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:

1 SECTION 1. SHORT TITLE; REFERENCES.

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

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

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

5 are references to the Higher Education Act of 1965.

6 SEC. 2. TECHNICAL AMENDMENTS.

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

8 ACT.—Titles I, II, and III of the Act (20 U.S.C. 1001 et

9 seq., 1021 et seq., 1051 et seq.) are amended—

10 (1) in section 103(b)(2), by increasing the inden11 tation of subparagraphs (A) through (E) by two em

12 spaces;
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1 (2) in section 104(b)(5)(C), by striking ‘‘sub2 part’’ and inserting ‘‘part’’;

3 (3) in section 241(a)(2)(B), by striking ‘‘infor4 mation service’’ and inserting ‘‘information science’’;

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

6 after ‘‘planning’’;

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

8 ‘‘second fiscal year’’ the second place it appears;

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

10 for the purpose of this subsection a grant under sec11 tion 354(a)(1) shall not be considered a grant under

12 this part’’ before the period.

13 (7) in section 316(c), by striking ‘‘Such pro14 grams may include—’’ and inserting the following:

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

16 Such programs may include—’’;

17 (8) by reducing by two em spaces the indenta18 tion of each of the following provisions: sections

19 323(b)(3), 331(a)(2)(D), and 331(b)(5);

20 (9) in section 326(e)(2)—

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

22 at the end of subparagraph (A);

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

24 (C) by redesignating subparagraph (C) as

25 subparagraph (B);
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1 (10) in section 331(b)(2), by reducing the inden2 tation of subparagraphs (B) and (C) by four em

3 spaces; and

4 (11) in section 331(b)(5), by striking ‘‘an endow5 ment’’ and inserting ‘‘An endowment’’.

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

7 ACT.—Part A of title IV of the Act (20 U.S.C. 1070 et seq.)

8 is amended—

9 (1) in section 401(a)(1), by inserting ‘‘, except

10 that this sentence shall not be construed to limit the

11 authority of the Secretary to place an institution on

12 a reimbursement system of payment’’ before the pe13 riod at the end of the second sentence;

14 (2) in section 401(b)(6), in the matter preceding

15 subparagraph (A), by striking ‘‘single 12-month pe16 riod’’ and inserting ‘‘single award year’’;

17 (3) in section 401(b)(6)(A), by striking ‘‘a bacca18 laureate’’ and inserting ‘‘an associate or bacca19 laureate’’;

20 (4) in section 401(b)(6)(B), by striking ‘‘a bach21 elor’s’’ and inserting ‘‘an associate or baccalaureate’’;

22 (5) in section 401(i), by striking ‘‘part D of title

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

24 (6) in section 402A(b), by striking paragraph (2)

25 and inserting the following:
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1 ‘‘(2) DURATION.—Grants or contracts made

2 under this chapter shall be awarded for a period of

3 4 years, except that—

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

5 or contracts for 5 years to applicants whose peer

6 review scores were in the highest 10 percent of

7 scores of all applicants receiving grants or con8 tracts in each program competition for the same

9 award year; and

10 ‘‘(B) grants made under section 402G shall

11 be awarded for a period of 2 years.’’;

12 (7) in the second sentence of section 402A(c)(1),

13 by inserting before the period the following ‘‘, except

14 that in the case of the programs authorized in sections

15 402E and 402G, the level of consideration given to

16 prior experience shall be the same as the level of con17 sideration given this factor in the other programs au18 thorized in this chapter’’;

19 (8) in section 402A(c)(2)(A), by inserting ‘‘with

20 respect to grants made under section 402G, and’’ after

21 ‘‘Except’’;

22 (9) in section 402A, by amending subsection (e)

23 to read as follows:

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

25 INDIVIDUAL.—(1) Except in the case of an independent stu-
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1 dent, as defined in section 480(d), documentation of an in2 dividual’s status pursuant to subsection (g)(2) shall be

3 made by providing the Secretary with—

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

5 parent or legal guardian;

6 ‘‘(B) verification from another governmental

7 source;

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

9 ‘‘(D) a signed United States or Puerto Rico in10 come tax return.

11 ‘‘(2) In the case of an independent student, as defined

12 in section 480(d), documentation of an individual’s status

13 pursuant to subsection (g)(2) shall be made by providing

14 the Secretary with—

15 ‘‘(A) a signed statement from the individual;

16 ‘‘(B) verification from another governmental

17 source;

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

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

21 (10) in section 402C(c), by striking ‘‘and for22 eign’’ and inserting ‘‘foreign’’;

23 (11) in section 402D(c)(2), by striking ‘‘either’’;

24 (12) in section 404A(1), by striking ‘‘high25 school’’ and inserting ‘‘high school’’;
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1 (13) in section 404B(a)(1)—

2 (A) by striking ‘‘section 403C’’ and insert3 ing ‘‘section 404D’’; and

4 (B) by striking ‘‘section 403D’’ and insert5 ing ‘‘section 404C’’;

6 (14) in section 404B(a)(2), by inserting ‘‘shall’’

7 after ‘‘paragraph (1)’’;

8 (15) in section 404C(b)(3)(A), by striking

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

10 (16) in section 404C(b)(3)(D)(i), by striking

11 ‘‘section 401D of this subpart’’ and inserting ‘‘section

12 402D’’;

13 (17) in section 404C(b)(3)(D)(ii), by striking

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

15 402D’’;

16 (18) in section 404D(d)(3), by striking ‘‘program

17 of instruction’’ and inserting ‘‘program of under18 graduate instruction’’;

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

20 first place it appears;

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

22 and inserting ‘‘financial’’;

23 (21) in section 404F(a), by striking ‘‘under this

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

25 chapter shall biennially’’;
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1 (22) in section 404F(c), by striking ‘‘bian2 nually’’ and inserting ‘‘biennially’’;

3 (23) in section 404G—

4 (A) by striking ‘‘an appropriation’’ and in5 serting ‘‘to be appropriated’’; and

6 (B) by striking the second sentence and in7 serting the following: ‘‘For any fiscal year for

8 which funds are authorized to be appropriated to

9 carry out subpart 4 of part A of this title, no

10 amount may be expended to carry out the provi11 sions of this chapter unless the amount appro12 priated for such fiscal year to carry out such

13 subpart 4 exceed $60,000,000.’’;

14 (24) in section 409A(1), by striking ‘‘private fi15 nancial’’ and inserting ‘‘private student financial’’;

16 (25) in section 413C(d)—

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

18 of the institution’s allocation shall be made

19 available to such students, except that’’ and in20 serting ‘‘and’’; and

21 (B) by striking ‘‘5 percent of the need’’ and

22 inserting ‘‘5 percent of the total financial need’’;

23 (26) in section 413D(d)(3)(C), by striking

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

25 and inserting ‘‘150 percent of the difference between
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1 the income protection allowance for a family of five

2 with one in college and the income protection allow3 ance for a family of six with one in college’’;

4 (27) in section 415C(b)(7), by striking the period

5 at the end and inserting a semicolon;

6 (28) in section 419C(b)—

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

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

9 inserting ‘‘for a period of not less than 1 or more

10 than 4 years during the first 4 years of study’’;

11 and

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

13 ‘‘The State educational agency administering the program

14 in a State shall have discretion to determine the period of

15 the award (within the limits specified in the preceding sen16 tence), except that—

17 ‘‘(1) if the amount appropriated for this subpart

18 for any fiscal year exceeds the amount appropriated

19 for this subpart for fiscal year 1993, the Secretary

20 shall identify to each State educational agency the

21 number of scholarships available to that State under

22 section 419D(b) that are attributable to such excess;

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

24 not less than that number of scholarships for a period

25 of 4 years.’’; and
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1 (29) in section 419D, by adding at the end the

2 following new subsection:

3 ‘‘(d) CONSOLIDATION BY INSULAR AREAS PROHIB4 ITED.—Notwithstanding section 501 of Public Law 95–

5 1134 (48 U.S.C. 1469a), funds allocated under this part

6 to an Insular Area described in that section shall be deemed

7 to be direct payments to classes of individuals, and the In8 sular Area may not consolidate such funds with other funds

9 received by the Insular Area from any department or agen10 cy of the United States Government.’’; and

11 (30) in section 419G(b), by striking ‘‘the District

12 of Columbia, the Commonwealth of Puerto Rico,’’ and

13 inserting ‘‘the Federated States of Micronesia, the Re14 public of the Marshall Islands,’’.

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

16 ACT.—Part B of title IV of the Act (20 U.S.C. 1071 et seq.)

17 is amended—

18 (1) in section 422(c)(7), by striking the semi19 colon at the end of subparagraph (B) and inserting

20 a period;

21 (2) in section 425(a)(1)(A)—

22 (A) by striking clauses (ii) and (iii) and

23 inserting the following:

24 ‘‘(ii) in the case of a student at an eligible

25 institution who has successfully completed such
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1 first year but has not successfully completed the

2 remainder of a program of undergraduate edu3 cation—

4 ‘‘(I) $3,500; or

5 ‘‘(II) if such student is enrolled in a

6 program of undergraduate education, the

7 remainder of which is less than one aca8 demic year, the maximum annual loan

9 amount that such student may receive may

10 not exceed the amount that bears the same

11 ratio to the amount specified in subclause

12 (I) as such remainder measured in semester,

13 trimester, quarter, or clock hours bears to

14 one academic year;

15 ‘‘(iii) in the case of a student at an eligible

16 institution who has successfully completed the

17 first and second years of a program of under18 graduate education but has not successfully com19 pleted the remainder of such program—

20 ‘‘(I) $5,500; or

21 ‘‘(II) if such student is enrolled in a

22 program of undergraduate education, the

23 remainder of which is less than one aca24 demic year, the maximum annual loan

25 amount that such student may receive may
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1 not exceed the amount that bears the same

2 ratio to the amount specified in subclause

3 (I) as such remainder measured in semester,

4 trimester, quarter, or clock hours bears to

5 one academic year;’’ and

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

7 clause (iv) and inserting a period;

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

9 thereof the following:

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

11 number of years that a student has completed in a

12 program of undergraduate education shall include

13 any prior enrollment in an eligible program of under14 graduate education for which the student was award15 ed an associate or baccalaureate degree, if such degree

16 is required by the institution for admission to the

17 program in which the student is enrolled.’’;

18 (4) in the matter following subclause (II) of sec19 tion 427(a)(2)(C)(i), by inserting ‘‘section’’ before

20 ‘‘428B or 428C’’;

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

22 part,’’ and inserting ‘‘under section 427, 428, or

23 428H of this part,’’;

24 (6) in section 427A(i)(1), by amending subpara25 graph (B) to read as follows:
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1 ‘‘(B)(i) during any period in which a stu2 dent is eligible to have interest payments paid

3 on his or her behalf by the Government pursuant

4 to section 428(a), by crediting the excess interest

5 to the Government; or

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

7 such excess interest to the reduction of principal

8 to the extent provided in paragraph (5) of this

9 subsection.’’;

10 (7) in section 427A(i)(2)(B)—

11 (A) by striking ‘‘outstanding principal bal12 ance’’ and inserting ‘‘average daily principal

13 balance’’; and

14 (B) by striking ‘‘at the end of’’ and insert15 ing ‘‘during’’;

16 (8) in section 427A(i)(4)(B)—

17 (A) by striking ‘‘outstanding principal bal18 ance’’ and inserting ‘‘average daily principal

19 balance’’; and

20 (B) by striking ‘‘at the end of’’ and insert21 ing ‘‘during’’;

22 (9) in section 427A(i)(5)—

23 (A) in the first sentence—

24 (i) by striking ‘‘paragraph (2)’’ and

25 inserting ‘‘paragraphs (2) and (4)’’; and
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1 (ii) by striking ‘‘principle’’ and insert2 ing ‘‘principal’’; and

3 (B) in the second sentence by inserting be4 fore the period at the end the following: ‘‘, but

5 the excess interest shall be calculated and cred6 ited to the Secretary’’;

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

8 following new paragraph:

9 ‘‘(7) CONVERSION TO VARIABLE RATE.—(A) Sub10 ject to subparagraphs (C) and (D), a lender or holder

11 shall convert the interest rate on a loan that is made

12 pursuant to this part and is subject to the provisions

13 of this subsection to a variable rate. Such conversion

14 shall occur not later than January 1, 1995, and, com15 mencing on the date of conversion, the applicable in16 terest rate for each 12-month period beginning on

17 July 1 and ending on June 30 shall be determined by

18 the Secretary on the June 1 preceding each such 12-

19 month period and be equal to the sum of (i) the bond

20 equivalent rate of the 91-day Treasury bills auctioned

21 at the final auction prior to such June 1; and (ii)

22 3.25 percent in the case of loans described in para23 graph (1), or 3.10 percent in the case of loans de24 scribed in paragraph (3).
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1 ‘‘(B) In connection with the conversion specified

2 in subparagraph (A) for any period prior to such

3 conversion, and subject to paragraphs (C) and (D), a

4 lender or holder shall convert the interest rate to a

5 variable rate on a loan that is made pursuant to this

6 part and is subject to the provisions of this subsection

7 to a variable rate. The interest rates for such period

8 shall be reset on a quarterly basis and the applicable

9 interest rate for any quarter or portion thereof shall

10 equal the sum of (i) the average of the bond equivalent

11 rates of 91-Treasury bills auctioned for the preceding

12 3-month period, and (ii) 3.25 percent in the case of

13 loans described in paragraph (1) or 3.10 percent in

14 the case of loans described in paragraph (3). The re15 bate of excess interest derived through this conversion

16 shall be provided to the borrower as specified in para17 graph (5) for loans described in paragraph (1) or to

18 the Government and borrower as specified in para19 graph (3).

20 ‘‘(C) A lender or holder of a loan being converted

21 pursuant to this paragraph shall complete such con22 version on or before January 1, 1995. The lender or

23 holder shall notify the borrower that the loan shall be

24 converted to a variable interest rate and provide a de25 scription of the rate to the borrower not later than 30
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1 days prior to the conversion. The notice shall advise

2 the borrower that such rate shall be calculated in ac3 cordance with the procedures set forth in this para4 graph and shall provide the borrower with a substan5 tially equivalent benefit as the adjustment otherwise

6 provided for under this subsection. Such notice may

7 be incorporated into the disclosure required under sec8 tion 433(b) if such disclosure has not been previously

9 made.

10 ‘‘(D) The interest rate on a loan converted to a

11 variable rate pursuant to this paragraph shall not ex12 ceed the maximum interest rate applicable to the loan

13 prior to such conversion.

14 ‘‘(E) Loans on which the interest rate is con15 verted in accordance with subparagraph (A) or (B)

16 shall not be subject to any other provisions of this

17 subsection.’’;

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

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

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

21 428H’’ after ‘‘428A’’;

22 (13) in section 428(b)(1)(A)—

23 (A) by striking clauses (ii) and (iii) and

24 inserting the following:
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1 ‘‘(ii) in the case of a student at an eli2 gible institution who has successfully com3 pleted such first year but has not success4 fully completed the remainder of a program

5 of undergraduate education—

6 ‘‘(I) $3,500; or

7 ‘‘(II) if such student is enrolled in

8 a program of undergraduate education,

9 the remainder of which is less than one

10 academic year, the maximum annual

11 loan amount that such student may re12 ceive may not exceed the amount that

13 bears the same ratio to the amount

14 specified in subclause (I) as such re15 mainder measured in semester, tri16 mester, quarter, or clock hours bears to

17 one academic year;

18 ‘‘(iii) in the case of a student at an eli19 gible institution who has successfully com20 pleted the first and second years of a pro21 gram of undergraduate education but has

22 not successfully completed the remainder of

23 such program—

24 ‘‘(I) $5,500; or
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1 ‘‘(II) if such student is enrolled in

2 a program of undergraduate education,

3 the remainder of which is less than one

4 academic year, the maximum annual

5 loan amount that such student may re6 ceive may not exceed the amount that

7 bears the same ratio to the amount

8 specified in subclause (I) as such re9 mainder measured in semester, tri10 mester, quarter, or clock hours bears to

11 one academic year;’’;

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

13 (v); and

14 (C) by inserting after clause (iii) the follow15 ing:

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

17 received an associate or baccalaureate de18 gree and is enrolled in an eligible program

19 for which the institution requires such de20 gree for admission, the number of years that

21 a student has completed in a program of

22 undergraduate education shall, for the pur23 poses of clauses (ii) and (iii), include any

24 prior enrollment in the eligible program of
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1 undergraduate education for which the stu2 dent was awarded such degree; and’’;

3 (14) in section 428(b)(1)(B), by striking the

4 matter following clause (ii) and inserting the follow5 ing:

6 ‘‘except that the Secretary may increase the limit

7 applicable to students who are pursuing pro8 grams which the Secretary determines are excep9 tionally expensive;’’;

10 (15) in section 428(b)(1), by amending subpara11 graph (N) to read as follows:

12 ‘‘(N) provides that funds borrowed by a stu13 dent—

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

15 check or other means that is payable to, and

16 requires the endorsement or other certifi17 cation by, such student; or

18 ‘‘(ii) in the case of a student who is

19 studying outside the United States in a pro20 gram of study abroad that is approved for

21 credit by the home institution at which such

22 student is enrolled or at an eligible foreign

23 institution, are, at the request of the stu24 dent, disbursed directly to the student by the

25 means described in clause (i), unless such
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1 student requests that the check be endorsed,

2 or the funds transfer authorized, pursuant

3 to an authorized power-of-attorney;’’;

4 (16) in section 428(b)(1)(U)—

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

6 ‘‘this clause’’; and

7 (B) by inserting a comma after ‘‘emergency

8 action’’ each place it appears;

9 (17) in section 428(b)(1)—

10 (A) by striking subparagraphs (V) and (W);

11 and

12 (B) by redesignating subparagraphs (X),

13 (Y), and (Z) as subparagraphs (V), (W,) and

14 (X), respectively;

15 (18) in section 428(b)(2)(F)(i), by striking ‘‘each

16 to provide a separate notice’’ and inserting ’’either

17 jointly or separately to provide a notice’’;

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

19 ‘‘transferor’’ and inserting ‘‘transferee’’;

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

21 ‘‘to another holder’’;

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

23 ‘‘such other’’ and inserting ‘‘the new’’;

24 (22) in section 428(b), by amending paragraph

25 (7) to read as follows:
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1 ‘‘(7) REPAYMENT PERIOD.—(A) In the case of a

2 loan made under section 427 or 428, the repayment

3 period shall exclude any period of authorized

4 deferment or forbearance and shall begin—

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

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

7 normal full-time academic workload (as deter8 mined by the institution); or

9 ‘‘(ii) on an earlier date if the borrower re10 quests and is granted a repayment schedule that

11 provides for repayment to commence at an ear12 lier date.

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

14 428H, the repayment period shall exclude any period

15 of authorized deferment or forbearance, and shall

16 begin as described in clause (i) or (ii) of subpara17 graph (A), but interest shall begin to accrue or be

18 paid by the borrower on the day the loan is disbursed.

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

20 428A, 428B, or 428C, the repayment period shall

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

22 is disbursed in multiple installments, on the day of

23 the last such disbursement, and shall exclude any pe24 riod of authorized deferment or forbearance.’’;
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1 (23) in section 428(b), by adding at the end

2 thereof the following new paragraph:

3 ‘‘(8) MEANS OF DISBURSEMENT OF LOAN PRO4 CEEDS.—Nothing in this title shall be interpreted to

5 prohibit the disbursement of loan proceeds by means

6 other than by check or to allow the Secretary to re7 quire checks to be made co-payable to the institution

8 and the borrower.’’;

9 (24) in section 428(c)(1)(A), by striking the last

10 sentence and inserting the following: ‘‘A guaranty

11 agency shall file a claim for reimbursement with re12 spect to losses under this subsection within 45 days

13 after the guaranty agency discharges its insurance ob14 ligation on the loan.’’;

15 (25) in section 428(c)(2)(G), by striking ‘‘dem16 onstrates’’ and inserting ‘‘certifies’’;

17 (26) in section 428(c)(3) by striking subpara18 graph (A) and inserting the following:

19 ‘‘(A) shall contain provisions providing

20 that—

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

22 shall grant a borrower forbearance, renew23 able at 12-month intervals, on terms agreed

24 to in writing by the parties to the loan with

25 the approval of the insurer, and otherwise
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1 consistent with the regulations of the Sec2 retary, if the borrower—

3 ‘‘(I) is serving in a medical or

4 dental internship or residency pro5 gram, the successful completion of

6 which is required to begin professional

7 practice or service, or is serving in a

8 medical or dental internship or resi9 dency program leading to a degree or

10 certificate awarded by an institution of

11 higher education, a hospital, or a

12 health care facility that offers post13 graduate training, provided that if the

14 borrower qualifies for a deferment

15 under section 427(a)(2)(C)(vii) or sub16 section (b)(1)(M)(vii) of this section as

17 in effect prior to the enactment of the

18 Higher Education Amendments of

19 1992, or section 427(a)(2)(C) or sub20 section (b)(1)(M) of this section as

21 amended by such amendments, the bor22 rower has exhausted his or her eligi23 bility for such deferment;
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1 ‘‘(II) has a debt burden under this

2 title that equals or exceeds 20 percent

3 of income; or

4 ‘‘(III) is serving in a national

5 service position for which the borrower

6 receives a national service educational

7 award under the National and Com8 munity Service Trust Act of 1993;

9 ‘‘(ii) the length of the forbearance

10 granted by the lender—

11 ‘‘(I) under clause (i)(I) shall

12 equal the length of time remaining in

13 the borrower’s medical or dental in14 ternship or residency program, if the

15 borrower is not eligible to receive a

16 deferment described in such clause, or

17 such length of time remaining in the

18 program after the borrower has ex19 hausted the borrower’s eligibility for

20 such deferment;

21 ‘‘(II) under clause (i)(II) shall not

22 exceed 3 years; or

23 ‘‘(III) under clause (i)(III) shall

24 not exceed the period for which the bor-
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1 rower is serving in a position described

2 in such clause; and

3 ‘‘(iii) no administrative or other fee

4 may be charged in connection with the

5 granting of a forbearance under clause (i),

6 and no adverse information regarding a

7 borrower may be reported to a credit bureau

8 organization solely because of the granting

9 of such forbearance;’’;

10 (27) in section 428(e)(2)(A)—

11 (A) by striking ‘‘(i)’’;

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

13 and

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

15 (28) in section 428(j)(2), in the matter preceding

16 subparagraph (A), by striking ‘‘lender of last resort’’

17 and inserting ‘‘lender-of-last-resort’’;

18 (29) in section 428A(b)(1), by striking subpara19 graph (B) and inserting the following:

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

21 institution who has successfully completed such

22 first and second years but has not successfully

23 completed the remainder of a program of under24 graduate education—

25 ‘‘(i) $5,000; or
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1 ‘‘(ii) if such student is enrolled in a

2 program of undergraduate education, the

3 remainder of which is less than one aca4 demic year, the maximum annual loan

5 amount that such student may receive may

6 not exceed the amount that bears the same

7 ratio to the amount specified in subclause

8 (I) as such remainder measured in semester,

9 trimester, quarter, or clock hours bears to

10 one academic year.’’;

11 (30) in section 428A(b)(1)—

12 (A) by redesignating subparagraph (C) as

13 subparagraph (D); and

14 (B) by inserting after subparagraph (B) the

15 following new subparagraph:

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

17 number of years that a student has completed in

18 a program of undergraduate education shall in19 clude any prior enrollment in an eligible pro20 gram of undergraduate education for which the

21 student was awarded an associate or bacca22 laureate degree, if such degree is required by the

23 institution for admission to the program in

24 which the student is enrolled.’’;
26

S. 1507 EAS

1 (31) in section 428A(b)(3)(B)(i), by striking

2 ‘‘section 428’’ and inserting ‘‘sections 428 and

3 428H’’;

4 (32) in section 428A(c)(1), by striking ‘‘sections

5 427 or 428(b)’’ and inserting ‘‘section 427 or 428(b)’’;

6 (33) in section 428C(a)(3)(A), by striking ‘‘de7 linquent or defaulted borrower who will reenter re8 payment through loan consolidation’’ and inserting

9 ‘‘defaulted borrower who has made arrangements to

10 repay the obligation on the defaulted loans satisfac11 tory to the holders of the defaulted loans’’;

12 (34) in section 428C(a)(4)(A), by striking ‘‘, ex13 cept for loans made to parent borrowers under section

14 428B as in effect prior to the enactment of the Higher

15 Education Amendments of 1986’’;

16 (35) in section 428C(a)(4)(C), by striking ‘‘part

17 C’’ and inserting ‘‘part A’’;

18 (36) in section 428C(c)(2)(A)(vi), by inserting a

19 period after ‘‘30 years’’;

20 (37) in section 428C(c)(3)(A), by inserting ‘‘be

21 an amount’’ before ‘‘equal to’’;

22 (38) in section 428F(a)(2)—

23 (A) by striking ‘‘this paragraph’’ and in24 serting ‘‘paragraph (1) of this subsection’’; and
27

S. 1507 EAS

1 (B) by striking ‘‘this section’’ and inserting

2 ‘‘this subsection’’;

3 (39) in section 428F(a)(4), by striking ‘‘this

4 paragraph’’ and inserting ‘‘paragraph (1) of this sub5 section’’;

6 (40) in section 428F(b), by adding at the end

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

8 only obtain the benefit of this subsection with respect

9 to renewed eligibility once.’’;

10 (41) in section 428G(c)(3), by striking ‘‘dis11 bursed’’ and inserting ‘‘disbursed by the lender’’;

12 (42) in section 428H(d)(2), by amending sub13 paragraph (B) to read as follows:

14 ‘‘(B) in the case of a student at an eligible

15 institution who has successfully completed such

16 first and second years but has not successfully

17 completed the remainder of a program of under18 graduate education—

19 ‘‘(i) $5,000; or

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

21 program of undergraduate education, the

22 remainder of which is less than one aca23 demic year, the maximum annual loan

24 amount that such student may receive may

25 not exceed the amount that bears the same
28

S. 1507 EAS

1 ratio to the amount specified in subclause

2 (I) as such remainder measured in semester,

3 trimester, quarter, or clock hours bears to

4 one academic year;’’;

5 (43) in section 428H(e)(1)—

6 (A) by striking ‘‘shall commence 6 months

7 after the month in which the student ceases to

8 carry at least one-half the normal full-time work9 load as determined by the institution.’’ and in10 serting ‘‘shall begin at the beginning of the re11 payment period described in section 428(b)(7).’’;

12 (B) by adding at the end thereof the follow13 ing new sentence: ‘‘Not less than 30 days prior

14 to the anticipated commencement of such repay15 ment period, the holder of such loan shall pro16 vide notice to the borrower that interest will ac17 crue before repayment begins and of the borrow18 er’s option to begin loan repayment at an earlier

19 date.’’;

20 (44) in section 428H(e)(4), by striking

21 ‘‘427A(e)’’ and inserting ‘‘427A’’;

22 (45) in section 428H, by redesignating sub23 section (l) as subsection (h);
29

S. 1507 EAS

1 (46) in section 428I(g), by striking ‘‘the Federal

2 False Claims Act’’ and inserting ‘‘section 3729 of title

3 31, United States Code,’’;

4 (47) in section 428J(b)(1), by striking ‘‘sections

5 428A, 428B, or 428C’’ and inserting ‘‘section 428A,

6 428B, or 428C’’;

7 (48) in section 428J(b)(1)(B), by striking

8 ‘‘agrees in writing to volunteer for service’’ and in9 serting ‘‘serves as a full-time volunteer’’;

10 (49) in section 428J(c)(1), by striking ‘‘academic

11 year’’ each place it appears and inserting ‘‘year of

12 service’’;

13 (50) in the heading for section 428J(d), by strik14 ing ‘‘OF ELIGIBILITY’’ and inserting ‘‘TO ELIGIBLE’’;

15 (51) in section 428J, by amending subsection (e)

16 to read as follows:

17 ‘‘(e) APPLICATION FOR REPAYMENT.—

18 ‘‘(1) IN GENERAL.—Each eligible individual de19 siring loan repayment under this section shall submit

20 a complete and accurate application to the Secretary

21 at such time, in such manner, and containing such

22 information as the Secretary may reasonably require.

23 Loan repayment under this section shall be on a first24 come, first-served basis and subject to the availability

25 of appropriations.
30

S. 1507 EAS

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

2 apply for repayment after completing each year of

3 qualifying service. The borrower shall receive forbear4 ance while engaged in qualifying service unless the

5 borrower is in deferment while so engaged.’’;

6 (52) in section 430A(f)(1), by striking the

7 comma at the end and inserting a semicolon;

8 (53) in the matter preceding paragraph (1) of

9 section 433(b), by striking ‘‘60 days’’ and inserting

10 ‘‘30 days’’;

11 (54) in section 433(e), by striking ‘‘section 428A,

12 428B,’’ and inserting ‘‘sections 428A, 428B,’’;

13 (55) in section 435(a), by inserting after para14 graph (2) the following new paragraph:

15 ‘‘(3) APPEALS BASED UPON ALLEGATIONS OF IM16 PROPER LOAN SERVICING.—An institution that—

17 ‘‘(A) is subject to loss of eligibility for the

18 Federal Family Education Loan Program pur19 suant to paragraph (2)(A) of this subsection;

20 ‘‘(B) is subject to loss of eligibility for the

21 Federal Supplemental Loans for Students pursu22 ant to section 428A(a)(2); or

23 ‘‘(C) is an institution whose cohort default

24 rate equals or exceeds 20 percent for the most re25 cent year for which data are available;
31

S. 1507 EAS

1 may include in its appeal of such loss or rate a de2 fense based on improper loan servicing (in addition

3 to other defenses). In any such appeal, the Secretary

4 shall take whatever steps are necessary to ensure that

5 such institution has access to a representative sample

6 (as determined by the Secretary) of the relevant loan

7 servicing and collection records of the affected guar8 anty agencies and loan servicers for a reasonable pe9 riod of time, not to exceed 30 days. The Secretary

10 shall reduce the institution’s cohort default rate to re11 flect the percentage of defaulted loans in the represent12 ative sample that are required to be excluded pursu13 ant to subsection (m)(1)(B).’’;

14 (56) in section 435(d)(2)(D), by striking ‘‘lender;

15 and’’ and inserting ‘‘lender;’’;

16 (57) in section 435(d)(2), by increasing the in17 dentation of the matter following subparagraph (F)

18 by two em spaces;

19 (58) in section 435(d)(3), by striking ‘‘435(o)’’

20 and inserting ‘‘435(m)’’;

21 (59) in section 435(m)(1)(A), by striking ‘‘428 or

22 428A’’ and inserting ‘‘428, 428A, or 428H,’’;

23 (60) in section 435(m)—

24 (A) by inserting at the end of paragraph

25 (1)(A) the following new sentence: ‘‘The Sec-
32

S. 1507 EAS

1 retary shall require that each guaranty agency

2 that has insured loans for current or former stu3 dents of the institution afford such institution a

4 reasonable opportunity (as specified by the Sec5 retary) to review and correct errors in the infor6 mation required to be provided to the Secretary

7 by the guaranty agency for the purposes of cal8 culating a cohort default rate for such institu9 tion, prior to the calculation of such rate.’’;

10 (B) in paragraph (1)(B), by striking ‘‘and,

11 in calculating’’ and all that follows through the

12 period at the end thereof and inserting the fol13 lowing: ‘‘and, in considering appeals with re14 spect to cohort default rates pursuant to sub15 section (a)(3), exclude any loans which, due to

16 improper servicing or collection, would, as dem17 onstrated by the evidence submitted in support of

18 the institution’s timely appeal to the Secretary,

19 result in an inaccurate or incomplete calculation

20 of such cohort default rate.’’;

21 (61) in section 435(m)(2)(D)—

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

23 made under section 428C that is used to repay

24 a loan made under section 428A)’’ after ‘‘section

25 428A’’ the first place it appears; and
33

S. 1507 EAS

1 (B) by inserting ‘‘(or a loan made under

2 section 428C a portion of which is used to repay

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

4 428A’’ the second place it appears;

5 (62) in section 435(m), by adding at the end

6 thereof the following new paragraph:

7 ‘‘(4) COLLECTION AND REPORTING OF COHORT

8 DEFAULT RATES.—(A) The Secretary shall collect

9 data from all insurers under this part and shall pub10 lish not less often than once every fiscal year a report

11 showing default data for each category of institution,

12 including (i) 4-year public institutions, (ii) 4-year

13 private institutions, (iii) 2-year public institutions,

14 (iv) 2-year private institutions, (v) 4-year propri15 etary institutions, (vi) 2-year proprietary institu16 tions, and (vii) less than 2-year proprietary institu17 tions.

18 ‘‘(B) The Secretary may designate such addi19 tional subcategories within the categories specified in

20 subparagraph (A) as the Secretary deems appro21 priate.

22 ‘‘(C) The Secretary shall publish not less often

23 than once every fiscal year a report showing default

24 data for each institution for which a cohort default

25 rate is calculated under this subsection.’’;
34

S. 1507 EAS

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

2 to read as follows:

3 ‘‘(b) PAYMENT OF CLAIMS ON LOANS IN BANK4 RUPTCY.—The Secretary shall pay to the holder of a loan

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

6 or 428H, the amount of the unpaid balance of principal

7 and interest owed on such loan—

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

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

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

11 under chapter 7 or 11 of such title commences an ac12 tion for a determination of dischargeability under

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

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

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

16 chapter 7 or 11 of such title.’’;

17 (64) in section 437(c)(1)—

18 (A) by striking ‘‘If a student borrower’’ and

19 inserting ‘‘If a borrower’’;

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

21 and inserting ‘‘under this part and the student

22 borrower, or the student on whose behalf a par23 ent borrowed, is unable’’; and
35

S. 1507 EAS

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

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

3 is enrolled’’; and

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

5 the following new sentence: ‘‘The amount discharged

6 under this subsection shall be treated the same as

7 loans under section 465(a)(5) of this title.’’;

8 (66) in the matter preceding paragraph (1) of

9 section 437A(a), by striking ‘‘under subsection (d)’’;

10 (67) in section 437A(c)(2), by inserting a period

11 at the end;

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

13 and

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

15 522’’ and inserting ‘‘section 552’’.

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

17 ACT.—Part C of title IV of the Act (42 U.S.C. 2751 et seq.)

18 is amended—

19 (1) in section 442(d)(4)(C), by striking ‘‘three20 fourths in the Pell Grant family size offset’’ and in21 serting ‘‘150 percent of the difference between the in22 come protection allowance for a family of five with

23 one in college and the income protection allowance for

24 a family of six with one in college’’;

25 (2) in section 442(e)—
36

S. 1507 EAS

1 (A) by inserting ‘‘(1)’’ before ‘‘If’’; and

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

3 paragraph:

4 ‘‘(2) If, under paragraph (1) of this subsection, an in5 stitution returns more than 10 percent of its allocation, the

6 institution’s allocation for the next fiscal year shall be re7 duced by the amount returned. The Secretary may waive

8 this paragraph for a specific institution if the Secretary

9 finds that enforcing this paragraph would be contrary to

10 the interest of the program.’’;

11 (3) in section 443(b)(2)(A), by striking ‘‘institu12 tion;’’ and inserting ‘‘institution; and’’;

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

14 (5) to read as follows:

15 ‘‘(5) provide that the Federal share of the com16 pensation of students employed in the work-study pro17 gram in accordance with the agreement shall not ex18 ceed 75 percent for academic year 1993–1994 and

19 succeeding academic years, except that the Federal

20 share may exceed such amounts of compensation if the

21 Secretary determines, pursuant to regulations pro22 mulgated by the Secretary establishing objective cri23 teria for such determinations, that a Federal share in

24 excess of such amounts is required in furtherance of

25 the purpose of this part;’’; and
37

S. 1507 EAS

1 (5) in section 443(b)(8), by striking subpara2 graphs (A), (B), and (C) and inserting the following:

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

4 ‘‘(i) to the maximum extent prac5 ticable, complement and reinforce the edu6 cation programs or vocational goals of such

7 students; and

8 ‘‘(ii) furnish student services that are

9 directly related to the student’s education,

10 as determined by the Secretary pursuant to

11 regulations, except that no student shall be

12 employed in any position that would in13 volve the solicitation of other potential stu14 dents to enroll in the school; or

15 ‘‘(B) in community service in accordance

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

17 (e) AMENDMENT TO PART D OF TITLE IV OF THE

18 ACT.—Section 453(b)(2)(B) of the Act (20 U.S.C.

19 1087c(b)(2)(B)) is amended to read as follows:

20 ‘‘(B) if the Secretary determines it nec21 essary in order to carry out the purposes of sub22 paragraph (A) and attain such reasonable rep23 resentation (as required by subparagraph (A)),

24 selecting additional institutions.’’.
38

S. 1507 EAS

1 (f) AMENDMENTS TO PART E OF TITLE IV OF THE

2 ACT.—Part E of title IV of the Act (20 U.S.C. 1087aa et

3 seq.) is amended—

4 (1) in subsections (a)(1) and (a)(2)(D) of section

5 462, by striking ‘‘if the institution which has’’ each

6 place it appears and inserting ‘‘if the institution

7 has’’;

8 (2) in section 462(d)(4)(C), by striking ‘‘three9 fourths in the Pell Grant family size offset’’ and in10 serting ‘‘150 percent of the difference between the in11 come protection allowance for a family of five with

12 one in college and the income protection allowance for

13 a family of six with one in college’’;

14 (3) in section 462(e), by reducing the indenta15 tion of paragraph (2) by two em spaces;

16 (4) in section 462(h)(4), by reducing the inden17 tation of subparagraph (B) by two em spaces;

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

19 ‘‘7.5 percent’’ and inserting ‘‘7.5 percent for award

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

21 does not exceed 15 percent for award year 1994–1995

22 or for any succeeding award year’’;

23 (6) in section 463(c)(4), by striking ‘‘shall dis24 close’’ and inserting ‘‘shall disclose at least annually’’;
39

S. 1507 EAS

1 (7) in section 463, by adding at the end the fol2 lowing new subsections:

3 ‘‘(d) LIMITATION ON USE OF INTEREST BEARING AC4 COUNTS.—In carrying out the provisions of subsection

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

6 agency, collection attorney, or loan servicer collecting loans

7 made under this part deposit amounts collected on such

8 loans in interest bearing accounts, unless such agency, at9 torney, or servicer holds such amounts for more than 45

10 days.

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

12 out the provisions of subsection (a)(5) relating to due dili13 gence, the Secretary shall make every effort to ensure that

14 institutions of higher education may use Internal Revenue

15 Service skip-tracing collection procedures on loans made

16 under this part.’’;

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

18 and (e);

19 (9) in section 464(c)(2)(B) by striking ‘‘repay20 ment or’’ and inserting ‘‘repayment of’’;

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

22 ‘‘Fullbright’’ and inserting ‘‘Fulbright’’;

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

24 and inserting ‘‘principal’’;
40

S. 1507 EAS

1 (12) in section 465(a)(2)(D), by striking ‘‘serv2 ices’’ and inserting ‘‘service’’;

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

4 after the semicolon;

5 (14) in section 465(a), by reducing the indenta6 tion of paragraph (6) by 2 em spaces; and

7 (15) in section 466(c), by reducing the indenta8 tion of paragraph (2) by two em spaces.

9 (g) AMENDMENTS TO PART F OF TITLE IV OF THE

10 ACT.—Part F of title IV of the Act (20 U.S.C. 1087kk et

11 seq.) is amended—

12 (1) in section 472—

13 (A) in paragraph (10), by striking ‘‘and’’

14 after the semicolon;

15 (B) in paragraph (11), by striking the pe16 riod and inserting ‘‘; and’’; and

17 (C) by adding at the end the following new

18 paragraph:

19 ‘‘(12) for a student who receives a loan under

20 this or any other Federal law, or, at the option of the

21 institution, a conventional student loan incurred by

22 the student to cover a student’s cost of attendance at

23 the institution, an allowance for the actual cost of

24 any loan fee, origination fee, or insurance premium

25 charged to such student or such parent on such loan,
41

S. 1507 EAS

1 or the average cost of any such fee or premium

2 charged by the Secretary, lender, or guaranty agency

3 making or insuring such loan, as the case may be.’’;

4 (2) in the table contained in sections 475(c)(4)

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

6 (3) in section 475(f)(3)—

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

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

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

10 parent’’ and inserting ‘‘(1) of this subsection, or

11 if a parent’’; and

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

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

14 (4) in section 475(g)(1)(B), by inserting a close

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

16 (5) in the table contained in section 475(g)(3),

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

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

19 (6) in section 476, by adding at the end thereof

20 the following new subsection:

21 ‘‘(d) COMPUTATIONS IN CASE OF SEPARATION, DI22 VORCE, OR DEATH.—In the case of a student who is di23 vorced or separated, or whose spouse has died, the spouse’s

24 income and assets shall not be considered in determining

25 the family’s contribution from income or assets.’’;
42

S. 1507 EAS

1 (7) in section 477 by adding at the end thereof

2 the following new subsection:

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

6 income and assets shall not be considered in determining

7 the family’s available income or assets.’’;

8 (8) in section 478—

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

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

11 (B) in subsection (c)(1), by inserting ‘‘De12 cember’’ before ‘‘1992’’;

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

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

15 Statistics’’;

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

17 ‘‘(c)’’;

18 (11) in section 479(b)(1)(B)(i)—

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

20 if any)’’ after ‘‘student’’ each time it appears;

21 and

22 (B) by striking ‘‘such’’;

23 (12) in section 479(b)(2), by striking ‘‘five ele24 ments’’ and inserting ‘‘six elements’’;
43

S. 1507 EAS

1 (13) in section 479(b)(2)(E), by striking the

2 semicolon and inserting a comma;

3 (14) in section 479(b)(3)—

4 (A) in subparagraph (A), by inserting ‘‘(in5 cluding any prepared or electronic version of

6 such form)’’ before ‘‘required’’; and

7 (B) in subparagraph (B), by inserting ‘‘(in8 cluding any prepared or electronic version of

9 such return)’’ before ‘‘required’’;

10 (15) in section 479(c)—

11 (A) by amending subparagraph (A) of

12 paragraph (1) to read as follows:

13 ‘‘(A) the student’s parents were not required

14 to file an income tax return under section

15 6012(a)(1) of the Internal Revenue Code of 1986;

16 and’’;

17 (B) by amending subparagraph (A) of

18 paragraph (2) to read as follows:

19 ‘‘(A) the student (and the student’s spouse,

20 if any) was not required to file an income tax

21 return under section 6012(a)(1) of the Internal

22 Revenue Code of 1986; and’’; and

23 (C) in subparagraph (B) of paragraphs (1)

24 and (2), by inserting ‘‘in 1992 or the current
44

S. 1507 EAS

1 year, whichever is higher,’’ after ‘‘that may be

2 earned’’; and

3 (16) in section 479A, by adding at the end the

4 following new subsection:

5 ‘‘(c) ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES.—

6 ‘‘(1) IN GENERAL.—A student financial aid ad7 ministrator shall be considered to be making an ad8 justment for special circumstances in accordance with

9 subsection (a) if—

10 ‘‘(A) in the case of a dependent student—

11 ‘‘(i) such student received a Federal

12 Pell Grant as a dependent student in aca13 demic year 1992–1993 and the amount of

14 such student’s Federal Pell Grant for aca15 demic year 1993–1994 is at least $500 less

16 than the amount of such student’s Federal

17 Pell Grant for academic year 1992–1993;

18 and

19 ‘‘(ii) the decrease described in clause

20 (i) is the direct result of a change in the de21 termination of such student’s need for as22 sistance in accordance with this part that is

23 attributable to the enactment of the Higher

24 Education Amendments of 1992; and
45

S. 1507 EAS

1 ‘‘(B) in the case of a single independent stu2 dent—

3 ‘‘(i) such student received a Federal

4 Pell Grant as a single independent student

5 in academic year 1992–1993 and qualified

6 as an independent student in accordance

7 with section 480(d) for academic year

8 1993–1994, and the amount of such stu9 dent’s Federal Pell Grant for academic year

10 1993–1994 is at least $500 less than the

11 amount of such student’s Federal Pell Grant

12 for academic year 1992–1993; and

13 ‘‘(ii) the decrease described in clause

14 (i) is the direct result of a change in the de15 termination of such student’s need for as16 sistance in accordance with this part that is

17 attributable to the enactment of the Higher

18 Education Amendments of 1992.

19 ‘‘(2) AMOUNT.—A financial aid administrator

20 shall not make an adjustment for special cir21 cumstances pursuant to this subsection in an amount

22 that exceeds one-half of the difference between the

23 amount of a student’s Federal Pell Grant for aca24 demic year 1992–1993 and the amount of such stu-
46

S. 1507 EAS

1 dent’s Federal Pell Grant for academic year 1993–

2 1994.

3 ‘‘(3) ACADEMIC YEAR LIMITATION.—A financial

4 aid administrator shall make adjustments under this

5 subsection only for Federal Pell Grants awarded for

6 academic years 1993–1994, 1994–1995, and 1995–

7 1996.

8 ‘‘(4) SPECIAL RULE.—Adjustments under this

9 subsection shall be made in any fiscal year only if an

10 Act that contains an appropriation for such fiscal

11 year to carry out this subsection is enacted on or after

12 the date of enactment of the Higher Education Tech13 nical Amendments of 1993.

14 ‘‘(5) LIMITATION.—Adjustments under this sub15 section shall not be available for any academic year

16 to any student who, on the basis of the financial cir17 cumstances of the student for the current academic

18 year, would not have been eligible for a grant under

19 this section in academic year 1992–1993.’’;

20 (17) in section 480(c)(2), by striking ‘‘Title’’

21 each place it appears and inserting ‘‘United States

22 Code, title’’;

23 (18) in section 480(d)(2), by inserting ‘‘or was

24 a ward of the court until the individual reached the

25 age of 18’’ before the semicolon;
47

S. 1507 EAS

1 (19) in section 480(j), by reducing the indenta2 tion of paragraph (3) by 2 em spaces; and

3 (20) in section 480, by adding at the end the fol4 lowing new subsections:

5 ‘‘(k) DEPENDENTS.—(1) Except as otherwise provided,

6 the term ‘dependent of the parent’ means the student, de7 pendent children of the student’s parents, including those

8 children who are deemed to be dependent students when ap9 plying for aid under this title, and other persons who live

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

11 the parent and will continue to receive more than half of

12 their support from the parent during the award year.

13 ‘‘(2) Except as otherwise provided, the term ‘dependent

14 of the student’ means the student’s dependent children and

15 other persons (except the student’s spouse) who live with

16 and receive more than one-half of their support from the

17 student and will continue to receive more than half of their

18 support from the student during the award year.

19 ‘‘(l) FAMILY SIZE.—(1) In determining family size in

20 the case of a dependent student—

21 ‘‘(A) if the parents are not divorced or separated,

22 family members include the student’s parents, and the

23 dependents of the student’s parents including the stu24 dent;
48

S. 1507 EAS

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

2 family members include the parent whose income is

3 included in computing available income and that

4 parent’s dependents, including the student; and

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

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

7 parent was a widow or widower who has remarried,

8 family members also include, in addition to those in9 dividuals referred to in subparagraph (B), the new

10 spouse and any dependents of the new spouse if that

11 spouse’s income is included in determining the par12 ents’ adjusted available income.

13 ‘‘(2) In determining family size in the case of an inde14 pendent student—

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

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

17 and

18 ‘‘(B) if the student is divorced or separated, fam19 ily members do not include the spouse (or ex-spouse),

20 but do include the student and the student’s depend21 ents.

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

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

24 or business, including real estate, inventories, buildings,
49

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

2 and copyrights.’’.

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

4 ACT.—Part G of title IV of the Act (20 U.S.C. 1088 et seq.)

5 is amended—

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

7 the semicolon the following: ‘‘, except that the Sec8 retary, at the request of such institution, may waive

9 the applicability of this subparagraph to such institu10 tion for good cause, as determined by the Secretary in

11 the case of an institution of higher education that

12 provides a 2-year or 4-year program of instruction

13 for which the institution awards an associate or bac14 calaureate degree’’;

15 (2) in section 481(a)(3)(D)—

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

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

18 high school diploma or its recognized equiva19 lent’’; and

20 (B) by inserting before the period the follow21 ing: ‘‘, except that the Secretary may waive the

22 limitation contained in this subparagraph if a

23 nonprofit institution demonstrates to the satis24 faction of the Secretary that it exceeds such limi25 tation because it serves, through contracts with
50

S. 1507 EAS

1 Federal, State, or local government agencies, sig2 nificant numbers of students who do not have a

3 high school diploma or its recognized equiva4 lent’’;

5 (3) in section 481(a)(4), by amending subpara6 graph (A) to read as follows:

7 ‘‘(A) the institution, or an affiliate of the insti8 tution that has the power, by contract or ownership

9 interest, to direct or cause the direction of the man10 agement or policies of the institution, has filed for

11 bankruptcy; or’’;

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

13 (2) to read as follows:

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

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

16 weeks of instructional time, and, with respect to an under17 graduate course of study, shall require that during such

18 minimum period of instructional time a full-time student

19 is expected to complete at least 24 semester or trimester

20 hours or 36 quarter hours at an institution that measures

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

22 at an institution that measures program length in clock

23 hours. The Secretary may reduce such minimum of 30

24 weeks to not less than 26 weeks for good cause, as deter25 mined by the Secretary on a case-by-case basis, in the case
51

S. 1507 EAS

1 of an institution of higher education that provides a 2-year

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

3 awards an associate or baccalaureate degree.’’;

4 (5) in section 481(e) by striking paragraph (2)

5 and inserting the following:

6 ‘‘(2)(A) A program is an eligible program for purposes

7 of part B of this title if it is a program of at least 300

8 clock hours of instruction, but less than 600 clock hours of

9 instruction, offered during a minimum of 10 weeks, that—

10 ‘‘(i) has a verified completion rate of at least 70

11 percent, as determined in accordance with the regula12 tions of the Secretary;

13 ‘‘(ii) has a verified placement rate of at least 70

14 percent, as determined in accordance with the regula15 tions of the Secretary; and

16 ‘‘(iii) satisfies such further criteria as the Sec17 retary may prescribe by regulation.

18 ‘‘(B) In the case of a program being determined eligible

19 for the first time under this paragraph, such determination

20 shall be made by the Secretary before such program is con21 sidered to have satisfied the requirements of this para22 graph.’’;

23 (6) in section 481(f), by striking ‘‘State’’ and in24 serting ‘‘individual, or any State,’’;
52

S. 1507 EAS

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

2 following new sentence: ‘‘For award year 1994–95,

3 this subsection shall not require a delay in the effec4 tiveness of regulatory changes affecting parts B, G,

5 and H of this title that are published in final form

6 by May 1, 1994.’’;

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

8 411(d)’’ and inserting ‘‘section 401(d)’’;

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

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

11 form for which a fee is charged shall be used to com12 plete the form prescribed under paragraph (1).’’;

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

14 the following sentence: ‘‘Entities designated by insti15 tutions of higher education or States to receive such

16 data shall be subject to all requirements of this sec17 tion, unless such requirements are waived by the Sec18 retary.’’;

19 (11) in section 483(f), by striking ‘‘address, so20 cial security number,’’ and inserting ‘‘address or em21 ployer’s address, social security number or employer

22 identification number,’’;

23 (12) in section 483, by redesignating subsections

24 (e), (f), and (g) as subsections (d), (e), and (f), respec25 tively;
53

S. 1507 EAS

1 (13) in section 484(a)(4)(B), by inserting after

2 ‘‘number’’ the following: ‘‘, except that the provisions

3 of this subparagraph shall not apply to a student

4 from the Republic of the Marshall Islands, the Fed5 erated States of Micronesia, or the Republic of

6 Palau’’;

7 (14) in section 484(a)(5), by striking ‘‘in the

8 United States for other than a temporary purpose

9 and able to provide evidence from the Immigration

10 and Naturalization Service of his or her intent to be11 come a permanent resident’’ and inserting ‘‘able to

12 provide evidence from the Immigration and Natu13 ralization Service that he or she is in the United

14 States for other than a temporary purpose with the

15 intention of becoming a citizen or permanent resi16 dent’’;

17 (15) in section 484(b)(2)—

18 (A) in subparagraph (A), by striking ‘‘and’’

19 after the semicolon;

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

21 period and inserting ‘‘; and’’; and

22 (C) by adding at the end the following new

23 subparagraph:

24 ‘‘(C) has applied for a loan under section 428H,

25 if such student is eligible to apply for such a loan.’’;
54

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1 (16) in the matter following subparagraph (B) of

2 section 484(b)(3), by striking ‘‘part B’’ and inserting

3 ‘‘part B or D’’;

4 (17) in section 484, by striking subsection (f);

5 (18) in section 484(g), by inserting a comma

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

7 (19) in the matter preceding clause (i) of section

8 484(h)(4)(B), by striking ‘‘constitutes’’ and inserting

9 ‘‘constitute’’;

10 (20) in section 484(i)(2)—

11 (A) by striking ‘‘(h)(4)(A)(ii)’’ and insert12 ing ‘‘(h)(4)(A)(i)’’; and

13 (B) by striking ‘‘documentation,’’ and in14 serting ‘‘documentation, or’’;

15 (21) in section 484(i)(3)—

16 (A) by striking ‘‘(h)(4)(B)(ii)’’ and insert17 ing ‘‘(h)(4)(B)(i)’’; and

18 (B) by striking ‘‘, or’’ and inserting a pe19 riod;

20 (22) in section 484(i), by striking paragraph (4);

21 (23) in section 484(n), by striking ‘‘part B, C,’’

22 and inserting ‘‘parts B, C,’’;

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

24 social security number’’ and inserting ‘‘documented
55

S. 1507 EAS

1 evidence of a social security number that is deter2 mined by the institution to be correct’’;

3 (25) in section 484, by redesignating subsections

4 (g) through (q) as subsections (f) through (p), respec5 tively;

6 (26) in section 484B(a), by striking ‘‘grant,

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

8 loan assistance’’;

9 (27) in section 484B(b)(3), by striking ‘‘sub10 section (d)’’ and inserting ‘‘subsection (c)’’;

11 (28) in clauses (i), (ii), and (iii) of section

12 485(a)(1)(F), by inserting before the comma at the

13 end of each such clause the following: ‘‘for the period

14 of enrollment for which a refund is required’’;

15 (29) in section 485(a)(1)(F)(iv), by inserting

16 ‘‘under’’ after ‘‘awards’’;

17 (30) in section 485(a)(1)(F)(vii), by striking

18 ‘‘provided under this title’’;

19 (31) in section 485(a)(1)(F)(viii), by striking the

20 period;

21 (32) in section 485(a)(1)(F), by striking clause

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

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

24 (33) in section 485(a)(1)(L), by inserting a

25 comma after ‘‘full-time’’;
56

S. 1507 EAS

1 (34) in section 485(a)(3), by amending subpara2 graph (A) to read as follows:

3 ‘‘(A) shall, for any academic year beginning

4 more than 270 days after the Secretary first pre5 scribes final regulations pursuant to such subpara6 graph (L), be made available to current and prospec7 tive students prior to enrolling or entering into any

8 financial obligation; and’’;

9 (35) in paragraphs (1)(A) and (2)(A) of section

10 485(b), by striking ‘‘under parts’’ and inserting

11 ‘‘under part’’;

12 (36) in section 485(d), by inserting a period at

13 the end of the penultimate sentence;

14 (37) in section 485(e), by adding at the end the

15 following new paragraph:

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

17 July 1 that follows, by more than 270 days, the date on

18 which the Secretary first prescribes final regulations pursu19 ant to this subsection. The reports required by this sub20 section shall be due on that July 1 and each succeeding

21 July 1 and shall cover the 1-year period ending June 30

22 of the preceding year.’’;

23 (38) in section 485B(a)—

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

25 ‘‘parts D and E’’; and
57

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1 (B) by striking the second period at the end

2 of the third sentence;

3 (39) in section 485B(a)(4), by striking ‘‘part E’’

4 and inserting ‘‘parts D and E’’;

5 (40) in section 485B(c), by striking ‘‘part B or

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

7 (41) in section 485B(e), by striking ‘‘under this

8 part’’ each place it appears and inserting ‘‘under this

9 title’’;

10 (42) in section 487(a)(2), by striking ‘‘, or for

11 completing or handling the Federal Student Assist12 ance Report’’;

13 (43) in section 487(c)(1)(F), by striking ‘‘eligi14 bility for any program under this title of any other15 wise eligible institution,’’ and inserting ‘‘participa16 tion in any program under this title of an eligible in17 stitution,’’;

18 (44) in section 489(a), by striking ‘‘484(c)’’ and

19 inserting ‘‘484(h)’’;

20 (45) in section 491(d)(1), by striking ‘‘sections

21 411A through 411E and’’; and

22 (46) in section 491(h)(1), by striking ‘‘subtitle

23 III’’ and inserting ‘‘subchapter III’’.
58

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1 (i) AMENDMENTS TO PART H OF TITLE IV OF THE

2 ACT.—Part H of title IV of the Act (20 U.S.C. 1099a et

3 seq.) is amended—

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

5 second sentences and inserting the following: ‘‘The

6 Secretary shall review all eligible institutions of high7 er education in a State to determine if any such in8 stitution meets any of the criteria in subsection (b).

9 If any such institution meets one or more of such cri10 teria, the Secretary shall inform the State in which

11 such institution is located that the institution has met

12 such criteria, and the State shall review the institu13 tion pursuant to the standards in subsection (d). The

14 Secretary may determine that a State need not review

15 an institution if such institution meets the criterion

16 in subsection (b)(10) only, such institution was pre17 viously reviewed by the State under subsection (d),

18 and the State determined in such previous review that

19 the institution did not violate any of the standards in

20 subsection (d).’’;

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

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

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

24 institutions of higher education’’ after ‘‘membership’’;
59

S. 1507 EAS

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

3 (5) in section 496(a)(5)—

4 (A) by striking the period at the end of sub5 paragraph (L) and inserting a semicolon; and

6 (B) by inserting after subparagraph (L) the

7 following:

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

9 (L) shall not apply to agencies or associations de10 scribed in paragraph (2)(A)(ii) of this subsection;’’;

11 (6) in the matter preceding paragraph (1) of sec12 tion 496(c), by striking ‘‘for the purpose of this title’’

13 and inserting ‘‘as a reliable authority as to the qual14 ity of education or training offered by an institution

15 seeking to participate in the programs authorized

16 under this title’’;

17 (7) in section 496(l)(2)—

18 (A) by striking ‘‘institutution’’ and insert19 ing ‘‘institution’’; and

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

21 suspension’’ and inserting ‘‘association, described

22 in paragraph (2)(A)(i), (2)(B), or (2)(C) of sub23 section (a) of this section, leading to the suspen24 sion’’;
60

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1 (8) in section 496(n)(1), by amending subpara2 graph (B) to read as follows:

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

7 (9) in section 498(c)—

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

9 the following new sentences: ‘‘Such criteria shall

10 take into account any differences in generally ac11 cepted accounting principles, and the financial

12 statements required thereunder, that are applica13 ble to for profit and nonprofit institutions. The

14 Secretary shall take into account an institution’s

15 total financial circumstances in making a deter16 mination of its ability to meet the standards

17 herein required.’’;

18 (B) in the matter preceding subparagraph

19 (A) of paragraph (3), by striking ‘‘may deter20 mine’’ and inserting ‘‘shall determine’’;

21 (C) by amending subparagraph (C) of para22 graph (3) to read as follows:

23 ‘‘(C) such institution establishes to the satisfac24 tion of the Secretary, with the support of a financial

25 statement audited by an independent certified public
61

S. 1507 EAS

1 accountant in accordance with generally accepted au2 diting standards, that the institution has sufficient

3 resources to ensure against the precipitous closure of

4 the institution, including the ability to meet all of its

5 financial obligations (including refunds of institu6 tional charges and repayments to the Secretary for li7 abilities and debts incurred in programs adminis8 tered by the Secretary); or’’;

9 (D) by redesignating paragraphs (4) and

10 (5) as paragraphs (5) and (6), respectively; and

11 (E) by inserting after paragraph (3) the fol12 lowing new paragraph:

13 ‘‘(4) If an institution of higher education that provides

14 a 2-year or 4-year program of instruction for which the

15 institution awards an associate or baccalaureate degree

16 fails to meet the ratio of current assets to current liabilities

17 imposed by the Secretary pursuant to paragraph (2), the

18 Secretary shall waive that particular requirement for that

19 institution if the institution demonstrates to the satisfaction

20 of the Secretary that—

21 ‘‘(A) there is no reasonable doubt as to its con22 tinued solvency and ability to delivery quality edu23 cational services;

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

25 liabilities, including student refunds, repayments to
62

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1 the Secretary, payroll, and payment of trade creditors

2 and withholding taxes; and

3 ‘‘(C) it has substantial equity in school-occupied

4 facilities, the acquisition of which was the direct

5 cause of its failure to meet the current operating ratio

6 requirement.’’;

7 (10) in section 498(f), by inserting after the sec8 ond sentence the following: ‘‘The Secretary may estab9 lish priorities by which institutions are to receive site

10 visits, and may coordinate such visits with site visits

11 by States, guaranty agencies, and accrediting bodies

12 in order to eliminate duplication, and reduce admin13 istrative burden.’’;

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

15 (iii) to read as follows:

16 ‘‘(iii) the Secretary determines that an in17 stitution that seeks to renew its certification is,

18 in the judgment of the Secretary, in an adminis19 trative or financial condition that may jeopard20 ize its ability to perform its financial respon21 sibilities under a program participation agree22 ment.’’;

23 (12) in section 498, by amending subsection

24 (i)(1) to read as follows:
63

S. 1507 EAS

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

2 An eligible institution of higher education that has had a

3 change in ownership resulting in a change of control shall

4 not qualify to participate in programs under this title after

5 the change in control (except as provided in paragraph (3))

6 unless it establishes that it meets the requirements of section

7 481 (other than the requirements in subsections (b)(5) and

8 (c)(3)) and this section after such change in control.’’;

9 (13) in section 498(i)(3), by amending subpara10 graph (A) to read as follows:

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

12 owner of an institution, of the ownership interest of

13 the deceased in that institution to a family member

14 or to a person holding an ownership interest in that

15 institution; or’’;

16 (14) in section 498, by amending subsection

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

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

19 eligible institution of higher education, as defined pursuant

20 to regulations of the Secretary, shall be certified under this

21 subpart before it may participate as part of such institution

22 in a program under this title, except that such branch shall

23 not be required to meet the requirements of sections

24 481(b)(5) and 481(c)(3) prior to seeking such certification.

25 Such branch is required to be in existence at least 2 years
64

S. 1507 EAS

1 prior to seeking certification as a main campus or free2 standing institution.’’; and

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

4 inserting ‘‘Act’’.

5 (j) AMENDMENTS TO TITLES V THROUGH XII OF THE

6 ACT.—Titles V through XII of the Act (20 U.S.C. 1101 et

7 seq.) are amended—

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

9 period and inserting a semicolon;

10 (2) in section 525, by amending subsection (c) to

11 read as follows:

12 ‘‘(c) WAIVERS.—For purposes of giving special consid13 eration under section 523(d), a State may waive the cri14 teria contained in the first sentence of subsection (b) for

15 not more than 25 percent of individuals receiving Paul

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

17 (3) in the first sentence of section 530A by strik18 ing ‘‘elementary and secondary school teachers’’ each

19 place it appears and inserting ‘‘preschool, elementary,

20 and secondary school teachers’’;

21 (4) in section 535(b)(1)(C), by striking the semi22 colon and inserting a period;

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

24 ‘‘GENERAL’’;
65

S. 1507 EAS

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

2 and inserting ‘‘part B, D,’’;

3 (7) in section 580B, by striking ‘‘(a) AUTHOR4 IZATION.—’’;

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

6 ‘‘402A(g)(2)’’ and inserting ‘‘402A(g)’’;

7 (9) in section 597(d)(1), by striking ‘‘Develop8 ment and’’ and inserting ‘‘and Development’’;

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

10 and inserting ‘‘(1)’’;

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

12 and inserting ‘‘(1)’’;

13 (12) in the heading of subsection (a) of section

14 603, by striking ‘‘RESOURCES’’ and inserting ‘‘RE15 SOURCE’’;

16 (13) in section 607(c), by redesignating the sec17 ond paragraph (2) as paragraph (3);

18 (14) in section 714, by striking ‘‘(a) IN GEN19 ERAL.—’’;

20 (15) in section 715(b)—

21 (A) by striking ‘‘(1) STATE GRANTS.—’’;

22 (B) by redesignating subparagraphs (A)

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

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

25 by redesignating clauses (i), (ii), and (iii) as
66

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

2 and

3 (D) by reducing the indentation of such

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

5 two em spaces;

6 (16) in section 725—

7 (A) by redesignating paragraphs (2)

8 through (5) as paragraphs (3) through (6), re9 spectively; and

10 (B) by inserting after paragraph (1) the fol11 lowing new paragraph:

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

13 projects authorized under section 723 be made no

14 later than March 31, 1994;’’;

15 (17) in section 726, by inserting a period after

16 ‘‘title’’ the first time it appears and striking the re17 mainder of the sentence;

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

19 and inserting ‘‘faculty,’’;

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

21 of’’;

22 (20) in section 734(e)—

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

24 ‘‘FACULTY’’; and
67

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

2 ‘‘faculty’’;

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

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

5 Amendments of 1992’’;

6 (22) in section 782(1)(A), by striking ‘‘out7 patient care of student’’ and inserting ‘‘outpatient

8 care of students’’;

9 (23) in section 783—

10 (A) in subsection (a)(2), by inserting ‘‘on

11 all such loans owed by such institution’’ after

12 ’’outstanding indebtedness’’; and

13 (B) by adding at the end thereof the follow14 ing new subsection:

15 ‘‘(d) REDUCTION OF AMOUNTS OWED TO TREAS16 URER.—If the Secretary forgives all or part of a loan de17 scribed in subsection (a), the outstanding balance remain18 ing on the notes of the Secretary that were issued to the

19 Secretary of the Treasury under section 761(d) as in effect

20 prior to the enactment of the Higher Education Amend21 ments of 1992, or under any provision of this title as in

22 effect at the time such note was issued, shall be reduced by

23 such amount forgiven.’’;

24 (24) in the matter preceding paragraph (1) of

25 section 802(b), by inserting after ‘‘fiscal year’’ the fol-
68

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1 lowing: ‘‘the Secretary shall reserve such amount as

2 is necessary to make continuing awards to institu3 tions of higher education that were, on the date of en4 actment of the Higher Education Amendments of

5 1992, operating an existing cooperative education

6 program under a multiyear project award and to

7 continue to pay to such institutions the Federal share

8 in effect on the day before such date of enactment. Of

9 the remainder of the amount appropriated in such

10 fiscal year’’;

11 (25) in section 803(b)(6)(A), by striking ‘‘data’’;

12 (26) in section 803(e)(2)—

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

14 inserting ‘‘Mexican-American’’; and

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

16 ‘‘Marianian’’;

17 (27) in section 901(b)(2), by striking ‘‘such

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

19 (28) in section 922, by amending subsection (f)

20 to read as follows:

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

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

23 individual awarded a fellowship under this part at such

24 institution, an institutional allowance. Except as provided

25 in paragraph (2), such allowance shall be—
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S. 1507 EAS

1 ‘‘(A) $6,000 annually with respect to individuals

2 who first received fellowships under this part prior to

3 academic year 1993–1994; and

4 ‘‘(B) with respect to individuals who first receive

5 fellowships during or after academic year 1993–

6 1994—

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

8 1994; and

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

10 adjusted annually thereafter in accordance with

11 inflation as determined by the Department of

12 Labor’s Consumer Price Index for the previous

13 calendar year.

14 ‘‘(2) The institutional allowance paid under para15 graph (1) shall be reduced by the amount the institution

16 charges and collects from a fellowship recipient for tuition

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

18 program.’’;

19 (29) in the second sentence of section 923(b)(1),

20 by striking ‘‘granting of such fellowships’’ and all

21 that follows through ‘‘set forth in this section,’’ and

22 inserting ‘‘granting of such fellowships for an addi23 tional period of study not to exceed one 12-month pe24 riod,’’;
70

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1 (30) in section 923(b)(2), by striking out the sec2 ond and third sentences and inserting the following:

3 ‘‘Such period shall not exceed a total of 3 years, con4 sisting of not more than 2 years of support for study

5 or research, and not more than 1 year of support for

6 dissertation work, provided that the student has at7 tained satisfactory progress prior to the dissertation

8 stage, except that the Secretary may provide by regu9 lation for the granting of such fellowships for an ad10 ditional period of study not to exceed one 12-month

11 period, under special circumstances which the Sec12 retary determines would most effectively serve the

13 purposes of this part. The Secretary shall make a de14 termination to provide such 12-month extension of an

15 award to an individual fellowship recipient for study

16 or research upon review of an application for such ex17 tension by the recipient. The institution shall provide

18 2 years of support for each student following the years

19 of Federal predissertation support under this part.

20 Any student receiving an award for graduate study

21 leading to a doctoral degree shall receive at least 1

22 year of supervised training in instruction during

23 such student’s doctoral program.’’;

24 (31) in section 923(b), by adding at the end the

25 following new paragraph:
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1 ‘‘(3) CONTINUATION OF AWARDS UNDER PRIOR

2 LAW.—Notwithstanding any other provision of law,

3 in the case of an individual who was awarded a

4 multiyear fellowship under this part before the date

5 of enactment of the Higher Education Amendments of

6 1992, awards to such individual for the remainder of

7 such fellowship may, at the discretion of the institu8 tion of higher education attended by such individual,

9 be subject to the requirements of this subsection as in

10 effect prior to such date of enactment. The institution

11 shall be required to exercise such discretion at the

12 time that its application to the Secretary for a grant

13 under this part, and the amount of any such grant,

14 are being considered by the Secretary.’’;

15 (32) in section 924, by adding at the end thereof

16 the following new sentence: ‘‘Notwithstanding any

17 other provision of law, the Secretary may use funds

18 appropriated pursuant to this section for fiscal year

19 1994 to make continuation awards under section

20 923(b)(3) to individuals who would have been eligible

21 for such awards in fiscal year 1993 if such section

22 had been in effect.’’;

23 (33) in section 931(a), by inserting after the first

24 sentence the following new sentence: ‘‘These fellow25 ships shall be awarded to students intending to pur-
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1 sue a doctoral degree, except that fellowships may be

2 granted to students pursuing a master’s degree in

3 those fields in which the master’s degree is commonly

4 accepted as the appropriate degree for a tenured-track

5 faculty position in a baccalaureate degree-granting

6 institution.’’;

7 (34) in the third sentence of section 932(a)(1), by

8 striking ‘‘doctoral’’ and inserting ‘‘graduate’’;

9 (35) in section 932(c), by striking ‘‘doctoral’’

10 and inserting ‘‘graduate’’;

11 (36) in section 933(b), by amending paragraph

12 (1) to read as follows:

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

14 addition to stipends paid to individuals under this

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

16 each individual awarded a fellowship under this part

17 at such institution, an institutional allowance. Ex18 cept as provided in subparagraph (B), such allowance

19 shall be—

20 ‘‘(i) $6,000 annually with respect to indi21 viduals who first received fellowships under this

22 part prior to academic year 1993–1994; and

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

24 receive fellowships during or after academic year

25 1993–1994—
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1 ‘‘(I) $9,000 for the academic year

2 1993–1994; and

3 ‘‘(II) for succeeding academic years,

4 $9,000 adjusted annually thereafter in ac5 cordance with inflation as determined by

6 the Department of Labor’s Consumer Price

7 Index for the previous calendar year.

8 ‘‘(B) The institutional allowance paid under

9 subparagraph (A) shall be reduced by the amount the

10 institution charges and collects from a fellowship re11 cipient for tuition and other expenses as part of the

12 recipient’s instructional program.’’;

13 (37) in section 941, by striking ‘‘the part’’ and

14 inserting ‘‘this part’’;

15 (38) in section 943(b), by striking ‘‘foreign lan16 guages or area studies’’ and inserting ‘‘foreign lan17 guages and area studies’’;

18 (39) in section 945, by amending subsection (c)

19 to read as follows:

20 ‘‘(c) TREATMENT OF INSTITUTIONAL PAYMENTS.—An

21 institution of higher education that makes institutional

22 payments for tuition and fees on behalf of individuals sup23 ported by fellowships under this part in amounts that ex24 ceed the institutional payments made by the Secretary pur25 suant to section 946(a) may count such payments toward
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1 the amounts the institution is required to provide pursuant

2 to section 944(b)(2).’’;

3 (40) in section 946, by amending subsection (a)

4 to read as follows:

5 ‘‘(a) INSTITUTIONAL PAYMENTS.—(1) The Secretary

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

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

8 individual awarded a fellowship under this part at such

9 institution, an institutional allowance. Except as provided

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

11 ‘‘(A) $6,000 annually with respect to individuals

12 who first received fellowships under this part prior to

13 academic year 1993–1994; and

14 ‘‘(B) with respect to individuals who first receive

15 fellowships during or after academic year 1993–

16 1994—

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

18 1994; and

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

20 adjusted annually thereafter in accordance with

21 inflation as determined by the Department of

22 Labor’s Consumer Price Index for the previous

23 calendar year.

24 ‘‘(2) The institutional allowance paid under para25 graph (1) shall be reduced by the amount the institution
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1 charges and collects from a fellowship recipient for tuition

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

3 program.’’;

4 (41) in the matter preceding paragraph (1) of

5 section 951(a), by inserting ‘‘Pacific Islanders,’’ after

6 ‘‘Native Americans,’’;

7 (42) in section 1004(a), by striking ‘‘part’’ and

8 inserting ‘‘subpart’’;

9 (43) in section 1011(d), by striking ‘‘part’’ and

10 inserting ‘‘subpart’’;

11 (44) in part D of title X, by redesignating sec12 tion 1181 as section 1081;

13 (45) in section 1081(d) (as so redesignated) by

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

15 institutions’’;

16 (46) in section 1106(a), by striking ‘‘may receive

17 a grant’’ and inserting ‘‘may receive such a grant’’;

18 (47) in section 1142(d)(2), by inserting ‘‘pro19 gram’’ after ‘‘literacy corps’’;

20 (48) in the last sentence of section 1201(a), by

21 striking ‘‘subpart 3 of part H,’’ and inserting ‘‘sub22 part 2 of part H of title IV of this Act,’’;

23 (49) by amending section 1204 to read as fol24 lows:
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1 ‘‘TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT

2 ASSISTANCE

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

4 eligibility criteria of any postsecondary education program

5 administered by the Department where such criteria do not

6 take into account the unique circumstances in Guam, the

7 Virgin Islands, American Samoa, Palau, the Common8 wealth of the Northern Mariana Islands, and the freely asso9 ciated states.

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

11 institution of higher education that is located in any of the

12 freely associated states, rather than a State, shall be eligible,

13 if otherwise qualified, for assistance under chapter 1 of sub14 part 2 of part A of title IV of this Act.’’;

15 (50) in section 1205, in the section heading, by

16 inserting ‘‘NATIONAL ADVISORY’’ before ‘‘COM17 MITTEE’’;

18 (51) in section 1205(a), by inserting ‘‘National

19 Advisory’’ before ‘‘Committee’’ the first place it ap20 pears;

21 (52) in paragraphs (1) and (6) of section

22 1205(c), by inserting ‘‘of title IV of this Act’’ after

23 ‘‘part H’’;
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1 (53) in section 1205(f), by striking ‘‘Accredita2 tion and Institutional Eligibility’’ and inserting ‘‘In3 stitutional Quality and Integrity’’;

4 (54) in section 1209(f)(1), by striking ‘‘the Act’’

5 and inserting ‘‘this Act’’;

6 (55) in title XII, by redesignating section 1211

7 (as added by section 6231 of the Omnibus Trade and

8 Competitiveness Act of 1988) as section 1212; and

9 (56) in section 1212(e)(2) (as so redesignated),

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

11 the first place it appears.

12 (k) AMENDMENTS TO THE 1992 AMENDMENTS.—The

13 Higher Education Amendments of 1992 (Public Law 102–

14 325; 106 Stat. 459) is amended—

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

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

17 (2) in section 425(d)(1)—

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

19 after ‘‘(1) in’’; and

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

21 (3) in section 425(d)(4)—

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

23 after ‘‘(4) in’’; and

24 (B) by striking ‘‘in the second sentence’’;
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1 (4) in section 426(c), by striking ‘‘new sub2 sections’’ and inserting ‘‘new subsection’’;

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

4 ‘‘427(a)(2)(C) and 428(b)(1)(M)’’ and inserting

5 ‘‘427(a)(2)(C), 428(b)(1)(M), and 428B(d)(1)’’;

6 (6) in section 446, by striking subsection (c);

7 (7) in section 465(a), by amending paragraph

8 (1) to read as follows:

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

10 determination’ and all that follows through ‘such

11 chapter 1’;’’;

12 (8) in section 484, by inserting after subsection

13 (h) the following new subsection:

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

15 subsection (g) with respect to the addition of subsection (n)

16 shall be effective on and after December 1, 1987.’’;

17 (9) in section 486(a)(3), by striking ‘‘section 1’’

18 and inserting ‘‘section 103’’;

19 (10) in section 1409(b)(1), by striking ‘‘the As20 bestos Hazard Emergency Response Act’’ and insert21 ing ‘‘section 202 of the Toxic Substances Control Act

22 (15 U.S.C. 2642)’’;

23 (11) in section 1422(9), by striking ‘‘has placed’’

24 and inserting ‘‘have placed’’;
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1 (12) in section 1442(c), by striking ‘‘Chairman’’

2 and inserting ‘‘Chairperson’’;

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

5 (14) in the subsection (a)(1) amended by section

6 1554(a), by striking ‘‘4’’ and inserting ‘‘6’’.

7 (l) AMENDMENT TO THE 1986 AMENDMENT.—Section

8 1507(a)(12) of the Higher Education Amendments of 1986

9 (20 U.S.C. 4414(a)(12)) is amended by striking the period

10 and inserting a semicolon.

11 (m) STYLISTIC CONSISTENCY.—The Act is amended so

12 that the section designation and section heading of each sec13 tion of the Act shall be in the form and typeface of the sec14 tion designation and heading of this section.

15 (n) ACCREDITATION THROUGH TRANSFER OF CRED16 IT.—(1) An institution of higher education which satisfied

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

18 to the enactment of the Higher Education Amendments of

19 1992, shall be considered to meet the requirements of section

20 1201(a)(5) of the Act if—

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

22 of the Higher Education Technical Amendments of

23 1993, such institution has applied for accreditation

24 by a nationally recognized accrediting agency or asso25 ciation which the Secretary determines, pursuant to
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1 subpart 2 of part H of title IV of the Act, to be a reli2 able authority as to the quality of education or train3 ing offered;

4 (B) within 2 years of the date of enactment of

5 the Higher Education Technical Amendments of 1993,

6 such institution is accredited by such an accrediting

7 agency or association or, if not so accredited, has been

8 granted preaccreditation status by such an agency or

9 association that has been recognized by the Secretary

10 for the granting of preaccreditation status, and the

11 Secretary has determined that there is satisfactory as12 surance that the institution will meet the accredita13 tion standards of such an agency or association with14 in a reasonable time; and

15 (C) such institution is legally authorized within

16 a State to provide education beyond secondary edu17 cation.

18 (2) The Secretary shall determine whether to recertify

19 any institution that meets the requirements of paragraph

20 (1) within 2 years after the date of enactment of this Act.

21 (3) Paragraph (1) of this subsection shall be effective

22 on and after July 23, 1992.
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1 SEC. 3. PACIFIC REGIONAL EDUCATIONAL LABORATORY.

2 Section 101A of the Carl D. Perkins Vocational and

3 Applied Technology Education Act (20 U.S.C. 2311a) is

4 amended—

5 (1) in the matter preceding paragraph (1) of

6 subsection (b)—

7 (A) by striking ‘‘Center for the Advance8 ment of Pacific Education, Honolulu, Hawaii,

9 or its successor entity as the Pacific regional

10 educational laboratory’’ and inserting ‘‘Pacific

11 Regional Educational Laboratory, Honolulu,

12 Hawaii’’; and

13 (B) by inserting ‘‘or provide direct services

14 regarding’’ after ‘‘grants for’’; and

15 (2) in subsection (c), by striking ‘‘Center for the

16 Advancement of Pacific Education’’ and inserting

17 ‘‘Pacific Regional Educational Laboratory, Honolulu,

18 Hawaii,’’.

19 SEC. 4. DISTRIBUTION OF FUNDS TO POSTSECONDARY AND

20 ADULT PROGRAMS.

21 Section 232 of the Carl D. Perkins Vocational and Ap22 plied Technology Education Act (20 U.S.C. 2341a) is

23 amended—

24 (1) in subsection (a)—

25 (A) in the first sentence—
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1 (i) by inserting ‘‘(1)’’ before ‘‘Except’’;

2 and

3 (ii) by inserting ‘‘or consortia thereof’’

4 before ‘‘within’’; and

5 (B) in the second sentence—

6 (i) by inserting ‘‘or consortium’’ before

7 ‘‘shall’’; and

8 (ii) by inserting ‘‘or consortium’’ be9 fore ‘‘in the preceding’’;

10 (C) by adding at the end the following new

11 paragraph:

12 ‘‘(2) In order for a consortium of eligible institutions

13 described in paragraph (1) to receive assistance pursuant

14 to such paragraph such consortium shall operate joint

15 projects that—

16 ‘‘(A) provide services to all postsecondary insti17 tutions participating in the consortium; and

18 ‘‘(B) are of sufficient size, scope and quality as

19 to be effective.’’;

20 (2) in subsection (b)—

21 (A) in paragraph (1), by inserting ‘‘or con22 sortia’’ after ‘‘institutions’’; and

23 (B) in the matter preceding subparagraph

24 (A) of paragraph (2), by inserting ‘‘or consortia’’

25 after ‘‘institutions’’; and
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1 (3) in subsection (c)—

2 (A) in paragraph (1), by inserting ‘‘or con3 sortium’’ after ‘‘institution’’; and

4 (B) in paragraph (2), by inserting ‘‘or con5 sortia’’ after ‘‘institutions’’.

6 SEC. 5. EFFECTIVE DATES.

7 (a) IN GENERAL.—Except as otherwise provided there8 in or in subsection (b) of this section, the amendments made

9 by section 2 of this Act shall be effective as if such amend10 ments were included in the Higher Education Amendments

11 of 1992 (Public Law 102–325), except that section 492 of

12 the Act shall not apply to the amendments made by this

13 Act.

14 (b) EXCEPTIONS.—

15 (1) EFFECTIVE ON OCTOBER 1, 1993.—The

16 amendments made by the following subsections of sec17 tion 2 of this Act shall be effective on and after Octo18 ber 1, 1993: (b)(29), (j)(28), (j)(36), and (j)(40).

19 (2) EFFECTIVE ON DATE OF ENACTMENT.—The

20 amendments made by the following subsections of sec21 tion 2 of this Act shall be effective on and after the

22 date of enactment of this Act: (b)(2), (b)(7), (b)(28),

23 (c)(3), (c)(5), (c)(13)(B), (c)(13)(C), (c)(18), (c)(30),

24 (c)(62).
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1 (3) EFFECTIVE 30 DAYS AFTER ENACTMENT.—

2 The amendments made by the following subsections of

3 section 2 of this Act shall be effective on and after 30

4 days after the date of enactment of this Act: (c)(19),

5 (c)(20), (c)(21), (c)(59).

6 (4) EFFECTIVE 60 DAYS AFTER ENACTMENT.—

7 The amendments made by the following subsections of

8 section 2 of this Act shall be effective on and after 60

9 days after the date of enactment of this Act: (c)(31)

10 and (c)(53).

11 (5) EFFECTIVE ON APRIL 1, 1994.—The amend12 ments made by section 2(c)(43)(B) of this Act shall

13 be effective on and after April 1, 1994.

14 (6) EFFECTIVE ON JULY 1, 1994.—The amend15 ments made by the following subsection of section 2

16 of this Act shall be effective on and after July 1, 1994:

17 (b)(25), (c)(2), (c)(13)(A), (c)(29).

18 (7) COHORT DEFAULT DATA EXAMINATIONS.—

19 The amendment made by section 2(c)(60)(A) shall be

20 effective on and after October 1, 1994.

21 (8) COHORT DEFAULT RATE DETERMINATIONS.—

22 The amendments made to subsection (a)(3) and

23 (m)(1)(B) of section 435 of this Act shall apply with

24 respect to the determination (and appeals from deter-
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1 minations) of cohort default rates for fiscal year 1989

2 and any succeeding fiscal year.

Attest:

Secretary.
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