S. 1507

One Hundred Third Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the fifth day of January, one thousand nine hundred and ninety-three

An Act

To make certain technical and conforming amendments to the Higher Education

Act of 1965.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Higher Education Technical Amendments of 1993’’.

(b) REFERENCES.—References in this Act to ‘‘the Act’’ are references to the Higher Education Act of 1965.

SEC. 2. TECHNICAL AMENDMENTS.

(a) AMENDMENTS TO TITLES I, II, AND III OF THE ACT.—Titles

I, II, and III of the Act (20 U.S.C. 1001 et seq., 1021 et seq.,

1051 et seq.) are amended—

(1) in section 103(b)(2), by increasing the indentation of

subparagraphs (A) through (E) by two em spaces;

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

(3) in section 241(a)(2)(B), by striking ‘‘information service’’

and inserting ‘‘information science’’;

(4) in section 301(a)(2), by striking the comma after ‘‘planning’’;

(5) in section 312(c)(2), by inserting ‘‘the’’ before ‘‘second

fiscal year’’ the second place it appears;

(6) in section 313(b), by inserting ‘‘, except that for the

purpose of this subsection a grant under section 354(a)(1) shall

not be considered a grant under this part’’ before the period.

(7) in section 316(c), by striking ‘‘Such programs may

include—’’ and inserting the following:

‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—Such programs

may include—’’;

(8) by reducing by two em spaces the indentation of each

of the following provisions: sections 323(b)(3), 331(a)(2)(D), and

331(b)(5);

(9) in section 326(e)(2)—

(A) by inserting ‘‘and’’ after the semicolon at the end

of subparagraph (A);

(B) by striking subparagraph (B); and

(C) by redesignating subparagraph (C) as subparagraph (B);

(10) in section 331(b)(2), by reducing the indentation of

subparagraphs (B) and (C) by four em spaces; and

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(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.’’;

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(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

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S. 1507—4

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

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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 ‘‘para- graphs (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-

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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

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(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)—

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(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—

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‘‘(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

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‘‘(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

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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 onehalf 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;

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(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)—

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(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

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S. 1507—14

(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 para- graph (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’’;

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S. 1507—15

(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 para- graph (6) by 2 em spaces; and (15) in section 466(c), by reducing the indentation of para- graph (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

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S. 1507—16

mium 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)—

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S. 1507—17

(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.

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S. 1507—18

‘‘(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

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S. 1507—19

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;

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S. 1507—20

‘‘(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);

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S. 1507—21

(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

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S. 1507—22

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

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S. 1507—23

a reliable authority as to the quality of education or training

offered by an institution seeking to participate in the programs

authorized under this title’’;

(7) in section 496(l)(2)—

(A) by striking ‘‘institutution’’ and inserting ‘‘institution’’; and

(B) by striking ‘‘association leading to the suspension’’

and inserting ‘‘association, described in paragraph (2)(A)(i),

(2)(B), or (2)(C) of subsection (a) of this section, leading

to the suspension’’;

(8) in section 496(n)(1), by amending subparagraph (B)

to read as follows:

‘‘(B) site visits, including unannounced site visits as appropriate, at accrediting agencies and associations, and, at the

Secretary’s discretion, at representative member institutions.’’;

(9) in section 498(c)—

(A) in paragraph (2), by adding at the end the following

new sentences: ‘‘Such criteria shall take into account any

differences in generally accepted accounting principles, and

the financial statements required thereunder, that are

applicable to for profit and nonprofit institutions. The Secretary shall take into account an institution’s total financial

circumstances in making a determination of its ability to

meet the standards herein required.’’;

(B) in the matter preceding subparagraph (A) of paragraph (3), by striking ‘‘may determine’’ and inserting ‘‘shall

determine’’;

(C) by amending subparagraph (C) of paragraph (3)

to read as follows:

‘‘(C) such institution establishes to the satisfaction of the

Secretary, with the support of a financial statement audited

by an independent certified public accountant in accordance

with generally accepted auditing standards, that the institution

has sufficient resources to ensure against the precipitous closure of the institution, including the ability to meet all of

its financial obligations (including refunds of institutional

charges and repayments to the Secretary for liabilities and

debts incurred in programs administered by the Secretary);

or’’;

(D) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and

(E) by inserting after paragraph (3) the following new

paragraph:

‘‘(4) If an institution of higher education that provides a 2-

year or 4-year program of instruction for which the institution

awards an associate or baccalaureate degree fails to meet the ratio

of current assets to current liabilities imposed by the Secretary

pursuant to paragraph (2), the Secretary shall waive that particular

requirement for that institution if the institution demonstrates

to the satisfaction of the Secretary that—

‘‘(A) there is no reasonable doubt as to its continued solvency and ability to deliver quality educational services;

‘‘(B) it is current in its payment of all current liabilities,

including student refunds, repayments to the Secretary, payroll,

and payment of trade creditors and withholding taxes; and

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S. 1507—24

‘‘(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.’’;

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S. 1507—25

(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 redesignat- ing 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

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S. 1507—26

(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

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S. 1507—27

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—

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S. 1507—28

‘‘(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’’;

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S. 1507—29

(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’’;

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S. 1507—30

(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

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S. 1507—31

(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’’.

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S. 1507—32

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

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S. 1507—33

appeals from determinations) of cohort default rates for fiscal

year 1989 and any succeeding fiscal year.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.

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