`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1507 Enrolled Bill (ENR)]

        S.1507
                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
  the fifth day of January, one thousand nine hundred and ninety-three


                                 An Act

  
 
  To make certain technical and conforming amendments to the Higher 
Education

                              Act of 1965.

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

SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Higher Education 
Technical Amendments of 1993''.
    (b) References.--References in this Act to ``the Act'' are 
references to the Higher Education Act of 1965.

SEC. 2. TECHNICAL AMENDMENTS.

    (a) Amendments to Titles I, II, and III of the Act.--Titles I, II, 
and III of the Act (20 U.S.C. 1001 et seq., 1021 et seq., 1051 et seq.) 
are amended--
        (1) in section 103(b)(2), by increasing the indentation of 
    subparagraphs (A) through (E) by two em spaces;
        (2) in section 104(b)(5)(C), by striking ``subpart'' and 
    inserting ``part'';
        (3) in section 241(a)(2)(B), by striking ``information service'' 
    and inserting ``information science'';
        (4) in section 301(a)(2), by striking the comma after 
    ``planning'';
        (5) in section 312(c)(2), by inserting ``the'' before ``second 
    fiscal year'' the second place it appears;
        (6) in section 313(b), by inserting ``, except that for the 
    purpose of this subsection a grant under section 354(a)(1) shall not 
    be considered a grant under this part'' before the period.
        (7) in section 316(c), by striking ``Such programs may include--
    '' and inserting the following:
        ``(2) Examples of authorized activities.--Such programs may 
    include--'';
        (8) by reducing by two em spaces the indentation of each of the 
    following provisions: sections 323(b)(3), 331(a)(2)(D), and 
    331(b)(5);
        (9) in section 326(e)(2)--
            (A) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A);
            (B) by striking subparagraph (B); and
            (C) by redesignating subparagraph (C) as subparagraph (B);
        (10) in section 331(b)(2), by reducing the indentation of 
    subparagraphs (B) and (C) by four em spaces; and
        (11) in section 331(b)(5), by striking ``an endowment'' and 
    inserting ``An endowment''.
    (b) Amendments to Part A of Title IV of the Act.--Part A of title IV 
of the Act (20 U.S.C. 1070 et seq.) is amended--
        (1) in section 401(a)(1), by inserting ``, except that this 
    sentence shall not be construed to limit the authority of the 
    Secretary to place an institution on a reimbursement system of 
    payment'' before the period at the end of the second sentence;
        (2) in section 401(b)(6), in the matter preceding subparagraph 
    (A), by striking ``single 12-month period'' and inserting ``single 
    award year'';
        (3) in section 401(b)(6)(A), by striking ``a baccalaureate'' and 
    inserting ``an associate or baccalaureate'';
        (4) in section 401(b)(6)(B), by striking ``a bachelor's'' and 
    inserting ``an associate or baccalaureate'';
        (5) in section 401(i), by striking ``part D of title V'' and 
    inserting ``subtitle D of title V'';
        (6) in section 402A(b), by striking paragraph (2) and inserting 
    the following:
        ``(2) Duration.--Grants or contracts made under this chapter 
    shall be awarded for a period of 4 years, except that--
            ``(A) the Secretary shall award such grants or contracts for 
        5 years to applicants whose peer review scores were in the 
        highest 10 percent of scores of all applicants receiving grants 
        or contracts in each program competition for the same award 
        year; and
            ``(B) grants made under section 402G shall be awarded for a 
        period of 2 years.'';
        (7) in the second sentence of section 402A(c)(1), by inserting 
    before the period the following ``, except that in the case of the 
    programs authorized in sections 402E and 402G, the level of 
    consideration given to prior experience shall be the same as the 
    level of consideration given this factor in the other programs 
    authorized in this chapter'';
        (8) in section 402A(c)(2)(A), by inserting ``with respect to 
    grants made under section 402G, and'' after ``Except'';
        (9) in section 402A, by amending subsection (e) to read as 
    follows:
    ``(e) Documentation of Status as a Low-Income Individual.--(1) 
Except in the case of an independent student, as defined in section 
480(d), documentation of an individual's status pursuant to subsection 
(g)(2) shall be made by providing the Secretary with--
        ``(A) a signed statement from the individual's parent or legal 
    guardian;
        ``(B) verification from another governmental source;
        ``(C) a signed financial aid application; or
        ``(D) a signed United States or Puerto Rico income tax return.
    ``(2) In the case of an independent student, as defined in section 
480(d), documentation of an individual's status pursuant to subsection 
(g)(2) shall be made by providing the Secretary with--
        ``(A) a signed statement from the individual;
        ``(B) verification from another governmental source;
        ``(C) a signed financial aid application; or
        ``(D) a signed United States or Puerto Rico income tax 
    return.'';
        (10) in section 402C(c), by striking ``and foreign'' and 
    inserting ``foreign'';
        (11) in section 402D(c)(2), by striking ``either'';
        (12) in section 404A(1), by striking ``high-school'' and 
    inserting ``high school'';
        (13) in section 404B(a)(1)--
            (A) by striking ``section 403C'' and inserting ``section 
        404D''; and
            (B) by striking ``section 403D'' and inserting ``section 
        404C'';
        (14) in section 404B(a)(2), by inserting ``shall'' after 
    ``paragraph (1)'';
        (15) in section 404C(b)(3)(A), by striking ``grades 12'' and 
    inserting ``grade 12'';
        (16) in section 404C(b)(3)(D)(i), by striking ``section 401D of 
    this subpart'' and inserting ``section 402D'';
        (17) in section 404C(b)(3)(D)(ii), by striking ``section 401D of 
    this part'' and inserting ``section 402D'';
        (18) in section 404D(d)(3), by striking ``program of 
    instruction'' and inserting ``program of undergraduate 
    instruction'';
        (19) in section 404D(d)(4), by striking ``the'' the first place 
    it appears;
        (20) in section 404E(c), by striking ``tuition'' and inserting 
    ``financial'';
        (21) in section 404F(a), by striking ``under this section shall 
    biannually'' and inserting ``under this chapter shall biennially'';
        (22) in section 404F(c), by striking ``biannually'' and 
    inserting ``biennially'';
        (23) in section 404G--
            (A) by striking ``an appropriation'' and inserting ``to be 
        appropriated''; and
            (B) by striking the second sentence and inserting the 
        following: ``For any fiscal year for which funds are authorized 
        to be appropriated to carry out subpart 4 of part A of this 
        title, no amount may be expended to carry out the provisions of 
        this chapter unless the amount appropriated for such fiscal year 
        to carry out such subpart 4 exceed $60,000,000.'';
        (24) in section 409A(1), by striking ``private financial'' and 
    inserting ``private student financial'';
        (25) in section 413C(d)--
            (A) by striking ``, a reasonable proportion of the 
        institution's allocation shall be made available to such 
        students, except that'' and inserting ``and''; and
            (B) by striking ``5 percent of the need'' and inserting ``5 
        percent of the total financial need'';
        (26) in section 413D(d)(3)(C), by striking ``three-fourths in 
    the Pell Grant family size offset'' and inserting ``150 percent of 
    the difference between the income protection allowance for a family 
    of five with one in college and the income protection allowance for 
    a family of six with one in college'';
        (27) in section 415C(b)(7), by striking the period at the end 
    and inserting a semicolon;
        (28) in section 419C(b)--
            (A) by striking ``for a period of not more than 4 years for 
        the first 4 years of study'' and inserting ``for a period of not 
        less than 1 or more than 4 years during the first 4 years of 
        study''; and
            (B) by adding at the end the following:
``The State educational agency administering the program in a State 
shall have discretion to determine the period of the award (within the 
limits specified in the preceding sentence), except that--
        ``(1) if the amount appropriated for this subpart for any fiscal 
    year exceeds the amount appropriated for this subpart for fiscal 
    year 1993, the Secretary shall identify to each State educational 
    agency the number of scholarships available to that State under 
    section 419D(b) that are attributable to such excess;
        ``(2) the State educational agency shall award not less than 
    that number of scholarships for a period of 4 years.''; and
        (29) in section 419D, by adding at the end the following new 
    subsection:
    ``(d) Consolidation by Insular Areas Prohibited.--Notwithstanding 
section 501 of Public Law 95-1134 (48 U.S.C. 1469a), funds allocated 
under this part to an Insular Area described in that section shall be 
deemed to be direct payments to classes of individuals, and the Insular 
Area may not consolidate such funds with other funds received by the 
Insular Area from any department or agency of the United States 
Government.''; and
        (30) in section 419G(b), by striking ``the District of Columbia, 
    the Commonwealth of Puerto Rico,'' and inserting ``the Federated 
    States of Micronesia, the Republic of the Marshall Islands,''.
    (c) Amendments to Part B of Title IV of the Act.--Part B of title IV 
of the Act (20 U.S.C. 1071 et seq.) is amended--
        (1) in section 422(c)(7), by striking the semicolon at the end 
    of subparagraph (B) and inserting a period;
        (2) in section 425(a)(1)(A)--
            (A) by striking clauses (ii) and (iii) and inserting the 
        following:
            ``(ii) in the case of a student at an eligible institution 
        who has successfully completed such first year but has not 
        successfully completed the remainder of a program of 
        undergraduate education--
                ``(I) $3,500; or
                ``(II) if such student is enrolled in a program of 
            undergraduate education, the remainder of which is less than 
            one academic year, the maximum annual loan amount that such 
            student may receive may not exceed the amount that bears the 
            same ratio to the amount specified in subclause (I) as such 
            remainder measured in semester, trimester, quarter, or clock 
            hours bears to one academic year;
            ``(iii) in the case of a student at an eligible institution 
        who has successfully completed the first and second years of a 
        program of undergraduate education but has not successfully 
        completed the remainder of such program--
                ``(I) $5,500; or
                ``(II) if such student is enrolled in a program of 
            undergraduate education, the remainder of which is less than 
            one academic year, the maximum annual loan amount that such 
            student may receive may not exceed the amount that bears the 
            same ratio to the amount specified in subclause (I) as such 
            remainder measured in semester, trimester, quarter, or clock 
            hours bears to one academic year;'' and
            (B) by striking the semicolon at the end of clause (iv) and 
        inserting a period;
        (3) in section 425(a)(1), by inserting at the end thereof the 
    following:
        ``(C) For the purpose of subparagraph (A), the number of years 
    that a student has completed in a program of undergraduate education 
    shall include any prior enrollment in an eligible program of 
    undergraduate education for which the student was awarded an 
    associate or baccalaureate degree, if such degree is required by the 
    institution for admission to the program in which the student is 
    enrolled.'';
        (4) in the matter following subclause (II) of section 
    427(a)(2)(C)(i), by inserting ``section'' before ``428B or 428C'';
        (5) in section 427A(e)(1), by striking ``under this part,'' and 
    inserting ``under section 427, 428, or 428H of this part,'';
        (6) in section 427A(i)(1), by amending subparagraph (B) to read 
    as follows:
            ``(B)(i) during any period in which a student is eligible to 
        have interest payments paid on his or her behalf by the 
        Government pursuant to section 428(a), by crediting the excess 
        interest to the Government; or
            ``(ii) during any other period, by crediting such excess 
        interest to the reduction of principal to the extent provided in 
        paragraph (5) of this subsection.'';
        (7) in section 427A(i)(2)(B)--
            (A) by striking ``outstanding principal balance'' and 
        inserting ``average daily principal balance''; and
            (B) by striking ``at the end of'' and inserting ``during'';
        (8) in section 427A(i)(4)(B)--
            (A) by striking ``outstanding principal balance'' and 
        inserting ``average daily principal balance''; and
            (B) by striking ``at the end of'' and inserting ``during'';
        (9) in section 427A(i)(5)--
            (A) in the first sentence--
                (i) by striking ``paragraph (2)'' and inserting 
            ``paragraphs (2) and (4)''; and
                (ii) by striking ``principle'' and inserting 
            ``principal''; and
            (B) in the second sentence by inserting before the period at 
        the end the following: ``, but the excess interest shall be 
        calculated and credited to the Secretary'';
        (10) in section 427A(i), by adding at the end the following new 
    paragraph:
        ``(7) Conversion to variable rate.--(A) Subject to subparagraphs 
    (C) and (D), a lender or holder shall convert the interest rate on a 
    loan that is made pursuant to this part and is subject to the 
    provisions of this subsection to a variable rate. Such conversion 
    shall occur not later than January 1, 1995, and, commencing on the 
    date of conversion, the applicable interest rate for each 12-month 
    period beginning on July 1 and ending on June 30 shall be determined 
    by the Secretary on the June 1 preceding each such 12-month period 
    and be equal to the sum of (i) the bond equivalent rate of the 91-
    day Treasury bills auctioned at the final auction prior to such June 
    1; and (ii) 3.25 percent in the case of loans described in paragraph 
    (1), or 3.10 percent in the case of loans described in paragraph 
    (3).
        ``(B) In connection with the conversion specified in 
    subparagraph (A) for any period prior to such conversion, and 
    subject to paragraphs (C) and (D), a lender or holder shall convert 
    the interest rate to a variable rate on a loan that is made pursuant 
    to this part and is subject to the provisions of this subsection to 
    a variable rate. The interest rates for such period shall be reset 
    on a quarterly basis and the applicable interest rate for any 
    quarter or portion thereof shall equal the sum of (i) the average of 
    the bond equivalent rates of 91-Treasury bills auctioned for the 
    preceding 3-month period, and (ii) 3.25 percent in the case of loans 
    described in paragraph (1) or 3.10 percent in the case of loans 
    described in paragraph (3). The rebate of excess interest derived 
    through this conversion shall be provided to the borrower as 
    specified in paragraph (5) for loans described in paragraph (1) or 
    to the Government and borrower as specified in paragraph (3).
        ``(C) A lender or holder of a loan being converted pursuant to 
    this paragraph shall complete such conversion on or before January 
    1, 1995. The lender or holder shall notify the borrower that the 
    loan shall be converted to a variable interest rate and provide a 
    description of the rate to the borrower not later than 30 days prior 
    to the conversion. The notice shall advise the borrower that such 
    rate shall be calculated in accordance with the procedures set forth 
    in this paragraph and shall provide the borrower with a 
    substantially equivalent benefit as the adjustment otherwise 
    provided for under this subsection. Such notice may be incorporated 
    into the disclosure required under section 433(b) if such disclosure 
    has not been previously made.
        ``(D) The interest rate on a loan converted to a variable rate 
    pursuant to this paragraph shall not exceed the maximum interest 
    rate applicable to the loan prior to such conversion.
        ``(E) Loans on which the interest rate is converted in 
    accordance with subparagraph (A) or (B) shall not be subject to any 
    other provisions of this subsection.'';
        (11) in section 428(a)(2)(C)(i), by striking the period at the 
    end and inserting ``; and'';
        (12) in section 428(a)(2)(E), by inserting ``or 428H'' after 
    ``428A'';
        (13) in section 428(b)(1)(A)--
            (A) by striking clauses (ii) and (iii) and inserting the 
        following:
                ``(ii) in the case of a student at an eligible 
            institution who has successfully completed such first year 
            but has not successfully completed the remainder of a 
            program of undergraduate education--

                    ``(I) $3,500; or
                    ``(II) if such student is enrolled in a program of 
                undergraduate education, the remainder of which is less 
                than one academic year, the maximum annual loan amount 
                that such student may receive may not exceed the amount 
                that bears the same ratio to the amount specified in 
                subclause (I) as such remainder measured in semester, 
                trimester, quarter, or clock hours bears to one academic 
                year;

                ``(iii) in the case of a student at an eligible 
            institution who has successfully completed the first and 
            second years of a program of undergraduate education but has 
            not successfully completed the remainder of such program--

                    ``(I) $5,500; or
                    ``(II) if such student is enrolled in a program of 
                undergraduate education, the remainder of which is less 
                than one academic year, the maximum annual loan amount 
                that such student may receive may not exceed the amount 
                that bears the same ratio to the amount specified in 
                subclause (I) as such remainder measured in semester, 
                trimester, quarter, or clock hours bears to one academic 
                year;'';

            (B) by redesignating clause (iv) as clause (v); and
            (C) by inserting after clause (iii) the following:
                ``(iv) in the case of a student who has received an 
            associate or baccalaureate degree and is enrolled in an 
            eligible program for which the institution requires such 
            degree for admission, the number of years that a student has 
            completed in a program of undergraduate education shall, for 
            the purposes of clauses (ii) and (iii), include any prior 
            enrollment in the eligible program of undergraduate 
            education for which the student was awarded such degree; 
            and'';
        (14) in section 428(b)(1)(B), by striking the matter following 
    clause (ii) and inserting the following:
        ``except that the Secretary may increase the limit applicable to 
        students who are pursuing programs which the Secretary 
        determines are exceptionally expensive;'';
        (15) in section 428(b)(1), by amending subparagraph (N) to read 
    as follows:
            ``(N) provides that funds borrowed by a student--
                ``(i) are disbursed to the institution by check or other 
            means that is payable to, and requires the endorsement or 
            other certification by, such student; or
                ``(ii) in the case of a student who is studying outside 
            the United States in a program of study abroad that is 
            approved for credit by the home institution at which such 
            student is enrolled or at an eligible foreign institution, 
            are, at the request of the student, disbursed directly to 
            the student by the means described in clause (i), unless 
            such student requests that the check be endorsed, or the 
            funds transfer authorized, pursuant to an authorized power-
            of-attorney;'';
        (16) in section 428(b)(1)(U)--
            (A) by striking ``this clause;'' and inserting ``this 
        clause''; and
            (B) by inserting a comma after ``emergency action'' each 
        place it appears;
        (17) in section 428(b)(1)--
            (A) by striking subparagraphs (V) and (W); and
            (B) by redesignating subparagraphs (X), (Y), and (Z) as 
        subparagraphs (V), (W), and (X), respectively;
        (18) in section 428(b)(2)(F)(i), by striking ``each to provide a 
    separate notice'' and inserting ``either jointly or separately to 
    provide a notice'';
        (19) in section 428(b)(2)(F)(ii), by striking ``transferor'' and 
    inserting ``transferee'';
        (20) in section 428(b)(2)(F)(ii)(I), by striking ``to another 
    holder'';
        (21) in section 428(b)(2)(F)(ii)(II), by striking ``such other'' 
    and inserting ``the new'';
        (22) in section 428(b), by amending paragraph (7) to read as 
    follows:
        ``(7) Repayment period.--(A) In the case of a loan made under 
    section 427 or 428, the repayment period shall exclude any period of 
    authorized deferment or forbearance and shall begin--
            ``(i) the day after 6 months after the date the student 
        ceases to carry at least one-half the normal full-time academic 
        workload (as determined by the institution); or
            ``(ii) on an earlier date if the borrower requests and is 
        granted a repayment schedule that provides for repayment to 
        commence at an earlier date.
        ``(B) In the case of a loan made under section 428H, the 
    repayment period shall exclude any period of authorized deferment or 
    forbearance, and shall begin as described in clause (i) or (ii) of 
    subparagraph (A), but interest shall begin to accrue or be paid by 
    the borrower on the day the loan is disbursed.
        ``(C) In the case of a loan made under section 428A, 428B, or 
    428C, the repayment period shall begin on the day the loan is 
    disbursed, or, if the loan is disbursed in multiple installments, on 
    the day of the last such disbursement, and shall exclude any period 
    of authorized deferment or forbearance.'';
        (23) in section 428(b), by adding at the end thereof the 
    following new paragraph:
        ``(8) Means of disbursement of loan proceeds.--Nothing in this 
    title shall be interpreted to prohibit the disbursement of loan 
    proceeds by means other than by check or to allow the Secretary to 
    require checks to be made co-payable to the institution and the 
    borrower.'';
        (24) in section 428(c)(1)(A), by striking the last sentence and 
    inserting the following: ``A guaranty agency shall file a claim for 
    reimbursement with respect to losses under this subsection within 45 
    days after the guaranty agency discharges its insurance obligation 
    on the loan.'';
        (25) in section 428(c)(2)(G), by striking ``demonstrates'' and 
    inserting ``certifies'';
        (26) in section 428(c)(3) by striking subparagraph (A) and 
    inserting the following:
            ``(A) shall contain provisions providing that--
                ``(i) upon written request, a lender shall grant a 
            borrower forbearance, renewable at 12-month intervals, on 
            terms agreed to in writing by the parties to the loan with 
            the approval of the insurer, and otherwise consistent with 
            the regulations of the Secretary, if the borrower--

                    ``(I) is serving in a medical or dental internship 
                or residency program, the successful completion of which 
                is required to begin professional practice or service, 
                or is serving in a medical or dental internship or 
                residency program leading to a degree or certificate 
                awarded by an institution of higher education, a 
                hospital, or a health care facility that offers 
                postgraduate training, provided that if the borrower 
                qualifies for a deferment under section 
                427(a)(2)(C)(vii) or subsection (b)(1)(M)(vii) of this 
                section as in effect prior to the enactment of the 
                Higher Education Amendments of 1992, or section 
                427(a)(2)(C) or subsection (b)(1)(M) of this section as 
                amended by such amendments, the borrower has exhausted 
                his or her eligibility for such deferment;
                    ``(II) has a debt burden under this title that 
                equals or exceeds 20 percent of income; or
                    ``(III) is serving in a national service position 
                for which the borrower receives a national service 
                educational award under the National and Community 
                Service Trust Act of 1993;

                ``(ii) the length of the forbearance granted by the 
            lender--

                    ``(I) under clause (i)(I) shall equal the length of 
                time remaining in the borrower's medical or dental 
                internship or residency program, if the borrower is not 
                eligible to receive a deferment described in such 
                clause, or such length of time remaining in the program 
                after the borrower has exhausted the borrower's 
                eligibility for such deferment;
                    ``(II) under clause (i)(II) shall not exceed 3 
                years; or
                    ``(III) under clause (i)(III) shall not exceed the 
                period for which the borrower is serving in a position 
                described in such clause; and

                ``(iii) no administrative or other fee may be charged in 
            connection with the granting of a forbearance under clause 
            (i), and no adverse information regarding a borrower may be 
            reported to a credit bureau organization solely because of 
            the granting of such forbearance;'';
        (27) in section 428(e)(2)(A)--
            (A) by striking ``(i)'';
            (B) by striking ``(I)'' and inserting ``(i)''; and
            (C) by striking ``(II)'' and inserting ``(ii)'';
        (28) in section 428(j)(2), in the matter preceding subparagraph 
    (A), by striking ``lender of last resort'' and inserting ``lender-
    of-last-resort'';
        (29) in section 428A(b)(1), by striking subparagraph (B) and 
    inserting the following:
            ``(B) In the case of a student at an eligible institution 
        who has successfully completed such first and second years but 
        has not successfully completed the remainder of a program of 
        undergraduate education--
                ``(i) $5,000; or
                ``(ii) if such student is enrolled in a program of 
            undergraduate education, the remainder of which is less than 
            one academic year, the maximum annual loan amount that such 
            student may receive may not exceed the amount that bears the 
            same ratio to the amount specified in subclause (I) as such 
            remainder measured in semester, trimester, quarter, or clock 
            hours bears to one academic year.'';
        (30) in section 428A(b)(1)--
            (A) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (B) by inserting after subparagraph (B) the following new 
        subparagraph:
            ``(C) For the purposes of this paragraph, the number of 
        years that a student has completed in a program of undergraduate 
        education shall include any prior enrollment in an eligible 
        program of undergraduate education for which the student was 
        awarded an associate or baccalaureate degree, if such degree is 
        required by the institution for admission to the program in 
        which the student is enrolled.'';
        (31) in section 428A(b)(3)(B)(i), by striking ``section 428'' 
    and inserting ``sections 428 and 428H'';
        (32) in section 428A(c)(1), by striking ``sections 427 or 
    428(b)'' and inserting ``section 427 or 428(b)'';
        (33) in section 428C(a)(3)(A), by striking ``delinquent or 
    defaulted borrower who will reenter repayment through loan 
    consolidation'' and inserting ``defaulted borrower who has made 
    arrangements to repay the obligation on the defaulted loans 
    satisfactory to the holders of the defaulted loans'';
        (34) in section 428C(a)(4)(A), by striking ``, except for loans 
    made to parent borrowers under section 428B as in effect prior to 
    the enactment of the Higher Education Amendments of 1986'';
        (35) in section 428C(a)(4)(C), by striking ``part C'' and 
    inserting ``part A'';
        (36) in section 428C(c)(2)(A)(vi), by inserting a period after 
    ``30 years'';
        (37) in section 428C(c)(3)(A), by inserting ``be an amount'' 
    before ``equal to'';
        (38) in section 428F(a)(2)--
            (A) by striking ``this paragraph'' and inserting ``paragraph 
        (1) of this subsection''; and
            (B) by striking ``this section'' and inserting ``this 
        subsection'';
        (39) in section 428F(a)(4), by striking ``this paragraph'' and 
    inserting ``paragraph (1) of this subsection'';
        (40) in section 428F(b), by adding at the end thereof the 
    following new sentence: ``A borrower may only obtain the benefit of 
    this subsection with respect to renewed eligibility once.'';
        (41) in section 428G(c)(3), by striking ``disbursed'' and 
    inserting ``disbursed by the lender'';
        (42) in section 428H(d)(2), by amending subparagraph (B) to read 
    as follows:
            ``(B) in the case of a student at an eligible institution 
        who has successfully completed such first and second years but 
        has not successfully completed the remainder of a program of 
        undergraduate education--
                ``(i) $5,000; or
                ``(ii) if such student is enrolled in a program of 
            undergraduate education, the remainder of which is less than 
            one academic year, the maximum annual loan amount that such 
            student may receive may not exceed the amount that bears the 
            same ratio to the amount specified in subclause (I) as such 
            remainder measured in semester, trimester, quarter, or clock 
            hours bears to one academic year;'';
        (43) in section 428H(e)(1)--
            (A) by striking ``shall commence 6 months after the month in 
        which the student ceases to carry at least one-half the normal 
        full-time workload as determined by the institution.'' and 
        inserting ``shall begin at the beginning of the repayment period 
        described in section 428(b)(7).'';
            (B) by adding at the end thereof the following new sentence: 
        ``Not less than 30 days prior to the anticipated commencement of 
        such repayment period, the holder of such loan shall provide 
        notice to the borrower that interest will accrue before 
        repayment begins and of the borrower's option to begin loan 
        repayment at an earlier date.'';
        (44) in section 428H(e)(4), by striking ``427A(e)'' and 
    inserting ``427A'';
        (45) in section 428H, by redesignating subsection (l) as 
    subsection (h);
        (46) in section 428I(g), by striking ``the Federal False Claims 
    Act'' and inserting ``section 3729 of title 31, United States 
    Code,'';
        (47) in section 428J(b)(1), by striking ``sections 428A, 428B, 
    or 428C'' and inserting ``section 428A, 428B, or 428C'';
        (48) in section 428J(b)(1)(B), by striking ``agrees in writing 
    to volunteer for service'' and inserting ``serves as a full-time 
    volunteer'';
        (49) in section 428J(c)(1), by striking ``academic year'' each 
    place it appears and inserting ``year of service'';
        (50) in the heading for section 428J(d), by striking ``of 
    Eligibility'' and inserting ``to Eligible'';
        (51) in section 428J, by amending subsection (e) to read as 
    follows:
    ``(e) Application for Repayment.--
        ``(1) In general.--Each eligible individual desiring loan 
    repayment under this section shall submit a complete and accurate 
    application to the Secretary at such time, in such manner, and 
    containing such information as the Secretary may reasonably require. 
    Loan repayment under this section shall be on a first-come, first-
    served basis and subject to the availability of appropriations.
        ``(2) Conditions.--An eligible individual may apply for 
    repayment after completing each year of qualifying service. The 
    borrower shall receive forbearance while engaged in qualifying 
    service unless the borrower is in deferment while so engaged.'';
        (52) in section 430A(f)(1), by striking the comma at the end and 
    inserting a semicolon;
        (53) in the matter preceding paragraph (1) of section 433(b), by 
    striking ``60 days'' and inserting ``30 days'';
        (54) in section 433(e), by striking ``section 428A, 428B,'' and 
    inserting ``sections 428A, 428B,'';
        (55) in section 435(a), by inserting after paragraph (2) the 
    following new paragraph:
        ``(3) Appeals based upon allegations of improper loan 
    servicing.--An institution that--
            ``(A) is subject to loss of eligibility for the Federal 
        Family Education Loan Program pursuant to paragraph (2)(A) of 
        this subsection;
            ``(B) is subject to loss of eligibility for the Federal 
        Supplemental Loans for Students pursuant to section 428A(a)(2); 
        or
            ``(C) is an institution whose cohort default rate equals or 
        exceeds 20 percent for the most recent year for which data are 
        available;
    may include in its appeal of such loss or rate a defense based on 
    improper loan servicing (in addition to other defenses). In any such 
    appeal, the Secretary shall take whatever steps are necessary to 
    ensure that such institution has access to a representative sample 
    (as determined by the Secretary) of the relevant loan servicing and 
    collection records of the affected guaranty agencies and loan 
    servicers for a reasonable period of time, not to exceed 30 days. 
    The Secretary shall reduce the institution's cohort default rate to 
    reflect the percentage of defaulted loans in the representative 
    sample that are required to be excluded pursuant to subsection 
    (m)(1)(B).'';
        (56) in section 435(d)(2)(D), by striking ``lender; and'' and 
    inserting ``lender;'';
        (57) in section 435(d)(2), by increasing the indentation of the 
    matter following subparagraph (F) by two em spaces;
        (58) in section 435(d)(3), by striking ``435(o)'' and inserting 
    ``435(m)'';
        (59) in section 435(m)(1)(A), by striking ``428 or 428A'' and 
    inserting ``428, 428A, or 428H,'';
        (60) in section 435(m)--
            (A) by inserting at the end of paragraph (1)(A) the 
        following new sentence: ``The Secretary shall require that each 
        guaranty agency that has insured loans for current or former 
        students of the institution afford such institution a reasonable 
        opportunity (as specified by the Secretary) to review and 
        correct errors in the information required to be provided to the 
        Secretary by the guaranty agency for the purposes of calculating 
        a cohort default rate for such institution, prior to the 
        calculation of such rate.'';
            (B) in paragraph (1)(B), by striking ``and, in calculating'' 
        and all that follows through the period at the end thereof and 
        inserting the following: ``and, in considering appeals with 
        respect to cohort default rates pursuant to subsection (a)(3), 
        exclude any loans which, due to improper servicing or 
        collection, would, as demonstrated by the evidence submitted in 
        support of the institution's timely appeal to the Secretary, 
        result in an inaccurate or incomplete calculation of such cohort 
        default rate.'';
        (61) in section 435(m)(2)(D)--
            (A) by inserting ``(or the portion of a loan made under 
        section 428C that is used to repay a loan made under section 
        428A)'' after ``section 428A'' the first place it appears; and
            (B) by inserting ``(or a loan made under section 428C a 
        portion of which is used to repay a loan made under section 
        428A)'' after ``section 428A'' the second place it appears;
        (62) in section 435(m), by adding at the end thereof the 
    following new paragraph:
        ``(4) Collection and reporting of cohort default rates.--(A) The 
    Secretary shall collect data from all insurers under this part and 
    shall publish not less often than once every fiscal year a report 
    showing default data for each category of institution, including (i) 
    4-year public institutions, (ii) 4-year private institutions, (iii) 
    2-year public institutions, (iv) 2-year private institutions, (v) 4-
    year proprietary institutions, (vi) 2-year proprietary institutions, 
    and (vii) less than 2-year proprietary institutions.
        ``(B) The Secretary may designate such additional subcategories 
    within the categories specified in subparagraph (A) as the Secretary 
    deems appropriate.
        ``(C) The Secretary shall publish not less often than once every 
    fiscal year a report showing default data for each institution for 
    which a cohort default rate is calculated under this subsection.'';
        (63) in section 437, by amending subsection (b) to read as 
    follows:
    ``(b) Payment of Claims on Loans in Bankruptcy.--The Secretary shall 
pay to the holder of a loan described in section 428(a)(1) (A) or (B), 
428A, 428B, 428C, or 428H, the amount of the unpaid balance of principal 
and interest owed on such loan--
        ``(1) when the borrower files for relief under chapter 12 or 13 
    of title 11, United States Code;
        ``(2) when the borrower who has filed for relief under chapter 7 
    or 11 of such title commences an action for a determination of 
    dischargeability under section 523(a)(8)(B) of such title; or
        ``(3) for loans described in section 523(a)(8)(A) of such title, 
    when the borrower files for relief under chapter 7 or 11 of such 
    title.'';
        (64) in section 437(c)(1)--
            (A) by striking ``If a student borrower'' and inserting ``If 
        a borrower'';
            (B) by striking ``under this part is unable'' and inserting 
        ``under this part and the student borrower, or the student on 
        whose behalf a parent borrowed, is unable''; and
            (C) by striking ``in which the borrower is enrolled'' and 
        inserting ``in which such student is enrolled''; and
        (65) in section 437(c)(4), by adding at the end the following 
    new sentence: ``The amount discharged under this subsection shall be 
    treated the same as loans under section 465(a)(5) of this title.'';
        (66) in the matter preceding paragraph (1) of section 437A(a), 
    by striking ``under subsection (d)'';
        (67) in section 437A(c)(2), by inserting a period at the end;
        (68) in section 437A, by striking subsection (e); and
        (69) in section 439(r)(12), by striking ``section 522'' and 
    inserting ``section 552''.
    (d) Amendment to Part C of Title IV of the Act.--Part C of title IV 
of the Act (42 U.S.C. 2751 et seq.) is amended--
        (1) in section 442(d)(4)(C), by striking ``three-fourths in the 
    Pell Grant family size offset'' and inserting ``150 percent of the 
    difference between the income protection allowance for a family of 
    five with one in college and the income protection allowance for a 
    family of six with one in college'';
        (2) in section 442(e)--
            (A) by inserting ``(1)'' before ``If''; and
            (B) by adding at the end the following new paragraph:
    ``(2) If, under paragraph (1) of this subsection, an institution 
returns more than 10 percent of its allocation, the institution's 
allocation for the next fiscal year shall be reduced by the amount 
returned. The Secretary may waive this paragraph for a specific 
institution if the Secretary finds that enforcing this paragraph would 
be contrary to the interest of the program.'';
        (3) in section 443(b)(2)(A), by striking ``institution;'' and 
    inserting ``institution; and'';
        (4) in section 443(b), by amending paragraph (5) to read as 
    follows:
        ``(5) provide that the Federal share of the compensation of 
    students employed in the work-study program in accordance with the 
    agreement shall not exceed 75 percent for academic year 1993-1994 
    and succeeding academic years, except that the Federal share may 
    exceed such amounts of compensation if the Secretary determines, 
    pursuant to regulations promulgated by the Secretary establishing 
    objective criteria for such determinations, that a Federal share in 
    excess of such amounts is required in furtherance of the purpose of 
    this part;''; and
        (5) in section 443(b)(8), by striking subparagraphs (A), (B), 
    and (C) and inserting the following:
            ``(A) that are only on campus and that--
                ``(i) to the maximum extent practicable, complement and 
            reinforce the education programs or vocational goals of such 
            students; and
                ``(ii) furnish student services that are directly 
            related to the student's education, as determined by the 
            Secretary pursuant to regulations, except that no student 
            shall be employed in any position that would involve the 
            solicitation of other potential students to enroll in the 
            school; or
            ``(B) in community service in accordance with paragraph 
        (2)(A) of this subsection;''.
    (e) Amendment to Part D of Title IV of the Act.--Section 
453(b)(2)(B) of the Act (20 U.S.C. 1087c(b)(2)(B)) is amended to read as 
follows:
            ``(B) if the Secretary determines it necessary in order to 
        carry out the purposes of subparagraph (A) and attain such 
        reasonable representation (as required by subparagraph (A)), 
        selecting additional institutions.''.
    (f) Amendments to Part E of Title IV of the Act.--Part E of title IV 
of the Act (20 U.S.C. 1087aa et seq.) is amended--
        (1) in subsections (a)(1) and (a)(2)(D) of section 462, by 
    striking ``if the institution which has'' each place it appears and 
    inserting ``if the institution has'';
        (2) in section 462(d)(4)(C), by striking ``three-fourths in the 
    Pell Grant family size offset'' and inserting ``150 percent of the 
    difference between the income protection allowance for a family of 
    five with one in college and the income protection allowance for a 
    family of six with one in college'';
        (3) in section 462(e), by reducing the indentation of paragraph 
    (2) by two em spaces;
        (4) in section 462(h)(4), by reducing the indentation of 
    subparagraph (B) by two em spaces;
        (5) in section 463(a)(2)(B)(i)(II), by striking ``7.5 percent'' 
    and inserting ``7.5 percent for award year 1993-1994 and has a 
    cohort default rate which does not exceed 15 percent for award year 
    1994-1995 or for any succeeding award year'';
        (6) in section 463(c)(4), by striking ``shall disclose'' and 
    inserting ``shall disclose at least annually'';
        (7) in section 463, by adding at the end the following new 
    subsections:
    ``(d) Limitation on Use of Interest Bearing Accounts.--In carrying 
out the provisions of subsection (a)(10), the Secretary may not require 
that any collection agency, collection attorney, or loan servicer 
collecting loans made under this part deposit amounts collected on such 
loans in interest bearing accounts, unless such agency, attorney, or 
servicer holds such amounts for more than 45 days.
    ``(e) Special Due Diligence Rule.--In carrying out the provisions of 
subsection (a)(5) relating to due diligence, the Secretary shall make 
every effort to ensure that institutions of higher education may use 
Internal Revenue Service skip-tracing collection procedures on loans 
made under this part.'';
        (8) in section 463A, by striking subsections (d) and (e);
        (9) in section 464(c)(2)(B) by striking ``repayment or'' and 
    inserting ``repayment of'';
        (10) in section 464(c)(6), by striking ``Fullbright'' and 
    inserting ``Fulbright'';
        (11) in section 464(e), by striking ``principle'' and inserting 
    ``principal'';
        (12) in section 465(a)(2)(D), by striking ``services'' and 
    inserting ``service'';
        (13) in section 465(a)(2)(F), by striking ``or'' after the 
    semicolon;
        (14) in section 465(a), by reducing the indentation of paragraph 
    (6) by 2 em spaces; and
        (15) in section 466(c), by reducing the indentation of paragraph 
    (2) by two em spaces.
    (g) Amendments to Part F of Title IV of the Act.--Part F of title IV 
of the Act (20 U.S.C. 1087kk et seq.) is amended--
        (1) in section 472--
            (A) in paragraph (10), by striking ``and'' after the 
        semicolon;
            (B) in paragraph (11), by striking the period and inserting 
        ``; and''; and
            (C) by adding at the end the following new paragraph:
        ``(12) for a student who receives a loan under this or any other 
    Federal law, or, at the option of the institution, a conventional 
    student loan incurred by the student to cover a student's cost of 
    attendance at the institution, an allowance for the actual cost of 
    any loan fee, origination fee, or insurance premium charged to such 
    student or such parent on such loan, or the average cost of any such 
    fee or premium charged by the Secretary, lender, or guaranty agency 
    making or insuring such loan, as the case may be.'';
        (2) in the table contained in sections 475(c)(4) and 477(b)(4), 
    by inserting ``$'' before ``9,510'';
        (3) in section 475(f)(3)--
            (A) by striking ``Income in the case of a parent'' and 
        inserting ``If a parent'';
            (B) by striking ``(1) of this subsection, or a parent'' and 
        inserting ``(1) of this subsection, or if a parent''; and
            (C) by striking ``is determined as follows: The income'' and 
        inserting ``the income'';
        (4) in section 475(g)(1)(B), by inserting a close parentheses 
    after ``paragraph (2)'';
        (5) in the table contained in section 475(g)(3), by adding a 
    last row that is identical to the last row of the table contained in 
    section 476(b)(2);
        (6) in section 476, by adding at the end thereof the following 
    new subsection:
    ``(d) Computations in Case of Separation, Divorce, or Death.--In the 
case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's contribution from income or assets.'';
        (7) in section 477 by adding at the end thereof the following 
    new subsection:
    ``(e) Computations in Case of Separation, Divorce, or Death.--In the 
case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's available income or assets.'';
        (8) in section 478--
            (A) by striking ``1992-1993'' each place it appears and 
        inserting ``1993-1994''; and
            (B) in subsection (c)(1), by inserting ``December'' before 
        ``1992'';
        (9) in section 478(h), by striking ``Bureau of Labor Standards'' 
    and inserting ``Bureau of Labor Statistics'';
        (10) in section 479(a)(1), by inserting ``of'' after ``(c)'';
        (11) in section 479(b)(1)(B)(i)--
            (A) by inserting ``(and the student's spouse, if any)'' 
        after ``student'' each time it appears; and
            (B) by striking ``such'';
        (12) in section 479(b)(2), by striking ``five elements'' and 
    inserting ``six elements'';
        (13) in section 479(b)(2)(E), by striking the semicolon and 
    inserting a comma;
        (14) in section 479(b)(3)--
            (A) in subparagraph (A), by inserting ``(including any 
        prepared or electronic version of such form)'' before 
        ``required''; and
            (B) in subparagraph (B), by inserting ``(including any 
        prepared or electronic version of such return)'' before 
        ``required'';
        (15) in section 479(c)--
            (A) by amending subparagraph (A) of paragraph (1) to read as 
        follows:
            ``(A) the student's parents were not required to file an 
        income tax return under section 6012(a)(1) of the Internal 
        Revenue Code of 1986; and'';
            (B) by amending subparagraph (A) of paragraph (2) to read as 
        follows:
            ``(A) the student (and the student's spouse, if any) was not 
        required to file an income tax return under section 6012(a)(1) 
        of the Internal Revenue Code of 1986; and''; and
            (C) in subparagraph (B) of paragraphs (1) and (2), by 
        inserting ``in 1992 or the current year, whichever is higher,'' 
        after ``that may be earned''; and
        (16) in section 479A, by adding at the end the following new 
    subsection:
    ``(c) Adjustments for Special Circumstances.--
        ``(1) In general.--A student financial aid administrator shall 
    be considered to be making an adjustment for special circumstances 
    in accordance with subsection (a) if--
            ``(A) in the case of a dependent student--
                ``(i) such student received a Federal Pell Grant as a 
            dependent student in academic year 1992-1993 and the amount 
            of such student's Federal Pell Grant for academic year 1993-
            1994 is at least $500 less than the amount of such student's 
            Federal Pell Grant for academic year 1992-1993; and
                ``(ii) the decrease described in clause (i) is the 
            direct result of a change in the determination of such 
            student's need for assistance in accordance with this part 
            that is attributable to the enactment of the Higher 
            Education Amendments of 1992; and
            ``(B) in the case of a single independent student--
                ``(i) such student received a Federal Pell Grant as a 
            single independent student in academic year 1992-1993 and 
            qualified as an independent student in accordance with 
            section 480(d) for academic year 1993-1994, and the amount 
            of such student's Federal Pell Grant for academic year 1993-
            1994 is at least $500 less than the amount of such student's 
            Federal Pell Grant for academic year 1992-1993; and
                ``(ii) the decrease described in clause (i) is the 
            direct result of a change in the determination of such 
            student's need for assistance in accordance with this part 
            that is attributable to the enactment of the Higher 
            Education Amendments of 1992.
        ``(2) Amount.--A financial aid administrator shall not make an 
    adjustment for special circumstances pursuant to this subsection in 
    an amount that exceeds one-half of the difference between the amount 
    of a student's Federal Pell Grant for academic year 1992-1993 and 
    the amount of such student's Federal Pell Grant for academic year 
    1993-1994.
        ``(3) Academic year limitation.--A financial aid administrator 
    shall make adjustments under this subsection only for Federal Pell 
    Grants awarded for academic years 1993-1994, 1994-1995, and 1995-
    1996.
        ``(4) Special rule.--Adjustments under this subsection shall be 
    made in any fiscal year only if an Act that contains an 
    appropriation for such fiscal year to carry out this subsection is 
    enacted on or after the date of enactment of the Higher Education 
    Technical Amendments of 1993.
        ``(5) Limitation.--Adjustments under this subsection shall not 
    be available for any academic year to any student who, on the basis 
    of the financial circumstances of the student for the current 
    academic year, would not have been eligible for a grant under this 
    section in academic year 1992-1993.'';
        (17) in section 480(c)(2), by striking ``Title'' each place it 
    appears and inserting ``United States Code, title'';
        (18) in section 480(d)(2), by inserting ``or was a ward of the 
    court until the individual reached the age of 18'' before the 
    semicolon;
        (19) in section 480(j), by reducing the indentation of paragraph 
    (3) by 2 em spaces; and
        (20) in section 480, by adding at the end the following new 
    subsections:
    ``(k) Dependents.--(1) Except as otherwise provided, the term 
`dependent of the parent' means the student, dependent children of the 
student's parents, including those children who are deemed to be 
dependent students when applying for aid under this title, and other 
persons who live with and receive more than one-half of their support 
from the parent and will continue to receive more than half of their 
support from the parent during the award year.
    ``(2) Except as otherwise provided, the term `dependent of the 
student' means the student's dependent children and other persons 
(except the student's spouse) who live with and receive more than one-
half of their support from the student and will continue to receive more 
than half of their support from the student during the award year.
    ``(l) Family Size.--(1) In determining family size in the case of a 
dependent student--
        ``(A) if the parents are not divorced or separated, family 
    members include the student's parents, and the dependents of the 
    student's parents including the student;
        ``(B) if the parents are divorced or separated, family members 
    include the parent whose income is included in computing available 
    income and that parent's dependents, including the student; and
        ``(C) if the parents are divorced and the parent whose income is 
    so included is remarried, or if the parent was a widow or widower 
    who has remarried, family members also include, in addition to those 
    individuals referred to in subparagraph (B), the new spouse and any 
    dependents of the new spouse if that spouse's income is included in 
    determining the parents' adjusted available income.
    ``(2) In determining family size in the case of an independent 
student--
        ``(A) family members include the student, the student's spouse, 
    and the dependents of the student; and
        ``(B) if the student is divorced or separated, family members do 
    not include the spouse (or ex-spouse), but do include the student 
    and the student's dependents.
    ``(m) Business Assets.--The term `business assets' means property 
that is used in the operation of a trade or business, including real 
estate, inventories, buildings, machinery, and other equipment, patents, 
franchise rights, and copyrights.''.
    (h) Amendments to Part G of Title IV of the Act.--Part G of title IV 
of the Act (20 U.S.C. 1088 et seq.) is amended--
        (1) in section 481(a)(3)(B), by inserting before the semicolon 
    the following: ``, except that the Secretary, at the request of such 
    institution, may waive the applicability of this subparagraph to 
    such institution for good cause, as determined by the Secretary in 
    the case of an institution of higher education that provides a 2-
    year or 4-year program of instruction for which the institution 
    awards an associate or baccalaureate degree'';
        (2) in section 481(a)(3)(D)--
            (A) by striking ``are admitted pursuant to section 484(d)'' 
        and inserting ``do not have a high school diploma or its 
        recognized equivalent''; and
            (B) by inserting before the period the following: ``, except 
        that the Secretary may waive the limitation contained in this 
        subparagraph if a nonprofit institution demonstrates to the 
        satisfaction of the Secretary that it exceeds such limitation 
        because it serves, through contracts with Federal, State, or 
        local government agencies, significant numbers of students who 
        do not have a high school diploma or its recognized 
        equivalent'';
        (3) in section 481(a)(4), by amending subparagraph (A) to read 
    as follows:
        ``(A) the institution, or an affiliate of the institution that 
    has the power, by contract or ownership interest, to direct or cause 
    the direction of the management or policies of the institution, has 
    filed for bankruptcy; or'';
        (4) in section 481(d), by amending paragraph (2) to read as 
    follows:
    ``(2) For the purpose of any program under this title, the term 
`academic year' shall require a minimum of 30 weeks of instructional 
time, and, with respect to an undergraduate course of study, shall 
require that during such minimum period of instructional time a full-
time student is expected to complete at least 24 semester or trimester 
hours or 36 quarter hours at an institution that measures program length 
in credit hours, or at least 900 clock hours at an institution that 
measures program length in clock hours. The Secretary may reduce such 
minimum of 30 weeks to not less than 26 weeks for good cause, as 
determined by the Secretary on a case-by-case basis, in the case of an 
institution of higher education that provides a 2-year or 4-year program 
of instruction for which the institution awards an associate or 
baccalaureate degree.'';
        (5) in section 481(e) by striking paragraph (2) and inserting 
    the following:
    ``(2)(A) A program is an eligible program for purposes of part B of 
this title if it is a program of at least 300 clock hours of 
instruction, but less than 600 clock hours of instruction, offered 
during a minimum of 10 weeks, that--
        ``(i) has a verified completion rate of at least 70 percent, as 
    determined in accordance with the regulations of the Secretary;
        ``(ii) has a verified placement rate of at least 70 percent, as 
    determined in accordance with the regulations of the Secretary; and
        ``(iii) satisfies such further criteria as the Secretary may 
    prescribe by regulation.
    ``(B) In the case of a program being determined eligible for the 
first time under this paragraph, such determination shall be made by the 
Secretary before such program is considered to have satisfied the 
requirements of this paragraph.'';
        (6) in section 481(f), by striking ``State'' and inserting 
    ``individual, or any State,'';
        (7) in section 482(c), by adding at the end the following new 
    sentence: ``For award year 1994-95, this subsection shall not 
    require a delay in the effectiveness of regulatory changes affecting 
    parts B, G, and H of this title that are published in final form by 
    May 1, 1994.'';
        (8) in section 483(a)(1), by striking ``section 411(d)'' and 
    inserting ``section 401(d)'';
        (9) in section 483(a)(2), by inserting at the end the following 
    new sentence: ``No data collected on a form for which a fee is 
    charged shall be used to complete the form prescribed under 
    paragraph (1).'';
        (10) in section 483(a)(3), by inserting at the end the following 
    sentence: ``Entities designated by institutions of higher education 
    or States to receive such data shall be subject to all requirements 
    of this section, unless such requirements are waived by the 
    Secretary.'';
        (11) in section 483(f), by striking ``address, social security 
    number,'' and inserting ``address or employer's address, social 
    security number or employer identification number,'';
        (12) in section 483, by redesignating subsections (e), (f), and 
    (g) as subsections (d), (e), and (f), respectively;
        (13) in section 484(a)(4)(B), by inserting after ``number'' the 
    following: ``, except that the provisions of this subparagraph shall 
    not apply to a student from the Republic of the Marshall Islands, 
    the Federated States of Micronesia, or the Republic of Palau'';
        (14) in section 484(a)(5), by striking ``in the United States 
    for other than a temporary purpose and able to provide evidence from 
    the Immigration and Naturalization Service of his or her intent to 
    become a permanent resident'' and inserting ``able to provide 
    evidence from the Immigration and Naturalization Service that he or 
    she is in the United States for other than a temporary purpose with 
    the intention of becoming a citizen or permanent resident'';
        (15) in section 484(b)(2)--
            (A) in subparagraph (A), by striking ``and'' after the 
        semicolon;
            (B) in subparagraph (B), by striking the period and 
        inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
        ``(C) has applied for a loan under section 428H, if such student 
    is eligible to apply for such a loan.'';
        (16) in the matter following subparagraph (B) of section 
    484(b)(3), by striking ``part B'' and inserting ``part B or D'';
        (17) in section 484, by striking subsection (f);
        (18) in section 484(g), by inserting a comma after ``Part D'' 
    each place it appears;
        (19) in the matter preceding clause (i) of section 484(h)(4)(B), 
    by striking ``constitutes'' and inserting ``constitute'';
        (20) in section 484(i)(2)--
            (A) by striking ``(h)(4)(A)(ii)'' and inserting 
        ``(h)(4)(A)(i)''; and
            (B) by striking ``documentation,'' and inserting 
        ``documentation, or'';
        (21) in section 484(i)(3)--
            (A) by striking ``(h)(4)(B)(ii)'' and inserting 
        ``(h)(4)(B)(i)''; and
            (B) by striking ``, or'' and inserting a period;
        (22) in section 484(i), by striking paragraph (4);
        (23) in section 484(n), by striking ``part B, C,'' and inserting 
    ``parts B, C,'';
        (24) in section 484(q)(2), by striking ``a correct social 
    security number'' and inserting ``documented evidence of a social 
    security number that is determined by the institution to be 
    correct'';
        (25) in section 484, by redesignating subsections (g) through 
    (q) as subsections (f) through (p), respectively;
        (26) in section 484B(a), by striking ``grant, loan, or work 
    assistance'' and inserting ``grant or loan assistance'';
        (27) in section 484B(b)(3), by striking ``subsection (d)'' and 
    inserting ``subsection (c)'';
        (28) in clauses (i), (ii), and (iii) of section 485(a)(1)(F), by 
    inserting before the comma at the end of each such clause the 
    following: ``for the period of enrollment for which a refund is 
    required'';
        (29) in section 485(a)(1)(F)(iv), by inserting ``under'' after 
    ``awards'';
        (30) in section 485(a)(1)(F)(vii), by striking ``provided under 
    this title'';
        (31) in section 485(a)(1)(F)(viii), by striking the period;
        (32) in section 485(a)(1)(F), by striking clause (vi) and 
    redesignating clauses (vii) and (viii) as clauses (vi) and (vii), 
    respectively;
        (33) in section 485(a)(1)(L), by inserting a comma after ``full-
    time'';
        (34) in section 485(a)(3), by amending subparagraph (A) to read 
    as follows:
        ``(A) shall, for any academic year beginning more than 270 days 
    after the Secretary first prescribes final regulations pursuant to 
    such subparagraph (L), be made available to current and prospective 
    students prior to enrolling or entering into any financial 
    obligation; and'';
        (35) in paragraphs (1)(A) and (2)(A) of section 485(b), by 
    striking ``under parts'' and inserting ``under part'';
        (36) in section 485(d), by inserting a period at the end of the 
    penultimate sentence;
        (37) in section 485(e), by adding at the end the following new 
    paragraph:
    ``(9) This subsection shall not be effective until the first July 1 
that follows, by more than 270 days, the date on which the Secretary 
first prescribes final regulations pursuant to this subsection. The 
reports required by this subsection shall be due on that July 1 and each 
succeeding July 1 and shall cover the 1-year period ending June 30 of 
the preceding year.'';
        (38) in section 485B(a)--
            (A) by striking ``part E'' and inserting ``parts D and E''; 
        and
            (B) by striking the second period at the end of the third 
        sentence;
        (39) in section 485B(a)(4), by striking ``part E'' and inserting 
    ``parts D and E'';
        (40) in section 485B(c), by striking ``part B or part E'' and 
    inserting ``part B, D, or E'';
        (41) in section 485B(e), by striking ``under this part'' each 
    place it appears and inserting ``under this title'';
        (42) in section 487(a)(2), by striking ``, or for completing or 
    handling the Federal Student Assistance Report'';
        (43) in section 487(c)(1)(F), by striking ``eligibility for any 
    program under this title of any otherwise eligible institution,'' 
    and inserting ``participation in any program under this title of an 
    eligible institution,'';
        (44) in section 489(a), by striking ``484(c)'' and inserting 
    ``484(h)'';
        (45) in section 491(d)(1), by striking ``sections 411A through 
    411E and''; and
        (46) in section 491(h)(1), by striking ``subtitle III'' and 
    inserting ``subchapter III''.
    (i) Amendments to Part H of Title IV of the Act.--Part H of title IV 
of the Act (20 U.S.C. 1099a et seq.) is amended--
        (1) in section 494C(a), by striking the first and second 
    sentences and inserting the following: ``The Secretary shall review 
    all eligible institutions of higher education in a State to 
    determine if any such institution meets any of the criteria in 
    subsection (b). If any such institution meets one or more of such 
    criteria, the Secretary shall inform the State in which such 
    institution is located that the institution has met such criteria, 
    and the State shall review the institution pursuant to the standards 
    in subsection (d). The Secretary may determine that a State need not 
    review an institution if such institution meets the criterion in 
    subsection (b)(10) only, such institution was previously reviewed by 
    the State under subsection (d), and the State determined in such 
    previous review that the institution did not violate any of the 
    standards in subsection (d).'';
        (2) in section 494C(i), by striking ``sections 428 or 487'' and 
    inserting ``section 428 or 487'';
        (3) in section 496(a)(2)(A)(i), by inserting ``of institutions 
    of higher education'' after ``membership'';
        (4) in section 496(a)(3)(A), by striking ``subparagraph (A)'' 
    and inserting ``subparagraph (A)(i)'';
        (5) in section 496(a)(5)--
            (A) by striking the period at the end of subparagraph (L) 
        and inserting a semicolon; and
            (B) by inserting after subparagraph (L) the following:
    ``except that subparagraphs (G), (H), (I), (J), and (L) shall not 
    apply to agencies or associations described in paragraph (2)(A)(ii) 
    of this subsection;'';
        (6) in the matter preceding paragraph (1) of section 496(c), by 
    striking ``for the purpose of this title'' and inserting ``as a 
    reliable authority as to the quality of education or training 
    offered by an institution seeking to participate in the programs 
    authorized under this title'';
        (7) in section 496(l)(2)--
            (A) by striking ``institutution'' and inserting 
        ``institution''; and
            (B) by striking ``association leading to the suspension'' 
        and inserting ``association, described in paragraph (2)(A)(i), 
        (2)(B), or (2)(C) of subsection (a) of this section, leading to 
        the suspension'';
        (8) in section 496(n)(1), by amending subparagraph (B) to read 
    as follows:
        ``(B) site visits, including unannounced site visits as 
    appropriate, at accrediting agencies and associations, and, at the 
    Secretary's discretion, at representative member institutions.'';
        (9) in section 498(c)--
            (A) in paragraph (2), by adding at the end the following new 
        sentences: ``Such criteria shall take into account any 
        differences in generally accepted accounting principles, and the 
        financial statements required thereunder, that are applicable to 
        for profit and nonprofit institutions. The Secretary shall take 
        into account an institution's total financial circumstances in 
        making a determination of its ability to meet the standards 
        herein required.'';
            (B) in the matter preceding subparagraph (A) of paragraph 
        (3), by striking ``may determine'' and inserting ``shall 
        determine'';
            (C) by amending subparagraph (C) of paragraph (3) to read as 
        follows:
        ``(C) such institution establishes to the satisfaction of the 
    Secretary, with the support of a financial statement audited by an 
    independent certified public accountant in accordance with generally 
    accepted auditing standards, that the institution has sufficient 
    resources to ensure against the precipitous closure of the 
    institution, including the ability to meet all of its financial 
    obligations (including refunds of institutional charges and 
    repayments to the Secretary for liabilities and debts incurred in 
    programs administered by the Secretary); or'';
            (D) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively; and
            (E) by inserting after paragraph (3) the following new 
        paragraph:
    ``(4) If an institution of higher education that provides a 2-year 
or 4-year program of instruction for which the institution awards an 
associate or baccalaureate degree fails to meet the ratio of current 
assets to current liabilities imposed by the Secretary pursuant to 
paragraph (2), the Secretary shall waive that particular requirement for 
that institution if the institution demonstrates to the satisfaction of 
the Secretary that--
        ``(A) there is no reasonable doubt as to its continued solvency 
    and ability to deliver quality educational services;
        ``(B) it is current in its payment of all current liabilities, 
    including student refunds, repayments to the Secretary, payroll, and 
    payment of trade creditors and withholding taxes; and
        ``(C) it has substantial equity in school-occupied facilities, 
    the acquisition of which was the direct cause of its failure to meet 
    the current operating ratio requirement.'';
        (10) in section 498(f), by inserting after the second sentence 
    the following: ``The Secretary may establish priorities by which 
    institutions are to receive site visits, and may coordinate such 
    visits with site visits by States, guaranty agencies, and 
    accrediting bodies in order to eliminate duplication, and reduce 
    administrative burden.'';
        (11) in section 498(h)(1)(B), by amending clause (iii) to read 
    as follows:
            ``(iii) the Secretary determines that an institution that 
        seeks to renew its certification is, in the judgment of the 
        Secretary, in an administrative or financial condition that may 
        jeopardize its ability to perform its financial responsibilities 
        under a program participation agreement.'';
        (12) in section 498, by amending subsection (i)(1) to read as 
    follows:
    ``(i) Treatment of Changes of Ownership.--(1) An eligible 
institution of higher education that has had a change in ownership 
resulting in a change of control shall not qualify to participate in 
programs under this title after the change in control (except as 
provided in paragraph (3)) unless it establishes that it meets the 
requirements of section 481 (other than the requirements in subsections 
(b)(5) and (c)(3)) and this section after such change in control.'';
        (13) in section 498(i)(3), by amending subparagraph (A) to read 
    as follows:
        ``(A) the sale or transfer, upon the death of an owner of an 
    institution, of the ownership interest of the deceased in that 
    institution to a family member or to a person holding an ownership 
    interest in that institution; or'';
        (14) in section 498, by amending subsection (j)(1) to read as 
    follows:
    ``(j) Treatment of Branches.--(1) A branch of an eligible 
institution of higher education, as defined pursuant to regulations of 
the Secretary, shall be certified under this subpart before it may 
participate as part of such institution in a program under this title, 
except that such branch shall not be required to meet the requirements 
of sections 481(b)(5) and 481(c)(3) prior to seeking such certification. 
Such branch is required to be in existence at least 2 years prior to 
seeking certification as a main campus or free-standing institution.''; 
and
        (15) in section 498A(e), by striking ``Act,'' and inserting 
    ``Act''.
    (j) Amendments to Titles V Through XII of the Act.--Titles V through 
XII of the Act (20 U.S.C. 1101 et seq.) are amended--
        (1) in section 505(b)(2)(D)(iii), by striking the period and 
    inserting a semicolon;
        (2) in section 525, by amending subsection (c) to read as 
    follows:
    ``(c) Waivers.--For purposes of giving special consideration under 
section 523(d), a State may waive the criteria contained in the first 
sentence of subsection (b) for not more than 25 percent of individuals 
receiving Paul Douglas Teacher Scholarships on or after July 1, 1993.'';
        (3) in the first sentence of section 530A by striking 
    ``elementary and secondary school teachers'' each place it appears 
    and inserting ``preschool, elementary, and secondary school 
    teachers'';
        (4) in section 535(b)(1)(C), by striking the semicolon and 
    inserting a period;
        (5) in section 537(a), by inserting ``In'' before ``General'';
        (6) in section 545(d), by striking ``parts B, D,'' and inserting 
    ``part B, D,'';
        (7) in section 580B, by striking ``(a) Authorization.--'';
        (8) in section 581(b)(2), by striking ``402A(g)(2)'' and 
    inserting ``402A(g)'';
        (9) in section 597(d)(1), by striking ``Development and'' and 
    inserting ``and Development'';
        (10) in section 602(a)(3), by striking ``(1)(A)'' and inserting 
    ``(1)'';
        (11) in section 602(a)(4), by striking ``(1)(A)'' and inserting 
    ``(1)'';
        (12) in the heading of subsection (a) of section 603, by 
    striking ``Resources'' and inserting ``Resource'';
        (13) in section 607(c), by redesignating the second paragraph 
    (2) as paragraph (3);
        (14) in section 714, by striking ``(a) In General.--'';
        (15) in section 715(b)--
            (A) by striking ``(1) State grants.--'';
            (B) by redesignating subparagraphs (A) and (B) as paragraphs 
        (1) and (2);
            (C) in paragraph (2) (as so redesignated) by redesignating 
        clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), 
        respectively; and
            (D) by reducing the indentation of such paragraphs (1) and 
        (2) (as so redesignated) by two em spaces;
        (16) in section 725--
            (A) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (6), respectively; and
            (B) by inserting after paragraph (1) the following new 
        paragraph:
        ``(2) shall require that the first loans for capital projects 
    authorized under section 723 be made no later than March 31, 
    1994;'';
        (17) in section 726, by inserting a period after ``title'' the 
    first time it appears and striking the remainder of the sentence;
        (18) in section 731(a), by striking ``faculties,'' and inserting 
    ``faculty,'';
        (19) in section 731(c), by striking ``enactment of'';
        (20) in section 734(e)--
            (A) by striking ``Faculties'' and inserting ``Faculty''; and
            (B) by striking ``faculties'' and inserting ``faculty'';
        (21) in section 781(b), by striking ``Education Amendments of 
    1992,'' and inserting ``Education Amendments of 1992'';
        (22) in section 782(1)(A), by striking ``outpatient care of 
    student'' and inserting ``outpatient care of students'';
        (23) in section 783--
            (A) in subsection (a)(2), by inserting ``on all such loans 
        owed by such institution'' after ``outstanding indebtedness''; 
        and
            (B) by adding at the end thereof the following new 
        subsection:
    ``(d) Reduction of Amounts Owed to Treasurer.--If the Secretary 
forgives all or part of a loan described in subsection (a), the 
outstanding balance remaining on the notes of the Secretary that were 
issued to the Secretary of the Treasury under section 761(d) as in 
effect prior to the enactment of the Higher Education Amendments of 
1992, or under any provision of this title as in effect at the time such 
note was issued, shall be reduced by such amount forgiven.'';
        (24) in the matter preceding paragraph (1) of section 802(b), by 
    inserting after ``fiscal year'' the following: ``the Secretary shall 
    reserve such amount as is necessary to make continuing awards to 
    institutions of higher education that were, on the date of enactment 
    of the Higher Education Amendments of 1992, operating an existing 
    cooperative education program under a multiyear project award and to 
    continue to pay to such institutions the Federal share in effect on 
    the day before such date of enactment. Of the remainder of the 
    amount appropriated in such fiscal year'';
        (25) in section 803(b)(6)(A), by striking ``data'';
        (26) in section 803(e)(2)--
            (A) by striking ``Mexican American'' and inserting 
        ``Mexican-American''; and
            (B) by striking ``Mariana'' and inserting ``Marianian'';
        (27) in section 901(b)(2), by striking ``such part'' and 
    inserting ``such title'';
        (28) in section 922, by amending subsection (f) to read as 
    follows:
    ``(f) Institutional Payments.--(1) The Secretary shall pay to the 
institution of higher education, for each individual awarded a 
fellowship under this part at such institution, an institutional 
allowance. Except as provided in paragraph (2), such allowance shall 
be--
        ``(A) $6,000 annually with respect to individuals who first 
    received fellowships under this part prior to academic year 1993-
    1994; and
        ``(B) with respect to individuals who first receive fellowships 
    during or after academic year 1993-1994--
            ``(i) $9,000 for the academic year 1993-1994; and
            ``(ii) for succeeding academic years, $9,000 adjusted 
        annually thereafter in accordance with inflation as determined 
        by the Department of Labor's Consumer Price Index for the 
        previous calendar year.
    ``(2) The institutional allowance paid under paragraph (1) shall be 
reduced by the amount the institution charges and collects from a 
fellowship recipient for tuition and other expenses as part of the 
recipient's instructional program.'';
        (29) in the second sentence of section 923(b)(1), by striking 
    ``granting of such fellowships'' and all that follows through ``set 
    forth in this section,'' and inserting ``granting of such 
    fellowships for an additional period of study not to exceed one 12-
    month period,'';
        (30) in section 923(b)(2), by striking out the second and third 
    sentences and inserting the following: ``Such period shall not 
    exceed a total of 3 years, consisting of not more than 2 years of 
    support for study or research, and not more than 1 year of support 
    for dissertation work, provided that the student has attained 
    satisfactory progress prior to the dissertation stage, except that 
    the Secretary may provide by regulation for the granting of such 
    fellowships for an additional period of study not to exceed one 12-
    month period, under special circumstances which the Secretary 
    determines would most effectively serve the purposes of this part. 
    The Secretary shall make a determination to provide such 12-month 
    extension of an award to an individual fellowship recipient for 
    study or research upon review of an application for such extension 
    by the recipient. The institution shall provide 2 years of support 
    for each student following the years of Federal predissertation 
    support under this part. Any student receiving an award for graduate 
    study leading to a doctoral degree shall receive at least 1 year of 
    supervised training in instruction during such student's doctoral 
    program.'';
        (31) in section 923(b), by adding at the end the following new 
    paragraph:
        ``(3) Continuation of awards under prior law.--Notwithstanding 
    any other provision of law, in the case of an individual who was 
    awarded a multiyear fellowship under this part before the date of 
    enactment of the Higher Education Amendments of 1992, awards to such 
    individual for the remainder of such fellowship may, at the 
    discretion of the institution of higher education attended by such 
    individual, be subject to the requirements of this subsection as in 
    effect prior to such date of enactment. The institution shall be 
    required to exercise such discretion at the time that its 
    application to the Secretary for a grant under this part, and the 
    amount of any such grant, are being considered by the Secretary.'';
        (32) in section 924, by adding at the end thereof the following 
    new sentence: ``Notwithstanding any other provision of law, the 
    Secretary may use funds appropriated pursuant to this section for 
    fiscal year 1994 to make continuation awards under section 923(b)(3) 
    to individuals who would have been eligible for such awards in 
    fiscal year 1993 if such section had been in effect.'';
        (33) in section 931(a), by inserting after the first sentence 
    the following new sentence: ``These fellowships shall be awarded to 
    students intending to pursue a doctoral degree, except that 
    fellowships may be granted to students pursuing a master's degree in 
    those fields in which the master's degree is commonly accepted as 
    the appropriate degree for a tenured-track faculty position in a 
    baccalaureate degree-granting institution.'';
        (34) in the third sentence of section 932(a)(1), by striking 
    ``doctoral'' and inserting ``graduate'';
        (35) in section 932(c), by striking ``doctoral'' and inserting 
    ``graduate'';
        (36) in section 933(b), by amending paragraph (1) to read as 
    follows:
        ``(1) In general.--(A) The Secretary shall (in addition to 
    stipends paid to individuals under this part) pay to the institution 
    of higher education, for each individual awarded a fellowship under 
    this part at such institution, an institutional allowance. Except as 
    provided in subparagraph (B), such allowance shall be--
            ``(i) $6,000 annually with respect to individuals who first 
        received fellowships under this part prior to academic year 
        1993-1994; and
            ``(ii) with respect to individuals who first receive 
        fellowships during or after academic year 1993-1994--
                ``(I) $9,000 for the academic year 1993-1994; and
                ``(II) for succeeding academic years, $9,000 adjusted 
            annually thereafter in accordance with inflation as 
            determined by the Department of Labor's Consumer Price Index 
            for the previous calendar year.
        ``(B) The institutional allowance paid under subparagraph (A) 
    shall be reduced by the amount the institution charges and collects 
    from a fellowship recipient for tuition and other expenses as part 
    of the recipient's instructional program.'';
        (37) in section 941, by striking ``the part'' and inserting 
    ``this part'';
        (38) in section 943(b), by striking ``foreign languages or area 
    studies'' and inserting ``foreign languages and area studies'';
        (39) in section 945, by amending subsection (c) to read as 
    follows:
    ``(c) Treatment of Institutional Payments.--An institution of higher 
education that makes institutional payments for tuition and fees on 
behalf of individuals supported by fellowships under this part in 
amounts that exceed the institutional payments made by the Secretary 
pursuant to section 946(a) may count such payments toward the amounts 
the institution is required to provide pursuant to section 944(b)(2).'';
        (40) in section 946, by amending subsection (a) to read as 
    follows:
    ``(a) Institutional Payments.--(1) The Secretary shall (in addition 
to stipends paid to individuals under this part) pay to the institution 
of higher education, for each individual awarded a fellowship under this 
part at such institution, an institutional allowance. Except as provided 
in paragraph (2), such allowance shall be--
        ``(A) $6,000 annually with respect to individuals who first 
    received fellowships under this part prior to academic year 1993-
    1994; and
        ``(B) with respect to individuals who first receive fellowships 
    during or after academic year 1993-1994--
            ``(i) $9,000 for the academic year 1993-1994; and
            ``(ii) for succeeding academic years, $9,000 adjusted 
        annually thereafter in accordance with inflation as determined 
        by the Department of Labor's Consumer Price Index for the 
        previous calendar year.
    ``(2) The institutional allowance paid under paragraph (1) shall be 
reduced by the amount the institution charges and collects from a 
fellowship recipient for tuition and other expenses as part of the 
recipient's instructional program.'';
        (41) in the matter preceding paragraph (1) of section 951(a), by 
    inserting ``Pacific Islanders,'' after ``Native Americans,'';
        (42) in section 1004(a), by striking ``part'' and inserting 
    ``subpart'';
        (43) in section 1011(d), by striking ``part'' and inserting 
    ``subpart'';
        (44) in part D of title X, by redesignating section 1181 as 
    section 1081;
        (45) in section 1081(d) (as so redesignated) by inserting a 
    comma after ``this title)'' and after ``such institutions'';
        (46) in section 1106(a), by striking ``may receive a grant'' and 
    inserting ``may receive such a grant'';
        (47) in section 1142(d)(2), by inserting ``program'' after 
    ``literacy corps'';
        (48) in the last sentence of section 1201(a), by striking 
    ``subpart 3 of part H,'' and inserting ``subpart 2 of part H of 
    title IV of this Act,'';
        (49) by amending section 1204 to read as follows:


       ``treatment of territories and territorial student assistance

    ``Sec. 1204. (a) The Secretary is required to waive the eligibility 
criteria of any postsecondary education program administered by the 
Department where such criteria do not take into account the unique 
circumstances in Guam, the Virgin Islands, American Samoa, Palau, the 
Commonwealth of the Northern Mariana Islands, and the freely associated 
states.
    ``(b) Notwithstanding any other provision of law, an institution of 
higher education that is located in any of the freely associated states, 
rather than a State, shall be eligible, if otherwise qualified, for 
assistance under chapter 1 of subpart 2 of part A of title IV of this 
Act.'';
        (50) in section 1205, in the section heading, by inserting 
    ``NATIONAL ADVISORY'' before ``COMMITTEE'';
        (51) in section 1205(a), by inserting ``National Advisory'' 
    before ``Committee'' the first place it appears;
        (52) in paragraphs (1) and (6) of section 1205(c), by inserting 
    ``of title IV of this Act'' after ``part H'';
        (53) in section 1205(f), by striking ``Accreditation and 
    Institutional Eligibility'' and inserting ``Institutional Quality 
    and Integrity'';
        (54) in section 1209(f)(1), by striking ``the Act'' and 
    inserting ``this Act'';
        (55) in title XII, by redesignating section 1211 (as added by 
    section 6231 of the Omnibus Trade and Competitiveness Act of 1988) 
    as section 1212; and
        (56) in section 1212(e)(2) (as so redesignated), by inserting 
    close quotation marks after ``facilities'' the first place it 
    appears.
    (k) Amendments to the 1992 Amendments.--The Higher Education 
Amendments of 1992 (Public Law 102-325; 106 Stat. 459) is amended--
        (1) in section 401(d)(2)(A), by inserting ``the first place it 
    appears'' before ``the following:'';
        (2) in section 425(d)(1)--
            (A) by inserting ``the second sentence of'' after ``(1) 
        in''; and
            (B) by striking ``in the second sentence'';
        (3) in section 425(d)(4)--
            (A) by inserting ``the second sentence of'' after ``(4) 
        in''; and
            (B) by striking ``in the second sentence'';
        (4) in section 426(c), by striking ``new subsections'' and 
    inserting ``new subsection'';
        (5) in section 432(a)(3), by striking ``427(a)(2)(C) and 
    428(b)(1)(M)'' and inserting ``427(a)(2)(C), 428(b)(1)(M), and 
    428B(d)(1)'';
        (6) in section 446, by striking subsection (c);
        (7) in section 465(a), by amending paragraph (1) to read as 
    follows:
        ``(1) in subparagraph (A), by striking `and such determination' 
    and all that follows through `such chapter 1';'';
        (8) in section 484, by inserting after subsection (h) the 
    following new subsection:
    ``(i) Effective Date.--The amendments made by subsection (g) with 
respect to the addition of subsection (n) shall be effective on and 
after December 1, 1987.'';
        (9) in section 486(a)(3), by striking ``section 1'' and 
    inserting ``section 103'';
        (10) in section 1409(b)(1), by striking ``the Asbestos Hazard 
    Emergency Response Act'' and inserting ``section 202 of the Toxic 
    Substances Control Act (15 U.S.C. 2642)'';
        (11) in section 1422(9), by striking ``has placed'' and 
    inserting ``have placed'';
        (12) in section 1442(c), by striking ``Chairman'' and inserting 
    ``Chairperson'';
        (13) in section 1541(g), by striking ``educational'' and 
    inserting ``education''; and
        (14) in the subsection (a)(1) amended by section 1554(a), by 
    striking ``4'' and inserting ``6''.
    (l) Amendment to the 1986 Amendment.--Section 1507(a)(12) of the 
Higher Education Amendments of 1986 (20 U.S.C. 4414(a)(12)) is amended 
by striking the period and inserting a semicolon.
    (m) Stylistic Consistency.--The Act is amended so that the section 
designation and section heading of each section of the Act shall be in 
the form and typeface of the section designation and heading of this 
section.
    (n) Accreditation Through Transfer of Credit.--(1) An institution of 
higher education which satisfied the requirements of section 
1201(a)(5)(B) of the Act prior to the enactment of the Higher Education 
Amendments of 1992, shall be considered to meet the requirements of 
section 1201(a)(5) of the Act if--
        (A) within 60 days after the date of enactment of the Higher 
    Education Technical Amendments of 1993, such institution has applied 
    for accreditation by a nationally recognized accrediting agency or 
    association which the Secretary determines, pursuant to subpart 2 of 
    part H of title IV of the Act, to be a reliable authority as to the 
    quality of education or training offered;
        (B) within 2 years of the date of enactment of the Higher 
    Education Technical Amendments of 1993, such institution is 
    accredited by such an accrediting agency or association or, if not 
    so accredited, has been granted preaccreditation status by such an 
    agency or association that has been recognized by the Secretary for 
    the granting of preaccreditation status, 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 time; and
        (C) such institution is legally authorized within a State to 
    provide education beyond secondary education.
    (2) The Secretary shall determine whether to recertify any 
institution that meets the requirements of paragraph (1) within 2 years 
after the date of enactment of this Act.
    (3) Paragraph (1) of this subsection shall be effective on and after 
July 23, 1992.

SEC. 3. PACIFIC REGIONAL EDUCATIONAL LABORATORY.

    Section 101A of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2311a) is amended--
        (1) in the matter preceding paragraph (1) of subsection (b)--
            (A) by striking ``Center for the Advancement of Pacific 
        Education, Honolulu, Hawaii, or its successor entity as the 
        Pacific regional educational laboratory'' and inserting 
        ``Pacific Regional Educational Laboratory, Honolulu, Hawaii''; 
        and
            (B) by inserting ``or provide direct services regarding'' 
        after ``grants for''; and
        (2) in subsection (c), by striking ``Center for the Advancement 
    of Pacific Education'' and inserting ``Pacific Regional Educational 
    Laboratory, Honolulu, Hawaii,''.

SEC. 4. DISTRIBUTION OF FUNDS TO POSTSECONDARY AND ADULT PROGRAMS.

    Section 232 of the Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 2341a) is amended--
        (1) in subsection (a)--
            (A) in the first sentence--
                (i) by inserting ``(1)'' before ``Except''; and
                (ii) by inserting ``or consortia thereof'' before 
            ``within''; and
            (B) in the second sentence--
                (i) by inserting ``or consortium'' before ``shall''; and
                (ii) by inserting ``or consortium'' before ``in the 
            preceding'';
            (C) by adding at the end the following new paragraph:
    ``(2) In order for a consortium of eligible institutions described 
in paragraph (1) to receive assistance pursuant to such paragraph such 
consortium shall operate joint projects that--
        ``(A) provide services to all postsecondary institutions 
    participating in the consortium; and
        ``(B) are of sufficient size, scope and quality as to be 
    effective.'';
        (2) in subsection (b)--
            (A) in paragraph (1), by inserting ``or consortia'' after 
        ``institutions''; and
            (B) in the matter preceding subparagraph (A) of paragraph 
        (2), by inserting ``or consortia'' after ``institutions''; and
        (3) in subsection (c)--
            (A) in paragraph (1), by inserting ``or consortium'' after 
        ``institution''; and
            (B) in paragraph (2), by inserting ``or consortia'' after 
        ``institutions''.

SEC. 5. EFFECTIVE DATES.

    (a) In general.--Except as otherwise provided therein or in 
subsection (b) of this section, the amendments made by section 2 of this 
Act shall be effective as if such amendments were included in the Higher 
Education Amendments of 1992 (Public Law 102-325), except that section 
492 of the Act shall not apply to the amendments made by this Act.
    (b) Exceptions.--
        (1) Effective on October 1, 1993.--The amendments made by the 
    following subsections of section 2 of this Act shall be effective on 
    and after October 1, 1993: (b)(29), (j)(28), (j)(36), and (j)(40).
        (2) Effective on date of enactment.--The amendments made by the 
    following subsections of section 2 of this Act shall be effective on 
    and after the date of enactment of this Act: (b)(2), (b)(7), 
    (b)(28), (c)(3), (c)(5), (c)(13)(B), (c)(13)(C), (c)(18), (c)(30), 
    (c)(62).
        (3) Effective 30 days after enactment.--The amendments made by 
    the following subsections of section 2 of this Act shall be 
    effective on and after 30 days after the date of enactment of this 
    Act: (c)(19), (c)(20), (c)(21), (c)(59).
        (4) Effective 60 days after enactment.--The amendments made by 
    the following subsections of section 2 of this Act shall be 
    effective on and after 60 days after the date of enactment of this 
    Act: (c)(31) and (c)(53).
        (5) Effective on April 1, 1994.--The amendments made by section 
    2(c)(43)(B) of this Act shall be effective on and after April 1, 
    1994.
        (6) Effective on July 1, 1994.--The amendments made by the 
    following subsection of section 2 of this Act shall be effective on 
    and after July 1, 1994: (b)(25), (c)(2), (c)(13)(A), (c)(29).
        (7) Cohort default data examinations.--The amendment made by 
    section 2(c)(60)(A) shall be effective on and after October 1, 1994.
        (8) Cohort default rate determinations.--The amendments made to 
    subsection (a)(3) and (m)(1)(B) of section 435 of this Act shall 
    apply with respect to the determination (and appeals from 
    determinations) of cohort default rates for fiscal year 1989 and any 
    succeeding fiscal year.







                                Speaker of the House of Representatives.







                             Vice President of the United States and    
                                                President of the Senate.`