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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1507 Engrossed Amendment Senate (EAS)]

103d CONGRESS

  1st Session 

                                S. 1507

_______________________________________________________________________

                  SENATE AMENDMENT TO HOUSE AMENDMENTS
                  In the Senate of the United States,

                       November 20 (legislative day, November 2), 1993.
      Resolved, That the Senate agree to the amendments of the House of 
Representatives to the bill (S. 1507) entitled ``An Act to make 
technical amendments to the Higher Education Amendments of 1992 and the 
Higher Education Act of 1965, and for other purposes'' with the 
following

                 SENATE AMENDMENT TO HOUSE AMENDMENTS:

            In lieu of the matter proposed to be inserted by the House 
      amendment to the text of the bill, insert:

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 delivery 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.

            Attest:

                                                             Secretary.

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