parents are divorced or separated,

8 family members include the parent whose income is

9 included in computing available income and that

10 parent’s dependents, including the student; and

11 ‘‘(C) if the parents are divorced and the parent

12 whose income is so included is remarried, or if the

13 parent was a widow or widower who has remarried,

14 family members also include, in addition to those in15 dividuals referred to in subparagraph (B), the new

16 spouse and any dependents of the new spouse if that

17 spouse’s income is included in determining the par18 ents’ adjusted available income.

19 ‘‘(2) In determining family size in the case of an inde20 pendent student—

21 ‘‘(A) family members include the student, the

22 student’s spouse, and the dependents of the student;

23 and

24 ‘‘(B) if the student is divorced or separated,

25 family members do not include the spouse (or ex-
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1 spouse), but do include the student and the stu2 dent’s dependents.

3 ‘‘(m) BUSINESS ASSETS.—The term ‘business assets’

4 means property that is used in the operation of a trade

5 or business, including real estate, inventories, buildings,

6 machinery, and other equipment, patents, franchise rights,

7 and copyrights.’’.

8 (g) AMENDMENTS TO PART G OF TITLE IV OF THE

9 ACT.—Part G of title IV of the Act is amended—

10 (1) in section 481(a)(3)(B), by inserting before

11 the semicolon the following: ‘‘, except that the Sec12 retary, at the request of such institution, may waive

13 the applicability of this subparagraph to such insti14 tution for good cause, as determined by the Sec15 retary’’;

16 (2) in section 481(a)(3)(D)—

17 (A) by striking ‘‘are admitted pursuant to

18 section 484(d)’’ and inserting ‘‘do not have a

19 high school diploma or its recognized equiva20 lent’’; and

21 (B) by inserting before the period the fol22 lowing: ‘‘, except that the Secretary may waive

23 the limitation contained in this subparagraph if

24 a nonprofit institution demonstrates to the sat25 isfaction of the Secretary that it exceeds such
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1 limitation because it serves, through contracts

2 with Federal, State, or local government agen3 cies, significant numbers of students who do not

4 have a high school diploma or its recognized

5 equivalent’’;

6 (3) in section 481(a)(4), by amending subpara7 graph (A) to read as follows:

8 ‘‘(A) the institution, or an affiliate of the

9 institution that has the power, by contract or

10 ownership interest, to direct or cause the direc11 tion of the management or policies of the insti12 tution, has filed for bankruptcy;’’;

13 (4) in section 481(d), by amending paragraph

14 (2) to read as follows:

15 ‘‘(2) For the purpose of any program under this title,

16 the term ‘academic year’ shall require a minimum of 30

17 weeks of instructional time, and, with respect to an under18 graduate course of study, shall require that during such

19 minimum period of instructional time a full-time student

20 is expected to complete at least 24 semester or trimester

21 hours or 36 quarter hours at an institution that measures

22 program length in credit hours, or at least 900 clock hours

23 at an institution that measures program length in clock

24 hours.’’;
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1 (5) in section 481(e) by striking paragraph (2)

2 and inserting the following:

3 ‘‘(2)(A) A program is an eligible program for pur4 poses of part B of this title if it is a program of at least

5 300 clock hours of instruction, but less than 600 clock

6 hours of instruction, offered during a minimum of 10

7 weeks, that—

8 ‘‘(i) has a completion rate of at least 70 per9 cent, as determined in accordance with the regula10 tions of the Secretary;

11 ‘‘(ii) has a placement rate of at least 70 per12 cent, as determined in accordance with the regula13 tions of the Secretary; and

14 ‘‘(iii) satisfies such further criteria as the Sec15 retary may prescribe by regulation.

16 ‘‘(B) In the case of a program being determined eligi17 ble for the first time under this paragraph, such deter18 mination shall be made by the Secretary before such pro19 gram is considered to have satisfied the requirements of

20 this paragraph.’’;

21 (6) in section 481(f), by striking ‘‘State’’ and

22 inserting ‘‘individual, or any State,’’;

23 (7) in section 482(c), by adding at the end the

24 following new sentence: ‘‘For award year 1994–95,
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1 this subsection will not apply to regulatory changes

2 affecting parts B, G, and H of this title.’’;

3 (8) in section 483(a)(1), by striking ‘‘section

4 411(d)’’ and inserting ‘‘section 401(d)’’;

5 (9) in section 483(a)(2), by inserting at the end

6 the following new sentence: ‘‘No data collected on a

7 form for which a fee is charged shall be used to

8 complete the form prescribed under paragraph (1).’’;

9 (10) in section 483(a)(3), by inserting at the

10 end the following sentence: ‘‘Entities designated by

11 institutions of higher education or States to receive

12 such data shall be subject to all requirements of this

13 section, unless such requirements are waived by the

14 Secretary.’’;

15 (11) in section 483(f), by striking ‘‘address, so16 cial security number,’’ and inserting ‘‘address or em17 ployer’s address, social security number or employer

18 identification number,’’;

19 (12) in section 484(a)(4)(B), by striking the

20 semicolon and inserting the following: ‘‘(or if the

21 student is ineligible for or unable to obtain a social

22 security number, such student’s identification num23 ber); and ’’;

24 (13) in section 484(a)(5), by striking ‘‘in the

25 United States for other than a temporary purpose
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1 and able to provide evidence from the Immigration

2 and Naturalization Service of his or her intent to be3 come a permanent resident’’ and inserting ‘‘able to

4 provide evidence from the Immigration and Natu5 ralization Service that he or she is in the United

6 States for other than a temporary purpose with the

7 intention of becoming a citizen or permanent resi8 dent’’;

9 (14) in section 484(b)(2)—

10 (A) in subparagraph (A), by striking

11 ‘‘and’’;

12 (B) in subparagraph (B), by striking the

13 period and inserting ‘‘; and’’; and

14 (C) after subparagraph (B), by inserting:

15 ‘‘(C) has applied for a loan under section

16 428H, if eligible.’’;

17 (15) in section 484(b)(3), by striking ‘‘part B’’

18 and inserting ‘‘part B or D’’;

19 (16) in section 484, by striking subsection (f);

20 (17) in section 484(g), by inserting a comma

21 after ‘‘Part D’’ each place it appears;

22 (18) in section 484(h)(4)(B), by striking ‘‘con23 stitutes’’ and inserting ‘‘constitute’’;

24 (19) in section 484(i)(2)—
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1 (A) by striking ‘‘(h)(4)(A)(ii)’’ and insert2 ing ‘‘(h)(4)(A)(i)’’; and

3 (B) by striking ‘‘documentation,’’ and in4 serting ‘‘documentation, or’’;

5 (20) in section 484(i)(3)—

6 (A) by striking ‘‘(h)(4)(B)(ii)’’ and insert7 ing ‘‘(h)(4)(B)(i)’’; and

8 (B) by striking ‘‘, or’’ and inserting a pe9 riod;

10 (21) in section 484(i), by striking paragraph

11 (4);

12 (22) in section 484(n), by striking ‘‘part B, C,’’

13 and inserting ‘‘parts B, C,’’;

14 (23) in section 484(q)(2), by striking ‘‘a correct

15 social security number’’ and inserting ‘‘documented

16 evidence of a social security number that is deter17 mined by the institution to be correct’’;

18 (24) in section 484B(a), by striking ‘‘grant,

19 loan, or work assistance’’ and inserting ‘‘grant or

20 loan assistance’’;

21 (25) in section 484B(b)(3), by striking ‘‘sub22 section (d)’’ and inserting ‘‘subsection (c)’’;

23 (26) in section 485(a)(1)(F)(iv), by inserting

24 ‘‘under’’ after ‘‘awards’’;
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1 (27) in section 485(a)(1)(F)(viii), by striking

2 the period;

3 (28) in section 485(a)(1)(F), by striking clause

4 (vi) and redesignating clauses (vii) and (viii) as

5 clauses (vi) and (vii), respectively;

6 (29) in section 485(a)(1)(L), by inserting a

7 comma after ‘‘full-time’’;

8 (30) in section 485(a)(3), by striking subpara9 graph (A) and inserting the following:

10 ‘‘(A) shall, for any academic year begin11 ning more than 270 days after the Secretary

12 first prescribes final regulations pursuant to

13 such subparagraph (L), be made available to

14 current and prospective students prior to enroll15 ing or entering into any financial obligation;’’;

16 (31) in paragraphs (1)(A) and (2)(A) of section

17 485(b), by striking ‘‘under parts’’ and inserting

18 ‘‘under part’’;

19 (32) in section 485(e), by adding at the end the

20 following new paragraph:

21 ‘‘(9) This subsection shall not be effective until the

22 first July 1 that follows, by more than 270 days, the date

23 on which the Secretary first prescribes final regulations

24 pursuant to this subsection. The reports required by this

25 subsection shall be due on that July 1 and each succeeding
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1 July 1 and shall cover the 1-year period ending June 30

2 of the preceding year.’’;

3 (33) in section 485B(a)—

4 (A) by striking ‘‘part E’’ and inserting

5 ‘‘parts D and E’’; and

6 (B) by striking the second period at the

7 end of the third sentence;

8 (34) in section 485B(a)(4), by striking ‘‘part

9 E’’ and inserting ‘‘parts D and E’’;

10 (35) in section 485B(c), by striking ‘‘part B or

11 part E’’ and inserting ‘‘part B, D, or E’’;

12 (36) in section 485B(e), by striking ‘‘under this

13 part’’ each place it appears and inserting ‘‘under

14 this title’’;

15 (37) in section 487(a)(2), by striking ‘‘, or for

16 completing or handling the Federal Student Assist17 ance Report’’;

18 (38) in section 487(c)(1)(F), by striking ‘‘eligi19 bility for any program under this title of any other20 wise eligible institution,’’ and inserting ‘‘participa21 tion in any program under this title of an eligible in22 stitution,’’;

23 (39) in section 489(a), by striking ‘‘484(c)’’

24 and inserting ‘‘484(h)’’; and
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1 (40) in section 491(h)(1), by striking ‘‘subtitle

2 III’’ and inserting ‘‘subchapter III’’.

3 (h) AMENDMENTS TO PART H OF TITLE IV OF THE

4 ACT.—Part H of title IV of the Act is amended—

5 (1) in section 494C(a), by striking the first and

6 second sentences and inserting the following: ‘‘The

7 Secretary shall review all eligible institutions of

8 higher education in a State to determine if any such

9 institution meets any of the criteria in subsection

10 (b). If any such institution meets one or more of

11 such criteria, the Secretary shall inform the State in

12 which such institution is located that the institution

13 has met such criteria, and the State shall review the

14 institution pursuant to the standards in subsection

15 (d). The Secretary may determine that a State need

16 not review an institution if such institution only

17 meets the criterion in subsection (b)(10), such insti18 tution was previously reviewed by the State under

19 subsection (d), and the State determined in such

20 previous review that the institution did not violate

21 any of the standards in subsection (d).’’;

22 (2) in section 494C(i), by striking ‘‘sections 428

23 or 487’’ and inserting ‘‘section 428 or 487’’;

24 (3) in section 496(a)(2)(A)(i), by inserting ‘‘of

25 institutions’’ after ‘‘membership’’;
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1 (4) in section 496(a)(3)(A), by striking ‘‘sub2 paragraph (A)’’ and inserting ‘‘subparagraph

3 (A)(i)’’;

4 (5) in section 496(a)(5)—

5 (A) by striking the period at the end of

6 subparagraph (L) and inserting a semicolon;

7 and

8 (B) by inserting after subparagraph (L)

9 the following:

10 ‘‘except that subparagraphs (G), (H), (I), (J), and (L)

11 shall not apply to agencies or associations described in

12 paragraph (2)(A)(ii) of this subsection;’’;

13 (6) in section 496(c), by striking ‘‘for the pur14 pose of this title’’ and inserting ‘‘as a reliable au15 thority as to the quality of education or training of16 fered by an institution seeking to participate in the

17 programs authorized under this title’’;

18 (7) in section 496(l)(2)—

19 (A) by striking ‘‘institutution’’ and insert20 ing ‘‘institution’’; and

21 (B) by striking ‘‘association leading to the

22 suspension’’ and inserting ‘‘association, de23 scribed in paragraph (2)(A)(i), (2)(B), or

24 (2)(C) of subsection (a) of this section, leading

25 to the suspension’’;
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1 (8) in section 496(n)(1), by amending subpara2 graph (B) to read as follows:

3 ‘‘(B) site visits, including unannounced site vis4 its as appropriate, at accrediting agencies and asso5 ciations, and, at the Secretary’s discretion, at rep6 resentative member institutions.’’;

7 (9) in section 498(c)(3), by amending subpara8 graph (C) to read as follows:

9 ‘‘(C) such institution establishes to the satisfac10 tion of the Secretary, with the support of a report

11 of an independent certified public accountant pre12 pared under generally accepted accounting principles

13 (except as provided herein), that the institution has

14 sufficient resources (which shall include, as a cur15 rent asset, the equity in land, buildings, and other

16 facilities owned and occupied by such institution and

17 used to provide the education and training services

18 described in such institution’s official publications

19 and statements) to ensure against precipitous clo20 sure, including the ability to meet all of its financial

21 obligations, including refunds of institutional

22 charges and repayments to the Secretary for liabil23 ities and debts incurred in programs administered by

24 the Secretary; or’’;
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1 (10) in section 498(f), by inserting after the

2 second sentence the following: ‘‘The Secretary may

3 establish priorities by which institutions are to re4 ceive site visits, and may coordinate such visits with

5 site visits by States, guaranty agencies, and accred6 iting bodies in order to eliminate duplication, and re7 duce administrative burden.’’;

8 (11) in section 498(h)(1)(B), by amending

9 clause (iii) to read as follows:

10 ‘‘(iii) the Secretary determines that an in11 stitution that seeks to renew its certification is,

12 in the judgment of the Secretary, in an admin13 istrative or financial condition that may jeop14 ardize its ability to perform its financial respon15 sibilities under a program participation agree16 ment.’’;

17 (12) in section 498(h)(3), by striking ‘‘the Sec18 retary may terminate’’; and inserting ‘‘the Secretary

19 may, after providing the institution an opportunity

20 to show that the institution meets those responsibil21 ities, terminate’’;

22 (13) in section 498, by amending subsection

23 (i)(1) to read as follows:

24 ‘‘(i) TREATMENT OF CHANGES OF OWNERSHIP.—(1)

25 An eligible institution of higher education that has had
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1 a change in ownership resulting in a change of control

2 shall not qualify to participate in programs under this title

3 after the change in control (except as provided in para4 graph (3)) unless it establishes that it meets the require5 ments of section 481 (other than the requirements in sub6 sections (b)(5) and (c)(3)) and this section after such

7 change in control.’’;

8 (14) in section 498(i)(3), by amending subpara9 graph (A) to read as follows:

10 ‘‘(A) the sale or transfer, upon the death of an

11 owner of an institution, of the ownership interest of

12 the deceased in that institution to a family member

13 or to a person holding an ownership interest in that

14 institution; or’’;

15 (15) in section 498(j), by amending subsection

16 (j)(1) to read as follows:

17 ‘‘(j) TREATMENT OF BRANCHES.—(1) A branch of

18 an eligible institution of higher education, as defined pur19 suant to regulations of the Secretary, must be certified

20 under this subpart before it may participate as part of

21 such institution in a program under this title, except that

22 such branch shall not be required to meet the require23 ments of sections 481(b)(5) and 481(c)(3) prior to seeking

24 such certification. Such branch is required to be in exist-
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1 ence at least 2 years prior to seeking certification as a

2 main campus or free-standing institution.’’; and

3 (16) in section 498A(e), by striking ‘‘Act,’’ and

4 inserting ‘‘Act’’.

5 (i) AMENDMENTS TO TITLES V THROUGH XII OF

6 THE ACT.—The Act is amended—

7 (1) in section 505(b)(2)(D)(iii), by striking the

8 period and inserting a semicolon;

9 (2) in section 525, by striking subsection (c)

10 and inserting the following:

11 ‘‘(c) WAIVERS.—For purposes of giving special con12 sideration under section 523(d), a State may waive the

13 criteria contained in the first sentence of subsection (b)

14 for up to 25 percent of individuals receiving Paul Douglas

15 Teacher Scholarships on or after July 1, 1993.’’;

16 (3) in the first sentence of section 530A—

17 (A) by striking ‘‘means’’ and inserting ‘‘is

18 determined both during a scholar’s education

19 and when the scholar begins teaching and

20 means’’; and

21 (B) by striking ‘‘elementary and secondary

22 school teachers’’ each place it appears and in23 serting ‘‘preschool, elementary, and secondary

24 school teachers’’;
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1 (4) in section 535(b)(1)(C), by striking the

2 semicolon and inserting a period;

3 (5) in section 537(a), by inserting ‘‘IN’’ before

4 ‘‘GENERAL’’;

5 (6) in section 545(d), by striking ‘‘parts B, D,’’

6 and inserting ‘‘part B, D,’’;

7 (7) in section 580B, by striking ‘‘(a) Authoriza8 tion.—’’;

9 (8) in section 581(b)(2), by striking

10 ‘‘402A(g)(2)’’ and inserting ‘‘402A(g)’’;

11 (9) in section 597(d)(1), by striking ‘‘Develop12 ment and’’ and inserting ‘‘and Development’’;

13 (10) in section 602(a)(3), by striking ‘‘(1)(A)’’

14 and inserting ‘‘(1)’’;

15 (11) in section 602(a)(4), by striking ‘‘(1)(A)’’

16 and inserting ‘‘(1)’’;

17 (12) in section 603(a), by striking ‘‘RE18 SOURCES’’ and inserting ‘‘Resource’’;

19 (13) in section 607(c), by redesignating the last

20 paragraph as paragraph (3);

21 (14) in section 714, by striking ‘‘(a) IN GEN22 ERAL.—’’;

23 (15) in section 715(b)—

24 (A) by striking ‘‘(1) STATE GRANTS.—’’;
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1 (B) by redesignating subparagraphs (A)

2 and (B) as paragraphs (1) and (2);

3 (C) in paragraph (2) (as so redesignated)

4 by redesignating clauses (i), (ii), and (iii) as

5 subparagraphs (A), (B), and (C), respectively;

6 and

7 (D) by reducing the indentation of such

8 paragraphs (1) and (2) (as so redesignated) by

9 two em spaces;

10 (16) in section 725—

11 (A) by redesignating paragraphs (2)

12 through (5) as subparagraphs (3) through (6),

13 respectively; and

14 (B) by inserting after paragraph (1) the

15 following:

16 ‘‘(2) shall require that the first loans for capital

17 projects authorized under section 723 be made no

18 later than March 31, 1994, and that the provisions

19 of part B be administered under the Education De20 partment General Administrative Regulations

21 (EDGAR), if final regulations have not been com22 pleted by that date to implement the provisions of

23 part B;’’
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1 (17) in section 726, by inserting a period after

2 ‘‘title’’ the first time it appears and striking the re3 mainder of the sentence;

4 (18) in section 731(a), by striking ‘‘faculties,’’

5 and inserting ‘‘faculty,’’;

6 (19) in section 731(c), by striking ‘‘enactment

7 of’’;

8 (20) in section 734(e)—

9 (A) by striking ‘‘FACULTIES’’ and inserting

10 ‘‘FACULTY’’; and

11 (B) by striking ‘‘faculties’’ and inserting

12 ‘‘faculty’’;

13 (21) in section 781(b), by striking ‘‘Education

14 Amendments of 1992,’’ and inserting ‘‘Education

15 Amendments of 1992’’;

16 (22) in section 782(1)(A), by striking ‘‘out17 patient care of student’’ and inserting ‘‘outpatient

18 care of students’’;

19 (23) in the matter preceding paragraph (1) of

20 section 802(b), by inserting after ‘‘fiscal year’’ the

21 following: ‘‘the Secretary shall reserve such amount

22 as is necessary to make continuing awards to insti23 tutions of higher education that were, on the date of

24 enactment of the Higher Education Amendments of

25 1992, operating an existing cooperative education
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1 program under a multiyear project award and to

2 continue to pay to such institutions the Federal

3 share in effect on the day before such date of enact4 ment. Of the remainder of the amount appropriated

5 in such fiscal year’’;

6 (24) in section 803(b)(6)(A), by striking out

7 ‘‘data’’;

8 (25) in section 803(e)(2)—

9 (A) by striking ‘‘Mexican American’’ and

10 inserting ‘‘Mexican-American’’; and

11 (B) by striking ‘‘Mariana’’ and inserting

12 ‘‘Marianian’’;

13 (26) in section 901(b)(2), by striking ‘‘such

14 part’’ and inserting ‘‘such title’’;

15 (27) in section 922, by striking subsection (f)

16 and inserting the following:

17 ‘‘(f) INSTITUTIONAL PAYMENTS.—(1) The Secretary

18 shall pay to the institution of higher education, for each

19 individual awarded a fellowship under this part at such

20 institution, an institutional allowance. Except as provided

21 in paragraph (2), such allowance shall be—

22 ‘‘(A) $6,000 annually with respect to individ23 uals who first received fellowships under this part

24 prior to academic year 1993–1994;
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1 ‘‘(B) with respect to individuals who first re2 ceive fellowships during or after academic year

3 1993–1994—

4 ‘‘(i) $9,000 for the academic year 1993–

5 1994;

6 ‘‘(ii) for succeeding academic years, $9,000

7 adjusted annually thereafter in accordance with

8 inflation as determined by the Department of

9 Labor’s Consumer Price Index for the previous

10 calendar year.

11 ‘‘(2) The institutional allowance paid under para12 graph (1) shall be reduced by the amount the institution

13 charges and collects from a fellowship recipient for tuition

14 and other expenses as part of the recipient’s instructional

15 program.’’;

16 (28) in the second sentence of section

17 923(b)(1), by striking ‘‘granting of such fellowships’’

18 and all that follows through ‘‘set forth in this sec19 tion,’’ and inserting ‘‘granting of such fellowships

20 for an additional period of study not to exceed one

21 12-month period,’’;

22 (29) in section 923(b)(2), by striking out the

23 second and third sentences and inserting the follow24 ing: ‘‘Such period shall not exceed a total of 3 years,

25 consisting of not more than 2 years of support for
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1 study or research, and not more than 1 year of sup2 port for dissertation work provided that the student

3 has attained satisfactory progress prior to the dis4 sertation stage, except that the Secretary may pro5 vide by regulation for the granting of such fellow6 ships for an additional period of study not to exceed

7 one 12-month period, under special circumstances

8 which the Secretary determines would most effec9 tively serve the purposes of this part. The Secretary

10 shall make a determination to provide such 12-

11 month extension of an award to an individual fellow12 ship recipient for study or research upon review of

13 an application for such extension by the recipient.

14 The institution shall provide 2 years of support for

15 each student following the years of Federal

16 predissertation support under this part. Any student

17 receiving an award for graduate study leading to a

18 doctoral degree shall receive at least 1 year of super19 vised training in instruction during his or her doc20 toral program.’’;

21 (30) in section 923(b), by adding at the end the

22 following new paragraph:

23 ‘‘(3) CONTINUATION OF AWARDS UNDER PRIOR

24 LAW.—Notwithstanding any other provision of law,

25 in the case of an individual who was awarded a
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1 multiyear fellowship under this part before the date

2 of enactment of the Higher Education Amendments

3 of 1992, awards to such individual for the remainder

4 of such fellowship may, at the discretion of the insti5 tution of higher education attended by such individ6 ual, be subject to the requirements of this subsection

7 as in effect prior to such date of enactment. The in8 stitution shall be required to exercise such discretion

9 at the time that its application to the Secretary for

10 a grant under this part, and the amount of any such

11 grant, are being considered by the Secretary.’’;

12 (31) in section 924, by adding at the end there13 of the following new sentence: ‘‘Notwithstanding any

14 other provision of law, the Secretary may use funds

15 appropriated pursuant to this section for fiscal year

16 1994 to make continuation awards under section

17 923(b)(3) to individuals who would have been eligi18 ble for such awards in fiscal year 1993 if such sec19 tion had been in effect.’’;

20 (32) in section 931(a), by inserting after the

21 first sentence the following new sentence: ‘‘These fel22 lowships shall be awarded to students intending to

23 pursue a doctoral degree, except that fellowships

24 may be granted to students pursuing a master’s de25 gree in those fields in which the master’s degree is
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1 commonly accepted as the appropriate degree for a

2 tenured-track faculty position in a baccalaureate de3 gree-granting institution.’’;

4 (33) in the third sentence of section 932(a)(1),

5 by striking ‘‘doctoral’’ and inserting ‘‘graduate’’;

6 (34) in section 932(c), by striking ‘‘doctoral’’

7 and inserting ‘‘graduate’’;

8 (35) in section 933(b), by striking paragraph

9 (1) and inserting the following:

10 ‘‘(1) IN GENERAL.—(A) The Secretary shall (in

11 addition to stipends paid to individuals under this

12 part) pay to the institution of higher education, for

13 each individual awarded a fellowship under this part

14 at such institution, an institutional allowance. Ex15 cept as provided in subparagraph (B), such allow16 ance shall be—

17 ‘‘(i) $6,000 annually with respect to indi18 viduals who first received fellowships under this

19 part prior to academic year 1993–1994;

20 ‘‘(ii) with respect to individuals who first

21 receive fellowships during or after academic

22 year 1993–1994—

23 ‘‘(I) $9,000 for the academic year

24 1993–1994;
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1 ‘‘(II) for succeeding academic years,

2 $9,000 adjusted annually thereafter in ac3 cordance with inflation as determined by

4 the Department of Labor’s Consumer

5 Price Index for the previous calendar year.

6 ‘‘(B) The institutional allowance paid under

7 subparagraph (A) shall be reduced by the amount

8 the institution charges and collects from a fellowship

9 recipient for tuition and other expenses as part of

10 the recipient’s instructional program.’’;

11 (36) in section 941, by striking ‘‘the part’’ and

12 inserting ‘‘this part’’;

13 (37) in section 943(b), by striking ‘‘foreign lan14 guages or area studies’’ and inserting ‘‘foreign lan15 guages and area studies’’;

16 (38) in section 945, by striking subsection (c)

17 and inserting the following:

18 ‘‘(c) TREATMENT OF INSTITUTIONAL PAYMENTS.—

19 An institution of higher education that makes institutional

20 payments for tuition and fees on behalf of individuals sup21 ported by fellowships under this part in amounts that ex22 ceed the institutional payments made by the Secretary

23 pursuant to section 946(a) may count such payments to24 ward the amounts the institution is required to provide

25 pursuant to section 944(b)(2).’’;
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1 (39) in section 946, by striking subsection (a)

2 and inserting the following:

3 ‘‘(f) INSTITUTIONAL PAYMENTS.—(1) The Secretary

4 shall (in addition to stipends paid to individuals under this

5 part) pay to the institution of higher education, for each

6 individual awarded a fellowship under this part at such

7 institution, an institutional allowance. Except as provided

8 in paragraph (2), such allowance shall be—

9 ‘‘(A) $6,000 annually with respect to individ10 uals who first received fellowships under this part

11 prior to academic year 1993–1994;

12 ‘‘(B) with respect to individuals who first re13 ceive fellowships during or after academic year

14 1993–1994—

15 ‘‘(i) $9,000 for the academic year 1993–

16 1994;

17 ‘‘(ii) for succeeding academic years, $9,000

18 adjusted annually thereafter in accordance with

19 inflation as determined by the Department of

20 Labor’s Consumer Price Index for the previous

21 calendar year.

22 ‘‘(2) The institutional allowance paid under para23 graph (1) shall be reduced by the amount the institution

24 charges and collects from a fellowship recipient for tuition
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1 and other expenses as part of the recipient’s instructional

2 program.’’;

3 (40) in section 951(a), in the matter preceding

4 paragraph (1), by inserting ‘‘Pacific Islanders,’’

5 after ‘‘Native Americans,’’;

6 (41) in section 1004(a), by striking ‘‘part’’ and

7 inserting ‘‘subpart’’;

8 (42) in section 1011(d), by striking ‘‘part’’ and

9 inserting ‘‘subpart’’;

10 (43) in part D of title X, by redesignating sec11 tion 1181 as section 1081;

12 (44) in section 1081(d) (as so redesignated) by

13 inserting a comma after ‘‘this title)’’ and after ‘‘such

14 institutions’’;

15 (45) in section 1142(d)(2), by inserting ‘‘pro16 gram’’ after ‘‘literacy corps’’;

17 (46) in section 1201(a), by striking ‘‘subpart 3

18 of part H,’’ and inserting ‘‘subpart 2 of part H of

19 title IV of this Act,’’;

20 (47) by amending section 1204 to read as fol21 lows:

22 ‘‘TREATMENT OF TERRITORIES AND TERRITORIAL

23 STUDENT ASSISTANCE

24 ‘‘SEC. 1204. (a) The Secretary is required to waive

25 the eligibility criteria of any postsecondary education pro26 gram administered by the Department where such criteria
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1 do not take into account the unique circumstances in

2 Guam, the Virgin Islands, American Samoa, the Republic

3 of Palau, the Commonwealth of the Northern Mariana Is4 lands, and the freely associated states.

5 ‘‘(b) Notwithstanding any other provision of law, an

6 institution of higher education that is located in any of

7 the freely associated states, rather than a State, shall be

8 eligible, if otherwise qualified, for assistance under chapter

9 1 of subpart 2 of part A of title IV of this Act.’’;

10 (48) in section 1205, in the section heading, by

11 inserting ‘‘NATIONAL ADVISORY’’ before ‘‘COM12 MITTEE’’;

13 (49) in section 1205(a), by inserting ‘‘National

14 Advisory’’ before ‘‘Committee’’ the first place it ap15 pears;

16 (50) in paragraphs (1) and (6) of section

17 1205(c), by inserting ‘‘of title IV of this Act’’ after

18 ‘‘part H’’;

19 (51) in section 1205(f), by striking ‘‘Accredita20 tion and Institutional Eligibility’’ and inserting ‘‘In21 stitutional Quality and Integrity’’;

22 (52) in section 1209(f)(1), by striking ‘‘the

23 Act’’ and inserting ‘‘this Act’’;

24 (53) in title XII, by redesignating section 1211

25 (as added by section 6231 of the Omnibus Trade
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1 and Competitiveness Act of 1988) as section 1212;

2 and

3 (54) in section 1212(e)(2) (as so redesignated),

4 by inserting close quotation marks after ‘‘facilities’’

5 the first place it appears.

6 (j) AMENDMENTS TO THE 1992 AMENDMENTS.—The

7 Higher Education Amendments of 1992 is amended—

8 (1) in section 401(d)(2)(A), by inserting ‘‘the

9 first place it appears’’ before ‘‘the following:’’;

10 (2) in section 425(d)(1)—

11 (A) by inserting ‘‘the second sentence of’’

12 after ‘‘(1) in’’; and

13 (B) by striking ‘‘in the second sentence’’;

14 (3) in section 425(d)(4)—

15 (A) by inserting ‘‘the second sentence of’’

16 after ‘‘(4) in’’; and

17 (B) by striking ‘‘in the second sentence’’;

18 (4) in section 426(c), by striking ‘‘new sub19 sections’’ and inserting ‘‘new subsection’’;

20 (5) in section 432(a)(3), by striking

21 ‘‘427(a)(2)(C) and 428(b)(1)(M)’’ and inserting

22 ‘‘427(a)(2)(C), 428(b)(1)(M), and 428B(d)(1)’’;

23 (6) in section 432(a)—
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1 (A) by redesignating paragraphs (13),

2 (14), and (15), as paragraphs (14), (15), and

3 (16), respectively; and

4 (B) by inserting immediately after para5 graph (12) the following new paragraph:

6 ‘‘(13) that the changes made to subsections (a)

7 and (c) of section 435, as they relate to the elimi8 nation of vocational schools from the definition of an

9 eligible institution and to the repeal of the definition

10 of a vocational school, shall be effective as of the ef11 fective date of final regulations implementing section

12 481(e)(2)(A) of the Act;’’;

13 (7) in section 446, by striking subsection (c);

14 (8) in section 465(a), by amending paragraph

15 (1) to read as follows:

16 ‘‘(1) in subparagraph (A), by striking ‘and such

17 determination’ and all that follows through ‘such

18 chapter 1’;’’;

19 (9) in section 484, by inserting after subsection

20 (h) the following new subsection:

21 ‘‘(i) EFFECTIVE DATE.—The amendments made by

22 subsection (g) with respect to the addition of subsection

23 (n) shall be effective on and after December 1, 1987.’’;

24 (10) in section 486(a)(3), by striking ‘‘section

25 1’’ and inserting ‘‘section 103’’;
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1 (11) in section 498—

2 (A) by redesignating paragraphs (3), (4),

3 (5), (6), and (7) as paragraphs (4), (5), (6),

4 (7), and (8), respectively;

5 (B) by inserting immediately after para6 graph (2) the following new paragraph:

7 ‘‘(3) the changes made to section 481(b) and

8 (c), relating to the references to an eligible program,

9 shall be effective as of the effective date of final reg10 ulations implementing section 481(e)(2)(A) of the

11 Act;’’; and

12 (C) by amending paragraph (4) (as redes13 ignated by subparagraph (A)) to read as fol14 lows:

15 ‘‘(4) section 481(e), as added by such amend16 ments, relating to the definition of an eligible pro17 gram, shall be effective as of the effective date of

18 final regulations implementing paragraph (2)(A) of

19 such section;’’;

20 (12) in section 1409(b)(1), by striking ‘‘the As21 bestos Hazard Emergency Response Act’’ and in22 serting ‘‘section 202 of the Toxic Substances Control

23 Act (15 U.S.C. 2642)’’;

24 (13) in section 1422(9), by striking ‘‘has

25 placed’’ and inserting ‘‘have placed’’;
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1 (14) in section 1442(c), by striking ‘‘Chair2 man’’ and inserting ‘‘Chairperson’’;

3 (15) in section 1541(g), by striking ‘‘edu4 cational’’ and inserting ‘‘education’’; and

5 (16) in section 1554(a)(1), by striking ‘‘4’’ and

6 inserting ‘‘6’’.

7 (k) AMENDMENT TO THE 1986 AMENDMENT.—Sec8 tion 1507(a)(12) of the Higher Education Amendments

9 of 1986 is amended by striking the period and inserting

10 a semicolon.

11 (l) ACCREDITATION THROUGH TRANSFER OF CRED12 IT.—(1) An institution of higher education which satisfied

13 the requirements of section 1201(a)(5)(B) of the Act prior

14 to the enactment of the Higher Education Amendments

15 of 1992, shall be considered to meet the requirements of

16 section 1201(a)(5) of the Act if—

17 (A) within 60 days after the date of enactment

18 of the Higher Education Technical Amendments of

19 1993, such institution has applied for accreditation

20 by a nationally recognized accrediting agency or as21 sociation which the Secretary determines, pursuant

22 to subpart 2 of part H of title IV of the Act, to be

23 a reliable authority as to the quality of education or

24 training offered; and
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1 (B) within 2 years of the date of enactment of

2 the Higher Education Technical Amendments of

3 1993, such institution is accredited by such an ac4 crediting agency or association or, if not so accred5 ited, has been granted preaccreditation status by

6 such an agency or association that has been recog7 nized by the Secretary for the granting of

8 preaccreditation status, and the Secretary has deter9 mined that there is satisfactory assurance that the

10 institution will meet the accreditation standards of

11 such an agency or association within a reasonable

12 time.

13 (2) Paragraph (1) of this subsection shall be effective

14 July 23, 1992.

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