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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1882 Reported in Senate (RS)]

                                                       Calendar No. 354

105th CONGRESS

  2d Session

                                S. 1882

                          [Report No. 105-181]

_______________________________________________________________________

                                 A BILL

    To reauthorize the Higher Education Act of 1965, and for other 
                               purposes.

_______________________________________________________________________

                              May 4, 1998

                       Reported with an amendment

                                                       Calendar No. 354
105th CONGRESS
  2d Session
                                S. 1882

                          [Report No. 105-181]

    To reauthorize the Higher Education Act of 1965, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 30, 1998

   Mr. Jeffords (for himself, Mr. Kennedy, Mr. Coats, Mr. Dodd, Ms. 
Collins, and Mr. DeWine) introduced the following bill; which was read 
    twice and referred to the Committee on Labor and Human Resources

                              May 4, 1998

              Reported by Mr. Jeffords, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
    To reauthorize the Higher Education Act of 1965, and for other 
                               purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Higher Education Amendments 
of 1998''.</DELETED>

<DELETED>SEC. 2. REFERENCES.</DELETED>

<DELETED>    Except as otherwise expressly provided, whenever in this 
Act an amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.).</DELETED>

             <DELETED>TITLE I--GENERAL PROVISIONS</DELETED>

<DELETED>SEC. 101. GENERAL PROVISIONS.</DELETED>

<DELETED>    (a) Repeal; Transfer and Redesignation.--The Act (20 
U.S.C. 1001 et seq.) is amended--</DELETED>
        <DELETED>    (1) by repealing title I (20 U.S.C. 1001 et 
        seq.);</DELETED>
        <DELETED>    (2) by repealing sections 1203, 1206, 1211, and 
        1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f);</DELETED>
        <DELETED>    (3) by striking the heading for title XII (20 
        U.S.C. 1141 et seq.);</DELETED>
        <DELETED>    (4) by inserting before title III (20 U.S.C. 1051 
        et seq.) the following:</DELETED>

          <DELETED>``TITLE I--GENERAL PROVISIONS'';</DELETED>

        <DELETED>    (5) by transferring sections 1201, 1202, 1204 (as 
        renumbered by Public Law 90-575), 1204 (as added by Public Law 
        96-374), 1205, 1207, 1208, 1209, 1210, and 1213 (20 U.S.C. 
        1141, 1142, 1144, 1144a, 1145, 1145b, 1145c, 1145d, 1145d-1, 
        and 1145g) to follow the heading for title I (as inserted by 
        paragraph (4)); and</DELETED>
        <DELETED>    (6) by redesignating sections 1201, 1202, 1204 (as 
        renumbered by Public Law 90-575), 1204 (as added by Public Law 
        96-374), 1205, 1207, 1208, 1209, 1210, and 1213 as sections 
        101, 102, 103, 104, 105, 106, 107, 108, 109, and 110, 
        respectively.</DELETED>

<DELETED>SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.</DELETED>

<DELETED>    Section 103 (as redesignated by section 101(a)(6)) (20 
U.S.C. 1144) is amended by striking ``(b)''.</DELETED>

<DELETED>SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY 
              AND INTEGRITY.</DELETED>

<DELETED>    Section 105 (as redesignated by section 101(a)(6)) (20 
U.S.C. 1145) is amended--</DELETED>
        <DELETED>    (1) by striking the last sentence of subsection 
        (a);</DELETED>
        <DELETED>    (2) by redesignating subsections (c) through (f) 
        as subsections (d) through (g), respectively;</DELETED>
        <DELETED>    (3) by inserting after subsection (b) the 
        following:</DELETED>
<DELETED>    ``(c) Public Notice.--The Secretary shall--</DELETED>
        <DELETED>    ``(1) annually publish in the Federal Register a 
        list containing the name of each member of the Committee and 
        the date of the expiration of the term of office of the member; 
        and</DELETED>
        <DELETED>    ``(2) publicly solicit nominations for each vacant 
        position or expiring term of office on the 
        Committee.'';</DELETED>
        <DELETED>    (4) in subsection (d) (as redesignated by 
        paragraph (2))--</DELETED>
                <DELETED>    (A) by striking paragraph (6); 
                and</DELETED>
                <DELETED>    (B) by redesignating paragraphs (7) and 
                (8) as paragraphs (6) and (7), respectively; 
                and</DELETED>
        <DELETED>    (5) in subsection (g) (as redesignated by 
        paragraph (2)), by striking ``1998'' and inserting 
        ``2004''.</DELETED>

<DELETED>SEC. 104. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF 
              PAYMENTS.</DELETED>

<DELETED>    Title I (20 U.S.C. 1001 et seq.) is amended by adding 
after section 110 (as redesignated by section 101(a)(6)) the 
following:</DELETED>

<DELETED>``SEC. 111. PRIOR RIGHTS AND OBLIGATIONS.</DELETED>

<DELETED>    ``(a) Authorization of Appropriations.--</DELETED>
        <DELETED>    ``(1) Pre-1987 parts c and d of title vii.--There 
        are authorized to be appropriated such sums as may be necessary 
        for fiscal year 1999 and for each of the 4 succeeding fiscal 
        years to pay obligations incurred prior to 1987 under parts C 
        and D of title VII, as such parts were in effect before the 
        effective date of the Higher Education Amendments of 
        1992.</DELETED>
        <DELETED>    ``(2) Post-1992 and pre-1998 part c of title 
        vii.--There are authorized to be appropriated such sums as may 
be necessary for fiscal year 1999 and for each of the 4 succeeding 
fiscal years to pay obligations incurred prior to the date of enactment 
of the Higher Education Amendments of 1998 under part C of title VII, 
as such part was in effect during the period--</DELETED>
                <DELETED>    ``(A) after the effective date of the 
                Higher Education Amendments of 1992; and</DELETED>
                <DELETED>    ``(B) prior to the date of enactment of 
                the Higher Education Amendments of 1998.</DELETED>
<DELETED>    ``(b) Legal Responsibilities.--</DELETED>
        <DELETED>    ``(1) Pre-1987 title vii.--All entities with 
        continuing obligations incurred under parts A, B, C, and D of 
        title VII, as such parts were in effect before the effective 
        date of the Higher Education Amendments of 1992, shall be 
        subject to the requirements of such part as in effect before 
        the effective date of the Higher Education Amendments of 
        1992.</DELETED>
        <DELETED>    ``(2) Post-1992 and pre-1998 part c of title 
        vii.--All entities with continuing obligations incurred under 
        part C of title VII, as such part was in effect during the 
        period--</DELETED>
                <DELETED>    ``(A) after the effective date of the 
                Higher Education Amendments of 1992; and</DELETED>
                <DELETED>    ``(B) prior to the date of enactment of 
                the Higher Education Amendments of 1998,</DELETED>
        <DELETED>shall be subject to the requirements of such part as 
        such part was in effect during such period.</DELETED>

<DELETED>``SEC. 112. RECOVERY OF PAYMENTS.</DELETED>

<DELETED>    ``(a) Public Benefit.--Congress declares that, if a 
facility constructed with the aid of a grant under part A of title VII 
as such part A was in effect prior to the date of enactment of the 
Higher Education Amendments of 1998, or part B of such title as such 
part B was in effect prior to the date of enactment of the Higher 
Education Amendments of 1992, is used as an academic facility for 20 
years following completion of such construction, the public benefit 
accruing to the United States will equal in value the amount of the 
grant. The period of 20 years after completion of such construction 
shall therefore be deemed to be the period of Federal interest in such 
facility for the purposes of such title as so in effect.</DELETED>
<DELETED>    ``(b) Recovery Upon Cessation of Public Benefit.--If, 
within 20 years after completion of construction of an academic 
facility which has been constructed, in part with a grant under part A 
of title VII as such part A was in effect prior to the date of 
enactment of the Higher Education Amendments of 1998, or part B of 
title VII as such part B was in effect prior to the date of enactment 
of the Higher Education Amendments of 1992--</DELETED>
        <DELETED>    ``(1) the applicant under such parts as so in 
        effect (or the applicant's successor in title or possession) 
        ceases or fails to be a public or nonprofit institution, 
        or</DELETED>
        <DELETED>    ``(2) the facility ceases to be used as an 
        academic facility, or the facility is used as a facility 
        excluded from the term `academic facility' (as such term was 
        defined under title VII, as so in effect), unless the Secretary 
        determines that there is good cause for releasing the 
        institution from its obligation,</DELETED>
<DELETED>the United States shall be entitled to recover from such 
applicant (or successor) an amount which bears to the value of the 
facility at that time (or so much thereof as constituted an approved 
project or projects) the same ratio as the amount of Federal grant bore 
to the cost of the facility financed with the aid of such grant. The 
value shall be determined by agreement of the parties or by action 
brought in the United States district court for the district in which 
such facility is situated.</DELETED>
<DELETED>    ``(c) Prohibition on Use for Religion.--Notwithstanding 
the provisions of subsections (a) and (b), no project assisted with 
funds under title VII (as in effect prior to the date of enactment of 
the Higher Education Amendments of 1998) shall ever be used for 
religious worship or a sectarian activity or for a school or department 
of divinity.''.</DELETED>

<DELETED>SEC. 105. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Conforming Amendments Correcting References to Section 
1201.--</DELETED>
        <DELETED>    (1) Agriculture.--</DELETED>
                <DELETED>    (A) Student internship programs.--Section 
                922 of the Federal Agriculture Improvement and Reform 
                Act of 1996 (7 U.S.C. 2279c) is amended--</DELETED>
                        <DELETED>    (i) in subsection (a)(1)(B)--
                        </DELETED>
                                <DELETED>    (I) by striking ``1201'' 
                                and inserting ``101''; and</DELETED>
                                <DELETED>    (II) by striking ``(20 
                                U.S.C. 1141)''; and</DELETED>
                        <DELETED>    (ii) in subsection (b)(1)--
                        </DELETED>
                                <DELETED>    (I) by striking ``1201'' 
                                and inserting ``101''; and</DELETED>
                                <DELETED>    (II) by striking ``(20 
                                U.S.C. 1141)''.</DELETED>
                <DELETED>    (B) Agricultural sciences education.--
                Section 1417(h)(1)(A) of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3152(h)(1)(A)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
        <DELETED>    (2) Armed forces.--</DELETED>
                <DELETED>    (A) Science and mathematics education 
                improvement program.--Section 2193(c)(1) of title 10, 
                United States Code, is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (B) Support of science, mathematics, and 
                engineering education.--Section 2199(2) of title 10, 
                United States Code, is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (C) Allowable costs under defense 
                contracts.--Section 841(c)(2) of the National Defense 
                Authorization Act for fiscal year 1994 (10 U.S.C. 2324 
                note) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (D) Environmental restoration 
                institutional grants for training dislocated defense 
                workers and young adults.--Section 1333(i)(3) of the 
                National Defense Authorization Act for fiscal year 1994 
                (10 U.S.C. 2701 note) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (E) Environmental education opportunities 
                program.--Section 1334(k)(3) of the National Defense 
                Authorization Act for fiscal year 1994 (10 U.S.C. 2701 
                note) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (F) Environmental scholarship and 
                fellowship programs.--Section 4451(b)(1) of the 
                National Defense Authorization Act for 1993 (10 U.S.C. 
                2701 note) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
        <DELETED>    (3) Application of antitrust laws to award of 
        need-based educational aid.--Section 568(c)(3) of the Improving 
        America's Schools Act of 1994 (15 U.S.C. 1 note) is amended--
        </DELETED>
                <DELETED>    (A) by striking ``1201(a)'' and inserting 
                ``101(a)''; and</DELETED>
                <DELETED>    (B) by striking ``(20 U.S.C. 
                1141(a))''.</DELETED>
        <DELETED>    (4) Restrictions on former officers, employees, 
        and elected officials of the executive and legislative 
        branches.--Section 207(j)(2)(B) of title 18, United States 
        Code, is amended by striking ``1201(a)'' and inserting 
        ``101(a)''.</DELETED>
        <DELETED>    (5) Education.--</DELETED>
                <DELETED>    (A) Higher education amendments of 1992.--
                Section 1(c) of the Higher Education Amendments of 1992 
                (20 U.S.C. 1001 note) is amended by striking ``1201'' 
                and inserting ``101''.</DELETED>
                <DELETED>    (B) Part f definitions.--Section 481 of 
                the Higher Education Act of 1965 (20 U.S.C. 1088) is 
                amended--</DELETED>
                        <DELETED>    (i) in subsection (a)--</DELETED>
                                <DELETED>    (I) in the matter 
                                preceding paragraph (1)(A), by striking 
                                ``1201(a)'' and inserting 
                                ``101(a)'';</DELETED>
                                <DELETED>    (II) in paragraph (1)(C), 
                                by striking ``1201(a)'' and inserting 
                                ``101(a)'';</DELETED>
                                <DELETED>    (III) in the first 
                                sentence of the matter preceding clause 
                                (i) of paragraph (2)(A), by striking 
                                ``1201(a)'' and inserting ``101(a)''; 
                                and</DELETED>
                                <DELETED>    (IV) in the matter 
                                following paragraph (2)(B)(ii), by 
                                striking ``1201(a)'' and inserting 
                                ``101(a)'';</DELETED>
                        <DELETED>    (ii) in subsection (b)--</DELETED>
                                <DELETED>    (I) in the first 
                                sentence--</DELETED>
                                        <DELETED>    (aa) in paragraph 
                                        (2), by striking ``1201(a)'' 
                                        and inserting ``101(a)''; 
                                        and</DELETED>
                                        <DELETED>    (bb) in paragraph 
                                        (3), by striking ``1201(a)'' 
                                        and inserting ``101(a)''; 
                                        and</DELETED>
                                <DELETED>    (II) in the second 
                                sentence, by striking ``1201(a)'' and 
                                inserting ``101(a)''; and</DELETED>
                        <DELETED>    (iii) in subsection (c)--
                        </DELETED>
                                <DELETED>    (I) in the first sentence, 
                                by striking ``1201(a)'' and inserting 
                                ``101(a)''; and</DELETED>
                                <DELETED>    (II) in the second 
                                sentence, by striking ``1201(a)'' and 
                                inserting ``101(a)''.</DELETED>
                <DELETED>    (C) Treatment of branches.--Section 
                498(j)(2) of the Higher Education Act of 1965 (20 
                U.S.C. 1099c(j)(2)) is amended by striking 
                ``1201(a)(2)'' and inserting ``101(a)(2)''.</DELETED>
                <DELETED>    (D) Small state teaching initiative.--
                Section 591(d)(2) of the Higher Education Act of 1965 
                (20 U.S.C. 1115(d)(2)) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.</DELETED>
                <DELETED>    (E) International education programs.--
                Section 631(a)(8) of the Higher Education Act of 1965 
                (20 U.S.C. 1132(a)(8)) is amended by striking 
                ``1201(a)'' each place it appears and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (F) Dwight d. eisenhower leadership 
                program.--Section 1081(d) of the Higher Education Act 
                of 1965 (20 U.S.C. 1135f(d)) is amended by striking 
                ``1201'' and inserting ``101''.</DELETED>
                <DELETED>    (G) Disclosure requirements.--Section 
                429(d)(2)(B)(ii) of the General Education Provisions 
                Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is amended by 
                striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (H) Harry s. truman scholarships.--Section 
                3(4) of the Harry S. Truman Memorial Scholarship Act 
                (20 U.S.C. 2002(4)) is amended by striking ``1201(a)'' 
                and inserting ``101(a)''.</DELETED>
                <DELETED>    (I) Tech-prep education.--Section 
                347(2)(A) of the Carl D. Perkins Vocational and Applied 
                Technology Education Act (20 U.S.C. 2394e(2)(A)) is 
                amended by striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (J) Education for economic security.--
                Section 3(6) of the Education for Economic Security Act 
                (20 U.S.C. 3902(6)) is amended by striking ``1201(a)'' 
                and inserting ``101(a)''.</DELETED>
                <DELETED>    (K) James madison memorial fellowships.--
                Section 815 of the James Madison Memorial Fellowship 
                Act (20 U.S.C. 4514) is amended--</DELETED>
                        <DELETED>    (i) in paragraph (3), by striking 
                        ``1201(a)'' and inserting ``101(a)''; 
                        and</DELETED>
                        <DELETED>    (ii) in paragraph (4), by striking 
                        ``1201(d) of the Higher Education Act of 1965'' 
                        and inserting ``14101 of the Elementary and 
                        Secondary Education Act of 1965''.</DELETED>
                <DELETED>    (L) Barry goldwater scholarships.--Section 
                1403(4) of the Barry Goldwater Scholarship and 
                Excellence in Education Act (20 U.S.C. 4702(4)) is 
                amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (M) Morris k. udall scholarships.--Section 
                4(6) of the Morris K. Udall Scholarship and Excellence 
                in National Environmental and Native American Public 
                Policy Act of 1992 (20 U.S.C. 5602(6)) is amended by 
                striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (N) Bilingual education, and language 
                enhancement and acquisition.--Section 7501(4) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 7601(4)) is amended by striking ``1201(a)'' and 
                inserting ``101(a)''.</DELETED>
                <DELETED>    (O) General definitions.--Section 
                14101(17) of the Elementary and Secondary Education Act 
                of 1965 (20 U.S.C. 8801(17)) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.</DELETED>
                <DELETED>    (P) National education statistics.--
                Section 402(c)(3) of the National Education Statistics 
                Act of 1994 (20 U.S.C. 9001(c)(3)) is amended by 
                striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
        <DELETED>    (6) Foreign relations.--</DELETED>
                <DELETED>    (A) Environment and sustainable 
                development exchange program.--Section 240(d) of the 
                Foreign Relations Authorization Act, Fiscal Years 1994 
                and 1995 (22 U.S.C. 2452 note) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.</DELETED>
                <DELETED>    (B) Samantha smith memorial exchange 
                program.--Section 112(a)(8) of the Mutual Educational 
                and Cultural Exchange Act of 1961 (22 U.S.C. 
                2460(a)(8)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (C) Soviet-eastern european training.--
                Section 803(1) of the Soviet-Eastern European Research 
                and Training Act of 1983 (22 U.S.C. 4502(1)) is amended 
                by striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (D) Developing country scholarships.--
                Section 603(d) of the Foreign Relations Authorization 
                Act, Fiscal Years 1986 and 1987 (22 U.S.C. 4703(d)) is 
                amended by striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
        <DELETED>    (7) Indians.--</DELETED>
                <DELETED>    (A) Snyder act.--The last paragraph of 
                section 410 of the Act entitled ``An Act authorizing 
                appropriations and expenditures for the administration 
                of Indian Affairs, and for other purposes'', approved 
                November 2, 1921 (25 U.S.C. 13) (commonly known as the 
                Snyder Act) is amended by striking ``1201'' and 
                inserting ``101''.</DELETED>
                <DELETED>    (B) Tribally controlled community college 
                assistance.--Section 2(a)(5) of the Tribally Controlled 
                Community College Assistance Act (25 U.S.C. 1801(a)(5)) 
                is amended by striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (C) Construction of new facilities.--
                Section 113(b)(2) of the Tribally Controlled Community 
                College Assistance Act (25 U.S.C. 1813(b)(2)) is 
                amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (D) American indian teacher training.--
                Section 1371(a)(1)(B) of the Higher Education 
                Amendments of 1992 (25 U.S.C. 3371(a)(1)(B)) is amended 
                by striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
        <DELETED>    (8) Labor.--</DELETED>
                <DELETED>    (A) Rehabilitation definitions.--Section 
                7(32) of the Rehabilitation Act of 1973 (29 U.S.C. 
                706(32)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (B) State plans.--Section 
                101(a)(7)(A)(iv)(II) of the Rehabilitation Act of 1973 
                (29 U.S.C. 721(a)(7)(A)(iv)(II)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (C) JTPA definitions.--Section 4(12) of 
                the Job Training Partnership Act (29 U.S.C. 1503(12)) 
                is amended by striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (D) Tuition charges.--Section 141(d)(3)(B) 
                of the Job Training Partnership Act (29 U.S.C. 
                1551(d)(3)(B)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
        <DELETED>    (9) Surface mining control.--Section 701(32) of 
        the Surface Mining Control and Reclamation Act of 1977 (30 
        U.S.C. 1291(32)) is amended by striking ``1201(a)'' and 
        inserting ``101(a)''.</DELETED>
        <DELETED>    (10) Pollution prevention.--Section 112(a)(1) of 
        the Federal Water Pollution Control Act (33 U.S.C. 1262(a)(1)) 
        is amended by striking ``1201'' and inserting 
        ``101''.</DELETED>
        <DELETED>    (11) Postal service.--Section 3626(b)(3) of title 
        39, United States Code, is amended--</DELETED>
                <DELETED>    (A) by striking ``1201(a)'' and inserting 
                ``101(a)''; and</DELETED>
                <DELETED>    (B) by striking ``(20 U.S.C. 
                1141(a))''.</DELETED>
        <DELETED>    (12) Block grants to states.--Section 
        404(h)(5)(A)(i) of the Social Security Act (42 U.S.C. 
        604(h)(5)(A)(i)) is amended--</DELETED>
                <DELETED>    (A) by striking ``1201(a)'' and inserting 
                ``101(a)''; and</DELETED>
                <DELETED>    (B) by striking ``(20 U.S.C. 1088(a)(1) or 
                1141(a))''.</DELETED>
        <DELETED>    (13) Public health and welfare.--</DELETED>
                <DELETED>    (A) Scientific and technical education.--
                Section 3(g) of the Scientific and Advanced-Technology 
                Act of 1992 (42 U.S.C. 1862i(g)) is amended--</DELETED>
                        <DELETED>    (i) in paragraph (2)--</DELETED>
                                <DELETED>    (I) by striking 
                                ``1201(a)'' and inserting ``101(a)''; 
                                and</DELETED>
                                <DELETED>    (II) by striking ``(20 
                                U.S.C. 1141(a))''; and</DELETED>
                        <DELETED>    (ii) in paragraph (3)--</DELETED>
                                <DELETED>    (I) by striking 
                                ``1201(a)'' and inserting ``101(a)''; 
                                and</DELETED>
                                <DELETED>    (II) by striking ``(20 
                                U.S.C. 1141(a))''.</DELETED>
                <DELETED>    (B) Older americans.--Section 102(32) of 
                the Older Americans Act of 1965 (42 U.S.C. 3002(32)) is 
                amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (C) Justice system improvement.--Section 
                901(17) of the Omnibus Crime Control and Safe Streets 
                Act of 1968 (42 U.S.C. 3791(17)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (D) Energy technology commercialization 
                services program.--Section 362(f)(5)(A) of the Energy 
                Policy and Conservation Act (42 U.S.C. 6322(f)(5)(A)) 
                is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (E) Environmental restoration and waste 
                management.--Section 3132(b)(1) of the National Defense 
                Authorization Act for Fiscal Years 1992 and 1993 (42 
                U.S.C. 7274e(b)(1)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (F) Head start.--Section 649(c)(3) of the 
                Head Start Act (42 U.S.C. 9844(c)(3)) is amended--
                </DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (G) State dependent care development 
                grants.--Section 670G(5) of the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 9877(5)) 
                is amended by striking ``1201(a)'' and inserting 
                ``101(a)''.</DELETED>
                <DELETED>    (H) Instructional activities for low-
                income youth.--The matter preceding subparagraph (A) of 
                section 682(b)(1) of the Community Services Block Grant 
                Act (42 U.S.C. 9910c(b)(1)) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.</DELETED>
                <DELETED>    (I) Drug abuse education.--Section 3601(7) 
                of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7)) 
                is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (J) National and community service.--
                Section 101(13) of the National and Community Service 
                Act of 1990 (42 U.S.C. 12511(13)) is amended--
                </DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (K) Civilian community corps.--Section 
                166(6) of the National and Community Service Act of 
                1990 (42 U.S.C. 12626(6)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (L) Community schools youth services and 
                supervision grant program.--The definition of public 
                school in section 30401(b) of the Community Schools 
                Youth Services and Supervision Grant Program Act of 
                1994 (42 U.S.C. 13791(b)) is amended--</DELETED>
                        <DELETED>    (i) by striking ``1201'' each 
                        place it appears and inserting ``101''; 
                        and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(i))''.</DELETED>
                <DELETED>    (M) Police corps.--The definition of 
                institution of higher education in section 200103 of 
                the Police Corps Act (42 U.S.C. 14092) is amended--
                </DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
                <DELETED>    (N) Law enforcement scholarship program.--
                The definition of institution of higher education in 
                section 200202 of the Law Enforcement Scholarship and 
                Recruitment Act (42 U.S.C. 14111) is amended--
                </DELETED>
                        <DELETED>    (i) by striking ``1201(a)'' and 
                        inserting ``101(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``(20 U.S.C. 
                        1141(a))''.</DELETED>
        <DELETED>    (14) Telecommunications.--Section 223(h)(4) of the 
        Telecommunications Act of 1934 (47 U.S.C. 223(h)(4)) is 
        amended--</DELETED>
                <DELETED>    (A) by striking ``1201'' and inserting 
                ``101''; and</DELETED>
                <DELETED>    (B) by striking ``(20 U.S.C. 
                1141)''.</DELETED>
        <DELETED>    (15) War and national defense.--Section 808(3) of 
        the David L. Boren National Security Education Act of 1991 (50 
        U.S.C. 1908(3)) is amended--</DELETED>
                <DELETED>    (A) by striking ``1201(a)'' and inserting 
                ``101(a)''; and</DELETED>
                <DELETED>    (B) by striking ``(20 U.S.C. 
                1141(a))''.</DELETED>
<DELETED>    (b) Cross References.--The Act (20 U.S.C. 1001 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) in section 402A(c)(2) (20 U.S.C. 1070a-
        11(c)(2)), by striking ``1210'' and inserting 
        ``110'';</DELETED>
        <DELETED>    (2) in section 481 (20 U.S.C. 1088)--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) in paragraph (1)--</DELETED>
                                <DELETED>    (I) in the matter 
                                preceding subparagraph (A), by striking 
                                ``1201(a)'' and inserting ``101(a)''; 
                                and</DELETED>
                                <DELETED>    (II) in subparagraph (C), 
                                by striking ``1201(a)'' and inserting 
                                ``101(a)''; and</DELETED>
                        <DELETED>    (ii) in paragraph (2)--</DELETED>
                                <DELETED>    (I) in the matter 
                                preceding clause (i) of subparagraph 
                                (A), by striking ``1201(a)'' and 
                                inserting ``101(a)''; and</DELETED>
                                <DELETED>    (II) in the matter 
                                following clause (ii) of subparagraph 
                                (B), by striking ``1201(a)'' and 
                                inserting ``101(a)'';</DELETED>
                <DELETED>    (B) in subsection (b), by striking 
                ``1201(a)'' each place the term appears and inserting 
                ``101(a)''; and</DELETED>
                <DELETED>    (C) in subsection (c), by striking 
                ``1201(a)'' each place the term appears and inserting 
                ``101(a)'';</DELETED>
        <DELETED>    (3) in section 485(f)(1)(I) (20 U.S.C. 
        1092(f)(1)(I)), by striking ``1213'' and inserting 
        ``111'';</DELETED>
        <DELETED>    (4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)), 
        by striking ``1201(a)(2)'' and inserting 
        ``101(a)(2)'';</DELETED>
        <DELETED>    (5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)), 
        by striking ``1201(a)'' and inserting ``101(a)'';</DELETED>
        <DELETED>    (6) in section 631(a)(8) (20 U.S.C. 1132(a)(8))--
        </DELETED>
                <DELETED>    (A) by striking ``section 1201(a)'' each 
                place the term appears and inserting ``section 
                101(a)''; and</DELETED>
                <DELETED>    (B) by striking ``of 1201(a)'' and 
                inserting ``of section 101(a)''; and</DELETED>
        <DELETED>    (7) in section 1081(d) (20 U.S.C. 1135f(d)), by 
        striking ``1201'' and inserting ``101(a)''.</DELETED>

         <DELETED>TITLE II--IMPROVING TEACHER QUALITY</DELETED>

<DELETED>SEC. 201. IMPROVING TEACHER QUALITY.</DELETED>

<DELETED>    The Act (20 U.S.C. 1001) is amended by inserting after 
section 112 (as added by section 104) the following:</DELETED>

        <DELETED>``TITLE II--IMPROVING TEACHER QUALITY</DELETED>

<DELETED>``SEC. 201. PURPOSES.</DELETED>

<DELETED>    ``The purpose of this title is to--</DELETED>
        <DELETED>    ``(1) improve student achievement;</DELETED>
        <DELETED>    ``(2) improve the quality of the current and 
        future teaching force by improving the preparation of 
        prospective teachers and enhancing professional development 
        activities; and</DELETED>
        <DELETED>    ``(3) hold institutions of higher education 
        accountable for preparing teachers who have the necessary 
        teaching skills and are highly competent in the academic 
        content areas in which the teachers plan to teach, including 
        training in the effective uses of technologies in the 
        classroom.</DELETED>

              <DELETED>``PART A--TEACHER QUALITY</DELETED>

   <DELETED>``Subpart 1--Teacher Quality Enhancement Grants</DELETED>

<DELETED>``SEC. 211. GRANTS AUTHORIZED.</DELETED>

<DELETED>    ``(a) In General.--The Secretary is authorized to award 
grants to States to enable the States to carry out the activities 
described in section 212. Each grant may be awarded for a period of not 
more than 5 years.</DELETED>
<DELETED>    ``(b) State Designation.--</DELETED>
        <DELETED>    ``(1) In general.--A State desiring a grant under 
        this subpart shall, consistent with State law, designate the 
        chief individual or entity in the State responsible for the 
        State supervision of education, to administer the activities 
        assisted under this subpart.</DELETED>
        <DELETED>    ``(2) Consultation.--The individual or entity 
        designated under paragraph (1) shall consult with the Governor, 
        State board of education, or State educational agency, as 
        appropriate.</DELETED>
        <DELETED>    ``(3) Construction.--Nothing in this subpart shall 
        be construed to negate or supersede the legal authority under 
        State law of any State agency, State entity, or State public 
        official over programs that are under the jurisdiction of the 
        agency, entity, or official.</DELETED>
<DELETED>    ``(c) Matching Requirement.--Each State receiving a grant 
under this subpart shall provide, from non-Federal sources, an amount 
equal to </DELETED>\<DELETED>1/2</DELETED>\ <DELETED>of the amount of 
the grant, in cash or in kind, to carry out the activities supported 
through the grant.</DELETED>

<DELETED>``SEC. 212. USE OF FUNDS.</DELETED>

<DELETED>    ``A State that receives a grant under this subpart shall 
use the grant funds to reform teacher preparation requirements, and to 
ensure that current and future teachers possess the necessary teaching 
skills and academic content knowledge in the subject areas in which the 
teachers are assigned to teach, by carrying out 1 or more of the 
following activities:</DELETED>
        <DELETED>    ``(1) Reforms.--Implementing reforms that hold 
        institutions of higher education with teacher preparation 
        programs accountable for preparing teachers who are highly 
        competent in the academic content areas in which the teachers 
        plan to teach, which may include the use of rigorous subject 
        matter competency tests and the requirement that a teacher have 
        an academic major in the subject area, or related discipline, 
        in which the teacher plans to teach.</DELETED>
        <DELETED>    ``(2) Certification or licensure requirements.--
        Reforming teacher certification or licensure requirements to 
        ensure that new teachers have the necessary teaching skills and 
        academic content knowledge in the subject areas in which 
        teachers are assigned to teach.</DELETED>
        <DELETED>    ``(3) Alternatives to traditional preparation for 
        teaching.--Providing prospective teachers alternatives to 
        traditional preparation for teaching through programs at 
        colleges of arts and sciences or at nonprofit 
        organizations.</DELETED>
        <DELETED>    ``(4) Alternative routes.--Funding programs that 
        establish, expand, or improve alternative routes to State 
        certification for highly qualified individuals from other 
        occupations and recent college graduates with records of 
        academic distinction, including support during the initial 
        teaching experience.</DELETED>
        <DELETED>    ``(5) Recruitment; pay; removal.--Developing and 
        implementing effective mechanisms to ensure that schools are 
        able to effectively recruit highly qualified teachers, to 
        financially reward those teachers and principals whose students 
        have made significant progress toward high academic 
        performance, such as through performance-based compensation 
        systems and access to ongoing professional development 
        opportunities for teachers and administrators, and to remove 
        teachers who are not qualified.</DELETED>
        <DELETED>    ``(6) Innovative efforts.--Development and 
        implementation of innovative efforts aimed at reducing the 
        shortage of highly qualified teachers in high poverty urban and 
        rural areas, that may include the recruitment of highly 
        qualified individuals from other occupations through 
        alternative certification programs.</DELETED>
        <DELETED>    ``(7) Social promotion.--Development and 
        implementation of efforts to address the problem of social 
        promotion and to prepare teachers to effectively address the 
        issues raised by ending the practice of social 
        promotion.</DELETED>

<DELETED>``SEC. 213. COMPETITIVE AWARDS.</DELETED>

<DELETED>    ``(a) Annual Awards; Competitive Basis.--The Secretary 
shall award grants under this subpart annually and on a competitive 
basis.</DELETED>
<DELETED>    ``(b) Peer Review Panel.--The Secretary shall provide the 
applications submitted by States under section 214 to a peer review 
panel for evaluation. With respect to each application, the peer review 
panel shall initially recommend the application for funding or for 
disapproval.</DELETED>
<DELETED>    ``(c) Priority.--In recommending applications for funding 
to the Secretary, the panel shall give priority to applications from 
States that describe activities that--</DELETED>
        <DELETED>    ``(1) include innovative reforms to hold 
        institutions of higher education with teacher preparation 
        programs accountable for preparing teachers who are highly 
        competent in the academic content areas in which the teachers 
        plan to teach; and</DELETED>
        <DELETED>    ``(2) involve the development of innovative 
        efforts aimed at reducing the shortage of highly qualified 
        teachers in high poverty urban and rural areas.</DELETED>

<DELETED>``SEC. 214. APPLICATIONS.</DELETED>

<DELETED>    ``(a) In General.--Each State desiring a grant under this 
subpart shall submit an application to the Secretary at such time, in 
such manner and accompanied by such information as the Secretary may 
require.</DELETED>
<DELETED>    ``(b) Content of Applications.--Such application shall 
include a description of how the State intends to use funds provided 
under this subpart.</DELETED>

  <DELETED>``Subpart 2--Teacher Training Partnerships Grants</DELETED>

<DELETED>``SEC. 221. GRANTS AUTHORIZED.</DELETED>

<DELETED>    ``(a) In General.--The Secretary is authorized to award 
grants to teacher training partnerships to enable the partnerships to 
carry out the activities described in section 222. Each grant may be 
awarded for a period of not more than 5 years.</DELETED>
<DELETED>    ``(b) Teacher Training Partnerships.--For the purpose of 
this part the term `teacher training partnership' means a partnership 
that--</DELETED>
        <DELETED>    ``(1) shall include a school of arts and sciences, 
        a school or program of education, a local educational agency, 
        and a kindergarten through grade 12 school; and</DELETED>
        <DELETED>    ``(2) may include a State educational agency, a 
        pre-kindergarten program, a nonprofit group, a business, or a 
        teacher organization.</DELETED>
<DELETED>    ``(c) Priority.--</DELETED>
        <DELETED>    ``(1) In general.--In awarding grants under this 
        subpart the Secretary shall give priority to partnerships 
        that--</DELETED>
                <DELETED>    ``(A) involve businesses; or</DELETED>
                <DELETED>    ``(B) include a high need local 
                educational agency, elementary school or secondary 
                school.</DELETED>
        <DELETED>    ``(2) High need.--A local educational agency, 
        elementary school or secondary school shall be considered high 
        need for purposes of paragraph (1)(B) if the agency or school 
        serves an area within a State in which there is--</DELETED>
                <DELETED>    ``(A) a large number of individuals from 
                families with incomes below the poverty line;</DELETED>
                <DELETED>    ``(B) a high percentage of teachers not 
                teaching in the content area in which the teachers were 
                trained to teach; or</DELETED>
                <DELETED>    ``(C) a high teacher turnover.</DELETED>
<DELETED>    ``(d) Consideration.--In awarding grants under this 
subpart the Secretary will take into consideration--</DELETED>
        <DELETED>    ``(1) providing an equitable geographic 
        distribution of the grants throughout the United States; 
        and</DELETED>
        <DELETED>    ``(2) the proposed project's potential for 
        creating improvement and positive change.</DELETED>
<DELETED>    ``(e) Matching Funds.--Each partnership receiving a grant 
under this subpart shall provide, from sources other than this subpart, 
an amount equal to 25 percent of the grant in the first year, 35 
percent in the second such year, and 50 percent in each succeeding such 
year, of the amount of the grant, in cash or in kind, to carry out the 
activities supported by the grant.</DELETED>
<DELETED>    ``(f) One-Time Award.--A partnership may receive a grant 
under this section only once.</DELETED>

<DELETED>``SEC. 222. USE OF FUNDS.</DELETED>

<DELETED>    ``(a) In General.--Grant funds under this part shall be 
used to--</DELETED>
        <DELETED>    ``(1) coordinate with the activities of the 
        Governor, State board of education, and State educational 
        agency, as appropriate;</DELETED>
        <DELETED>    ``(2) provide sustained and high quality 
        preservice clinical experiences including the mentoring of 
        prospective teachers by veteran teachers;</DELETED>
        <DELETED>    ``(3) work with a school of arts and sciences to 
        provide increased academic study in a proposed teaching 
        specialty area, through activities such as--</DELETED>
                <DELETED>    ``(A) restructuring curriculum;</DELETED>
                <DELETED>    ``(B) changing core course 
                requirements;</DELETED>
                <DELETED>    ``(C) increasing liberal arts 
                focus;</DELETED>
                <DELETED>    ``(D) providing preparation for board 
                certification; and</DELETED>
                <DELETED>    ``(E) assessing and improving alternative 
                certification, including mentoring and induction 
                support;</DELETED>
        <DELETED>    ``(4) substantially increasing interaction and 2-
        way collaboration between--</DELETED>
                <DELETED>    ``(A) faculty at institutions of higher 
                education; and</DELETED>
                <DELETED>    ``(B) new and experienced teachers, 
                principals, and other administrators at elementary 
                schools or secondary schools;</DELETED>
        <DELETED>    ``(5) prepare teachers to use technology 
        effectively in the classroom;</DELETED>
        <DELETED>    ``(6) integrate reliable research-based teaching 
        methods into the curriculum;</DELETED>
        <DELETED>    ``(7) broadly disseminate information on effective 
        practices used by the partnership; and</DELETED>
        <DELETED>    ``(8) provide support, including preparation time, 
        for interaction between faculty at an institution of higher 
        education and classroom teachers.</DELETED>
<DELETED>    ``(b) Special Rule.--No individual member of a partnership 
shall retain more than 50 percent of the funds made available to the 
partnership under this subpart.</DELETED>

<DELETED>``SEC. 223. APPLICATIONS.</DELETED>

<DELETED>    ``Each teacher training partnership desiring a grant under 
this subpart shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may require. Each such application shall--</DELETED>
        <DELETED>    ``(1) describe the composition of the partnership 
        and the involvement of each partner in the development of the 
        application;</DELETED>
        <DELETED>    ``(2) contain a needs assessment that includes an 
        analysis of the needs of all the partners with respect to 
        teaching and learning;</DELETED>
        <DELETED>    ``(3) contain a resource assessment that 
        includes--</DELETED>
                <DELETED>    ``(A) an analysis of resources available 
                to the partnership;</DELETED>
                <DELETED>    ``(B) a description of the intended use of 
                the grant funds;</DELETED>
                <DELETED>    ``(C) a description of how the partnership 
                will coordinate with other teacher training or 
                professional development programs, including Federal, 
                State, local, private, and other programs;</DELETED>
                <DELETED>    ``(D) a description of how the activities 
                assisted under this subpart are consistent with 
                educational reform activities that promote student 
                achievement; and</DELETED>
                <DELETED>    ``(E) a description of the commitment of 
                the resources of the partnership to the activities 
                assisted under this subpart, including financial 
                support, faculty participation, and time 
                commitments;</DELETED>
        <DELETED>    ``(4) describe how the partnership will include 
        the participation of the schools, colleges, or departments of 
        arts and sciences within an institution of higher education to 
        ensure the integration of teaching techniques and content in 
        teaching preparation;</DELETED>
        <DELETED>    ``(5) describe how the partnership will 
        restructure and improve teaching, teacher training, and 
        development programs, and how such systemic changes will 
        contribute to increased student achievement;</DELETED>
        <DELETED>    ``(6) describe how the partnership will prepare 
        teachers to work with diverse student populations, including 
        individuals with disabilities and limited English proficient 
        individuals;</DELETED>
        <DELETED>    ``(7) describe how the partnership will prepare 
        teachers to use technology;</DELETED>
        <DELETED>    ``(8) contain a dissemination plan regarding 
        knowledge and information with respect to effective teaching 
        practices, and a description of how such knowledge and 
        information will be implemented in elementary schools or 
        secondary schools as well as institutions of higher 
        education;</DELETED>
        <DELETED>    ``(9) describe the commitment of the partnership 
        to continue the activities assisted under this subpart without 
        grant funds provided under this subpart; and</DELETED>
        <DELETED>    ``(10) describe how the partnership will involve 
        and include parents in the reform process.</DELETED>

           <DELETED>``Subpart 3--General Provisions</DELETED>

<DELETED>``SEC. 231. ACCOUNTABILITY AND EVALUATION.</DELETED>

<DELETED>    ``(a) Teacher Quality Enhancement Grants.--</DELETED>
        <DELETED>    ``(1) Accountability report.--A State that 
        receives a grant under subpart 1 shall submit an annual 
        accountability report to the Secretary, the Committee on Labor 
        and Human Resources of the Senate, and the Committee on 
        Education and the Workforce of the House of Representatives. 
        Such report shall include a description of the degree to which 
        the State, in using funds provided under subpart 1, has made 
        substantial progress in meeting the following goals:</DELETED>
                <DELETED>    ``(A) Student achievement.--Increasing 
                student achievement for all students, as measured by 
                increased graduation rates, decreased dropout rates, or 
                higher scores on local, State or other 
                assessments.</DELETED>
                <DELETED>    ``(B) Raising standards.--Raising the 
                State academic standards required to enter the teaching 
                profession, including, where appropriate, incentives to 
                incorporate the requirement of an academic major in the 
                subject, or related discipline, in which the teacher 
                plans to teach.</DELETED>
                <DELETED>    ``(C) Initial certification or 
                licensure.--Increasing success in the passage rate for 
                initial State teacher certification or licensure, or 
                increasing numbers of highly qualified individuals 
                being certified or licensed as teachers through 
                alternative programs.</DELETED>
                <DELETED>    ``(D) Core academic subjects.--Increasing 
                the percentage of classes taught in core academic 
                subject areas by teachers highly competent in those 
                subject areas.</DELETED>
                <DELETED>    ``(E) Decreasing shortages for 
                professional development.--Decreasing shortages of 
                qualified teachers in poor urban and rural 
                areas.</DELETED>
                <DELETED>    ``(F) Increasing opportunities.--
                Increasing opportunities for enhanced and ongoing 
                professional development that improves the academic 
                content knowledge of teachers in the subject areas in 
                which the teachers are certified to teach or in which 
                the teachers are working toward certification to 
                teach.</DELETED>
                <DELETED>    ``(G) Technology integration.--Increasing 
                the number of teachers prepared to integrate technology 
                in the classroom.</DELETED>
        <DELETED>    ``(2) Teacher qualifications provided to parent 
        upon request.--Any local educational agency that benefits from 
        the activities assisted under subpart 1 shall make available, 
        upon request and in an understandable and uniform format, to 
        any parent of a student attending any school served by the 
        local educational agency, information regarding the 
        qualifications of the student's classroom teacher with regard 
        to the subject matter in which the teacher provides 
        instruction. The local educational agency shall inform parents 
        that the parents are entitled to receive the information upon 
        request.</DELETED>
<DELETED>    ``(b) Teacher Training Partnership Evaluation Plan.--Each 
teacher training partnership receiving a grant under subpart 2 shall 
establish an evaluation plan that includes strong performance 
objectives established in negotiation with the Secretary at the time of 
the grant award. The plan shall include objectives and measures for--
</DELETED>
        <DELETED>    ``(1) increased student achievement for all 
        students as measured by increased graduation rates, decreased 
        dropout rates, or higher scores on local, State, or other 
        assessments for a year compared to student achievement as 
        determined by the rates or scores, as the case may be, for the 
        year prior to the year for which a grant under this part is 
        received;</DELETED>
        <DELETED>    ``(2) increased teacher retention in the first 3 
        years of a teacher's career;</DELETED>
        <DELETED>    ``(3) increased success in the passage rate for 
        initial State certification or licensure of teachers;</DELETED>
        <DELETED>    ``(4) increased number of academic courses taken 
        in core subject areas;</DELETED>
        <DELETED>    ``(5) increased integration of technology in 
        teacher preparation and in classroom instruction;</DELETED>
        <DELETED>    ``(6) restructuring or change of methodology 
        courses to reflect best practices learned from elementary 
        schools, secondary schools or other entities;</DELETED>
        <DELETED>    ``(7) increased dissemination of information about 
        effective teaching strategies and practices; and</DELETED>
        <DELETED>    ``(8) other effects of increased integration among 
        members of the partnership.</DELETED>

<DELETED>``SEC. 232. REVOCATION OF GRANT.</DELETED>

<DELETED>    ``Each State or teacher training partnership receiving a 
grant under this part shall report annually on progress toward meeting 
the purposes of this part, and the goals, objectives and measures 
described in section 231. If the Secretary, after consultation with the 
peer review panel described in section 213(b) determines that the State 
or partnership is not making substantial progress in meeting the 
purposes, goals, objectives and measures, as appropriate, by the end of 
the second year of the grant, the grant shall not be continued for the 
third year of the grant.</DELETED>

<DELETED>``SEC. 233. EVALUATION AND DISSEMINATION.</DELETED>

<DELETED>    ``The Secretary shall evaluate the activities funded under 
this part and report the Secretary's findings to the Committee on Labor 
and Human Resources of the Senate and the Committee on Education and 
the Workforce of the House of Representatives. The Secretary shall 
broadly disseminate successful practices developed by the States and 
teacher training partnerships under this part, and shall broadly 
disseminate information regarding such practices so developed that were 
found to be ineffective.</DELETED>

<DELETED>``SEC. 234. INTERNATIONAL STUDY AND REPORT.</DELETED>

<DELETED>    ``(a) Study.--The Secretary shall conduct a study through 
the National Center for Education Statistics regarding the ways 
teachers are trained and the extent to which teachers in the United 
States and other comparable countries are teaching in areas other than 
the teachers' field of study or expertise. The study will examine 
specific fields and will outline the nature and extent of the problem 
of out-of-field teaching in the United States and in other countries 
that are considered comparable to the United States. The study shall 
include, at a minimum, all the countries that participated in the Third 
International Mathematics and Science Study (TIMSS).</DELETED>
<DELETED>    ``(b) Report.--The Secretary shall report to Congress 
regarding the results of the study described in subsection 
(a).</DELETED>

<DELETED>``SEC. 235. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``There are authorized to be appropriated to carry out 
this part $300,000,000 for fiscal year 1999 and such sums as necessary 
for each of the 4 succeeding fiscal years, of which--</DELETED>
        <DELETED>    ``(1) 50 percent shall be available for each 
        fiscal year to carry out subpart 1; and</DELETED>
        <DELETED>    ``(2) 50 percent shall be available for each 
        fiscal year to carry out subpart 2.</DELETED>

      <DELETED>``PART B--RECRUITING NEW TEACHERS FOR UNDERSERVED 
                            AREAS</DELETED>

<DELETED>``SEC. 251. STATEMENT OF PURPOSE.</DELETED>

<DELETED>    ``It is the purpose of this part to--</DELETED>
        <DELETED>    ``(1) provide scholarships and, as necessary, 
        support services for students with high potential to become 
        effective teachers, particularly minority students;</DELETED>
        <DELETED>    ``(2) increase the quality and number of new 
        teachers nationally; and</DELETED>
        <DELETED>    ``(3) increase the ability of schools in 
        underserved areas to recruit a qualified teaching 
        staff.</DELETED>

<DELETED>``SEC. 252. DEFINITIONS.</DELETED>

<DELETED>    ``In this part--</DELETED>
        <DELETED>    ``(1) Eligible partnership.--</DELETED>
                <DELETED>    ``(A) In general.--The term `eligible 
                partnership' means a partnership consisting of--
                </DELETED>
                        <DELETED>    ``(i) an institution of higher 
                        education that awards baccalaureate degrees and 
                        prepares teachers for their initial entry into 
                        the teaching profession; and</DELETED>
                        <DELETED>    ``(ii) one or more local 
                        educational agencies that serve underserved 
                        areas.</DELETED>
                <DELETED>    ``(B) Additional partners.--Such a 
                partnership may also include--</DELETED>
                        <DELETED>    ``(i) 2-year institutions of 
                        higher education that operate teacher 
                        preparation programs and maintain articulation 
                        agreements, with the institutions of higher 
                        education that award baccalaureate degrees for 
                        the transfer of credits in teacher 
                        preparation;</DELETED>
                        <DELETED>    ``(ii) State agencies that have 
                        responsibility for policies related to teacher 
                        preparation and teacher certification or 
                        licensure; and</DELETED>
                        <DELETED>    ``(iii) other public and private, 
                        nonprofit agencies and organizations that 
                        serve, or are located in, communities served by 
                        the local educational agencies in the 
                        partnership, and that have an interest in 
                        teacher recruitment, preparation, and 
                        induction.</DELETED>
        <DELETED>    ``(2) Support services.--The term `support 
        services' means--</DELETED>
                <DELETED>    ``(A) academic advice and 
                counseling;</DELETED>
                <DELETED>    ``(B) tutorial services;</DELETED>
                <DELETED>    ``(C) mentoring; and</DELETED>
                <DELETED>    ``(D) child care and transportation, if 
                funding for those services cannot be arranged from 
                other sources.</DELETED>
        <DELETED>    ``(3) Underserved area.--The term `underserved 
        area' means--</DELETED>
                <DELETED>    ``(A) the area served by the 3 local 
                educational agencies in the State that have the highest 
                numbers of children, ages 5 through 17, from families 
                below the poverty level (based on data satisfactory to 
                the Secretary); and</DELETED>
                <DELETED>    ``(B) the area served by any other local 
                educational agency in which the percentage of such 
                children is at least 20 percent, or the number of such 
                children is at least 10,000.</DELETED>

<DELETED>``SEC. 253. GRANT AUTHORITY AND CONDITIONS.</DELETED>

<DELETED>    ``(a) Grants Authorized.--</DELETED>
        <DELETED>    ``(1) Grants.--</DELETED>
                <DELETED>    ``(A) In general.--From amounts 
                appropriated under section 262 the Secretary shall 
                award grants, on a competitive basis, to eligible 
                partnerships to enable the eligible partnerships to pay 
                the Federal share of the cost of carrying out the 
                activities described in section 255.</DELETED>
                <DELETED>    ``(B) Duration.--Each grant awarded under 
                subparagraph (A) shall be awarded for a period not to 
                exceed 5 years.</DELETED>
        <DELETED>    ``(2) Continuing eligibility; review of 
        progress.--The Secretary shall--</DELETED>
                <DELETED>    ``(A) continue to make grant payments for 
                the second and succeeding years of a grant awarded 
                under this part, only after determining that the 
                eligible partnership is making satisfactory progress in 
                carrying out the activities under the grant; 
                and</DELETED>
                <DELETED>    ``(B) conduct an intensive review of the 
                eligible partnerships's progress under the grant, with 
                the assistance of outside experts, before making grant 
                payments for the fourth year of the grant.</DELETED>
        <DELETED>    ``(3) Maximum number.--No eligible partnership may 
        receive more than 2 grants under this subsection.</DELETED>
<DELETED>    ``(b) Matching Requirement.--</DELETED>
        <DELETED>    ``(1) Federal share.--The Federal share of the 
        cost of activities carried out under a grant made under 
        subsection (a) shall not exceed--</DELETED>
                <DELETED>    ``(A) 70 percent of the cost in the first 
                year of the grant;</DELETED>
                <DELETED>    ``(B) 60 percent in the second 
                year;</DELETED>
                <DELETED>    ``(C) 60 percent in the third 
                year;</DELETED>
                <DELETED>    ``(D) 50 percent in the fourth year; 
                and</DELETED>
                <DELETED>    ``(E) 50 percent in the fifth year and any 
                succeeding year (including each year of the second 
                grant, if any).</DELETED>
        <DELETED>    ``(2) Non-federal share.--The non-Federal share of 
        activities carried out with a grant under subsection (a) may be 
        provided in cash or in kind, fairly evaluated, and may be 
        obtained from any non-Federal public or private 
        source.</DELETED>
<DELETED>    ``(c) Planning Grants.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary may award 
        planning grants to eligible partnerships that are not ready to 
        implement programs under subsection (a).</DELETED>
        <DELETED>    ``(2) Duration.--Each planning grant shall be for 
        a period of not more than 1 year, which shall be in addition to 
        the period of any grant under subsection (a).</DELETED>
        <DELETED>    ``(3) Requirement.--Any recipient of a planning 
        grant under this subsection that wishes to receive a grant 
        under subsection (a)(1) shall separately apply for a grant 
        under that subsection.</DELETED>

<DELETED>``SEC. 254. GRANT APPLICATIONS.</DELETED>

<DELETED>    ``(a) Applications Required.--Any eligible partnership 
desiring to receive a grant under this part shall submit an application 
to the Secretary at such time, in such form, and containing such 
information as the Secretary may require.</DELETED>
<DELETED>    ``(b) Application Contents.--Each application for a grant 
under section 253(a) shall include--</DELETED>
        <DELETED>    ``(1) a designation of the institution or agency, 
        within the eligible partnership, that will serve as the fiscal 
        agent for the grant;</DELETED>
        <DELETED>    ``(2) information on the quality of the teacher 
        preparation program of the institution of higher education 
        participating in the eligible partnership and how the eligible 
        partnership will ensure, through improvements in the eligible 
        partnership's teacher preparation practices or other 
        appropriate strategies, that scholarship recipients will 
        receive high-quality preparation;</DELETED>
        <DELETED>    ``(3) a description of the assessment the members 
        of the eligible partnership have undertaken--</DELETED>
                <DELETED>    ``(A) to determine--</DELETED>
                        <DELETED>    ``(i) the most critical needs of 
                        the local educational agencies, particularly 
                        the needs of schools in high-poverty areas, for 
                        new teachers (which may include teachers in 
                        particular subject areas or at certain grade 
                        levels); and</DELETED>
                        <DELETED>    ``(ii) how the project carried out 
                        under the grant will address those needs; 
                        and</DELETED>
                <DELETED>    ``(B) that reflects the input of all 
                significant entities in the community (including 
                organizations representing teachers and parents) that 
                have an interest in teacher recruitment, preparation, 
                and induction;</DELETED>
        <DELETED>    ``(4) a description of the project the eligible 
        partnership will carry out with the grant, including 
        information regarding--</DELETED>
                <DELETED>    ``(A) the recruitment and outreach efforts 
                the eligible partnership will undertake to publicize 
                the availability of scholarships and other assistance 
                under the program;</DELETED>
                <DELETED>    ``(B)(i) the number and types of students 
                that the eligible partnership will serve under the 
                program, which may include education paraprofessionals 
                seeking to achieve full teacher certification or 
                licensure; teachers whom the partner local educational 
                agencies have hired under emergency certification or 
                licensure procedures; or former military personnel, 
                mid-career professionals, or AmeriCorps or Peace Corps 
                volunteers, who desire to enter teaching; and</DELETED>
                <DELETED>    ``(ii) the criteria that the eligible 
                partnership will use in selecting the students, 
                including criteria to determine whether individuals 
                have the capacity to benefit from the program, complete 
                teacher certification requirements, and become 
                effective teachers;</DELETED>
                <DELETED>    ``(C) the activities the eligible 
                partnership will carry out under the grant, including a 
                description of, and justification for, any support 
                services the institution of higher education 
                participating in the eligible partnership will offer to 
                participating students;</DELETED>
                <DELETED>    ``(D) the number and funding range of the 
                scholarships the institution will provide to students; 
                and</DELETED>
                <DELETED>    ``(E) the procedures the institution will 
                establish for entering into, and enforcing, agreements 
                with scholarship recipients regarding the recipients' 
                fulfillment of the service commitment described in 
                section 259;</DELETED>
        <DELETED>    ``(5) a description of how the institution will 
        use funds provided under the grant only--</DELETED>
                <DELETED>    ``(A) to increase the number of students--
                </DELETED>
                        <DELETED>    ``(i) with high potential to be 
                        effective teachers;</DELETED>
                        <DELETED>    ``(ii) participating in the 
                        institution's teacher preparation programs; 
                        or</DELETED>
                        <DELETED>    ``(iii) in the particular type or 
                        types of preparation programs that the grant 
                        will support; or</DELETED>
                <DELETED>    ``(B) to increase the number of graduates, 
                who are minority individuals, with high potential to be 
                effective teachers;</DELETED>
        <DELETED>    ``(6) a description of the commitments, by the 
        local educational agencies participating in the partnership, to 
        hire qualified scholarship recipients in the schools served by 
        the agencies and in the subject areas or grade levels for which 
        the scholarship recipients will be trained, and a description 
        of the actions the participating institution of higher 
        education, the participating local educational agencies, and 
        the other partners will take to facilitate the successful 
        transition of the recipients into teaching; and</DELETED>
        <DELETED>    ``(7) a description of the eligible partnership's 
        plan for institutionalizing the activities the partnership is 
        carrying out under this part, so that the activities will 
        continue once Federal funding ceases.</DELETED>

<DELETED>``SEC. 255. USES OF FUNDS.</DELETED>

<DELETED>    ``(a) In General.--Each eligible partnership receiving a 
grant under section 523(a) shall use the grant funds for the 
following:</DELETED>
        <DELETED>    ``(1) Scholarships.--Scholarships to help students 
        pay the costs of tuition, room, board, and other expenses of 
        completing a teacher preparation program.</DELETED>
        <DELETED>    ``(2) Support services.--Support services, if 
        needed to enable scholarship recipients to complete 
        postsecondary education programs.</DELETED>
        <DELETED>    ``(3) Followup services.--Followup services 
        provided to former scholarship recipients during the 
        recipients' first 3 years of teaching.</DELETED>
        <DELETED>    ``(4) Payments.--Payments to partner local 
        educational agencies, if needed to enable the agencies to 
        permit paraprofessional staff to participate in teacher 
        preparation programs (such as the cost of release time for the 
        staff).</DELETED>
        <DELETED>    ``(5) Additional courses.--If appropriate, and if 
        no other funds are available for, paying the costs of 
        additional courses taken by former scholarship recipients 
        during the recipients' initial 3 years of teaching.</DELETED>
<DELETED>    ``(b) Planning Grants.--A recipient of a planning grant 
under section 253(c) shall use the grant funds for the costs of 
planning for the implementation of a grant under section 
253(a).</DELETED>

<DELETED>``SEC. 256. SELECTION OF APPLICANTS.</DELETED>

<DELETED>    ``(a) Peer Review.--The Secretary, using a peer review 
process, shall select eligible partnerships to receive funding under 
this part on the basis of--</DELETED>
        <DELETED>    ``(1) the quality of the teacher preparation 
        program offered by the institution participating in the 
        partnership;</DELETED>
        <DELETED>    ``(2) the quality of the program carried out under 
        the application; and</DELETED>
        <DELETED>    ``(3) the capacity of the partnership to carry out 
        the grant successfully.</DELETED>
<DELETED>    ``(b) Criteria.--</DELETED>
        <DELETED>    ``(1) In general.--In awarding grants under 
        section 253(a), the Secretary shall seek to ensure that--
        </DELETED>
                <DELETED>    ``(A) in the aggregate, eligible 
                partnerships carry out a variety of approaches to 
                preparing new teachers; and</DELETED>
                <DELETED>    ``(B) there is an equitable geographic 
                distribution of the grants.</DELETED>
        <DELETED>    ``(2) Special consideration.--In addition to 
        complying with paragraph (1), the Secretary shall give special 
        consideration to--</DELETED>
                <DELETED>    ``(A) applications most likely to result 
                in the preparation of increased numbers of individuals 
                with high potential for effective teaching who are 
                minority individuals; and</DELETED>
                <DELETED>    ``(B) applications from partnerships that 
                have as members of the partnerships historically Black 
                colleges and universities, Hispanic-serving 
                institutions, and Tribal Colleges and 
                Universities.</DELETED>
<DELETED>    ``(c) Second Five-Year Grants.--In selecting eligible 
partnerships to receive second year grant payments under this part, the 
Secretary shall give a preference to eligible partnerships whose 
projects have resulted in--</DELETED>
        <DELETED>    ``(1) the placement and retention of a substantial 
        number of high-quality graduates in teaching positions in 
        underserved, high-poverty schools;</DELETED>
        <DELETED>    ``(2) the adoption of effective programs that meet 
        the teacher preparation needs of high-poverty urban and rural 
        areas; and</DELETED>
        <DELETED>    ``(3) effective partnerships with elementary 
        schools and secondary schools that are supporting improvements 
        in student achievement.</DELETED>

<DELETED>``SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELATION TO 
              OTHER ASSISTANCE.</DELETED>

<DELETED>    ``(a) Duration of Assistance.--No individual may receive 
scholarship assistance under this part--</DELETED>
        <DELETED>    ``(1) for more than 5 years of postsecondary 
        education; and</DELETED>
        <DELETED>    ``(2) unless that individual satisfies the 
        requirements of section 484(a)(5).</DELETED>
<DELETED>    ``(b) Amount of Assistance.--No individual may receive a 
scholarship awarded under this part that exceeds the cost of 
attendance, as defined in section 472, at the institution of higher 
education the individual is attending.</DELETED>
<DELETED>    ``(c) Relation to Other Assistance.--A scholarship awarded 
under this part--</DELETED>
        <DELETED>    ``(1) shall not be reduced on the basis of the 
        individual's receipt of other forms of Federal student 
        financial assistance; and</DELETED>
        <DELETED>    ``(2) shall be regarded as other financial 
        assistance available to the student, within the meaning of 
        sections 471(3) and 480(j)(1), in determining the student's 
        eligibility for grant, loan, or work assistance under title 
        IV.</DELETED>

<DELETED>``SEC. 258. SCHOLARSHIP CONDITIONS.</DELETED>

<DELETED>    ``(a) In General.--A recipient of a scholarship under this 
part shall continue to receive the scholarship assistance only as long 
as the recipient is--</DELETED>
        <DELETED>    ``(1) enrolled as a full-time student and pursuing 
        a course of study leading to teacher certification, unless the 
        recipient is working in a public school (as a paraprofessional, 
        or as a teacher under emergency credentials) while 
        participating in the program; and</DELETED>
        <DELETED>    ``(2) maintaining satisfactory progress as 
        determined by the institution of higher education participating 
        in the partnership.</DELETED>
<DELETED>    ``(b) Special Rule.--Each eligible partnership shall 
modify the application of section 257(a)(1) and of subsection (a)(1) to 
the extent necessary to accommodate the rights of individuals with 
disabilities under section 504 of the Rehabilitation Act of 
1973.</DELETED>

<DELETED>``SEC. 259. SERVICE REQUIREMENTS.</DELETED>

<DELETED>    ``(a) Requirement.--Each eligible partnership receiving a 
grant under this part shall enter into an agreement, with each student 
to whom the partnership awards a scholarship under this part, providing 
that a scholarship recipient who completes a teacher preparation 
program under this part shall, within 7 years of completing that 
program, teach full-time for at least 5 years in a high-poverty school 
in an underserved geographic area or repay the amount of the 
scholarship, under the terms and conditions established by the 
Secretary.</DELETED>
<DELETED>    ``(b) Regulations.--The Secretary shall prescribe 
regulations relating to the requirements of subsection (a), including 
any provisions for waiver of those requirements.</DELETED>

<DELETED>``SEC. 260. EVALUATION.</DELETED>

<DELETED>    ``The Secretary shall provide for an evaluation of the 
program carried out under this part, which shall asses such issues as--
</DELETED>
        <DELETED>    ``(1) whether institutions participating in the 
        eligible partnerships are successful in preparing scholarship 
        recipients to teach to high State and local 
        standards;</DELETED>
        <DELETED>    ``(2) whether scholarship recipients are 
        successful in completing teacher preparation programs, becoming 
        fully certified teachers, and obtaining teaching positions in 
        underserved areas, and whether the recipients continue teaching 
        in those areas over a period of years;</DELETED>
        <DELETED>    ``(3) the national impact of the program in 
        assisting local educational agencies in underserved areas to 
        recruit, prepare, and retain diverse, high-quality teachers in 
        the areas in which the agencies have the greatest 
        needs;</DELETED>
        <DELETED>    ``(4) the long-term impact of the grants on 
        teacher preparation programs conducted by institutions of 
        higher education participating in the eligible partnership and 
        on the institutions' relationships with their partner local 
        educational agencies and other members of the partnership; 
        and</DELETED>
        <DELETED>    ``(5) the relative effectiveness of different 
        approaches for preparing new teachers to teach in underserved 
        areas, including their effectiveness in preparing new teachers 
        to teach to high content and performance standards.</DELETED>

<DELETED>``SEC. 261. NATIONAL ACTIVITIES.</DELETED>

<DELETED>    ``The Secretary may reserve not more than 5 percent of the 
funds appropriated for this part for any fiscal year for--</DELETED>
        <DELETED>    ``(1) peer review of applications;</DELETED>
        <DELETED>    ``(2) conducting the evaluation required under 
        section 260; and</DELETED>
        <DELETED>    ``(3) technical assistance.</DELETED>

<DELETED>``SEC. 262. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``There are authorized to be appropriated to carry out 
this part $37,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years.''.</DELETED>

            <DELETED>TITLE III--INSTITUTIONAL AID</DELETED>

<DELETED>SEC. 301. TRANSFERS AND REDESIGNATIONS.</DELETED>

<DELETED>    (a) In General.--Title III (20 U.S.C. 1051 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) by redesignating part D as part F;</DELETED>
        <DELETED>    (2) by redesignating sections 351, 352, 353, 354, 
        356, 357, 358, and 360 (20 U.S.C. 1066, 1067, 1068, 1069, 
        1069b, 1069c, 1069d, and 1069f) as sections 391, 392, 393, 394, 
        395, 396, 397, and 398, respectively;</DELETED>
        <DELETED>    (3) by transferring part B of title VII (20 U.S.C. 
        1132c et seq.) to title III to follow part C of title III (20 
        U.S.C. 1065 et seq.), and redesignating such part B as part 
        D;</DELETED>
        <DELETED>    (4) by redesignating sections 721 through 728 (20 
        U.S.C. 1132c and 1132c-7) as sections 341 through 348, 
        respectively;</DELETED>
        <DELETED>    (5) by transferring subparts 1 and 3 of part B of 
        title X (20 U.S.C. 1135b et seq. and 1135d et seq.) to title 
        III to follow part D of title III (as redesignated by paragraph 
        (3)), and redesignating such subpart 3 as subpart 2;</DELETED>
        <DELETED>    (6) by inserting after part D of title III (as 
        redesignated by paragraph (3)) the following:</DELETED>

  <DELETED>``PART E--MINORITY SCIENCE IMPROVEMENT PROGRAM'';</DELETED>

        <DELETED>    (7) by redesignating sections 1021 through 1024 
        (20 U.S.C. 1135b and 1135b-3), and sections 1041, 1042, 1043, 
        1044, 1046, and 1047 (20 U.S.C. 1135d, 1135d-1, 1135d-2, 1135d-
        3, 1135d-5, and 1135d-6) as sections 351 through 354, and 
        sections 361, 362, 363, 364, 365, and 366, respectively; 
        and</DELETED>
        <DELETED>    (8) by repealing section 366 (as redesignated by 
        paragraph (7)) (20 U.S.C. 1135d-6).</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 361 (as redesignated by 
subsection (a)(7)) (20 U.S.C. 1135d) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by inserting ``and'' after 
        the semicolon;</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``; and'' and 
        inserting a period; and</DELETED>
        <DELETED>    (3) by striking paragraph (3).</DELETED>
<DELETED>    (c) Cross References.--Title III (20 U.S.C. 1051 et seq.) 
is amended--</DELETED>
        <DELETED>    (1) in section 311(b) (20 U.S.C. 1057(b)), by 
        striking ``360(a)(1)'' and inserting ``398(a)(1)'';</DELETED>
        <DELETED>    (2) in section 312 (20 U.S.C. 1058)--</DELETED>
                <DELETED>    (A) in subsection (b)(1)(B), by striking 
                ``352(b)'' and inserting ``392(b)''; and</DELETED>
                <DELETED>    (B) in subsection (c)(2), by striking 
                ``352(a)'' and inserting ``392(a)'';</DELETED>
        <DELETED>    (3) in section 313(b) (20 U.S.C. 1059(b)), by 
        striking ``354(a)(1)'' and inserting ``394(a)(1)'';</DELETED>
        <DELETED>    (4) in section 342 (as redesignated by subsection 
        (a)(4)) (20 U.S.C. 1132c-1)--</DELETED>
                <DELETED>    (A) in paragraph (3), by striking 
                ``723(b)'' and inserting ``343(b)'';</DELETED>
                <DELETED>    (B) in paragraph (4), by striking ``723'' 
                and inserting ``343'';</DELETED>
                <DELETED>    (C) in the matter preceding subparagraph 
                (A) of paragraph (5), by striking ``724(b)'' and 
                inserting ``344(b)'';</DELETED>
                <DELETED>    (D) in paragraph (8), by striking 
                ``725(1)'' and inserting ``345(1)''; and</DELETED>
                <DELETED>    (E) in paragraph (9), by striking ``727'' 
                and inserting ``347'';</DELETED>
        <DELETED>    (5) in section 343 (as redesignated by subsection 
        (a)(4)) (20 U.S.C. 1132c-2)--</DELETED>
                <DELETED>    (A) in subsection (a), by striking ``724'' 
                and inserting ``344''; and</DELETED>
                <DELETED>    (B) in subsection (b)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        paragraph (1), by striking ``725(1) and 726'' 
                        and inserting ``345(1) and 346'';</DELETED>
                        <DELETED>    (ii) in paragraph (10), by 
                        striking ``724'' and inserting ``344''; 
                        and</DELETED>
                        <DELETED>    (iii) in subsection (d), by 
                        striking ``723(c)(1)'' and inserting 
                        ``343(c)(1)'';</DELETED>
        <DELETED>    (6) in section 345(2) (as redesignated by 
        subsection (a)(4)) (20 U.S.C. 1132c-4(2)), by striking ``723'' 
        and inserting ``343'';</DELETED>
        <DELETED>    (7) in section 348 (as redesignated by subsection 
        (a)(4)) (20 U.S.C. 1132c-7), by striking ``725(1)'' and 
        inserting ``345(1)'';</DELETED>
        <DELETED>    (8) in section 353(a) (as redesignated by 
        subsection (a)(7)) (20 U.S.C. 1135b-2(a))--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking 
                ``1046(6)'' and inserting ``365(6)'';</DELETED>
                <DELETED>    (B) in paragraph (2), by striking 
                ``1046(7)'' and inserting ``365(7)'';</DELETED>
                <DELETED>    (C) in paragraph (3), by striking 
                ``1046(8)'' and inserting ``365(8)''; and</DELETED>
                <DELETED>    (D) in paragraph (4), by striking 
                ``1046(9)'' and inserting ``365(9)'';</DELETED>
        <DELETED>    (9) in section 361(1) (as redesignated by 
        subsection (a)(7)) (20 U.S.C. 1135d(1)), by striking 
        ``1046(3)'' and inserting ``365(3)'';</DELETED>
        <DELETED>    (10) in section 362(a) (as redesignated by 
        subsection (a)(7)) (20 U.S.C. 1135d-1(a))--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph (1), 
                by striking ``1041'' and inserting ``361''; 
                and</DELETED>
                <DELETED>    (B) in paragraph (1), by striking 
                ``1021(b)'' and inserting ``351(b)''; and</DELETED>
        <DELETED>    (11) in section 391(b)(6) (as redesignated by 
        subsection (a)(2)), by striking ``357'' and inserting 
        ``396''.</DELETED>

<DELETED>SEC. 302. FINDINGS.</DELETED>

<DELETED>    Section 301(a) (20 U.S.C. 1051(a)) is amended--</DELETED>
        <DELETED>    (1) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively; and</DELETED>
        <DELETED>    (2) by inserting after paragraph (2) the 
        following:</DELETED>
        <DELETED>    ``(3) in order to be competitive and provide a 
        high-quality education for all, institutions of higher 
        education should improve their technological capacity and make 
        effective use of technology;''.</DELETED>

<DELETED>SEC. 303. STRENGTHENING INSTITUTIONS.</DELETED>

<DELETED>    (a) Grants.--Section 311 (20 U.S.C. 1057) is amended--
</DELETED>
        <DELETED>    (1) in subsection (b)(3)(D), by inserting ``, 
        including high technology equipment,'' after ``equipment''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(c) Endowment Fund.--</DELETED>
        <DELETED>    ``(1) In general.--An eligible institution may use 
        not more than 20 percent of the grant funds provided under this 
        part to establish or increase an endowment fund at such 
        institution.</DELETED>
        <DELETED>    ``(2) Matching requirement.--In order to be 
        eligible to use grant funds in accordance with paragraph (1), 
        the eligible institution shall provide matching funds, in an 
        amount equal to the Federal funds used in accordance with 
        paragraph (1), for the establishment or increase of the 
        endowment fund.</DELETED>
        <DELETED>    ``(3) Comparability.--The provisions of part C, 
        regarding the establishment or increase of an endowment fund, 
        that the Secretary determines are not inconsistent with this 
        subsection, shall apply to funds used under paragraph 
        (1).''.</DELETED>
<DELETED>    (b) Duration of Grant.--Section 313 (20 U.S.C. 1059) is 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(d) Wait-Out-Period.--Each eligible institution that 
received a grant under this part for a 5-year period shall not be 
eligible to receive an additional grant under this part until 2 years 
after the date on which the 5-year grant period 
terminates.''.</DELETED>
<DELETED>    (c) Hispanic-Serving Institutions.--Section 316 (20 U.S.C. 
1059c) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(1), by amending subparagraph 
        (C) to read as follows:</DELETED>
                <DELETED>    ``(C) provides assurances that not less 
                than 50 percent of the institution's Hispanic students 
                are low-income individuals who are first generation 
                college students;'';</DELETED>
        <DELETED>    (2) in subsection (c), by adding at the end the 
        following:</DELETED>
        <DELETED>    ``(3) Endowment fund.--</DELETED>
                <DELETED>    ``(A) In general.--A Hispanic-serving 
                institution may use not more than 20 percent of the 
                grant funds provided under this part to establish or 
                increase an endowment fund at the 
                institution.</DELETED>
                <DELETED>    ``(B) Matching requirement.--In order to 
                be eligible to use grant funds in accordance with 
                subparagraph (A), the Hispanic-serving institution 
                shall provide matching funds, in an amount equal to the 
                Federal funds used in accordance with paragraph (1), 
                for the establishment or increase of the endowment 
                fund.</DELETED>
                <DELETED>    ``(C) Comparability.--The provisions of 
                part C regarding the establishment or increase of an 
                endowment fund, that the Secretary determines are not 
                inconsistent with this paragraph, shall apply to funds 
                used under subparagraph (A).''; and</DELETED>
        <DELETED>    (3) in subsection (d)(3)--</DELETED>
                <DELETED>    (A) by inserting ``or community-based 
                organization'' after ``educational agency''; 
                and</DELETED>
                <DELETED>    (B) by inserting ``or organization'' after 
                ``such agency''.</DELETED>

<DELETED>SEC. 304. STRENGTHENING HBCU'S.</DELETED>

<DELETED>    (a) Grants.--Section 323 (20 U.S.C. 1062) is amended--
</DELETED>
        <DELETED>    (1) by redesignating subsection (b) as subsection 
        (c); and</DELETED>
        <DELETED>    (2) by inserting after subsection (a) the 
        following:</DELETED>
<DELETED>    ``(b) Endowment Fund.--</DELETED>
        <DELETED>    ``(1) In general.--An institution may use not more 
        than 20 percent of the grant funds provided under this part to 
        establish or increase an endowment fund at the 
        institution.</DELETED>
        <DELETED>    ``(2) Matching requirement.--In order to be 
        eligible to use grant funds in accordance with paragraph (1), 
        the eligible institution shall provide matching funds, in an 
        amount equal to the Federal funds used in accordance with 
        paragraph (1), for the establishment or increase of the 
        endowment fund.</DELETED>
        <DELETED>    ``(3) Comparability.--The provisions of part C 
        regarding the establishment or increase of an endowment fund, 
        that the Secretary determines are not inconsistent with this 
        subsection, shall apply to funds used under paragraph 
        (1).''.</DELETED>
<DELETED>    (b) Professional or Graduate Institutions.--Section 326 
(20 U.S.C. 1063b) is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by adding at the end of 
        paragraph (2) the following: ``If a grant of less than $500,000 
        is made under this section, matching funds provided from non-
        Federal sources are not required. If a grant equal to or in 
        excess of $500,000 is made under this section, matching funds 
        provided from non-Federal sources are required only with 
        respect to the amount of the grant that exceeds $500,000.''; 
        and</DELETED>
        <DELETED>    (2) in subsection (e)(1)--</DELETED>
                <DELETED>    (A) in subparagraph (E), by inserting ``, 
                and any Tuskegee University qualified graduate 
                program'' before the semicolon;</DELETED>
                <DELETED>    (B) in subparagraph (F), by inserting ``, 
                and any Xavier University qualified graduate program'' 
                before the semicolon;</DELETED>
                <DELETED>    (C) in subparagraph (G), by inserting ``, 
                and any Southern University qualified graduate 
                program'' before the semicolon;</DELETED>
                <DELETED>    (D) in subparagraph (H), by inserting ``, 
                and any Texas Southern University qualified graduate 
                program'' before the semicolon;</DELETED>
                <DELETED>    (E) in subparagraph (I), by inserting ``, 
                and any Florida A&M University qualified graduate 
                program'' before the semicolon; and</DELETED>
                <DELETED>    (F) in subparagraph (J), by inserting ``, 
                and any North Carolina Central University qualified 
                graduate program'' before the semicolon.</DELETED>

<DELETED>SEC. 305. ENDOWMENT CHALLENGE GRANTS.</DELETED>

<DELETED>    Paragraph (2) of section 331(b) (20 U.S.C. 1065(b)) is 
amended by striking subparagraphs (B) and (C) and inserting the 
following:</DELETED>
<DELETED>    ``(B) The Secretary may make a grant under this part to an 
eligible institution in any fiscal year in which the amount 
appropriated to carry out this part is less than $15,000,000, if the 
institution--</DELETED>
        <DELETED>    ``(i) applies for a grant in an amount not 
        exceeding $500,000; and</DELETED>
        <DELETED>    ``(ii) has deposited in its endowment fund 
        established under this section an amount which is equal to 
        </DELETED>\<DELETED>1/2</DELETED>\ <DELETED>of the amount of 
        such grant.</DELETED>
<DELETED>    ``(C) An eligible institution of higher education that is 
awarded a grant under subparagraph (B) shall not be eligible to receive 
an additional grant under subparagraph (B) until 10 years after the 
date on which the grant period terminates.''.</DELETED>

<DELETED>SEC. 306. HBCU CAPITAL FINANCING.</DELETED>

<DELETED>    (a) Definition.--Section 342(5) (as redesignated by 
section 301(a)(4)) (20 U.S.C. 1132c-1(5)) is amended--</DELETED>
        <DELETED>    (1) by redesignating subparagraphs (B), (C), and 
        (D) as subparagraphs (C), (F), and (G);</DELETED>
        <DELETED>    (2) by inserting after subparagraph (A) the 
        following:</DELETED>
                <DELETED>    ``(B) a facility for the administration of 
                an educational program, or a student center or student 
                union, except that not more than 5 percent of the loan 
                proceeds provided under this part may be used for the 
                facility, center or union if the facility, center or 
                union is owned, leased, managed, or operated by a 
                private business, that, in return for such use, makes a 
                payment to the eligible institution;'';</DELETED>
        <DELETED>    (3) by inserting after subparagraph (C) (as 
        redesignated by paragraph (1)) the following:</DELETED>
                <DELETED>    ``(D) a maintenance, storage, or utility 
                facility that is essential to the operation of a 
                facility, a library, a dormitory, equipment, 
                instrumentation, a fixture, real property or an 
                interest therein, described in this 
                paragraph;</DELETED>
                <DELETED>    ``(E) a facility designed to provide 
                primarily outpatient health care for students or 
                faculty;''; and</DELETED>
        <DELETED>    (4) in subparagraph (G) (as redesignated by 
        paragraph (2)), by striking ``(C)'' and inserting 
        ``(F)''.</DELETED>
<DELETED>    (b) Full Faith and Credit.--Section 343 (as redesignated 
by section 301(a)(4)) (20 U.S.C. 1132c-2) is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(e) Notwithstanding any other provision of law, the 
Secretary may sell a qualified bond guaranteed under this part to any 
party that offers terms that the Secretary determines are in the best 
interest of the eligible institution.''.</DELETED>

<DELETED>SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT 
              PROGRAM.</DELETED>

<DELETED>    Section 365(4) (as redesignated by section 301(a)(7)) (20 
U.S.C. 1135d-5(4)) is amended by inserting ``behavioral,'' after 
``physical,''.</DELETED>

<DELETED>SEC. 308. GENERAL PROVISIONS.</DELETED>

<DELETED>    (a) Applications.--Paragraph (1) of section 391(b) (as 
redesignated by section 301(a)(2)) (20 U.S.C. 1066(b)) is amended by 
inserting ``, D or E'' after ``part C''.</DELETED>
<DELETED>    (b) Application Review Process.--Section 393 (as 
redesignated by section 301(a)(2)) (20 U.S.C. 1068) is amended by 
adding at the end the following:</DELETED>
<DELETED>    ``(d) Exclusion.--The provisions of this section shall not 
apply to applications submitted under part D.''.</DELETED>
<DELETED>    (c) Waivers.--Paragraph (2) of section 395(b) (as 
redesignated by section 301(a)(2)) (20 U.S.C. 1069b(b)) is amended by 
striking ``title II, IV, VII, or VIII'' and inserting ``part D, title 
IV, or title VIII''.</DELETED>
<DELETED>    (d) Authorization of Appropriations.--Section 398(a) (as 
redesignated by section 301(a)(2)) (20 U.S.C. 1069f) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``1993'' and inserting ``1999''; and</DELETED>
                <DELETED>    (B) in subparagraph (B)--</DELETED>
                        <DELETED>    (i) in clause (i), by striking 
                        ``1993'' and inserting ``1999'';</DELETED>
                        <DELETED>    (ii) by striking clause (ii); 
                        and</DELETED>
                        <DELETED>    (iii) by striking ``(B)(i) There'' 
                        and inserting ``(B) There'';</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``1993'' and inserting ``1999''; and</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking 
                ``$20,000,000 for fiscal year 1993'' and inserting 
                ``$30,000,000 for fiscal year 1999'';</DELETED>
        <DELETED>    (3) in paragraph (3), by striking ``$50,000,000 
        for fiscal year 1993'' and inserting ``$10,000,000 for fiscal 
        year 1999''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
        <DELETED>    ``(4) Part d.--There are authorized to be 
        appropriated to carry out part D, $110,000 for fiscal year 
        1999, and such sums as may be necessary for each of the 4 
        succeeding fiscal years.</DELETED>
        <DELETED>    ``(5) Part e.--There are authorized to be 
        appropriated to carry out part E, $10,000,000 for fiscal year 
        1999, and such sums as may be necessary for each of the 4 
        succeeding fiscal years.''.</DELETED>

            <DELETED>TITLE IV--STUDENT ASSISTANCE</DELETED>

 <DELETED>PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF 
                       HIGHER EDUCATION</DELETED>

<DELETED>SEC. 411. REPEALS AND REDESIGNATIONS.</DELETED>

<DELETED>    Title IV (20 U.S.C. 1070 et seq.) is amended--</DELETED>
        <DELETED>    (1) in part A (20 U.S.C. 1070 et seq.)--</DELETED>
                <DELETED>    (A) in subpart 2 (20 U.S.C. 1070a-11), by 
                repealing chapters 3 through 8 (20 U.S.C. 1070a-31 et 
                seq. and 1070a-81 et seq.); and</DELETED>
                <DELETED>    (B) by repealing subpart 8 (20 U.S.C. 
                1070f); and</DELETED>
        <DELETED>    (2) in part H (20 U.S.C. 1099a et seq.)--
        </DELETED>
                <DELETED>    (A) by repealing subpart 1 (20 U.S.C. 
                1099a et seq.); and</DELETED>
                <DELETED>    (B) by redesignating subparts 2 and 3 (20 
                U.S.C. 1099b et seq. and 1099c et seq.) as subparts 1 
                and 2, respectively.</DELETED>

<DELETED>SEC. 412. FEDERAL PELL GRANTS.</DELETED>

<DELETED>    (a) Amendment to Subpart Heading.--The heading for subpart 
1 of part A of title IV (20 U.S.C. 1070a et seq.) is amended by 
striking ``Basic Educational Opportunity Grants'' and inserting 
``Federal Pell Grants''.</DELETED>
<DELETED>    (b) Federal Pell Grants.--Section 401 (20 U.S.C. 1070a) is 
amended--</DELETED>
        <DELETED>    (1) in the section heading, by striking ``basic 
        educational opportunity grants'' and inserting ``federal pell 
        grants'';</DELETED>
        <DELETED>    (2) in subsection (a)(1)--</DELETED>
                <DELETED>    (A) in the first sentence, by striking 
                ``shall, during the period beginning July 1, 1972, and 
                ending September 30, 1998,'' and inserting ``, for each 
                fiscal year through fiscal year 2004, shall''; 
                and</DELETED>
                <DELETED>    (B) in the second sentence, by inserting 
                ``until such time as the Secretary determines and 
                publishes in the Federal Register with an opportunity 
                for comment, an alternative payment system that 
                provides payments to institutions in an accurate and 
                timely manner,'' after ``pay eligible 
                students'';</DELETED>
        <DELETED>    (3) in subsection (b)--</DELETED>
                <DELETED>    (A) in paragraph (2)(A), by striking 
                clauses (i) through (v), and inserting the 
                following:</DELETED>
                        <DELETED>    ``(i) $5,000 for academic year 
                        1999-2000;</DELETED>
                        <DELETED>    ``(ii) $5,200 for academic year 
                        2000-2001;</DELETED>
                        <DELETED>    ``(iii) $5,400 for academic year 
                        2001-2002;</DELETED>
                        <DELETED>    ``(iv) $5,600 for academic year 
                        2002-2003; and</DELETED>
                        <DELETED>    ``(v) $5,800 for academic year 
                        2003-2004.'';</DELETED>
                <DELETED>    (B) by amending paragraph (3) to read as 
                follows:</DELETED>
        <DELETED>    ``(3) For any academic year for which an 
        appropriation Act provides a maximum basic grant in an amount 
        in excess of $2,400, the amount of a student's basic grant 
        shall equal $2,400 plus--</DELETED>
                <DELETED>    ``(A) one-half of the amount by which such 
                maximum basic grant exceeds $2,400; plus</DELETED>
                <DELETED>    ``(B) the lesser of--</DELETED>
                        <DELETED>    ``(i) the remaining one-half of 
                        such excess; or</DELETED>
                        <DELETED>    ``(ii) the sum of the student's 
                        tuition, fees, and if the student has dependent 
                        care expenses (as described in section 472(8) 
                        or disability-related expenses (as described in 
                        section 472(9)), an allowance determined by the 
                        institution for such expenses.''; and</DELETED>
                <DELETED>    (C) in paragraph (5), by striking ``$400, 
                except'' and all that follows through ``grant of $400'' 
                and insert ``$200''; and</DELETED>
        <DELETED>    (4) in subsection (c)--</DELETED>
                <DELETED>    (A) by amending paragraph (1) to read as 
                follows: ``(1)(A) Except as provided in subparagraph 
                (B), the period during which a student may receive a 
                basic grant shall be the period, required for the 
                completion of the first undergraduate baccalaureate 
                course of study pursued by the student at the 
                institution at which the student is in attendance, that 
                does not exceed 150 percent of the period normally 
                required by a full-time student (or the equivalent 
                period, in the case of a part-time student) to complete 
                the course of study at the institution, as determined 
                by the institution.</DELETED>
                <DELETED>    ``(B) A student may receive basic grants 
                under this subpart for a period that exceeds the period 
                described in subparagraph (A) to the extent the 
                institution in which the student is enrolled determines 
                necessary to accommodate the rights of students with 
                disabilities under section 504 of the Rehabilitation 
                Act of 1973.''; and</DELETED>
                <DELETED>    (B) in paragraph (2)--</DELETED>
                        <DELETED>    (i) by striking ``Nothing'' and 
                        inserting ``(A) Except as provided in 
                        subparagraph (B), nothing'';</DELETED>
                        <DELETED>    (ii) by striking ``or, in the 
                        case'' and all that follows through ``or 
                        skills''; and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
                <DELETED>    ``(B)(i) A student may receive a basic 
                grant to attend English language instruction that is a 
                separate course of instruction only if--</DELETED>
                        <DELETED>    ``(I) students enrolled in such a 
                        course are required to take an independently 
                        administered standardized test of English 
                        language proficiency upon completion of the 
                        course; and</DELETED>
                        <DELETED>    ``(II) not less than a minimum 
                        percentage of such students achieve a passing 
                        score on that test.</DELETED>
                <DELETED>    ``(ii) The Secretary shall promulgate 
                regulations that specify 1 or more standardized tests 
                of English proficiency, the minimum percentage of 
                students who must achieve a passing score on the tests, 
                and such other requirements as the Secretary determines 
                are necessary to implement clause (i).''.</DELETED>

<DELETED>SEC. 413. TRIO PROGRAMS.</DELETED>

<DELETED>    (a) Program Authority.--Section 402A (20 U.S.C. 1070a-11) 
is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(3)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``$170,000 for fiscal year 1993'' and inserting 
                ``$190,000 for each fiscal year'';</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking 
                ``$180,000 for fiscal year 1994'' and inserting 
                ``$200,000 for each fiscal year''; and</DELETED>
                <DELETED>    (C) in subparagraph (C), by striking 
                ``$190,000 for fiscal year 1995'' and inserting 
                ``$210,000 for each fiscal year'';</DELETED>
        <DELETED>    (2) in subsection (c)(6), by amending the last 
        sentence to read as follows: ``The Secretary shall permit a 
        Director of a program assisted under this chapter to also 
        administer 1 or more additional programs for disadvantaged 
        students operated by the sponsoring entity regardless of the 
        funding source of such additional program.''; and</DELETED>
        <DELETED>    (3) in subsection (f), by striking ``$650,000,000 
        for fiscal year 1993'' and inserting ``$700,000,000 for fiscal 
        year 1999''.</DELETED>
<DELETED>    (b) Talent Search.--Section 402B(b)(5) (20 U.S.C. 1070a-
12(b)(5)) is amended by inserting ``, or activities designed to 
acquaint individuals from disadvantaged backgrounds with careers in 
which the individuals are particularly underrepresented'' before the 
semicolon.</DELETED>
<DELETED>    (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is 
amended--</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) in paragraph (9), by striking ``and'' 
                after the semicolon;</DELETED>
                <DELETED>    (B) by redesignating paragraph (10) as 
                paragraph (11);</DELETED>
                <DELETED>    (C) by inserting after paragraph (9) the 
                following:</DELETED>
        <DELETED>    ``(10) work-study positions where youth 
        participating in the project are exposed to careers requiring a 
        postsecondary degree; and''; and</DELETED>
                <DELETED>    (D) in paragraph (11) (as redesignated by 
                subparagraph (B)), by striking ``(9)'' and inserting 
                ``(10)''; and</DELETED>
        <DELETED>    (2) in subsection (e), by striking ``and not in 
        excess of $40 per month during the remaining period of the 
        year.'' and inserting ``except that youth participating in a 
        work-study position under subsection (b)(10) may be paid a 
        stipend of $300 per month during June, July, and August. Youths 
        participating in a project proposed to be carried out under any 
        application may be paid stipends not in excess of $40 per month 
        during the remaining period of the year.''.</DELETED>
<DELETED>    (d) Student Support Services.--Paragraph (6) of section 
402D(c) (20 U.S.C. 1070a-14(c)(6)) is amended to read as 
follows:</DELETED>
        <DELETED>    ``(6) consider, in addition to such other criteria 
        as the Secretary may prescribe, the institution's effort, and 
        where applicable past history, in--</DELETED>
                <DELETED>    ``(A) providing sufficient financial 
                assistance to meet the full financial need of each 
                student at the institution; and</DELETED>
                <DELETED>    ``(B) maintaining the loan burden of each 
                such student at a manageable level.''.</DELETED>
<DELETED>    (e) Evaluation and Dissemination.--Section 402H (20 U.S.C. 
1070a-18) is amended to read as follows:</DELETED>

<DELETED>``SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT 
              AND DISSEMINATION PARTNERSHIP PROJECTS.</DELETED>

<DELETED>    ``(a) Evaluations.--</DELETED>
        <DELETED>    ``(1) In general.--For the purpose of improving 
        the effectiveness of the programs and projects assisted under 
        this subpart, the Secretary may make grants to or enter into 
        contracts with institutions of higher education and other 
        public and private institutions and organizations to evaluate 
        the effectiveness of the programs and projects assisted under 
        this subpart.</DELETED>
        <DELETED>    ``(2) Practices.--The evaluations described in 
        paragraph (1) shall identify institutional, community, and 
        program or project practices that are particularly effective in 
        enhancing the access of low-income individuals and first-
        generation college students to postsecondary education, the 
        preparation of the individuals and students for postsecondary 
        education, and the success of the individuals and students in 
        postsecondary education.</DELETED>
<DELETED>    ``(b) Grants.--The Secretary may award grants to 
institutions of higher education or other private and public 
institutions and organizations, that are carrying out a program or 
project assisted under this subpart prior to the date of enactment of 
the Higher Education Amendments of 1998, to enable the institutions and 
organizations to expand and leverage the success of such programs or 
projects by working in partnership with other institutions, community-
based organizations, or combinations of such institutions and 
organizations, that are not receiving assistance under this subpart and 
are serving low-income students and first generation college students, 
in order to--</DELETED>
        <DELETED>    ``(1) disseminate and replicate best practices of 
        programs or projects assisted under this subpart; and</DELETED>
        <DELETED>    ``(2) provide technical assistance regarding 
        programs and projects assisted under this subpart.</DELETED>
<DELETED>    ``(c) Results.--In order to improve overall program or 
project effectiveness, the results of evaluations and grants described 
in this section shall be disseminated by the Secretary to similar 
programs or projects assisted under this subpart, as well as other 
individuals concerned with postsecondary access for and retention of 
low-income individuals and first-generation college 
students.''.</DELETED>

<DELETED>SEC. 414. NATIONAL EARLY INTERVENTION SCHOLARSHIP AND 
              PARTNERSHIP PROGRAM.</DELETED>

<DELETED>    Section 404G (20 U.S.C. 1070a-27) is amended by striking 
``1993'' and inserting ``1999''.</DELETED>

<DELETED>SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY 
              GRANTS.</DELETED>

<DELETED>    (a) Authorization of Appropriations.--Section 413A(b) (20 
U.S.C. 1070b) is amended by striking ``$675,000,000 for fiscal year 
1993'' and inserting ``$700,000,000 for fiscal year 1999''.</DELETED>
<DELETED>    (b) Use of Funds for Less-Than-Full-Time Students.--
Subsection (d) of section 413C (20 U.S.C. 1070b-2) is amended to read 
as follows:</DELETED>
<DELETED>    ``(d) Use of Funds for Less-Than-Full-Time Students.--If 
the institution's allocation under this subpart is directly or 
indirectly based in part on the financial need demonstrated by students 
who are independent students or attending the institution on less than 
a full-time basis, a reasonable proportion of the allocation shall be 
made available to such students.''.</DELETED>
<DELETED>    (c) Carryover, Carryback, and Reallocation.--Subpart 3 of 
part A of title IV (20 U.S.C. 1070b et seq.) is amended by adding at 
the end the following:</DELETED>

<DELETED>``SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCATION.</DELETED>

<DELETED>    ``(a) Carryover Authority.--Of the sums made available to 
an eligible institution under this subpart for a fiscal year, not more 
than 10 percent may, at the discretion of the institution, remain 
available for expenditure during the succeeding fiscal year to carry 
out the program under this subpart.</DELETED>
<DELETED>    ``(b) Carryback Authority.--Of the sums made available to 
an eligible institution under this subpart for a fiscal year, not more 
than 10 percent may, at the discretion of the institution, be used by 
the institution for expenditure for the fiscal year preceding the 
fiscal year for which the sums were appropriated.</DELETED>
<DELETED>    ``(c) Reallocation.--Any of the sums made available to an 
eligible institution under this subpart for a fiscal year that are not 
needed by the institution to award supplemental grants during that 
fiscal year, that the institution does not wish to use during the 
succeeding fiscal year as authorized in subsection (a), and that the 
institution does not wish to use for the preceding fiscal year as 
authorized in subsection (b), shall be made available to the Secretary 
for reallocation under section 413D(e) until the end of the second 
fiscal year after the fiscal year for which such sums were 
appropriated.''.</DELETED>

<DELETED>SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP 
              PROGRAM.</DELETED>

<DELETED>    (a) Authorization of Appropriations.--Section 415A(b) (20 
U.S.C. 1070c(b)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``1993'' and 
        inserting ``1999'';</DELETED>
        <DELETED>    (2) by redesignating paragraph (2) as paragraph 
        (3); and</DELETED>
        <DELETED>    (3) by inserting after paragraph (1) the 
        following:</DELETED>
        <DELETED>    ``(2) Reservation.--For any fiscal year for which 
        the amount appropriated under paragraph (1) exceeds 
        $35,000,000, the excess shall be available to carry out section 
        415E.''.</DELETED>
<DELETED>    (b) Special Leveraging Educational Assistance Partnership 
Program.--Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is 
amended--</DELETED>
        <DELETED>    (1) by redesignating section 415E as 
        415F;</DELETED>
        <DELETED>    (2) by inserting after section 415D the 
        following:</DELETED>

<DELETED>``SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE 
              PARTNERSHIP PROGRAM.</DELETED>

<DELETED>    ``(a) In General.--From amounts reserved under section 
415A(b)(2) for each fiscal year, the Secretary shall--</DELETED>
        <DELETED>    ``(1) make allotments among States in the same 
        manner as the Secretary makes allotments among States under 
        section 415B; and</DELETED>
        <DELETED>    ``(2) award grants to States, from allotments 
        under paragraph (1), to enable the States to pay the Federal 
        share of the cost of the authorized activities described in 
        subsection (c).</DELETED>
<DELETED>    ``(b) Applicability Rule.--The provisions of this subpart 
which are not inconsistent with this section shall apply to the program 
authorized by this section.</DELETED>
<DELETED>    ``(c) Authorized Activities.--Each State receiving a grant 
under this section may use the grant funds for--</DELETED>
        <DELETED>    ``(1) increasing the dollar amount of grants 
        awarded under section 415B to eligible students who demonstrate 
        financial need;</DELETED>
        <DELETED>    ``(2) carrying out transition programs from 
        secondary school to postsecondary education for eligible 
        students who demonstrate financial need;</DELETED>
        <DELETED>    ``(3) making funds available for community service 
        work-study activities for eligible students who demonstrate 
        financial need;</DELETED>
        <DELETED>    ``(4) creating a postsecondary scholarship program 
        for eligible students who demonstrate financial need and wish 
        to enter teaching;</DELETED>
        <DELETED>    ``(5) creating a scholarship program for eligible 
        students who demonstrate financial need and wish to enter a 
        program of study leading to a degree in mathematics, computer 
        science, or engineering;</DELETED>
        <DELETED>    ``(6) carrying out early intervention programs, 
        mentoring programs, and career education programs for eligible 
        students who demonstrate financial need; and</DELETED>
        <DELETED>    ``(7) awarding merit or academic scholarships to 
        eligible students who demonstrate financial need.</DELETED>
<DELETED>    ``(d) Maintenance of Effort Requirement.--Each State 
receiving a grant under this section for a fiscal year shall provide 
the Secretary an assurance that the aggregate amount expended per 
student or the aggregate expenditures by the State, from funds derived 
from non-Federal sources, for the authorized activities described in 
subsection (c) for the preceding fiscal year were not less than the 
amount expended per student or the aggregate expenditures by the State 
for the activities for the second preceding fiscal year.</DELETED>
<DELETED>    ``(e) Federal Share.--The Federal share of the cost of the 
authorized activities described in subsection (c) for any fiscal year 
shall be 33</DELETED>\<DELETED>1/3</DELETED>\ <DELETED>percent.''; 
and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>

<DELETED>``SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE 
              AGREEMENTS.</DELETED>

<DELETED>    ``(a) In General.--Any State that desires to receive 
assistance under this subpart shall enter into an agreement with the 
Secretary pursuant to subsection (b) setting forth the terms and 
conditions for the relationship between the Federal Government and that 
State for the purposes set forth under this subpart.</DELETED>
<DELETED>    ``(b) Contents.--</DELETED>
        <DELETED>    ``(1) In general.--Such agreement shall consist of 
        assurances by the State, including a description of the means 
        to be used by the State to fulfill the assurances, that--
        </DELETED>
                <DELETED>    ``(A) the State will provide for such 
                methods of administration as are necessary for the 
                proper and efficient administration of the program 
                under this subpart in keeping with the purposes set 
                forth under this subpart;</DELETED>
                <DELETED>    ``(B) the State will provide for such 
                fiscal control and fund accounting procedures as may be 
                necessary to ensure proper disbursement of, and 
                accounting for, Federal funds paid to the State under 
                this subpart;</DELETED>
                <DELETED>    ``(C) the State will follow policies and 
                practices of administration that will ensure that non-
                Federal funds will not be supplanted by Federal funds, 
                and that equitable and appropriate criteria will be 
                used in evaluation of applications or proposals for 
                grants under this subpart; and</DELETED>
                <DELETED>    ``(D) the State has a comprehensive 
                planning or policy formulation process that--</DELETED>
                        <DELETED>    ``(i) considers the relation 
                        between State administration of the program 
                        under this subpart, and administration of 
                        similar State programs or processes;</DELETED>
                        <DELETED>    ``(ii) encourages State policies 
                        designed to consider effects on declining 
                        enrollments on all sectors of postsecondary 
                        education in the State;</DELETED>
                        <DELETED>    ``(iii) considers the 
                        postsecondary education needs of unserved and 
                        underserved individuals within the State, 
                        including individuals beyond the traditional 
                        college age;</DELETED>
                        <DELETED>    ``(iv) considers the resources of 
                        institutions, organizations, or agencies (both 
                        public and private) within the State capable of 
                        providing postsecondary educational 
                        opportunities in the State; and</DELETED>
                        <DELETED>    ``(v) provides for direct, 
                        equitable, and active participation in the 
                        comprehensive planning or policy formulation 
                        process or processes of representatives of 
                        institutions of higher education (including 
                        community colleges, proprietary institutions, 
                        and independent colleges and universities), 
                        students, other providers of postsecondary 
                        education services, and the general public in 
                        the State.</DELETED>
        <DELETED>    ``(2) Special rule.--Participation under paragraph 
        (1)(D)(v) shall, consistent with State law, be achieved through 
        membership on State planning commissions, State advisory 
        councils, or other State entities established by the State to 
conduct federally assisted comprehensive planning or policy 
formulation.</DELETED>
<DELETED>    ``(c) Special Rule.--The information and assurances 
provided by a State in accordance with subparagraphs (A), (B), and (C) 
of subsection (b)(1), and regulations issued by the Secretary related 
directly to such assurances, shall be satisfactory for the purposes of, 
and shall be considered in lieu of, any comparable requirements for 
information and assurances in any program under this subpart.</DELETED>
<DELETED>    ``(d) Agreement Duration; Compliance.--</DELETED>
        <DELETED>    ``(1) Agreement duration.--An agreement of a State 
        shall remain in effect subject to modification as changes in 
        information or circumstances require.</DELETED>
        <DELETED>    ``(2) Compliance.--Whenever the Secretary, after 
        reasonable notice and opportunity for a hearing has been given 
        to the State, finds that there is a failure to comply 
        substantially with the assurances required in subparagraph (A), 
        (B), or (C) of subsection (b)(1), the Secretary shall notify 
        the State that the State is no longer eligible to participate 
        in the program under this subpart until the Secretary is 
        satisfied that there is no longer any such failure to 
        comply.</DELETED>
<DELETED>    ``(e) Special Rules.--</DELETED>
        <DELETED>    ``(1) Entities entering into agreements.--For the 
        purpose of this section, the selection of the State entity or 
        entities authorized to act on behalf of the State for the 
        purpose of entering into an agreement with the Secretary shall 
        be in accordance with the State law of each individual State 
        with respect to the authority to make legal agreements between 
        the State and the Federal Government.</DELETED>
        <DELETED>    ``(2) Construction.--</DELETED>
                <DELETED>    ``(A) State structure.--Nothing in this 
                section shall be construed to authorize the Secretary 
                to require any State to adopt, as a condition for 
                entering into an agreement, or for participation in a 
                program under this subpart, a specific State 
                organizational structure for achieving participation in 
                the planning, or administration of programs, or for 
                statewide planning, coordination, governing, 
                regulating, or administering of postsecondary education 
                agencies, institutions, or programs in the 
                State.</DELETED>
                <DELETED>    ``(B) State authority.--Nothing in this 
                section shall be construed as a limitation on the 
                authority of any State to adopt a State organizational 
                structure for postsecondary education agencies, 
                institutions, or programs that is appropriate to the 
                needs, traditions, and circumstances of that State, or 
                as a limitation on the authority of a State entering 
                into an agreement pursuant to this section to modify 
                the State organizational structure at any time 
                subsequent to entering into such an 
                agreement.''.</DELETED>
<DELETED>    (c) Technical and Conforming Amendments.--</DELETED>
        <DELETED>    (1) Purpose.--Subsection (a) of section 415A (20 
        U.S.C. 1070c(a)) is amended to read as follows:</DELETED>
<DELETED>    ``(a) Purpose of Subpart.--It is the purpose of this 
subpart to make incentive grants available to States to assist States 
in--</DELETED>
        <DELETED>    ``(1) providing grants to--</DELETED>
                <DELETED>    ``(A) eligible students attending 
                institutions of higher education or participating in 
                programs of study abroad that are approved for credit 
                by institutions of higher education at which such 
                students are enrolled; and</DELETED>
                <DELETED>    ``(B) eligible students for campus-based 
                community service work-study; and</DELETED>
        <DELETED>    ``(2) carrying out the activities described in 
        section 415F.''.</DELETED>
        <DELETED>    (2) Allotment.--Section 415B(a)(1) (20 U.S.C. 
        1070c-1(a)(1)) is amended by inserting ``and not reserved under 
        section 415A(b)(2)'' after ``415A(b)(1)''.</DELETED>

<DELETED>SEC. 417. HEP AND CAMP.</DELETED>

<DELETED>    Section 418A(g) (20 U.S.C. 1070d-2(g)) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``$15,000,000 
        for fiscal year 1993'' and inserting ``$25,000,000 for fiscal 
        year 1999''; and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``$5,000,000 for 
        fiscal year 1993'' and inserting ``$10,000,000 for fiscal year 
        1999''.</DELETED>

<DELETED>SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.</DELETED>

<DELETED>    Section 419K (20 U.S.C. 1070d-41) is amended by striking 
``$10,000,000 for fiscal year 1993'' and inserting ``$45,000,000 for 
fiscal year 1999''.</DELETED>

<DELETED>SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.</DELETED>

<DELETED>    Part A of title IV (20 U.S.C. 1070 et seq.) is amended by 
inserting after subpart 6 (20 U.S.C. 1070d-31 et seq.) the 
following:</DELETED>

       <DELETED>``Subpart 7--Child Care Access Means Parents in 
                            School</DELETED>

<DELETED>``SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN 
              SCHOOL.</DELETED>

<DELETED>    ``(a) Purpose.--The purpose of this section is to support 
the participation of low-income parents in postsecondary education 
through the provision of campus-based child care services.</DELETED>
<DELETED>    ``(b) Program Authorized.--</DELETED>
        <DELETED>    ``(1) Authority.--The Secretary may award grants 
        to institutions of higher education to assist the institutions 
        in providing campus-based child care services to low-income 
        students.</DELETED>
        <DELETED>    ``(2) Amount of grants.--</DELETED>
                <DELETED>    ``(A) In general.--The amount of a grant 
                awarded to an institution of higher education under 
                this section for a fiscal year shall not exceed 1 
                percent of the total amount of all Federal Pell Grant 
                funds awarded to students enrolled at the institution 
                of higher education for the preceding fiscal 
                year.</DELETED>
                <DELETED>    ``(B) Minimum.--A grant under this section 
                shall be awarded in an amount that is not less than 
                $10,000.</DELETED>
        <DELETED>    ``(3) Duration; renewal; and payments.--</DELETED>
                <DELETED>    ``(A) Duration.--The Secretary shall award 
                a grant under this section for a period of 3 
                years.</DELETED>
                <DELETED>    ``(B) Renewal.--A grant under this section 
                may be renewed for a period of 3 years.</DELETED>
                <DELETED>    ``(C) Payments.--Subject to subsection 
                (d)(2), the Secretary shall make annual grant payments 
                under this section.</DELETED>
        <DELETED>    ``(4) Eligible institutions.--An institution of 
        higher education shall be eligible to receive a grant under 
        this section for a fiscal year if the total amount of all 
        Federal Pell Grant funds awarded to students enrolled at the 
        institution of higher education for the preceding fiscal year 
        equals or exceeds $350,000.</DELETED>
        <DELETED>    ``(5) Use of funds.--Grant funds under this 
        section shall be used by an institution of higher education to 
        support or establish a campus-based child care program serving 
        the needs of low-income students enrolled at the institution of 
        higher education.</DELETED>
        <DELETED>    ``(6) Construction.--Nothing in this section shall 
        be construed to prohibit an institution of higher education 
        that receives grant funds under this section from serving the 
        child care needs of the community served by the 
        institution.</DELETED>
        <DELETED>    ``(7) Definition of low-income student.--For the 
        purpose of this section, the term ``low-income student'' means 
        a student who is eligible to receive a Federal Pell Grant for 
        the fiscal year for which the determination is made.</DELETED>
<DELETED>    ``(c) Applications.--An institution of higher education 
desiring a grant under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require. Each application shall--
</DELETED>
        <DELETED>    ``(1) demonstrate that the institution is an 
        eligible institution described in subsection (b)(4);</DELETED>
        <DELETED>    ``(2) specify the amount of funds 
        requested;</DELETED>
        <DELETED>    ``(3) demonstrate the need of low-income students 
        at the institution for campus-based child care services by 
        including in the application student demographics and other 
        relevant data;</DELETED>
        <DELETED>    ``(4) contain a description of the activities to 
        be assisted, including whether the grant funds will support an 
        existing child care program or a new child care 
        program;</DELETED>
        <DELETED>    ``(5) identify the resources the institution will 
        draw upon to support the child care program and the 
        participation of low-income students in the program, such as 
        accessing social services funding, using student activity fees 
        to help pay the costs of child care, using resources obtained 
        by meeting the needs of parents who are not low-income 
        students, and accessing foundation, corporate or other 
        institutional support, and demonstrate that the use of the 
        resources will not result in increases in student 
        tuition;</DELETED>
        <DELETED>    ``(6) contain an assurance that the institution 
        will meet the child care needs of low-income students through 
        the provision of services, or through a contract for the 
        provision of services;</DELETED>
        <DELETED>    ``(7) in the case of an institution seeking 
        assistance for a new child care program--</DELETED>
                <DELETED>    ``(A) provide a timeline, covering the 
                period from receipt of the grant through the provision 
                of the child care services, delineating the specific 
                steps the institution will take to achieve the goal of 
                providing low-income students with child care 
                services;</DELETED>
                <DELETED>    ``(B) specify any measures the institution 
                will take to assist low-income students with child care 
                during the period before the institution provides child 
                care services; and</DELETED>
                <DELETED>    ``(C) include a plan for identifying 
                resources needed for the child care services, including 
                space in which to provide child care services, and 
                technical assistance if necessary;</DELETED>
        <DELETED>    ``(8) contain an assurance that any child care 
        facility assisted under this section will meet the applicable 
        State or local government licensing, certification, approval, 
        or registration requirements; and</DELETED>
        <DELETED>    ``(9) contain a plan for any child care facility 
        assisted under this section to become accredited within 3 years 
        of the date the institution first receives assistance under 
        this section.</DELETED>
<DELETED>    ``(d) Reporting Requirements; Continuing Eligibility.--
</DELETED>
        <DELETED>    ``(1) Reporting requirements.--</DELETED>
                <DELETED>    ``(A) Reports.--Each institution of higher 
                education receiving a grant under this section shall 
                report to the Secretary 18 months, and 36 months, after 
                receiving the first grant payment under this 
                section.</DELETED>
                <DELETED>    ``(B) Contents.--The report shall 
                include--</DELETED>
                        <DELETED>    ``(i) data on the population 
                        served under this section;</DELETED>
                        <DELETED>    ``(ii) information on campus and 
                        community resources and funding used to help 
                        low-income students access child care 
                        services;</DELETED>
                        <DELETED>    ``(iii) information on progress 
                        made toward accreditation of any child care 
                        facility; and</DELETED>
                        <DELETED>    ``(iv) information on the impact 
                        of the grant on the quality, availability, and 
                        affordability of campus-based child care 
                        services.</DELETED>
        <DELETED>    ``(2) Continuing eligibility.--The Secretary shall 
        make the third annual grant payment under this section to an 
        institution of higher education only if the Secretary 
        determines, on the basis of the 18-month report submitted under 
        paragraph (1), that the institution is making a good faith 
        effort to ensure that low-income students at the institution 
        have access to affordable, quality child care 
        services.</DELETED>
<DELETED>    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section $60,000,000 for 
fiscal year 1999 and such sums as may be necessary for each of the 4 
succeeding fiscal years.''.</DELETED>

    <DELETED>PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM</DELETED>

<DELETED>SEC. 421. ADVANCES FOR RESERVE FUNDS.</DELETED>

<DELETED>    Section 422 (20 U.S.C. 1072) is amended--</DELETED>
        <DELETED>    (1) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (6)(B)(i), by striking 
                ``written'' and inserting ``written, electronic''; 
                and</DELETED>
                <DELETED>    (B) in paragraph (7)(A), by striking 
                ``during the transition from the Federal Family 
                Education Loan Program under this part to the Federal 
                Direct Student Loan Program under part D of this 
                title'';</DELETED>
        <DELETED>    (2) in the matter preceding subparagraph (A) of 
        subsection (g)(1), by striking ``or the program authorized by 
        part D of this title'' each place the term appears; 
        and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(i) Additional Recall of Reserves.--</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding any other 
        provision of law and subject to paragraph (4), the Secretary 
        shall recall $40,000,000 for each of the fiscal years 1999, 
        2000, 2001, 2002, and 2003 from reserve funds held in the 
        Federal Student Loan Reserve Funds established under section 
        422A by guaranty agencies.</DELETED>
        <DELETED>    ``(2) Deposit.--Funds recalled by the Secretary 
        under this subsection shall be deposited in the 
        Treasury.</DELETED>
        <DELETED>    ``(3) Required share.--The Secretary shall require 
        each guaranty agency to return reserve funds under paragraph 
        (1) annually on the basis of </DELETED>\<DELETED>1/5</DELETED>\ 
        <DELETED>of the agency's required share. For purposes of this 
        paragraph, a guaranty agency's required share shall be 
        determined as follows:</DELETED>
                <DELETED>    ``(A) Equal percentage.--The Secretary 
                shall require each guaranty agency to return an equal 
                percentage reduction in the amount of reserve funds 
                held by the agency on September 30, 1996.</DELETED>
                <DELETED>    ``(B) Calculation.--The equal percentage 
                reduction shall be the percentage obtained by 
                dividing--</DELETED>
                        <DELETED>    ``(i) $200,000,000, by</DELETED>
                        <DELETED>    ``(ii) the total amount of all 
                        guaranty agencies' reserve funds held on 
                        September 30, 1996.</DELETED>
        <DELETED>    ``(4) Offset of required shares.--If any guaranty 
        agency returns to the Secretary any reserve funds in excess of 
        the amount required under this subsection or subsection (h), 
        the total amount required to be returned under paragraph (1) 
        shall be reduced by the amount of such excess reserve funds 
        returned.</DELETED>
        <DELETED>    ``(5) Definition of reserve funds.--The term 
        `reserve funds' when used with respect to a guaranty agency--
        </DELETED>
                <DELETED>    ``(A) includes any reserve funds in cash 
                or liquid assets held by the guaranty agency, or held 
                by, or under the control of, any other entity; 
                and</DELETED>
                <DELETED>    ``(B) does not include buildings, 
                equipment, or other nonliquid assets.''.</DELETED>

<DELETED>SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND.</DELETED>

<DELETED>    Part B of title IV (20 U.S.C. 1071 et seq.) is amended by 
inserting after section 422 (20 U.S.C. 1072) the following:</DELETED>

<DELETED>``SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.</DELETED>

<DELETED>    ``(a) Establishment.--Each guaranty agency shall, not 
later than 45 days after the date of enactment of this section, deposit 
all funds, securities, and other liquid assets contained in the reserve 
fund established pursuant to section 422 into a Federal Student Loan 
Reserve Fund (in this section referred to as the `Federal Fund'), in an 
account of a type selected by the agency, with the approval of the 
Secretary.</DELETED>
<DELETED>    ``(b) Investment of Funds.--Funds transferred to the 
Federal Fund shall be invested in obligations issued or guaranteed by 
the United States or a State, or in other similarly low-risk securities 
selected by the guaranty agency, with the approval of the Secretary. 
Earnings from the Federal Fund shall be the sole property of the 
Federal Government.</DELETED>
<DELETED>    ``(c) Additional Deposits.--After the establishment of the 
Federal Fund, a guaranty agency shall deposit into the Federal Fund--
</DELETED>
        <DELETED>    ``(1) all amounts received from the Secretary as 
        payment of reinsurance on loans pursuant to section 
        428(c)(1);</DELETED>
        <DELETED>    ``(2) from amounts collected on behalf of the 
        obligation of a defaulted borrower, a percentage amount equal 
        to the complement of the reinsurance percentage in effect when 
        payment under the guaranty agreement was made with respect to 
        the defaulted loan pursuant to section 428(c)(6)(A)(i); 
        and</DELETED>
        <DELETED>    ``(3) the amount of the insurance premium 
        collected from borrowers pursuant to section 
        428(b)(1)(H).</DELETED>
<DELETED>    ``(d) Uses of Funds.--Subject to subsection (f), the 
Federal Fund may only be used by a guaranty agency--</DELETED>
        <DELETED>    ``(1) to pay lender claims pursuant to sections 
        428(b)(1)(G), 428(j), 437, and 439(q); and</DELETED>
        <DELETED>    ``(2) to pay into the Agency Operating Fund 
        established pursuant to section 422B a default prevention fee 
        in accordance with section 428(l).</DELETED>
<DELETED>    ``(e) Ownership of Federal Fund.--The Federal Fund 
administered by the guaranty agency, regardless of who holds or 
controls the reserve funds or assets, and any nonliquid assets that 
were purchased with Federal reserve funds, shall be considered to be 
the property of the United States to be used in the operation of the 
program authorized by this part, as provided in subsection (d). The 
Secretary may direct a guaranty agency, or such agency's officers or 
directors, to cease any activity involving expenditure, use, or 
transfer of the Federal Fund administered by the guaranty agency that 
the Secretary determines is a misapplication, misuse, or improper 
expenditure of such funds or assets.</DELETED>
<DELETED>    ``(f) Transition.--</DELETED>
        <DELETED>    ``(1) In general.--In order to establish the 
        Agency Operating Fund established by section 422B, each agency 
        may transfer not more than 180 days cash expenses for normal 
        operating expenses, as a working capital reserve as defined in 
        Office of Management and Budget Circular A-87 (Cost Accounting 
        Standards) for use in the performance of the agency's duties 
        under this part. Such transfers may occur during the first 3 
        years following the establishment of the Agency Operating Fund, 
        except that no agency may transfer in excess of 40 percent of 
        the Federal Fund balance to the agency's Agency Operating Fund 
        during any fiscal year. In determining the amount necessary for 
        transfer, the agency shall assure that sufficient funds remain 
        in the Federal Fund to pay lender claims within the required 
        time periods and to meet the reserve funds recall requirements 
        of subsection (b).</DELETED>
        <DELETED>    ``(2) Repayment provisions.--Each guaranty agency 
        shall begin repayment of sums transferred pursuant to this 
        subsection not later than 3 years after the establishment of 
        the Agency Operating Fund, and shall repay all sums transferred 
        not later than 5 years from the date of the establishment of 
        the Agency Operating Fund. The guaranty agency shall provide to 
        the Secretary a schedule for repayment of the sums transferred 
        and an annual financial analysis demonstrating the agency's 
        ability to comply with the schedule and repay all outstanding 
        sums transferred.</DELETED>
        <DELETED>    ``(3) Prohibition.--If a guaranty agency transfers 
        funds from the Federal Fund in accordance with this section, 
        and fails to make scheduled repayments to the Federal Fund, the 
        agency may not receive any other funds under this part until 
        the Secretary determines that the agency has made such 
        repayments.</DELETED>
        <DELETED>    ``(4) Waiver.--The Secretary may waive the 
        requirements of paragraph (3) for a guaranty agency described 
        in such paragraph if the Secretary determines there are 
        extenuating circumstances beyond the control of the agency that 
        justify such a waiver.</DELETED>
        <DELETED>    ``(5) Investment of federal funds.--Funds 
        transferred from the Federal Fund to the Agency Operating Fund 
        for operating expenses shall be invested in obligations issued 
        or guaranteed by the United States or a State, or in other 
        similarly low-risk securities selected by the guaranty agency, 
        with the approval of the Secretary.</DELETED>
        <DELETED>    ``(6) Special rule.--In applying the minimum 
        reserve level required by section 428(c)(9)(A), the Secretary 
        shall include all amounts owed to the Federal Fund by the 
        guaranty agency in the calculation.''.</DELETED>

<DELETED>SEC. 423. AGENCY OPERATING FUND.</DELETED>

<DELETED>    Part B of title IV (20 U.S.C. 1071 et seq.) is amended 
further by inserting after section 422A (as added by section 422) the 
following:</DELETED>

<DELETED>``SEC. 422B. AGENCY OPERATING FUND.</DELETED>

<DELETED>    ``(a) Establishment.--Each guaranty agency shall, not 
later than 45 days after the date of enactment of this section, 
establish a fund designated as the Agency Operating Fund (in this 
section referred to as the `Operating Fund').</DELETED>
<DELETED>    ``(b) Investment of Funds.--Funds deposited into the 
Operating Fund, with the exception of funds transferred from the 
Federal Student Loan Reserve Fund pursuant to section 422A(f), shall be 
invested at the discretion of the guaranty agency.</DELETED>
<DELETED>    ``(c) Additional Deposits.--After the establishment of the 
Operating Fund, the guaranty agency shall deposit into the Operating 
Fund--</DELETED>
        <DELETED>    ``(1) the loan processing and issuance fee paid by 
        the Secretary pursuant to section 428(f);</DELETED>
        <DELETED>    ``(2) the portfolio maintenance fee paid by the 
        Secretary in accordance with section 458;</DELETED>
        <DELETED>    ``(3) the default prevention fee paid in 
        accordance with section 428(l); and</DELETED>
        <DELETED>    ``(4) amounts remaining pursuant to section 
        428(c)(6)(A)(ii) from collection on defaulted loans held by the 
        agency, after payment of the Secretary's equitable share, 
        excluding amounts deposited in the Federal Student Loan Reserve 
        Fund pursuant to section 422A(c)(2).</DELETED>
<DELETED>    ``(d) Uses of Funds.--</DELETED>
        <DELETED>    ``(1) In general.--Funds in the Operating Fund 
        shall be used for application processing, loan disbursement, 
        enrollment and repayment status management, default prevention 
        activities (including those described in section 422(h)(8), 
        default collection activities, school and lender training, 
        compliance monitoring, and other student financial aid related 
        activities as determined by the Secretary.</DELETED>
        <DELETED>    ``(2) Special rule.--The guaranty agency may, in 
        the agency's discretion, transfer funds from the Operating Fund 
        to the Federal Student Loan Reserve Fund for use pursuant to 
        section 422A. Such transfer shall be irrevocable, and any funds 
        so transferred shall become the sole property of the United 
        States.</DELETED>
        <DELETED>    ``(3) Definitions.--For purposes of this 
        subsection:</DELETED>
                <DELETED>    ``(A) Default collection activities.--The 
                term `default collection activities' means activities 
                of a guaranty agency that are directly related to the 
                collection of the loan on which a default claim has 
                been paid to the participating lender, including the 
                attributable compensation of collection personnel (and 
                in the case of personnel who perform several functions 
                for such an agency only the portion of the compensation 
                attributable to the collection activity), attorney's 
                fees, fees paid to collection agencies, postage, 
                equipment, supplies, telephone, and similar 
                charges.</DELETED>
                <DELETED>    ``(B) Default prevention activities.--The 
                term `default prevention activities' means activities 
                of a guaranty agency, including those described in 
                section 422(h)(8), that are directly related to 
                providing collection assistance to the lender on a 
                delinquent loan, prior to the loan's being in a default 
                status, including the attributable compensation of 
                appropriate personnel (and in the case of personnel who 
                perform several functions for such an agency only the 
                portion of compensation attributable to the default 
                prevention activity), fees paid to locate a missing 
                borrower, postage, equipment, supplies, telephone, and 
                similar charges.</DELETED>
                <DELETED>    ``(C) Enrollment and repayment status 
                management.--The term `enrollment and repayment status 
                management' means activities of a guaranty agency that 
                are directly related to ascertaining the student's 
                enrollment status, including prompt notification to the 
                lender of such status, an audit of the note or written 
                agreement to determine if the provisions of that note 
                or agreement are consistent with the records of the 
                guaranty agency as to the principal amount of the loan 
                guaranteed, and an examination of the note or agreement 
                to assure that the repayment provisions are consistent 
                with the provisions of this title.</DELETED>
<DELETED>    ``(e) Ownership of Operating Fund.--The Operating Fund, 
with the exception of funds transferred from the Federal Student Loan 
Reserve Fund in accordance with section 422A(f), shall be considered to 
be the property of the guaranty agency. The Secretary may not regulate 
the uses or expenditure of moneys in the Operating Fund, but the 
Secretary may require such necessary reports and audits as provided in 
section 428(b)(2). However, during any period in which funds are owed 
to the Federal Student Loan Reserve Fund as a result of transfer under 
422A(f), moneys in the Operating Fund may only be used for expenses 
related to the student loan programs authorized under this 
part.</DELETED>
<DELETED>    ``(f) Authority of Secretary To Dispose of Nonliquid 
Assets.--The Secretary may allow a guaranty agency to purchase 
nonliquid assets of the agency originally acquired with student loan 
reserve funds, except that an agency may not purchase any nonliquid 
assets during any period in which funds are owed to the Federal Student 
Loan Reserve Fund as a result of a transfer under section 422A(f). The 
purchase amount shall be available for expenditure under section 
458.''.</DELETED>

<DELETED>SEC. 424. APPLICABLE INTEREST RATES.</DELETED>

<DELETED>    (a) Applicable Interest Rates.--</DELETED>
        <DELETED>    (1) Amendment.--Section 427A (20 U.S.C. 1077a et 
        seq.) is amended to read as follows:</DELETED>

<DELETED>``SEC. 427A. APPLICABLE INTEREST RATES.</DELETED>

<DELETED>    ``(a) Interest Rates for New Loans On or After July 1, 
1998.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to paragraph (2), with 
        respect to any loan made, insured, or guaranteed under this 
        part (other than a loan made pursuant to section 428B or 428C) 
        for which the first disbursement is made on or after July 1, 
        1998, the applicable rate of interest shall, during any 12-
        month period beginning on July 1 and ending on June 30, be 
        determined on the preceding June 1 and be equal to--</DELETED>
                <DELETED>    ``(A) the bond equivalent rate of 91-day 
                Treasury bills auctioned at the final auction held 
                prior to such June 1; plus</DELETED>
                <DELETED>    ``(B) 2.3 percent,</DELETED>
        <DELETED>except that such rate shall not exceed 8.25 
        percent.</DELETED>
        <DELETED>    ``(2) In school and grace period rules.--With 
        respect to any loan under this part (other than a loan made 
        pursuant to section 428B or 428C) for which the first 
        disbursement is made on or after July 1, 1998, the applicable 
        rate of interest for interest which accrues--</DELETED>
                <DELETED>    ``(A) prior to the beginning of the 
                repayment period of the loan; or</DELETED>
                <DELETED>    ``(B) during the period in which principal 
                need not be paid (whether or not such principal is in 
                fact paid) by reason of a provision described in 
                section 428(b)(1)(M) or 427(a)(2)(C),</DELETED>
        <DELETED>shall be determined under paragraph (1) by 
        substituting `1.7 percent' for `2.3 percent'.</DELETED>
        <DELETED>    ``(3) PLUS loans.--With respect to any loan under 
        section 428B for which the first disbursement is made on or 
        after July 1, 1998, the applicable rate of interest shall be 
        determined under paragraph (1)--</DELETED>
                <DELETED>    ``(A) by substituting `3.1 percent' for 
                `2.3 percent'; and</DELETED>
                <DELETED>    ``(B) by substituting `9.0 percent' for 
                `8.25 percent'.</DELETED>
<DELETED>    ``(b) Lesser Rates Permitted.--Nothing in this section or 
section 428C shall be construed to prohibit a lender from charging a 
borrower interest at a rate less than the rate which is applicable 
under this part.</DELETED>
<DELETED>    ``(c) Consultation.--The Secretary shall determine the 
applicable rate of interest under this section after consultation with 
the Secretary of the Treasury and shall publish such rate in the 
Federal Register as soon as practicable after the date of 
determination.''.</DELETED>
        <DELETED>    (2) Conforming amendment.--Section 428B(d)(4) (20 
        U.S.C. 1078-2(d)(4)) is amended by striking ``section 427A(c)'' 
        and inserting ``section 427A(a)(3)''.</DELETED>
<DELETED>    (b) Special Allowances.--</DELETED>
        <DELETED>    (1) Amendment.--Section 438(b)(2)(F) (20 U.S.C. 
        1087-1(b)(2)(F)) is amended to read as follows:</DELETED>
        <DELETED>    ``(F) Loans disbursed after july 1, 1998.--
        </DELETED>
                <DELETED>    ``(i) In general.--Subject to paragraph 
                (4) and clauses (ii), (iii), and (iv) of this 
                subparagraph, the special allowance paid pursuant to 
                this subsection on loans for which the first 
                disbursement is made on or after July 1, 1998, shall be 
                computed--</DELETED>
                        <DELETED>    ``(I) by determining the average 
                        of the bond equivalent rates of 91-day Treasury 
                        bills auctioned for such 3-month 
                        period;</DELETED>
                        <DELETED>    ``(II) by subtracting the 
                        applicable interest rates on such loans from 
                        such average bond equivalent rate;</DELETED>
                        <DELETED>    ``(III) by adding 2.8 percent to 
                        the resultant percent; and</DELETED>
                        <DELETED>    ``(IV) by dividing the resultant 
                        percent by 4.</DELETED>
                <DELETED>    ``(ii) In school and grace period.--In the 
                case of any loan for which the first disbursement is 
                made on or after July 1, 1998, and for which the 
                applicable rate of interest is described in section 
                427A(a)(2), clause (i)(III) of this subparagraph shall 
                be applied by substituting `2.2 percent' for `2.8 
                percent'.</DELETED>
                <DELETED>    ``(iii) PLUS loans.--In the case of any 
                loan for which the first disbursement is made on or 
                after July 1, 1998, and for which the applicable rate 
                of interest is described in section 427A(a)(3), clause 
                (i)(III) of this subparagraph shall be applied by 
                substituting `3.1 percent' for `2.8 percent', subject 
                to clause (iv) of this subparagraph.</DELETED>
                <DELETED>    ``(iv) Limitation on special allowances 
                for plus loans.--In the case of loans disbursed on or 
                after July 1, 1998, for which the interest rate is 
                determined under section 427A(a)(3), a special 
                allowance shall not be paid for a loan made under 
                section 428B unless the rate determined for any 12-
                month period under section 427A(a)(3) exceeds 9 
                percent.''.</DELETED>
        <DELETED>    (2) Conforming amendment.--Section 
        438(b)(2)(C)(ii) is amended by striking ``In the case'' and 
        inserting ``Subject to subparagraph (F), in the 
        case''.</DELETED>
<DELETED>    (c) Effective Date.--The amendments made by this section 
shall apply with respect to any loan made, insured, or guaranteed under 
part B of title IV of the Higher Education Act of 1965 for which the 
first disbursement is made on or after July 1, 1998.</DELETED>

<DELETED>SEC. 425. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST 
              COSTS.</DELETED>

<DELETED>    (a) Federal Interest Subsidies.--Section 428(a) (20 U.S.C. 
1078(a)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)--</DELETED>
                <DELETED>    (A) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) in clause (i), by striking 
                        subclauses (I), (II), and (III) and inserting 
                        the following:</DELETED>
                        <DELETED>    ``(I) sets forth the loan amount 
                        for which the student shows financial need; 
                        and</DELETED>
                        <DELETED>    ``(II) sets forth a schedule for 
                        disbursement of the proceeds of the loan in 
                        installments, consistent with the requirements 
                        of section 428G; and''; and</DELETED>
                        <DELETED>    (ii) by amending clause (ii) to 
                        read as follows:</DELETED>
                <DELETED>    ``(ii) meets the requirements of 
                subparagraph (B); and'';</DELETED>
                <DELETED>    (B) by amending subparagraph (B) to read 
                as follows:</DELETED>
        <DELETED>    ``(B) For the purpose of clause (ii) of 
        subparagraph (A), a student shall qualify for a portion of an 
        interest payment under paragraph (1) (and a loan amount 
        pursuant to section 428H) if the eligible institution has 
        determined and documented the student's amount of need for a 
        loan based on the student's estimated cost of attendance, 
        estimated financial assistance, and, for the purpose of an 
        interest payment pursuant to this section, the expected family 
        contribution (as determined under part F), subject to the 
        provisions of subparagraph (D).''; and</DELETED>
                <DELETED>    (C) by amending subparagraph (C) to read 
                as follows:</DELETED>
        <DELETED>    ``(C) For the purpose of subparagraph (B) and this 
        paragraph--</DELETED>
                <DELETED>    ``(i) a student's cost of attendance shall 
                be determined under section 472;</DELETED>
                <DELETED>    ``(ii) a student's estimated financial 
                assistance means, for the period for which the loan is 
                sought, the amount of assistance such student will 
                receive under subpart 1 of part A (as determined in 
                accordance with section 484(b)), subpart 3 of part A, 
                parts C and E, and any veterans' education benefits 
                paid because of enrollment in a postsecondary education 
                institution, including veterans' education benefits (as 
                defined in section 480(c)), plus other scholarship, 
                grant, or loan assistance; and</DELETED>
                <DELETED>    ``(iii) the determination of need and of 
                the amount of a loan by an eligible institution under 
                subparagraph (B) with respect to a student shall, with 
                the exception of loans made under section 428H, be 
                calculated in accordance with part F.''; and</DELETED>
        <DELETED>    (2) in paragraph (3)(A)(v)--</DELETED>
                <DELETED>    (A) in subclause (I), by inserting ``by 
                the institution'' after ``disbursement''; and</DELETED>
                <DELETED>    (B) in clause (II), by inserting ``by the 
                institution'' after ``disbursement''.</DELETED>
<DELETED>    (b) Insurance Program Agreements.--Section 428(b) (20 
U.S.C. 1078(b)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) in the matter preceding clause 
                        (i), by inserting ``, as defined in section 
                        481(d)(2),'' after ``academic year'';</DELETED>
                        <DELETED>    (ii) in clause (iv), by striking 
                        ``and'' after the semicolon;</DELETED>
                        <DELETED>    (iii) in clause (v), by inserting 
                        ``and'' after the semicolon; and</DELETED>
                        <DELETED>    (iv) by inserting before the 
                        matter following clause (v) the 
                        following:</DELETED>
                        <DELETED>    ``(vi) in the case of a student 
                        enrolled in coursework specified in sections 
                        484(b)(3)(B) and 484(b)(4)(B)--</DELETED>
                                <DELETED>    ``(I) $2,625 for 
                                coursework necessary for enrollment in 
                                an undergraduate degree or certificate 
                                program, and $5,500 for coursework 
                                necessary for enrollment in a graduate 
                                or professional degree or certification 
                                program; and</DELETED>
                                <DELETED>    ``(II) $5,500 for 
                                coursework necessary for a professional 
                                credential or certification from a 
                                State required for employment as a 
                                teacher in an elementary or secondary 
                                school;'';</DELETED>
                <DELETED>    (B) by amending subparagraph (E) to read 
                as follows:</DELETED>
                <DELETED>    ``(E) subject to subparagraphs (D) and 
                (L), and except as provided by subparagraph (M), 
                provides that--</DELETED>
                        <DELETED>    ``(i) not more than 6 months prior 
                        to the date on which the borrower's first 
                        payment is due, the lender shall offer the 
                        borrower of a loan made, insured, or guaranteed 
                        under this section or section 428H, the option 
                        of repaying the loan in accordance with a 
                        graduated, income-sensitive, or extended 
                        repayment schedule (as described in paragraph 
                        (9)) established by the lender in accordance 
                        with regulations provided by the Secretary; 
                        and</DELETED>
                        <DELETED>    ``(ii) repayment of loans shall be 
                        in installments in accordance with the 
                        repayment plan selected under paragraph (9) and 
                        commencing at the beginning of the repayment 
                        period determined under paragraph 
                        (7)'';</DELETED>
                <DELETED>    (C) in subparagraph (L)(i), by inserting 
                ``except as otherwise provided by a repayment plan 
                selected by the borrower under clause (ii) or (iii) of 
                paragraph (9)(A),'' before ``during any''; 
                and</DELETED>
                <DELETED>    (D) in subparagraph (U)(iii)(I), by 
                inserting ``that originates or holds more than 
                $5,000,000 in loans made under this title for any 
                fiscal year,'' before ``at least once a year''; 
                and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(9) Repayment plans.--</DELETED>
                <DELETED>    ``(A) Design and selection.--In accordance 
                with regulations promulgated by the Secretary, the 
                lender shall offer a borrower of a loan made under this 
                part the plans described in this subparagraph for 
                repayment of such loan, including principal and 
                interest thereon. Except as provided in paragraph 
                (1)(L)(i), no plan may require a borrower to repay a 
                loan in less than 5 years. The borrower may choose 
                from--</DELETED>
                        <DELETED>    ``(i) a standard repayment plan, 
                        with a fixed annual repayment amount paid over 
                        a fixed period of time, not to exceed 10 
                        years;</DELETED>
                        <DELETED>    ``(ii) a graduated repayment plan 
                        paid over a fixed period of time, not to exceed 
                        10 years;</DELETED>
                        <DELETED>    ``(iii) an income-sensitive 
                        repayment plan, with income-sensitive repayment 
                        amounts paid over a fixed period of time, not 
                        to exceed 10 years, except that the borrower's 
                        scheduled payments shall not be less than the 
                        amount of interest due; and</DELETED>
                        <DELETED>    ``(iv) for first-time borrowers on 
                        or after the date of enactment of the Higher 
                        Education Amendments of 1998 with outstanding 
                        loans under this part totaling more than 
                        $30,000, an extended repayment plan, with a 
                        fixed annual or graduated repayment amount paid 
                        over an extended period of time, not to exceed 
                        25 years, except that the borrower shall repay 
                        annually a minimum amount determined in 
                        accordance with paragraph (2)(L).</DELETED>
                <DELETED>    ``(B) Lender selection of option if 
                borrower does not select.--If a borrower of a loan made 
                under this part does not select a repayment plan 
                described in subparagraph (A), the lender shall provide 
                the borrower with a repayment plan described in 
                subparagraph (A)(i).</DELETED>
                <DELETED>    ``(C) Changes in selection.--The borrower 
                of a loan made under this part may change the 
                borrower's selection of a repayment plan under 
                subparagraph (B), as the case may be, under such 
                conditions as may be prescribed by the Secretary in 
                regulation.</DELETED>
                <DELETED>    ``(D) Acceleration permitted.--Under any 
                of the plans described in this paragraph, the borrower 
                shall be entitled to accelerate, without penalty, 
                repayment on the borrower's loans under this 
                part.''.</DELETED>
<DELETED>    (c) Guaranty Agreements for Reimbursing Losses.--Section 
428(c) (20 U.S.C. 1078(c)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) in the fourth sentence of subparagraph 
                (A), by striking ``as reimbursement under this 
                subsection shall be equal to 98 percent'' and inserting 
                ``as reimbursement for loans for which the first 
                disbursement is made on or after the date of enactment 
                of the Higher Education Amendments of 1998 shall be 
                equal to 95 percent'';</DELETED>
                <DELETED>    (B) in subparagraph (B)--</DELETED>
                        <DELETED>    (i) in clause (i), by striking 
                        ``88 percent of the amount of such excess'' and 
                        inserting ``85 percent of the amount of such 
                        excess for loans for which the first 
                        disbursement is made on or after the date of 
                        enactment of the Higher Education Amendments of 
                        1998''; and</DELETED>
                        <DELETED>    (ii) in clause (ii), by striking 
                        ``78 percent of the amount of such excess'' and 
                        inserting ``75 percent of the amount of such 
                        excess for loans for which the first 
                        disbursement is made on or after the date of 
                        enactment of the Higher Education Amendments of 
                        1998'';</DELETED>
                <DELETED>    (C) in subparagraph (E)--</DELETED>
                        <DELETED>    (i) in clause (i), by striking 
                        ``98 percent'' and inserting ``95 
                        percent'';</DELETED>
                        <DELETED>    (ii) in clause (ii), by striking 
                        ``88 percent'' and inserting ``85 percent''; 
                        and</DELETED>
                        <DELETED>    (iii) in clause (iii), by striking 
                        ``78 percent'' and inserting ``75 percent''; 
                        and</DELETED>
                <DELETED>    (D) in subparagraph (F)--</DELETED>
                        <DELETED>    (i) in clause (i), by striking 
                        ``98 percent'' and inserting ``95 percent''; 
                        and</DELETED>
                        <DELETED>    (ii) in clause (ii), by striking 
                        ``88 percent'' and inserting ``85 
                        percent'';</DELETED>
        <DELETED>    (2) in paragraph (3)--</DELETED>
                <DELETED>    (A) in subparagraph (A)(i), by inserting 
                ``or electronic'' after ``written'';</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking 
                ``and'' after the semicolon;</DELETED>
                <DELETED>    (C) in subparagraph (C), by striking the 
                period and inserting ``; and''; and</DELETED>
                <DELETED>    (D) by inserting before the matter 
                following subparagraph (C) the following:</DELETED>
                <DELETED>    ``(D) shall contain provisions that 
                specify that forbearance for a period not to exceed 60 
                days may be granted if the lender determines that such 
                a suspension of collection activity is warranted 
                following a borrower's request for forbearance in order 
                to collect or process appropriate supporting 
                documentation related to the request, and that during 
                such period interest shall not be 
                capitalized.'';</DELETED>
        <DELETED>    (3) by amending paragraph (6) to read as 
        follows:</DELETED>
        <DELETED>    ``(6) Secretary's equitable share.--For the 
        purpose of paragraph (2)(D), the Secretary's equitable share of 
        payments made by the borrower shall be that portion of the 
        payments remaining after the guaranty agency with which the 
        Secretary has an agreement under this subsection has deducted 
        from such payments--</DELETED>
                <DELETED>    ``(A) a percentage amount equal to the 
                complement of the reinsurance percentage in effect when 
                payment in effect when payment under the guaranty 
                agreement was made with respect to the loan; 
                and</DELETED>
                <DELETED>    ``(B) an amount equal to 24 percent of 
                such payments for use in accordance with section 
                422B.'';</DELETED>
        <DELETED>    (4) in paragraph (8)--</DELETED>
                <DELETED>    (A) by striking ``(A) If'' and inserting 
                ``If''; and</DELETED>
                <DELETED>    (B) by striking subparagraph (B); 
                and</DELETED>
        <DELETED>    (5) in paragraph (9)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``maintain a current minimum reserve level of at least 
                .5 percent'' and inserting ``maintain in the agency's 
                Federal Student Loan Reserve Fund established under 
                section 422A a current minimum reserve level of at 
                least 0.25 percent'';</DELETED>
                <DELETED>    (B) in subparagraph (C)--</DELETED>
                        <DELETED>    (i) by striking ``80 percent'' and 
                        inserting ``78 percent'';</DELETED>
                        <DELETED>    (ii) by striking ``, as 
                        appropriate,''; and</DELETED>
                        <DELETED>    (iii) by striking ``30 working'' 
                        and inserting ``45 working'';</DELETED>
                <DELETED>    (C) in subparagraph (E)--</DELETED>
                        <DELETED>    (i) in clause (iv), by inserting 
                        ``or'' after the semicolon;</DELETED>
                        <DELETED>    (ii) in clause (v), by striking 
                        ``; or'' and inserting a period; and</DELETED>
                        <DELETED>    (iii) by striking clause 
                        (vi);</DELETED>
                <DELETED>    (D) in subparagraph (F), by amending 
                clause (vii) to read as follows:</DELETED>
                <DELETED>    ``(vii) take any other action the 
                Secretary determines necessary to avoid disruption of 
                the student loan program, to ensure the 
continued availability of loans made under this part to residents of 
each State in which the guaranty agency did business, to ensure the 
full honoring of all guarantees issued by the guaranty agency prior to 
the Secretary's assumption of the functions of such agency, and to 
ensure the proper servicing of loans guaranteed by the guaranty agency 
prior to the Secretary's assumption of the functions of such agency.''; 
and</DELETED>
                <DELETED>    (E) in subparagraph (K), by striking ``and 
                the progress of the transition from the loan programs 
                under this part to the direct student loan programs 
                under part D of this title''.</DELETED>
<DELETED>    (d) Payment for Lender Referral Services.--Subsection (e) 
of section 428 (20 U.S.C. 1078) is repealed.</DELETED>
<DELETED>    (e) Payment of Certain Costs.--Subsection (f) of section 
428 (20 U.S.C. 1078) is amended to read as follows:</DELETED>
<DELETED>    ``(f) Payments of Certain Costs.--</DELETED>
        <DELETED>    ``(1) Payment for certain activities.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary, for 
                loans originated on or after October 1, 1998, and in 
                accordance with the provisions of this paragraph, shall 
                pay to each guaranty agency, a loan processing and 
                issuance fee equal to 0.65 percent of the total 
                principal amount of the loans on which insurance was 
                issued under this part during such fiscal year by such 
                agency.</DELETED>
                <DELETED>    ``(B) Payment.--The payment required by 
                subparagraph (A) shall be paid on a quarterly basis. 
                The guaranty agency shall be deemed to have a 
                contractual right against the United States to receive 
                payments according to the provisions of this 
                subparagraph. Payments shall be made promptly and 
                without administrative delay to any guaranty agency 
                submitting an accurate and complete application 
                therefore under this subparagraph.''.</DELETED>
<DELETED>    (f) Lenders-of-Last-Resort.--Paragraph (3) of section 
428(j) (20 U.S.C. 1078(j)) is amended--</DELETED>
        <DELETED>    (1) in the paragraph heading, by striking ``during 
        transition to direct lending''; and</DELETED>
        <DELETED>    (2) in subparagraph (A), by striking ``during the 
        transition from the Federal Family Education Loan Program under 
        this part to the Federal Direct Student Loan Program under part 
        D of this title'';</DELETED>
<DELETED>    (g) Default Aversion Assistance.--Subsection (l) of 
section 428 (20 U.S.C. 1078) is amended to read as follows:</DELETED>
<DELETED>    ``(l) Default Aversion Assistance.--</DELETED>
        <DELETED>    ``(1) Assistance required.--Upon receipt of a 
        proper request from the lender not earlier than the 60th nor 
        later than the 90th day of delinquency, a guaranty agency 
        having an agreement with the Secretary under subsection (c) 
        shall engage in default aversion activities designed to prevent 
        the default by a borrower on a loan covered by such 
        agreement.</DELETED>
        <DELETED>    ``(2) Default prevention fee required.--</DELETED>
                <DELETED>    ``(A) In general.--A guaranty agency, in 
                accordance with the provisions of this paragraph, may 
                transfer from the Federal Student Loan Reserve Fund to 
                the Agency Operating Fund a default prevention fee. 
                Such fee shall be paid for any loan on which a claim 
                for default has not been presented that the guaranty 
                agency successfully brings into current repayment 
                status on or before the 210th day after the loan 
                becomes 60 days delinquent.</DELETED>
                <DELETED>    ``(B) Amount.--The default prevention fee 
                shall be equal to 1 percent of the total unpaid 
                principal and accrued interest on the loan calculated 
                at the time the request is submitted by the lender. 
                Such fee shall not be paid more than once on any loan 
                for which the guaranty agency averts the default unless 
the borrower remained current in payments for at least 24 months prior 
to the subsequent delinquency. A guaranty agency may transfer such fees 
earned under this subsection not more frequently than 
monthly.</DELETED>
                <DELETED>    ``(C) Definition of current repayment 
                status.--For the purpose of this paragraph, the term 
                `current repayment status' means that the borrower is 
                not delinquent, in any respect, in the payment of 
                principal and interest on the loan at the time the 
                guaranty agency qualifies for the default prevention 
                fee.''.</DELETED>
<DELETED>    (h) State Share of Default Costs.--Subsection (n) of 
section 428 (20 U.S.C. 1078) is repealed.</DELETED>

<DELETED>SEC. 426. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY 
              AGENCIES.</DELETED>

<DELETED>    Part B of title IV (20 U.S.C. 1071 et seq.) is amended by 
inserting after section 428 (20 U.S.C. 1078) the following:</DELETED>

<DELETED>``SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY 
              AGENCIES.</DELETED>

<DELETED>    ``(a) Voluntary Agreements.--</DELETED>
        <DELETED>    ``(1) Authority.--The Secretary may enter into a 
        voluntary, flexible agreement, subject to paragraph (2), with 
        guaranty agencies under this section, in lieu of agreements 
        with a guaranty agency under subsections (b) and (c) of section 
        428. The Secretary may waive or modify any requirement under 
        such subsections, except that the Secretary may not waive any 
        statutory requirement pertaining to the terms and conditions 
        attached to student loans, default claim payments made to 
        lenders, or the prohibitions on inducements contained in 
        section 428(b)(3).</DELETED>
        <DELETED>    ``(2) Eligibility.--During fiscal years 1999, 
        2000, and 2001, the Secretary may enter into a voluntary, 
        flexible agreement with not more than 6 guaranty agencies that 
        had 1 or more agreements with the Secretary under subsections 
        (b) and (c) of section 428 as of the day before the date of 
        enactment of the Higher Education Amendments of 1998. Beginning 
        in fiscal year 2002, any guaranty agency or consortium thereof 
        may enter into a similar agreement with the 
        Secretary.</DELETED>
        <DELETED>    ``(3) Report required.--Not later than September 
        30, 2001, the Secretary shall report to the Committee on Labor 
        and Human Resources of the Senate and the Committee on 
        Education and the Workforce of the House of Representatives 
        regarding the impact that the voluntary flexible agreements 
        have had upon program integrity, program and cost efficiencies, 
        and the availability and delivery of student financial aid. 
        Such report shall include--</DELETED>
                <DELETED>    ``(A) a description of each voluntary 
                flexible agreement and the performance goals 
                established by the Secretary for each 
                agreement;</DELETED>
                <DELETED>    ``(B) a list of participating guaranty 
                agencies and the specific statutory or regulatory 
                waivers provided to each guaranty agency;</DELETED>
                <DELETED>    ``(C) a description of the standards by 
                which each agency's performance under the agency's 
                voluntary flexible agreement was assessed and the 
                degree to which each agency achieved the performance 
                standards; and</DELETED>
                <DELETED>    ``(D) an analysis of the fees paid by the 
                Secretary, and the costs and efficiencies achieved 
                under each voluntary agreement.</DELETED>
<DELETED>    ``(b) Terms of Agreement.--An agreement between the 
Secretary and a guaranty agency under this section--</DELETED>
        <DELETED>    ``(1) shall be developed by the Secretary, in 
        consultation with the guaranty agency, on a case-by case 
        basis;</DELETED>
        <DELETED>    ``(2) may be secured by the parties;</DELETED>
        <DELETED>    ``(3) may include provisions--</DELETED>
                <DELETED>    ``(A) specifying the responsibilities of 
                the guaranty agency under the agreement, such as--
                </DELETED>
                        <DELETED>    ``(i) administering the issuance 
                        of insurance on loans made under this part on 
                        behalf of the Secretary;</DELETED>
                        <DELETED>    ``(ii) monitoring insurance 
                        commitments made under this part;</DELETED>
                        <DELETED>    ``(iii) default aversion 
                        activities;</DELETED>
                        <DELETED>    ``(iv) review of default claims 
                        made by lenders;</DELETED>
                        <DELETED>    ``(v) payment of default 
                        claims;</DELETED>
                        <DELETED>    ``(vi) collection of defaulted 
                        loans;</DELETED>
                        <DELETED>    ``(vii) adoption of internal 
                        systems of accounting and auditing that are 
                        acceptable to the Secretary, and reporting the 
                        result thereof to the Secretary in a timely 
                        manner, and on an accurate, and auditable 
                        basis;</DELETED>
                        <DELETED>    ``(viii) timely and accurate 
                        collection and reporting of such other data as 
                        the Secretary may require to carry out the 
                        purposes of the programs under this 
                        title;</DELETED>
                        <DELETED>    ``(ix) monitoring of institutions 
                        and lenders participating in the program under 
                        this part;</DELETED>
                        <DELETED>    ``(x) the performance of other 
                        program functions by the guaranty agency or the 
                        agency's affiliates; and</DELETED>
                        <DELETED>    ``(xi) informational outreach to 
                        schools and students in support of access to 
                        higher education;</DELETED>
                <DELETED>    ``(B) regarding the fees the Secretary 
                shall pay, in lieu of revenues that the guaranty agency 
                may otherwise receive under this part, to the guaranty 
                agency under the agreement, and other funds that the 
                guaranty agency may receive or retain under the 
                agreement, except that in no case may the cost to the 
                Secretary of the agreement, as reasonably projected by 
                the Secretary, exceed the cost to the Secretary, as 
                similarly projected, in the absence of the 
                agreement;</DELETED>
                <DELETED>    ``(C) regarding the use of net revenues, 
                as described in the agreement under this section, for 
                such other activities in support of postsecondary 
                education as may be agreed to by the Secretary and the 
                guaranty agency;</DELETED>
                <DELETED>    ``(D) regarding the standards by which the 
                guaranty agency's performance of the agency's 
                responsibilities under the agreement will be assessed, 
                and the consequences for a guaranty agency's failure to 
                achieve a specified level of performance on one or more 
                performance standards;</DELETED>
                <DELETED>    ``(E) regarding the circumstances in which 
                a guaranty agency's agreement under this section may be 
                ended in advance of the agency's expiration 
                date;</DELETED>
                <DELETED>    ``(F) regarding such other businesses, 
                previously purchased or developed with reserve funds, 
                that relate to the program under this part and in which 
                the Secretary permits the guaranty agency to engage; 
                and</DELETED>
                <DELETED>    ``(G) such other provisions as the 
                Secretary may determine to be necessary to protect the 
                United States from the risk of unreasonable loss and to 
                promote the purposes of this part; and</DELETED>
        <DELETED>    ``(4) shall provide for uniform lender 
        participation with the guaranty agency under the terms of the 
        agreement.</DELETED>
<DELETED>    ``(c) Termination.--At the expiration or early termination 
of an agreement under this section, the Secretary shall reinstate the 
guaranty agency's prior agreements under subsections (b) and (c) of 
section 428, subject only to such additional requirements as the 
Secretary determines to be necessary in order to ensure the efficient 
transfer of responsibilities between the agreement under this section 
and the agreements under subsections (b) and (c) of section 428, and 
including the guaranty agency's compliance with reserve requirements 
under sections 422 and 428.''.</DELETED>

<DELETED>SEC. 427. FEDERAL PLUS LOANS.</DELETED>

<DELETED>    Section 428B (20 U.S.C. 1078-2) is amended--</DELETED>
        <DELETED>    (1) by amending subsection (a) to read as 
        follows:</DELETED>
<DELETED>    ``(a) Authority To Borrow.--</DELETED>
        <DELETED>    ``(1) Authority and eligibility.--Parents of a 
        dependent student shall be eligible to borrow funds under this 
        section in amounts specified in subsection (b), if--</DELETED>
                <DELETED>    ``(A) the parents do not have an adverse 
                credit history as determined pursuant to regulations 
                promulgated by the Secretary; and</DELETED>
                <DELETED>    ``(B) the parents meet such other 
                eligibility criteria as the Secretary may establish by 
                regulation, after consultation with guaranty agencies, 
                eligible lenders, and other organizations involved in 
                student financial assistance.</DELETED>
        <DELETED>    ``(2) Terms, conditions, and benefits.--Except as 
        provided in subsections (c), (d), and (e), loans made under 
        this section shall have the same terms, conditions, and 
        benefits as all other loans made under this part.</DELETED>
        <DELETED>    ``(3) Special rule.--Whenever necessary to carry 
        out the provisions of this section, the terms ``student'' and 
        ``borrower'' as used in this part shall include a parent 
        borrower under this section.''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(f) Verification of Immigration Status and Social 
Security Number.--A parent who wishes to borrow funds under this 
section shall be subject to verification of the parent's--</DELETED>
        <DELETED>    ``(1) immigration status in the same manner as 
        immigration status is verified for students under section 
        484(g); and</DELETED>
        <DELETED>    ``(2) social security number in the same manner as 
        social security numbers are verified for students under section 
        484(p).''.</DELETED>

<DELETED>SEC. 428. FEDERAL CONSOLIDATION LOANS.</DELETED>

<DELETED>    Section 428C(a)(3) (20 U.S.C. 1078-3(a)(3)) is amended--
</DELETED>
        <DELETED>    (1) by amending subparagraph (A) to read as 
        follows: ``(A) For the purpose of this section, the term 
        `eligible borrower' means a borrower who--</DELETED>
                <DELETED>    ``(i) is not subject to a judgment secured 
                through litigation or an order for wage garnishment 
                under section 488A; or</DELETED>
                <DELETED>    ``(ii) at the time of application for a 
                consolidation loan--</DELETED>
                        <DELETED>    ``(I) is in repayment 
                        status;</DELETED>
                        <DELETED>    ``(II) is in a grace period 
                        preceding repayment; or</DELETED>
                        <DELETED>    ``(III) is a defaulted borrower 
                        who has made arrangements to repay the 
                        obligation on the defaulted loans satisfactory 
                        to the holders of the defaulted loans.''; 
                        and</DELETED>
        <DELETED>    (2) in subparagraph (B)(i)--</DELETED>
                <DELETED>    (A) in subclause (I), by striking ``and'' 
                after the semicolon;</DELETED>
                <DELETED>    (B) by redesignating subclause (II) as 
                subclause (III);</DELETED>
                <DELETED>    (C) by inserting after subclause (I) the 
                following:</DELETED>
                <DELETED>    ``(II) with respect to eligible student 
                loans received prior to the date of consolidation that 
                the borrower may wish to include with eligible loans 
                specified in subclause (I) in a later consolidation 
                loan; and''; and</DELETED>
                <DELETED>    (D) in subclause (III) (as redesignated by 
                subparagraph (B)--</DELETED>
                        <DELETED>    (i) by striking ``that loans'' and 
                        inserting ``with respect to loans''; 
                        and</DELETED>
                        <DELETED>    (ii) by inserting ``that'' before 
                        ``may be added''.</DELETED>

<DELETED>SEC. 429. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT 
              LOANS.</DELETED>

<DELETED>    Section 428G (20 U.S.C. 1078G) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)(1), by striking ``The 
        proceeds'' and inserting ``Except for a loan made for the final 
        period of enrollment, that is less than an academic year, in a 
        student's baccalaureate program of study, at an institution 
        with a cohort default rate (as calculated under section 435(m)) 
        that is 5 percent or less, the proceeds''; and</DELETED>
        <DELETED>    (2) in subsection (b)(1), by striking ``The 
        first'' and inserting ``Except for a loan made to a student 
        borrower entering an institution with a cohort default rate (as 
        calculated under section 435(m)) of less than 5 percent, the 
        first''.</DELETED>

<DELETED>SEC. 430. DEFAULT REDUCTION PROGRAM.</DELETED>

<DELETED>    The heading for subsection (b) of section 428F (20 U.S.C. 
1078-6) is amended by striking ``Special Rule'' and inserting 
``Satisfactory Repayment Arrangements To Renew Eligibility''.</DELETED>

<DELETED>SEC. 431. UNSUBSIDIZED LOANS.</DELETED>

<DELETED>    Section 428H (20 U.S.C. 1078-8) is amended--</DELETED>
        <DELETED>    (1) by amending subsection (b) to read as 
        follows:</DELETED>
<DELETED>    ``(b) Eligible Borrowers.--Any student meeting the 
requirements for student eligibility under section 484 (including 
graduate and professional students as defined in regulations 
promulgated by the Secretary) shall be entitled to borrow an 
unsubsidized Stafford loan if the eligible institution at which the 
student has been accepted for enrollment, or at which the student is in 
attendance, has--</DELETED>
        <DELETED>    ``(1) determined and documented the student's need 
        for the loan based on the student's estimated cost of 
        attendance (as determined under section 472) and the student's 
        estimated financial assistance, including a loan which 
        qualifies for interest subsidy payments under section 428; 
        and</DELETED>
        <DELETED>    ``(2) provided the lender a statement--</DELETED>
                <DELETED>    ``(A) certifying the eligibility of the 
                student to receive a loan under this section and the 
                amount of the loan for which such student is eligible, 
                in accordance with subsection (c); and</DELETED>
                <DELETED>    ``(B) setting forth a schedule for 
                disbursement of the proceeds of the loan in 
                installments, consistent with the requirements of 
                section 428G.'';</DELETED>
        <DELETED>    (2) in subsection (d)--</DELETED>
                <DELETED>    (A) in paragraph (2)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        subparagraph (A)--</DELETED>
                                <DELETED>    (I) by inserting ``, as 
                                defined in section 481(d)(2),'' after 
                                ``academic year''; and</DELETED>
                                <DELETED>    (II) by striking ``or in 
                                any period of 7 consecutive months, 
                                whichever is longer,'';</DELETED>
                        <DELETED>    (ii) in subparagraph (C), by 
                        inserting ``and'' after the semicolon; 
                        and</DELETED>
                        <DELETED>    (iii) by inserting before the 
                        matter following subparagraph (C) the 
                        following:</DELETED>
                <DELETED>    ``(D) in the case of a student enrolled in 
                coursework specified in sections 484(b)(3)(B) and 
                484(b)(4)(B)--</DELETED>
                        <DELETED>    ``(i) $4,000 for coursework 
                        necessary for enrollment in an undergraduate 
                        degree or certificate program, and $5,000 for 
                        coursework necessary for enrollment in a 
                        graduate or professional program; and</DELETED>
                        <DELETED>    ``(ii) $5,000 for coursework 
                        necessary for a professional credential or 
                        certification from a State required for 
                        employment as a teacher in an elementary or 
                        secondary school;''; and</DELETED>
                <DELETED>    (B) in paragraph (3), by adding at the end 
                the following: ``The maximum aggregate amount shall not 
                include interest capitalized from an in-school 
                period.''; and</DELETED>
        <DELETED>    (3) in subsection (e)(6), by striking ``10 year 
        repayment period under section 428(b)(1)(D)'' and inserting 
        ``repayment period under section 428(b)(9)''.</DELETED>

<DELETED>SEC. 432. LOAN FORGIVENESS FOR TEACHERS.</DELETED>

<DELETED>    Section 428J (20 U.S.C. 1078-10) is amended to read as 
follows:</DELETED>

<DELETED>``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.</DELETED>

<DELETED>    ``(a) Statement of Purpose.--It is the purpose of this 
section to encourage individuals to enter and continue in the teaching 
profession.</DELETED>
<DELETED>    ``(b) Program Authorized.--The Secretary is authorized to 
carry out a program, through the holder of the loan, of assuming the 
obligation to repay a loan made under section 428 that is eligible for 
interest subsidy, for any new borrower on or after the date of 
enactment of the Higher Education Amendments of 1998, who--</DELETED>
        <DELETED>    ``(1) has been employed as a full-time teacher for 
        3 consecutive complete school years--</DELETED>
                <DELETED>    ``(A) in a school that qualifies under 
                section 465(a)(2)(A) for loan cancellation for Perkins 
                loan recipients who teach in such schools;</DELETED>
                <DELETED>    ``(B) if employed as a secondary school 
                teacher, is teaching a subject area that is relevant to 
                the borrower's academic major as certified by the chief 
                administrative officer of the public or nonprofit 
                private secondary school in which the borrower is 
                employed; and</DELETED>
                <DELETED>    ``(C) if employed as an elementary school 
                teacher, has demonstrated, in accordance with State 
                teacher certification or licensing requirements and as 
                certified by the chief administrative officer of the 
                public or nonprofit private elementary school in which 
                the borrower is employed, knowledge and teaching skills 
                in reading, writing, mathematics and other areas of the 
                elementary school curriculum; and</DELETED>
        <DELETED>    ``(2) is not in default on a loan for which the 
        borrower seeks forgiveness.</DELETED>
<DELETED>    ``(c) Regulations.--The Secretary is authorized to issue 
such regulations as may be necessary to carry out the provisions of 
this section.</DELETED>
<DELETED>    ``(d) Loan Repayment During Continuing Teaching Service.--
</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall assume the 
        obligation to repay through reimbursement to the holder--
        </DELETED>
                <DELETED>    ``(A) 30 percent of the total outstanding 
                amount and applicable interest of subsidized Federal 
                Stafford loans owed by the student borrower after the 
                completion of the fourth or fifth complete school year 
                of service described in subsection (b);</DELETED>
                <DELETED>    ``(B) 40 percent of such total amount 
                after the completion of the sixth complete school year 
                of such service; and</DELETED>
                <DELETED>    ``(C) a total amount for any borrower that 
                shall not exceed $10,000.</DELETED>
        <DELETED>    ``(2) Construction.--Nothing in this section shall 
        be construed to authorize any refunding of any repayment of a 
        loan.</DELETED>
<DELETED>    ``(e) List.--If the list of schools in which a teacher may 
perform service pursuant to subsection (b) is not available before May 
1 of any year, the Secretary may use the list for the year preceding 
the year for which the determination is made to make such service 
determination.</DELETED>
<DELETED>    ``(f) Continued Eligibility.--Any teacher who performs 
service in a school that--</DELETED>
        <DELETED>    ``(1) meets the requirements of subsection 
        (b)(1)(A) in any year during such service; and</DELETED>
        <DELETED>    ``(2) in a subsequent year fails to meet the 
        requirements of such subsection, may continue to teach in such 
        school and shall be eligible for loan forgiveness pursuant to 
        subsection (b).''.</DELETED>

<DELETED>SEC. 433. COMMON FORMS AND FORMATS.</DELETED>

<DELETED>    Section 432(m)(1) (20 U.S.C. 1082(m)(1)) is amended--
</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking ``a common 
        application form and promissory note'' and inserting ``common 
        application forms and promissory notes, or multiyear promissory 
        notes,'';</DELETED>
        <DELETED>    (2) by striking subparagraph (C);</DELETED>
        <DELETED>    (3) by redesignating subparagraph (D) as 
        subparagraph (C); and</DELETED>
        <DELETED>    (4) in subparagraph (C) (as redesignated by 
        paragraph (3))--</DELETED>
                <DELETED>    (A) by inserting ``, application and 
                other'' after ``electronic''; and</DELETED>
                <DELETED>    (B) by adding at the end the following: 
                ``Guaranty agencies, borrowers, and lenders may use 
                electronically printed versions of common forms 
                approved for use by the Secretary.''.</DELETED>

<DELETED>SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE 
              LENDERS.</DELETED>

<DELETED>    Section 433 (20 U.S.C. 1083) is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by amending the matter 
        preceding paragraph (1) to read as follows:</DELETED>
<DELETED>    ``(a) Required Disclosure Before Disbursement.--Each 
eligible lender shall, at or prior to the time such lender disburses a 
loan that is insured or guaranteed under this part (other than a loan 
made under section 428C), provide thorough and accurate loan 
information on such loan to the borrower. Any disclosure required by 
this subsection may be made by an eligible lender by written or 
electronic means, including as part of the application material 
provided to the borrower, as part of the promissory note evidencing the 
loan, or on a separate written form provided to the borrower. Each 
lender shall provide a telephone number, and may provide an electronic 
address, to each borrower through which additional loan information can 
be obtained. The disclosure shall include--''; and</DELETED>
        <DELETED>    (2) in subsection (b), by amending the matter 
        preceding paragraph (1) to read as follows:</DELETED>
<DELETED>    ``(b) Required Disclosure Before Repayment.--Each eligible 
lender shall, at or prior to the start of the repayment period of the 
student borrower on loans made, insured, or guaranteed under this part, 
disclose to the borrower by written or electronic means the information 
required under this subsection. Each eligible lender shall provide a 
telephone number, and may provide an electronic address, to each 
borrower through which additional loan information can be obtained. For 
any loan made, insured, or guaranteed under this part, other than a 
loan made under section 428B or 428C, such disclosure required by this 
subsection shall be made not less than 30 days nor more than 240 days 
before the first payment on the loan is due from the borrower. The 
disclosure shall include--''.</DELETED>

<DELETED>SEC. 435. DEFINITIONS.</DELETED>

<DELETED>    (a) Eligible Institution.--Section 435(a) (20 U.S.C. 
1085(a)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)--</DELETED>
                <DELETED>    (A) by adding after the matter following 
                subparagraph (A)(ii) the following:</DELETED>
        <DELETED>``If an institution continues to participate in a 
        program under this part, and the institution's appeal of the 
        loss of eligibility is unsuccessful, the institution shall be 
        required to pay to the Secretary an amount equal to the amount 
        of interest, special allowance, reinsurance, and any related 
        payments made by the Secretary (or which the Secretary is 
        obligated to make) with respect to loans made under this part 
        to students attending, or planning to attend, that institution 
        during the pendency of such appeal. In order to continue to 
        participate during an appeal under this paragraph, the 
        institution shall provide a letter of credit in favor of the 
        Secretary or other third-party financial guarantees 
        satisfactory to the Secretary in an amount determined by the 
        Secretary to be sufficient to satisfy the institution's 
        potential liability on such loans under the preceding 
        sentence.''; and</DELETED>
                <DELETED>    (B) by amending subparagraph (C) to read 
                as follows:</DELETED>
        <DELETED>    ``(C)(i) This paragraph shall not apply to any 
        institution described in clause (ii), and any such institution 
        that exceeds the threshold percentage in subparagraph (A)(ii) 
        for 2 consecutive years shall submit to the Secretary a default 
        management plan satisfactory to the Secretary and containing 
        criteria designed, in accordance with the regulations of the 
        Secretary, to demonstrate continuous improvement by the 
        institution in the institution's cohort default rate. If the 
        institution fails to submit the required plan, or to satisfy 
        the criteria in the plan, the institution shall be subject to a 
        loss of eligibility in accordance with this paragraph, except 
        as the Secretary may otherwise specify in 
        regulations.</DELETED>
        <DELETED>    ``(ii) An institution referred to in clause (i) 
        is--</DELETED>
                <DELETED>    ``(I) a part B institution within the 
                meaning of section 322(2);</DELETED>
                <DELETED>    ``(II) a tribally controlled community 
                college within the meaning of section 2(a)(4) of the 
                Tribally Controlled Community College Assistance Act of 
                1978; or</DELETED>
                <DELETED>    ``(III) a Navajo Community College under 
                the Navajo Community College Act.'';</DELETED>
        <DELETED>    (2) in the matter following subparagraph (C)--
        </DELETED>
                <DELETED>    (A) by inserting ``for a reasonable period 
                of time, not to exceed 30 days,'' after ``access''; 
                and</DELETED>
                <DELETED>    (B) by striking ``of the affected guaranty 
                agencies and loan servicers for a reasonable period of 
                time, not to exceed 30 days'' and inserting ``used by a 
                guaranty agency in determining whether to pay a claim 
                on a defaulted loan''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(4) Participation rate index.--</DELETED>
                <DELETED>    ``(A) In general.--An institution that 
                demonstrates to the Secretary that the institution's 
                participation rate index is equal to or less than 
                0.0375 for any of the 3 applicable participation rate 
                indices shall not be subject to paragraph (2). The 
                participation rate index shall be determined by 
                multiplying the institution's cohort default rate for 
                loans under part B or D, or weighted average cohort 
                rate for loans under parts B and D, by the percentage 
                of the institution's regular students, enrolled on at 
                least a half-time basis, who received a loan made under 
                part B or D for a 12-month period ending during the 6 
                months immediately preceding the fiscal year for which 
                the cohort of borrowers used to calculate the 
                institution's cohort default rate is 
                determined.</DELETED>
                <DELETED>    ``(B) Data.--An institution shall provide 
                the Secretary with sufficient data to determine the 
                institution's participation rate index within 30 days 
                after receiving an initial notification of the 
                institution's draft cohort default rate.</DELETED>
                <DELETED>    ``(C) Notification.--Prior to publication 
                of a final cohort default rate for an institution that 
                provides the data described in subparagraph (B), the 
                Secretary shall notify the institution of the 
                institution's compliance or noncompliance with 
                subparagraph (A).''.</DELETED>
<DELETED>    (b) Cohort Default Rate.--Section 435(m)(1)(B) (20 U.S.C. 
1085(m)(1)(B)) is amended by striking ``insurance, and, in considering 
appeals with respect to cohort default rates pursuant to subsection 
(a)(3), exclude'' and inserting ``insurance. In considering appeals 
with respect to cohort default rates pursuant to subsection (a)(3), the 
Secretary shall exclude, from the calculation of the number of students 
who entered repayment and from the calculation of the number of 
students who default,''.</DELETED>

<DELETED>SEC. 436. DELEGATION OF FUNCTIONS.</DELETED>

<DELETED>    Section 436 (20 U.S.C. 1086) is amended to read as 
follows:</DELETED>

<DELETED>``SEC. 436. DELEGATION OF FUNCTIONS.</DELETED>

<DELETED>    ``(a) In General.--An eligible lender or guaranty agency 
that contracts with another entity to perform any of the lender's or 
agency's functions under this title, or otherwise delegates the 
performance of such functions to such other entity--</DELETED>
        <DELETED>    ``(1) shall not be relieved of the lender's or 
        agency's duty to comply with the requirements of this title; 
        and</DELETED>
        <DELETED>    ``(2) shall monitor the activities of such other 
        entity for compliance with such requirements.</DELETED>
<DELETED>    ``(b) Special Rule.--A lender that holds a loan made under 
part B in the lender's capacity as a trustee is responsible for 
complying with all statutory and regulatory requirements imposed on any 
other holder of a loan made under this part.''.</DELETED>

<DELETED>SEC. 437. SPECIAL ALLOWANCES.</DELETED>

<DELETED>    (a) Amendments.--Section 438 (20 U.S.C. 1087-1) is 
amended--</DELETED>
        <DELETED>    (1) in subsection (c), by amending paragraph (1) 
        to read as follows:</DELETED>
        <DELETED>    ``(1) Deduction from interest and special 
        allowance subsidies.--(A) Notwithstanding subsection (b), the 
        Secretary shall collect the amount the lender is authorized to 
        charge as an origination fee in accordance with paragraph (2) 
        of this subsection--</DELETED>
                <DELETED>    ``(i) by reducing the total amount of 
                interest and special allowance payable under section 
                428(a)(3)(A) and subsection (b) of this section, 
                respectively, to any holder; or</DELETED>
                <DELETED>    ``(ii) directly from the holder of the 
                loan, if the lender fails or is not required to bill 
                the Secretary for interest and special allowance or 
                withdraws from the program with unpaid loan origination 
                fees.</DELETED>
        <DELETED>    ``(B) If the Secretary collects the origination 
        fee under this subsection through the reduction of interest and 
        special allowance, and the total amount of interest and special 
        allowance payable under section 428(a)(3)(A) and subsection (b) 
        of this section, respectively, is less than the amount the 
        lender was authorized to charge borrowers for origination fees 
        in that quarter, the Secretary shall deduct the excess amount 
        from the subsequent quarters' payments until the total amount 
        has been deducted.'';</DELETED>
        <DELETED>    (2) in subsection (d), by amending paragraph (1) 
        to read as follows:</DELETED>
        <DELETED>    ``(1) Deduction from interest and special 
        allowance subsidies.--</DELETED>
                <DELETED>    ``(A) In general.--Notwithstanding 
                subsection (b), the Secretary shall collect a loan fee 
                in an amount determined in accordance with paragraph 
                (2)--</DELETED>
                        <DELETED>    ``(i) by reducing the total amount 
                        of interest and special allowance payable under 
                        section 428(a)(3)(A) and subsection (b), 
                        respectively, to any holder of a loan; 
                        or</DELETED>
                        <DELETED>    ``(ii) directly from the holder of 
                        the loan, if the lender--</DELETED>
                                <DELETED>    ``(I) fails or is not 
                                required to bill the Secretary for 
                                interest and special allowance 
                                payments; or</DELETED>
                                <DELETED>    ``(II) withdraws from the 
                                program with unpaid loan 
                                fees.</DELETED>
                <DELETED>    ``(B) Special rule.--If the Secretary 
                collects loan fees under this subsection through the 
                reduction of interest and special allowance payments, 
                and the total amount of interest and special allowance 
                payable under section 428(a)(3)(A) and subsection (b), 
                respectively, is less than the amount of such loan 
                fees, then the Secretary shall deduct the amount of the 
                loan fee balance from the amount of interest and 
                special allowance payments that would otherwise be 
                payable, in subsequent quarterly increments until the 
                balance has been deducted.''; and</DELETED>
        <DELETED>    (3) in subsection (e)--</DELETED>
                <DELETED>    (A) by striking paragraphs (1) and (2); 
                and</DELETED>
                <DELETED>    (B) by redesignating paragraphs (3) and 
                (4) as paragraphs (1) and (2), respectively.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 432(f)(1)(D) is amended 
by striking ``required to file a plan for doing business under section 
438(d)'' and inserting ``that meets the requirements of section 
438(e)''.</DELETED>

<DELETED>SEC. 438. STUDY OF MARKET-BASED MECHANISMS FOR DETERMINING 
              STUDENT LOAN INTEREST RATES.</DELETED>

<DELETED>    (a) Study Required.--</DELETED>
        <DELETED>    (1) In general.--The Secretary of the Treasury 
        shall conduct a study of the feasibility of employing market-
        based mechanisms, including some form of auction, for 
        determining student loan interest rates under title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). The 
        study shall include--</DELETED>
                <DELETED>    (A) analysis of the potential impact of 
                the mechanisms on the delivery of student financial 
                aid;</DELETED>
                <DELETED>    (B) analysis of the implications of the 
                mechanisms with respect to student and institutional 
                access to student loan capital;</DELETED>
                <DELETED>    (C) analysis of the potential impact of 
                the mechanisms on the costs of the programs under such 
                title for students and the Federal Government; 
                and</DELETED>
                <DELETED>    (D) a plan for structuring and 
                implementing the mechanisms in such a manner that 
                ensures the cost-effective availability of student 
                loans for students and their families.</DELETED>
<DELETED>    (b) Consultation.--In conducting the study described in 
paragraph (1), the Secretary shall consult with lenders, secondary 
markets, guaranty agencies, institutions of higher education, student 
loan borrowers, and other participants in the student loan programs 
under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.).</DELETED>
<DELETED>    (c) Report to Congress.--The Secretary of the Treasury 
shall report to the Committee on Labor and Human Resources of the 
Senate, and the Committee on Education and the Workforce of the House 
of Representatives not later than September 30, 1999, regarding the 
results of the study described in subsection (a).</DELETED>

         <DELETED>PART C--FEDERAL WORK-STUDY PROGRAMS</DELETED>

<DELETED>SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY 
              SERVICES.</DELETED>

<DELETED>    Section 441 (20 U.S.C. 2751) is amended--</DELETED>
        <DELETED>    (1) in subsection (b), by striking ``$800,000,000 
        for fiscal year 1993'' and inserting ``$900,000,000 for fiscal 
        year 1999''; and</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1), by inserting 
                ``(including child care services provided on campus)'' 
                after ``child care''; and</DELETED>
                <DELETED>    (B) in paragraph (3), by inserting ``, 
                including students with disabilities who are enrolled 
                at the institution'' before the semicolon.</DELETED>

<DELETED>SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.</DELETED>

<DELETED>    Section 443(b) (20 U.S.C. 2753(b)) is amended--</DELETED>
        <DELETED>    (1) by amending paragraph (3) to read as 
        follows:</DELETED>
        <DELETED>    ``(3) provide that in the selection of students 
        for employment under such work-study program, only students who 
        demonstrate financial need in accordance with part F of this 
        title and meet the requirements of section 484 will be 
        assisted, except that if the institution's grant under this 
        part is directly or indirectly based in part on the financial 
        need demonstrated by students who are (A) attending the 
        institution on less than a full-time basis, or (B) independent 
        students, a reasonable portion of the allocation shall be made 
        available to such students;'';</DELETED>
        <DELETED>    (2) in paragraph (5)--</DELETED>
                <DELETED>    (A) by striking ``provide that'' and 
                inserting ``(A) provide that'';</DELETED>
                <DELETED>    (B) by striking ``1993-1994'' and 
                inserting ``1999-2000'';</DELETED>
                <DELETED>    (C) by inserting ``and'' after the 
                semicolon; and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(B) provide that the Federal share of the 
        compensation of students employed in community service shall 
        not exceed 90 percent;''; and</DELETED>
        <DELETED>    (3) in paragraph (6), by striking ``, and to 
        make'' and all that follows through ``such 
        employment''.</DELETED>

<DELETED>SEC. 443. WORK COLLEGES.</DELETED>

<DELETED>    Section 448 (20 U.S.C. 2756b) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)(2)--</DELETED>
                <DELETED>    (A) in subparagraph (C), by striking 
                ``and'' after the semicolon;</DELETED>
                <DELETED>    (B) in subparagraph (D)(ii), by striking 
                the period and inserting a semicolon; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(E) coordinate and carry out joint 
                projects and activities to promote work service 
                learning; and</DELETED>
                <DELETED>    ``(F) carry out a comprehensive, 
                longitudinal study of student academic progress and 
                academic and career outcomes, relative to student self-
                sufficiency in financing their higher education, 
                repayment of student loans, continued community 
                service, kind and quality of service performed, and 
                career choice and community service selected after 
                graduation.''; and</DELETED>
        <DELETED>    (2) in subsection (f), by striking ``$5,000,000 
        for fiscal year 1993'' and inserting ``$7,000,000 for fiscal 
        year 1999''.</DELETED>

 <DELETED>PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM</DELETED>

<DELETED>SEC. 451. SELECTION OF INSTITUTIONS.</DELETED>

<DELETED>    Section 453(c) (20 U.S.C. 1087c(c)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)--</DELETED>
                <DELETED>    (A) in the paragraph heading, by striking 
                ``Transition'';</DELETED>
                <DELETED>    (B) by striking subparagraph (E); 
                and</DELETED>
                <DELETED>    (C) by redesignating subparagraphs (F), 
                (G), and (H) as subparagraphs (E), (F), and (G), 
                respectively; and</DELETED>
        <DELETED>    (2) in paragraph (3)--</DELETED>
                <DELETED>    (A) in the paragraph heading, by striking 
                ``After transition''; and</DELETED>
                <DELETED>    (B) by striking ``For academic year 1995-
                1996 and subsequent academic years, the'' and inserting 
                ``The''.</DELETED>

<DELETED>SEC. 452. TERMS AND CONDITIONS.</DELETED>

<DELETED>    (a) Interest Rates.--Section 455(b) (20 U.S.C. 1087e(b)) 
is amended to read as follows:</DELETED>
<DELETED>    ``(b) Interest Rate.--</DELETED>
        <DELETED>    ``(1) Rates for fdsl and fdusl.--For Federal 
        Direct Stafford/Ford Loans and Federal Direct Unsubsidized 
        Stafford/Ford Loans for which the first disbursement is made on 
        or after July 1, 1998, the applicable rate of interest shall, 
        during any 12-month period beginning on July 1 and ending on 
        June 30, be determined on the preceding June 1 and be equal 
        to--</DELETED>
                <DELETED>    ``(A) the bond equivalent rate of 91-day 
                Treasury bills auctioned at the final auction held 
                prior to such June 1; plus</DELETED>
                <DELETED>    ``(B) 2.3 percent,</DELETED>
        <DELETED>except that such rate shall not exceed 8.25 
        percent.</DELETED>
        <DELETED>    ``(2) In school and grace period rules.--With 
        respect to any Federal Direct Stafford/Ford Loan or Federal 
        Direct Unsubsidized Stafford/Ford Loan for which the first 
        disbursement is made on or after July 1, 1995, the applicable 
        rate of interest for interest which accrues--</DELETED>
                <DELETED>    ``(A) prior to the beginning of the 
                repayment period of the loan; or</DELETED>
                <DELETED>    ``(B) during the period in which principal 
                need not be paid (whether or not such principal is in 
                fact paid) by reason of a provision described in 
                section 428(b)(1)(M) or 427(a)(2)(C),</DELETED>
        <DELETED>shall be determined under paragraph (1) by 
        substituting `1.7 percent' for `2.3 percent'.</DELETED>
        <DELETED>    ``(3) PLUS loans.--With respect to Federal Direct 
        PLUS Loan for which the first disbursement is made on or after 
        July 1, 1998, the applicable rate of interest shall be 
        determined under paragraph (1)--</DELETED>
                <DELETED>    ``(A) by substituting `3.1 percent' for 
                `2.3 percent'; and</DELETED>
                <DELETED>    ``(B) by substituting `9.0 percent' for 
                `8.25 percent'.</DELETED>
        <DELETED>    ``(4) Publication.--The Secretary shall determine 
        the applicable rates of interest under this subsection after 
        consultation with the Secretary of the Treasury and shall 
        publish such rate in the Federal Register as soon as 
        practicable after the date of determination.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by this section 
shall apply with respect to any loan made under part D of title IV of 
the Higher Education Act of 1965 for which the first disbursement is 
made on or after July 1, 1998.</DELETED>

<DELETED>SEC. 453. CONTRACTS.</DELETED>

<DELETED>    Section 456(b) (20 U.S.C. 1087f(b)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (3), by inserting ``and'' after 
        the semicolon;</DELETED>
        <DELETED>    (2) by striking paragraph (4); and</DELETED>
        <DELETED>    (3) by redesignating paragraph (5) as paragraph 
        (4).</DELETED>

<DELETED>SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES.</DELETED>

<DELETED>    Section 458 (20 U.S.C. 1087h) is amended--</DELETED>
        <DELETED>    (1) by amending subsection (a) to read as 
        follows:</DELETED>
<DELETED>    ``(a) Administrative Expenses.--</DELETED>
        <DELETED>    ``(1) In general.--Each fiscal year there shall be 
        available to the Secretary, from funds not otherwise 
        appropriated, funds to be obligated for--</DELETED>
                <DELETED>    ``(A) administrative costs under this part 
                and part B, including the costs of the direct student 
                loan programs under this part; and</DELETED>
                <DELETED>    ``(B) account maintenance fees payable to 
                guaranty agencies under part B and calculated in 
                accordance with paragraph (2), not to exceed (from such 
                funds not otherwise appropriated) $626,000,000 in 
                fiscal year 1999, $726,000,000 in fiscal year 2000, 
                $770,000,000 in fiscal year 2001, $780,000,000 in 
                fiscal year 2002, and $795,000,000 in fiscal year 
                2003.</DELETED>
        <DELETED>    ``(2) Account maintenance fees.--Account 
        maintenance fees under subparagraph (B) shall be paid quarterly 
        and deposited in the Agency Operating Fund established under 
        section 422B.</DELETED>
        <DELETED>    ``(3) Carryover.--The Secretary may carry over 
        funds made available under this section to a subsequent fiscal 
        year.''; and</DELETED>
        <DELETED>    (2) by amending subsection (b) to read as 
        follows:</DELETED>
<DELETED>    ``(b) Calculation Basis.--Account maintenance fees payable 
to guaranty agencies under paragraph (1)(B) shall be calculated--
</DELETED>
        <DELETED>    ``(1) for fiscal years 1999 and 2000, on the basis 
        of 0.12 percent of the original principal amount of outstanding 
        loans on which insurance was issued under part B; and</DELETED>
        <DELETED>    ``(2) for fiscal year 2001, 2002, and 2003, on the 
        basis of 0.10 percent of the original principal amount of 
        outstanding loans on which insurance was issued under part 
        B.''.</DELETED>

<DELETED>SEC. 455. LOAN CANCELLATION FOR TEACHERS.</DELETED>

<DELETED>    Part D of title IV (20 U.S.C. 1087a et seq.) is amended by 
adding at the end the following:</DELETED>

<DELETED>``SEC. 459. LOAN CANCELLATION FOR TEACHERS.</DELETED>

<DELETED>    ``(a) Statement of Purpose.--It is the purpose of this 
section to encourage individuals to enter and continue in the teaching 
profession.</DELETED>
<DELETED>    ``(b) Program Authorized.--The Secretary is authorized to 
carry out a program of canceling the obligation to repay a Federal 
Direct Stafford/Ford Loan made under this part that is eligible for an 
interest subsidy, for any new borrower on or after the date of 
enactment of the Higher Education Amendments of 1998, who--</DELETED>
        <DELETED>    ``(1) has been employed as a full-time teacher for 
        3 consecutive complete school years--</DELETED>
                <DELETED>    ``(A) in a school that qualifies under 
                section 465(a)(2)(A) for loan cancellation for Perkins 
                loan recipients who teach in such schools;</DELETED>
                <DELETED>    ``(B) if employed as a secondary school 
                teacher, is teaching a subject area that is relevant to 
                the borrower's academic major as certified by the chief 
                administrative officer of the public or non-profit 
                private secondary school in which the borrower is 
                employed; and</DELETED>
                <DELETED>    ``(C) if employed as an elementary school 
                teacher, has demonstrated, in accordance with State 
                teacher certification or licensing requirements and as 
                certified by the chief administrative officer of the 
                public or nonprofit private elementary school in which 
                the borrower is employed, knowledge and teaching skills 
                in reading, writing, mathematics and other areas of the 
                elementary school curriculum; and</DELETED>
        <DELETED>    ``(2) is not in default on a loan for which the 
        borrower seeks forgiveness.</DELETED>
<DELETED>    ``(c) Regulations.--The Secretary is authorized to issue 
such regulations as may be necessary to carry out the provisions of 
this section.</DELETED>
<DELETED>    ``(d) Loan Cancellation During Continuing Teaching 
Service.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall cancel the 
        obligation to repay--</DELETED>
                <DELETED>    ``(A) 30 percent of the total outstanding 
                amount and applicable interest of subsidized Federal 
                Direct Stafford/Ford loans owed by the student borrower 
                after the completion of the fourth or fifth complete 
                school year of service described in subsection 
                (b);</DELETED>
                <DELETED>    ``(B) 40 percent of such total amount 
                after the completion of the sixth complete school year 
                of such service; and</DELETED>
                <DELETED>    ``(C) a total amount for any borrower that 
                shall not exceed $ 10,000.</DELETED>
        <DELETED>    ``(2) Construction.--Nothing in this section shall 
        be construed to authorize any refunding of any canceled 
        loan.</DELETED>
<DELETED>    ``(e) List.--If the list of schools in which a teacher may 
perform service pursuant to subsection (b) is not available before May 
1 of any year, the Secretary may use the list for the year preceding 
the year for which the determination is made to make such service 
determination.</DELETED>
<DELETED>    ``(f) Continued Eligibility.--Any teacher who performs 
service in a school that--</DELETED>
        <DELETED>    ``(1) meets the requirements of subsection 
        (b)(1)(A) in any year during such service; and</DELETED>
        <DELETED>    ``(2) in a subsequent year fails to meet the 
        requirements of such subsection, may continue to teach in such 
        school and shall be eligible for loan cancellation pursuant to 
        subsection (b).''.</DELETED>

            <DELETED>PART E--FEDERAL PERKINS LOANS</DELETED>

<DELETED>SEC. 461. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    Subsection (b) of section 461 (20 U.S.C. 1087aa) is 
amended by striking ``1993'' and inserting ``1999''.</DELETED>

<DELETED>SEC. 462. ALLOCATION OF FUNDS.</DELETED>

<DELETED>    (a) Amendments.--Section 462 (20 U.S.C. 1087bb) is 
amended--</DELETED>
        <DELETED>    (1) in the matter preceding subparagraph (A) of 
        subsection (d)(3), by striking ``the Secretary, for'' and all 
        that follows through ``years,'';</DELETED>
        <DELETED>    (2) by amending subsection (f) to read as 
        follows:</DELETED>
<DELETED>    ``(f) Default Penalties.--</DELETED>
        <DELETED>    ``(1) In general.--For fiscal year 1998 and any 
        succeeding fiscal year, any institution with a cohort default 
        rate (as defined under subsection (h)) that equals or exceeds 
        25 percent shall have a default penalty of zero.</DELETED>
        <DELETED>    ``(2) Ineligibility.--</DELETED>
                <DELETED>    ``(A) In general.--For fiscal year 1998 
                and any succeeding fiscal year, any institution with a 
                cohort default rate (as defined in subsection (h)) that 
                equals or exceeds 50 percent for each of the 3 most 
                recent years for which data are available shall not be 
                eligible to participate in a program under this part 
                for the fiscal year for which the determination is made 
                and the 2 succeeding fiscal years, unless, within 30 
                days of receiving notification from the Secretary of 
                the loss of eligibility under this paragraph, the 
                institution appeals the loss of eligibility to the 
                Secretary. The Secretary shall issue a decision on any 
                such appeal within 45 days after the submission of the 
                appeal. Such decision may permit the institution to 
                continue to participate in a program under this part 
                if--</DELETED>
                        <DELETED>    ``(i) the institution demonstrates 
                        to the satisfaction of the Secretary that the 
                        Secretary's calculation of the institution's 
                        cohort default rate is not accurate, and that 
                        recalculation would reduce the institution's 
                        cohort default rate for any of the 3 fiscal 
                        years below 50 percent; or</DELETED>
                        <DELETED>    ``(ii) there are, in the judgment 
                        of the Secretary, exceptional mitigating 
                        circumstances such as a small number of 
                        borrowers entering repayment, that would make 
                        the application of this subparagraph 
                        inequitable.</DELETED>
                <DELETED>    ``(B) Continued participation.--During an 
                appeal under subparagraph (A), the Secretary may permit 
                the institution to continue to participate in a program 
                under this part.</DELETED>
                <DELETED>    ``(C) Definition.--For the purposes of 
                subparagraph (A), the term `loss of eligibility' shall 
                be defined as the mandatory liquidation of an 
                institution's student loan fund, and assignment of the 
                institution's outstanding loan portfolio to the 
                Secretary.'';</DELETED>
        <DELETED>    (3) by amending paragraph (1) of subsection (g) to 
        read as follows: ``(1) For award year 1998 and subsequent 
        years, the maximum cohort default rate is 25 percent.''; 
        and</DELETED>
        <DELETED>    (4) in subsection (h)--</DELETED>
                <DELETED>    (A) in the subsection heading, by striking 
                ``Definitions of Default Rate and'' and inserting 
                ``Definition of'';</DELETED>
                <DELETED>    (B) by striking paragraphs (1) and 
                (2);</DELETED>
                <DELETED>    (C) by redesignating paragraphs (3) and 
                (4) as paragraphs (1) and (2), respectively;</DELETED>
                <DELETED>    (D) in paragraph (1) (as redesignated by 
                subparagraph (C)--</DELETED>
                        <DELETED>    (i) by striking subparagraph (B); 
                        and</DELETED>
                        <DELETED>    (ii) by redesignating 
                        subparagraphs (C) through (G) as subparagraphs 
                        (B) through (F), respectively; and</DELETED>
                <DELETED>    (E) in the matter preceding subparagraph 
                (A) of paragraph (2) (as redesignated by subparagraph 
                (C)), by striking ``A loan'' and inserting ``For 
                purposes of calculating the cohort default rate under 
                this subsection, a loan''.</DELETED>
<DELETED>    (b) Conforming Amendments.--Section 462 (20 U.S.C. 1087bb) 
is amended--</DELETED>
        <DELETED>    (1) in the matter following paragraphs (1)(B) and 
        (2)(D)(ii) of subsection (a), by inserting ``cohort'' before 
        ``default'' each place the term appears;</DELETED>
        <DELETED>    (2) in the matter following paragraphs (2)(B) and 
        (3)(C) of subsection (c), by inserting ``cohort'' before 
        ``default'' each place the term appears;</DELETED>
        <DELETED>    (3) in subsection (e)(2), by inserting ``cohort'' 
        before ``default''; and</DELETED>
        <DELETED>    (4) in subsection (h)(1)(F) (as redesignated by 
        subparagraphs (C) and (D)(ii) of subsection (a)(4)), by 
        inserting ``cohort'' before ``default''.</DELETED>

<DELETED>SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER 
              EDUCATION.</DELETED>

<DELETED>    Section 463 (20 U.S.C. 1087cc) is amended--</DELETED>
        <DELETED>    (1) by amending subparagraph (B) of subsection 
        (a)(2) to read as follows:</DELETED>
                <DELETED>    ``(B) a capital contribution by an 
                institution in an amount equal to one-third of the 
                Federal capital contributions described in subparagraph 
                (A);'';</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (2)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        subparagraph (A), by striking ``by the 
                        Secretary'' and all that follows through ``of--
                        '' and inserting ``by the Secretary or an 
                        institution, as the case may be, to such 
                        organizations, with respect to any loan held by 
                        the Secretary or the institution, respectively, 
                        of--'';</DELETED>
                        <DELETED>    (ii) by amending subparagraph (A) 
                        to read as follows:</DELETED>
                <DELETED>    ``(A) the date of disbursement and the 
                amount of such loans made to any borrower under this 
                part at the time of disbursement of the 
                loan;'';</DELETED>
                        <DELETED>    (iii) in subparagraph (B)--
                        </DELETED>
                                <DELETED>    (I) by inserting ``the 
                                repayment and'' after ``concerning''; 
                                and</DELETED>
                                <DELETED>    (II) by striking ``any 
                                defaulted'' and inserting ``such''; 
                                and</DELETED>
                        <DELETED>    (iv) in subparagraph (C), by 
                        inserting ``, or upon cancellation or discharge 
                        of the borrower's obligation on the loan for 
                        any reason'' before the period;</DELETED>
                <DELETED>    (B) in paragraph (3)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        subparagraph (A), by striking ``until--'' and 
                        inserting ``until the loan is paid in full.''; 
                        and</DELETED>
                        <DELETED>    (ii) by striking subparagraphs (A) 
                        and (B); and</DELETED>
                <DELETED>    (C) by amending paragraph (4) to read as 
                follows:</DELETED>
        <DELETED>    ``(4)(A) Except as provided in subparagraph (B), 
        an institution of higher education, after consultation with the 
        Secretary and pursuant to the agreements entered into under 
        paragraph (1), shall disclose at least annually to any credit 
        bureau organization with which the Secretary has such an 
        agreement the information set forth in paragraph (2), and shall 
        disclose promptly to such credit bureau organization any 
        changes to the information previously disclosed.</DELETED>
        <DELETED>    ``(B) The Secretary may promulgate regulations 
        establishing criteria under which an institution of higher 
        education may cease reporting the information described in 
        paragraph (2) before a loan is paid in full.''.</DELETED>

<DELETED>SEC. 464. TERMS OF LOANS.</DELETED>

<DELETED>    Section 464 (20 U.S.C. 1087dd) is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by amending paragraph (2) 
        to read as follows:</DELETED>
        <DELETED>    ``(2)(A) Except as provided in paragraph (4), the 
        total of loans made to a student in any academic year or its 
        equivalent by an institution of higher education from a loan 
        fund established pursuant to an agreement under this part shall 
        not exceed--</DELETED>
                <DELETED>    ``(i) $4,000, in the case of a student who 
                has not successfully completed a program of 
                undergraduate education; or</DELETED>
                <DELETED>    ``(ii) $6,000, in the case of a graduate 
                or professional student (as defined in regulations 
                issued by the Secretary).</DELETED>
        <DELETED>    ``(B) Except as provided in paragraph (4), the 
        aggregate of the loans for all years made to a student by 
        institutions of higher education from loan funds established 
        pursuant to agreements under this part may not exceed--
        </DELETED>
                <DELETED>    ``(i) $40,000, in the case of any graduate 
                or professional student (as defined by regulations 
                issued by the Secretary, and including any loans from 
                such funds made to such person before such person 
                became a graduate or professional student);</DELETED>
                <DELETED>    ``(ii) $20,000, in the case of a student 
                who has successfully completed 2 years of a program of 
                education leading to a bachelor's degree but who has 
                not completed the work necessary for such a degree 
                (determined under regulations issued by the Secretary, 
                and including any loans from such funds made to such 
                person before such person became such a student); 
                and</DELETED>
                <DELETED>    ``(iii) $8,000, in the case of any other 
                student.</DELETED>
        <DELETED>    ``(C)(i) The total of loans made to a student 
        described in clause (ii) in any academic year or its equivalent 
        by an institution of higher education from loan funds 
        established pursuant to agreements under this part may not 
        exceed--</DELETED>
                <DELETED>    ``(I) $8,000 for each of the third and 
                fourth years of the program of instruction leading to a 
                bachelor's degree; or</DELETED>
                <DELETED>    ``(II) $10,000 for the first year of 
                graduate study (as defined in regulations issued by the 
                Secretary).</DELETED>
        <DELETED>    ``(ii) A student referred to in clause (i) is any 
        student--</DELETED>
                <DELETED>    ``(I) who is a junior in a program of 
                instruction leading to a bachelor's degree;</DELETED>
                <DELETED>    ``(II) who states in writing that the 
                student will pursue a course of study to become an 
                elementary or secondary school teacher; and</DELETED>
                <DELETED>    ``(III) who states in writing that the 
                student intends to become a full-time teacher in a 
                school which meets the requirements of section 
                465(a)(2)(A).</DELETED>
        <DELETED>    ``(iii) Each institution shall provide a report to 
        the Secretary annually containing the number of loans under 
        this subparagraph that are made, the amount of each loan, and 
        whether students benefiting from the higher loan limits met the 
        requirements for receiving those loans.</DELETED>
        <DELETED>    ``(iv) If 3 years after the date of enactment of 
        the Higher Education Amendments of 1998, the Secretary 
        determines that an institution has engaged in a pattern of 
        abuse of this subparagraph, the Secretary may reduce or 
        terminate the institution's Federal capital 
        contribution.'';</DELETED>
        <DELETED>    (2) in subsection (b), by amending paragraph (2) 
        to read as follows:</DELETED>
        <DELETED>    ``(2) If the institution's capital contribution 
        under section 462 is directly or indirectly based in part on 
        the financial need demonstrated by students who are (A) 
        attending the institution less than full time; or (B) 
        independent students, a reasonable portion of the loans made 
        from the institution's student loan fund containing the 
        contribution shall be made available to such 
        students.'';</DELETED>
        <DELETED>    (3) in subsection (c)(1)--</DELETED>
                <DELETED>    (A) in subparagraph (D), by striking ``(i) 
                3 percent'' and all that follows through ``or 
                (iii)'';</DELETED>
                <DELETED>    (B) by redesignating subparagraphs (H) and 
                (I) as subparagraphs (I) and (J), respectively; 
                and</DELETED>
                <DELETED>    (C) by inserting after subparagraph (G) 
                the following:</DELETED>
                <DELETED>    ``(H) shall provide that, in the case of a 
                loan made on or after July 1, 1999, the loan shall be 
                considered in default (except as otherwise provided in 
                section 462(h)) if the borrower of a loan made under 
                this part fails to make an installment payment when 
                due, or to meet any other term of the promissory note 
                or written repayment agreement, and such failure 
                persists for--</DELETED>
                        <DELETED>    ``(i) 180 days in the case of a 
                        loan that is repayable in monthly installments; 
                        or</DELETED>
                        <DELETED>    ``(ii) 240 days in the case of a 
                        loan that is repayable in less frequent 
                        installments;''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
<DELETED>    ``(g) Discharge.--</DELETED>
        <DELETED>    ``(1) In general.--If a student borrower who 
        received a loan made under this part on or after January 1, 
        1986, is unable to complete the program in which such student 
        is enrolled due to the closure of the institution, then the 
        Secretary shall discharge the borrower's liability on the loan 
        (including the interest and collection fees) by repaying the 
        amount owed on the loan and shall subsequently pursue any claim 
        available to such borrower against the institution and the 
        institution's affiliates and principals, or settle the loan 
        obligation pursuant to the financial responsibility standards 
        described in section 498(c).</DELETED>
        <DELETED>    ``(2) Assignment.--A borrower whose loan has been 
        discharged pursuant to this subsection shall be deemed to have 
        assigned to the United States the right to a loan refund in an 
        amount that does not exceed the amount discharged against the 
        institution and the institution's affiliates and 
        principals.</DELETED>
        <DELETED>    ``(3) Eligibility for additional assistance.--The 
        period during which a student was unable to complete a course 
        of study due to the closing of the institution shall not be 
        considered for purposes of calculating the student's period of 
        eligibility for additional assistance under this 
        title.</DELETED>
        <DELETED>    ``(4) Special rule.--A borrower whose loan has 
        been discharged pursuant to this subsection shall not be 
        precluded, because of that discharge, from receiving additional 
        grant, loan, or work assistance under this title for which the 
        borrower would be otherwise eligible (but for the default on 
        the discharged loan). The amount discharged under this 
        subsection shall not be considered income for purposes of the 
        Internal Revenue Code of 1986.</DELETED>
        <DELETED>    ``(5) Reporting.--The Secretary or institution, as 
        the case may be, shall report to credit bureaus with respect to 
        loans that have been discharged pursuant to this 
        subsection.</DELETED>
<DELETED>    ``(h) Rehabilitation of Loans.--</DELETED>
        <DELETED>    ``(1) Rehabilitation.--</DELETED>
                <DELETED>    ``(A) In general.--If the borrower of a 
                loan made under this part who has defaulted on the loan 
                makes 12 ontime, consecutive, monthly payments of 
                amounts owed on the loan, as determined by the 
                institution, the loan shall be considered 
                rehabilitated, and the institution that made that loan 
                (or the Secretary, in the case of a loan held by the 
                Secretary) shall instruct any credit bureau 
                organization or credit reporting agency to which the 
                default was reported to remove the default from the 
                borrower's credit history.</DELETED>
                <DELETED>    ``(B) Comparable conditions.--As long as 
                the borrower continues to make scheduled repayments on 
a loan rehabilitated under this paragraph, the rehabilitated loan shall 
be subject to the same terms and conditions, and qualify for the same 
benefits and privileges, as other loans made under this part.</DELETED>
                <DELETED>    ``(C) Additional assistance.--The borrower 
                of a rehabilitated loan shall not be precluded by 
                section 484 from receiving additional grant, loan, or 
                work assistance under this title (for which the 
                borrower is otherwise eligible) on the basis of 
                defaulting on the loan prior to such 
                rehabilitation.</DELETED>
                <DELETED>    ``(D) Limitations.--A borrower only once 
                may obtain the benefit of this paragraph with respect 
                to rehabilitating a loan under this part.</DELETED>
        <DELETED>    ``(2) Restoration of eligibility.--If the borrower 
        of a loan made under this part who has defaulted on that loan 
        makes 6 ontime, consecutive, monthly payments of amounts owed 
        on such loan, the borrower's eligibility for grant, loan, or 
        work assistance under this title shall be restored. A borrower 
        only once may obtain the benefit of this paragraph with respect 
        to restored eligibility.</DELETED>
<DELETED>    ``(i) Incentive Repayment Program.--</DELETED>
        <DELETED>    ``(1) In general.--Each institution of higher 
        education may establish, with the approval of the Secretary, an 
        incentive repayment program designed to reduce default and to 
        replenish student loan funds established under this part. Each 
        such incentive repayment program may--</DELETED>
                <DELETED>    ``(A) offer a reduction of the interest 
                rate on a loan on which the borrower has made 48 
                consecutive monthly repayments, but in no event may the 
                rate be reduced by more than 1 percent;</DELETED>
                <DELETED>    ``(B) provide for a discount on the 
                balance owed on a loan on which the borrower pays the 
                principal and interest in full prior to the end of the 
                applicable repayment period, but in no event may the 
                discount exceed 5 percent of the unpaid principal 
                balance due on the loan at the time the early repayment 
                is made; and</DELETED>
                <DELETED>    ``(C) include such other incentive 
                repayment options as the institution determines will 
                carry out the objectives of this subsection.</DELETED>
        <DELETED>    ``(2) Limitation.--No incentive repayment option 
        under an incentive repayment program authorized by this 
        subsection may be paid for with Federal funds, including any 
        Federal funds from the student loan fund, nor can an incentive 
        repayment option be paid for with institutional funds from the 
        student loan fund.''.</DELETED>

<DELETED>SEC. 465. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 
              FUNDS.</DELETED>

<DELETED>    Section 466 (20 U.S.C. 1087ff) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph 
                (1)--</DELETED>
                        <DELETED>    (i) by striking ``1996'' and 
                        inserting ``2003''; and</DELETED>
                        <DELETED>    (ii) by striking ``1997'' and 
                        inserting ``2004''; and</DELETED>
                <DELETED>    (B) in paragraph (1), by striking ``1996'' 
                and inserting ``2003'';</DELETED>
        <DELETED>    (2) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking ``2005'' and inserting 
                ``2012''; and</DELETED>
                <DELETED>    (B) by striking ``1996'' and inserting 
                ``2003''; and</DELETED>
        <DELETED>    (3) in subsection (c), by striking ``1997'' and 
        inserting ``2004''.</DELETED>

<DELETED>SEC. 466. PERKINS REVOLVING FUND.</DELETED>

<DELETED>    (a) Repeal.--Section 467 (20 U.S.C. 1087gg) is 
repealed.</DELETED>
<DELETED>    (b) Transfer of Balance.--Any funds in the Perkins 
Revolving Loan Fund on the date of enactment of this Act shall be 
transferred to and deposited in the Treasury.</DELETED>

                <DELETED>PART F--NEED ANALYSIS</DELETED>

<DELETED>SEC. 471. COST OF ATTENDANCE.</DELETED>

<DELETED>    Section 472 (20 U.S.C. 1087ll) is amended--</DELETED>
        <DELETED>    (1) in paragraph (3)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking ``of 
                not less than $1,500'' and inserting ``determined by 
                the institution''; and</DELETED>
                <DELETED>    (B) in subparagraph (C), by striking ``, 
                except that the amount may not be less than $2,500''; 
                and</DELETED>
        <DELETED>    (2) in paragraph (11), by striking ``placed'' and 
        inserting ``engaged''.</DELETED>

<DELETED>SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT 
              STUDENTS.</DELETED>

<DELETED>    Section 475 (20 U.S.C. 1087oo) is amended--</DELETED>
        <DELETED>    (1) in subsection (g)--</DELETED>
                <DELETED>    (A) in paragraph (2)--</DELETED>
                        <DELETED>    (i) in subparagraph (D)--
                        </DELETED>
                                <DELETED>    (I) by striking ``$1,750'' 
                                and inserting ``$2,200''; and</DELETED>
                                <DELETED>    (II) by striking ``and'' 
                                after the semicolon;</DELETED>
                        <DELETED>    (ii) in subparagraph (E), by 
                        striking the period and inserting ``; and''; 
                        and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
                <DELETED>    ``(F) an allowance for parents' negative 
                available income, determined in accordance with 
                paragraph (6).''; and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(6) Allowance for parents' negative available 
        income.--The allowance for parents' negative available income 
        is the negative amount, if any, remaining after all allowances 
        have been subtracted from parents' total income under 
        subsection (c)(1).''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(j) Adjustments to Students Contribution for Enrollment 
Periods of Less Than Nine Months.--For periods of enrollment of less 
than 9 months, the student's contribution from adjusted available 
income (as determined under subsection (g)) is determined, for purposes 
other than subpart 2 of part A, by dividing the amount determined under 
such subsection by 9, and multiplying the result by the number of 
months in the period of enrollment.''.</DELETED>

<DELETED>SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT 
              DEPENDENTS OTHER THAN A SPOUSE.</DELETED>

<DELETED>    Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) 
is amended--</DELETED>
        <DELETED>    (1) in subclause (I), by striking ``$3,000'' and 
        inserting ``$4,250'';</DELETED>
        <DELETED>    (2) in subclause (II), by striking ``$3,000'' and 
        inserting ``$4,250''; and</DELETED>
        <DELETED>    (3) in subclause (III), by striking ``$6,000'' and 
        inserting ``$7,250''.</DELETED>

<DELETED>SEC. 474. REGULATIONS; UPDATED TABLES AND AMOUNTS.</DELETED>

<DELETED>    Section 478(b) (20 U.S.C. 1087rr(b)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``For each academic year'' and 
        inserting the following:</DELETED>
        <DELETED>    ``(1) Revised tables.--For each academic year''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(2) Revised amounts.--For each academic year 
        after academic year 1997-1998, the Secretary shall publish in 
        the Federal Register revised income protection allowances for 
        the purpose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). Such 
        revised allowances shall be developed by increasing each of the 
        dollar amounts contained in such section by a percentage equal 
        to the estimated percentage increase in the Consumer Price 
        Index (as determined by the Secretary) between December 1996 
        and the December next preceding the beginning of such academic 
        year, and rounding the result to the nearest $10.''.</DELETED>

<DELETED>SEC. 475. REFUSAL OR ADJUSTMENT OF LOAN 
              CERTIFICATIONS.</DELETED>

<DELETED>    Subsection (c) of section 479A (20 U.S.C. 1087tt) is 
amended to read as follows:</DELETED>
<DELETED>    ``(c) Refusal or Adjustment of Loan Certifications.--An 
eligible institution may refuse to certify a statement that permits a 
student to receive a loan under part B, or refuse to make a loan under 
part D, or may certify a loan amount or make a loan that is less than 
the student's determination of need (as determined under this part), if 
the reason for the action is documented and provided in written form to 
the student. No eligible institution shall discriminate against any 
borrower or applicant in obtaining a loan on the basis of race, 
national origin, religion, sex, marital status, age, or disability 
status.''.</DELETED>

             <DELETED>PART G--GENERAL PROVISIONS</DELETED>

<DELETED>SEC. 481. MASTER CALENDAR.</DELETED>

<DELETED>    Section 482 (20 U.S.C. 1089) is amended--</DELETED>
        <DELETED>    (1) in subsection (a), by adding at the end the 
        following:</DELETED>
        <DELETED>    ``(3) To the extent feasible, the Secretary shall 
        notify eligible institutions and vendors by December 1 prior to 
        the start of an award year of minimal hardware and software 
        requirements necessary to administer programs under this 
        title.''; and</DELETED>
        <DELETED>    (2) by amending subsection (c) to read as 
        follows:</DELETED>
<DELETED>    ``(c) Delay of Effective Date of Late Publications.--(1) 
Except as provided in paragraph (2), any regulatory changes initiated 
by the Secretary affecting the programs under this title that have not 
been published in final form by November 1 prior to the start of the 
award year shall not become effective until the beginning of the second 
award year after such November 1 date.</DELETED>
<DELETED>    ``(2)(A) The Secretary may designate any regulatory 
provision that affects the programs under this title and is published 
in final form after November 1 as one that an entity subject to the 
provision may, in the entity's discretion, choose to implement prior to 
the effective date described in paragraph (1). The Secretary may 
specify in the designation when, and under what conditions, an entity 
may implement the provision prior to that effective date. The Secretary 
shall publish any designation under this subparagraph in the Federal 
Register.</DELETED>
<DELETED>    ``(B) If an entity chooses to implement a regulatory 
provision prior to the effective date described in paragraph (1), as 
permitted by subparagraph (A), the provision shall be effective with 
respect to that entity in accordance with the terms of the Secretary's 
designation.''.</DELETED>

<DELETED>SEC. 482. FORMS AND REGULATIONS.</DELETED>

<DELETED>    Section 483 (20 U.S.C. 1090) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in the subsection heading, by striking 
                ``Form'' and inserting ``Form Development'';</DELETED>
                <DELETED>    (B) by amending paragraph (1) to read as 
                follows:</DELETED>
        <DELETED>    ``(1) Single form requirements.--The Secretary, in 
        cooperation with representatives of agencies and organizations 
        involved in student financial assistance, shall produce, 
        distribute, and process free of charge a common financial 
        reporting form (which shall include electronic versions of the 
        form) to be used--</DELETED>
                <DELETED>    ``(A) to determine the need (including the 
                expected family contribution and, if appropriate, cost 
                of attendance) and eligibility of a student for 
financial assistance under parts A, C, D, and E; and</DELETED>
                <DELETED>    ``(B) to determine the need (including the 
                expected family contribution and cost of attendance) of 
                a student for the purposes of part B.</DELETED>
        <DELETED>    ``(2) State data items.--The Secretary shall 
        include on the form developed under this subsection such data 
        items, selected in consultation with the States to assist the 
        States in awarding State student financial assistance, as the 
        Secretary determines are appropriate for inclusion.</DELETED>
        <DELETED>    ``(3) Parent's social security number.--The 
        Secretary shall include on the form developed under this 
        paragraph space for the social security number of parents of 
        dependent students seeking financial assistance under this 
        title.</DELETED>
        <DELETED>    ``(4) Use.--The Secretary shall require that the 
        form developed under this paragraph be used for the purpose of 
        collecting eligibility and other data for purposes of part B, 
        including the applicant's choice of lender.''; and</DELETED>
                <DELETED>    (C) in paragraph (3)--</DELETED>
                        <DELETED>    (i) by striking ``Institutions of 
                        higher education and States shall receive'' and 
                        inserting ``The Secretary shall provide''; 
                        and</DELETED>
                        <DELETED>    (ii) by striking ``by the 
                        Secretary''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(g) Payment for Data.--The Secretary may pay such 
charges as the Secretary determines are necessary to obtain data that 
the Secretary considers essential to the efficient administration of 
the programs under this title.</DELETED>
<DELETED>    ``(h) Multiyear Promissory Note.--The Secretary shall 
require, for loans made under this title for periods of enrollment 
beginning on or after July 1, 2000, the use of a promissory note 
applicable to more than 1 academic year, or more than 1 type of loan 
made under this title. Prior to implementing this subsection, the 
Secretary shall develop and test such a promissory note on a limited or 
pilot basis.''.</DELETED>

<DELETED>SEC. 483. STUDENT ELIGIBILITY.</DELETED>

<DELETED>    Section 484 (20 U.S.C. 1091) is amended--</DELETED>
        <DELETED>    (1) in subsection (d)--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph (1), 
                by striking ``either''; and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(3) The student has completed a high school 
        education in a home school setting and has met any State 
        requirements with respect to such education in a home school 
        setting.''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(q) Verification of IRS Return Information.--The 
Secretary shall verify the information reported by all applicants for 
assistance on the form prescribed under section 483 with the return 
information (as defined in section 6103 of the Internal Revenue Code of 
1986) available to the Secretary of the Treasury. Notwithstanding 
section 6103 of such Code the Secretary of the Treasury shall provide 
the return information to the Secretary. In the case of a dependent 
student the return information shall include the return information of 
the parent of the student. The form prescribed by the Secretary under 
section 483 shall contain a prominent notice of the verification of the 
information and a warning to all the applicants of the penalties for 
misrepresentation, with respect to the information, under the United 
States Code.</DELETED>

<DELETED>SEC. 484. INSTITUTIONAL REFUNDS.</DELETED>

<DELETED>    Section 484B (20 U.S.C. 1091b) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) in paragraph (1), by inserting ``or'' 
                after the semicolon;</DELETED>
                <DELETED>    (B) by striking paragraph (2); 
                and</DELETED>
                <DELETED>    (C) by redesignating paragraph (3) as 
                paragraph (2); and</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``last 
                day of attendance by the student'' and inserting ``day 
                the student withdrew'';</DELETED>
                <DELETED>    (B) in subparagraph (A) of paragraph (2), 
                by striking ``last recorded day of attendance by the 
                student'' and inserting ``day the student withdrew''; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(3) For the purpose of this section, the term 
        `day a student withdrew'--</DELETED>
                <DELETED>    ``(A) is the date that was the last 
                recorded day of attendance by the student; or</DELETED>
                <DELETED>    ``(B) in instances where attendance is not 
                recorded, is the date on which--</DELETED>
                        <DELETED>    ``(i) the student began the 
                        withdrawal process prescribed by the 
                        institution; or</DELETED>
                        <DELETED>    ``(ii) the student otherwise 
                        provided notification to the institution of the 
                        intent to withdraw.''.</DELETED>

<DELETED>SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION 
              FOR STUDENTS.</DELETED>

<DELETED>    (a) Information Dissemination Activities.--Section 485(a) 
(20 U.S.C. 1092(a)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) in the second sentence, by striking 
                ``and mailings, to all current'' and inserting ``, 
                mailings, and electronic media, to all enrolled''; 
                and</DELETED>
                <DELETED>    (B) by inserting after the second sentence 
                the following: ``Each eligible institution annually 
                shall provide to all students enrolled at the 
                institution, a list of the information that is required 
                by this section, together with a statement of the 
                procedures required to obtain the 
                information.'';</DELETED>
        <DELETED>    (2) in paragraph (2), by inserting ``an 
        application for'' after ``concerning''; and</DELETED>
        <DELETED>    (3) in paragraph (3)--</DELETED>
                <DELETED>    (A) in the matter preceding subparagraph 
                (A)--</DELETED>
                        <DELETED>    (i) by inserting ``(graduation 
                        rates)'' after ``this subsection''; 
                        and</DELETED>
                        <DELETED>    (ii) by inserting ``(student 
                        right-to-know)'' after ``subsection (e)''; 
                        and</DELETED>
                <DELETED>    (B) by amending subparagraph (A) to read 
                as follows:</DELETED>
                <DELETED>    ``(A) shall be made available by July 1 
                each year to current and prospective students prior to 
                enrolling or entering into any financial obligation; 
                and''.</DELETED>
<DELETED>    (b) Exit Counseling for Borrowers.--Section 485(b) (20 
U.S.C. 1092(b)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(A), by striking 
        ``(individually or in groups)''; and</DELETED>
        <DELETED>    (2) in paragraph (2), by adding at the end the 
        following:</DELETED>
<DELETED>    ``(C) Nothing in this subsection shall be construed to 
prohibit an institution of higher education from utilizing electronic 
means to provide personalized exit counseling.''.</DELETED>
<DELETED>    (c) Disclosures Required With Respect to Athletically 
Related Student Aid.--Section 485(e) (20 U.S.C. 1092(e)) is amended--
</DELETED>
        <DELETED>    (1) by amending paragraph (2) to read as 
        follows:</DELETED>
        <DELETED>    ``(2) When an institution described in paragraph 
        (1) offers a potential student athlete athletically related 
        student aid, such institution shall provide to the student, the 
        student's parents, the student's guidance counselor, and the 
        student's coach the information contained in the report 
        submitted by such institution pursuant to paragraph (1). If the 
        institution is a member of a national collegiate athletic 
        association that compiles graduation rate data on behalf of its 
        member institutions, that the Secretary determines is 
        substantially comparable to the information described in the 
        previous sentence, the distribution of the compilation to all 
        secondary schools shall fulfill the responsibility of the 
        institution to provide the information to a prospective student 
        athlete's guidance counselor and coach.''; and</DELETED>
        <DELETED>    (2) by amending paragraph (9) to read as 
        follows:</DELETED>
        <DELETED>    ``(9) The reports required by this subsection 
        shall be due each July 1 and shall cover the 1-year period 
        ending August 31 of the preceding year.''.</DELETED>
<DELETED>    (d) Disclosure of Campus Security Policy and Campus Crime 
Statistics.--Section 485(f) (20 U.S.C. 1092(f)) is amended--</DELETED>
        <DELETED>    (1) by amending subparagraph (F) of paragraph (1) 
        to read as follows:</DELETED>
                <DELETED>    ``(F) Statistics concerning the occurrence 
                on campus, during the most recent calendar year, and 
                during the 2 preceding calendar years for which data 
                are available--</DELETED>
                        <DELETED>    ``(i) of the following criminal 
                        offenses reported to campus security 
                        authorities or local police agencies--
                        </DELETED>
                                <DELETED>    ``(I) homicide, including 
                                murder or nonnegligent manslaughter or 
                                negligent manslaughter;</DELETED>
                                <DELETED>    ``(II) sex offenses, 
                                forcible or nonforcible;</DELETED>
                                <DELETED>    ``(III) robbery;</DELETED>
                                <DELETED>    ``(IV) aggravated 
                                assault;</DELETED>
                                <DELETED>    ``(V) burglary;</DELETED>
                                <DELETED>    ``(VI) motor vehicle 
                                theft; and</DELETED>
                                <DELETED>    ``(VII) arson;</DELETED>
                        <DELETED>    ``(ii) of the crimes described in 
                        subclauses (I) through (VII), and vandalism and 
                        simple assault, that manifest evidence of 
                        prejudice based on actual or perceived race, 
                        gender, religion, sexual orientation, 
                        ethnicity, or disability that are reported to 
                        campus security authorities or local police 
                        agencies, which data shall be collected and 
                        reported according to category of 
                        prejudice.'';</DELETED>
        <DELETED>    (2) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;</DELETED>
        <DELETED>    (3) by inserting after paragraph (3) the 
        following:</DELETED>
        <DELETED>    ``(4)(A) Each institution participating in any 
        program under this title which maintains either a police or 
        security department of any kind shall make, keep, and maintain 
        a daily log, written in a form that can be easily understood, 
        recording all crimes reported to such police or security 
        department, including--</DELETED>
                <DELETED>    ``(i) the nature, date, time, and general 
                location of each crime; and</DELETED>
                <DELETED>    ``(ii) the disposition of the complaint, 
                if known.</DELETED>
        <DELETED>    ``(B)(i) All entries that are required pursuant to 
        this paragraph shall, except where disclosure of such 
        information is prohibited by law or such disclosure would 
        jeopardize the confidentiality of the victim, be open to public 
        inspection within 2 business days of the initial report being 
        made to the department or a campus security 
        authority.</DELETED>
        <DELETED>    ``(ii) If new information about an entry into a 
        log becomes available to a police or security department, then 
        the new information shall be recorded in the log not later than 
        2 business days after the information becomes available to the 
        police or security department.</DELETED>
        <DELETED>    ``(iii) Where there is clear and convincing 
        evidence that the release of such information would jeopardize 
        an ongoing criminal investigation or the safety of an 
        individual, cause a suspect to flee or evade detection, or 
        result in the destruction of evidence, such information may be 
        withheld until that damage is no longer likely to occur from 
        the release of such information.</DELETED>
        <DELETED>    ``(iv) Notwithstanding clause (iii), an 
        institution of higher education shall record all criminal 
        incidents occurring on campus and shall make the reports open 
        to public inspection not later than 2 business days after the 
        requirements of clause (iii) are met.'';</DELETED>
        <DELETED>    (4) in paragraph (7) (as redesignated by 
        subparagraph (B)), by inserting at the end the following: 
        ``Such statistics shall not identify victims of crimes or 
        persons accused of crimes, except as permitted by State or 
        local law.''; and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
        <DELETED>    ``(9) Study.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary, in 
                consultation with the Attorney General, shall provide 
                for a national study to examine procedures undertaken 
                after an institution of higher education receives a 
                report of sexual assault.</DELETED>
                <DELETED>    ``(B) Report.--The study required by 
                subparagraph (A) shall include an analysis of--
                </DELETED>
                        <DELETED>    ``(i) the existence and 
                        publication of the institution of higher 
                        education's and State's definition of sexual 
                        assault;</DELETED>
                        <DELETED>    ``(ii) the existence and 
                        publication of the institution's policy for 
                        campus sexual assaults;</DELETED>
                        <DELETED>    ``(iii) the individuals to whom 
                        reports of sexual assault are given most often 
                        and--</DELETED>
                                <DELETED>    ``(I) how the individuals 
                                are trained to respond to the reports; 
                                and</DELETED>
                                <DELETED>    ``(II) the extent to which 
                                the individuals are trained;</DELETED>
                        <DELETED>    ``(iv) the reporting options that 
                        are articulated to the victim or victims of the 
                        sexual assault regarding--</DELETED>
                                <DELETED>    ``(I) on-campus reporting 
                                and procedure options; and</DELETED>
                                <DELETED>    ``(II) off-campus 
                                reporting and procedure 
                                options;</DELETED>
                        <DELETED>    ``(v) the resources available for 
                        victims' safety, support, medical health, and 
                        confidentiality, including--</DELETED>
                                <DELETED>    ``(I) how well the 
                                resources are articulated both 
                                specifically to the victim of sexual 
                                assault and generally to the campus at 
                                large; and</DELETED>
                                <DELETED>    ``(II) the security of the 
                                resources in terms of confidentiality 
                                or reputation;</DELETED>
                        <DELETED>    ``(vi) policies and practices that 
                        may prevent or discourage the reporting of 
                        campus sexual assaults to local crime 
                        authorities, or that may otherwise obstruct 
                        justice or interfere with the prosecution of 
                        perpetrators of campus sexual 
                        assaults;</DELETED>
                        <DELETED>    ``(vii) policies and practices 
                        found successful in aiding the report and any 
                        ensuing investigation or prosecution of a 
                        campus sexual assault;</DELETED>
                        <DELETED>    ``(viii) the on-campus procedures 
                        for investigation and disciplining the 
                        perpetrator of a sexual assault, including--
                        </DELETED>
                                <DELETED>    ``(I) the format for 
                                collecting evidence; and</DELETED>
                                <DELETED>    ``(II) the format of the 
                                investigation and disciplinary 
                                proceeding, including the faculty 
                                responsible for running the 
                                disciplinary procedure and the persons 
                                allowed to attend the disciplinary 
                                procedure; and</DELETED>
                        <DELETED>    ``(ix) types of punishment for 
                        offenders, including--</DELETED>
                                <DELETED>    ``(I) whether the case is 
                                directed outside for further 
                                punishment; and</DELETED>
                                <DELETED>    ``(II) how the institution 
                                punishes perpetrators.</DELETED>
                <DELETED>    ``(C) Submission of report.--The report 
                required by subparagraph (B) shall be submitted to 
                Congress not later than September 1, 1999.</DELETED>
                <DELETED>    ``(D) Definition.--For purposes of this 
                section, the term `campus sexual assaults' means sexual 
                assaults occurring at institutions of higher education 
                and sexual assaults committed against or by students or 
                employees of such institutions.</DELETED>
                <DELETED>    ``(E) Authorization of appropriations.--
                There is authorized to be appropriated to carry out 
                this section $1,000,000 for fiscal year 
                1999.''.</DELETED>
<DELETED>    (e) Data Required.--Section 485(g) (20 U.S.C. 1092(g)) is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by adding at the end the 
        following:</DELETED>
                <DELETED>    ``(I)(i) The total revenues, and the 
                revenues from football, men's basketball, women's 
                basketball, all other men's sports combined, and all 
                other women's sports combined, derived by the 
                institution from the institution's intercollegiate 
                athletics activities.</DELETED>
                <DELETED>    ``(ii) For the purpose of clause (i) 
                revenues from intercollegiate athletics activities 
                allocable to a sport shall include, without limitation, 
                gate receipts, broadcast revenues, appearance 
                guarantees and options, concessions and advertising, 
                except that revenues such as student activities fees or 
                alumni contributions not so allocable shall be included 
                in the calculation of total revenues only.</DELETED>
                <DELETED>    ``(J)(i) The total expenses, and the 
                expenses attributable to football, men's basketball, 
                women's basketball, all other men's sports combined and 
                all other women's sports combined, made by the 
                institution for the institution's intercollegiate 
                athletics activities.</DELETED>
                <DELETED>    ``(ii) For the purpose of clause (i) 
                expenses for intercollegiate athletics activities 
                allocable to a sport shall include without limitation 
                grants-in-aid, salaries, travel, equipment, and 
                supplies, except that expenses such as general and 
                administrative overhead not so allocable shall be 
                included in the calculation of total expenses 
                only.</DELETED>
                <DELETED>    ``(K) A statement of any reduction that 
                will, or is likely to, occur during the ensuing 4 
                academic years in the number of athletes that will be 
                permitted to participate in any collegiate sport, or in 
                the financial resources that the institution will make 
                available for any such sport, and the reasons for any 
                such reduction, to the extent the reduction is known at 
                the time of the preparation of the report.''; 
                and</DELETED>
        <DELETED>    (2) by striking paragraph (5).''.</DELETED>
<DELETED>    (f) GEPA Amendment.--Section 444(a)(4)(B) of the General 
Education Provisions Act (20 U.S.C. 1232g(a)(4)(B)) is amended--
</DELETED>
        <DELETED>    (1) by redesignating clauses (iii) and (iv) as 
        clauses (iv) and (v), respectively; and</DELETED>
        <DELETED>    (2) by inserting after clause (ii) the 
        following:</DELETED>
                        <DELETED>    ``(iii) records that are 
                        maintained by local police or campus security 
                        officers of an educational agency or 
                        institution about--</DELETED>
                                <DELETED>    ``(I) individuals who have 
                                been found guilty of, or have pled 
                                guilty to, committing or participating 
                                in any criminal activity as defined in 
                                Federal, State, or local law that has 
                                occurred while the individual was a 
                                student in attendance, including audit 
                                or noncredit, at an educational 
                                institution; and</DELETED>
                                <DELETED>    ``(II) findings of guilt 
                                of criminal misconduct and related 
                                sanctions from any previously attended 
                                educational agencies or institutions 
                                where such records were created on or 
                                after September 1, 1999, and that are 
                                maintained by the institution currently 
                                or most recently attended by the 
                                individual;''.</DELETED>

<DELETED>SEC. 486. NATIONAL STUDENT LOAN DATA BANK SYSTEM.</DELETED>

<DELETED>    Section 485B (20 U.S.C. 1092b) is amended by adding at the 
end the following:</DELETED>
<DELETED>    ``(h) Student Status Confirmation Report.--In order to 
reduce unnecessary paperwork and to increase the efficient 
administration, the Secretary shall assure that borrowers under part E 
are included in the Student Status Confirmation Report in the same 
manner as borrowers under parts B and D.''.</DELETED>

<DELETED>SEC. 487. TRAINING IN FINANCIAL AID SERVICES.</DELETED>

<DELETED>    Section 486 (20 U.S.C. 1093) is amended to read as 
follows:</DELETED>

<DELETED>``SEC. 486. INFORMATION ON THE COSTS OF HIGHER 
              EDUCATION.</DELETED>

<DELETED>    ``(a) In General.--For the purpose of providing 
comparative information to families about the costs of higher 
education--</DELETED>
        <DELETED>    ``(1) the National Center for Education Statistics 
        shall--</DELETED>
                <DELETED>    ``(A) develop a standard definition for 
                the following data elements:</DELETED>
                        <DELETED>    ``(i) Tuition and fees.</DELETED>
                        <DELETED>    ``(ii) Total cost of attendance, 
                        including costs such as housing, books, 
                        supplies, and transportation.</DELETED>
                        <DELETED>    ``(iii) Average amount of 
                        financial assistance received by a student who 
                        attends an institution of higher education, in 
                        terms of the following:</DELETED>
                                <DELETED>    ``(I) Grants and 
                                loans.</DELETED>
                                <DELETED>    ``(II) Institutional and 
                                other assistance.</DELETED>
                        <DELETED>    ``(iv) Percentage of students 
                        receiving student financial assistance, in 
                        terms of the following:</DELETED>
                                <DELETED>    ``(I) Grants and 
                                loans.</DELETED>
                                <DELETED>    ``(II) Institutional and 
                                other assistance;</DELETED>
                <DELETED>    ``(B) report the definitions to each 
                institution of higher education and the Committee on 
                Labor and Human Resources of the Senate and the 
                Committee on Education and the Workforce of the House 
                of Representatives not later than 90 days after the 
                date of enactment of the Higher Education Amendments of 
                1998;</DELETED>
                <DELETED>    ``(C) collect information regarding the 
                data elements described in subparagraph (A) with 
                respect to all institutions of higher education, and 
                make available the information each year in a timely 
                fashion through the integrated postsecondary education 
                data system, beginning with the information from the 
                1999-2000 academic year;</DELETED>
                <DELETED>    ``(D) provide the public notice when the 
                information described in subparagraph (C) is available 
                for public inspection; and</DELETED>
                <DELETED>    ``(E) publish in a timely fashion a report 
                after the third year of collection of the information 
                described in subparagraph (C) that compares the 
                information described in subparagraph (C) 
                longitudinally by institution, which information shall 
                be presented in a form that is easily understandable, 
                including clear definitions of the data elements 
                described in subparagraph (A), to allow parents and 
                students to make informed decisions about attending 
                college; and</DELETED>
        <DELETED>    ``(2) institutions of higher education shall 
        provide information regarding each data element described in 
        paragraph (1)(A) to the National Center for Education 
        Statistics by March 1 of each year, beginning in the year 
        2000.</DELETED>
<DELETED>    ``(b) Study.--</DELETED>
        <DELETED>    ``(1) In general.--In consultation with the Bureau 
        of Labor Statistics, the National Center for Education 
        Statistics shall conduct a national study of expenditures at 
        institutions of higher education. Such study shall include 
        information about--</DELETED>
                <DELETED>    ``(A) expenditures for--</DELETED>
                        <DELETED>    ``(i) faculty salaries and 
                        benefits;</DELETED>
                        <DELETED>    ``(ii) administrative salaries, 
                        benefits, and expenses;</DELETED>
                        <DELETED>    ``(iii) academic support 
                        services;</DELETED>
                        <DELETED>    ``(iv) research;</DELETED>
                        <DELETED>    ``(v) construction; and</DELETED>
                        <DELETED>    ``(vi) technology;</DELETED>
                <DELETED>    ``(B) how such expenditures change over 
                time; and</DELETED>
                <DELETED>    ``(C) how such expenditures relate to 
                college costs.</DELETED>
        <DELETED>    ``(2) Final report.--The National Center for 
        Education Statistics shall submit a report regarding the 
        findings of the study required by paragraph (1) to the 
        Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives not later than September 30, 2001.</DELETED>
<DELETED>    ``(c) Higher Education Market Basket.--In consultation 
with the Bureau of Labor Statistics, the National Center for Education 
Statistics shall develop a Higher Education Market Basket that 
identifies the items that comprise the costs of higher education. The 
National Center for Education Statistics shall provide a report on the 
basket to the Committee on Labor and Human Resources of the Senate and 
the Committee on Education and the Workforce of the House of 
Representatives not later than September 30, 2002.''.</DELETED>

<DELETED>SEC. 488. PROGRAM PARTICIPATION AGREEMENTS.</DELETED>

<DELETED>    Section 487 (20 U.S.C. 1094) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in paragraph (3)--</DELETED>
                        <DELETED>    (i) by striking subparagraph (B); 
                        and</DELETED>
                        <DELETED>    (ii) by redesignating 
                        subparagraphs (C) and (D) as subparagraphs (B) 
                        and (C), respectively;</DELETED>
                <DELETED>    (B) in paragraph (9), by striking ``part 
                B'' and inserting ``part B or D'';</DELETED>
                <DELETED>    (C) in paragraph (14)--</DELETED>
                        <DELETED>    (i) in subparagraph (A), by 
                        striking ``part B'' and inserting ``part B or 
                        D''; and</DELETED>
                        <DELETED>    (ii) in subparagraph (B)--
                        </DELETED>
                                <DELETED>    (I) by inserting ``for-
                                profit'' after ``Any'';</DELETED>
                                <DELETED>    (II) by striking ``and any 
                                eligible institution which'' and 
                                inserting ``or''; and</DELETED>
                                <DELETED>    (III) by striking ``part 
                                B'' and inserting ``part B or 
                                D'';</DELETED>
                <DELETED>    (D) in paragraph (15), by striking ``State 
                review entities'' and inserting ``the State agencies''; 
                and</DELETED>
                <DELETED>    (E) by amending paragraph (21) to read as 
                follows:</DELETED>
        <DELETED>    ``(21) The institution will meet the requirements 
        established by the Secretary and accrediting agencies or 
        associations, and will provide evidence to the Secretary that 
        the institution has the authority to operate within a State.''; 
        and</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1)(A)(i), by striking 
                ``State review entities referred to in'' and inserting 
                ``appropriate State agency notifying the Secretary 
                under'';</DELETED>
                <DELETED>    (B) in paragraph (4), by striking ``, 
                after consultation with each State review entity 
                designated under subpart 1 of part H,''; and</DELETED>
                <DELETED>    (C) in paragraph (5), by striking ``State 
                review entities designated'' and inserting ``State 
                agencies notifying the Secretary''.</DELETED>

<DELETED>SEC. 489. REGULATORY RELIEF AND IMPROVEMENT.</DELETED>

<DELETED>    Section 487A (20 U.S.C. 1094a) is amended to read as 
follows:</DELETED>

<DELETED>``SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.</DELETED>

<DELETED>    ``(a) Quality Assurance Program.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary is authorized to 
        select institutions for voluntary participation in a Quality 
        Assurance Program that provides participating institutions with 
        an alternative management approach through which individual 
        schools develop and implement their own comprehensive systems, 
        including processing and disbursement of student financial aid, 
        verification of student financial aid application data, and 
        entrance and exit interviews, thereby enhancing program 
        integrity within the student aid delivery system. The Quality 
        Assurance Program authorized by this section shall be based on 
        criteria that include demonstrated institutional performance, 
        as determined by the Secretary, and shall take into 
        consideration current quality assurance goals, as determined by 
        the Secretary.</DELETED>
        <DELETED>    ``(2) Waiver.--The Secretary is authorized to 
        waive for any institution participating in the Quality 
        Assurance Program any regulations dealing with reporting or 
        verification requirements in this title that are addressed by 
        the institution's alternative management system, and may 
        substitute such quality assurance reporting as the Secretary 
        determines necessary to ensure accountability and compliance 
        with the purposes of the programs under this title.</DELETED>
        <DELETED>    ``(3) Determination.--The Secretary is authorized 
        to determine--</DELETED>
                <DELETED>    ``(A) when an institution that is unable 
                to administer the Quality Assurance Program shall be 
                removed from such program; and</DELETED>
                <DELETED>    ``(B) when institutions desiring to cease 
                participation in such program will be required to 
                complete the current award year under the requirements 
                of the Quality Assurance Program.</DELETED>
        <DELETED>    ``(4) Review and evaluation.--The Secretary shall 
        review and evaluate the Quality Assurance Program conducted by 
        each participating institution and, on the basis of that 
        evaluation, make recommendations regarding amendments to this 
        Act that will streamline the administration and enhance the 
        integrity of Federal student assistance programs. Such 
        recommendations shall be submitted to the Committee on Labor 
        and Human Resources of the Senate and the Committee on 
        Education and the Workforce of the House of 
        Representatives.</DELETED>
<DELETED>    ``(b) Regulatory Improvement and Streamlining 
Experiments.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall review and 
        evaluate the experience of institutions participating as 
        experimental sites during the period of 1993 through 1998 under 
        this section (as such section was in effect on the day before 
        the date of enactment of the Higher Education Amendments of 
        1998), and shall submit a report based on this review and 
        evaluation to the Committee on Labor and Human Resources of the 
        Senate and the Committee on Education and the Workforce of the 
        House of Representatives not later than 6 months after the 
        enactment of the Higher Education Amendments of 1998. Such 
        report shall include--</DELETED>
                <DELETED>    ``(A) a list of participating institutions 
                and the specific statutory or regulatory waivers 
                granted to each institution;</DELETED>
                <DELETED>    ``(B) the findings and conclusions reached 
                regarding each of the experiments conducted; 
                and</DELETED>
                <DELETED>    ``(C) recommendations for amendments to 
                improve and streamline this Act, based on the results 
                of the experiment.</DELETED>
        <DELETED>    ``(2) Selection.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary is 
                authorized to select a limited number of institutions 
                for voluntary participation as experimental sites to 
                provide recommendations to the Secretary on the impact 
                and effectiveness of proposed regulations or new 
                management initiatives, except that additional 
                institutions may not be selected by the Secretary until 
                the report required by subsection (b)(1) has been 
                submitted to Congress.</DELETED>
                <DELETED>    ``(B) Consultation.--Prior to approving 
                any additional experimental sites, the Secretary shall 
                consult with the Committee on Labor and Human Resources 
                of the Senate and the Committee on Education and the 
                Workforce of the House of Representatives and shall 
                provide--</DELETED>
                        <DELETED>    ``(i) a list of institutions 
                        proposed for participation in the experiment 
                        and the specific statutory or regulatory 
                        waivers proposed to be granted to each 
                        institution;</DELETED>
                        <DELETED>    ``(ii) the objectives to be 
                        achieved through the experiment; and</DELETED>
                        <DELETED>    ``(iii) the period of time over 
                        which the experiment is to be 
                        conducted.</DELETED>
                <DELETED>    ``(C) Waivers.--The Secretary is 
                authorized to waive, for any institution participating 
                as an experimental site under subparagraph (A), any 
                requirements in this title, or regulations prescribed 
                under this title, that will bias experimental 
                results.</DELETED>
<DELETED>    ``(c) Definitions.--For purposes of this section, the term 
`current award year' is defined as the award year during which the 
participating institution indicates the institution's intention to 
cease participation.''.</DELETED>

<DELETED>SEC. 489A. DISTANCE EDUCATION DEMONSTRATION 
              PROGRAMS.</DELETED>

<DELETED>    Part G (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 487B (20 U.S.C. 1094a) the following:</DELETED>

<DELETED>``SEC. 487C. DISTANCE EDUCATION DEMONSTRATION 
              PROGRAMS.</DELETED>

<DELETED>    ``(a) Purpose.--It is the purpose of this section--
</DELETED>
        <DELETED>    ``(1) to allow demonstration programs that are 
        strictly monitored by the Department to test the quality and 
        viability of expanded distance education programs currently 
        restricted under this Act;</DELETED>
        <DELETED>    ``(2) to help determine the specific statutory and 
        regulatory requirements which should be altered to provide 
        greater access to high quality distance education programs; 
        and</DELETED>
        <DELETED>    ``(3) to help determine the appropriate level of 
        Federal assistance for students enrolled in distance education 
        programs.</DELETED>
<DELETED>    ``(b) Demonstration Programs Authorized.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary, in accordance 
        with the provisions of subsection (d), is authorized to select 
        institutions of higher education or consortia of such 
        institutions for voluntary participation in a Distance 
        Education Demonstration Program that provides participating 
        institutions with the ability to offer distance education 
        programs that do not meet all or a portion of the sections or 
        regulations described in paragraph (2).</DELETED>
        <DELETED>    ``(2) Waivers.--The Secretary is authorized to 
        waive, for any institution or consortia participating in a 
        Distance Education Demonstration Program, 1 or more of the 
        requirements of section 472(5) as the section relates to 
        computer costs, sections 472(10), 481(a)(3)(A), 481(a)(3)(B), 
        484(l)(1), or 1 or more of the regulations prescribed for 
        distance education under part F or G.</DELETED>
        <DELETED>    ``(3) Special rule.--An institution of higher 
        education, as defined in section 481(a), is eligible to 
        participate in the demonstration program authorized under this 
        section if such institution awards a degree, except that--
        </DELETED>
                <DELETED>    ``(A) such institutions that are described 
                in section 481(a)(1)(C) shall not be eligible to 
                participate; and</DELETED>
                <DELETED>    ``(B) subject to subparagraph (A), such 
                institutions that meet the requirements of subsection 
                (a) of section 481, other than the requirements of 
                paragraph (3)(A) or (3)(B) of such subsection, shall be 
                eligible to participate.</DELETED>
<DELETED>    ``(c) Application.--</DELETED>
        <DELETED>    ``(1) In general.--Each institution or consortia 
        of institutions desiring to participate in a demonstration 
        program under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.</DELETED>
        <DELETED>    ``(2) Contents.--Each application shall include--
        </DELETED>
                <DELETED>    ``(A) a description of the institution or 
                consortium's consultation with a recognized accrediting 
                agency or association with respect to quality 
                assurances for the distance education programs to be 
                offered;</DELETED>
                <DELETED>    ``(B) a description of the statutory and 
                regulatory requirements described in subsection (b)(2) 
                for which a waiver is sought and the reasons for which 
                the waiver is sought;</DELETED>
                <DELETED>    ``(C) a description of the distance 
                education programs to be offered;</DELETED>
                <DELETED>    ``(D) a description of the students to 
                whom distance education programs will be 
                offered;</DELETED>
                <DELETED>    ``(E) an assurance that the institution or 
                consortium will offer full cooperation with the ongoing 
                evaluations of the demonstration program provided for 
                in this section; and</DELETED>
                <DELETED>    ``(F) such other information as the 
                Secretary may require.</DELETED>
<DELETED>    ``(d) Selection.--The Secretary is authorized to select 
not more than 5 institutions or consortia to participate in the initial 
year of the demonstration program authorized under this section. If 
expansion of the demonstration program can be supported on the basis of 
the evaluations conducted pursuant to subsections (f) and (g), the 
Secretary may select not more than 10 additional institutions or 
consortia, taking into account the number and quality of applications 
received and the Department's capacity to oversee and monitor each 
demonstration program. To the extent feasible, the Secretary shall 
select a representative sample of institutions for participation. In 
selecting institutions for participation, the Secretary shall take into 
consideration the institution's financial and administrative capability 
and the type of program or programs being offered via distance 
education course offerings.</DELETED>
<DELETED>    ``(e) Notification.--The Secretary shall make available to 
the public and to the Committee on Labor and Human Resources of the 
Senate and the Committee on Education and the Workforce of the House of 
Representatives a list of institutions or consortia selected to 
participate in the demonstration program authorized by this section. 
Such notice shall include a listing of the specific statutory and 
regulatory requirements being waived for each institution or consortia 
and a description of the distance education courses to be 
offered.</DELETED>
<DELETED>    ``(f) Evaluations and Reports.--</DELETED>
        <DELETED>    ``(1) Evaluation.--The Secretary, on an annual 
        basis, shall evaluate the demonstration programs authorized 
        under this section. Such evaluations shall specifically 
        review--</DELETED>
                <DELETED>    ``(A) the number and types of students 
                participating in the programs being offered, including 
                the progress of participating students toward 
                recognized associate, bachelor's, or graduate degrees, 
                and the degree to which participation in such programs 
                increased;</DELETED>
                <DELETED>    ``(B) issues related to student financial 
                assistance for distance education; and</DELETED>
                <DELETED>    ``(C) the extent to which statutory or 
                regulatory requirements not waived under the 
                demonstration program present difficulties for students 
                or institutions.</DELETED>
        <DELETED>    ``(2) Policy analysis.--In addition, the Secretary 
        shall review current policies and identify those policies which 
        present impediments to the development and use of distance 
        learning and other nontraditional methods of expanding access 
        to education.</DELETED>
        <DELETED>    ``(3) Reports.--</DELETED>
                <DELETED>    ``(A) In general.--Within 18 months of the 
                initiation of the demonstration program, the Secretary 
                shall report to the Committee on Labor and Human 
                Resources of the Senate and and the Committee on 
Education and the Workforce of the House of Representatives with 
respect to--</DELETED>
                        <DELETED>    ``(i) the evaluations of the 
                        demonstration programs authorized under this 
                        section; and</DELETED>
                        <DELETED>    ``(ii) any proposed statutory 
                        changes designed to enhance the use of distance 
                        education.</DELETED>
                <DELETED>    ``(B) Additional reports.--The Secretary 
                shall provide additional reports to the Committee on 
                Labor and Human Resources of the Senate and the 
                Committee on Education and the Workforce of the House 
                of Representatives on an annual basis regarding the 
                demonstration programs authorized under this 
                section.</DELETED>
<DELETED>    ``(g) Independent Evaluation.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall enter into 
        a contract with the National Academy of Sciences to study the 
        quality of and student learning outcomes in distance education 
        programs. Such study shall include--</DELETED>
                <DELETED>    ``(A) identification of the elements by 
                which quality in distance education can be assessed, 
                such as subject matter, interactivity, and student 
                outcomes; and</DELETED>
                <DELETED>    ``(B) identification of the types of 
                students which can most benefit from distance education 
                in areas such as access to higher education, 
                persistence, and graduation.</DELETED>
        <DELETED>    ``(2) Scope.--Such study shall include distance 
        education programs offered by the institutions or consortia 
        participating in the demonstration program authorized by this 
        section, as well as the distance education programs offered by 
        other institutions.</DELETED>
        <DELETED>    ``(3) Interim and final reports.--The Secretary 
        shall request that the National Academy of Sciences submit an 
        interim report to the Secretary, the Committee on Labor and 
        Human Resources of the Senate, and the Committee on Education 
        and the Workforce of the House of Representatives not later 
        than December 31, 2000, and a final report not later than 
        December 31, 2002, regarding the study.</DELETED>
        <DELETED>    ``(4) Funding.--The Secretary shall make available 
        not more than $1,000,000 for the study required by this 
        subsection.</DELETED>
<DELETED>    ``(h) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--</DELETED>
        <DELETED>    ``(1) assure compliance of institutions or 
        consortia with the requirements of this title (other than the 
        sections and regulations that are waived under subsection 
        (b)(2));</DELETED>
        <DELETED>    ``(2) provide technical assistance;</DELETED>
        <DELETED>    ``(3) monitor fluctuations in the student 
        population enrolled in the participating institutions or 
        consortia; and</DELETED>
        <DELETED>    ``(4) consult with appropriate accrediting 
        agencies or associations and appropriate State regulatory 
        authorities.</DELETED>
<DELETED>    ``(i) Definition.--For the purpose of this section, the 
term `distance learning' means an educational process that is 
characterized by the separation, in time or place, between instructor 
and student. Distance learning may include courses offered principally 
through the use of--</DELETED>
        <DELETED>    ``(1) television, audio, or computer transmission, 
        such as open broadcast, closed circuit, cable, microwave, or 
        satellite transmission;</DELETED>
        <DELETED>    ``(2) audio or computer conferencing;</DELETED>
        <DELETED>    ``(3) video cassettes or discs; or</DELETED>
        <DELETED>    ``(4) correspondence.''.</DELETED>

<DELETED>SEC. 489B. ADVISORY COMMITTEE ON STUDENT FINANCIAL 
              ASSISTANCE.</DELETED>

<DELETED>    Section 491 (20 U.S.C. 1098) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) in the second sentence, by striking 
                ``and expenditures'' and inserting ``, expenditures and 
                staffing levels''; and</DELETED>
                <DELETED>    (B) by inserting after the third sentence 
                the following: ``Reports, publications, and other 
                documents, including such reports, publications, and 
                documents in electronic form, shall not be subject to 
                review by the Secretary.'';</DELETED>
        <DELETED>    (2) in subsection (e)--</DELETED>
                <DELETED>    (A) by redesignating paragraphs (3), (4), 
                and (5), as paragraphs (4), (5), and (6), respectively; 
                and</DELETED>
                <DELETED>    (B) by inserting after paragraph (2) the 
                following:</DELETED>
        <DELETED>    ``(3) No officers or full-time employees of the 
        Federal Government shall serve as members of the Advisory 
        Committee.'';</DELETED>
        <DELETED>    (3) in subsection (g), by striking ``(1) Members'' 
        and all that follows through ``of the United States may'' and 
        inserting ``Members of the Advisory Committee may'';</DELETED>
        <DELETED>    (4) in subsection (h)(1)--</DELETED>
                <DELETED>    (A) by inserting ``determined'' after ``as 
                may be''; and</DELETED>
                <DELETED>    (B) by adding at the end the following: 
                ``The Advisory Committee may appoint not more than 1 
                full-time equivalent, nonpermanent, consultant without 
                regard to the provisions of title 5, United States 
                Code. The Advisory Committee shall not be required by 
                the Secretary to reduce personnel to meet agency 
                personnel reduction goals.'';</DELETED>
        <DELETED>    (5) in subsection (i), by striking ``$750,000'' 
        and inserting ``$800,000'';</DELETED>
        <DELETED>    (6) by amending subsection (j) to read as 
        follows:</DELETED>
<DELETED>    ``(j) Special Analyses and Activities.--The Advisory 
Committee shall--</DELETED>
        <DELETED>    ``(1) monitor and evaluate the modernization of 
        student financial aid systems and delivery processes, including 
        the implementation of a performance-based organization within 
        the Department, and report to Congress regarding such 
        modernization on not less than an annual basis, including 
        recommendations for improvement;</DELETED>
        <DELETED>    ``(2) assess the adequacy of current methods for 
        disseminating information about programs under this title and 
        recommend improvements, as appropriate, regarding early needs 
        assessment and information for first-year secondary school 
        students;</DELETED>
        <DELETED>    ``(3) assess and make recommendations concerning 
        the feasibility and degree of use of appropriate technology in 
        the application for, and delivery and management of, financial 
        assistance under this title, as well as policies that promote 
        use of such technology to reduce cost and enhance service and 
        program integrity, including electronic application and 
        reapplication, just-in-time delivery of funds, reporting of 
        disbursements and reconciliation;</DELETED>
        <DELETED>    ``(4) assess the implications of distance learning 
        on student eligibility and other requirements for financial 
        assistance under this title, and make recommendations that will 
        enhance access to postsecondary education through distance 
        learning while maintaining access, through on-campus 
        instruction at eligible institutions, and program integrity; 
        and</DELETED>
        <DELETED>    ``(5) make recommendations to the Secretary 
        regarding redundant or outdated provisions of and regulations 
        under this Act, consistent with the Secretary's requirements 
        under section 498A(b)(3).'';</DELETED>
        <DELETED>    (7) in subsection (k), by striking ``1998'' and 
        inserting ``2004''; and</DELETED>
        <DELETED>    (8) by repealing subsection (l).</DELETED>

<DELETED>SEC. 489C. REGIONAL MEETINGS AND NEGOTIATED 
              RULEMAKING.</DELETED>

<DELETED>    Section 492 (20 U.S.C. 1098a) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) by inserting ``, after the 
                        enactment of each Act to reauthorize this Act 
                        that contains an amendment to this title,'' 
                        after ``The Secretary''; and</DELETED>
                        <DELETED>    (ii) by inserting ``D,'' after 
                        ``B,''; and</DELETED>
                <DELETED>    (B) in paragraph (2)--</DELETED>
                        <DELETED>    (i) by inserting ``D,'' after 
                        ``B,''; and</DELETED>
                        <DELETED>    (ii) by striking ``1992'' and 
                        inserting ``1998, and for the implementation of 
                        this title as amended by each Act to 
                        reauthorize this Act enacted after the date of 
                        enactment of the Higher Education Amendments of 
                        1998 that contains an amendment to this 
                        title''; and</DELETED>
        <DELETED>    (2) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking ``After'' and inserting 
                the following:</DELETED>
        <DELETED>    ``(1) In general.--After'';</DELETED>
                <DELETED>    (B) in paragraph (1) (as redesignated by 
                subparagraph (A))--</DELETED>
                        <DELETED>    (i) by inserting ``D,'' after 
                        ``B,''; and</DELETED>
                        <DELETED>    (ii) by striking ``1992'' and 
                        inserting ``1998, and for the implementation of 
                        this title as amended by each Act to 
                        reauthorize this Act enacted after the date of 
                        enactment of the Higher Education Amendments of 
                        1998 that contains an amendment to this 
                        title,''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(2) Expansion of negotiated rulemaking in 
        student loan programs.--All regulations pertaining to the 
        student assistance programs in parts B, D, G, and H, that are 
        promulgated after the date of enactment of this paragraph, 
        shall be subject to the negotiated rulemaking process, unless 
        the Secretary determines that exceptional circumstances exist 
        making negotiated rulemaking impractical with respect to given 
        regulations and publishes the basis for such determination in 
        the Federal Register at the same time as the proposed 
        regulations in questions are first published. All published 
        proposed regulations shall conform, unless impracticable, to 
        agreements resulting from such negotiated rulemaking. Such 
        negotiated rulemaking shall be conducted in accordance with the 
        provisions of paragraph (1).''.</DELETED>

           <DELETED>PART H--PROGRAM INTEGRITY TRIAD</DELETED>

<DELETED>SEC. 491. STATE ROLE AND RESPONSIBILITIES.</DELETED>

<DELETED>    Subpart 1 of part H of title IV (20 U.S.C. 1099a et seq.) 
is amended to read as follows:</DELETED>

               <DELETED>``Subpart 1--State Role</DELETED>

<DELETED>``SEC. 495. STATE RESPONSIBILITIES.</DELETED>

<DELETED>    ``(a) State Responsibilities.--As part of the integrity 
program authorized by this part, each State, through 1 State agency or 
several State agencies selected by the State, shall--</DELETED>
        <DELETED>    ``(1) furnish the Secretary, upon request, 
        information with respect to the process for licensing or other 
        authorization for institutions of higher education to operate 
        within the State;</DELETED>
        <DELETED>    ``(2) notify the Secretary promptly whenever the 
        State revokes a license or other authority to operate an 
        institution of higher education; and</DELETED>
        <DELETED>    ``(3) notify the Secretary promptly whenever the 
        State has credible evidence that an institution of higher 
        education within the State--</DELETED>
                <DELETED>    ``(A) has committed fraud in the 
                administration of the student assistance programs 
                authorized by this title; or</DELETED>
                <DELETED>    ``(B) has substantially violated a 
                provision of this title.</DELETED>
<DELETED>    ``(b) Institutional Responsibility.--Each institution of 
higher education shall provide evidence to the Secretary that the 
institution has authority to operate within a State at the time the 
institution is certified under subpart 3.''.</DELETED>

<DELETED>SEC. 492. ACCREDITING AGENCY RECOGNITION.</DELETED>

<DELETED>    (a) Amendments to Headings.--Subpart 2 of part H of title 
IV (20 U.S.C. 1099b et seq.) is amended--</DELETED>
        <DELETED>    (1) in the subpart heading, by striking 
        ``Approval'' and inserting ``Recognition''; and</DELETED>
        <DELETED>    (2) in the heading for section 496, by striking 
        ``approval'' and inserting ``recognition''.</DELETED>
<DELETED>    (b) Recognition of Accrediting Agency or Association.--
Section 496 (20 U.S.C. 1099b) is amended--</DELETED>
        <DELETED>    (1) in the heading for subsection (a), by striking 
        ``Standards'' and inserting ``Criteria'';</DELETED>
        <DELETED>    (2) in subsection (a)--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph (1), 
                by striking ``standards'' each place the term appears 
                and inserting ``criteria'';</DELETED>
                <DELETED>    (B) in paragraph (4)--</DELETED>
                        <DELETED>    (i) by striking ``at the 
                        institution'' and inserting ``offered by the 
                        institution''; and</DELETED>
                        <DELETED>    (ii) by inserting ``, including 
                        distance education courses or programs,'' after 
                        ``higher education''; and</DELETED>
                <DELETED>    (C) in paragraph (5)--</DELETED>
                        <DELETED>    (i) by striking subparagraph 
                        (I);</DELETED>
                        <DELETED>    (ii) by redesignating 
                        subparagraphs (A) through (H) as subparagraphs 
                        (B) through (I), respectively;</DELETED>
                        <DELETED>    (iii) by inserting before 
                        subparagraph (B) the following:</DELETED>
                <DELETED>    ``(A) success with respect to student 
                achievement in relation to the institution's mission, 
                including, as appropriate, consideration of course 
                completion, State licensing examination, and job 
                placement rates;'';</DELETED>
                        <DELETED>    (iv) in subparagraph (I) (as 
                        redesignated by clause (ii)), by striking ``in 
                        clock hours or credit hours''; and</DELETED>
                        <DELETED>    (v) in subparagraph (L)--
                        </DELETED>
                                <DELETED>    (I) by inserting ``record 
                                of'' before ``compliance'';</DELETED>
                                <DELETED>    (II) by striking ``Act, 
                                including any'' and inserting ``Act 
                                based on the'';</DELETED>
                                <DELETED>    (III) by inserting ``any'' 
                                after ``reviews, and''; and</DELETED>
                                <DELETED>    (IV) in the matter 
                                following subparagraph (L), by striking 
                                ``(G),'';</DELETED>
        <DELETED>    (3) by amending paragraph (1) of subsection (l) to 
        read as follows: ``(1)(A)(i) If the Secretary determines that 
        an accrediting agency or association has failed to apply 
        effectively the standards in this section, or is otherwise not 
        in compliance with the requirements of this section, the 
        Secretary shall--</DELETED>
                <DELETED>    ``(I) after notice and opportunity for a 
                hearing, limit, suspend, or terminate the approval of 
                the agency or association; or</DELETED>
                <DELETED>    ``(II) require the agency or association 
                to take appropriate action to bring the agency or 
                association into compliance with such requirements 
                within a timeframe specified by the Secretary, except 
                that--</DELETED>
                        <DELETED>    ``(aa) such timeframe shall not 
                        exceed 12 months unless the Secretary extends 
                        such period for good cause; and</DELETED>
                        <DELETED>    ``(bb) if the agency or 
                        association fails to bring the agency or 
                        association into compliance within such 
                        timeframe, the Secretary shall, after notice 
                        and opportunity for a hearing, limit, suspend, 
                        or terminate the approval of the agency or 
                        association.''; and</DELETED>
        <DELETED>    (4) in subsection (n)(3), by adding at the end the 
        following: ``When the Secretary decides to recognize an 
        accrediting agency or association, the Secretary shall 
        determine the agency or association's scope of recognition. If 
        the agency or association reviews institutions offering 
        distance education courses or programs and the Secretary 
        determines that the agency or association meets the 
        requirements of this section, then the agency shall be 
        recognized and the scope of recognition shall include 
        accreditation of institutions offering distance education 
        courses or programs.''.</DELETED>

<DELETED>SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.</DELETED>

<DELETED>    (a) Single Application Form.--Section 498(b) (20 U.S.C. 
1099c(b)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``and 
        capability'' and inserting ``financial responsibility, and 
        administrative capability'';</DELETED>
        <DELETED>    (2) by amending paragraph (3) to read as 
        follows:</DELETED>
        <DELETED>    ``(3) requires--</DELETED>
                <DELETED>    ``(A) a description of the third party 
                servicers of an institution of higher education; 
                and</DELETED>
                <DELETED>    ``(B) the institution to maintain a copy 
                of any contract with a financial aid service provider 
                or loan servicer, and provide a copy of any such 
                contract to the Secretary upon request;'';</DELETED>
        <DELETED>    (3) in paragraph (4), by striking the period and 
        inserting ``; and''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
        <DELETED>    ``(5) provides, at the option of the institution, 
        for participation in 1 or more of the programs under part 
        B.''.</DELETED>
<DELETED>    (b) Financial Responsibility Standards.--Section 498(c) 
(20 U.S.C. 1099c(c)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2), by striking ``with respect 
        to operating losses, net worth, asset to liabilities ratios, or 
        operating fund deficits'' and inserting ``regarding ratios that 
        demonstrate financial responsibility,'';</DELETED>
        <DELETED>    (2) in paragraph (3)(A), by striking ``Secretary 
        third party'' and all that follows through ``payable to the 
        Secretary'' and inserting ``Secretary any third party 
        guarantees, which the Secretary determines are reasonable, 
        that''; and</DELETED>
        <DELETED>    (3) in paragraph (4)--</DELETED>
                <DELETED>    (A) in the matter preceding subparagraph 
                (A), by striking ``ratio of current assets to current 
                liabilities'' and inserting ``criteria''; and</DELETED>
                <DELETED>    (B) in subparagraph (C), by striking 
                ``current operating ratio requirement'' and inserting 
                ``criteria''.</DELETED>
<DELETED>    (c) Financial Guarantees From Owners.--Section 498(e) (20 
U.S.C. 1099c(e)) is amended--</DELETED>
        <DELETED>    (1) in the subsection heading, by inserting ``of 
        For-Profit Institutions'' after ``Owners'';</DELETED>
        <DELETED>    (2) in paragraph (1)(A), by inserting ``from an'' 
        and inserting ``from a for-profit'';</DELETED>
        <DELETED>    (3) in paragraph (2)--</DELETED>
                <DELETED>    (A) in the matter preceding clause (i) of 
                subparagraph (A), by inserting ``for-profit'' after 
                ``or more'';</DELETED>
                <DELETED>    (B) in subparagraph (B), by inserting 
                ``for-profit'' after ``or more''; and</DELETED>
        <DELETED>    (4) in paragraph (3), by striking ``operation of, 
        an institution or'' and inserting ``operation of, a for-profit 
        institution or the''.</DELETED>
<DELETED>    (d) Applications and Site Visits.--Section 498(f) (20 
U.S.C. 1099c(f)) is amended--</DELETED>
        <DELETED>    (1) in the subsection heading by striking ``; Site 
        Visits and Fees'' and inserting ``and Site Visits'';</DELETED>
        <DELETED>    (2) in the second sentence, by striking ``shall'' 
        and inserting ``may'';</DELETED>
        <DELETED>    (3) in the third sentence, strike ``may'' and 
        insert ``shall''; and</DELETED>
        <DELETED>    (4) by striking the fourth sentence.</DELETED>
<DELETED>    (e) Time Limitations on, and Renewal of, Eligibility.--
Subsection (g) of section 498 (20 U.S.C. 1099c) is amended to read as 
follows:</DELETED>
<DELETED>    ``(g) Time Limitations on, and Renewal of, Eligibility.--
</DELETED>
        <DELETED>    ``(1) General rule.--After the expiration of the 
        certification of any institution under the schedule prescribed 
        under this section (as in effect prior to the enactment of the 
        Higher Education Act Amendments of 1998), or upon request for 
        initial certification from an institution not previously 
        certified, the Secretary may certify the eligibility for the 
        purposes of any program authorized under this title of each 
        such institution for a period not to exceed 6 years.</DELETED>
        <DELETED>    ``(2) Notification.--The Secretary shall notify 
        each institution of higher education not later than 6 months 
        prior to the date of the expiration of the institution's 
        certification.</DELETED>
        <DELETED>    ``(3) Institutions outside the united states.--The 
        Secretary shall promulgate regulations regarding the 
        recertification requirements applicable to an institution of 
        higher education outside of the United States that meets the 
        requirements of section 481(a)(1)(C) and received less than 
        $500,000 in funds under part B for the most recent year for 
        which data are available.</DELETED>
<DELETED>    (f) Provisional Certification.--Section 498(h) (20 U.S.C. 
1099c(h)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(B)(ii), by striking ``an 
        eligible'' and inserting ``a for-profit eligible''; 
        and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``the approval'' 
        and inserting ``the recognition''.</DELETED>
<DELETED>    (g) Treatment of Changes of Ownership.--Section 498(i) (20 
U.S.C. 1099c(i)) is amended--</DELETED>
        <DELETED>    (1) in the subsection heading, by inserting ``of 
        For-Profit Institutions'' after ``Ownership''; and</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by inserting 
                ``for-profit'' before ``institution'';</DELETED>
                <DELETED>    (B) in subparagraph (C), by striking 
                ``two'' and inserting ``a for-profit institution with 
                one'';</DELETED>
                <DELETED>    (C) in subparagraph (D), by inserting 
                ``for-profit'' before ``institutions'';</DELETED>
                <DELETED>    (D) in subparagraph (E), by inserting 
                ``for-profit'' before ``institutions''; and</DELETED>
                <DELETED>    (E) in subparagraph (F), by inserting 
                ``for-profit'' before ``institution''.</DELETED>
<DELETED>    (h) Treatment of Branches.--The second sentence of section 
498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by inserting ``after the 
branch is certified by the Secretary as a branch campus participating 
in a program under title IV,'' after ``2 years''.</DELETED>

<DELETED>SEC. 494. PROGRAM REVIEW AND DATA.</DELETED>

<DELETED>    Section 498A (20 U.S.C. 1099c-1) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in paragraph (2)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        subparagraph (A), by striking ``may'' and 
                        inserting ``shall'';</DELETED>
                        <DELETED>    (ii) by amending subparagraph (C) 
                        to read as follows:</DELETED>
                <DELETED>    ``(C) institutions with a significant 
                fluctuation in Federal Stafford Loan volume, Federal 
                Direct Stafford/Ford Loan volume, or Federal Pell Grant 
                award volume, or any combination thereof, in the year 
                for which the determination is made, compared to the 
                year prior to such year, that are not accounted for by 
                changes in the Federal Stafford Loan program, the 
                Federal Direct Stafford/Ford Loan program, or the Pell 
                Grant program, or any combination thereof;'';</DELETED>
                        <DELETED>    (iii) by amending subparagraph (D) 
                        to read as follows:</DELETED>
                <DELETED>    ``(D) institutions reported to have 
                deficiencies or financial aid problems by the State 
                licensing or authorizing agency, or by the appropriate 
                accrediting agency or association;'';</DELETED>
                        <DELETED>    (iv) in subparagraph (E), by 
                        inserting ``and'' after the semicolon; 
                        and</DELETED>
                        <DELETED>    (v) by striking subparagraphs (F) 
                        and (G), and inserting the following:</DELETED>
                <DELETED>    ``(F) such other institutions that the 
                Secretary determines may pose a significant risk of 
                failure to comply with the administrative capability or 
                financial responsibility provisions of this title; 
                and''; and</DELETED>
                <DELETED>    (B) in paragraph (3)(A), by inserting 
                ``relevant'' after ``all''; and</DELETED>
        <DELETED>    (2) by amending subsection (b) to read as 
        follows:</DELETED>
<DELETED>    ``(b) Special Administrative Rules.--</DELETED>
        <DELETED>    ``(1) In general.--In carrying out paragraphs (1) 
        and (2) of subsection (a) and any other relevant provisions of 
        this title, the Secretary shall--</DELETED>
                <DELETED>    ``(A) establish guidelines designed to 
                ensure uniformity of practice in the conduct of program 
                reviews of institutions of higher education;</DELETED>
                <DELETED>    ``(B) make available to each institution 
                participating in programs authorized under this title 
                complete copies of all review guidelines and procedures 
                used in program reviews;</DELETED>
                <DELETED>    ``(C) permit the institution to correct or 
                cure an administrative, accounting, or recordkeeping 
                error if the error is not part of a pattern of error 
                and there is no evidence of fraud or misconduct related 
                to the error;</DELETED>
                <DELETED>    ``(D) base any civil penalty assessed 
                against an institution of higher education resulting 
                from a program review or audit on the gravity of the 
                violation, failure, or misrepresentation; and</DELETED>
                <DELETED>    ``(E) inform the appropriate State and 
                accrediting agency or association whenever the 
                Secretary takes action against an institution of higher 
                education under this section, section 498, or section 
                432.</DELETED>
        <DELETED>    ``(2) Uniformity of application of regulations.--
        The Secretary shall review the regulations of the Department 
        and the application of such regulations to ensure the 
        uniformity of interpretation and application of the 
        regulations.</DELETED>
        <DELETED>    ``(3) Nonduplication and coordination.--The 
        Secretary shall establish a process for ensuring that 
        eligibility and compliance issues, such as institutional audit, 
        program review, and recertification, are considered 
        simultaneously, and shall establish a process for identifying 
        unnecessary duplication of reporting and related regulatory 
        requirements. In developing such processes, the Secretary shall 
        consult with relevant representatives of institutions 
        participating in the programs authorized by this 
        title.''.</DELETED>

  <DELETED>PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT 
                     FINANCIAL ASSISTANCE</DELETED>

<DELETED>SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF 
              FEDERAL STUDENT FINANCIAL ASSISTANCE.</DELETED>

<DELETED>    Title IV (20 U.S.C. 1070 et seq.) is amended by adding at 
the end the following:</DELETED>

 <DELETED>``PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT 
                     FINANCIAL ASSISTANCE</DELETED>

<DELETED>``SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF 
              FEDERAL STUDENT FINANCIAL ASSISTANCE.</DELETED>

<DELETED>    ``(a) Establishment.--The Secretary shall establish in the 
Department a performance-based organization (hereafter in this part 
referred to as the `PBO') to administer various functions relating to 
student financial assistance programs authorized under this 
title.</DELETED>
<DELETED>    ``(b) Oversight and Authority.--</DELETED>
        <DELETED>    ``(1) Policy oversight and direction.--The 
        Secretary shall maintain responsibility for the policy relating 
        to functions managed by the PBO, and the PBO shall remain 
subject to the Secretary's oversight and direction.</DELETED>
        <DELETED>    ``(2) Audits and review.--The PBO shall be subject 
        to the usual and customary Federal audit procedures and to 
        review by the Inspector General of the Department.</DELETED>
        <DELETED>    ``(3) Changes.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary and the 
                Chief Operating Officer shall consult concerning the 
                effects of policy, market, or other changes on the 
                ability of the PBO to achieve the goals and objectives 
                established in the performance plan described in 
                subsection (e).</DELETED>
                <DELETED>    ``(B) Revisions to agreement.--The 
                Secretary and the Chief Operating Officer may revise 
                the annual performance agreement described in 
                subsection (f)(2) in light of policy, market, or other 
                changes that occur after the Secretary and the PBO 
                enter into the agreement.</DELETED>
<DELETED>    ``(c) Purposes of PBO.--The purposes of the PBO are--
</DELETED>
        <DELETED>    ``(1) to improve service to students and other 
        participants in the student financial assistance programs 
        authorized under this title, including making those programs 
        more understandable to students and their parents;</DELETED>
        <DELETED>    ``(2) to reduce the costs of administering those 
        programs;</DELETED>
        <DELETED>    ``(3) to increase the accountability of the 
        officials responsible for administering those 
        programs;</DELETED>
        <DELETED>    ``(4) to provide greater flexibility in the 
        administration of those programs;</DELETED>
        <DELETED>    ``(5) to improve and integrate the information and 
        delivery systems that support those programs; and</DELETED>
        <DELETED>    ``(6) to develop and maintain a student financial 
        assistance system that contains complete, accurate, and timely 
        data to ensure program integrity.</DELETED>
<DELETED>    ``(d) Functions.--</DELETED>
        <DELETED>    ``(1) In general.--Subject to subsection (b) of 
        this section, the PBO shall be responsible for administration 
        of the information and financial systems that support student 
        financial assistance programs authorized under this title, 
        including--</DELETED>
                <DELETED>    ``(A) collecting, processing, and 
                transmitting applicant data to students, institutions, 
                and authorized third parties, as provided for in 
                section 483;</DELETED>
                <DELETED>    ``(B) contracting for the information and 
                financial systems supporting student financial 
                assistance programs under this title;</DELETED>
                <DELETED>    ``(C) developing technical specifications 
                for software and systems that support those programs; 
                and</DELETED>
                <DELETED>    ``(D) providing all customer service, 
                training, and user support related to systems that 
                support those programs.</DELETED>
        <DELETED>    ``(2) Additional functions.--The Secretary may 
        allocate to the PBO such additional functions as the Secretary 
        determines necessary or appropriate to achieve the purposes of 
        the PBO.</DELETED>
<DELETED>    ``(e) Performance Plan and Report.--</DELETED>
        <DELETED>    ``(1) Performance plan.--</DELETED>
                <DELETED>    ``(A) In general.--Each year, the 
                Secretary and Chief Operating Officer shall agree on, 
                and make available to the public, a performance plan 
                for the PBO for the succeeding 5 years that establishes 
                measurable goals and objectives for the 
                organization.</DELETED>
                <DELETED>    ``(B) Consultation.--In developing the 5-
                year performance plan, the Secretary and the Chief 
                Operating Officer shall consult with students, 
                institutions of higher education, Congress, lenders, 
                and other interested parties not less than 30 days 
                prior to the implementation of the performance 
                plan.</DELETED>
                <DELETED>    ``(C) Areas.--The plan shall address the 
                PBO's responsibilities in the following 
                areas:</DELETED>
                        <DELETED>    ``(i) Improving service.--
                        Improving service to students and other 
                        participants in student financial aid programs 
                        authorized under this title, including making 
                        those programs more understandable to students 
                        and their parents.</DELETED>
                        <DELETED>    ``(ii) Reducing costs.--Reducing 
                        the costs of administering those 
                        programs.</DELETED>
                        <DELETED>    ``(iii) Improvement and 
                        integration of support systems.--Improving and 
                        integrating the information and delivery 
                        systems that support those programs.</DELETED>
                        <DELETED>    ``(iv) Delivery and information 
                        system.--Developing an open, common, and 
                        integrated delivery and information system for 
                        programs authorized under this title.</DELETED>
                        <DELETED>    ``(v) Other areas.--Any other 
                        areas identified by the Secretary.</DELETED>
        <DELETED>    ``(2) Annual report.--Each year, the Chief 
        Operating Officer shall prepare and submit to Congress, through 
        the Secretary, an annual report on the performance of the PBO, 
        including an evaluation of the extent to which the PBO met the 
        goals and objectives contained in the 5-year performance plan 
        described in paragraph (1) for the preceding year.</DELETED>
<DELETED>    ``(f) Chief Operating Officer.--</DELETED>
        <DELETED>    ``(1) Appointment.--</DELETED>
                <DELETED>    ``(A) In general.--The management of the 
                PBO shall be vested in a Chief Operating Officer who 
                shall be appointed by the Secretary to a term of not 
                less than 3 and not more than 5 years and compensated 
                without regard to chapters 33, 51, and 53 of title 5, 
                United States Code.</DELETED>
                <DELETED>    ``(B) Basis.--The appointment shall be 
                made on the basis of demonstrated ability in management 
                and experience in information technology or financial 
                services, without regard to political affiliation or 
                activity.</DELETED>
                <DELETED>    ``(C) Reappointment.--The Secretary may 
                reappoint the Chief Operating Officer to subsequent 
                terms of not less than 3 and not more than 5 years, so 
                long as the performance of the Chief Operating Officer, 
                as set forth in the performance agreement described in 
                paragraph (2), is satisfactory.</DELETED>
        <DELETED>    ``(2) Performance agreement.--</DELETED>
                <DELETED>    ``(A) In general.--Each year, the 
                Secretary and the Chief Operating Officer shall enter 
                into an annual performance agreement, that shall set 
                forth measurable organization and individual goals for 
                the Chief Operating Officer.</DELETED>
                <DELETED>    ``(B) Transmittal.--The final agreement 
                shall be transmitted to the Committee on Education and 
                the Workforce of the House of Representatives and the 
                Committee on Labor and Human Resources of the Senate, 
                and made publicly available.</DELETED>
        <DELETED>    ``(3) Compensation.--</DELETED>
                <DELETED>    ``(A) In general.--The Chief Operating 
                Officer is authorized to be paid at an annual rate of 
                basic pay not to exceed the maximum rate of basic pay 
                for the Senior Executive Service under section 5382 of 
                title 5, United States Code, including any applicable 
                locality-based comparability payment that may be 
                authorized under section 5304(h)(2)(C) of such 
                title.</DELETED>
                <DELETED>    ``(B) Bonus.--In addition, the Chief 
                Operating Officer may receive a bonus in an amount that 
                does not exceed 50 percent of such annual rate of basic 
                pay, based upon the Secretary's evaluation of the Chief 
                Operating Officer's performance in relation to the 
                goals set forth in the performance agreement described 
                in paragraph (2).</DELETED>
                <DELETED>    ``(C) Payment.--Payment of a bonus under 
                this subparagraph (B) may be made to the Chief 
                Operating Officer only to the extent that such payment 
                does not cause the Chief Operating Officer's total 
                aggregate compensation in a calendar year to equal or 
                exceed the amount of the President's salary under 
                section 102 of title 3, United States Code.</DELETED>
        <DELETED>    ``(4) Removal.--The Chief Operating Officer shall 
        be removable--</DELETED>
                <DELETED>    ``(A) by the President; or</DELETED>
                <DELETED>    ``(B) by the Secretary for misconduct or 
                failure to meet the goals set forth in the performance 
                agreement described in paragraph (2).</DELETED>
<DELETED>    ``(g) Senior Management.--</DELETED>
        <DELETED>    ``(1) Appointment.--</DELETED>
                <DELETED>    ``(A) In general.--The Chief Operating 
                Officer may appoint such senior managers as that 
                officer determines necessary without regard to the 
                provisions of title 5, United States Code, governing 
                appointments in the competitive service.</DELETED>
                <DELETED>    ``(B) Compensation.--The senior managers 
                described in subparagraph (A) may be paid without 
                regard to the provisions of chapter 51 and subchapter 
                III of chapter 53 of such title relating to 
                classification and General Schedule pay 
                rates.</DELETED>
        <DELETED>    ``(2) Performance agreement.--Each year, the Chief 
        Operating Officer and each senior manager appointed under this 
        subsection shall enter into an annual performance agreement 
        that sets forth measurable organization and individual 
        goals.</DELETED>
        <DELETED>    ``(3) Compensation.--</DELETED>
                <DELETED>    ``(A) In general.--A senior manager 
                appointed under this subsection may be paid at an 
                annual rate of basic pay of not more than the maximum 
                rate of basic pay for the Senior Executive Service 
                under section 5382 of title 5, United States Code, 
                including any applicable locality-based comparability 
                payment that may be authorized under section 
                5304(h)(2)(C) of such title 5.</DELETED>
                <DELETED>    ``(B) Bonus.--In addition, a senior 
                manager may receive a bonus in an amount such that the 
                manager's total annual compensation does not exceed 125 
                percent of the maximum rate of basic pay for the Senior 
                Executive Service, including any applicable locality-
                based comparability payment, based upon the Chief 
                Operating Officer's evaluation of the manager's 
                performance in relation to the goals set forth in the 
                performance agreement described in paragraph 
                (2).</DELETED>
        <DELETED>    ``(4) Removal.--A senior manager shall be 
        removable by the Secretary or by the Chief Operating 
        Officer.</DELETED>
<DELETED>    ``(h) Authorization of Appropriations.--The Secretary 
shall allocate from funds made available under section 458 such funds 
as are appropriate to the functions assumed by the PBO. In addition, 
there are authorized to be appropriated such sums as may be necessary 
to carry out the purposes of this section, including transition 
costs.''.</DELETED>

       <DELETED>TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT 
                           PROGRAMS</DELETED>

<DELETED>SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.</DELETED>

<DELETED>    (a) In General.--Title V (20 U.S.C. 1101 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) by amending the title heading to read as 
        follows:</DELETED>

      <DELETED>``TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT 
                         PROGRAMS'';</DELETED>

        <DELETED>    (2) by repealing parts A, B, C, D, E, and F of 
        title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104 et seq., 
        1107 et seq., 1111 et seq., and 1113 et seq.);</DELETED>
        <DELETED>    (3) by transferring part C of title IX, part D of 
        title IX, part A of title XI, and part A of title X (20 U.S.C. 
        1134h et seq., 1134l et seq., 1136 et seq., and 1135 et seq.) 
        to title V and redesignating such parts as parts A, B, C, and 
        D, respectively;</DELETED>
        <DELETED>    (4) by redesignating sections 931 through 935 (20 
        U.S.C. 1134h et seq. and 1134k-1 et seq.) as sections 511 
        through 515, respectively;</DELETED>
        <DELETED>    (5) by redesignating sections 941 through 947 (20 
        U.S.C. 1134l and 1134q-1) as section 521 through 527, 
        respectively;</DELETED>
        <DELETED>    (6) by redesignating sections 1101 through 1109 
        (20 U.S.C. 1136 through 1136h) as sections 531 through 539, 
        respectively; and</DELETED>
        <DELETED>    (7) by redesignating sections 1001, 1002, 1003, 
        1004, and 1011 (20 U.S.C. 1135, 1135a-1, 1135a-2, 1135a-3, and 
        1135a-11) as sections 541, 542, 543, 544, and 551, 
        respectively.</DELETED>
<DELETED>    (b) Cross Reference Conforming Amendments.--</DELETED>
        <DELETED>    (1) Jacob k. javits fellowship program.--Section 
        514(a) (as redesignated by subsection (a)(4)) (20 U.S.C. 
        1134k(a)) is amended by striking ``933'' and inserting 
        ``513''.</DELETED>
        <DELETED>    (2) Graduate assistance in areas of national 
        need.--Part B of title V (as redesignated by paragraphs (3) and 
        (5) of subsection (a)) (20 U.S.C. 1134l et seq.) is amended--
        </DELETED>
                <DELETED>    (A) in section 524(b)(7) (as redesignated 
                by subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by 
                striking ``945'' and inserting ``525''; and</DELETED>
                <DELETED>    (B) in section 525(c) (as redesignated by 
                subsection (a)(5)) (20 U.S.C. 1134p(c))--</DELETED>
                        <DELETED>    (i) by striking ``946(a)'' and 
                        inserting ``526(a)''; and</DELETED>
                        <DELETED>    (ii) by striking ``944(b)(2)'' and 
                        inserting ``524(b)(2)''.</DELETED>
        <DELETED>    (3) Urban and community service.--Part C of title 
        V (as redesignated by paragraphs (3) and (6) of subsection (a)) 
        (20 U.S.C. 1136 et seq.) is amended--</DELETED>
                <DELETED>    (A) in section 532(b) (20 U.S.C. 
                1136a(b)), by striking ``1104'' and inserting 
                ``534'';</DELETED>
                <DELETED>    (B) in section 534(12) (20 U.S.C. 
                1136c(12)), by striking ``1103(a)(2)(B)'' and inserting 
                ``533(a)(2)(B)''; and</DELETED>
                <DELETED>    (C) in section 538(1) (20 U.S.C. 
                1136g(1)), by striking ``1103'' and inserting 
                ``533''.</DELETED>
        <DELETED>    (4) FIPSE.--Subsections (b) and (c) of section 544 
        (as redesignated by subsection (a)(7)) (20 U.S.C. 1135a-3) each 
        are amended by striking ``1001(b)'' and inserting 
        ``541(b)''.</DELETED>

<DELETED>SEC. 502. PURPOSE.</DELETED>

<DELETED>    Section 500 (20 U.S.C. 1101) is amended to read as 
follows:</DELETED>

<DELETED>``SEC. 500. PURPOSE.</DELETED>

<DELETED>    ``It is the purpose of this title--</DELETED>
        <DELETED>    ``(1) to authorize national graduate fellowship 
        programs--</DELETED>
                <DELETED>    ``(A) in order to attract students of 
                superior ability and achievement, exceptional promise, 
                and demonstrated financial need, into high-quality 
                graduate programs and provide the students with the 
                financial support necessary to complete advanced 
                degrees; and</DELETED>
                <DELETED>    ``(B) that are designed to--</DELETED>
                        <DELETED>    ``(i) sustain and enhance the 
                        capacity for graduate education in areas of 
                        national need; and</DELETED>
                        <DELETED>    ``(ii) encourage talented students 
                        to pursue scholarly careers in the humanities, 
                        social sciences, and the arts; and</DELETED>
        <DELETED>    ``(2) to promote postsecondary 
        programs.''.</DELETED>

     <DELETED>PART A--JACOB K. JAVITS FELLOWSHIP PROGRAM</DELETED>

<DELETED>SEC. 511. AWARD OF FELLOWSHIPS.</DELETED>

<DELETED>    (a) Award of Jacob K. Javits Fellowships.--Section 511 (as 
redesignated by section 501(4)) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in the first sentence, by inserting 
                ``, financial need,'' after ``demonstrated 
                achievement'';</DELETED>
                <DELETED>    (B) in the second sentence--</DELETED>
                        <DELETED>    (i) by striking ``students 
                        intending'' and inserting ``students who are 
                        eligible to receive any grant, loan, or work 
                        assistance pursuant to section 484 and 
                        intend''; and</DELETED>
                        <DELETED>    (ii) by striking ``commonly 
                        accepted'' and all that follows through 
                        ``degree-granting institution'' and inserting 
                        ``the terminal highest degree awarded in the 
                        area of study''; and</DELETED>
                <DELETED>    (C) in the third sentence, by inserting 
                ``following the fiscal year'' after ``July 1 of the 
                fiscal year''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(d) Process and Timing of Competition.--The Secretary 
shall make applications for fellowships under this part available not 
later than October 1 of the academic year preceding the academic year 
for which fellowships will be awarded, and shall announce the 
recipients of fellowships under this section not later than March 1 of 
the academic year preceding the academic year for which the fellowships 
are awarded.</DELETED>
<DELETED>    ``(e) Authority To Contract.--The Secretary is authorized 
to enter into a contract with a nongovernmental agency to administer 
the program assisted under this part if the Secretary determines that 
entering into the contract is an efficient means of carrying out the 
program.''.</DELETED>
<DELETED>    (b) Allocation of Fellowships.--Section 512 (as 
redesignated by section 501(4)) (20 U.S.C. 1134i) is amended--
</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in the third sentence of paragraph 
                (1), by striking ``knowledgeable about and have 
                experience'' and inserting ``representative of a range 
                of disciplines''; and</DELETED>
                <DELETED>    (B) in paragraph (2)--</DELETED>
                        <DELETED>    (i) by amending subparagraph (B) 
                        to read as follows:</DELETED>
                <DELETED>    ``(B) establish general criteria for the 
                award of fellowships in academic fields identified by 
                the Board, or, in the event that the Secretary enters 
                into a contract with a nongovernmental entity to 
                administer the program assisted under this part, by 
                such nongovernmental entity;''; and</DELETED>
                        <DELETED>    (ii) in subparagraph (C), by 
                        inserting ``except that, in the event that the 
                        Secretary enters into a contract with a 
                        nongovernmental entity to administer the 
                        program, such panels may be appointed by such 
                        nongovernmental entity'' before the semicolon; 
                        and</DELETED>
        <DELETED>    (2) in the first sentence of subsection (b), by 
        inserting ``except that in the event that the Secretary enters 
        into a contract with a nongovernmental entity to administer the 
        program, such panels may be appointed by such nongovernmental 
        entity'' before the period.</DELETED>
<DELETED>    (c) Stipends.--Section 513 (as redesignated by section 
501(4)) (20 U.S.C. 1134j) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) by striking ``1993-1994'' and 
                inserting ``1999-2000''; and</DELETED>
                <DELETED>    (B) by striking ``according to 
                measurements of need approved by the Secretary'' and 
                inserting ``determined in accordance with part F of 
                title IV''; and</DELETED>
        <DELETED>    (2) in subsection (b)(1)(A)--</DELETED>
                <DELETED>    (A) in clause (i)--</DELETED>
                        <DELETED>    (i) by striking ``$6,000'' and 
                        inserting ``$10,000''; and</DELETED>
                        <DELETED>    (ii) by striking ``1993-1994'' and 
                        inserting ``1999-2000''; and</DELETED>
                <DELETED>    (B) in clause (ii)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        subclause (I), by striking ``1993-1994'' and 
                        inserting ``1999-2000'';</DELETED>
                        <DELETED>    (ii) in subclause (I), by striking 
                        ``$9,000 for the academic year 1993-1994'' and 
                        inserting ``$10,000 for the academic year 1999-
                        2000''; and</DELETED>
                        <DELETED>    (iii) in subclause (II), by 
                        striking ``$9,000'' and inserting 
                        ``$10,000''.</DELETED>
<DELETED>    (d) Authorization of Appropriations.--Section 515 (as 
redesignated by section 501(4)) (20 U.S.C. 1134k-1) is amended by 
striking ``1993'' and inserting ``1999''.</DELETED>

       <DELETED>PART B--GRADUATE ASSISTANCE IN AREAS OF NATIONAL 
                             NEED</DELETED>

<DELETED>SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL 
              NEED.</DELETED>

<DELETED>    (a) Designation of Areas of National Need.--Subsection (b) 
of section 523 (as redesignated by section 501(5)) (20 U.S.C. 1134n) is 
amended to read as follows:</DELETED>
<DELETED>    ``(b) Designation of Areas of National Need.--After 
consultation with the National Science Foundation, the National Academy 
of Sciences, and other appropriate Federal and nonprofit agencies and 
organizations, the Secretary shall designate areas of national need. In 
making such designations, the Secretary shall take into consideration--
</DELETED>
        <DELETED>    ``(1) the extent to which the national interest in 
        the area is compelling;</DELETED>
        <DELETED>    ``(2) the extent to which other Federal programs 
        support postbaccalaureate study in the area concerned; 
        and</DELETED>
        <DELETED>    ``(3) an assessment of how the program may achieve 
        the most significant impact with available 
        resources.''.</DELETED>
<DELETED>    (b) Content of Applications.--Section 524(b) (as 
redesignated by section 501(5)) (20 U.S.C. 1134o(b)) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (2)--</DELETED>
                <DELETED>    (A) by striking ``funds'' and inserting 
                ``sources''; and</DELETED>
                <DELETED>    (B) by inserting ``, which contribution 
                may be in cash or in kind, fairly valued'' before the 
                semicolon;</DELETED>
        <DELETED>    (2) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10), respectively;</DELETED>
        <DELETED>    (3) by inserting after paragraph (3) the 
        following:</DELETED>
        <DELETED>    ``(4) describe the number, types, and amounts of 
        the fellowships that the applicant intends to offer with grant 
        funds provided under this part;'' and</DELETED>
        <DELETED>    (4) in paragraph (5)(A) (as redesignated by 
        paragraph (2)), by striking ``criteria developed by the 
        institution'' and inserting ``part F of title IV''.</DELETED>
<DELETED>    (c) Awards.--Section 525 (as redesignated by section 
501(5)) (20 U.S.C. 1134p) is amended--</DELETED>
        <DELETED>    (1) in the third sentence of subsection (b)--
        </DELETED>
                <DELETED>    (A) by striking ``1993-1994'' and 
                inserting ``1999-2000''; and</DELETED>
                <DELETED>    (B) by striking ``according to 
                measurements of need approved by the Secretary'' and 
                inserting ``determined in accordance with part F of 
                title IV''; and</DELETED>
        <DELETED>    (2) in subsection (c), by striking ``such 
        payments'' and inserting ``such excess''.</DELETED>
<DELETED>    (d) Institutional Payments.--Section 526(a)(1) (as 
redesignated by section 501(5)) (20 U.S.C. 1134q(a)(1)) is amended--
</DELETED>
        <DELETED>    (1) in subparagraph (A)--</DELETED>
                <DELETED>    (A) by striking ``$6,000 annually'' and 
                inserting ``$10,000 for each academic year,''; 
                and</DELETED>
                <DELETED>    (B) by striking ``1993-1994'' and 
                inserting ``1999-2000''; and</DELETED>
        <DELETED>    (2) in subparagraph (B)--</DELETED>
                <DELETED>    (A) in the matter preceding clause (i), by 
                striking ``1993-1994'' and inserting ``1999-
                2000'';</DELETED>
                <DELETED>    (B) in clause (i), by striking ``$9,000 
                for the academic year 1993-1994'' and inserting 
                ``$10,000 for the academic year 1999-2000''; 
                and</DELETED>
                <DELETED>    (C) in clause (ii), by striking ``$9,000'' 
                and inserting ``$10,000''.</DELETED>
<DELETED>    (e) Authorization of Appropriations.--Section 527 (as 
redesignated by section 501(5)) (20 U.S.C. 1134q-1) is amended by 
striking ``$40,000,000 for fiscal year 1993'' and inserting 
``$30,000,000 for fiscal year 1999''.</DELETED>

           <DELETED>PART C--URBAN COMMUNITY SERVICE</DELETED>

<DELETED>SEC. 531. URBAN COMMUNITY SERVICE.</DELETED>

<DELETED>    (a) Priority.--Section 533(b) (as redesignated by section 
501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding at the end the 
following: ``In addition, the Secretary shall give priority to eligible 
institutions submitting applications that demonstrate the eligible 
institution's commitment to urban community service.''.</DELETED>
<DELETED>    (b) Authorization of Appropriations.--Section 539 (as 
redesignated by section 501(a)(6)) (20 U.S.C. 1136h) is amended by 
striking ``1993'' and inserting ``1999''.</DELETED>

      <DELETED>PART D--FUND FOR THE IMPROVEMENT OF POSTSECONDARY 
                          EDUCATION</DELETED>

<DELETED>SEC. 541. FUND FOR THE IMPROVEMENT OF POSTSECONDARY 
              EDUCATION.</DELETED>

<DELETED>    (a) Authority.--Section 541(a) (as redesignated by section 
501(a)(7)) (20 U.S.C. 1135(a)) is amended--</DELETED>
        <DELETED>    (1) in the matter preceding paragraph (1)--
        </DELETED>
                <DELETED>    (A) by striking ``or combinations of such 
                institutions'' and inserting ``, combinations of such 
                institutions,''; and</DELETED>
                <DELETED>    (B) by striking ``institutions and 
                combinations of such institutions'' and inserting 
                ``institutions, combinations, and agencies''; 
                and</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) by striking ``and programs involving 
                new'' and inserting ``, programs and joint efforts 
                involving''; and</DELETED>
                <DELETED>    (B) by striking ``new combinations'' and 
                inserting ``combinations''.</DELETED>
<DELETED>    (b) Technical Employees.--Section 543(a) (as redesignated 
by section 501(a)(7)) (20 U.S.C. 1135a-2(a)) is amended by striking ``5 
technical'' and inserting ``7 technical''.</DELETED>
<DELETED>    (c) Authorization of Appropriations.--Section 544 (as 
redesignated by section 501(a)(7)) (20 U.S.C. 1135a-3) is amended--
</DELETED>
        <DELETED>    (1) in subsection (a), by striking ``$20,000,000 
        for fiscal year 1993'' and inserting ``$26,000,000 for fiscal 
        year 1999''; and</DELETED>
        <DELETED>    (2) in subsection (b), by striking ``1993'' and 
        inserting ``1999''.</DELETED>
<DELETED>    (d) Areas of National Need.--</DELETED>
        <DELETED>    (1) Areas.--Section 551(c) (as redesignated by 
        section 501(a)(7)) (20 U.S.C. 1135a-11(c)) is amended--
        </DELETED>
                <DELETED>    (A) in paragraph (2), by striking ``Campus 
                climate and culture'' and inserting ``Institutional 
                restructuring to improve learning and promote cost 
                efficiencies'';</DELETED>
                <DELETED>    (B) in paragraph (3), by inserting ``of 
                model programs'' after ``dissemination''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(4) Articulation between 2-year and 4-year 
        institutions of higher education, including developing 
        innovative methods for ensuring the successful transfer of 
        students from 2-year to 4-year institutions of higher 
        education.''.</DELETED>
        <DELETED>    (2) Authorization of appropriations.--Section 
        551(d) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-
        11(d)) is amended by striking ``1993'' and inserting 
        ``1999''.</DELETED>

      <DELETED>PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH 
               DISABILITIES; GENERAL PROVISIONS</DELETED>

<DELETED>SEC. 551. HIGHER EDUCATION ACCESS FOR STUDENTS WITH 
              DISABILITIES; GENERAL PROVISIONS.</DELETED>

<DELETED>    Title V (20 U.S.C. 1101 et seq.) is amended further by 
adding at the end the following:</DELETED>

     <DELETED>``PART F--HIGHER EDUCATION ACCESS FOR STUDENTS WITH 
                         DISABILITIES</DELETED>

<DELETED>``SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS WITH 
              DISABILITIES.</DELETED>

<DELETED>    ``(a) Purpose.--It is the purpose of this part--</DELETED>
        <DELETED>    ``(1) to support the development of model programs 
        to provide technical assistance or training, and professional 
        development, for faculty and administrators in institutions of 
higher education, as defined in section 481(a), to provide the faculty 
and administrators with the skills and assistance to teach effectively 
students with disabilities; and</DELETED>
        <DELETED>    ``(2) to ensure effective evaluation and 
        dissemination of such model programs.</DELETED>
<DELETED>    ``(b) Grants Authorized.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary is authorized to 
        award grants to institutions of higher education to carry out 
        the purposes of this part.</DELETED>
        <DELETED>    ``(2) Model programs.--To the extent feasible, the 
        model programs developed under this part shall be developed for 
        a range of types and sizes of institutions of higher 
        education.</DELETED>
        <DELETED>    ``(3) Geographic distribution.--In awarding grants 
        under this part, the Secretary shall consider--</DELETED>
                <DELETED>    ``(A) providing an equitable geographic 
                distribution of such grants; and</DELETED>
                <DELETED>    ``(B) distributing such grants to urban 
                and rural areas.</DELETED>
        <DELETED>    ``(4) Approaches.--The Secretary shall award 
        grants under this part for a range of approaches to providing 
        support to faculty and administrators, such as in-service 
        training, professional development, customized and general 
        technical assistance, workshops, summer institutes, distance 
        learning and the use of educational technology.</DELETED>
<DELETED>    ``(c) Dissemination of Grants.--The Secretary may award 
grants to institutions of higher education that have demonstrated 
exceptional programs for students with disabilities under this part in 
order to disseminate those programs.</DELETED>
<DELETED>    ``(d) Applications.--Each institution of higher education 
desiring a grant under this part shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require. Each such application shall 
include--</DELETED>
        <DELETED>    ``(1) a plan to assess the needs of the 
        institution of higher education in order to meet the purposes 
        of this part, in consultation with a broad range of persons 
        within that institution; and</DELETED>
        <DELETED>    ``(2) a plan for coordinating with or 
        collaborating with the office within the institution that 
        provides services to students with disabilities, and the equal 
        opportunity office within the institution, if the offices 
        exist.</DELETED>
<DELETED>    ``(e) Use of Funds.--Any institution of higher education 
receiving a grant under this part--</DELETED>
        <DELETED>    ``(1) shall use the grant funds to--</DELETED>
                <DELETED>    ``(A) meet the purposes of this section; 
                and</DELETED>
                <DELETED>    ``(B) ensure that projects assisted under 
                this part include components for model development, 
                demonstration, evaluation, and dissemination to other 
                institutions of higher education; and</DELETED>
        <DELETED>    ``(2) may include, to the extent practicable, 
        graduate teaching assistants in the services provided under the 
        grant.</DELETED>
<DELETED>    ``(f) Grant Awards.--The Secretary shall award grants 
under this part for a period of 3 years.</DELETED>
<DELETED>    ``(g) Construction.--Nothing in this section shall be 
construed to impose any additional duty, obligation, or responsibility 
on an institution of higher education, or on the institution's 
administrators, faculty, or staff, in addition to the requirements of 
section 504 of the Rehabilitation Act of 1973 and the Americans with 
Disabilities Act of 1990.</DELETED>
<DELETED>    ``(h) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section $10,000,000 for 
fiscal year 1999 and such sums as may be necessary for each of the 4 
succeeding fiscal years.</DELETED>

            <DELETED>``PART G--GENERAL PROVISIONS</DELETED>

<DELETED>``SEC. 581. ADMINISTRATIVE PROVISIONS FOR PARTS A AND 
              B.</DELETED>

<DELETED>    ``(a) Coordinated Administration.--In carrying out the 
purpose described in section 500(1), the Secretary shall provide for 
coordinated administration and regulation of graduate programs assisted 
under parts A and B with other Federal programs providing assistance 
for graduate education in order to minimize duplication and improve 
efficiency to ensure that the programs are carried out in a manner most 
compatible with academic practices and with the standard timetables for 
applications for, and notifications of acceptance to, graduate 
programs.</DELETED>
<DELETED>    ``(b) Hiring Authority.--For purposes of carrying out 
parts A and B, the Secretary shall appoint, without regard to the 
provisions of title 5, United States Code, that govern appointments in 
the competitive service, such administrative and technical employees, 
with the appropriate educational background, as shall be needed to 
assist in the administration of such parts. The employees shall be paid 
without regard to the provisions of chapter 51 and subchapter III of 
chapter 53 of such title relating to classification and General 
Schedule pay rates.</DELETED>
<DELETED>    ``(c) Use for Religious Purposes Prohibited.--No 
institutional payment or allowance under section 513(b) or 526 shall be 
paid to a school or department of divinity as a result of the award of 
a fellowship under part A or B, respectively, to an individual who is 
studying for a religious vocation.</DELETED>
<DELETED>    ``(d) Evaluation.--The Secretary shall evaluate the 
success of assistance provided to individuals under part A or B with 
respect to graduating from their degree programs, and placement in 
faculty and professional positions.</DELETED>
<DELETED>    ``(e) Continuation Awards.--The Secretary, using funds 
appropriated to carry out parts A and B, and before awarding any 
assistance under such parts to a recipient that did not receive 
assistance under part C or D of title IX (as such parts were in effect 
prior to the date of enactment of the Higher Education Amendments of 
1998) shall continue to provide funding to recipients of assistance 
under such part C or D (as so in effect), as the case may be, pursuant 
to any multiyear award of such assistance.''.</DELETED>

     <DELETED>TITLE VI--INTERNATIONAL EDUCATION PROGRAMS</DELETED>

<DELETED>SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE 
              STUDIES.</DELETED>

<DELETED>    Part A of title VI (20 U.S.C. 1121 et seq.) is amended to 
read as follows:</DELETED>

<DELETED>``PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES</DELETED>

<DELETED>``SEC. 601. FINDINGS AND PURPOSES.</DELETED>

<DELETED>    ``(a) Findings.--The Congress finds that--</DELETED>
        <DELETED>    ``(1) the well-being of the United States, its 
        economy and long-range security, is dependent on the education 
        and training of Americans in international and foreign language 
        studies and on a strong research base in these areas;</DELETED>
        <DELETED>    ``(2) knowledge of other countries and the ability 
        to communicate in other languages is essential to the promotion 
        of mutual understanding and cooperation among nations; 
        and</DELETED>
        <DELETED>    ``(3) systematic efforts are necessary to enhance 
        the capacity of institutions of higher education in the United 
        States for--</DELETED>
                <DELETED>    ``(A) producing graduates with 
                international and foreign language expertise and 
                knowledge; and</DELETED>
                <DELETED>    ``(B) research regarding such expertise 
                and knowledge.</DELETED>
<DELETED>    ``(b) Purposes.--It is the purpose of this part--
</DELETED>
        <DELETED>    ``(1) to assist in the development of knowledge, 
        international study, resources and trained personnel;</DELETED>
        <DELETED>    ``(2) to stimulate the attainment of foreign 
        language acquisition and fluency;</DELETED>
        <DELETED>    ``(3) to develop a pool of international experts 
        to meet national needs; and</DELETED>
        <DELETED>    ``(4) to coordinate the programs of the Federal 
        Government in the areas of foreign language, area and other 
        international studies, including professional international 
        affairs education, and research.</DELETED>

<DELETED>``SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA 
              CENTERS AND PROGRAMS.</DELETED>

<DELETED>    ``(a) National Language and Area Centers and Programs 
Authorized.--</DELETED>
        <DELETED>    ``(1) Centers and programs.--</DELETED>
                <DELETED>    ``(A) In general.--The Secretary is 
                authorized--</DELETED>
                        <DELETED>    ``(i) to make grants to 
                        institutions of higher education, or 
                        combinations thereof, for the purpose of 
                        establishing, strengthening, and operating 
                        comprehensive language and area centers and 
                        programs; and</DELETED>
                        <DELETED>    ``(ii) to make grants to such 
                        institutions or combinations for the purpose of 
                        establishing, strengthening, and operating a 
                        diverse network of undergraduate language and 
                        area centers and programs.</DELETED>
                <DELETED>    ``(B) National resources.--The centers and 
                programs referred to in paragraph (1) shall be national 
                resources for--</DELETED>
                        <DELETED>    ``(i) teaching of any modern 
                        foreign language;</DELETED>
                        <DELETED>    ``(ii) instruction in fields 
                        needed to provide full understanding of areas, 
                        regions, or countries in which such language is 
                        commonly used;</DELETED>
                        <DELETED>    ``(iii) research and training in 
                        international studies, and the international 
                        and foreign language aspects of professional 
                        and other fields of study; and</DELETED>
                        <DELETED>    ``(iv) instruction and research on 
                        issues in world affairs which concern one or 
                        more countries.</DELETED>
        <DELETED>    ``(2) Authorized activities.--Any such grant may 
        be used to pay all or part of the cost of establishing or 
        operating a center or program, including the cost of--
        </DELETED>
                <DELETED>    ``(A) faculty, staff, and student travel 
                in foreign areas, regions, or countries;</DELETED>
                <DELETED>    ``(B) teaching and research 
                materials;</DELETED>
                <DELETED>    ``(C) curriculum planning and 
                development;</DELETED>
                <DELETED>    ``(D) bringing visiting scholars and 
                faculty to the center to teach or to conduct 
                research;</DELETED>
                <DELETED>    ``(E) establishing and maintaining 
                linkages with overseas institutions of higher education 
                and other organizations that may contribute to the 
                teaching and research of the center or program; 
                and</DELETED>
                <DELETED>    ``(F) training and improvement of the 
                staff, for the purpose of, and subject to such 
                conditions as the Secretary finds necessary for, 
                carrying out this section.</DELETED>
        <DELETED>    ``(3) Grants to maintain library collections.--The 
        Secretary may make grants to centers described in paragraph (1) 
        having important library collections, as determined by the 
        Secretary, for the maintenance of such collections.</DELETED>
        <DELETED>    ``(4) Outreach grants and summer institutes.--The 
        Secretary may make additional grants to centers described in 
        paragraph (1) for any one or more of the following 
        purposes:</DELETED>
                <DELETED>    ``(A) Programs of linkage or outreach 
                between foreign language, area studies, and other 
                international fields and professional schools and 
                colleges.</DELETED>
                <DELETED>    ``(B) Programs of linkage or outreach with 
                2-year and 4-year colleges and universities.</DELETED>
                <DELETED>    ``(C) Programs of linkage or outreach with 
                departments or agencies of Federal and State 
                Governments.</DELETED>
                <DELETED>    ``(D) Programs of linkage or outreach with 
                the news media, business, professional, or trade 
                associations.</DELETED>
                <DELETED>    ``(E) Summer institutes in foreign area, 
                foreign language, and other international fields 
                designed to carry out the programs of linkage and 
                outreach in subparagraphs (A), (B), (C), and 
                (D).</DELETED>
<DELETED>    ``(b) Stipends for Foreign Language and Area Studies.--
</DELETED>
        <DELETED>    ``(1) In general.--The Secretary is authorized to 
        make grants to institutions of higher education or combinations 
        of such institutions for the purpose of paying stipends to 
        individuals undergoing advanced training in any center or 
        program approved by the Secretary.</DELETED>
        <DELETED>    ``(2) Requirements.--Students receiving stipends 
        described in paragraph (1) shall be individuals who are engaged 
        in an instructional program with stated performance goals for 
        functional foreign language use or in a program developing such 
        performance goals, in combination with area studies, 
        international studies, or the international aspects of a 
        professional studies program.</DELETED>
        <DELETED>    ``(3) Allowances.--Stipends awarded to graduate 
        level recipients may include allowances for dependents and for 
        travel for research and study in the United States and 
        abroad.</DELETED>
<DELETED>    ``(c) Special Rule With Respect to Travel.--No funds may 
be expended under this part for undergraduate travel except in 
accordance with rules prescribed by the Secretary setting forth 
policies and procedures to assure that Federal funds made available for 
such travel are expended as part of a formal program of supervised 
study.</DELETED>

<DELETED>``SEC. 603. LANGUAGE RESOURCE CENTERS.</DELETED>

<DELETED>    ``(a) Language Resource Centers Authorized.--The Secretary 
is authorized to make grants to and enter into contracts with 
institutions of higher education, or combinations of such institutions, 
for the purpose of establishing, strengthening, and operating a small 
number of national language resource and training centers, which shall 
serve as resources to improve the capacity to teach and learn foreign 
languages effectively.</DELETED>
<DELETED>    ``(b) Authorized Activities.--The activities carried out 
by the centers described in subsection (a)--</DELETED>
        <DELETED>    ``(1) shall include effective dissemination 
        efforts, whenever appropriate; and</DELETED>
        <DELETED>    ``(2) may include--</DELETED>
                <DELETED>    ``(A) the conduct and dissemination of 
                research on new and improved teaching methods, 
                including the use of advanced educational 
                technology;</DELETED>
                <DELETED>    ``(B) the development and dissemination of 
                new teaching materials reflecting the use of such 
                research in effective teaching strategies;</DELETED>
                <DELETED>    ``(C) the development, application, and 
                dissemination of performance testing appropriate to an 
                educational setting for use as a standard and 
                comparable measurement of skill levels in all 
                languages;</DELETED>
                <DELETED>    ``(D) the training of teachers in the 
                administration and interpretation of performance tests, 
                the use of effective teaching strategies, and the use 
                of new technologies;</DELETED>
                <DELETED>    ``(E) the publication and dissemination to 
                individuals and organizations in the foreign language 
                field of instructional materials in the less commonly 
                taught languages;</DELETED>
                <DELETED>    ``(F) the development and dissemination of 
                materials designed to serve as a resource for foreign 
                language teachers at the elementary and secondary 
                school levels; and</DELETED>
                <DELETED>    ``(G) the operation of intensive summer 
                language institutes to train advanced foreign language 
                students, provide professional development, and improve 
                language instruction through preservice and inservice 
                language training for teachers.</DELETED>
<DELETED>    ``(c) Conditions for Grants.--Grants under this section 
shall be made on such conditions as the Secretary determines to be 
necessary to carry out the provisions of this section.</DELETED>

<DELETED>``SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN 
              LANGUAGE PROGRAMS.</DELETED>

<DELETED>    ``(a) Incentives for the Creation of New Programs and the 
Strengthening of Existing Programs in Undergraduate International 
Studies and Foreign Languages.--</DELETED>
        <DELETED>    ``(1) Authority.--The Secretary is authorized to 
        make grants to institutions of higher education, combinations 
        of such institutions, or partnerships between nonprofit 
        educational institutions and institutions of higher education, 
        to assist such institutions, combinations or partnerships in 
        planning, developing, and carrying out programs to improve 
        undergraduate instruction in international studies and foreign 
        languages. Such grants shall be awarded to institutions, 
        combinations or partnerships seeking to create new programs or 
        to strengthen existing programs in area studies, foreign 
        languages, and other international fields.</DELETED>
        <DELETED>    ``(2) Federal share and use of funds.--Grants made 
        under this section may be used to pay not more than 50 percent 
        of the cost of projects and activities which are an integral 
        part of such a program, such as--</DELETED>
                <DELETED>    ``(A) planning for the development and 
                expansion of undergraduate programs in international 
                studies and foreign languages;</DELETED>
                <DELETED>    ``(B) teaching, research, curriculum 
                development, faculty training in the United States or 
                abroad, and other related activities, including the 
                expansion of library and teaching resources;</DELETED>
                <DELETED>    ``(C) expansion of opportunities for 
                learning foreign languages, including less commonly 
                taught languages;</DELETED>
                <DELETED>    ``(D) programs under which foreign 
                teachers and scholars may visit institutions as 
                visiting faculty;</DELETED>
                <DELETED>    ``(E) programs designed to develop or 
                enhance linkages between 2-year and 4-year institutions 
                of higher education, or baccalaureate and post-
                baccalaureate programs or institutions;</DELETED>
                <DELETED>    ``(F) the development of undergraduate 
                study abroad programs in locations abroad in which such 
                study opportunities are not otherwise available and the 
                integration of these programs into specific on-campus 
                degree programs;</DELETED>
                <DELETED>    ``(G) the development of model programs to 
                enhance the effectiveness of study abroad, including 
                predeparture and post return programs;</DELETED>
                <DELETED>    ``(H) the development of programs designed 
                to integrate professional and technical education with 
                area studies, foreign languages, and other 
                international fields;</DELETED>
                <DELETED>    ``(I) the conduct of summer institutes in 
                foreign area, foreign language, and other international 
                fields for purposes that are consistent with the 
                projects and activities described in this subsection; 
                and</DELETED>
                <DELETED>    ``(J) the development of partnerships 
                between institutions of higher education and the 
                private sector, government, and elementary and 
                secondary education institutions to enhance 
                international knowledge.</DELETED>
        <DELETED>    ``(3) Non-federal share.--The non-Federal share of 
        the cost of the programs assisted under this subsection may be 
        provided either in cash or in kind. Such assistance may be 
        composed of institutional and noninstitutional funds, including 
        State, private sector, corporation, or foundation 
        contributions.</DELETED>
        <DELETED>    ``(4) Priority.--In awarding grants under this 
        section, the Secretary shall give priority to applications from 
        institutions of higher education, combinations or partnerships 
        that require entering students to have successfully completed 
        at least 2 years of secondary school foreign language 
        instruction or that require each graduating student to earn 2 
        years of postsecondary credit in a foreign language (or have 
        demonstrated equivalent competence in the foreign language) or, 
        in the case of a 2-year degree granting institution, offer 2 
        years of postsecondary credit in a foreign language.</DELETED>
        <DELETED>    ``(5) Grant conditions.--Grants under this 
        subsection shall be made on such conditions as the Secretary 
        determines to be necessary to carry out this 
        subsection.</DELETED>
        <DELETED>    ``(6) Application.--Each application for 
        assistance under this subsection shall include--</DELETED>
                <DELETED>    ``(A) evidence that the applicant has 
                conducted extensive planning prior to submitting the 
                application;</DELETED>
                <DELETED>    ``(B) an assurance that the faculty and 
                administrators of all relevant departments and programs 
                served by the applicant are involved in ongoing 
                collaboration with regard to achieving the stated 
                objectives of the application;</DELETED>
                <DELETED>    ``(C) an assurance that students at the 
                applicant institutions, as appropriate, will have equal 
                access to, and derive benefits from, the program 
                assisted under this subsection; and</DELETED>
                <DELETED>    ``(D) an assurance that each institution, 
                combination or partnership will use the Federal 
                assistance provided under this subsection to supplement 
                and not supplant funds expended by the institution, 
                prior to the receipt of the Federal assistance, for 
                programs to improve undergraduate instruction in 
                international studies and foreign languages.</DELETED>
        <DELETED>    ``(7) Evaluation.--The Secretary may establish 
        requirements for program evaluations and require grant 
        recipients to submit annual reports that evaluate the progress 
        and performance of students participating in programs assisted 
        under this subsection.</DELETED>
<DELETED>    ``(b) Programs of National Significance.--The Secretary 
may also award grants to public and private nonprofit agencies and 
organizations, including professional and scholarly associations, 
whenever the Secretary determines such grants will make an especially 
significant contribution to improving undergraduate international 
studies and foreign language programs.</DELETED>

<DELETED>``SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.</DELETED>

<DELETED>    ``(a) Authorized Activities.--The Secretary may, directly 
or through grants or contracts, conduct research and studies that 
contribute to achieving the purposes of this part. Such research and 
studies may include--</DELETED>
        <DELETED>    ``(1) studies and surveys to determine needs for 
        increased or improved instruction in foreign language, area 
        studies, or other international fields, including the demand 
        for foreign language, area, and other international specialists 
        in government, education, and the private sector;</DELETED>
        <DELETED>    ``(2) studies and surveys to assess the 
        utilization of graduates of programs supported under this title 
        by governmental, educational, and private sector organizations 
        and other studies assessing the outcomes and effectiveness of 
        programs so supported;</DELETED>
        <DELETED>    ``(3) evaluation of the extent to which programs 
        assisted under this title that address national needs would not 
        otherwise be offered;</DELETED>
        <DELETED>    ``(4) comparative studies of the effectiveness of 
        strategies to provide international capabilities at 
        institutions of higher education;</DELETED>
        <DELETED>    ``(5) research on more effective methods of 
        providing instruction and achieving competency in foreign 
        languages;</DELETED>
        <DELETED>    ``(6) the development and publication of 
        specialized materials for use in foreign language, area 
        studies, and other international fields, or for training 
        foreign language, area, and other international 
        specialists;</DELETED>
        <DELETED>    ``(7) studies and evaluations of effective 
        practices in the dissemination of international information, 
        materials, research, teaching strategies, and testing 
        techniques throughout the education community, including 
        elementary and secondary schools; and</DELETED>
        <DELETED>    ``(8) the application of performance tests and 
        standards across all areas of foreign language instruction and 
        classroom use.</DELETED>
<DELETED>    ``(b) Annual Report.--The Secretary shall prepare, 
publish, and announce an annual report listing the books and research 
materials produced with assistance under this section.</DELETED>

<DELETED>``SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.</DELETED>

<DELETED>    ``(a) Competitive Grants.--The Secretary shall award 
grants under section 602 competitively on the basis of criteria that 
separately, but not less rigorously, evaluates the applications for 
comprehensive and undergraduate language and area centers and 
programs.</DELETED>
<DELETED>    ``(b) Selection Criteria.--The Secretary shall set 
criteria for grants awarded under section 602 by which a determination 
of excellence shall be made to meet the differing objectives of 
graduate and undergraduate institutions.</DELETED>
<DELETED>    ``(c) Equitable Distribution of Grants.--The Secretary 
shall, to the extent practicable, award grants under this part (other 
than section 602) in such manner as to achieve an equitable 
distribution of the grant funds throughout the United States, based on 
the merit of a proposal as determined pursuant to a peer review process 
involving broadly representative professionals.</DELETED>

<DELETED>``SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.</DELETED>

<DELETED>    ``(a) Selection Criteria.--The Secretary shall make 
excellence the criterion for selection of grants awarded under section 
602.</DELETED>
<DELETED>    ``(b) Equitable Distribution.--To the extent practicable 
and consistent with the criterion of excellence, the Secretary shall 
award grants under this part (other than section 602) in such a manner 
as will achieve an equitable distribution of funds throughout the 
United States.</DELETED>
<DELETED>    ``(c) Support for Undergraduate Education.--The Secretary 
shall also award grants under this part in such manner as to ensure 
that an appropriate portion of the funds appropriated for this part (as 
determined by the Secretary) are used to support undergraduate 
education.</DELETED>

<DELETED>``SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.</DELETED>

<DELETED>    ``(a) Centers Authorized.--The Secretary is authorized to 
make grants to and enter into contracts with any American overseas 
research center that is a consortium of institutions of higher 
education (hereafter in this section referred to as a ``center'') to 
enable such center to promote postgraduate research, exchanges and area 
studies.</DELETED>
<DELETED>    ``(b) Use of Grants.--Grants made and contracts entered 
into pursuant to this section may be used to pay all or a portion of 
the cost of establishing or operating a center or program, including--
</DELETED>
        <DELETED>    ``(1) the cost of faculty and staff stipends and 
        salaries;</DELETED>
        <DELETED>    ``(2) the cost of faculty, staff, and student 
        travel;</DELETED>
        <DELETED>    ``(3) the cost of the operation and maintenance of 
        overseas facilities;</DELETED>
        <DELETED>    ``(4) the cost of teaching and research 
        materials;</DELETED>
        <DELETED>    ``(5) the cost of acquisition, maintenance, and 
        preservation of library collections;</DELETED>
        <DELETED>    ``(6) the cost of bringing visiting scholars and 
        faculty to a center to teach or to conduct research;</DELETED>
        <DELETED>    ``(7) the cost of organizing and managing 
        conferences; and</DELETED>
        <DELETED>    ``(8) the cost of publication and dissemination of 
        material for the scholarly and general public.</DELETED>
<DELETED>    ``(c) Limitation.--The Secretary shall only award grants 
to and enter into contracts with centers under this section that--
</DELETED>
        <DELETED>    ``(1) receive more than 50 percent of their 
        funding from public or private United States sources;</DELETED>
        <DELETED>    ``(2) have a permanent presence in the country in 
        which the center is located; and</DELETED>
        <DELETED>    ``(3) are organizations described in section 
        501(c)(3) of the Internal Revenue Code of 1986 which are exempt 
        from taxation under section 501(a) of such Code.</DELETED>
<DELETED>    ``(d) Development Grants.--The Secretary is authorized to 
make grants for the establishment of new centers. The grants may be 
used to fund activities that, within 1 year, will result in the 
creation of a center described in subsection (c).</DELETED>

<DELETED>``SEC. 609. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``There are authorized to be appropriated to carry out 
this part $80,000,000 for fiscal year 1999, and such sums as may be 
necessary for each of the 4 succeeding fiscal years.''.</DELETED>

<DELETED>SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION 
              PROGRAMS.</DELETED>

<DELETED>    Part B of title VI (20 U.S.C. 1130 et seq.) is amended--
</DELETED>
        <DELETED>    (1) in section 612 (20 U.S.C. 1130-1)--</DELETED>
                <DELETED>    (A) in subsection (c)--</DELETED>
                        <DELETED>    (i) in paragraph (1)--</DELETED>
                                <DELETED>    (I) in subparagraph (B), 
                                by striking ``advanced''; and</DELETED>
                                <DELETED>    (II) in subparagraph (C), 
                                by striking ``evening or summer''; 
                                and</DELETED>
                        <DELETED>    (ii) in paragraph (2)(C), by 
                        inserting ``foreign language,'' after 
                        ``studies,''; and</DELETED>
                <DELETED>    (B) in subsection (d)(2)(G), by inserting 
                ``, such as a representative of a community college in 
                the region served by the center'' before the period; 
                and</DELETED>
        <DELETED>    (2) in section 614 (20 U.S.C. 1130b)--</DELETED>
                <DELETED>    (A) in subsection (a), by striking 
                ``1993'' and inserting ``1999''; and</DELETED>
                <DELETED>    (B) in subsection (b), by striking 
                ``1993'' and inserting ``1999''.</DELETED>

<DELETED>SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.</DELETED>

<DELETED>    Part C of title VI (20 U.S.C. 1131 et seq.) is amended--
</DELETED>
        <DELETED>    (1) in section 621(e) (20 U.S.C. 1131(e))--
        </DELETED>
                <DELETED>    (A) by striking ``one-fourth'' and 
                inserting ``one-half''; and</DELETED>
                <DELETED>    (B) by adding at the end the following: 
                ``The non-Federal contribution shall be made from 
                private sector sources.'';</DELETED>
        <DELETED>    (2) by redesignating sections 622 through 627 (20 
        U.S.C. 1131a and 1131f) as sections 623 through 628, 
        respectively; and</DELETED>
        <DELETED>    (3) by inserting after section 621 (20 U.S.C. 
        1131) the following:</DELETED>

<DELETED>``SEC. 622. INSTITUTIONAL DEVELOPMENT.</DELETED>

<DELETED>    ``(a) In General.--The Institute shall award grants, from 
amounts available to the Institute for each fiscal year, to 
historically Black colleges and universities, Hispanic-serving 
institutions, tribally controlled community colleges, and minority 
institutions, to enable such colleges, universities, and institutions 
to strengthen international affairs programs.</DELETED>
<DELETED>    ``(b) Application.--No grant may be made by the Institute 
unless an application is made by the college, university, or 
institution at such time, in such manner, and accompanied by such 
information as the Institute may require.</DELETED>
<DELETED>    ``(c) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `historically Black college and 
        university' has the meaning given the term in section 
        322;</DELETED>
        <DELETED>    ``(2) the term `Hispanic-serving institution' has 
        the meaning given the term in section 316(b);</DELETED>
        <DELETED>    ``(3) the term `tribally controlled community 
        college' has the meaning given the term in section 2 of the 
        Tribally Controlled Community College Assistance Act of 1978 
        (25 U.S.C. 1801); and</DELETED>
        <DELETED>    ``(4) the term `minority institution' has the 
        meaning given the term in section 1046.'';</DELETED>
        <DELETED>    (4) in section 623 (as redesignated by paragraph 
        (2))--</DELETED>
                <DELETED>    (A) in the section heading, by striking 
                ``junior year'' and inserting ``study'';</DELETED>
                <DELETED>    (B) in subsection (b)(2)--</DELETED>
                        <DELETED>    (i) by inserting ``, or completing 
                        the third year of study in the case of a summer 
                        abroad program,'' after ``study''; 
                        and</DELETED>
                        <DELETED>    (ii) by striking ``junior year'' 
                        and inserting ``study'';</DELETED>
                <DELETED>    (C) in subsection (c)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        paragraph (1), by striking ``junior year'' and 
                        inserting ``study'';</DELETED>
                        <DELETED>    (ii) in paragraph (1), by striking 
                        ``junior year'' and inserting ``study''; 
                        and</DELETED>
                        <DELETED>    (iii) in paragraph (2)--</DELETED>
                                <DELETED>    (I) by striking ``one-
                                half'' and inserting ``one-third''; 
                                and</DELETED>
                                <DELETED>    (II) by striking ``junior 
                                year'' and inserting 
                                ``study'';</DELETED>
        <DELETED>    (5) in section 627 (as redesignated by paragraph 
        (2)) (20 U.S.C. 1131e), by striking ``625'' and inserting 
        ``626''; and</DELETED>
        <DELETED>    (6) in section 628 (as redesignated by paragraph 
        (2)) (20 U.S.C. 1131f), by striking ``1993'' and inserting 
        ``1999''.</DELETED>

<DELETED>SEC. 604. GENERAL PROVISIONS.</DELETED>

<DELETED>    Section 632 (20 U.S.C. 1132-1) is repealed.</DELETED>

     <DELETED>TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER 
                             ACTS</DELETED>

          <DELETED>PART A--INDIAN EDUCATION PROGRAMS</DELETED>

<DELETED>SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSISTANCE ACT 
              OF 1978.</DELETED>

<DELETED>    (a) Reauthorization.--</DELETED>
        <DELETED>    (1) Amount of grants.--Section 108(a)(2) of the 
        Tribally Controlled Community College Assistance Act of 1978 
        (25 U.S.C. 1808(a)(2)) is amended by striking ``$5,820'' and 
        inserting ``$6,000''.</DELETED>
        <DELETED>    (2) Authorization of appropriations.--</DELETED>
                <DELETED>    (A) Title i.--Section 110(a) of the 
                Tribally Controlled Community College Assistance Act of 
                1978 (25 U.S.C. 1810(a)) is amended--</DELETED>
                        <DELETED>    (i) in paragraph (1), by striking 
                        ``1993'' and inserting ``1999'';</DELETED>
                        <DELETED>    (ii) in paragraph (2), by striking 
                        ``$30,000,000 for fiscal year 1993'' and 
                        inserting ``$40,000,000 for fiscal year 
                        1999'';</DELETED>
                        <DELETED>    (iii) in paragraph (3), by 
                        striking ``1993'' and inserting ``1999''; 
                        and</DELETED>
                        <DELETED>    (iv) in paragraph (4), by striking 
                        ``1993'' and inserting ``1999''.</DELETED>
                <DELETED>    (B) Title iii.--Section 306(a) of the 
                Tribally Controlled Community College Assistance Act of 
                1978 (25 U.S.C. 1836(a)) is amended by striking 
                ``1993'' and inserting ``1999''.</DELETED>
                <DELETED>    (C) Title iv.--Section 403 of the Tribal 
                Economic Development and Technology Related Education 
                Assistance Act of 1990 (25 U.S.C. 1852) is amended by 
                striking ``1993'' and inserting ``1999''.</DELETED>
<DELETED>    (b) Name Change.--The Tribally Controlled Community 
College Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended--
</DELETED>
        <DELETED>    (1) by striking ``community college'' each place 
        the term appears and inserting ``college or 
        university'';</DELETED>
        <DELETED>    (2) by striking ``Community College'' each place 
        the term appears (other than when such term is preceded by the 
        term ``Navajo'') and inserting ``College or 
        University'';</DELETED>
        <DELETED>    (3) by striking ``community colleges'' each place 
        the term appears and inserting ``colleges or 
        universities'';</DELETED>
        <DELETED>    (4) by striking ``such college'' each place the 
        term appears and inserting ``such college or university''; 
        and</DELETED>
        <DELETED>    (5) by striking ``community college's'' and 
        inserting ``college or university's''.</DELETED>

<DELETED>SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN 
              CULTURE AND ART DEVELOPMENT.</DELETED>

<DELETED>    Section 1531 of the American Indian, Alaska Native, and 
Native Hawaiian Culture and Art Development Act (20 U.S.C. 4451) is 
amended to read as follows:</DELETED>

<DELETED>``SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``There is authorized to be appropriated to carry out part 
A $5,000,000 for fiscal year 1999.''.</DELETED>

    <DELETED>PART B--ADVANCED PLACEMENT INCENTIVE PROGRAM</DELETED>

<DELETED>SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.</DELETED>

<DELETED>    (a) Program Established.--The Secretary of Education is 
authorized to make grants to States having applications approved under 
subsection (d), from allotments under subsection (b), to enable the 
States to reimburse low-income individuals to cover part or all of the 
cost of advanced placement test fees, if the low-income individuals--
</DELETED>
        <DELETED>    (1) are enrolled in an advanced placement class; 
        and</DELETED>
        <DELETED>    (2) plan to take an advanced placement 
        test.</DELETED>
<DELETED>    (b) Allotment.--From the sum appropriated under subsection 
(j) for a fiscal year, the Secretary shall allot to each State an 
amount that bears the same relation to the sum as the number of low-
income individuals in the State bears to the number of low-income 
individuals in all States.</DELETED>
<DELETED>    (c) Information Dissemination.--The State educational 
agency may use not more than 5 percent of grant funds received for a 
fiscal year to disseminate information regarding the availability of 
test fee payments under this section to eligible individuals through 
secondary school teachers and guidance counselors.</DELETED>
<DELETED>    (d) Requirements for Approval of Applications.--In 
approving applications for grants the Secretary of Education shall--
</DELETED>
        <DELETED>    (1) require that each such application contain a 
        description of the advance placement test fees the State will 
        pay on behalf of individual students;</DELETED>
        <DELETED>    (2) require an assurance that any funds received 
        under this section, other than funds used in accordance with 
        subsection (c), shall be used only to pay advanced placement 
        test fees; and</DELETED>
        <DELETED>    (3) contain such information as the Secretary may 
        require to demonstrate that the State will ensure that a 
        student is eligible for payments under this section, including 
        the documentation required by chapter 1 of subpart 2 of part A 
        of title IV of the Higher Education Act of 1965 (20 U.S.C. 
        1070a-11 et seq.).</DELETED>
<DELETED>    (e) Funding Rule.--Funds provided under this section shall 
be used to supplement and not supplant other Federal, State, local or 
private funds available to assist low-income individuals in paying for 
advanced placement testing, except that such funds may be used to 
supplant the funds so available if the funds used to supplant are used 
to increase the participation of low-income individuals in advanced 
placement courses through teacher training and other activities 
directly related to increasing the availability of advanced placement 
courses.</DELETED>
<DELETED>    (f) Special Rule.--The Secretary of Education shall only 
award grants under this section for a fiscal year if the amount the 
College Board spends for the College Board's fee assistance program for 
low-income students for the fiscal year is not less than the amount the 
College Board spent for such program for the preceding fiscal 
year.</DELETED>
<DELETED>    (g) Regulations.--The Secretary of Education shall 
prescribe such regulations as are necessary to carry out this 
section.</DELETED>
<DELETED>    (h) Report.--Each State annually shall report to the 
Secretary of Education regarding--</DELETED>
        <DELETED>    (1) the number of low-income individuals in the 
        State who receive assistance under this section; and</DELETED>
        <DELETED>    (2) the teacher training and other activities 
        described in subsection (e).</DELETED>
<DELETED>    (i) Definition.--In this section:</DELETED>
        <DELETED>    (1) Advanced placement test.--The term ``advanced 
        placement test'' includes only an advanced placement test 
        approved by the Secretary of Education for the purposes of this 
        section.</DELETED>
        <DELETED>    (2) Low-income individual.--The term ``low-income 
        individual'' has the meaning given the term in section 
        402A(g)(2) of the Higher Education Act of 1965 (20 U.S.C. 
        1070a-11(g)(2)).</DELETED>
<DELETED>    (j) Authorization of Appropriations.--There are authorized 
to be appropriated $10,000,000 for fiscal year 1999 and such sums as 
may be necessary for each of the 4 succeeding fiscal years to carry out 
this section.</DELETED>

             <DELETED>PART C--INSTITUTE FOR PEACE</DELETED>

<DELETED>SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE OF 
              PEACE.</DELETED>

<DELETED>    The United States Institute of Peace Act (22 U.S.C. 4601 
et seq.) is amended--</DELETED>
        <DELETED>    (1) in section 1705 (22 U.S.C. 4604)--</DELETED>
                <DELETED>    (A) in subsection (f), by inserting 
                ``personal service and other'' after ``may enter 
                into''; and</DELETED>
                <DELETED>    (B) in subsection (o), by inserting after 
                ``Services'' the following: ``and use all sources of 
                supply and services of the General Services 
                Administration'';</DELETED>
        <DELETED>    (2) in section 1706(e)(4) (22 U.S.C. 4605(e)(4)), 
        by adding at the end the following: ``Service under an 
        appointment of less than 4 years shall not be treated as a term 
        for purposes of this paragraph.'';</DELETED>
        <DELETED>    (3) in section 1710(a)(1) (22 U.S.C. 4609(a)(1)), 
        by striking ``1993'' and inserting ``1999''; and</DELETED>
        <DELETED>    (4) in the second and third sentences of section 
        1712 (22 U.S.C. 4611), by striking ``shall'' each place it 
        appears and inserting ``may''.</DELETED>

     <DELETED>PART D--COMMUNITY SCHOLARSHIP MOBILIZATION</DELETED>

<DELETED>SEC. 741. SHORT TITLE.</DELETED>

<DELETED>    This part may be cited as the ``Community Scholarship 
Mobilization Act.''</DELETED>

<DELETED>SEC. 742. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) the local community, when properly organized 
        and challenged, is one of the best sources of academic support, 
        motivation toward achievement, and financial resources for 
        aspiring postsecondary students;</DELETED>
        <DELETED>    (2) local communities, working to complement or 
        augment services currently offered by area schools and 
        colleges, can raise the educational expectations and increase 
        the rate of postsecondary attendance of their youth by forming 
        locally-based organizations that provide both academic support 
        (including guidance, counseling, mentoring, tutoring, 
        encouragement, and recognition) and tangible, locally raised, 
        effectively targeted, publicly recognized, financial 
        assistance;</DELETED>
        <DELETED>    (3) proven methods of stimulating these community 
        efforts can be promoted through Federal support for the 
        establishment of regional, State or community program centers 
        to organize and challenge community efforts to develop 
        educational incentives and support for local students; 
        and</DELETED>
        <DELETED>    (4) using Federal funds to leverage private 
        contributions to help students from low-income families attain 
        educational and career goals is an efficient and effective 
        investment of scarce taxpayer-provided resources.</DELETED>

<DELETED>SEC. 743. DEFINITIONS.</DELETED>

<DELETED>    In this part:</DELETED>
        <DELETED>    (1) Regional, state or community program center.--
        The term ``regional, State or community program center'' means 
        an organization that--</DELETED>
                <DELETED>    (A) is a division of, responsible to, and 
                overseen by, the national organization; and</DELETED>
                <DELETED>    (B) is staffed by professionals trained to 
                create, develop, and sustain local entities in towns, 
                cities, and neighborhoods.</DELETED>
        <DELETED>    (2) Local entity.--The term ``local entity'' means 
        an organization that--</DELETED>
                <DELETED>    (A) is a nonprofit organization that is 
                described in section 501(c)(3) of the Internal Revenue 
                Code of 1986, and exempt from taxation under section 
                501(a) of such Code (or shall meet this criteria 
                through affiliation with the national 
                organization);</DELETED>
                <DELETED>    (B) is formed for the purpose of providing 
                educational scholarships and academic support for 
                residents of the local community served by such 
                organization;</DELETED>
                <DELETED>    (C) solicits broad-based community support 
                in its academic support and fund-raising 
                activities;</DELETED>
                <DELETED>    (D) is broadly representative of the local 
                community in the structures of its volunteer-operated 
                organization and has a board of directors that includes 
                leaders from local neighborhood organizations and 
                neighborhood residents, such as school or college 
                personnel, parents, students, community agency 
                representatives, retirees, and representatives of the 
                business community;</DELETED>
                <DELETED>    (E) awards scholarships without regard to 
                age, sex, marital status, race, creed, color, religion, 
                national origin or disability; and</DELETED>
                <DELETED>    (F) gives priority to awarding 
                scholarships for postsecondary education to deserving 
                students from low-income families in the local 
                community.</DELETED>
        <DELETED>    (3) National organization.--The term ``national 
        organization'' means an organization that--</DELETED>
                <DELETED>    (A) has the capacity to create, develop 
                and sustain local entities and affiliated regional, 
                State or community program centers;</DELETED>
                <DELETED>    (B) has the capacity to sustain newly 
                created local entities in towns, cities, and 
                neighborhoods through ongoing training support 
                programs;</DELETED>
                <DELETED>    (C) is described in section 501(c)(3) of 
                the Internal Revenue Code of 1986, and exempt from 
                taxation under section 501(a) of such Code;</DELETED>
                <DELETED>    (D) is a publicly supported organization 
                within the meaning of section 170(b)(1)(A)(iv) of such 
                Code;</DELETED>
                <DELETED>    (E) ensures that each of the 
                organization's local entities meet the criteria 
                described in subparagraphs (C) and (D); and</DELETED>
                <DELETED>    (F) has a program for or experience in 
                cooperating with secondary and postsecondary 
                institutions in carrying out the organization's 
                scholarship and academic support activities.</DELETED>
        <DELETED>    (4) High poverty area.--The term ``high poverty 
        area'' means a community with a higher percentage of children 
        from low-income families than the national average of such 
        percentage and a lower percentage of children pursuing 
        postsecondary education than the national average of such 
        percentage.</DELETED>
        <DELETED>    (5) Students from low-income families.--The term 
        ``students from low-income families'' means students 
        determined, pursuant to part F of title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1087kk et seq.), to be 
        eligible for a Federal Pell Grant under subpart 1 of part A of 
        title IV of such Act (20 U.S.C. 1070a).</DELETED>

<DELETED>SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.</DELETED>

<DELETED>    (a) Purpose.--It is the purpose of this part to establish 
and support regional, State or community program centers to enable such 
centers to foster the development of local entities in high poverty 
areas that promote higher education goals for students from low-income 
families by--</DELETED>
        <DELETED>    (1) providing academic support, including 
        guidance, counseling, mentoring, tutoring, and recognition; 
        and</DELETED>
        <DELETED>    (2) providing scholarship assistance for the cost 
        of postsecondary education.</DELETED>
<DELETED>    (b) Endowment Grant Authority.--From the funds 
appropriated pursuant to the authority of section 746, the Secretary 
shall award an endowment grant, on a competitive basis, to a national 
organization to enable such organization to support the establishment 
or ongoing work of regional, State or community program centers that 
foster the development of local entities in high poverty areas to 
improve high school graduation rates and postsecondary attendance 
through the provision of academic support services and scholarship 
assistance for the cost of postsecondary education.</DELETED>

<DELETED>SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.</DELETED>

<DELETED>    (a) In General.--The Secretary shall award one or more 
endowment grants described in section 744(b) pursuant to an agreement 
between the Secretary and a national organization. Such agreement 
shall--</DELETED>
        <DELETED>    (1) require the national organization to establish 
        an endowment fund in the amount of the grant, the corpus of 
        which shall remain intact and the interest income from which 
        shall be used to support the activities described in paragraphs 
        (2) and (3);</DELETED>
        <DELETED>    (2) require the national organization to use 70 
        percent of the interest income from the endowment fund in any 
        fiscal year to support the establishment or ongoing work of 
        regional, State or community program centers to enable such 
        centers to work with local communities to establish local 
        entities in high poverty areas and provide ongoing technical 
        assistance, training workshops, and other activities to help 
        ensure the ongoing success of the local entities;</DELETED>
        <DELETED>    (3) require the national organization to use 30 
        percent of the interest income from the endowment fund in any 
        fiscal year to provide scholarships for postsecondary education 
        to students from low-income families, which scholarships shall 
        be matched on a dollar-for-dollar basis from funds raised by 
        the local entities;</DELETED>
        <DELETED>    (4) require that at least 50 percent of all the 
        interest income from the endowment be allocated to establish 
        new local entities or support regional, State or community 
        program centers in high poverty areas;</DELETED>
        <DELETED>    (5) require the national organization to submit, 
        for each fiscal year in which such organization uses the 
        interest from the endowment fund, a report to the Secretary 
        that contains--</DELETED>
                <DELETED>    (A) a description of the programs and 
                activities supported by the interest on the endowment 
                fund;</DELETED>
                <DELETED>    (B) the audited financial statement of the 
                national organization for the preceding fiscal 
                year;</DELETED>
                <DELETED>    (C) a plan for the programs and activities 
                to be supported by the interest on the endowment fund 
                as the Secretary may require; and</DELETED>
                <DELETED>    (D) an evaluation of the programs and 
                activities supported by the interest on the endowment 
                fund as the Secretary may require; and</DELETED>
                <DELETED>    (E) data indicating the number of students 
                from low-income families who receive scholarships from 
                local entities, and the amounts of such 
                scholarships;</DELETED>
        <DELETED>    (6) contain such assurances as the Secretary may 
        require with respect to the management and operation of the 
        endowment fund; and</DELETED>
        <DELETED>    (7) contain an assurance that if the Secretary 
        determines that such organization is not in substantial 
        compliance with the provisions of this part, then the national 
        organization shall pay to the Secretary an amount equal to the 
        corpus of the endowment fund plus any accrued interest on such 
        fund that is available to the national organization on the date 
        of such determination.</DELETED>
<DELETED>    (b) Returned Funds.--All funds returned to the Secretary 
pursuant to subsection (a)(7) shall be available to the Secretary to 
carry out any scholarship or grant program assisted under title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).</DELETED>

<DELETED>SEC. 746. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    There are authorized to be appropriated to carry out this 
part $10,000,000 for fiscal year 2000.</DELETED>

     <DELETED>PART E--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY 
     TRANSITION TRAINING FOR INCARCERATED YOUTH OFFENDERS</DELETED>

<DELETED>SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY 
              TRANSITION TRAINING FOR INCARCERATED YOUTH 
              OFFENDERS.</DELETED>

<DELETED>    (a) Findings.--Congress makes the following 
findings:</DELETED>
        <DELETED>    (1) Over 150,000 youth offenders age 21 and 
        younger are incarcerated in the Nation's jails, juvenile 
        facilities, and prisons.</DELETED>
        <DELETED>    (2) Most youth offenders who are incarcerated have 
        been sentenced as first-time adult felons.</DELETED>
        <DELETED>    (3) Approximately 75 percent of youth offenders 
        are high school dropouts who lack basic literacy and life 
        skills, have little or no job experience, and lack marketable 
        skills.</DELETED>
        <DELETED>    (4) The average incarcerated youth has attended 
        school only through grade 10.</DELETED>
        <DELETED>    (5) Most of these youths can be diverted from a 
        life of crime into productive citizenship with available 
        educational, vocational, work skills, and related service 
        programs.</DELETED>
        <DELETED>    (6) If not involved with educational programs 
        while incarcerated, almost all of these youths will return to a 
        life of crime upon release.</DELETED>
        <DELETED>    (7) The average length of sentence for a youth 
        offender is about 3 years. Time spent in prison provides a 
        unique opportunity for education and training.</DELETED>
        <DELETED>    (8) Even with quality education and training 
        provided during incarceration, a period of intense supervision, 
        support, and counseling is needed upon release to ensure 
        effective reintegration of youth offenders into 
        society.</DELETED>
        <DELETED>    (9) Research consistently shows that the vast 
        majority of incarcerated youths will not return to the public 
        schools to complete their education.</DELETED>
        <DELETED>    (10) There is a need for alternative educational 
        opportunities during incarceration and after release.</DELETED>
<DELETED>    (b) Definition.--For purposes of this part, the term 
``youth offender'' means a male or female offender under the age of 25, 
who is incarcerated in a State prison, including a prerelease 
facility.</DELETED>
<DELETED>    (c) Grant Program.--The Secretary of Education (in this 
section referred to as the ``Secretary'') shall establish a program in 
accordance with this section to provide grants to the State 
correctional education agencies in the States, from allocations for the 
States under subsection (i), to assist and encourage incarcerated 
youths to acquire functional literacy, life, and job skills, through 
the pursuit of a postsecondary education certificate, or an associate 
of arts or bachelor's degree while in prison, and employment counseling 
and other related services which start during incarceration and 
continue through prerelease and while on parole.</DELETED>
<DELETED>    (d) Application.--To be eligible for a grant under this 
section, a State correctional education agency shall submit to the 
Secretary a proposal for a youth offender program that--</DELETED>
        <DELETED>    (1) identifies the scope of the problem, including 
        the number of incarcerated youths in need of postsecondary 
        education and vocational training;</DELETED>
        <DELETED>    (2) lists the accredited public or private 
        educational institution or institutions that will provide 
        postsecondary educational services;</DELETED>
        <DELETED>    (3) lists the cooperating agencies, public and 
        private, or businesses that will provide related services, such 
        as counseling in the areas of career development, substance 
        abuse, health, and parenting skills;</DELETED>
        <DELETED>    (4) describes the evaluation methods and 
        performance measures that the State correctional education 
        agency will employ, which methods and measures--</DELETED>
                <DELETED>    (A) shall be appropriate to meet the goals 
                and objectives of the proposal; and</DELETED>
                <DELETED>    (B) shall include measures of--</DELETED>
                        <DELETED>    (i) program completion;</DELETED>
                        <DELETED>    (ii) student academic and 
                        vocational skill attainment;</DELETED>
                        <DELETED>    (iii) success in job placement and 
                        retention; and</DELETED>
                        <DELETED>    (iv) recidivism;</DELETED>
        <DELETED>    (5) describes how the proposed programs are to be 
        integrated with existing State correctional education programs 
        (such as adult education, graduate education degree programs, 
        and vocational training) and State industry programs;</DELETED>
        <DELETED>    (6) addresses the educational needs of youth 
        offenders who are in alternative programs (such as boot camps); 
        and</DELETED>
        <DELETED>    (7) describes how students will be selected so 
        that only youth offenders eligible under subsection (f) will be 
        enrolled in postsecondary programs.</DELETED>
<DELETED>    (e) Program Requirements.--Each State correctional 
education agency receiving a grant under this section shall--</DELETED>
        <DELETED>    (1) integrate activities carried out under the 
        grant with the objectives and activities of the school-to-work 
        programs of such State, including--</DELETED>
                <DELETED>    (A) work experience or apprenticeship 
                programs;</DELETED>
                <DELETED>    (B) transitional worksite job training for 
                vocational education students that is related to the 
                occupational goals of such students and closely linked 
                to classroom and laboratory instruction;</DELETED>
                <DELETED>    (C) placement services in occupations that 
                the students are preparing to enter;</DELETED>
                <DELETED>    (D) employment-based learning programs; 
                and</DELETED>
                <DELETED>    (E) programs that address State and local 
                labor shortages;</DELETED>
        <DELETED>    (2) annually report to the Secretary and the 
        Attorney General on the results of the evaluations conducted 
        using the methods and performance measures contained in the 
        proposal; and</DELETED>
        <DELETED>    (3) provide to each State for each student 
        eligible under subsection (f) not more than $1,500 annually for 
        tuition, books, and essential materials, and not more than $300 
        annually for related services such as career development, 
        substance abuse counseling, parenting skills training, and 
        health education, for each eligible incarcerated 
        youth.</DELETED>
<DELETED>    (f) Student Eligibility.--A youth offender shall be 
eligible for participation in a program receiving a grant under this 
section if the youth offender--</DELETED>
        <DELETED>    (1) is eligible to be released within 5 years 
        (including a youth offender who is eligible for parole within 
        such time); and</DELETED>
        <DELETED>    (2) is 25 years of age or younger.</DELETED>
<DELETED>    (g) Length of Participation.--A State correctional 
education agency receiving a grant under this section shall provide 
educational and related services to each participating youth offender 
for a period not to exceed 5 years, 1 year of which may be devoted to 
study in a graduate education degree program or to remedial education 
services for students who have obtained a secondary school diploma. 
Educational and related services shall start during the period of 
incarceration in prison or prerelease and may continue during the 
period of parole.</DELETED>
<DELETED>    (h) Education Delivery Systems.--State correctional 
education agencies and cooperating institutions shall, to the extent 
practicable, use high-tech applications in developing programs to meet 
the requirements and goals of this section.</DELETED>
<DELETED>    (i) Allocation of Funds.--From the amounts appropriated 
pursuant to subsection (j), the Secretary shall allot to each State an 
amount that bears the same relationship to such funds as the total 
number of students eligible under subsection (f) in such State bears to 
the total number of such students in all States.</DELETED>
<DELETED>    (j) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $14,000,000 for fiscal 
year 1999 and such sums as may be necessary for each of the 4 
succeeding fiscal years.</DELETED>

            <DELETED>PART F--EDUCATION OF THE DEAF</DELETED>

<DELETED>SEC. 761. SHORT TITLE.</DELETED>

<DELETED>    This part may be cited as the ``Education of the Deaf 
Amendments of 1998''.</DELETED>

<DELETED>SEC. 762. ELEMENTARY AND SECONDARY EDUCATION 
              PROGRAMS.</DELETED>

<DELETED>    Section 104(b) of the Education of the Deaf Act of 1986 
(20 U.S.C. 4034(b)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by inserting 
                ``and'' after the semicolon;</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking ``; 
                and'' and inserting a period; and</DELETED>
                <DELETED>    (C) by striking subparagraph 
                (C);</DELETED>
        <DELETED>    (2) in the matter preceding subparagraph (A) of 
        paragraph (2)--</DELETED>
                <DELETED>    (A) by striking ``paragraph (1)'' and 
                inserting ``paragraph (1)(B)''; and</DELETED>
                <DELETED>    (B) by striking ``section 618(b)'' and 
                inserting ``section 618(a)(1)(A)'';</DELETED>
        <DELETED>    (3) in paragraph (3), by striking ``intermediate 
        educational unit'' and inserting ``educational service 
        agency'';</DELETED>
        <DELETED>    (4) in paragraph (4)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by striking 
                ``intermediate educational unit'' and inserting 
                ``educational service agency''; and</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking 
                ``intermediate educational units'' and inserting 
                ``educational service agencies''; and</DELETED>
        <DELETED>    (5) by amending subparagraph (C) to read as 
        follows:</DELETED>
                <DELETED>    ``(C) provide the child a free appropriate 
                public education in accordance with part B of the 
                Individuals with Disabilities Education Act and 
                procedural safeguards in accordance with the following 
                provisions of section 615 of such Act:</DELETED>
                        <DELETED>    ``(i) paragraphs (1), and (3) 
                        through (6), of subsection (b).</DELETED>
                        <DELETED>    ``(ii) Subsections (c) through 
                        (g).</DELETED>
                        <DELETED>    ``(iii) Subsection (h), except for 
                        the matter in paragraph (4) pertaining to 
                        transmission of findings and decisions to a 
                        State advisory panel.</DELETED>
                        <DELETED>    ``(iv) Paragraphs (1) and (2) of 
                        subsection (i).</DELETED>
                        <DELETED>    ``(v) Subsection (j)--</DELETED>
                                <DELETED>    ``(I) except that such 
                                subsection shall not be applicable to a 
                                decision by the University to refuse to 
                                admit a child; or</DELETED>
                                <DELETED>    ``(II) to dismiss a child, 
                                except that, before dismissing any 
                                child, the University shall give at 
                                least 60 days written notice to the 
                                child's parents and to the local 
                                educational agency in which the child 
                                resides, unless the dismissal involves 
                                a suspension, expulsion, or other 
                                change in placement covered under 
                                section 615(k).</DELETED>
                        <DELETED>    ``(vi) Subsections (k) through 
                        (m).''.</DELETED>

<DELETED>SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.</DELETED>

<DELETED>    Section 105(a) of the Education of the Deaf Act of 1986 
(20 U.S.C. 4305(a)) is amended--</DELETED>
        <DELETED>    (1) by striking ``within 1 year after enactment of 
        the Education of the Deaf Act Amendments of 1992, a new'' and 
        inserting ``and periodically update, an''; and</DELETED>
        <DELETED>    (2) by amending the second sentence to read as 
        follows: ``The Secretary or the University shall determine the 
        necessity for the periodic update described in the preceding 
        sentence.''.</DELETED>

<DELETED>SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR 
              THE DEAF.</DELETED>

<DELETED>    Paragraph (2) of section 112(a) of the Education of the 
Deaf Act of 1986 (20 U.S.C. 4332(a)) is amended to read as 
follows:</DELETED>
<DELETED>    ``(2) The Secretary and the institution of higher 
education with which the Secretary has an agreement under this 
section--</DELETED>
        <DELETED>    ``(A) shall periodically assess the need for 
        modification of the agreement; and</DELETED>
        <DELETED>    ``(B) shall periodically update the agreement as 
        determined necessary by the Secretary or the 
        institution.''.</DELETED>

<DELETED>SEC. 765. DEFINITIONS.</DELETED>

<DELETED>    Section 201 of the Education of the Deaf Act of 1986 (20 
U.S.C. 4351) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)(C), by striking ``Palau (but 
        only until the Compact of Free Association with Palau takes 
        effect),''; and</DELETED>
        <DELETED>    (2) in paragraph (5)--</DELETED>
                <DELETED>    (A) by inserting ``and'' after ``Virgin 
                Islands,''; and</DELETED>
                <DELETED>    (B) by striking ``, and Palau (but only 
                until the Compact of Free Association with Palau takes 
                effect)''.</DELETED>

<DELETED>SEC. 766. GIFTS.</DELETED>

<DELETED>    Subsection (b) of section 203 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4353) is amended to read as follows:</DELETED>
<DELETED>    ``(b) Independent Financial and Compliance Audit.--
</DELETED>
        <DELETED>    ``(1) In general.--Gallaudet University shall have 
        an annual independent financial and compliance audit made of 
        the programs and activities of the University, including the 
        national mission and school operations of the elementary and 
        secondary education programs at Gallaudet. The institution of 
        higher education with which the Secretary has an agreement 
        under section 112 shall have an annual independent financial 
        and compliance audit made of the programs and activities of 
        such institution of higher education, including NTID, and 
        containing specific schedules and analyses for all NTID funds, 
        as determined by the Secretary.</DELETED>
        <DELETED>    ``(2) Compliance.--As used in paragraph (1), 
        compliance means compliance with sections 102(b), 105(b)(4), 
        112(b)(5), and 203(c), paragraphs (2) and (3) of section 
        207(b), subsections (b)(2), (b)(3), and (c) through (f), of 
        section 207, and subsections (b) and (c) of section 
        210.</DELETED>
        <DELETED>    ``(3) Submission of audits.--A copy of each audit 
        described in paragraph (1) shall be provided to the Secretary 
        within 15 days of acceptance of the audit by the University or 
        the institution authorized to establish and operate the NTID 
        under section 112(a), as the case may be, but not later than 
        January 10 of each year.''.</DELETED>

<DELETED>SEC. 767. REPORTS.</DELETED>

<DELETED>    Section 204(3) of the Education of the Deaf Act of 1986 
(20 U.S.C. 4354(3)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking ``The 
        annual'' and inserting ``A summary of the annual''; 
        and</DELETED>
        <DELETED>    (2) in subparagraph (B), by striking ``the 
        annual'' and inserting ``a summary of the annual''.</DELETED>

<DELETED>SEC. 768. MONITORING, EVALUATION, AND REPORTING.</DELETED>

<DELETED>    Section 205(c) of the Education of the Deaf Act of 1986 
(20 U.S.C. 4355(c)) is amended by striking ``1993, 1994, 1995, 1996, 
and 1997'' and inserting ``1998 through 2003''.</DELETED>

<DELETED>SEC. 769. INVESTMENTS.</DELETED>

<DELETED>    Section 207 of the Education of the Deaf Act of 1986 (20 
U.S.C. 4357) is amended--</DELETED>
        <DELETED>    (1) in subsection (c)(1), by inserting ``the 
        Federal contribution of'' after ``shall invest'';</DELETED>
        <DELETED>    (2) in subsection (d)(3)(A), by striking ``prior'' 
        and inserting ``current''; and</DELETED>
        <DELETED>    (3) in subsection (h)--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``1993 
                through 1997'' and inserting ``1998 through 2003''; 
                and</DELETED>
                <DELETED>    (B) in paragraph (2), by striking ``1993 
                through 1997'' and inserting ``1998 through 
                2003''.</DELETED>

<DELETED>SEC. 770. INTERNATIONAL STUDENTS.</DELETED>

<DELETED>    Section 210(a) of the Education of the Deaf Act of 1986 
(20 U.S.C. 4359a(a)) is amended by inserting before the period ``, 
except that in any school year no United States citizen who is 
qualified to be admitted to the University or NTID and applies for 
admission to the University or NTID shall be denied admission because 
of the admission of an international student''.</DELETED>

<DELETED>SEC. 771. RESEARCH PRIORITIES.</DELETED>

<DELETED>    Section 211 of the Education of the Deaf Act of 1986 (20 
U.S.C. 4360) is amended to read as follows:</DELETED>

<DELETED>``SEC. 211. RESEARCH PRIORITIES.</DELETED>

<DELETED>    ``(a) Research Priorities.--Gallaudet University and the 
National Technical Institute for the Deaf shall each establish and 
disseminate priorities, that reflect public input, through a process 
that includes consumers, constituent groups, and the heads of other 
federally funded programs. The priorities for the University shall 
include activities conducted as part of the University's elementary and 
secondary education programs under section 104.</DELETED>
<DELETED>    ``(b) Research Reports.--The University and NTID shall 
each prepare and submit an annual research report, to the Secretary, 
the Committee on Education and the Workforce of the House of 
Representatives, and the Committee on Labor and Human Resources of the 
Senate, not later than January 10 of each year, that shall include--
</DELETED>
        <DELETED>    ``(1) a summary of the public input received as 
        part of the establishment and dissemination of priorities 
        required by subsection (a), and the University's and NTID's 
        response to the input; and</DELETED>
        <DELETED>    ``(2) a summary description of the research 
        undertaken by the University and NTID, the start and projected 
        end dates for each research project, the projected cost and 
        source or sources of funding for each project, and any products 
        resulting from research completed in the prior fiscal 
        year.''.</DELETED>

<DELETED>SEC. 772. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    Title II of the Education of the Deaf Act of 1986 (20 
U.S.C. 4351 et seq.) is amended by adding at the end the 
following:</DELETED>

<DELETED>``SEC. 212. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``(a) Gallaudet University.--There are authorized to be 
appropriated such sums as may be necessary for each of the fiscal years 
1998 through 2003 to carry out the provisions of titles I and II, 
relating to--</DELETED>
        <DELETED>    ``(1) Gallaudet University;</DELETED>
        <DELETED>    ``(2) Kendall Demonstration Elementary School; 
        and</DELETED>
        <DELETED>    ``(3) the Model Secondary School for the 
        Deaf.</DELETED>
<DELETED>    ``(b) National Technical Institute for the Deaf.--There 
are authorized to be appropriated such sums as may be necessary for 
each of the fiscal years 1998 through 2003 to carry out the provisions 
of titles I and II relating to the National Technical Institute for the 
Deaf.''.</DELETED>

<DELETED>SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.</DELETED>

<DELETED>    The Education of the Deaf Act of 1986 (20 U.S.C. 4301 et 
seq.) is amended by adding at the end the following:</DELETED>

  <DELETED>``TITLE III--COMMISSION ON EDUCATION OF THE DEAF</DELETED>

<DELETED>``SEC. 301. COMMISSION ESTABLISHED.</DELETED>

<DELETED>    ``(a) Establishment.--</DELETED>
        <DELETED>    ``(1) In general.--The Secretary shall establish a 
        Commission on the Education of the Deaf to identify those 
        education-related factors in the lives of individuals who are 
        deaf that result in barriers to successful postsecondary 
        education experiences and employment, and those education-
        related factors in the lives of individuals who are deaf that 
        contribute to successful postsecondary education experiences 
        and employment.</DELETED>
        <DELETED>    ``(2) Definition of individuals who are deaf.--In 
        this title, the term `individuals who are deaf' means all 
        persons with hearing impairments, including those who are hard-
        of-hearing, those deafened later in life, and those who are 
        profoundly deaf.</DELETED>
<DELETED>    ``(b) Composition.--</DELETED>
        <DELETED>    ``(1) In general.--The Commission shall be 
        composed of 13 members appointed by the Secretary from 
        recommendations made by the National Association of the Deaf, 
        the American Society for Deaf Children, the Alexander Graham 
        Bell Association, the President of Gallaudet, the Vice 
        President of the National Technical Institute for the Deaf, 
        State Schools for the Deaf, projects to train teachers of the 
        deaf funded under section 673(b) of the Individuals with 
        Disabilities Education Act, parent training and information 
        centers funded under section 682 of such Act, the Regional 
        Centers on Postsecondary Education for Individuals who are Deaf 
        funded under section 672 of such Act, Self-Help for Hard of 
Hearing People, and the Cothe Council on Education of the 
Deaf.</DELETED>
        <DELETED>    ``(2) Qualifications.--</DELETED>
                <DELETED>    ``(A) In general.--Members of the 
                Commission shall be appointed from among individuals 
                who have broad experience and expertise in deafness, 
                program evaluation, education, rehabilitation, and job 
                training generally, which expertise and experience 
                shall be directly relevant to the issues to be 
                addressed by the Commission.</DELETED>
                <DELETED>    ``(B) Deaf individuals.--At least 
                </DELETED>\<DELETED>1/3</DELETED>\ <DELETED>of members 
                of the Commission shall be individuals who are 
                deaf.</DELETED>
                <DELETED>    ``(C) Chairperson.--The chairperson of the 
                Commission shall be elected by a simple majority of the 
                Commission.</DELETED>
                <DELETED>    ``(D) Assistant secretary.--One member of 
                the Commission shall be the Assistant Secretary for 
                Special Education and Rehabilitative 
                Services.</DELETED>
        <DELETED>    ``(3) Date.--Members of the Commission shall be 
        appointed not later than 90 days after the date of enactment of 
        the Education of the Deaf Amendments of 1998.</DELETED>

<DELETED>``SEC. 302. DUTIES, REPORT, AND DURATION OF THE 
              COMMISSION.</DELETED>

<DELETED>    ``(a) Identification of Factors.--The Commission shall 
identify, with respect to individuals who are deaf, factors that pose 
barriers to or factors that facilitate--</DELETED>
        <DELETED>    ``(1) educational performance and progress of 
        students who are deaf in high school;</DELETED>
        <DELETED>    ``(2) educational performance and progress of 
        students who are deaf in postsecondary education;</DELETED>
        <DELETED>    ``(3) career exploration and selection;</DELETED>
        <DELETED>    ``(4) job performance and satisfaction in initial 
        postsecondary employment; and</DELETED>
        <DELETED>    ``(5) career advancement and 
        satisfaction.</DELETED>
<DELETED>    ``(b) Report.--The Commission shall report to the 
President and Congress such interim reports that the Commission deems 
appropriate, and not later than 18 months after the date of enactment 
of the Education of the Deaf Amendments of 1998, a final report 
containing the findings of the Commission with respect to the factors 
identified under subsection (a). The final report shall include 
recommendations, including legislative proposals, that the Commission 
deems advisable.</DELETED>
<DELETED>    ``(c) Termination.--The Commission shall terminate 90 days 
after the date on which the Commission submits the Commission's final 
report described in subsection (b).</DELETED>

<DELETED>``SEC. 303. ADMINISTRATIVE PROVISIONS.</DELETED>

<DELETED>    ``(a) Personnel.--</DELETED>
        <DELETED>    ``(1) In general.--The Commission may appoint such 
        personnel, including a staff director, as the Commission deems 
        necessary without regard to the provisions of title 5, United 
        States Code, except that the rate pay for any employee of the 
        Commission may not exceed the rate payable for level V of the 
        Executive Schedule under section 5316 of title 5, United States 
        Code.</DELETED>
        <DELETED>    ``(2) Procurement of temporary and intermittent 
        services.--The Chairperson of the Commission may procure 
        temporary and intermittent services under section 3109(b) of 
        title 5, United States Code, at rates for individuals which do 
        not exceed the daily equivalent of the annual rate of basic pay 
        prescribed for level V of the Executive Schedule under section 
        5316 of such title.</DELETED>
<DELETED>    ``(b) Hearings; Quorum.--</DELETED>
        <DELETED>    ``(1) Hearings.--The Commission or, with the 
        authorization of the Commission, any committee of the 
        Commission, may, for the purpose of carrying out the provisions 
        of this title, hold such hearings, sit, and act at such times 
        and such places in the United States as the Commission or such 
        committee may deem advisable.</DELETED>
        <DELETED>    ``(2) Quorum.--Seven members of the Commission 
        shall constitute a quorum, but 2 or more members may conduct 
        hearings.</DELETED>
        <DELETED>    ``(3) Hearings and public input.--In conducting 
        hearings and acquiring public input under this title, the 
        Commission may use various telecommunications media, including 
        teleconferencing, video-conferencing, the Internet, and other 
        media.</DELETED>
<DELETED>    ``(c) Consultation; Information and Statistics; Agency 
Cooperation.--</DELETED>
        <DELETED>    ``(1) In general.--In carrying out the 
        Commission's duties under this title and to the extent not 
        prohibited by Federal law, the Commission is authorized to 
        secure consultation, information, statistics, and cooperation 
        from Federal agencies, entities funded by the Federal 
        Government, and other entities the Commission deems 
        advisable.</DELETED>
        <DELETED>    ``(2) Special rule.--The Commission is authorized 
        to use, with their consent, the services, personnel, 
        information, and facilities of other Federal, State, local, and 
private agencies with or without reimbursement.</DELETED>

<DELETED>``SEC. 304. COMPENSATION OF MEMBERS.</DELETED>

<DELETED>    ``(a) United States Officer and Employee Members.--Members 
of the Commission who are officers or full-time employees of the United 
States shall serve without compensation in addition to that received 
for their services as officers or employees of the United States; but 
may be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies under 
subchapter I of chapter 57 of title 5, United States Code, while away 
from their homes or regular places of business in the performance of 
services for the Commission.</DELETED>
<DELETED>    ``(b) Public Members.--Members of the Commission who are 
not officers or full-time employees of the United States shall receive 
compensation at a rate that does not exceed the daily rate payable for 
level V of the Executive Schedule under section 5316 of title 5, United 
States Code, for each day (including travel time) during which such 
members are engaged in the actual performance of the duties of the 
Commission. In addition, such members may be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Commission.</DELETED>

<DELETED>``SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.</DELETED>

<DELETED>    ``There is authorized to be appropriated to carry out this 
title such sums as may be necessary for each of the fiscal years 1999 
and 2000.''.</DELETED>

                   <DELETED>PART G--REPEALS</DELETED>

<DELETED>SEC. 781. REPEALS.</DELETED>

<DELETED>    (a) Higher Education Act of 1965.--The following 
provisions of the Act (20 U.S.C. 1001 et seq.) are repealed:</DELETED>
        <DELETED>    (1) The heading for, sections 701 and 702 of, and 
        parts A, C, D, and E of, title VII (20 U.S.C. 1132a, 1132a-1, 
        1132b et seq., 1132d et seq., 1132f et seq., and 1132i et 
        seq.).</DELETED>
        <DELETED>    (2) Title VIII (20 U.S.C. 1133 et seq.).</DELETED>
        <DELETED>    (3) The heading for, section 901 of, and parts A, 
        B, E, F, and G of, title IX (20 U.S.C. 1134, 1134a et seq., 
        1134d et seq., 1134r et seq., 20 U.S.C. 1134s et seq., and 
        1134u et seq.).</DELETED>
        <DELETED>    (4) The heading for, subpart 2 of part B of, and 
        parts C, D and E of, title X (20 U.S.C. 1135c et seq., 1135e et 
        seq., 1135f, and 1135g et seq.).</DELETED>
        <DELETED>    (5) The heading for, and part B of, title XI (20 
        U.S.C. 1137 et seq.).</DELETED>
<DELETED>    (b) Higher Education Amendments of 1992.--The following 
provisions of the Higher Education Amendments of 1992 (Public Law 102-
325; 106 Stat 448) are repealed:</DELETED>
        <DELETED>    (1) Parts E, F, and G of title XIII of the Higher 
        Education Amendments of 1992 (25 U.S.C. 3332 et seq., 3351 et 
        seq., 3371) are repealed.</DELETED>
        <DELETED>    (2) Title XIV.</DELETED>
        <DELETED>    (3) Title XV.</DELETED>

                <DELETED>PART H--MISCELLANEOUS</DELETED>

<DELETED>SEC. 791. YEAR 2000 COMPUTER PROBLEM.</DELETED>

<DELETED>    (a) Sense of Congress.--With the year 2000 fast 
approaching, it is the sense of Congress that the Department of 
Education should--</DELETED>
        <DELETED>    (1) assess immediately the extent of the risk to 
        the operations of the student financial aid system posed by the 
        year 2000 computer problem;</DELETED>
        <DELETED>    (2) give the highest priority to correcting all 2-
        digit date-related problems in the Department's computer 
        systems to ensure that those systems continue to operate 
        effectively in the year 2000 and beyond; and</DELETED>
        <DELETED>    (3) develop contingency plans, with respect to the 
        year 2000 computer problem, for those computer systems that the 
        Department is unable to correct in time.</DELETED>
<DELETED>    (b) Report Required.--Not later than March 1, 1999, the 
Secretary of Education shall provide a report to the Committee on Labor 
and Human Resources of the Senate and the Committee on Education and 
the Workforce of the House of Representatives describing the compliance 
status of all mission critical systems at the Department, and 
contingency plans for those computer systems in the Department that the 
Department will be unable to correct in time, with respect to the year 
2000 computer problem.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Higher Education 
Amendments of 1998''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. General provisions.
Sec. 102. Federal control of education prohibited.
Sec. 103. National Advisory Committee on Institutional Quality and 
                            Integrity.
Sec. 104. Prior rights and obligations; recovery of payments.
Sec. 105. Technical and conforming amendments.

                  TITLE II--IMPROVING TEACHER QUALITY

Sec. 201. Improving teacher quality.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Transfers and redesignations.
Sec. 302. Findings.
Sec. 303. Strengthening institutions.
Sec. 304. Strengthening HBCU's.
Sec. 305. Endowment challenge grants.
Sec. 306. HBCU capital financing.
Sec. 307. Minority science and engineering improvement program.
Sec. 308. General provisions.

                      TITLE IV--STUDENT ASSISTANCE

  Part A--Grants to Students in Attendance at Institutions of Higher 
                               Education

Sec. 411. Repeals and redesignations.
Sec. 412. Federal Pell grants.
Sec. 413. TRIO programs.
Sec. 414. National early intervention scholarship and partnership 
                            program.
Sec. 415. Federal supplemental educational opportunity grants.
Sec. 416. Leveraging educational assistance partnership program.
Sec. 417. HEP and CAMP.
Sec. 418. Robert C. Byrd honors scholarship program.
Sec. 419. Child care access means parents in school.

             Part B--Federal Family Education Loan Program

Sec. 421. Advances for reserve funds.
Sec. 422. Federal Student Loan Reserve Fund.
Sec. 423. Agency Operating Fund.
Sec. 424. Applicable interest rates.
Sec. 425. Federal payments to reduce student interest costs.
Sec. 426. Voluntary flexible agreements with guaranty agencies.
Sec. 427. Federal PLUS loans.
Sec. 428. Federal consolidation loans.
Sec. 429. Requirements for disbursements of student loans.
Sec. 430. Default reduction program.
Sec. 431. Unsubsidized loans.
Sec. 432. Loan forgiveness for teachers.
Sec. 433. Loan forgiveness for child care providers.
Sec. 434. Common forms and formats.
Sec. 435. Student loan information by eligible lenders.
Sec. 436. Definitions.
Sec. 437. Delegation of functions.
Sec. 438. Special allowances.
Sec. 439. Study of market-based mechanisms for determining student loan 
                            interest rates.

                  Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations; community services.
Sec. 442. Grants for Federal work-study programs.
Sec. 443. Work colleges.

          Part D--William D. Ford Federal Direct Loan Program

Sec. 451. Selection of institutions.
Sec. 452. Terms and conditions.
Sec. 453. Contracts.
Sec. 454. Funds for administrative expenses.
Sec. 455. Loan cancellation for teachers.

                     Part E--Federal Perkins Loans

Sec. 461. Authorization of appropriations.
Sec. 462. Allocation of funds.
Sec. 463. Agreements with institutions of higher education.
Sec. 464. Terms of loans.
Sec. 465. Distribution of assets from student loan funds.
Sec. 466. Perkins Loan Revolving Fund.

                         Part F--Need Analysis

Sec. 471. Cost of attendance.
Sec. 472. Family contribution for dependent students.
Sec. 473. Family contribution for independent students without 
                            dependents other than a spouse.
Sec. 474. Regulations; updated tables and amounts.
Sec. 475. Refusal or adjustment of loan certifications.

                       Part G--General Provisions

Sec. 481. Master calendar.
Sec. 482. Forms and regulations.
Sec. 483. Student eligibility.
Sec. 484. Institutional refunds.
Sec. 485. Institutional and financial assistance information for 
                            students.
Sec. 486. National student loan data bank system.
Sec. 487. Training in financial aid services.
Sec. 488. Program participation agreements.
Sec. 489. Regulatory relief and improvement.
Sec. 489A. Distance education demonstration programs.
Sec. 489B. Advisory Committee on Student Financial Assistance.
Sec. 489C. Regional meetings and negotiated rulemaking.

                    Part H--Program Integrity Triad

Sec. 491. State role and responsibilities.
Sec. 492. Accrediting agency recognition.
Sec. 493. Eligibility and certification procedures.
Sec. 494. Program review and data.

  Part I--Administrative Provisions for Delivery of Student Financial 
                               Assistance

Sec. 495. Performance-based organization for the delivery of Federal 
                            student financial assistance.

        TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 501. Repeals, transfers, and redesignations.
Sec. 502. Purpose.

               Part A--Jacob K. Javits Fellowship Program

Sec. 511. Award of fellowships.

         Part B--Graduate Assistance in Areas of National Need

Sec. 521. Graduate assistance in areas of national need.

                    Part C--Urban Community Service

Sec. 531. Urban community service.

      Part D--Fund for the Improvement of Postsecondary Education

Sec. 541. Fund for the improvement of postsecondary education.

    Part E--Higher Education Access for Students With Disabilities; 
           Hispanic-Serving Institutions; General Provisions

Sec. 551. Higher education access for students with disabilities; 
                            Hispanic-serving institutions; general 
                            provisions.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
Sec. 604. General provisions.

        TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER ACTS

                   Part A--Indian Education Programs

Sec. 711. Tribally Controlled Community College Assistance Act of 1978.
Sec. 712. American Indian, Alaska Native, and Native Hawaiian culture 
                            and art development.

              Part B--Advanced Placement Incentive Program

Sec. 721. Advanced placement incentive program.

                Part C--United States Institute of Peace

Sec. 731. Authorities of the United States Institute of Peace.

               Part D--Community Scholarship Mobilization

Sec. 741. Short title.
Sec. 742. Findings.
Sec. 743. Definitions.
Sec. 744. Purpose, endowment grant authority.
Sec. 745. Grant agreement and requirements.
Sec. 746. Authorization of appropriations.

    Part E--Grants to States for Workplace and Community Transition 
               Training for Incarcerated Youth Offenders

Sec. 751. Grants to States for workplace and community transition 
                            training for incarcerated youth offenders.

                     Part F--Education of the Deaf

Sec. 761. Short title.
Sec. 762. Elementary and secondary education programs.
Sec. 763. Agreement with Gallaudet University.
Sec. 764. Agreement for the National Technical Institute for the Deaf.
Sec. 765. Definitions.
Sec. 766. Gifts.
Sec. 767. Reports.
Sec. 768. Monitoring, evaluation, and reporting.
Sec. 769. Investments.
Sec. 770. International students.
Sec. 771. Research priorities.
Sec. 772. Authorization of appropriations.
Sec. 773. Commission on Education of the Deaf.

                            Part G--Repeals

Sec. 781. Repeals.

                         Part H--Miscellaneous

Sec. 791. Year 2000 computer problem.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.).

                      TITLE I--GENERAL PROVISIONS

SEC. 101. GENERAL PROVISIONS.

    (a) Repeal; Transfer and Redesignation.--The Act (20 U.S.C. 1001 et 
seq.) is amended--
            (1) by repealing title I (20 U.S.C. 1001 et seq.);
            (2) by repealing sections 1203, 1206, 1211, and 1212 (20 
        U.S.C. 1143, 1145a, 1145e, and 1145f);
            (3) by striking the heading for title XII (20 U.S.C. 1141 
        et seq.);
            (4) by inserting before title III (20 U.S.C. 1051 et seq.) 
        the following:

                    ``TITLE I--GENERAL PROVISIONS'';

            (5) by transferring sections 1201, 1202, 1204 (as 
        renumbered by Public Law 90-575), 1204 (as added by Public Law 
        96-374), 1205, 1207, 1208, 1209, 1210, and 1213 (20 U.S.C. 
        1141, 1142, 1144, 1144a, 1145, 1145b, 1145c, 1145d, 1145d-1, 
        and 1145g) to follow the heading for title I (as inserted by 
        paragraph (4)); and
            (6) by redesignating sections 1201, 1202, 1204 (as 
        renumbered by Public Law 90-575), 1204 (as added by Public Law 
        96-374), 1205, 1207, 1208, 1209, 1210, and 1213 as sections 
        101, 102, 103, 104, 105, 106, 107, 108, 109, and 110, 
        respectively.

SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.

    Section 103 (as redesignated by section 101(a)(6)) (20 U.S.C. 1144) 
is amended by striking ``(b)''.

SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
              INTEGRITY.

    Section 105 (as redesignated by section 101(a)(6)) (20 U.S.C. 1145) 
is amended--
            (1) by striking the last sentence of subsection (a);
            (2) by redesignating subsections (c) through (f) as 
        subsections (d) through (g), respectively;
            (3) by inserting after subsection (b) the following:
    ``(c) Public Notice.--The Secretary shall--
            ``(1) annually publish in the Federal Register a list 
        containing the name of each member of the Committee and the 
        date of the expiration of the term of office of the member; and
            ``(2) publicly solicit nominations for each vacant position 
        or expiring term of office on the Committee.'';
            (4) in subsection (d) (as redesignated by paragraph (2))--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraphs (7) and (8) as 
                paragraphs (6) and (7), respectively; and
            (5) in subsection (g) (as redesignated by paragraph (2)), 
        by striking ``1998'' and inserting ``2004''.

SEC. 104. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF PAYMENTS.

    Title I (20 U.S.C. 1001 et seq.) is amended by adding after section 
110 (as redesignated by section 101(a)(6)) the following:

``SEC. 111. PRIOR RIGHTS AND OBLIGATIONS.

    ``(a) Authorization of Appropriations.--
            ``(1) Pre-1987 parts c and d of title vii.--There are 
        authorized to be appropriated such sums as may be necessary for 
        fiscal year 1999 and for each of the 4 succeeding fiscal years 
        to pay obligations incurred prior to 1987 under parts C and D 
        of title VII, as such parts were in effect before the effective 
        date of the Higher Education Amendments of 1992.
            ``(2) Post-1992 and pre-1998 part c of title vii.--There 
        are authorized to be appropriated such sums as may be necessary 
        for fiscal year 1999 and for each of the 4 succeeding fiscal 
        years to pay obligations incurred prior to the date of 
        enactment of the Higher Education Amendments of 1998 under part 
        C of title VII, as such part was in effect during the period--
                    ``(A) after the effective date of the Higher 
                Education Amendments of 1992; and
                    ``(B) prior to the date of enactment of the Higher 
                Education Amendments of 1998.
    ``(b) Legal Responsibilities.--
            ``(1) Pre-1987 title vii.--All entities with continuing 
        obligations incurred under parts A, B, C, and D of title VII, 
        as such parts were in effect before the effective date of the 
        Higher Education Amendments of 1992, shall be subject to the 
        requirements of such part as in effect before the effective 
        date of the Higher Education Amendments of 1992.
            ``(2) Post-1992 and pre-1998 part c of title vii.--All 
        entities with continuing obligations incurred under part C of 
        title VII, as such part was in effect during the period--
                    ``(A) after the effective date of the Higher 
                Education Amendments of 1992; and
                    ``(B) prior to the date of enactment of the Higher 
                Education Amendments of 1998,
        shall be subject to the requirements of such part as such part 
        was in effect during such period.

``SEC. 112. RECOVERY OF PAYMENTS.

    ``(a) Public Benefit.--Congress declares that, if a facility 
constructed with the aid of a grant under part A of title VII as such 
part A was in effect prior to the date of enactment of the Higher 
Education Amendments of 1998, or part B of such title as such part B 
was in effect prior to the date of enactment of the Higher Education 
Amendments of 1992, is used as an academic facility for 20 years 
following completion of such construction, the public benefit accruing 
to the United States will equal in value the amount of the grant. The 
period of 20 years after completion of such construction shall 
therefore be deemed to be the period of Federal interest in such 
facility for the purposes of such title as so in effect.
    ``(b) Recovery Upon Cessation of Public Benefit.--If, within 20 
years after completion of construction of an academic facility which 
has been constructed, in part with a grant under part A of title VII as 
such part A was in effect prior to the date of enactment of the Higher 
Education Amendments of 1998, or part B of title VII as such part B was 
in effect prior to the date of enactment of the Higher Education 
Amendments of 1992--
            ``(1) the applicant under such parts as so in effect (or 
        the applicant's successor in title or possession) ceases or 
        fails to be a public or nonprofit institution, or
            ``(2) the facility ceases to be used as an academic 
        facility, or the facility is used as a facility excluded from 
        the term `academic facility' (as such term was defined under 
        title VII, as so in effect), unless the Secretary determines 
        that there is good cause for releasing the institution from its 
        obligation,
the United States shall be entitled to recover from such applicant (or 
successor) an amount which bears to the value of the facility at that 
time (or so much thereof as constituted an approved project or 
projects) the same ratio as the amount of Federal grant bore to the 
cost of the facility financed with the aid of such grant. The value 
shall be determined by agreement of the parties or by action brought in 
the United States district court for the district in which such 
facility is situated.
    ``(c) Prohibition on Use for Religion.--Notwithstanding the 
provisions of subsections (a) and (b), no project assisted with funds 
under title VII (as in effect prior to the date of enactment of the 
Higher Education Amendments of 1998) shall ever be used for religious 
worship or a sectarian activity or for a school or department of 
divinity.''.

SEC. 105. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Conforming Amendments Correcting References to Section 1201.--
            (1) Agriculture.--
                    (A) Student internship programs.--Section 922 of 
                the Federal Agriculture Improvement and Reform Act of 
                1996 (7 U.S.C. 2279c) is amended--
                            (i) in subsection (a)(1)(B)--
                                    (I) by striking ``1201'' and 
                                inserting ``101''; and
                                    (II) by striking ``(20 U.S.C. 
                                1141)''; and
                            (ii) in subsection (b)(1)--
                                    (I) by striking ``1201'' and 
                                inserting ``101''; and
                                    (II) by striking ``(20 U.S.C. 
                                1141)''.
                    (B) Agricultural sciences education.--Section 
                1417(h)(1)(A) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3152(h)(1)(A)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
            (2) Armed forces.--
                    (A) Science and mathematics education improvement 
                program.--Section 2193(c)(1) of title 10, United States 
                Code, is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (B) Support of science, mathematics, and 
                engineering education.--Section 2199(2) of title 10, 
                United States Code, is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (C) Allowable costs under defense contracts.--
                Section 841(c)(2) of the National Defense Authorization 
                Act for fiscal year 1994 (10 U.S.C. 2324 note) is 
                amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (D) Environmental restoration institutional grants 
                for training dislocated defense workers and young 
                adults.--Section 1333(i)(3) of the National Defense 
                Authorization Act for fiscal year 1994 (10 U.S.C. 2701 
                note) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (E) Environmental education opportunities 
                program.--Section 1334(k)(3) of the National Defense 
                Authorization Act for fiscal year 1994 (10 U.S.C. 2701 
                note) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (F) Environmental scholarship and fellowship 
                programs.--Section 4451(b)(1) of the National Defense 
                Authorization Act for 1993 (10 U.S.C. 2701 note) is 
                amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
            (3) Application of antitrust laws to award of need-based 
        educational aid.--Section 568(c)(3) of the Improving America's 
        Schools Act of 1994 (15 U.S.C. 1 note) is amended--
                    (A) by striking ``1201(a)'' and inserting 
                ``101(a)''; and
                    (B) by striking ``(20 U.S.C. 1141(a))''.
            (4) Restrictions on former officers, employees, and elected 
        officials of the executive and legislative branches.--Section 
        207(j)(2)(B) of title 18, United States Code, is amended by 
        striking ``1201(a)'' and inserting ``101(a)''.
            (5) Education.--
                    (A) Higher education amendments of 1992.--Section 
                1(c) of the Higher Education Amendments of 1992 (20 
                U.S.C. 1001 note) is amended by striking ``1201'' and 
                inserting ``101''.
                    (B) Part f definitions.--Section 481 of the Higher 
                Education Act of 1965 (20 U.S.C. 1088) is amended--
                            (i) in subsection (a)--
                                    (I) in the matter preceding 
                                paragraph (1)(A), by striking 
                                ``1201(a)'' and inserting ``101(a)'';
                                    (II) in paragraph (1)(C), by 
                                striking ``1201(a)'' and inserting 
                                ``101(a)'';
                                    (III) in the first sentence of the 
                                matter preceding clause (i) of 
                                paragraph (2)(A), by striking 
                                ``1201(a)'' and inserting ``101(a)''; 
                                and
                                    (IV) in the matter following 
                                paragraph (2)(B)(ii), by striking 
                                ``1201(a)'' and inserting ``101(a)'';
                            (ii) in subsection (b)--
                                    (I) in the first sentence--
                                            (aa) in paragraph (2), by 
                                        striking ``1201(a)'' and 
                                        inserting ``101(a)''; and
                                            (bb) in paragraph (3), by 
                                        striking ``1201(a)'' and 
                                        inserting ``101(a)''; and
                                    (II) in the second sentence, by 
                                striking ``1201(a)'' and inserting 
                                ``101(a)''; and
                            (iii) in subsection (c)--
                                    (I) in the first sentence, by 
                                striking ``1201(a)'' and inserting 
                                ``101(a)''; and
                                    (II) in the second sentence, by 
                                striking ``1201(a)'' and inserting 
                                ``101(a)''.
                    (C) Treatment of branches.--Section 498(j)(2) of 
                the Higher Education Act of 1965 (20 U.S.C. 
                1099c(j)(2)) is amended by striking ``1201(a)(2)'' and 
                inserting ``101(a)(2)''.
                    (D) International education programs.--Section 
                631(a)(8) of the Higher Education Act of 1965 (20 
                U.S.C. 1132(a)(8)) is amended by striking ``1201(a)'' 
                each place it appears and inserting ``101(a)''.
                    (E) Dwight d. eisenhower leadership program.--
                Section 1081(d) of the Higher Education Act of 1965 (20 
                U.S.C. 1135f(d)) is amended by striking ``1201'' and 
                inserting ``101''.
                    (F) Disclosure requirements.--Section 
                429(d)(2)(B)(ii) of the General Education Provisions 
                Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is amended by 
                striking ``1201(a)'' and inserting ``101(a)''.
                    (G) Harry s. truman scholarships.--Section 3(4) of 
                the Harry S. Truman Memorial Scholarship Act (20 U.S.C. 
                2002(4)) is amended by striking ``1201(a)'' and 
                inserting ``101(a)''.
                    (H) Tech-prep education.--Section 347(2)(A) of the 
                Carl D. Perkins Vocational and Applied Technology 
                Education Act (20 U.S.C. 2394e(2)(A)) is amended by 
                striking ``1201(a)'' and inserting ``101(a)''.
                    (I) Education for economic security.--Section 3(6) 
                of the Education for Economic Security Act (20 U.S.C. 
                3902(6)) is amended by striking ``1201(a)'' and 
                inserting ``101(a)''.
                    (J) James madison memorial fellowships.--Section 
                815 of the James Madison Memorial Fellowship Act (20 
                U.S.C. 4514) is amended--
                            (i) in paragraph (3), by striking 
                        ``1201(a)'' and inserting ``101(a)''; and
                            (ii) in paragraph (4), by striking 
                        ``1201(d) of the Higher Education Act of 1965'' 
                        and inserting ``14101 of the Elementary and 
                        Secondary Education Act of 1965''.
                    (K) Barry goldwater scholarships.--Section 1403(4) 
                of the Barry Goldwater Scholarship and Excellence in 
                Education Act (20 U.S.C. 4702(4)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (L) Morris k. udall scholarships.--Section 4(6) of 
                the Morris K. Udall Scholarship and Excellence in 
                National Environmental and Native American Public 
                Policy Act of 1992 (20 U.S.C. 5602(6)) is amended by 
                striking ``1201(a)'' and inserting ``101(a)''.
                    (M) Bilingual education, and language enhancement 
                and acquisition.--Section 7501(4) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7601(4)) is 
                amended by striking ``1201(a)'' and inserting 
                ``101(a)''.
                    (N) General definitions.--Section 14101(17) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 8801(17)) is amended by striking ``1201(a)'' and 
                inserting ``101(a)''.
                    (O) National education statistics.--Section 
                402(c)(3) of the National Education Statistics Act of 
                1994 (20 U.S.C. 9001(c)(3)) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.
            (6) Foreign relations.--
                    (A) Environment and sustainable development 
                exchange program.--Section 240(d) of the Foreign 
                Relations Authorization Act, Fiscal Years 1994 and 1995 
                (22 U.S.C. 2452 note) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.
                    (B) Samantha smith memorial exchange program.--
                Section 112(a)(8) of the Mutual Educational and 
                Cultural Exchange Act of 1961 (22 U.S.C. 2460(a)(8)) is 
                amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (C) Soviet-eastern european training.--Section 
                803(1) of the Soviet-Eastern European Research and 
                Training Act of 1983 (22 U.S.C. 4502(1)) is amended by 
                striking ``1201(a)'' and inserting ``101(a)''.
                    (D) Developing country scholarships.--Section 
                603(d) of the Foreign Relations Authorization Act, 
                Fiscal Years 1986 and 1987 (22 U.S.C. 4703(d)) is 
                amended by striking ``1201(a)'' and inserting 
                ``101(a)''.
            (7) Indians.--
                    (A) Snyder act.--The last paragraph of section 410 
                of the Act entitled ``An Act authorizing appropriations 
                and expenditures for the administration of Indian 
                Affairs, and for other purposes'', approved November 2, 
                1921 (25 U.S.C. 13) (commonly known as the Snyder Act) 
                is amended by striking ``1201'' and inserting ``101''.
                    (B) Tribally controlled community college 
                assistance.--Section 2(a)(5) of the Tribally Controlled 
                Community College Assistance Act (25 U.S.C. 1801(a)(5)) 
                is amended by striking ``1201(a)'' and inserting 
                ``101(a)''.
                    (C) Construction of new facilities.--Section 
                113(b)(2) of the Tribally Controlled Community College 
                Assistance Act (25 U.S.C. 1813(b)(2)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (D) American indian teacher training.--Section 
                1371(a)(1)(B) of the Higher Education Amendments of 
                1992 (25 U.S.C. 3371(a)(1)(B)) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.
            (8) Labor.--
                    (A) Rehabilitation definitions.--Section 7(32) of 
                the Rehabilitation Act of 1973 (29 U.S.C. 706(32)) is 
                amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (B) State plans.--Section 101(a)(7)(A)(iv)(II) of 
                the Rehabilitation Act of 1973 (29 U.S.C. 
                721(a)(7)(A)(iv)(II)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (C) JTPA definitions.--Section 4(12) of the Job 
                Training Partnership Act (29 U.S.C. 1503(12)) is 
                amended by striking ``1201(a)'' and inserting 
                ``101(a)''.
                    (D) Tuition charges.--Section 141(d)(3)(B) of the 
                Job Training Partnership Act (29 U.S.C. 1551(d)(3)(B)) 
                is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
            (9) Surface mining control.--Section 701(32) of the Surface 
        Mining Control and Reclamation Act of 1977 (30 U.S.C. 1291(32)) 
        is amended by striking ``1201(a)'' and inserting ``101(a)''.
            (10) Pollution prevention.--Section 112(a)(1) of the 
        Federal Water Pollution Control Act (33 U.S.C. 1262(a)(1)) is 
        amended by striking ``1201'' and inserting ``101''.
            (11) Postal service.--Section 3626(b)(3) of title 39, 
        United States Code, is amended--
                    (A) by striking ``1201(a)'' and inserting 
                ``101(a)''; and
                    (B) by striking ``(20 U.S.C. 1141(a))''.
            (12) Public health and welfare.--
                    (A) Scientific and technical education.--Section 
                3(g) of the Scientific and Advanced-Technology Act of 
                1992 (42 U.S.C. 1862i(g)) is amended--
                            (i) in paragraph (2)--
                                    (I) by striking ``1201(a)'' and 
                                inserting ``101(a)''; and
                                    (II) by striking ``(20 U.S.C. 
                                1141(a))''; and
                            (ii) in paragraph (3)--
                                    (I) by striking ``1201(a)'' and 
                                inserting ``101(a)''; and
                                    (II) by striking ``(20 U.S.C. 
                                1141(a))''.
                    (B) Older americans.--Section 102(32) of the Older 
                Americans Act of 1965 (42 U.S.C. 3002(32)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (C) Justice system improvement.--Section 901(17) of 
                the Omnibus Crime Control and Safe Streets Act of 1968 
                (42 U.S.C. 3791(17)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (D) Energy technology commercialization services 
                program.--Section 362(f)(5)(A) of the Energy Policy and 
                Conservation Act (42 U.S.C. 6322(f)(5)(A)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (E) Environmental restoration and waste 
                management.--Section 3132(b)(1) of the National Defense 
                Authorization Act for Fiscal Years 1992 and 1993 (42 
                U.S.C. 7274e(b)(1)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (F) Head start.--Section 649(c)(3) of the Head 
                Start Act (42 U.S.C. 9844(c)(3)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (G) State dependent care development grants.--
                Section 670G(5) of the Child Care and Development Block 
                Grant Act of 1990 (42 U.S.C. 9877(5)) is amended by 
                striking ``1201(a)'' and inserting ``101(a)''.
                    (H) Instructional activities for low-income 
                youth.--The matter preceding subparagraph (A) of 
                section 682(b)(1) of the Community Services Block Grant 
                Act (42 U.S.C. 9910c(b)(1)) is amended by striking 
                ``1201(a)'' and inserting ``101(a)''.
                    (I) Drug abuse education.--Section 3601(7) of the 
                Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7)) is 
                amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (J) National and community service.--Section 
                101(13) of the National and Community Service Act of 
                1990 (42 U.S.C. 12511(13)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (K) Civilian community corps.--Section 166(6) of 
                the National and Community Service Act of 1990 (42 
                U.S.C. 12626(6)) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (L) Community schools youth services and 
                supervision grant program.--The definition of public 
                school in section 30401(b) of the Community Schools 
                Youth Services and Supervision Grant Program Act of 
                1994 (42 U.S.C. 13791(b)) is amended--
                            (i) by striking ``1201'' each place it 
                        appears and inserting ``101''; and
                            (ii) by striking ``(20 U.S.C. 1141(i))''.
                    (M) Police corps.--The definition of institution of 
                higher education in section 200103 of the Police Corps 
                Act (42 U.S.C. 14092) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
                    (N) Law enforcement scholarship program.--The 
                definition of institution of higher education in 
                section 200202 of the Law Enforcement Scholarship and 
                Recruitment Act (42 U.S.C. 14111) is amended--
                            (i) by striking ``1201(a)'' and inserting 
                        ``101(a)''; and
                            (ii) by striking ``(20 U.S.C. 1141(a))''.
            (13) Telecommunications.--Section 223(h)(4) of the 
        Telecommunications Act of 1934 (47 U.S.C. 223(h)(4)) is 
        amended--
                    (A) by striking ``1201'' and inserting ``101''; and
                    (B) by striking ``(20 U.S.C. 1141)''.
            (14) War and national defense.--Section 808(3) of the David 
        L. Boren National Security Education Act of 1991 (50 U.S.C. 
        1908(3)) is amended--
                    (A) by striking ``1201(a)'' and inserting 
                ``101(a)''; and
                    (B) by striking ``(20 U.S.C. 1141(a))''.
    (b) Cross References.--The Act (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 402A(c)(2) (20 U.S.C. 1070a-11(c)(2)), by 
        striking ``1210'' and inserting ``110'';
            (2) in section 481 (20 U.S.C. 1088)--
                    (A) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``1201(a)'' and inserting ``101(a)''; 
                                and
                                    (II) in subparagraph (C), by 
                                striking ``1201(a)'' and inserting 
                                ``101(a)''; and
                            (ii) in paragraph (2)--
                                    (I) in the matter preceding clause 
                                (i) of subparagraph (A), by striking 
                                ``1201(a)'' and inserting ``101(a)''; 
                                and
                                    (II) in the matter following clause 
                                (ii) of subparagraph (B), by striking 
                                ``1201(a)'' and inserting ``101(a)'';
                    (B) in subsection (b), by striking ``1201(a)'' each 
                place the term appears and inserting ``101(a)''; and
                    (C) in subsection (c), by striking ``1201(a)'' each 
                place the term appears and inserting ``101(a)'';
            (3) in section 485(f)(1)(I) (20 U.S.C. 1092(f)(1)(I)), by 
        striking ``1213'' and inserting ``111'';
            (4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)), by 
        striking ``1201(a)(2)'' and inserting ``101(a)(2)'';
            (5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)), by 
        striking ``1201(a)'' and inserting ``101(a)'';
            (6) in section 631(a)(8) (20 U.S.C. 1132(a)(8))--
                    (A) by striking ``section 1201(a)'' each place the 
                term appears and inserting ``section 101(a)''; and
                    (B) by striking ``of 1201(a)'' and inserting ``of 
                section 101(a)''; and
            (7) in section 1081(d) (20 U.S.C. 1135f(d)), by striking 
        ``1201'' and inserting ``101(a)''.

                  TITLE II--IMPROVING TEACHER QUALITY

SEC. 201. IMPROVING TEACHER QUALITY.

    The Act (20 U.S.C. 1001) is amended by inserting after section 112 
(as added by section 104) the following:

                 ``TITLE II--IMPROVING TEACHER QUALITY

``SEC. 201. PURPOSES.

    ``The purpose of this title is to--
            ``(1) improve student achievement;
            ``(2) improve the quality of the current and future 
        teaching force by improving the preparation of prospective 
        teachers and enhancing professional development activities; and
            ``(3) hold institutions of higher education accountable for 
        preparing teachers who have the necessary teaching skills and 
        are highly competent in the academic content areas in which the 
        teachers plan to teach, including training in the effective 
        uses of technologies in the classroom.

                       ``PART A--TEACHER QUALITY

            ``Subpart 1--Teacher Quality Enhancement Grants

``SEC. 211. GRANTS AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
States to enable the States to carry out the activities described in 
section 212. Each grant may be awarded for a period of not more than 5 
years.
    ``(b) State Designation.--
            ``(1) In general.--A State desiring a grant under this 
        subpart shall, consistent with State law, designate the chief 
        individual or entity in the State responsible for the State 
        supervision of education, to administer the activities assisted 
        under this subpart.
            ``(2) Consultation.--The individual or entity designated 
        under paragraph (1) shall consult with the Governor, State 
        board of education, or State educational agency, as 
        appropriate.
            ``(3) Construction.--Nothing in this subpart shall be 
        construed to negate or supersede the legal authority under 
        State law of any State agency, State entity, or State public 
        official over programs that are under the jurisdiction of the 
        agency, entity, or official.
    ``(c) Matching Requirement.--Each State receiving a grant under 
this subpart shall provide, from non-Federal sources, an amount equal 
to \1/2\ of the amount of the grant, in cash or in kind, to carry out 
the activities supported through the grant.

``SEC. 212. USE OF FUNDS.

    ``A State that receives a grant under this subpart shall use the 
grant funds to reform teacher preparation requirements, and to ensure 
that current and future teachers possess the necessary teaching skills 
and academic content knowledge in the subject areas in which the 
teachers are assigned to teach, by carrying out 1 or more of the 
following activities:
            ``(1) Reforms.--Implementing reforms that hold institutions 
        of higher education with teacher preparation programs 
        accountable for preparing teachers who are highly competent in 
        the academic content areas in which the teachers plan to teach, 
        which may include the use of rigorous subject matter competency 
        tests and the requirement that a teacher have an academic major 
        in the subject area, or related discipline, in which the 
        teacher plans to teach.
            ``(2) Certification or licensure requirements.--Reforming 
        teacher certification or licensure requirements to ensure that 
        new teachers have the necessary teaching skills and academic 
        content knowledge in the subject areas in which teachers are 
        assigned to teach.
            ``(3) Alternatives to traditional preparation for 
        teaching.--Providing prospective teachers alternatives to 
        traditional preparation for teaching through programs at 
        colleges of arts and sciences or at nonprofit educational 
        organizations.
            ``(4) Alternative routes.--Funding programs that establish, 
        expand, or improve alternative routes to State certification 
        for highly qualified individuals from other occupations and 
        recent college graduates with records of academic distinction, 
        including support during the initial teaching experience.
            ``(5) Recruitment; pay; removal.--Developing and 
        implementing effective mechanisms to ensure that schools are 
        able to effectively recruit highly qualified teachers, to 
        financially reward those teachers and principals whose students 
        have made significant progress toward high academic 
        performance, such as through performance-based compensation 
        systems and access to ongoing professional development 
        opportunities for teachers and administrators, and to remove 
        teachers who are not qualified.
            ``(6) Innovative efforts.--Development and implementation 
        of innovative efforts aimed at reducing the shortage of highly 
        qualified teachers in high poverty urban and rural areas, that 
        may include the recruitment of highly qualified individuals 
        from other occupations through alternative certification 
        programs.
            ``(7) Social promotion.--Development and implementation of 
        efforts to address the problem of social promotion and to 
        prepare teachers to effectively address the issues raised by 
        ending the practice of social promotion.

``SEC. 213. COMPETITIVE AWARDS.

    ``(a) Annual Awards; Competitive Basis.--The Secretary shall award 
grants under this subpart annually and on a competitive basis.
    ``(b) Peer Review Panel.--The Secretary shall provide the 
applications submitted by States under section 214 to a peer review 
panel for evaluation. With respect to each application, the peer review 
panel shall initially recommend the application for funding or for 
disapproval.
    ``(c) Priority.--In recommending applications for funding to the 
Secretary, the panel shall give priority to applications from States 
that describe activities that--
            ``(1) include innovative reforms to hold institutions of 
        higher education with teacher preparation programs accountable 
        for preparing teachers who are highly competent in the academic 
        content areas in which the teachers plan to teach; and
            ``(2) involve the development of innovative efforts aimed 
        at reducing the shortage of highly qualified teachers in high 
        poverty urban and rural areas.

``SEC. 214. APPLICATIONS.

    ``(a) In General.--Each State desiring a grant under this subpart 
shall submit an application to the Secretary at such time, in such 
manner and accompanied by such information as the Secretary may 
require.
    ``(b) Content of Applications.--Such application shall include a 
description of how the State intends to use funds provided under this 
subpart.

           ``Subpart 2--Teacher Training Partnerships Grants

``SEC. 221. GRANTS AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
teacher training partnerships to enable the partnerships to carry out 
the activities described in section 222. Each grant may be awarded for 
a period of not more than 5 years.
    ``(b) Definitions.--In this part:
            ``(1) Teacher training partnerships.--
                    ``(A) In general.--The term `teacher training 
                partnership' means a partnership that--
                            ``(i) shall include a school of arts and 
                        sciences, a school or program of education, a 
                        local educational agency, and a kindergarten 
                        through grade 12 school;
                            ``(ii) shall include a high need local 
                        educational agency or kindergarten through 
                        grade 12 school; and
                            ``(iii) may include a State educational 
                        agency, a pre-kindergarten program, a nonprofit 
                        educational organization, a business, or a 
                        teacher organization.
                    ``(B) High need.--A local educational agency or 
                kindergarten through grade 12 school shall be 
                considered high need for purposes of subparagraph 
                (A)(ii) if the agency or school serves an area within a 
                State in which there is--
                            ``(i) a large number of individuals from 
                        families with incomes below the poverty line;
                            ``(ii) a high percentage of teachers not 
                        teaching in the content area in which the 
                        teachers were trained to teach; or
                            ``(iii) a high teacher turnover rate.
            ``(2) Kindergarten through grade 12 school.--The term 
        `kindergarten through grade 12 school' means a school having 
        any one of the grades kindergarten through grade 12.
    ``(c) Priority.--In awarding grants under this subpart the 
Secretary shall give priority to partnerships that involve businesses.
    ``(d) Consideration.--In awarding grants under this subpart the 
Secretary shall take into consideration--
            ``(1) providing an equitable geographic distribution of the 
        grants throughout the United States; and
            ``(2) the proposed project's potential for creating 
        improvement and positive change.
    ``(e) Matching Funds.--Each partnership receiving a grant under 
this subpart shall provide, from sources other than this subpart, an 
amount equal to 25 percent of the grant in the first year, 35 percent 
in the second such year, and 50 percent in each succeeding such year, 
of the amount of the grant, in cash or in kind, to carry out the 
activities supported by the grant.
    ``(f) One-Time Award.--A partnership may receive a grant under this 
section only once.

``SEC. 222. USE OF FUNDS.

    ``(a) In General.--Grant funds under this part shall be used to--
            ``(1) coordinate with the activities of the Governor, State 
        board of education, and State educational agency, as 
        appropriate;
            ``(2) provide sustained and high quality preservice 
        clinical experiences including the mentoring of prospective 
        teachers by veteran teachers;
            ``(3) work with a school of arts and sciences to provide 
        increased academic study in a proposed teaching specialty area, 
        through activities such as--
                    ``(A) restructuring curriculum;
                    ``(B) changing core course requirements;
                    ``(C) increasing liberal arts focus;
                    ``(D) providing preparation for board 
                certification; and
                    ``(E) assessing and improving alternative 
                certification, including mentoring and induction 
                support;
            ``(4) substantially increasing interaction and 2-way 
        collaboration between--
                    ``(A) faculty at institutions of higher education; 
                and
                    ``(B) new and experienced teachers, principals, and 
                other administrators at elementary schools or secondary 
                schools;
            ``(5) prepare teachers to use technology effectively in the 
        classroom;
            ``(6) integrate reliable research-based teaching methods 
        into the curriculum;
            ``(7) broadly disseminate information on effective 
        practices used by the partnership; and
            ``(8) provide support, including preparation time, for 
        interaction between faculty at an institution of higher 
        education and classroom teachers.
    ``(b) Special Rule.--No individual member of a partnership shall 
retain more than 50 percent of the funds made available to the 
partnership under this subpart.

``SEC. 223. APPLICATIONS.

    ``Each teacher training partnership desiring a grant under this 
subpart shall submit an application to the Secretary at such time, in 
such manner, and accompanied by such information as the Secretary may 
require. Each such application shall--
            ``(1) describe the composition of the partnership and the 
        involvement of each partner in the development of the 
        application;
            ``(2) contain a needs assessment that includes an analysis 
        of the needs of all the partners with respect to teaching and 
        learning;
            ``(3) contain a resource assessment that includes--
                    ``(A) an analysis of resources available to the 
                partnership;
                    ``(B) a description of the intended use of the 
                grant funds;
                    ``(C) a description of how the partnership will 
                coordinate with other teacher training or professional 
                development programs, including Federal, State, local, 
                private, and other programs;
                    ``(D) a description of how the activities assisted 
                under this subpart are consistent with educational 
                reform activities that promote student achievement; and
                    ``(E) a description of the commitment of the 
                resources of the partnership to the activities assisted 
                under this subpart, including financial support, 
                faculty participation, and time commitments;
            ``(4) describe how the partnership will include the 
        participation of the schools, colleges, or departments of arts 
        and sciences within an institution of higher education to 
        ensure the integration of teaching techniques and content in 
        teaching preparation;
            ``(5) describe how the partnership will restructure and 
        improve teaching, teacher training, and development programs, 
        and how such systemic changes will contribute to increased 
        student achievement;
            ``(6) describe how the partnership will prepare teachers to 
        work with diverse student populations, including individuals 
        with disabilities and limited English proficient individuals;
            ``(7) describe how the partnership will prepare teachers to 
        use technology;
            ``(8) contain a dissemination plan regarding knowledge and 
        information with respect to effective teaching practices, and a 
        description of how such knowledge and information will be 
        implemented in elementary schools or secondary schools as well 
        as institutions of higher education;
            ``(9) describe the commitment of the partnership to 
        continue the activities assisted under this subpart without 
        grant funds provided under this subpart; and
            ``(10) describe how the partnership will involve and 
        include parents in the reform process.

                    ``Subpart 3--General Provisions

``SEC. 231. ACCOUNTABILITY AND EVALUATION.

    ``(a) Teacher Quality Enhancement Grants.--
            ``(1) Accountability report.--A State that receives a grant 
        under subpart 1 shall submit an annual accountability report to 
        the Secretary, the Committee on Labor and Human Resources of 
        the Senate, and the Committee on Education and the Workforce of 
        the House of Representatives. Such report shall include a 
        description of the degree to which the State, in using funds 
        provided under subpart 1, has made substantial progress in 
        meeting the following goals:
                    ``(A) Student achievement.--Increasing student 
                achievement for all students, as measured by increased 
                graduation rates, decreased dropout rates, or higher 
                scores on local, State or other assessments.
                    ``(B) Raising standards.--Raising the State 
                academic standards required to enter the teaching 
                profession, including, where appropriate, incentives to 
                incorporate the requirement of an academic major in the 
                subject, or related discipline, in which the teacher 
                plans to teach.
                    ``(C) Initial certification or licensure.--
                Increasing success in the passage rate for initial 
                State teacher certification or licensure, or increasing 
                numbers of highly qualified individuals being certified 
                or licensed as teachers through alternative programs.
                    ``(D) Core academic subjects.--(i) Increasing the 
                percentage of secondary school classes taught in core 
                academic subject areas by teachers--
                            ``(I) with academic majors in those areas 
                        or in a related field;
                            ``(II) who can demonstrate a high level of 
                        competence through rigorous academic subject 
                        area tests; or
                            ``(III) who can demonstrate high levels of 
                        competence through experience in relevant 
                        content areas.
                    ``(ii) Increasing the percentage of elementary 
                school classes taught by teachers--
                            ``(I) with academic majors in the arts and 
                        sciences; or
                            ``(II) who can demonstrate high levels of 
                        competence through experience in relevant 
                        content areas.
                    ``(E) Decreasing shortages for professional 
                development.--Decreasing shortages of qualified 
                teachers in poor urban and rural areas.
                    ``(F) Increasing opportunities.--Increasing 
                opportunities for enhanced and ongoing professional 
                development that improves the academic content 
                knowledge of teachers in the subject areas in which the 
                teachers are certified to teach or in which the 
                teachers are working toward certification to teach.
                    ``(G) Technology integration.--Increasing the 
                number of teachers prepared to integrate technology in 
                the classroom.
            ``(2) Teacher qualifications provided to parent upon 
        request.--Any local educational agency that benefits from the 
        activities assisted under subpart 1 shall make available, upon 
        request and in an understandable and uniform format, to any 
        parent of a student attending any school served by the local 
        educational agency, information regarding the qualifications of 
        the student's classroom teacher with regard to the subject 
        matter in which the teacher provides instruction. The local 
        educational agency shall inform parents that the parents are 
        entitled to receive the information upon request.
    ``(b) Teacher Training Partnership Evaluation Plan.--Each teacher 
training partnership receiving a grant under subpart 2 shall establish 
an evaluation plan that includes strong performance objectives 
established in negotiation with the Secretary at the time of the grant 
award. The plan shall include objectives and measures for--
            ``(1) increased student achievement for all students as 
        measured by increased graduation rates, decreased dropout 
        rates, or higher scores on local, State, or other assessments 
        for a year compared to student achievement as determined by the 
        rates or scores, as the case may be, for the year prior to the 
        year for which a grant under this part is received;
            ``(2) increased teacher retention in the first 3 years of a 
        teacher's career;
            ``(3) increased success in the passage rate for initial 
        State certification or licensure of teachers;
            ``(4) increased percentages of secondary school classes 
        taught in core academic subject areas by teachers--
                    ``(A) with academic majors in those areas or in a 
                related field;
                    ``(B) who can demonstrate a high level of 
                competence through rigorous academic subject area 
                tests; and
                    ``(C) increasing the percentage of elementary 
                school classes taught by teachers with academic majors 
                in the arts and sciences;
            ``(5) increased integration of technology in teacher 
        preparation and in classroom instruction;
            ``(6) restructuring or change of methodology courses to 
        reflect best practices learned from elementary schools, 
        secondary schools or other entities;
            ``(7) increased dissemination of information about 
        effective teaching strategies and practices; and
            ``(8) other effects of increased integration among members 
        of the partnership.

``SEC. 232. REVOCATION OF GRANT.

    ``Each State or teacher training partnership receiving a grant 
under this part shall report annually on progress toward meeting the 
purposes of this part, and the goals, objectives and measures described 
in section 231. If the Secretary, after consultation with the peer 
review panel described in section 213(b) determines that the State or 
partnership is not making substantial progress in meeting the purposes, 
goals, objectives and measures, as appropriate, by the end of the 
second year of the grant, the grant shall not be continued for the 
third year of the grant.

``SEC. 233. EVALUATION AND DISSEMINATION.

    ``The Secretary shall evaluate the activities funded under this 
part and report the Secretary's findings to the Committee on Labor and 
Human Resources of the Senate and the Committee on Education and the 
Workforce of the House of Representatives. The Secretary shall broadly 
disseminate successful practices developed by the States and teacher 
training partnerships under this part, and shall broadly disseminate 
information regarding such practices so developed that were found to be 
ineffective.

``SEC. 234. INTERNATIONAL STUDY AND REPORT.

    ``(a) Study.--The Secretary shall conduct a study through the 
National Center for Education Statistics regarding the ways teachers 
are trained and the extent to which teachers in the United States and 
other comparable countries are teaching in areas other than the 
teachers' field of study or expertise. The study will examine specific 
fields and will outline the nature and extent of the problem of out-of-
field teaching in the United States and in other countries that are 
considered comparable to the United States. The study shall include, at 
a minimum, all the countries that participated in the Third 
International Mathematics and Science Study (TIMSS).
    ``(b) Report.--The Secretary shall report to Congress regarding the 
results of the study described in subsection (a).

``SEC. 235. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$300,000,000 for fiscal year 1999 and such sums as necessary for each 
of the 4 succeeding fiscal years, of which--
            ``(1) 50 percent shall be available for each fiscal year to 
        carry out subpart 1; and
            ``(2) 50 percent shall be available for each fiscal year to 
        carry out subpart 2.

        ``PART B--RECRUITING NEW TEACHERS FOR UNDERSERVED AREAS

``SEC. 251. STATEMENT OF PURPOSE.

    ``It is the purpose of this part to--
            ``(1) provide scholarships and, as necessary, support 
        services for students with high potential to become effective 
        teachers, particularly minority students;
            ``(2) increase the quality and number of new teachers 
        nationally; and
            ``(3) increase the ability of schools in underserved areas 
        to recruit a qualified teaching staff.

``SEC. 252. DEFINITIONS.

    ``In this part--
            ``(1) Eligible partnership.--
                    ``(A) In general.--The term `eligible partnership' 
                means a partnership consisting of--
                            ``(i) an institution of higher education 
                        that awards baccalaureate degrees and prepares 
                        teachers for their initial entry into the 
                        teaching profession; and
                            ``(ii) one or more local educational 
                        agencies that serve underserved areas.
                    ``(B) Additional partners.--Such a partnership may 
                also include--
                            ``(i) 2-year institutions of higher 
                        education that operate teacher preparation 
                        programs and maintain articulation agreements, 
                        with the institutions of higher education that 
                        award baccalaureate degrees for the transfer of 
                        credits in teacher preparation;
                            ``(ii) State agencies that have 
                        responsibility for policies related to teacher 
                        preparation and teacher certification or 
                        licensure; and
                            ``(iii) other public and private, nonprofit 
                        agencies and organizations that serve, or are 
                        located in, communities served by the local 
                        educational agencies in the partnership, and 
                        that have an interest in teacher recruitment, 
                        preparation, and induction.
            ``(2) Support services.--The term `support services' 
        means--
                    ``(A) academic advice and counseling;
                    ``(B) tutorial services;
                    ``(C) mentoring; and
                    ``(D) child care and transportation, if funding for 
                those services cannot be arranged from other sources.
            ``(3) Underserved area.--The term `underserved area' 
        means--
                    ``(A) the area served by the 3 local educational 
                agencies in the State that have the highest numbers of 
                children, ages 5 through 17, from families below the 
                poverty level (based on data satisfactory to the 
                Secretary); and
                    ``(B) the area served by any other local 
                educational agency in which the percentage of such 
                children is at least 20 percent, or the number of such 
                children is at least 10,000.

``SEC. 253. GRANT AUTHORITY AND CONDITIONS.

    ``(a) Grants Authorized.--
            ``(1) Grants.--
                    ``(A) In general.--From amounts appropriated under 
                section 262 the Secretary shall award grants, on a 
                competitive basis, to eligible partnerships to enable 
                the eligible partnerships to pay the Federal share of 
                the cost of carrying out the activities described in 
                section 255.
                    ``(B) Duration.--Each grant awarded under 
                subparagraph (A) shall be awarded for a period not to 
                exceed 5 years.
            ``(2) Continuing eligibility; review of progress.--The 
        Secretary shall--
                    ``(A) continue to make grant payments for the 
                second and succeeding years of a grant awarded under 
                this part, only after determining that the eligible 
                partnership is making satisfactory progress in carrying 
                out the activities under the grant; and
                    ``(B) conduct an intensive review of the eligible 
                partnerships's progress under the grant, with the 
                assistance of outside experts, before making grant 
                payments for the fourth year of the grant.
            ``(3) Maximum number.--No eligible partnership may receive 
        more than 2 grants under this subsection.
    ``(b) Matching Requirement.--
            ``(1) Federal share.--The Federal share of the cost of 
        activities carried out under a grant made under subsection (a) 
        shall not exceed--
                    ``(A) 70 percent of the cost in the first year of 
                the grant;
                    ``(B) 60 percent in the second year;
                    ``(C) 60 percent in the third year;
                    ``(D) 50 percent in the fourth year; and
                    ``(E) 50 percent in the fifth year and any 
                succeeding year (including each year of the second 
                grant, if any).
            ``(2) Non-federal share.--The non-Federal share of 
        activities carried out with a grant under subsection (a) may be 
        provided in cash or in kind, fairly evaluated, and may be 
        obtained from any non-Federal public or private source.
    ``(c) Planning Grants.--
            ``(1) In general.--The Secretary may award planning grants 
        to eligible partnerships that are not ready to implement 
        programs under subsection (a).
            ``(2) Duration.--Each planning grant shall be for a period 
        of not more than 1 year, which shall be in addition to the 
        period of any grant under subsection (a).
            ``(3) Requirement.--Any recipient of a planning grant under 
        this subsection that wishes to receive a grant under subsection 
        (a)(1) shall separately apply for a grant under that 
        subsection.

``SEC. 254. GRANT APPLICATIONS.

    ``(a) Applications Required.--Any eligible partnership desiring to 
receive a grant under this part shall submit an application to the 
Secretary at such time, in such form, and containing such information 
as the Secretary may require.
    ``(b) Application Contents.--Each application for a grant under 
section 253(a) shall include--
            ``(1) a designation of the institution or agency, within 
        the eligible partnership, that will serve as the fiscal agent 
        for the grant;
            ``(2) information on the quality of the teacher preparation 
        program of the institution of higher education participating in 
        the eligible partnership and how the eligible partnership will 
        ensure, through improvements in the eligible partnership's 
        teacher preparation practices or other appropriate strategies, 
        that scholarship recipients will receive high-quality 
        preparation;
            ``(3) a description of the assessment the members of the 
        eligible partnership have undertaken--
                    ``(A) to determine--
                            ``(i) the most critical needs of the local 
                        educational agencies, particularly the needs of 
                        schools in high-poverty areas, for new teachers 
                        (which may include teachers in particular 
                        subject areas or at certain grade levels); and
                            ``(ii) how the project carried out under 
                        the grant will address those needs; and
                    ``(B) that reflects the input of all significant 
                entities in the community (including organizations 
                representing teachers and parents) that have an 
                interest in teacher recruitment, preparation, and 
                induction;
            ``(4) a description of the project the eligible partnership 
        will carry out with the grant, including information 
        regarding--
                    ``(A) the recruitment and outreach efforts the 
                eligible partnership will undertake to publicize the 
                availability of scholarships and other assistance under 
                the program;
                    ``(B)(i) the number and types of students that the 
                eligible partnership will serve under the program, 
                which may include education paraprofessionals seeking 
                to achieve full teacher certification or licensure; 
                teachers whom the partner local educational agencies 
                have hired under emergency certification or licensure 
                procedures; or former military personnel, mid-career 
                professionals, or AmeriCorps or Peace Corps volunteers, 
                who desire to enter teaching; and
                    ``(ii) the criteria that the eligible partnership 
                will use in selecting the students, including criteria 
                to determine whether individuals have the capacity to 
                benefit from the program, complete teacher 
                certification requirements, and become effective 
                teachers;
                    ``(C) the activities the eligible partnership will 
                carry out under the grant, including a description of, 
                and justification for, any support services the 
                institution of higher education participating in the 
                eligible partnership will offer to participating 
                students;
                    ``(D) the number and funding range of the 
                scholarships the institution will provide to students; 
                and
                    ``(E) the procedures the institution will establish 
                for entering into, and enforcing, agreements with 
                scholarship recipients regarding the recipients' 
                fulfillment of the service commitment described in 
                section 259;
            ``(5) a description of how the institution will use funds 
        provided under the grant only--
                    ``(A) to increase the number of students--
                            ``(i) with high potential to be effective 
                        teachers;
                            ``(ii) participating in the institution's 
                        teacher preparation programs; or
                            ``(iii) in the particular type or types of 
                        preparation programs that the grant will 
                        support; or
                    ``(B) to increase the number of graduates, who are 
                minority individuals, with high potential to be 
                effective teachers;
            ``(6) a description of the commitments, by the local 
        educational agencies participating in the partnership, to hire 
        qualified scholarship recipients in the schools served by the 
        agencies and in the subject areas or grade levels for which the 
        scholarship recipients will be trained, and a description of 
        the actions the participating institution of higher education, 
        the participating local educational agencies, and the other 
        partners will take to facilitate the successful transition of 
        the recipients into teaching; and
            ``(7) a description of the eligible partnership's plan for 
        institutionalizing the activities the partnership is carrying 
        out under this part, so that the activities will continue once 
        Federal funding ceases.

``SEC. 255. USES OF FUNDS.

    ``(a) In General.--Each eligible partnership receiving a grant 
under section 523(a) shall use the grant funds for the following:
            ``(1) Scholarships.--Scholarships to help students pay the 
        costs of tuition, room, board, and other expenses of completing 
        a teacher preparation program.
            ``(2) Support services.--Support services, if needed to 
        enable scholarship recipients to complete postsecondary 
        education programs.
            ``(3) Followup services.--Followup services provided to 
        former scholarship recipients during the recipients' first 3 
        years of teaching.
            ``(4) Payments.--Payments to partner local educational 
        agencies, if needed to enable the agencies to permit 
        paraprofessional staff to participate in teacher preparation 
        programs (such as the cost of release time for the staff).
            ``(5) Additional courses.--If appropriate, and if no other 
        funds are available for, paying the costs of additional courses 
        taken by former scholarship recipients during the recipients' 
        initial 3 years of teaching.
    ``(b) Planning Grants.--A recipient of a planning grant under 
section 253(c) shall use the grant funds for the costs of planning for 
the implementation of a grant under section 253(a).

``SEC. 256. SELECTION OF APPLICANTS.

    ``(a) Peer Review.--The Secretary, using a peer review process, 
shall select eligible partnerships to receive funding under this part 
on the basis of--
            ``(1) the quality of the teacher preparation program 
        offered by the institution participating in the partnership;
            ``(2) the quality of the program carried out under the 
        application; and
            ``(3) the capacity of the partnership to carry out the 
        grant successfully.
    ``(b) Criteria.--
            ``(1) In general.--In awarding grants under section 253(a), 
        the Secretary shall seek to ensure that--
                    ``(A) in the aggregate, eligible partnerships carry 
                out a variety of approaches to preparing new teachers; 
                and
                    ``(B) there is an equitable geographic distribution 
                of the grants.
            ``(2) Special consideration.--In addition to complying with 
        paragraph (1), the Secretary shall give special consideration 
        to--
                    ``(A) applications most likely to result in the 
                preparation of increased numbers of individuals with 
                high potential for effective teaching who are minority 
                individuals; and
                    ``(B) applications from partnerships that have as 
                members of the partnerships historically Black colleges 
                and universities, Hispanic-serving institutions, and 
                Tribal Colleges and Universities.
    ``(c) Second Five-Year Grants.--In selecting eligible partnerships 
to receive second year grant payments under this part, the Secretary 
shall give a preference to eligible partnerships whose projects have 
resulted in--
            ``(1) the placement and retention of a substantial number 
        of high-quality graduates in teaching positions in underserved, 
        high-poverty schools;
            ``(2) the adoption of effective programs that meet the 
        teacher preparation needs of high-poverty urban and rural 
        areas; and
            ``(3) effective partnerships with elementary schools and 
        secondary schools that are supporting improvements in student 
        achievement.

``SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELATION TO OTHER 
              ASSISTANCE.

    ``(a) Duration of Assistance.--No individual may receive 
scholarship assistance under this part--
            ``(1) for more than 5 years of postsecondary education; and
            ``(2) unless that individual satisfies the requirements of 
        section 484(a)(5).
    ``(b) Amount of Assistance.--No individual may receive a 
scholarship awarded under this part that exceeds the cost of 
attendance, as defined in section 472, at the institution of higher 
education the individual is attending.
    ``(c) Relation to Other Assistance.--A scholarship awarded under 
this part--
            ``(1) shall not be reduced on the basis of the individual's 
        receipt of other forms of Federal student financial assistance; 
        and
            ``(2) shall be regarded as other financial assistance 
        available to the student, within the meaning of sections 471(3) 
        and 480(j)(1), in determining the student's eligibility for 
        grant, loan, or work assistance under title IV.

``SEC. 258. SCHOLARSHIP CONDITIONS.

    ``(a) In General.--A recipient of a scholarship under this part 
shall continue to receive the scholarship assistance only as long as 
the recipient is--
            ``(1) enrolled as a full-time student and pursuing a course 
        of study leading to teacher certification, unless the recipient 
        is working in a public school (as a paraprofessional, or as a 
        teacher under emergency credentials) while participating in the 
        program; and
            ``(2) maintaining satisfactory progress as determined by 
        the institution of higher education participating in the 
        partnership.
    ``(b) Special Rule. Each eligible partnership shall modify the 
application of section 257(a)(1) and of subsection (a)(1) to the extent 
necessary to accommodate the rights of individuals with disabilities 
under section 504 of the Rehabilitation Act of 1973.

``SEC. 259. SERVICE REQUIREMENTS.

    ``(a) Requirement.--Each eligible partnership receiving a grant 
under this part shall enter into an agreement, with each student to 
whom the partnership awards a scholarship under this part, providing 
that a scholarship recipient who completes a teacher preparation 
program under this part shall, within 7 years of completing that 
program, teach full-time for at least 5 years in a high-poverty school 
in an underserved geographic area or repay the amount of the 
scholarship, under the terms and conditions established by the 
Secretary.
    ``(b) Regulations. The Secretary shall prescribe regulations 
relating to the requirements of subsection (a), including any 
provisions for waiver of those requirements.

``SEC. 260. EVALUATION.

    ``The Secretary shall provide for an evaluation of the program 
carried out under this part, which shall asses such issues as--
            ``(1) whether institutions participating in the eligible 
        partnerships are successful in preparing scholarship recipients 
        to teach to high State and local standards;
            ``(2) whether scholarship recipients are successful in 
        completing teacher preparation programs, becoming fully 
        certified teachers, and obtaining teaching positions in 
        underserved areas, and whether the recipients continue teaching 
        in those areas over a period of years;
            ``(3) the national impact of the program in assisting local 
        educational agencies in underserved areas to recruit, prepare, 
        and retain diverse, high-quality teachers in the areas in which 
        the agencies have the greatest needs;
            ``(4) the long-term impact of the grants on teacher 
        preparation programs conducted by institutions of higher 
        education participating in the eligible partnership and on the 
        institutions' relationships with their partner local 
        educational agencies and other members of the partnership; and
            ``(5) the relative effectiveness of different approaches 
        for preparing new teachers to teach in underserved areas, 
        including their effectiveness in preparing new teachers to 
        teach to high content and performance standards.

``SEC. 261. NATIONAL ACTIVITIES.

    ``The Secretary may reserve not more than 5 percent of the funds 
appropriated for this part for any fiscal year for--
            ``(1) peer review of applications;
            ``(2) conducting the evaluation required under section 260; 
        and
            ``(3) technical assistance.

``SEC. 262. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$37,000,000 for fiscal year 1999 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. TRANSFERS AND REDESIGNATIONS.

    (a) In General.--Title III (20 U.S.C. 1051 et seq.) is amended--
            (1) by redesignating part D as part F;
            (2) by redesignating sections 351, 352, 353, 354, 356, 357, 
        358, and 360 (20 U.S.C. 1066, 1067, 1068, 1069, 1069b, 1069c, 
        1069d, and 1069f) as sections 391, 392, 393, 394, 395, 396, 
        397, and 398, respectively;
            (3) by transferring part B of title VII (20 U.S.C. 1132c et 
        seq.) to title III to follow part C of title III (20 U.S.C. 
        1065 et seq.), and redesignating such part B as part D;
            (4) by redesignating sections 721 through 728 (20 U.S.C. 
        1132c and 1132c-7) as sections 341 through 348, respectively;
            (5) by transferring subparts 1 and 3 of part B of title X 
        (20 U.S.C. 1135b et seq. and 1135d et seq.) to title III to 
        follow part D of title III (as redesignated by paragraph (3)), 
        and redesignating such subpart 3 as subpart 2;
            (6) by inserting after part D of title III (as redesignated 
        by paragraph (3)) the following:

           ``PART E--MINORITY SCIENCE IMPROVEMENT PROGRAM'';

            (7) by redesignating sections 1021 through 1024 (20 U.S.C. 
        1135b and 1135b-3), and sections 1041, 1042, 1043, 1044, 1046, 
        and 1047 (20 U.S.C. 1135d, 1135d-1, 1135d-2, 1135d-3, 1135d-5, 
        and 1135d-6) as sections 351 through 354, and sections 361, 
        362, 363, 364, 365, and 366, respectively; and
            (8) by repealing section 366 (as redesignated by paragraph 
        (7)) (20 U.S.C. 1135d-6).
    (b) Conforming Amendment.--Section 361 (as redesignated by 
subsection (a)(7)) (20 U.S.C. 1135d) is amended--
            (1) in paragraph (1), by inserting ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking ``; and'' and inserting a 
        period; and
            (3) by striking paragraph (3).
    (c) Cross References.--Title III (20 U.S.C. 1051 et seq.) is 
amended--
            (1) in section 311(b) (20 U.S.C. 1057(b)), by striking 
        ``360(a)(1)'' and inserting ``398(a)(1)'';
            (2) in section 312 (20 U.S.C. 1058)--
                    (A) in subsection (b)(1)(B), by striking ``352(b)'' 
                and inserting ``392(b)''; and
                    (B) in subsection (c)(2), by striking ``352(a)'' 
                and inserting ``392(a)'';
            (3) in section 313(b) (20 U.S.C. 1059(b)), by striking 
        ``354(a)(1)'' and inserting ``394(a)(1)'';
            (4) in section 342 (as redesignated by subsection (a)(4)) 
        (20 U.S.C. 1132c-1)--
                    (A) in paragraph (3), by striking ``723(b)'' and 
                inserting ``343(b)'';
                    (B) in paragraph (4), by striking ``723'' and 
                inserting ``343'';
                    (C) in the matter preceding subparagraph (A) of 
                paragraph (5), by striking ``724(b)'' and inserting 
                ``344(b)'';
                    (D) in paragraph (8), by striking ``725(1)'' and 
                inserting ``345(1)''; and
                    (E) in paragraph (9), by striking ``727'' and 
                inserting ``347'';
            (5) in section 343 (as redesignated by subsection (a)(4)) 
        (20 U.S.C. 1132c-2)--
                    (A) in subsection (a), by striking ``724'' and 
                inserting ``344''; and
                    (B) in subsection (b)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``725(1) and 726'' and inserting 
                        ``345(1) and 346'';
                            (ii) in paragraph (10), by striking ``724'' 
                        and inserting ``344''; and
                            (iii) in subsection (d), by striking 
                        ``723(c)(1)'' and inserting ``343(c)(1)'';
            (6) in section 345(2) (as redesignated by subsection 
        (a)(4)) (20 U.S.C. 1132c-4(2)), by striking ``723'' and 
        inserting ``343'';
            (7) in section 348 (as redesignated by subsection (a)(4)) 
        (20 U.S.C. 1132c-7), by striking ``725(1)'' and inserting 
        ``345(1)'';
            (8) in section 353(a) (as redesignated by subsection 
        (a)(7)) (20 U.S.C. 1135b-2(a))--
                    (A) in paragraph (1), by striking ``1046(6)'' and 
                inserting ``365(6)'';
                    (B) in paragraph (2), by striking ``1046(7)'' and 
                inserting ``365(7)'';
                    (C) in paragraph (3), by striking ``1046(8)'' and 
                inserting ``365(8)''; and
                    (D) in paragraph (4), by striking ``1046(9)'' and 
                inserting ``365(9)'';
            (9) in section 361(1) (as redesignated by subsection 
        (a)(7)) (20 U.S.C. 1135d(1)), by striking ``1046(3)'' and 
        inserting ``365(3)'';
            (10) in section 362(a) (as redesignated by subsection 
        (a)(7)) (20 U.S.C. 1135d-1(a))--
                    (A) in the matter preceding paragraph (1), by 
                striking ``1041'' and inserting ``361''; and
                    (B) in paragraph (1), by striking ``1021(b)'' and 
                inserting ``351(b)''; and
            (11) in section 391(b)(6) (as redesignated by subsection 
        (a)(2)), by striking ``357'' and inserting ``396''.

SEC. 302. FINDINGS.

    Section 301(a) (20 U.S.C. 1051(a)) is amended--
            (1) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) in order to be competitive and provide a high-quality 
        education for all, institutions of higher education should 
        improve their technological capacity and make effective use of 
        technology;''.

SEC. 303. STRENGTHENING INSTITUTIONS.

    (a) Grants.--Section 311 (20 U.S.C. 1057) is amended--
            (1) in subsection (b)(3)(D), by inserting ``, including 
        high technology equipment,'' after ``equipment''; and
            (2) by adding at the end the following:
    ``(c) Endowment Fund.--
            ``(1) In general.--An eligible institution may use not more 
        than 20 percent of the grant funds provided under this part to 
        establish or increase an endowment fund at such institution.
            ``(2) Matching requirement.--In order to be eligible to use 
        grant funds in accordance with paragraph (1), the eligible 
        institution shall provide matching funds, in an amount equal to 
        the Federal funds used in accordance with paragraph (1), for 
        the establishment or increase of the endowment fund.
            ``(3) Comparability.--The provisions of part C, regarding 
        the establishment or increase of an endowment fund, that the 
        Secretary determines are not inconsistent with this subsection, 
        shall apply to funds used under paragraph (1).''.
    (b) Duration of Grant.--Section 313 (20 U.S.C. 1059) is amended by 
adding at the end the following:
    ``(d) Wait-Out-Period.--Each eligible institution that received a 
grant under this part for a 5-year period shall not be eligible to 
receive an additional grant under this part until 2 years after the 
date on which the 5-year grant period terminates.
    (c) American Indian Tribally Controlled Colleges and 
Universities.--Section 316 (20 U.S.C. 1059c) is amended to read as 
follows:

``SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
              UNIVERSITIES.

    ``(a) Program Authorized.--The Secretary shall provide grants and 
related assistance to American Indian Tribal Colleges and Universities 
to enable such institutions to improve and expand their capacity to 
serve Indian students.
    ``(b) Definitions.--In this section:
            ``(1) Indian.--The term `Indian' has the meaning given the 
        term in section 2 of the Tribally Controlled College or 
        University Assistance Act of 1978.
            ``(2) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 2 of the Tribally Controlled 
        College or University Assistance Act of 1978.
            ``(3) Tribal college or university.--The term `Tribal 
        College or University' has the meaning give the term `tribally 
        controlled college or university' in section 2 of the Tribally 
        Controlled College or University Assistance Act of 1978, and 
        includes an institution listed in the Equity in Educational 
        Land Grant Status Act of 1994.
            ``(4) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education as defined in section 1201(a), except that 
        paragraph (2) of such section shall not apply.
    ``(c) Authorized Activities.--
            ``(1) In general.--Grants awarded under this section shall 
        be used by Tribal Colleges or Universities to assist such 
        institutions to plan, develop, undertake, and carry out 
        activities to improve and expand such institutions' capacity to 
        serve Indian students.
            ``(2) Examples of authorized activities.--The activities 
        described in paragraph (1) may include--
                    ``(A) purchase, rental, or lease of scientific or 
                laboratory equipment for educational purposes, 
                including instructional and research purposes;
                    ``(B) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services;
                    ``(C) support of faculty exchanges, faculty 
                development, and faculty fellowships to assist in 
                attaining advanced degrees in the faculty's field of 
                instruction;
                    ``(D) academic instruction in disciplines in which 
                American Indians are underrepresented;
                    ``(E) purchase of library books, periodicals, and 
                other educational materials, including 
                telecommunications program material;
                    ``(F) tutoring, counseling, and student service 
                programs designed to improve academic success;
                    ``(G) funds management, administrative management, 
                and acquisition of equipment for use in strengthening 
                funds management;
                    ``(H) joint use of facilities, such as laboratories 
                and libraries;
                    ``(I) establishing or improving a development 
                office to strengthen or improve contributions from 
                alumni and the private sector;
                    ``(J) establishing or enhancing a program of 
                teacher education designed to qualify students to teach 
                in elementary schools or secondary schools, with a 
                particular emphasis on teaching American Indian 
                children and youth, that shall include, as part of such 
                program, preparation for teacher certification;
                    ``(K) establishing community outreach programs that 
                encourage American Indian elementary school and 
                secondary school students to develop the academic 
                skills and the interest to pursue postsecondary 
                education;
                    ``(L) other activities proposed in the application 
                submitted pursuant to subsection (d) that--
                            ``(i) contribute to carrying out the 
                        activities described in subparagraphs (A) 
                        through (K); and
                            ``(ii) are approved by the Secretary as 
                        part of the review and acceptance of such 
                        application.
            ``(3) Endowment fund.--
                    ``(A) In general.--A Tribal College or University 
                may use not more than 20 percent of the grant funds 
                provided under this section to establish or increase an 
                endowment fund at the institution.
                    ``(B) Matching requirement.--In order to be 
                eligible to use grant funds in accordance with 
                subparagraph (A), the Tribal College or University 
                shall provide matching funds, in an amount equal to the 
                Federal funds used in accordance with subparagraph (A), 
                for the establishment or increase of the endowment 
                fund.
                    ``(C) Comparability.--The provisions of part C 
                regarding the establishment or increase of an endowment 
                fund, that the Secretary determines are not 
                inconsistent with this paragraph, shall apply to funds 
                used under subparagraph (A).
    ``(d) Application Process.--
            ``(1) Institutional eligibility.--To be eligible to receive 
        assistance under this section, a Tribal College or University 
        shall be an institution that--
                    ``(A) is an eligible institution under section 
                312(b);
                    ``(B) is eligible to receive assistance under the 
                Tribally Controlled College or University Assistance 
                Act of 1978; or
                    ``(C) is eligible to receive funds under the Equity 
                in Educational Land Grant Status Act of 1994.
            ``(2) Application.--Any Tribal College or University 
        desiring to receive assistance under this section shall submit 
        an application to the Secretary at such time, and in such 
        manner, as the Secretary may by regulation reasonably require. 
        Each such application shall include--
                    ``(A) a 5-year plan for improving the assistance 
                provided by the Tribal College or University to Indian 
                students, increasing the rates at which Indian 
                secondary school students enroll in higher education, 
                and increasing overall postsecondary retention rates 
                for Indian students; and
                    ``(B) such enrollment data and other information 
                and assurances as the Secretary may require to 
                demonstrate compliance with subparagraph (A) or (B) of 
                paragraph (1).
            ``(3) Special rule.--For the purposes of this part, no 
        Tribal College or University that is eligible for and receives 
        funds under this section may concurrently receive other funds 
        under this part or part B.''.

SEC. 304. STRENGTHENING HBCU'S.

    (a) Grants.--Section 323 (20 U.S.C. 1062) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Endowment Fund.--
            ``(1) In general.--An institution may use not more than 20 
        percent of the grant funds provided under this part to 
        establish or increase an endowment fund at the institution.
            ``(2) Matching requirement.--In order to be eligible to use 
        grant funds in accordance with paragraph (1), the eligible 
        institution shall provide matching funds, in an amount equal to 
        the Federal funds used in accordance with paragraph (1), for 
        the establishment or increase of the endowment fund.
            ``(3) Comparability.--The provisions of part C regarding 
        the establishment or increase of an endowment fund, that the 
        Secretary determines are not inconsistent with this subsection, 
        shall apply to funds used under paragraph (1).''.
    (b) Professional or Graduate Institutions.--Section 326 (20 U.S.C. 
1063b) is amended--
            (1) in subsection (a), by adding at the end of paragraph 
        (2) the following: ``If a grant of less than $500,000 is made 
        under this section, matching funds provided from non-Federal 
        sources are not required. If a grant equal to or in excess of 
        $500,000 is made under this section, match funds provided from 
        non-Federal sources are required only with respect to the 
        amount of the grant that exceeds $500,000.''; and
            (2) in subsection (e)(1)--
                    (A) in subparagraph (E), by inserting ``, and any 
                Tuskegee University qualified graduate program'' before 
                the semicolon;
                    (B) in subparagraph (F), by inserting ``, and any 
                Xavier University qualified graduate program'' before 
                the semicolon;
                    (C) in subparagraph (G), by inserting ``, and any 
                Southern University qualified graduate program'' before 
                the semicolon;
                    (D) in subparagraph (H), by inserting ``, and any 
                Texas Southern University qualified graduate program'' 
                before the semicolon;
                    (E) in subparagraph (I), by inserting ``, and any 
                Florida A&M University qualified graduate program'' 
                before the semicolon; and
                    (F) in subparagraph (J), by inserting ``, and any 
                North Carolina Central University qualified graduate 
                program'' before the semicolon.

SEC. 305. ENDOWMENT CHALLENGE GRANTS.

    Paragraph (2) of section 331(b) (20 U.S.C. 1065(b)) is amended by 
striking subparagraphs (B) and (C) and inserting the following:
    ``(B) The Secretary may make a grant under this part to an eligible 
institution in any fiscal year if the institution--
            ``(i) applies for a grant in an amount not exceeding 
        $500,000; and
            ``(ii) has deposited in the eligible institution's 
        endowment fund established under this section an amount which 
        is equal to \1/2\ of the amount of such grant.
    ``(C) An eligible institution of higher education that is awarded a 
grant under subparagraph (B) shall not be eligible to receive an 
additional grant under subparagraph (B) until 10 years after the date 
on which the grant period terminates.''.

SEC. 306. HBCU CAPITAL FINANCING.

    (a) Definition.--Section 342(5) (as redesignated by section 
301(a)(4)) (20 U.S.C. 1132c-1(5)) is amended--
            (1) by redesignating subparagraphs (B), (C), and (D) as 
        subparagraphs (C), (F), and (G);
            (2) by inserting after subparagraph (A) the following:
                    ``(B) a facility for the administration of an 
                educational program, or a student center or student 
                union, except that not more than 5 percent of the loan 
                proceeds provided under this part may be used for the 
                facility, center or union if the facility, center or 
                union is owned, leased, managed, or operated by a 
                private business, that, in return for such use, makes a 
                payment to the eligible institution;'';
            (3) by inserting after subparagraph (C) (as redesignated by 
        paragraph (1)) the following:
                    ``(D) a maintenance, storage, or utility facility 
                that is essential to the operation of a facility, a 
                library, a dormitory, equipment, instrumentation, a 
                fixture, real property or an interest therein, 
                described in this paragraph;
                    ``(E) a facility designed to provide primarily 
                outpatient health care for students or faculty;''; and
            (4) in subparagraph (G) (as redesignated by paragraph (2)), 
        by striking ``(C)'' and inserting ``(F)''.
    (b) Full Faith and Credit.--Section 343 (as redesignated by section 
301(a)(4)) (20 U.S.C. 1132c-2) is amended by adding at the end the 
following:
    ``(e) Notwithstanding any other provision of law, the Secretary may 
sell a qualified bond guaranteed under this part to any party that 
offers terms that the Secretary determines are in the best interest of 
the eligible institution.''.

SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM.

    Section 365(4) (as redesignated by section 301(a)(7)) (20 U.S.C. 
1135d-5(4)) is amended by inserting ``behavioral,'' after 
``physical,''.

SEC. 308. GENERAL PROVISIONS.

    (a) Applications.--Paragraph (1) of section 391(b) (as redesignated 
by section 301(a)(2)) (20 U.S.C. 1066(b)) is amended by inserting ``, D 
or E'' after ``part C''.
    (b) Application Review Process.--Section 393 (as redesignated by 
section 301(a)(2)) (20 U.S.C. 1068) is amended by adding at the end the 
following:
    ``(d) Exclusion.--The provisions of this section shall not apply to 
applications submitted under part D.''.
    (c) Waivers.--Paragraph (2) of section 395(b) (as redesignated by 
section 301(a)(2)) (20 U.S.C. 1069b(b)) is amended by striking ``title 
IV, VII, or VIII'' and inserting ``part D or title IV''.
    (d) Authorization of Appropriations.--Section 398(a) (as 
redesignated by section 301(a)(2)) (20 U.S.C. 1069f) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``1993'' and 
                inserting ``1999''; and
                    (B) in subparagraph (B)--
                            (i) in clause (i), by striking 
                        ``$45,000,000 for fiscal year 1993'' and 
                        inserting ``$5,000,000 for fiscal year 1999'';
                            (ii) by striking clause (ii); and
                            (iii) by striking ``(B)(i) There'' and 
                        inserting ``(B) There'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``1993'' and 
                inserting ``1999''; and
                    (B) in subparagraph (B), by striking ``$20,000,000 
                for fiscal year 1993'' and inserting ``$30,000,000 for 
                fiscal year 1999'';
            (3) in paragraph (3), by striking ``$50,000,000 for fiscal 
        year 1993'' and inserting ``$10,000,000 for fiscal year 1999''; 
        and
            (4) by adding at the end the following:
            ``(4) Part d.--There are authorized to be appropriated to 
        carry out part D, $110,000 for fiscal year 1999, and such sums 
        as may be necessary for each of the 4 succeeding fiscal years.
            ``(5) Part e.--There are authorized to be appropriated to 
        carry out part E, $10,000,000 for fiscal year 1999, and such 
        sums as may be necessary for each of the 4 succeeding fiscal 
        years.''.

                      TITLE IV--STUDENT ASSISTANCE

  PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER 
                               EDUCATION

SEC. 411. REPEALS AND REDESIGNATIONS.

    Title IV (20 U.S.C. 1070 et seq.) is amended--
            (1) in part A (20 U.S.C. 1070 et seq.)--
                    (A) in subpart 2 (20 U.S.C. 1070a-11), by repealing 
                chapters 3 through 8 (20 U.S.C. 1070a-31 et seq. and 
                1070a-81 et seq.); and
                    (B) by repealing subpart 8 (20 U.S.C. 1070f); and
            (2) in part H (20 U.S.C. 1099a et seq.)--
                    (A) by repealing subpart 1 (20 U.S.C. 1099a et 
                seq.); and
                    (B) by redesignating subparts 2 and 3 (20 U.S.C. 
                1099b et seq. and 1099c et seq.) as subparts 1 and 2, 
                respectively.

SEC. 412. FEDERAL PELL GRANTS.

    (a) Amendment to Subpart Heading.--The heading for subpart 1 of 
part A of title IV (20 U.S.C. 1070a et seq.) is amended by striking 
``Basic Educational Opportunity Grants'' and inserting ``Federal Pell 
Grants''.
    (b) Federal Pell Grants.--Section 401 (20 U.S.C. 1070a) is 
amended--
            (1) in the section heading, by striking ``basic educational 
        opportunity grants'' and inserting ``federal pell grants'';
            (2) in subsection (a)(1)--
                    (A) in the first sentence, by striking ``shall, 
                during the period beginning July 1, 1972, and ending 
                September 30, 1998,'' and inserting ``, for each fiscal 
                year through fiscal year 2004, shall''; and
                    (B) in the second sentence, by inserting ``until 
                such time as the Secretary determines and publishes in 
                the Federal Register with an opportunity for comment, 
                an alternative payment system that provides payments to 
                institutions in an accurate and timely manner,'' after 
                ``pay eligible students'';
            (3) in subsection (b)--
                    (A) in paragraph (2)(A), by striking clauses (i) 
                through (v), and inserting the following:
                            ``(i) $5,000 for academic year 1999-2000;
                            ``(ii) $5,200 for academic year 2000-2001;
                            ``(iii) $5,400 for academic year 2001-2002;
                            ``(iv) $5,600 for academic year 2002-2003; 
                        and
                            ``(v) $5,800 for academic year 2003-
                        2004.'';
                    (B) by amending paragraph (3) to read as follows:
            ``(3) For any academic year for which an appropriation Act 
        provides a maximum basic grant in an amount in excess of 
        $2,400, the amount of a student's basic grant shall equal 
        $2,400 plus--
                    ``(A) one-half of the amount by which such maximum 
                basic grant exceeds $2,400; plus
                    ``(B) the lesser of--
                            ``(i) the remaining one-half of such 
                        excess; or
                            ``(ii) the sum of the student's tuition, 
                        fees, and if the student has dependent care 
                        expenses (as described in section 472(8) or 
                        disability-related expenses (as described in 
                        section 472(9)), an allowance determined by the 
                        institution for such expenses.'';
                    (C) in paragraph (5), by striking ``$400, except'' 
                and all that follows through ``grant of $400'' and 
                insert ``$200''; and
                    (D) in paragraph (6)--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as clauses (i) and (ii), respectively;
                            (ii) by inserting ``(A)'' after the 
                        paragraph designation; and
                            (iii) by adding at the end the following:
                    ``(B) The Secretary shall promulgate regulations 
                implementing this paragraph.''; and
            (4) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows: 
                ``(1)(A) Except as provided in subparagraph (B), the 
                period during which a student may receive a basic grant 
                shall be the period, required for the completion of the 
                first undergraduate baccalaureate course of study 
                pursued by the student at the institution at which the 
                student is in attendance, that does not exceed 150 
                percent of the period normally required by a full-time 
                student (or the equivalent period, in the case of a 
                part-time student) to complete the course of study at 
                the institution, as determined by the institution.
                    ``(B) A student may receive basic grants under this 
                subpart for a period that exceeds the period described 
                in subparagraph (A) to the extent the institution in 
                which the student is enrolled determines necessary to 
                accommodate the rights of students with disabilities 
                under section 504 of the Rehabilitation Act of 1973.''; 
                and
                    (B) in paragraph (2)--
                            (i) by striking ``Nothing'' and inserting 
                        ``(A) Except as provided in subparagraph (B), 
                        nothing'';
                            (ii) by striking ``or, in the case'' and 
                        all that follows through ``or skills''; and
                            (iii) by adding at the end the following:
                    ``(B)(i) A student may receive a basic grant to 
                attend English language instruction that is a separate 
                course of instruction only if--
                            ``(I) students enrolled in such a course 
                        are required to take an independently 
                        administered standardized test of English 
                        language proficiency upon completion of the 
                        course; and
                            ``(II) not less than a minimum percentage 
                        of such students achieve a passing score on 
                        that test.
                    ``(ii) The Secretary shall promulgate regulations 
                that specify 1 or more standardized tests of English 
                proficiency, the minimum percentage of students who 
                must achieve a passing score on the tests, and such 
                other requirements as the Secretary determines are 
                necessary to implement clause (i).''.

SEC. 413. TRIO PROGRAMS.

    (a) Program Authority.--Section 402A (20 U.S.C. 1070a-11) is 
amended--
            (1) in subsection (b)(3)--
                    (A) in subparagraph (A), by striking ``$170,000 for 
                fiscal year 1993'' and inserting ``$190,000 for each 
                fiscal year'';
                    (B) in subparagraph (B), by striking ``$180,000 for 
                fiscal year 1994'' and inserting ``$200,000 for each 
                fiscal year''; and
                    (C) in subparagraph (C), by striking ``$190,000 for 
                fiscal year 1995'' and inserting ``$210,000 for each 
                fiscal year'';
            (2) in subsection (c)(6), by amending the last sentence to 
        read as follows: ``The Secretary shall permit a Director of a 
        program assisted under this chapter to also administer 1 or 
        more additional programs for disadvantaged students operated by 
        the sponsoring entity regardless of the funding source of such 
        additional program.''; and
            (3) in subsection (f), by striking ``$650,000,000 for 
        fiscal year 1993'' and inserting ``$700,000,000 for fiscal year 
        1999''.
    (b) Talent Search.--Section 402B(b)(5) (20 U.S.C. 1070a-12(b)(5)) 
is amended by inserting ``, or activities designed to acquaint 
individuals from disadvantaged backgrounds with careers in which the 
individuals are particularly underrepresented'' before the semicolon.
    (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (9), by striking ``and'' after the 
                semicolon;
                    (B) by redesignating paragraph (10) as paragraph 
                (11);
                    (C) by inserting after paragraph (9) the following:
            ``(10) work-study positions where youth participating in 
        the project are exposed to careers requiring a postsecondary 
        degree; and''; and
                    (D) in paragraph (11) (as redesignated by 
                subparagraph (B)), by striking ``(9)'' and inserting 
                ``(10)''; and
            (2) in subsection (e), by striking ``and not in excess of 
        $40 per month during the remaining period of the year.'' and 
        inserting ``except that youth participating in a work-study 
        position under subsection (b)(10) may be paid a stipend of $300 
        per month during June, July, and August. Youths participating 
        in a project proposed to be carried out under any application 
        may be paid stipends not in excess of $40 per month during the 
        remaining period of the year.''.
    (d) Student Support Services.--Paragraph (6) of section 402D(c) (20 
U.S.C. 1070a-14(c)(6)) is amended to read as follows:
            ``(6) consider, in addition to such other criteria as the 
        Secretary may prescribe, the institution's effort, and where 
        applicable past history, in--
                    ``(A) providing sufficient financial assistance to 
                meet the full financial need of each student at the 
                institution; and
                    ``(B) maintaining the loan burden of each such 
                student at a manageable level.''.
    (e) Evaluation and Dissemination.--Section 402H (20 U.S.C. 1070a-
18) is amended to read as follows:

``SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT AND 
              DISSEMINATION PARTNERSHIP PROJECTS.

    ``(a) Evaluations.--
            ``(1) In general.--For the purpose of improving the 
        effectiveness of the programs and projects assisted under this 
        subpart, the Secretary may make grants to or enter into 
        contracts with institutions of higher education and other 
        public and private institutions and organizations to evaluate 
        the effectiveness of the programs and projects assisted under 
        this subpart.
            ``(2) Practices.--The evaluations described in paragraph 
        (1) shall identify institutional, community, and program or 
        project practices that are particularly effective in enhancing 
        the access of low-income individuals and first-generation 
        college students to postsecondary education, the preparation of 
        the individuals and students for postsecondary education, and 
        the success of the individuals and students in postsecondary 
        education.
    ``(b) Grants.--The Secretary may award grants to institutions of 
higher education or other private and public institutions and 
organizations, that are carrying out a program or project assisted 
under this subpart prior to the date of enactment of the Higher 
Education Amendments of 1998, to enable the institutions and 
organizations to expand and leverage the success of such programs or 
projects by working in partnership with other institutions, community-
based organizations, or combinations of such institutions and 
organizations, that are not receiving assistance under this subpart and 
are serving low-income students and first generation college students, 
in order to--
            ``(1) disseminate and replicate best practices of programs 
        or projects assisted under this subpart; and
            ``(2) provide technical assistance regarding programs and 
        projects assisted under this subpart.
    ``(c) Results.--In order to improve overall program or project 
effectiveness, the results of evaluations and grants described in this 
section shall be disseminated by the Secretary to similar programs or 
projects assisted under this subpart, as well as other individuals 
concerned with postsecondary access for and retention of low-income 
individuals and first-generation college students.''.

SEC. 414. NATIONAL EARLY INTERVENTION SCHOLARSHIP AND PARTNERSHIP 
              PROGRAM.

    Section 404G (20 U.S.C. 1070a-27) is amended by striking ``1993'' 
and inserting ``1999''.

SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Authorization of Appropriations.--Section 413A(b) (20 U.S.C. 
1070b) is amended by striking ``$675,000,000 for fiscal year 1993'' and 
inserting ``$700,000,000 for fiscal year 1999''.
    (b) Use of Funds for Less-Than-Full-Time Students.--Subsection (d) 
of section 413C (20 U.S.C. 1070b-2) is amended to read as follows:
    ``(d) Use of Funds for Less-Than-Full-Time Students.--If the 
institution's allocation under this subpart is directly or indirectly 
based in part on the financial need demonstrated by students who are 
independent students or attending the institution on less than a full-
time basis, a reasonable proportion of the allocation shall be made 
available to such students.''.
    (c) Carryover, Carryback, and Reallocation.--Subpart 3 of part A of 
title IV (20 U.S.C. 1070b et seq.) is amended by adding at the end the 
following:

``SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCATION.

    ``(a) Carryover Authority.--Of the sums made available to an 
eligible institution under this subpart for a fiscal year, not more 
than 10 percent may, at the discretion of the institution, remain 
available for expenditure during the succeeding fiscal year to carry 
out the program under this subpart.
    ``(b) Carryback Authority.--Of the sums made available to an 
eligible institution under this subpart for a fiscal year, not more 
than 10 percent may, at the discretion of the institution, be used by 
the institution for expenditure for the fiscal year preceding the 
fiscal year for which the sums were appropriated.
    ``(c) Reallocation.--Any of the sums made available to an eligible 
institution under this subpart for a fiscal year that are not needed by 
the institution to award supplemental grants during that fiscal year, 
that the institution does not wish to use during the succeeding fiscal 
year as authorized in subsection (a), and that the institution does not 
wish to use for the preceding fiscal year as authorized in subsection 
(b), shall be made available to the Secretary for reallocation under 
section 413D(e) until the end of the second fiscal year after the 
fiscal year for which such sums were appropriated.''.

SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.

    (a) Amendment to Subpart Heading.--
            (1) In general.--The heading for subpart 4 of part A of 
        title IV (20 U.S.C. 1070c et seq.) is amended to read as 
        follows:

 ``Subpart 4--Leveraging Educational Assistance Partnership Program''.

            (2) Conforming amendments.--Subpart 4 of part A of title IV 
        (20 U.S.C. 1070c et seq.) is amended--
                    (A) in section 415B(b) (20 U.S.C. 1070c-1(b)), by 
                striking ``State student grant incentive'' and 
                inserting ``leveraging educational assistance 
                partnership''; and
                    (B) in the heading for section 415C (20 U.S.C. 
                1070c-2), by striking ``state student incentive grant'' 
                and inserting ``leveraging educational assistance 
                partnership''.
    (b) Authorization of Appropriations.--Section 415A(b) (20 U.S.C. 
1070c(b)) is amended--
            (1) in paragraph (1), by striking ``1993'' and inserting 
        ``1999'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following:
            ``(2) Reservation.--For any fiscal year for which the 
        amount appropriated under paragraph (1) exceeds $35,000,000, 
        the excess shall be available to carry out section 415E.''.
    (c) Special Leveraging Educational Assistance Partnership 
Program.--Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is 
amended--
            (1) by redesignating section 415E as 415F;
            (2) by inserting after section 415D the following:

``SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP 
              PROGRAM.

    ``(a) In General.--From amounts reserved under section 415A(b)(2) 
for each fiscal year, the Secretary shall--
            ``(1) make allotments among States in the same manner as 
        the Secretary makes allotments among States under section 415B; 
        and
            ``(2) award grants to States, from allotments under 
        paragraph (1), to enable the States to pay the Federal share of 
        the cost of the authorized activities described in subsection 
        (c).
    ``(b) Applicability Rule.--The provisions of this subpart which are 
not inconsistent with this section shall apply to the program 
authorized by this section.
    ``(c) Authorized Activities.--Each State receiving a grant under 
this section may use the grant funds for--
            ``(1) increasing the dollar amount of grants awarded under 
        section 415B to eligible students who demonstrate financial 
        need;
            ``(2) carrying out transition programs from secondary 
        school to postsecondary education for eligible students who 
        demonstrate financial need;
            ``(3) making funds available for community service work-
        study activities for eligible students who demonstrate 
        financial need;
            ``(4) creating a postsecondary scholarship program for 
        eligible students who demonstrate financial need and wish to 
        enter teaching;
            ``(5) creating a scholarship program for eligible students 
        who demonstrate financial need and wish to enter a program of 
        study leading to a degree in mathematics, computer science, or 
        engineering;
            ``(6) carrying out early intervention programs, mentoring 
        programs, and career education programs for eligible students 
        who demonstrate financial need; and
            ``(7) awarding merit or academic scholarships to eligible 
        students who demonstrate financial need.
    ``(d) Maintenance of Effort Requirement.--Each State receiving a 
grant under this section for a fiscal year shall provide the Secretary 
an assurance that the aggregate amount expended per student or the 
aggregate expenditures by the State, from funds derived from non-
Federal sources, for the authorized activities described in subsection 
(c) for the preceding fiscal year were not less than the amount 
expended per student or the aggregate expenditures by the State for the 
activities for the second preceding fiscal year.
    ``(e) Federal Share.--The Federal share of the cost of the 
authorized activities described in subsection (c) for any fiscal year 
shall be 33\1/3\ percent.''; and
            (3) by adding at the end the following:

``SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE AGREEMENTS.

    ``(a) In General.--Any State that desires to receive assistance 
under this subpart shall enter into an agreement with the Secretary 
pursuant to subsection (b) setting forth the terms and conditions for 
the relationship between the Federal Government and that State for the 
purposes set forth under this subpart.
    ``(b) Contents.--
            ``(1) In general.--Such agreement shall consist of 
        assurances by the State, including a description of the means 
        to be used by the State to fulfill the assurances, that--
                    ``(A) the State will provide for such methods of 
                administration as are necessary for the proper and 
                efficient administration of the program under this 
                subpart in keeping with the purposes set forth under 
                this subpart;
                    ``(B) the State will provide for such fiscal 
                control and fund accounting procedures as may be 
                necessary to ensure proper disbursement of, and 
                accounting for, Federal funds paid to the State under 
                this subpart;
                    ``(C) the State will follow policies and practices 
                of administration that will ensure that non-Federal 
                funds will not be supplanted by Federal funds, and that 
                equitable and appropriate criteria will be used in 
                evaluation of applications or proposals for grants 
                under this subpart; and
                    ``(D) the State has a comprehensive planning or 
                policy formulation process that--
                            ``(i) considers the relation between State 
                        administration of the program under this 
                        subpart, and administration of similar State 
                        programs or processes;
                            ``(ii) encourages State policies designed 
                        to consider effects on declining enrollments on 
                        all sectors of postsecondary education in the 
                        State;
                            ``(iii) considers the postsecondary 
                        education needs of unserved and underserved 
                        individuals within the State, including 
                        individuals beyond the traditional college age;
                            ``(iv) considers the resources of 
                        institutions, organizations, or agencies (both 
                        public and private) within the State capable of 
                        providing postsecondary educational 
                        opportunities in the State; and
                            ``(v) provides for direct, equitable, and 
                        active participation in the comprehensive 
                        planning or policy formulation process or 
                        processes of representatives of institutions of 
                        higher education (including community colleges, 
                        proprietary institutions, and independent 
                        colleges and universities), students, other 
                        providers of postsecondary education services, 
                        and the general public in the State.
            ``(2) Special rule.--Participation under paragraph 
        (1)(D)(v) shall, consistent with State law, be achieved through 
        membership on State planning commissions, State advisory 
        councils, or other State entities established by the State to 
        conduct federally assisted comprehensive planning or policy 
        formulation.
    ``(c) Special Rule.--The information and assurances provided by a 
State in accordance with subparagraphs (A), (B), and (C) of subsection 
(b)(1), and regulations issued by the Secretary related directly to 
such assurances, shall be satisfactory for the purposes of, and shall 
be considered in lieu of, any comparable requirements for information 
and assurances in any program under this subpart.
    ``(d) Agreement Duration; Compliance.--
            ``(1) Agreement duration.--An agreement of a State shall 
        remain in effect subject to modification as changes in 
        information or circumstances require.
            ``(2) Compliance.--Whenever the Secretary, after reasonable 
        notice and opportunity for a hearing has been given to the 
State, finds that there is a failure to comply substantially with the 
assurances required in subparagraph (A), (B), or (C) of subsection 
(b)(1), the Secretary shall notify the State that the State is no 
longer eligible to participate in the program under this subpart until 
the Secretary is satisfied that there is no longer any such failure to 
comply.
    ``(e) Special Rules.--
            ``(1) Entities entering into agreements.--For the purpose 
        of this section, the selection of the State entity or entities 
        authorized to act on behalf of the State for the purpose of 
        entering into an agreement with the Secretary shall be in 
        accordance with the State law of each individual State with 
        respect to the authority to make legal agreements between the 
        State and the Federal Government.
            ``(2) Construction.--
                    ``(A) State structure.--Nothing in this section 
                shall be construed to authorize the Secretary to 
                require any State to adopt, as a condition for entering 
                into an agreement, or for participation in a program 
                under this subpart, a specific State organizational 
                structure for achieving participation in the planning, 
                or administration of programs, or for statewide 
                planning, coordination, governing, regulating, or 
                administering of postsecondary education agencies, 
                institutions, or programs in the State.
                    ``(B) State authority.--Nothing in this section 
                shall be construed as a limitation on the authority of 
                any State to adopt a State organizational structure for 
                postsecondary education agencies, institutions, or 
                programs that is appropriate to the needs, traditions, 
                and circumstances of that State, or as a limitation on 
                the authority of a State entering into an agreement 
                pursuant to this section to modify the State 
                organizational structure at any time subsequent to 
                entering into such an agreement.''.
    (d) Technical and Conforming Amendments.--
            (1) Purpose.--Subsection (a) of section 415A (20 U.S.C. 
        1070c(a)) is amended to read as follows:
    ``(a) Purpose of Subpart.--It is the purpose of this subpart to 
make incentive grants available to States to assist States in--
            ``(1) providing grants to--
                    ``(A) eligible students attending institutions of 
                higher education or participating in programs of study 
                abroad that are approved for credit by institutions of 
                higher education at which such students are enrolled; 
                and
                    ``(B) eligible students for campus-based community 
                service work-study; and
            ``(2) carrying out the activities described in section 
        415F.''.
            (2) Allotment.--Section 415B(a)(1) (20 U.S.C. 1070c-
        1(a)(1)) is amended by inserting ``and not reserved under 
        section 415A(b)(2)'' after ``415A(b)(1)''.

SEC. 417. HEP AND CAMP.

    Section 418A(g) (20 U.S.C. 1070d-2(g)) is amended--
            (1) in paragraph (1), by striking ``$15,000,000 for fiscal 
        year 1993'' and inserting ``$25,000,000 for fiscal year 1999''; 
        and
            (2) in paragraph (2), by striking ``$5,000,000 for fiscal 
        year 1993'' and inserting ``$10,000,000 for fiscal year 1999''.

SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

    Section 419K (20 U.S.C. 1070d-41) is amended by striking 
``$10,000,000 for fiscal year 1993'' and inserting ``$45,000,000 for 
fiscal year 1999''.

SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

    Part A of title IV (20 U.S.C. 1070 et seq.) is amended by inserting 
after subpart 6 (20 U.S.C. 1070d-31 et seq.) the following:

         ``Subpart 7--Child Care Access Means Parents in School

``SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

    ``(a) Purpose.--The purpose of this section is to support the 
participation of low-income parents in postsecondary education through 
the provision of campus-based child care services.
    ``(b) Program Authorized.--
            ``(1) Authority.--The Secretary may award grants to 
        institutions of higher education to assist the institutions in 
        providing campus-based child care services primarily to low-
        income students.
            ``(2) Amount of grants.--
                    ``(A) In general.--The amount of a grant awarded to 
                an institution of higher education under this section 
                for a fiscal year shall not exceed 1 percent of the 
                total amount of all Federal Pell Grant funds awarded to 
                students enrolled at the institution of higher 
                education for the preceding fiscal year.
                    ``(B) Minimum.--A grant under this section shall be 
                awarded in an amount that is not less than $10,000.
            ``(3) Duration; renewal; and payments.--
                    ``(A) Duration.--The Secretary shall award a grant 
                under this section for a period of 3 years.
                    ``(B) Renewal.--A grant under this section may be 
                renewed for a period of 3 years.
                    ``(C) Payments.--Subject to subsection (e)(2), the 
                Secretary shall make annual grant payments under this 
                section.
            ``(4) Eligible institutions.--An institution of higher 
        education shall be eligible to receive a grant under this 
        section for a fiscal year if the total amount of all Federal 
        Pell Grant funds awarded to students enrolled at the 
        institution of higher education for the preceding fiscal year 
        equals or exceeds $350,000.
            ``(5) Use of funds.--Grant funds under this section shall 
        be used by an institution of higher education to support or 
        establish a campus-based child care program primarily serving 
        the needs of low-income students enrolled at the institution of 
        higher education.
            ``(6) Construction.--Nothing in this section shall be 
        construed to prohibit an institution of higher education that 
        receives grant funds under this section from serving the child 
        care needs of the community served by the institution.
            ``(7) Definition of low-income student.--For the purpose of 
        this section, the term ``low-income student'' means a student 
        who is eligible to receive a Federal Pell Grant for the fiscal 
        year for which the determination is made.
    ``(c) Applications.--An institution of higher education desiring a 
grant under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such information as 
the Secretary may require. Each application shall--
            ``(1) demonstrate that the institution is an eligible 
        institution described in subsection (b)(4);
            ``(2) specify the amount of funds requested;
            ``(3) demonstrate the need of low-income students at the 
        institution for campus-based child care services by including 
        in the application--
                    ``(A) information regarding student demographics;
                    ``(B) an assessment of child care capacity on or 
                near campus;
                    ``(C) information regarding the existence of 
                waiting lists for existing child care;
                    ``(D) information regarding additional needs 
                created by concentrations of poverty or by geographic 
                isolation; and
                    ``(E) other relevant data;
            ``(4) contain a description of the activities to be 
        assisted, including whether the grant funds will support an 
        existing child care program or a new child care program;
            ``(5) identify the resources, including technical expertise 
        and financial support, the institution will draw upon to 
        support the child care program and the participation of low-
        income students in the program, such as accessing social 
        services funding, using student activity fees to help pay the 
        costs of child care, using resources obtained by meeting the 
        needs of parents who are not low-income students, and accessing 
        foundation, corporate or other institutional support, and 
        demonstrate that the use of the resources will not result in 
        increases in student tuition;
            ``(6) contain an assurance that the institution will meet 
        the child care needs of low-income students through the 
        provision of services, or through a contract for the provision 
        of services;
            ``(7) describe the extent to which the child care program 
        will coordinate with the institution's early childhood 
        education curriculum, to the extent the curriculum is 
        available, to meet the needs of the students in the early 
        childhood education program at the institution, and the needs 
        of the parents and children participating in the child care 
        program assisted under this section;
            ``(8) in the case of an institution seeking assistance for 
        a new child care program--
                    ``(A) provide a timeline, covering the period from 
                receipt of the grant through the provision of the child 
                care services, delineating the specific steps the 
                institution will take to achieve the goal of providing 
                low-income students with child care services;
                    ``(B) specify any measures the institution will 
                take to assist low-income students with child care 
                during the period before the institution provides child 
                care services; and
                    ``(C) include a plan for identifying resources 
                needed for the child care services, including space in 
                which to provide child care services, and technical 
                assistance if necessary;
            ``(9) contain an assurance that any child care facility 
        assisted under this section will meet the applicable State or 
        local government licensing, certification, approval, or 
        registration requirements; and
            ``(10) contain a plan for any child care facility assisted 
        under this section to become accredited within 3 years of the 
        date the institution first receives assistance under this 
        section.
    ``(d) Priority.--The Secretary shall give priority in awarding 
grants under this section to institutions of higher education that 
submit applications describing programs that--
            ``(1) leverage significant local or institutional 
        resources, including in-kind contributions, to support the 
        activities assisted under this section; and
            ``(2) utilize a sliding fee scale for child care services 
        provided under this section in order to support a high number 
        of low-income parents pursuing postsecondary education at the 
        institution.
    ``(e) Reporting Requirements; Continuing Eligibility.--
            ``(1) Reporting requirements.--
                    ``(A) Reports.--Each institution of higher 
                education receiving a grant under this section shall 
                report to the Secretary 18 months, and 36 months, after 
                receiving the first grant payment under this section.
                    ``(B) Contents.--The report shall include--
                            ``(i) data on the population served under 
                        this section;
                            ``(ii) information on campus and community 
                        resources and funding used to help low-income 
                        students access child care services;
                            ``(iii) information on progress made toward 
                        accreditation of any child care facility; and
                            ``(iv) information on the impact of the 
                        grant on the quality, availability, and 
                        affordability of campus-based child care 
                        services.
            ``(2) Continuing eligibility.--The Secretary shall make the 
        third annual grant payment under this section to an institution 
        of higher education only if the Secretary determines, on the 
        basis of the 18-month report submitted under paragraph (1), 
        that the institution is making a good faith effort to ensure 
        that low-income students at the institution have access to 
        affordable, quality child care services.
    ``(f) Construction.--No funds provided under this section shall be 
used for construction, except for minor renovation or repair to meet 
applicable State or local health or safety requirements.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $60,000,000 for fiscal year 1999 
and such sums as may be necessary for each of the 4 succeeding fiscal 
years.''.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. ADVANCES FOR RESERVE FUNDS.

    Section 422 (20 U.S.C. 1072) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (6)(B)(i), by striking ``written'' 
                and inserting ``written, electronic''; and
                    (B) in paragraph (7)(A), by striking ``during the 
                transition from the Federal Family Education Loan 
                Program under this part to the Federal Direct Student 
                Loan Program under part D of this title'';
            (2) in the matter preceding subparagraph (A) of subsection 
        (g)(1), by striking ``or the program authorized by part D of 
        this title'' each place the term appears; and
            (3) by adding at the end the following:
    ``(i) Additional Recall of Reserves.--
            ``(1) In general.--Notwithstanding any other provision of 
        law and subject to paragraph (4), the Secretary shall recall 
        $40,000,000 for each of the fiscal years 1999, 2000, 2001, 
        2002, and 2003 from reserve funds held in the Federal Student 
        Loan Reserve Funds established under section 422A by guaranty 
        agencies.
            ``(2) Deposit.--Funds recalled by the Secretary under this 
        subsection shall be deposited in the Treasury.
            ``(3) Required share.--The Secretary shall require each 
        guaranty agency to return reserve funds under paragraph (1) 
        annually on the basis of \1/5\ of the agency's required share. 
        For purposes of this paragraph, a guaranty agency's required 
        share shall be determined as follows:
                    ``(A) Equal percentage.--The Secretary shall 
                require each guaranty agency to return an equal 
                percentage reduction in the amount of reserve funds 
                held by the agency on September 30, 1996.
                    ``(B) Calculation.--The equal percentage reduction 
                shall be the percentage obtained by dividing--
                            ``(i) $200,000,000, by
                            ``(ii) the total amount of all guaranty 
                        agencies' reserve funds held on September 30, 
                        1996.
            ``(4) Offset of required shares.--If any guaranty agency 
        returns to the Secretary any reserve funds in excess of the 
        amount required under this subsection or subsection (h), the 
        total amount required to be returned under paragraph (1) shall 
        be reduced by the amount of such excess reserve funds returned.
            ``(5) Definition of reserve funds.--The term `reserve 
        funds' when used with respect to a guaranty agency--
                    ``(A) includes any reserve funds in cash or liquid 
                assets held by the guaranty agency, or held by, or 
                under the control of, any other entity; and
                    ``(B) does not include buildings, equipment, or 
                other nonliquid assets.''.

SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND.

    Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting 
after section 422 (20 U.S.C. 1072) the following:

``SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.

    ``(a) Establishment.--Each guaranty agency shall, not later than 45 
days after the date of enactment of this section, deposit all funds, 
securities, and other liquid assets contained in the reserve fund 
established pursuant to section 422 into a Federal Student Loan Reserve 
Fund (in this section referred to as the `Federal Fund'), in an account 
of a type selected by the agency, with the approval of the Secretary.
    ``(b) Investment of Funds.--Funds transferred to the Federal Fund 
shall be invested in obligations issued or guaranteed by the United 
States or a State, or in other similarly low-risk securities selected 
by the guaranty agency, with the approval of the Secretary. Earnings 
from the Federal Fund shall be the sole property of the Federal 
Government.
    ``(c) Additional Deposits.--After the establishment of the Federal 
Fund, a guaranty agency shall deposit into the Federal Fund--
            ``(1) all amounts received from the Secretary as payment of 
        reinsurance on loans pursuant to section 428(c)(1);
            ``(2) from amounts collected on behalf of the obligation of 
        a defaulted borrower, a percentage amount equal to the 
        complement of the reinsurance percentage in effect when payment 
        under the guaranty agreement was made with respect to the 
        defaulted loan pursuant to section 428(c)(6)(A)(i); and
            ``(3) the amount of the insurance premium collected from 
        borrowers pursuant to section 428(b)(1)(H).
    ``(d) Uses of Funds.--Subject to subsection (f), the Federal Fund 
may only be used by a guaranty agency--
            ``(1) to pay lender claims pursuant to sections 
        428(b)(1)(G), 428(j), 437, and 439(q); and
            ``(2) to pay into the Agency Operating Fund established 
        pursuant to section 422B a default prevention fee in accordance 
        with section 428(l).
    ``(e) Ownership of Federal Fund.--The Federal Fund administered by 
the guaranty agency, regardless of who holds or controls the reserve 
funds or assets, and any nonliquid assets that were purchased with 
Federal reserve funds, shall be considered to be the property of the 
United States to be used in the operation of the program authorized by 
this part, as provided in subsection (d). The Secretary may direct a 
guaranty agency, or such agency's officers or directors, to cease any 
activity involving expenditure, use, or transfer of the Federal Fund 
administered by the guaranty agency that the Secretary determines is a 
misapplication, misuse, or improper expenditure of such funds or 
assets.
    ``(f) Transition.--
            ``(1) In general.--In order to establish the Agency 
        Operating Fund established by section 422B, each agency may 
        transfer not more than 180 days cash expenses for normal 
        operating expenses, as a working capital reserve as defined in 
        Office of Management and Budget Circular A-87 (Cost Accounting 
        Standards) for use in the performance of the agency's duties 
        under this part. Such transfers may occur during the first 3 
        years following the establishment of the Agency Operating Fund, 
        except that no agency may transfer in excess of 40 percent of 
        the Federal Fund balance to the agency's Agency Operating Fund 
        during any fiscal year. In determining the amount necessary for 
        transfer, the agency shall assure that sufficient funds remain 
        in the Federal Fund to pay lender claims within the required 
        time periods and to meet the reserve funds recall requirements 
        of subsection (b).
            ``(2) Repayment provisions.--Each guaranty agency shall 
        begin repayment of sums transferred pursuant to this subsection 
        not later than 3 years after the establishment of the Agency 
Operating Fund, and shall repay all sums transferred not later than 5 
years from the date of the establishment of the Agency Operating Fund. 
The guaranty agency shall provide to the Secretary a schedule for 
repayment of the sums transferred and an annual financial analysis 
demonstrating the agency's ability to comply with the schedule and 
repay all outstanding sums transferred.
            ``(3) Prohibition.--If a guaranty agency transfers funds 
        from the Federal Fund in accordance with this section, and 
        fails to make scheduled repayments to the Federal Fund, the 
        agency may not receive any other funds under this part until 
        the Secretary determines that the agency has made such 
        repayments.
            ``(4) Waiver.--The Secretary may waive the requirements of 
        paragraph (3) for a guaranty agency described in such paragraph 
        if the Secretary determines there are extenuating circumstances 
        beyond the control of the agency that justify such a waiver.
            ``(5) Investment of federal funds.--Funds transferred from 
        the Federal Fund to the Agency Operating Fund for operating 
        expenses shall be invested in obligations issued or guaranteed 
        by the United States or a State, or in other similarly low-risk 
        securities selected by the guaranty agency, with the approval 
        of the Secretary.
            ``(6) Special rule.--In applying the minimum reserve level 
        required by section 428(c)(9)(A), the Secretary shall include 
        all amounts owed to the Federal Fund by the guaranty agency in 
        the calculation.''.

SEC. 423. AGENCY OPERATING FUND.

    Part B of title IV (20 U.S.C. 1071 et seq.) is amended further by 
inserting after section 422A (as added by section 422) the following:

``SEC. 422B. AGENCY OPERATING FUND.

    ``(a) Establishment.--Each guaranty agency shall, not later than 45 
days after the date of enactment of this section, establish a fund 
designated as the Agency Operating Fund (in this section referred to as 
the `Operating Fund').
    ``(b) Investment of Funds.--Funds deposited into the Operating 
Fund, with the exception of funds transferred from the Federal Student 
Loan Reserve Fund pursuant to section 422A(f), shall be invested at the 
discretion of the guaranty agency.
    ``(c) Additional Deposits.--After the establishment of the 
Operating Fund, the guaranty agency shall deposit into the Operating 
Fund--
            ``(1) the loan processing and issuance fee paid by the 
        Secretary pursuant to section 428(f);
            ``(2) the portfolio maintenance fee paid by the Secretary 
        in accordance with section 458;
            ``(3) the default prevention fee paid in accordance with 
        section 428(l); and
            ``(4) amounts remaining pursuant to section 
        428(c)(6)(A)(ii) from collection on defaulted loans held by the 
        agency, after payment of the Secretary's equitable share, 
        excluding amounts deposited in the Federal Student Loan Reserve 
        Fund pursuant to section 422A(c)(2).
    ``(d) Uses of Funds.--
            ``(1) In general.--Funds in the Operating Fund shall be 
        used for application processing, loan disbursement, enrollment 
        and repayment status management, default prevention activities 
        (including those described in section 422(h)(8), default 
        collection activities, school and lender training, compliance 
        monitoring, and other student financial aid related activities 
        as determined by the Secretary.
            ``(2) Special rule.--The guaranty agency may, in the 
        agency's discretion, transfer funds from the Operating Fund to 
        the Federal Student Loan Reserve Fund for use pursuant to 
        section 422A. Such transfer shall be irrevocable, and any funds 
        so transferred shall become the sole property of the United 
        States.
            ``(3) Definitions.--For purposes of this subsection:
                    ``(A) Default collection activities.--The term 
                `default collection activities' means activities of a 
                guaranty agency that are directly related to the 
                collection of the loan on which a default claim has 
                been paid to the participating lender, including the 
                attributable compensation of collection personnel (and 
in the case of personnel who perform several functions for such an 
agency only the portion of the compensation attributable to the 
collection activity), attorney's fees, fees paid to collection 
agencies, postage, equipment, supplies, telephone, and similar charges.
                    ``(B) Default prevention activities.--The term 
                `default prevention activities' means activities of a 
                guaranty agency, including those described in section 
                422(h)(8), that are directly related to providing 
                collection assistance to the lender on a delinquent 
                loan, prior to the loan's being in a default status, 
                including the attributable compensation of appropriate 
                personnel (and in the case of personnel who perform 
                several functions for such an agency only the portion 
                of compensation attributable to the default prevention 
                activity), fees paid to locate a missing borrower, 
                postage, equipment, supplies, telephone, and similar 
                charges.
                    ``(C) Enrollment and repayment status management.--
                The term `enrollment and repayment status management' 
                means activities of a guaranty agency that are directly 
                related to ascertaining the student's enrollment 
                status, including prompt notification to the lender of 
                such status, an audit of the note or written agreement 
                to determine if the provisions of that note or 
                agreement are consistent with the records of the 
                guaranty agency as to the principal amount of the loan 
                guaranteed, and an examination of the note or agreement 
                to assure that the repayment provisions are consistent 
                with the provisions of this title.
    ``(e) Ownership of Operating Fund.--The Operating Fund, with the 
exception of funds transferred from the Federal Student Loan Reserve 
Fund in accordance with section 422A(f), shall be considered to be the 
property of the guaranty agency. The Secretary may not regulate the 
uses or expenditure of moneys in the Operating Fund, but the Secretary 
may require such necessary reports and audits as provided in section 
428(b)(2). However, during any period in which funds are owed to the 
Federal Student Loan Reserve Fund as a result of transfer under 
422A(f), moneys in the Operating Fund may only be used for expenses 
related to the student loan programs authorized under this part.
    ``(f) Authority of Secretary To Dispose of Nonliquid Assets.--The 
Secretary may allow a guaranty agency to purchase nonliquid assets of 
the agency originally acquired with student loan reserve funds, except 
that an agency may not purchase any nonliquid assets during any period 
in which funds are owed to the Federal Student Loan Reserve Fund as a 
result of a transfer under section 422A(f). The purchase amount shall 
be available for expenditure under section 458.''.

SEC. 424. APPLICABLE INTEREST RATES.

    (a) Applicable Interest Rates.--
            (1) Amendment.--Section 427A (20 U.S.C. 1077a et seq.) is 
        amended to read as follows:

``SEC. 427A. APPLICABLE INTEREST RATES.

    ``(a) Interest Rates for New Loans On or After July 1, 1998.--
            ``(1) In general.--Subject to paragraph (2), with respect 
        to any loan made, insured, or guaranteed under this part (other 
        than a loan made pursuant to section 428B or 428C) for which 
        the first disbursement is made on or after July 1, 1998, the 
        applicable rate of interest shall, during any 12-month period 
        beginning on July 1 and ending on June 30, be determined on the 
        preceding June 1 and be equal to--
                    ``(A) the bond equivalent rate of 91-day Treasury 
                bills auctioned at the final auction held prior to such 
                June 1; plus
                    ``(B) 2.3 percent,
        except that such rate shall not exceed 8.25 percent.
            ``(2) In school and grace period rules.--With respect to 
        any loan under this part (other than a loan made pursuant to 
        section 428B or 428C) for which the first disbursement is made 
        on or after July 1, 1998, the applicable rate of interest for 
        interest which accrues--
                    ``(A) prior to the beginning of the repayment 
                period of the loan; or
                    ``(B) during the period in which principal need not 
                be paid (whether or not such principal is in fact paid) 
                by reason of a provision described in section 
                428(b)(1)(M) or 427(a)(2)(C),
        shall be determined under paragraph (1) by substituting `1.7 
        percent' for `2.3 percent'.
            ``(3) PLUS loans.--With respect to any loan under section 
        428B for which the first disbursement is made on or after July 
        1, 1998, the applicable rate of interest shall be determined 
        under paragraph (1)--
                    ``(A) by substituting `3.1 percent' for `2.3 
                percent'; and
                    ``(B) by substituting `9.0 percent' for `8.25 
                percent'.
    ``(b) Lesser Rates Permitted.--Nothing in this section or section 
428C shall be construed to prohibit a lender from charging a borrower 
interest at a rate less than the rate which is applicable under this 
part.
    ``(c) Consultation.--The Secretary shall determine the applicable 
rate of interest under this section after consultation with the 
Secretary of the Treasury and shall publish such rate in the Federal 
Register as soon as practicable after the date of determination.''.
            (2) Conforming amendment.--Section 428B(d)(4) (20 U.S.C. 
        1078-2(d)(4)) is amended by striking ``section 427A(c)'' and 
        inserting ``section 427A(a)(3)''.
    (b) Special Allowances.--
            (1) Amendment.--Section 438(b)(2)(F) (20 U.S.C. 1087-
        1(b)(2)(F)) is amended to read as follows:
            ``(F) Loans disbursed after july 1, 1998.--
                    ``(i) In general.--Subject to paragraph (4) and 
                clauses (ii), (iii), and (iv) of this subparagraph, the 
                special allowance paid pursuant to this subsection on 
                loans for which the first disbursement is made on or 
                after July 1, 1998, shall be computed--
                            ``(I) by determining the average of the 
                        bond equivalent rates of 91-day Treasury bills 
                        auctioned for such 3-month period;
                            ``(II) by subtracting the applicable 
                        interest rates on such loans from such average 
                        bond equivalent rate;
                            ``(III) by adding 2.8 percent to the 
                        resultant percent; and
                            ``(IV) by dividing the resultant percent by 
                        4.
                    ``(ii) In school and grace period.--In the case of 
                any loan for which the first disbursement is made on or 
                after July 1, 1998, and for which the applicable rate 
                of interest is described in section 427A(a)(2), clause 
                (i)(III) of this subparagraph shall be applied by 
                substituting `2.2 percent' for `2.8 percent'.
                    ``(iii) PLUS loans.--In the case of any loan for 
                which the first disbursement is made on or after July 
                1, 1998, and for which the applicable rate of interest 
                is described in section 427A(a)(3), clause (i)(III) of 
                this subparagraph shall be applied by substituting `3.1 
                percent' for `2.8 percent', subject to clause (iv) of 
                this subparagraph.
                    ``(iv) Limitation on special allowances for plus 
                loans.--In the case of loans disbursed on or after July 
                1, 1998, for which the interest rate is determined 
                under section 427A(a)(3), a special allowance shall not 
                be paid for a loan made under section 428B unless the 
                rate determined for any 12-month period under section 
                427A(a)(3) exceeds 9 percent.''.
            (2) Conforming amendment.--Section 438(b)(2)(C)(ii) is 
        amended by striking ``In the case'' and inserting ``Subject to 
        subparagraph (F), in the case''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to any loan made, insured, or guaranteed under part 
B of title IV of the Higher Education Act of 1965 for which the first 
disbursement is made on or after July 1, 1998.

SEC. 425. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

    (a) Federal Interest Subsidies.--Section 428(a) (20 U.S.C. 1078(a)) 
is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking subclauses 
                        (I), (II), and (III) and inserting the 
                        following:
                            ``(I) sets forth the loan amount for which 
                        the student shows financial need; and
                            ``(II) sets forth a schedule for 
                        disbursement of the proceeds of the loan in 
                        installments, consistent with the requirements 
                        of section 428G; and''; and
                            (ii) by amending clause (ii) to read as 
                        follows:
                    ``(ii) meets the requirements of subparagraph (B); 
                and'';
                    (B) by amending subparagraph (B) to read as 
                follows:
            ``(B) For the purpose of clause (ii) of subparagraph (A), a 
        student shall qualify for a portion of an interest payment 
        under paragraph (1) (and a loan amount pursuant to section 
        428H) if the eligible institution has determined and documented 
        the student's amount of need for a loan based on the student's 
        estimated cost of attendance, estimated financial assistance, 
        and, for the purpose of an interest payment pursuant to this 
        section, the expected family contribution (as determined under 
        part F), subject to the provisions of subparagraph (D).'';
                    (C) by amending subparagraph (C) to read as 
                follows:
            ``(C) For the purpose of subparagraph (B) and this 
        paragraph--
                    ``(i) a student's cost of attendance shall be 
                determined under section 472;
                    ``(ii) a student's estimated financial assistance 
                means, for the period for which the loan is sought, the 
                amount of assistance such student will receive under 
                subpart 1 of part A (as determined in accordance with 
                section 484(b)), subpart 3 of part A, parts C and E, 
                and any veterans' education benefits paid because of 
                enrollment in a postsecondary education institution, 
                including veterans' education benefits (as defined in 
                section 480(c)), plus other scholarship, grant, or loan 
                assistance; and
                    ``(iii) the determination of need and of the amount 
                of a loan by an eligible institution under subparagraph 
                (B) with respect to a student shall, with the exception 
                of loans made under section 428H, be calculated in 
                accordance with part F.''; and
                    (D) by striking subparagraph (F); and
            (2) in paragraph (3)(A)(v)--
                    (A) in subclause (I), by inserting ``by the 
                institution'' after ``disbursement''; and
                    (B) in clause (II), by inserting ``by the 
                institution'' after ``disbursement''.
    (b) Insurance Program Agreements.--Section 428(b) (20 U.S.C. 
1078(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        inserting ``, as defined in section 
                        481(d)(2),'' after ``academic year'';
                            (ii) in clause (iv), by striking ``and'' 
                        after the semicolon;
                            (iii) in clause (v), by inserting ``and'' 
                        after the semicolon; and
                            (iv) by inserting before the matter 
                        following clause (v) the following:
                            ``(vi) in the case of a student enrolled in 
                        coursework specified in sections 484(b)(3)(B) 
                        and 484(b)(4)(B)--
                                    ``(I) $2,625 for coursework 
                                necessary for enrollment in an 
                                undergraduate degree or certificate 
                                program, and $5,500 for coursework 
                                necessary for enrollment in a graduate 
                                or professional degree or certification 
                                program; and
                                    ``(II) $5,500 for coursework 
                                necessary for a professional credential 
                                or certification from a State required 
                                for employment as a teacher in an 
                                elementary or secondary school;'';
                    (B) by amending subparagraph (E) to read as 
                follows:
                    ``(E) subject to subparagraphs (D) and (L), and 
                except as provided by subparagraph (M), provides that--
                            ``(i) not more than 6 months prior to the 
                        date on which the borrower's first payment is 
                        due, the lender shall offer the borrower of a 
                        loan made, insured, or guaranteed under this 
                        section or section 428H, the option of repaying 
                        the loan in accordance with a graduated, 
                        income-sensitive, or extended repayment 
                        schedule (as described in paragraph (9)) 
                        established by the lender in accordance with 
                        regulations provided by the Secretary; and
                            ``(ii) repayment of loans shall be in 
                        installments in accordance with the repayment 
                        plan selected under paragraph (9) and 
                        commencing at the beginning of the repayment 
                        period determined under paragraph (7)'';
                    (C) in subparagraph (L)(i), by inserting ``except 
                as otherwise provided by a repayment plan selected by 
                the borrower under clause (ii) or (iii) of paragraph 
                (9)(A),'' before ``during any''; and
                    (D) in subparagraph (U)(iii)(I), by inserting 
                ``that originates or holds more than $5,000,000 in 
                loans made under this title for any fiscal year (except 
                that each lender described in section 
                435(d)(1)(A)(ii)(III) shall annually submit the results 
                of an audit required by this clause),'' before ``at 
                least once a year''; and
            (2) by adding at the end the following:
            ``(9) Repayment plans.--
                    ``(A) Design and selection.--In accordance with 
                regulations promulgated by the Secretary, the lender 
                shall offer a borrower of a loan made under this part 
                the plans described in this subparagraph for repayment 
                of such loan, including principal and interest thereon. 
                Except as provided in paragraph (1)(L)(i), no plan may 
                require a borrower to repay a loan in less than 5 
                years. The borrower may choose from--
                            ``(i) a standard repayment plan, with a 
                        fixed annual repayment amount paid over a fixed 
                        period of time, not to exceed 10 years;
                            ``(ii) a graduated repayment plan paid over 
                        a fixed period of time, not to exceed 10 years;
                            ``(iii) an income-sensitive repayment plan, 
                        with income-sensitive repayment amounts paid 
                        over a fixed period of time, not to exceed 10 
                        years, except that the borrower's scheduled 
                        payments shall not be less than the amount of 
                        interest due; and
                            ``(iv) for first-time borrowers on or after 
                        the date of enactment of the Higher Education 
                        Amendments of 1998 with outstanding loans under 
                        this part totaling more than $30,000, an 
                        extended repayment plan, with a fixed annual or 
                        graduated repayment amount paid over an 
                        extended period of time, not to exceed 25 
                        years, except that the borrower shall repay 
                        annually a minimum amount determined in 
                        accordance with paragraph (2)(L).
                    ``(B) Lender selection of option if borrower does 
                not select.--If a borrower of a loan made under this 
                part does not select a repayment plan described in 
                subparagraph (A), the lender shall provide the borrower 
                with a repayment plan described in subparagraph (A)(i).
                    ``(C) Changes in selection.--The borrower of a loan 
                made under this part may change the borrower's 
                selection of a repayment plan under subparagraph (B), 
                as the case may be, under such conditions as may be 
                prescribed by the Secretary in regulation.
                    ``(D) Acceleration permitted.--Under any of the 
                plans described in this paragraph, the borrower shall 
                be entitled to accelerate, without penalty, repayment 
                on the borrower's loans under this part.''.
    (c) Guaranty Agreements for Reimbursing Losses.--Section 428(c) (20 
U.S.C. 1078(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the fourth sentence of subparagraph (A), by 
                striking ``as reimbursement under this subsection shall 
                be equal to 98 percent'' and inserting ``as 
                reimbursement for loans for which the first 
                disbursement is made on or after the date of enactment 
                of the Higher Education Amendments of 1998 shall be 
                equal to 95 percent'';
                    (B) in subparagraph (B)--
                            (i) in clause (i), by striking ``88 percent 
                        of the amount of such excess'' and inserting 
                        ``85 percent of the amount of such excess for 
                        loans for which the first disbursement is made 
                        on or after the date of enactment of the Higher 
                        Education Amendments of 1998''; and
                            (ii) in clause (ii), by striking ``78 
                        percent of the amount of such excess'' and 
                        inserting ``75 percent of the amount of such 
                        excess for loans for which the first 
                        disbursement is made on or after the date of 
                        enactment of the Higher Education Amendments of 
                        1998'';
                    (C) in subparagraph (E)--
                            (i) in clause (i), by striking ``98 
                        percent'' and inserting ``95 percent'';
                            (ii) in clause (ii), by striking ``88 
                        percent'' and inserting ``85 percent''; and
                            (iii) in clause (iii), by striking ``78 
                        percent'' and inserting ``75 percent''; and
                    (D) in subparagraph (F)--
                            (i) in clause (i), by striking ``98 
                        percent'' and inserting ``95 percent''; and
                            (ii) in clause (ii), by striking ``88 
                        percent'' and inserting ``85 percent'';
            (2) in paragraph (3)--
                    (A) in subparagraph (A)(i), by inserting ``or 
                electronic'' after ``written'';
                    (B) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                    (C) in subparagraph (C), by striking the period and 
                inserting ``; and''; and
                    (D) by inserting before the matter following 
                subparagraph (C) the following:
                    ``(D) shall contain provisions that specify that 
                forbearance for a period not to exceed 60 days may be 
                granted if the lender determines that such a suspension 
                of collection activity is warranted following a 
                borrower's request for forbearance in order to collect 
                or process appropriate supporting documentation related 
                to the request, and that during such period interest 
                shall not be capitalized.'';
            (3) by amending paragraph (6) to read as follows:
            ``(6) Secretary's equitable share.--For the purpose of 
        paragraph (2)(D), the Secretary's equitable share of payments 
        made by the borrower shall be that portion of the payments 
        remaining after the guaranty agency with which the Secretary 
        has an agreement under this subsection has deducted from such 
        payments--
                    ``(A) a percentage amount equal to the complement 
                of the reinsurance percentage in effect when payment 
                under the guaranty agreement was made with respect to 
                the loan; and
                    ``(B) an amount equal to 24 percent of such 
                payments for use in accordance with section 422B.'';
            (4) in paragraph (8)--
                    (A) by striking ``(A) If'' and inserting ``If''; 
                and
                    (B) by striking subparagraph (B); and
            (5) in paragraph (9)--
                    (A) in subparagraph (A), by striking ``maintain a 
                current minimum reserve level of at least .5 percent'' 
                and inserting ``maintain in the agency's Federal 
                Student Loan Reserve Fund established under section 
                422A a current minimum reserve level of at least 0.25 
                percent'';
                    (B) in subparagraph (C)--
                            (i) by striking ``80 percent'' and 
                        inserting ``78 percent'';
                            (ii) by striking ``, as appropriate,''; and
                            (iii) by striking ``30 working'' and 
                        inserting ``45 working'';
                    (C) in subparagraph (E)--
                            (i) in clause (iv), by inserting ``or'' 
                        after the semicolon;
                            (ii) in clause (v), by striking ``; or'' 
                        and inserting a period; and
                            (iii) by striking clause (vi);
                    (D) in subparagraph (F), by amending clause (vii) 
                to read as follows:
                    ``(vii) take any other action the Secretary 
                determines necessary to avoid disruption of the student 
                loan program, to ensure the continued availability of 
                loans made under this part to residents of each State 
                in which the guaranty agency did business, to ensure 
                the full honoring of all guarantees issued by the 
                guaranty agency prior to the Secretary's assumption of 
                the functions of such agency, and to ensure the proper 
                servicing of loans guaranteed by the guaranty agency 
                prior to the Secretary's assumption of the functions of 
                such agency.''; and
                    (E) in subparagraph (K), by striking ``and the 
                progress of the transition from the loan programs under 
                this part to the direct student loan programs under 
                part D of this title''.
    (d) Payment for Lender Referral Services.--Subsection (e) of 
section 428 (20 U.S.C. 1078) is repealed.
    (e) Payment of Certain Costs.--Subsection (f) of section 428 (20 
U.S.C. 1078) is amended to read as follows:
    ``(f) Payments of Certain Costs.--
            ``(1) Payment for certain activities.--
                    ``(A) In general.--The Secretary, for loans 
                originated on or after October 1, 1998, and in 
                accordance with the provisions of this paragraph, shall 
                pay to each guaranty agency, a loan processing and 
                issuance fee equal to 0.65 percent of the total 
                principal amount of the loans on which insurance was 
                issued under this part during such fiscal year by such 
                agency.
                    ``(B) Payment.--The payment required by 
                subparagraph (A) shall be paid on a quarterly basis. 
                The guaranty agency shall be deemed to have a 
                contractual right against the United States to receive 
                payments according to the provisions of this 
                subparagraph. Payments shall be made promptly and 
                without administrative delay to any guaranty agency 
                submitting an accurate and complete application 
                therefore under this subparagraph.''.
    (f) Lenders-of-Last-Resort.--Paragraph (3) of section 428(j) (20 
U.S.C. 1078(j)) is amended--
            (1) in the paragraph heading, by striking ``during 
        transition to direct lending''; and
            (2) in subparagraph (A), by striking ``during the 
        transition from the Federal Family Education Loan Program under 
        this part to the Federal Direct Student Loan Program under part 
        D of this title'';
    (g) Default Aversion Assistance.--Subsection (l) of section 428 (20 
U.S.C. 1078) is amended to read as follows:
    ``(l) Default Aversion Assistance.--
            ``(1) Assistance required.--Upon receipt of a proper 
        request from the lender not earlier than the 60th nor later 
        than the 90th day of delinquency, a guaranty agency having an 
        agreement with the Secretary under subsection (c) shall engage 
        in default aversion activities designed to prevent the default 
        by a borrower on a loan covered by such agreement.
            ``(2) Default prevention fee required.--
                    ``(A) In general.--A guaranty agency, in accordance 
                with the provisions of this paragraph, may transfer 
                from the Federal Student Loan Reserve Fund to the 
                Agency Operating Fund a default prevention fee. Such 
                fee shall be paid for any loan on which a claim for 
                default has not been presented that the guaranty agency 
                successfully brings into current repayment status on or 
                before the 210th day after the loan becomes 60 days 
                delinquent.
                    ``(B) Amount.--The default prevention fee shall be 
                equal to 1 percent of the total unpaid principal and 
                accrued interest on the loan calculated at the time the 
                request is submitted by the lender. Such fee shall not 
                be paid more than once on any loan for which the 
                guaranty agency averts the default unless the borrower 
                remained current in payments for at least 24 months 
                prior to the subsequent delinquency. A guaranty agency 
                may transfer such fees earned under this subsection not 
                more frequently than monthly.
                    ``(C) Definition of current repayment status.--For 
                the purpose of this paragraph, the term `current 
                repayment status' means that the borrower is not 
                delinquent, in any respect, in the payment of principal 
                and interest on the loan at the time the guaranty 
                agency qualifies for the default prevention fee.''.
    (h) State Share of Default Costs.--Subsection (n) of section 428 
(20 U.S.C. 1078) is repealed.

SEC. 426. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES.

    Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting 
after section 428 (20 U.S.C. 1078) the following:

``SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES.

    ``(a) Voluntary Agreements.--
            ``(1) Authority.--The Secretary may enter into a voluntary, 
        flexible agreement, subject to paragraph (2), with guaranty 
        agencies under this section, in lieu of agreements with a 
        guaranty agency under subsections (b) and (c) of section 428. 
        The Secretary may waive or modify any requirement under such 
        subsections, except that the Secretary may not waive any 
        statutory requirement pertaining to the terms and conditions 
        attached to student loans, default claim payments made to 
        lenders, or the prohibitions on inducements contained in 
        section 428(b)(3).
            ``(2) Eligibility.--During fiscal years 1999, 2000, and 
        2001, the Secretary may enter into a voluntary, flexible 
        agreement with not more than 6 guaranty agencies that had 1 or 
        more agreements with the Secretary under subsections (b) and 
        (c) of section 428 as of the day before the date of enactment 
        of the Higher Education Amendments of 1998. Beginning in fiscal 
        year 2002, any guaranty agency or consortium thereof may enter 
        into a similar agreement with the Secretary.
            ``(3) Report required.--Not later than September 30, 2001, 
        the Secretary shall report to the Committee on Labor and Human 
        Resources of the Senate and the Committee on Education and the 
        Workforce of the House of Representatives regarding the impact 
        that the voluntary flexible agreements have had upon program 
        integrity, program and cost efficiencies, and the availability 
        and delivery of student financial aid. Such report shall 
        include--
                    ``(A) a description of each voluntary flexible 
                agreement and the performance goals established by the 
                Secretary for each agreement;
                    ``(B) a list of participating guaranty agencies and 
                the specific statutory or regulatory waivers provided 
                to each guaranty agency;
                    ``(C) a description of the standards by which each 
                agency's performance under the agency's voluntary 
                flexible agreement was assessed and the degree to which 
                each agency achieved the performance standards; and
                    ``(D) an analysis of the fees paid by the 
                Secretary, and the costs and efficiencies achieved 
                under each voluntary agreement.
    ``(b) Terms of Agreement.--An agreement between the Secretary and a 
guaranty agency under this section--
            ``(1) shall be developed by the Secretary, in consultation 
        with the guaranty agency, on a case-by case basis;
            ``(2) may be secured by the parties;
            ``(3) may include provisions--
                    ``(A) specifying the responsibilities of the 
                guaranty agency under the agreement, such as--
                            ``(i) administering the issuance of 
                        insurance on loans made under this part on 
                        behalf of the Secretary;
                            ``(ii) monitoring insurance commitments 
                        made under this part;
                            ``(iii) default aversion activities;
                            ``(iv) review of default claims made by 
                        lenders;
                            ``(v) payment of default claims;
                            ``(vi) collection of defaulted loans;
                            ``(vii) adoption of internal systems of 
                        accounting and auditing that are acceptable to 
                        the Secretary, and reporting the result thereof 
                        to the Secretary in a timely manner, and on an 
                        accurate, and auditable basis;
                            ``(viii) timely and accurate collection and 
                        reporting of such other data as the Secretary 
                        may require to carry out the purposes of the 
                        programs under this title;
                            ``(ix) monitoring of institutions and 
                        lenders participating in the program under this 
                        part;
                            ``(x) the performance of other program 
                        functions by the guaranty agency or the 
                        agency's affiliates; and
                            ``(xi) informational outreach to schools 
                        and students in support of access to higher 
                        education;
                    ``(B) regarding the fees the Secretary shall pay, 
                in lieu of revenues that the guaranty agency may 
                otherwise receive under this part, to the guaranty 
                agency under the agreement, and other funds that the 
                guaranty agency may receive or retain under the 
                agreement, except that in no case may the cost to the 
                Secretary of the agreement, as reasonably projected by 
                the Secretary, exceed the cost to the Secretary, as 
                similarly projected, in the absence of the agreement;
                    ``(C) regarding the use of net revenues, as 
                described in the agreement under this section, for such 
                other activities in support of postsecondary education 
                as may be agreed to by the Secretary and the guaranty 
                agency;
                    ``(D) regarding the standards by which the guaranty 
                agency's performance of the agency's responsibilities 
                under the agreement will be assessed, and the 
                consequences for a guaranty agency's failure to achieve 
                a specified level of performance on one or more 
                performance standards;
                    ``(E) regarding the circumstances in which a 
                guaranty agency's agreement under this section may be 
                ended in advance of the agreement's expiration date;
                    ``(F) regarding such other businesses, previously 
                purchased or developed with reserve funds, that relate 
                to the program under this part and in which the 
                Secretary permits the guaranty agency to engage; and
                    ``(G) such other provisions as the Secretary may 
                determine to be necessary to protect the United States 
                from the risk of unreasonable loss and to promote the 
                purposes of this part; and
            ``(4) shall provide for uniform lender participation with 
        the guaranty agency under the terms of the agreement.
    ``(c) Termination.--At the expiration or early termination of an 
agreement under this section, the Secretary shall reinstate the 
guaranty agency's prior agreements under subsections (b) and (c) of 
section 428, subject only to such additional requirements as the 
Secretary determines to be necessary in order to ensure the efficient 
transfer of responsibilities between the agreement under this section 
and the agreements under subsections (b) and (c) of section 428, and 
including the guaranty agency's compliance with reserve requirements 
under sections 422 and 428.''.

SEC. 427. FEDERAL PLUS LOANS.

    Section 428B (20 U.S.C. 1078-2) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Authority To Borrow.--
            ``(1) Authority and eligibility.--Parents of a dependent 
        student shall be eligible to borrow funds under this section in 
        amounts specified in subsection (b), if--
                    ``(A) the parents do not have an adverse credit 
                history as determined pursuant to regulations 
                promulgated by the Secretary; and
                    ``(B) the parents meet such other eligibility 
                criteria as the Secretary may establish by regulation, 
                after consultation with guaranty agencies, eligible 
                lenders, and other organizations involved in student 
                financial assistance.
            ``(2) Terms, conditions, and benefits.--Except as provided 
        in subsections (c), (d), and (e), loans made under this section 
        shall have the same terms, conditions, and benefits as all 
        other loans made under this part.
            ``(3) Special rule.--Whenever necessary to carry out the 
        provisions of this section, the terms ``student'' and 
        ``borrower'' as used in this part shall include a parent 
        borrower under this section.''; and
            (2) by adding at the end the following:
    ``(f) Verification of Immigration Status and Social Security 
Number.--A parent who wishes to borrow funds under this section shall 
be subject to verification of the parent's--
            ``(1) immigration status in the same manner as immigration 
        status is verified for students under section 484(g); and
            ``(2) social security number in the same manner as social 
        security numbers are verified for students under section 
        484(p).''.

SEC. 428. FEDERAL CONSOLIDATION LOANS.

    Section 428C(a)(3) (20 U.S.C. 1078-3(a)(3)) is amended--
            (1) by amending subparagraph (A) to read as follows: ``(A) 
        For the purpose of this section, the term `eligible borrower' 
        means a borrower who--
                    ``(i) is not subject to a judgment secured through 
                litigation or an order for wage garnishment under 
                section 488A; or
                    ``(ii) at the time of application for a 
                consolidation loan--
                            ``(I) is in repayment status;
                            ``(II) is in a grace period preceding 
                        repayment; or
                            ``(III) is a defaulted borrower who has 
                        made arrangements to repay the obligation on 
                        the defaulted loans satisfactory to the holders 
                        of the defaulted loans.''; and
            (2) in subparagraph (B)(i)--
                    (A) in subclause (I), by striking ``and'' after the 
                semicolon;
                    (B) by redesignating subclause (II) as subclause 
                (III);
                    (C) by inserting after subclause (I) the following:
                    ``(II) with respect to eligible student loans 
                received prior to the date of consolidation that the 
                borrower may wish to include with eligible loans 
                specified in subclause (I) in a later consolidation 
                loan; and''; and
                    (D) in subclause (III) (as redesignated by 
                subparagraph (B)--
                            (i) by striking ``that loans'' and 
                        inserting ``with respect to loans''; and
                            (ii) by inserting ``that'' before ``may be 
                        added''.

SEC. 429. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.

    Section 428G (20 U.S.C. 1078G) is amended--
            (1) in subsection (a)(1), by striking ``The proceeds'' and 
        inserting ``Except for a loan made for the final period of 
        enrollment, that is less than an academic year, in a student's 
        baccalaureate program of study, at an institution with a cohort 
        default rate (as calculated under section 435(m)) that is 5 
        percent or less, the proceeds''; and
            (2) in subsection (b)(1), by striking ``The first'' and 
        inserting ``Except for a loan made to a student borrower 
        entering an institution with a cohort default rate (as 
        calculated under section 435(m)) of less than 5 percent, the 
        first''.

SEC. 430. DEFAULT REDUCTION PROGRAM.

    The heading for subsection (b) of section 428F (20 U.S.C. 1078-6) 
is amended by striking ``Special Rule'' and inserting ``Satisfactory 
Repayment Arrangements To Renew Eligibility''.

SEC. 431. UNSUBSIDIZED LOANS.

    Section 428H (20 U.S.C. 1078-8) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) Eligible Borrowers.--Any student meeting the requirements for 
student eligibility under section 484 (including graduate and 
professional students as defined in regulations promulgated by the 
Secretary) shall be entitled to borrow an unsubsidized Stafford loan if 
the eligible institution at which the student has been accepted for 
enrollment, or at which the student is in attendance, has--
            ``(1) determined and documented the student's need for the 
        loan based on the student's estimated cost of attendance (as 
        determined under section 472) and the student's estimated 
        financial assistance, including a loan which qualifies for 
        interest subsidy payments under section 428; and
            ``(2) provided the lender a statement--
                    ``(A) certifying the eligibility of the student to 
                receive a loan under this section and the amount of the 
                loan for which such student is eligible, in accordance 
                with subsection (c); and
                    ``(B) setting forth a schedule for disbursement of 
                the proceeds of the loan in installments, consistent 
                with the requirements of section 428G.'';
            (2) in subsection (d)--
                    (A) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by inserting ``, as defined in 
                                section 481(d)(2),'' after ``academic 
                                year''; and
                                    (II) by striking ``or in any period 
                                of 7 consecutive months, whichever is 
                                longer,'';
                            (ii) in subparagraph (C), by inserting 
                        ``and'' after the semicolon; and
                            (iii) by inserting before the matter 
                        following subparagraph (C) the following:
                    ``(D) in the case of a student enrolled in 
                coursework specified in sections 484(b)(3)(B) and 
                484(b)(4)(B)--
                            ``(i) $4,000 for coursework necessary for 
                        enrollment in an undergraduate degree or 
                        certificate program, and $5,000 for coursework 
                        necessary for enrollment in a graduate or 
                        professional program; and
                            ``(ii) $5,000 for coursework necessary for 
                        a professional credential or certification from 
                        a State required for employment as a teacher in 
                        an elementary or secondary school;''; and
                    (B) in paragraph (3), by adding at the end the 
                following: ``The maximum aggregate amount shall not 
                include interest capitalized from an in-school 
                period.''; and
            (3) in subsection (e)(6), by striking ``10 year repayment 
        period under section 428(b)(1)(D)'' and inserting ``repayment 
        period under section 428(b)(9)''.

SEC. 432. LOAN FORGIVENESS FOR TEACHERS.

    Section 428J (20 U.S.C. 1078-10) is amended to read as follows:

``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.

    ``(a) Statement of Purpose.--It is the purpose of this section to 
encourage individuals to enter and continue in the teaching profession.
    ``(b) Program Authorized.--The Secretary is authorized to carry out 
a program, through the holder of the loan, of assuming the obligation 
to repay a loan made under section 428 that is eligible for interest 
subsidy, for any new borrower on or after the date of enactment of the 
Higher Education Amendments of 1998, who--
            ``(1) has been employed as a full-time teacher for 3 
        consecutive complete school years--
                    ``(A) in a school that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins loan 
                recipients who teach in such schools;
                    ``(B) if employed as a secondary school teacher, is 
                teaching a subject area that is relevant to the 
                borrower's academic major as certified by the chief 
                administrative officer of the public or nonprofit 
                private secondary school in which the borrower is 
                employed; and
                    ``(C) if employed as an elementary school teacher, 
                has demonstrated, in accordance with State teacher 
                certification or licensing requirements and as 
                certified by the chief administrative officer of the 
                public or nonprofit private elementary school in which 
                the borrower is employed, knowledge and teaching skills 
                in reading, writing, mathematics and other areas of the 
                elementary school curriculum; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(c) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(d) Loan Repayment During Continuing Teaching Service.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay through reimbursement to the holder--
                    ``(A) 30 percent of the total outstanding amount 
                and applicable interest of subsidized Federal Stafford 
                loans owed by the student borrower after the completion 
                of the fourth or fifth complete school year of service 
                described in subsection (b);
                    ``(B) 40 percent of such total amount after the 
                completion of the sixth complete school year of such 
                service; and
                    ``(C) a total amount for any borrower that shall 
                not exceed $10,000.
            ``(2) Construction.--Nothing in this section shall be 
        construed to authorize any refunding of any repayment of a 
        loan.
    ``(e) List.--If the list of schools in which a teacher may perform 
service pursuant to subsection (b) is not available before May 1 of any 
year, the Secretary may use the list for the year preceding the year 
for which the determination is made to make such service determination.
    ``(f) Continued Eligibility.--Any teacher who performs service in a 
school that--
            ``(1) meets the requirements of subsection (b)(1)(A) in any 
        year during such service; and
            ``(2) in a subsequent year fails to meet the requirements 
        of such subsection, may continue to teach in such school and 
        shall be eligible for loan forgiveness pursuant to subsection 
        (b).''.

SEC. 433. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

    Part B (20 U.S.C. 1071 et seq.) is amended by inserting after 
section 428J (as added by section 432) (20 U.S.C. 1078-10) the 
following:

``SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to bring more highly trained individuals into the 
        early child care profession; and
            ``(2) to keep more highly trained child care providers in 
        the early child care field for longer periods of time.
    ``(b) Definitions.--In this section:
            ``(1) Child care facility.--The term `child care facility' 
        means a facility, including a home, that--
                    ``(A) provides child care services; and
                    ``(B) meets applicable State or local government 
                licensing, certification, approval, or registration 
                requirements, if any.
            ``(2) Child care services.--The term `child care services' 
        means activities and services provided for the education and 
        care of children from birth through age 5 by an individual who 
        has a degree in early childhood education.
            ``(3) Degree.--The term `degree' means an associate's or 
        bachelor's degree awarded by an institution of higher 
        education.
            ``(4) Early childhood education.--The term `early childhood 
        education' means education in the areas of early child 
        education, child care, or any other educational area related to 
        child care that the Secretary determines appropriate.
            ``(5) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101.
    ``(c) Demonstration Program.--
            ``(1) In general.--The Secretary may carry out a 
        demonstration program of assuming the obligation to repay, 
        pursuant to subsection (d), a loan made, insured or guaranteed 
        under this part or part D (excluding loans made under sections 
        428B and 428C) for any new borrower after the date of enactment 
        of the Higher Education Amendments of 1998, who--
                    ``(A) completes a degree in early childhood 
                education;
                    ``(B) obtains employment in a child care facility; 
                and
                    ``(C) is working full-time and is earning an amount 
                which does not exceed the greater of an amount equal to 
                100 percent of the poverty line for a family of 2 as 
                determined in accordance with section 673(2) of the 
                Community Services Block Grant Act.
            ``(2) Award basis; priority.--
                    ``(A) Award basis.--Subject to subparagraph (B), 
                loan repayment under this section shall be on a first-
                come, first-served basis and subject to the 
                availability of appropriations.
                    ``(B) Priority.--The Secretary shall give priority 
                in providing loan repayment under this section for a 
                fiscal year to student borrowers who received loan 
                repayment under this section for the preceding fiscal 
                year.
            ``(3) Regulations.--The Secretary is authorized to 
        prescribe such regulations as may be necessary to carry out the 
        provisions of this section.
    ``(d) Loan Repayment.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay--
                    ``(A) after the second year of employment described 
                in subparagraphs (B) and (C) of subsection (c)(1), 20 
                percent of the total amount of all loans made after 
                date of enactment of the Higher Education Amendments of 
                1998, to a student under this part or part D;
                    ``(B) after the third year of such employment, 20 
                percent of the total amount of all such loans; and
                    ``(C) after each of the fourth and fifth years of 
                such employment, 30 percent of the total amount of all 
                such loans.
            ``(2) Construction.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made under this part or part D.
            ``(3) Interest.--If a portion of a loan is repaid by the 
        Secretary under this section for any year, the proportionate 
        amount of interest on such loan which accrues for such year 
        shall be repaid by the Secretary.
            ``(4) Special rule.--In the case where a student borrower 
        who is not participating in loan repayment pursuant to this 
        section returns to an institution of higher education after 
        graduation from an institution of higher education for the 
        purpose of obtaining a degree in early childhood education, the 
        Secretary is authorized to assume the obligation to repay the 
        total amount of loans made under this part or part D incurred 
        for a maximum of two academic years in returning to an 
        institution of higher education for the purpose of obtaining a 
        degree in early childhood education. Such loans shall only be 
        repaid for borrowers who qualify for loan repayment pursuant to 
        the provisions of this section, and shall be repaid in 
        accordance with the provisions of paragraph (1).
            ``(5) Ineligibility of national service award recipients.--
        No student borrower may, for the same volunteer service, 
        receive a benefit under both this section and subtitle D of 
        title I of the National and Community Service Act of 1990 (42 
        U.S.C. 12601 et seq.).
    ``(e) Repayment to Eligible Lenders.--The Secretary shall pay to 
each eligible lender or holder for each fiscal year an amount equal to 
the aggregate amount of loans which are subject to repayment pursuant 
to this section for such year.
    ``(f) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        repayment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            ``(2) Conditions.--An eligible individual may apply for 
        loan repayment under this section after completing each year of 
        qualifying employment. The borrower shall receive forbearance 
        while engaged in qualifying employment unless the borrower is 
        in deferment while so engaged.
    ``(g) Evaluation.--
            ``(1) In general.--The Secretary shall conduct, by grant or 
        contract, an independent national evaluation of the impact of 
        the demonstration program assisted under this section on the 
        field of early childhood education.
            ``(2) Competitive basis.--The grant or contract described 
        in subsection (b) shall be awarded on a competitive basis.
            ``(3) Contents.--The evaluation described in this 
        subsection shall--
                    ``(A) determine the number of individuals who were 
                encouraged by the demonstration program assisted under 
                this section to pursue early childhood education;
                    ``(B) determine the number of individuals who 
                remain employed in a child care facility as a result of 
                participation in the program;
                    ``(C) identify the barriers to the effectiveness of 
                the program;
                    ``(D) assess the cost-effectiveness of the program 
                in improving the quality of--
                            ``(i) early childhood education; and
                            ``(ii) child care services;
                    ``(E) identify the reasons why participants in the 
                program have chosen to take part in the program;
                    ``(F) identify the number of individuals 
                participating in the program who received an 
                associate's degree and the number of such individuals 
                who received a bachelor's degree; and
                    ``(G) identify the number of years each individual 
                participates in the program.
            ``(4) Interim and final evaluation reports.--The Secretary 
        shall prepare and submit to the President and the Congress such 
        interim reports regarding the evaluation described in this 
        subsection as the Secretary deems appropriate, and shall 
        prepare and so submit a final report regarding the evaluation 
        by January 1, 2002.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 
1999, and such sums as may be necessary for each of the 4 succeeding 
fiscal years.''.

SEC. 434. COMMON FORMS AND FORMATS.

    Section 432 (20 U.S.C. 1082) is amended--
            (1) in subsection (m)(1)--
                    (A) in subparagraph (A), by striking ``a common 
                application form and promissory note'' and inserting 
                ``common application forms and promissory notes, or 
                multiyear promissory notes,'';
                    (B) by striking subparagraph (C);
                    (C) by redesignating subparagraph (D) as 
                subparagraph (C); and
                    (D) in subparagraph (C) (as redesignated by 
                subparagraph (C))--
                            (i) by inserting ``, application and 
                        other'' after ``electronic''; and
                            (ii) by adding at the end the following: 
                        ``Guaranty agencies, borrowers, and lenders may 
                        use electronically printed versions of common 
                        forms approved for use by the Secretary.''; and
            (2) in subsection (p), by striking ``State postsecondary 
        reviewing entities designated under subpart 1 of part H,''.

SEC. 435. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

    Section 433 (20 U.S.C. 1083) is amended--
            (1) in subsection (a), by amending the matter preceding 
        paragraph (1) to read as follows:
    ``(a) Required Disclosure Before Disbursement.--Each eligible 
lender shall, at or prior to the time such lender disburses a loan that 
is insured or guaranteed under this part (other than a loan made under 
section 428C), provide thorough and accurate loan information on such 
loan to the borrower. Any disclosure required by this subsection may be 
made by an eligible lender by written or electronic means, including as 
part of the application material provided to the borrower, as part of 
the promissory note evidencing the loan, or on a separate written form 
provided to the borrower. Each lender shall provide a telephone number, 
and may provide an electronic address, to each borrower through which 
additional loan information can be obtained. The disclosure shall 
include--''; and
            (2) in subsection (b), by amending the matter preceding 
        paragraph (1) to read as follows:
    ``(b) Required Disclosure Before Repayment.--Each eligible lender 
shall, at or prior to the start of the repayment period of the student 
borrower on loans made, insured, or guaranteed under this part, 
disclose to the borrower by written or electronic means the information 
required under this subsection. Each eligible lender shall provide a 
telephone number, and may provide an electronic address, to each 
borrower through which additional loan information can be obtained. For 
any loan made, insured, or guaranteed under this part, other than a 
loan made under section 428B or 428C, such disclosure required by this 
subsection shall be made not less than 30 days nor more than 240 days 
before the first payment on the loan is due from the borrower. The 
disclosure shall include--''.

SEC. 436. DEFINITIONS.

    (a) Eligible Institution.--Section 435(a) (20 U.S.C. 1085(a)) is 
amended--
            (1) in paragraph (2)--
                    (A) by adding after the matter following 
                subparagraph (A)(ii) the following:
        ``If an institution continues to participate in a program under 
        this part, and the institution's appeal of the loss of 
        eligibility is unsuccessful, the institution shall be required 
        to pay to the Secretary an amount equal to the amount of 
        interest, special allowance, reinsurance, and any related 
        payments made by the Secretary (or which the Secretary is 
        obligated to make) with respect to loans made under this part 
        to students attending, or planning to attend, that institution 
        during the pendency of such appeal. In order to continue to 
        participate during an appeal under this paragraph, the 
        institution shall provide a letter of credit in favor of the 
        Secretary or other third-party financial guarantees 
        satisfactory to the Secretary in an amount determined by the 
        Secretary to be sufficient to satisfy the institution's 
        potential liability on such loans under the preceding 
        sentence.''; and
                    (B) by amending subparagraph (C) to read as 
                follows:
            ``(C)(i) This paragraph shall not apply to any institution 
        described in clause (ii), and any such institution that exceeds 
        the threshold percentage in subparagraph (A)(ii) for 2 
        consecutive years shall submit to the Secretary a default 
        management plan satisfactory to the Secretary and containing 
        criteria designed, in accordance with the regulations of the 
        Secretary, to demonstrate continuous improvement by the 
        institution in the institution's cohort default rate. If the 
        institution fails to submit the required plan, or to satisfy 
        the criteria in the plan, the institution shall be subject to a 
        loss of eligibility in accordance with this paragraph, except 
        as the Secretary may otherwise specify in regulations.
            ``(ii) An institution referred to in clause (i) is--
                    ``(I) a part B institution within the meaning of 
                section 322(2);
                    ``(II) a Tribally Controlled College or University 
                within the meaning of section 2(a)(4) of the Tribally 
                Controlled College or University Assistance Act of 
                1978; or
                    ``(III) a Navajo Community College under the Navajo 
                Community College Act.'';
            (2) in the matter following subparagraph (C)--
                    (A) by inserting ``for a reasonable period of time, 
                not to exceed 30 days,'' after ``access''; and
                    (B) by striking ``of the affected guaranty agencies 
                and loan servicers for a reasonable period of time, not 
                to exceed 30 days'' and inserting ``used by a guaranty 
                agency in determining whether to pay a claim on a 
                defaulted loan''; and
            (3) by adding at the end the following:
            ``(4) Participation rate index.--
                    ``(A) In general.--An institution that demonstrates 
                to the Secretary that the institution's participation 
                rate index is equal to or less than 0.0375 for any of 
                the 3 applicable participation rate indices shall not 
                be subject to paragraph (2). The participation rate 
                index shall be determined by multiplying the 
                institution's cohort default rate for loans under part 
                B or D, or weighted average cohort default rate for 
                loans under parts B and D, by the percentage of the 
                institution's regular students, enrolled on at least a 
                half-time basis, who received a loan made under part B 
                or D for a 12-month period ending during the 6 months 
                immediately preceding the fiscal year for which the 
                cohort of borrowers used to calculate the institution's 
                cohort default rate is determined.
                    ``(B) Data.--An institution shall provide the 
                Secretary with sufficient data to determine the 
                institution's participation rate index within 30 days 
                after receiving an initial notification of the 
                institution's draft cohort default rate.
                    ``(C) Notification.--Prior to publication of a 
                final cohort default rate for an institution that 
                provides the data described in subparagraph (B), the 
                Secretary shall notify the institution of the 
                institution's compliance or noncompliance with 
                subparagraph (A).''.
    (b) Eligible Lender.--Section 435(d)(1)(A)(ii) (20 U.S.C. 
1085(d)(1)(A)(ii) is amended--
            (1) by striking ``or'' after ``1992,''; and
            (2) by inserting before the semicolon the following: ``, or 
        (III) it is a bank (as defined in section 3(a)(1) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1813(a)(1)) that is a 
        wholly owned subsidiary of a nonprofit foundation, the 
        foundation is described in section 501(c)(3) of the Internal 
        Revenue Code of 1986 and exempt from taxation under section 
        501(1) of such Code, and the bank makes loans under this part 
        only to undergraduate students who are age 22 or younger and 
        has a portfolio of such loans that is not more than 
        $5,000,000''.
    (c) Cohort Default Rate.--Section 435(m)(1)(B) (20 U.S.C. 
1085(m)(1)(B)) is amended by striking ``insurance, and, in considering 
appeals with respect to cohort default rates pursuant to subsection 
(a)(3), exclude'' and inserting ``insurance. In considering appeals 
with respect to cohort default rates pursuant to subsection (a)(3), the 
Secretary shall exclude, from the calculation of the number of students 
who entered repayment and from the calculation of the number of 
students who default,''.

SEC. 437. DELEGATION OF FUNCTIONS.

    Section 436 (20 U.S.C. 1086) is amended to read as follows:

``SEC. 436. DELEGATION OF FUNCTIONS.

    ``(a) In General.--An eligible lender or guaranty agency that 
contracts with another entity to perform any of the lender's or 
agency's functions under this title, or otherwise delegates the 
performance of such functions to such other entity--
            ``(1) shall not be relieved of the lender's or agency's 
        duty to comply with the requirements of this title; and
            ``(2) shall monitor the activities of such other entity for 
        compliance with such requirements.
    ``(b) Special Rule.--A lender that holds a loan made under part B 
in the lender's capacity as a trustee is responsible for complying with 
all statutory and regulatory requirements imposed on any other holder 
of a loan made under this part.''.

SEC. 438. SPECIAL ALLOWANCES.

    (a) Amendments.--Section 438 (20 U.S.C. 1087-1) is amended--
            (1) in subsection (c), by amending paragraph (1) to read as 
        follows:
            ``(1) Deduction from interest and special allowance 
        subsidies.--(A) Notwithstanding subsection (b), the Secretary 
        shall collect the amount the lender is authorized to charge as 
        an origination fee in accordance with paragraph (2) of this 
        subsection--
                    ``(i) by reducing the total amount of interest and 
                special allowance payable under section 428(a)(3)(A) 
                and subsection (b) of this section, respectively, to 
                any holder; or
                    ``(ii) directly from the holder of the loan, if the 
                lender fails or is not required to bill the Secretary 
                for interest and special allowance or withdraws from 
                the program with unpaid loan origination fees.
            ``(B) If the Secretary collects the origination fee under 
        this subsection through the reduction of interest and special 
        allowance, and the total amount of interest and special 
        allowance payable under section 428(a)(3)(A) and subsection (b) 
        of this section, respectively, is less than the amount the 
        lender was authorized to charge borrowers for origination fees 
        in that quarter, the Secretary shall deduct the excess amount 
        from the subsequent quarters' payments until the total amount 
        has been deducted.'';
            (2) in subsection (d), by amending paragraph (1) to read as 
        follows:
            ``(1) Deduction from interest and special allowance 
        subsidies.--
                    ``(A) In general.--Notwithstanding subsection (b), 
                the Secretary shall collect a loan fee in an amount 
                determined in accordance with paragraph (2)--
                            ``(i) by reducing the total amount of 
                        interest and special allowance payable under 
                        section 428(a)(3)(A) and subsection (b), 
                        respectively, to any holder of a loan; or
                            ``(ii) directly from the holder of the 
                        loan, if the lender--
                                    ``(I) fails or is not required to 
                                bill the Secretary for interest and 
                                special allowance payments; or
                                    ``(II) withdraws from the program 
                                with unpaid loan fees.
                    ``(B) Special rule.--If the Secretary collects loan 
                fees under this subsection through the reduction of 
                interest and special allowance payments, and the total 
                amount of interest and special allowance payable under 
                section 428(a)(3)(A) and subsection (b), respectively, 
                is less than the amount of such loan fees, then the 
                Secretary shall deduct the amount of the loan fee 
                balance from the amount of interest and special 
                allowance payments that would otherwise be payable, in 
                subsequent quarterly increments until the balance has 
                been deducted.''; and
            (3) in subsection (e)--
                    (A) by striking paragraphs (1) and (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (1) and (2), respectively.
    (b) Conforming Amendment.--Section 432(f)(1)(D) is amended by 
striking ``required to file a plan for doing business under section 
438(d)'' and inserting ``that meets the requirements of section 
438(e)''.

SEC. 439. STUDY OF MARKET-BASED MECHANISMS FOR DETERMINING STUDENT LOAN 
              INTEREST RATES.

    (a) Study Required.--
            (1) In general.--The Secretary of the Treasury shall 
        conduct a study of the feasibility of employing market-based 
        mechanisms, including some form of auction, for determining 
        student loan interest rates under title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070 et seq.). The study shall 
        include--
                    (A) analysis of the potential impact of the 
                mechanisms on the delivery of student financial aid;
                    (B) analysis of the implications of the mechanisms 
                with respect to student and institutional access to 
                student loan capital;
                    (C) analysis of the potential impact of the 
                mechanisms on the costs of the programs under such 
                title for students and the Federal Government; and
                    (D) a plan for structuring and implementing the 
                mechanisms in such a manner that ensures the cost-
                effective availability of student loans for students 
                and their families.
    (b) Consultation.--In conducting the study described in paragraph 
(1), the Secretary shall consult with lenders, secondary markets, 
guaranty agencies, institutions of higher education, student loan 
borrowers, and other participants in the student loan programs under 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
    (c) Report to Congress.--The Secretary of the Treasury shall report 
to the Committee on Labor and Human Resources of the Senate, and the 
Committee on Education and the Workforce of the House of 
Representatives not later than September 30, 1999, regarding the 
results of the study described in subsection (a).

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY SERVICES.

    Section 441 (20 U.S.C. 2751) is amended--
            (1) in subsection (b), by striking ``$800,000,000 for 
        fiscal year 1993'' and inserting ``$900,000,000 for fiscal year 
        1999''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by inserting ``(including 
                child care services provided on campus)'' after ``child 
                care''; and
                    (B) in paragraph (3), by inserting ``, including 
                students with disabilities who are enrolled at the 
                institution'' before the semicolon.

SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

    Section 443(b) (20 U.S.C. 2753(b)) is amended--
            (1) in paragraph (1), by inserting ``, including 
        internships or research assistanceships as determined by the 
        Secretary,'' after ``part-time employment'';
            (2) by amending paragraph (3) to read as follows:
            ``(3) provide that in the selection of students for 
        employment under such work-study program, only students who 
        demonstrate financial need in accordance with part F of this 
        title and meet the requirements of section 484 will be 
        assisted, except that if the institution's grant under this 
        part is directly or indirectly based in part on the financial 
        need demonstrated by students who are (A) attending the 
        institution on less than a full-time basis, or (B) independent 
        students, a reasonable portion of the allocation shall be made 
        available to such students;'';
            (3) in paragraph (5)--
                    (A) by striking ``provide that'' and inserting 
                ``(A) provide that'';
                    (B) by striking ``1993-1994'' and inserting ``1999-
                2000'';
                    (C) by inserting ``and'' after the semicolon; and
                    (D) by adding at the end the following:
            ``(B) provide that the Federal share of the compensation of 
        students employed in community service shall not exceed 90 
        percent;''; and
            (4) in paragraph (6), by striking ``, and to make'' and all 
        that follows through ``such employment''.

SEC. 443. WORK COLLEGES.

    Section 448 (20 U.S.C. 2756b) is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (C), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (D)(ii), by striking the period 
                and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(E) coordinate and carry out joint projects and 
                activities to promote work service learning; and
                    ``(F) carry out a comprehensive, longitudinal study 
                of student academic progress and academic and career 
                outcomes, relative to student self-sufficiency in 
                financing their higher education, repayment of student 
                loans, continued community service, kind and quality of 
                service performed, and career choice and community 
                service selected after graduation.''; and
            (2) in subsection (f), by striking ``$5,000,000 for fiscal 
        year 1993'' and inserting ``$7,000,000 for fiscal year 1999''.

          PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

SEC. 451. SELECTION OF INSTITUTIONS.

    Section 453(c) (20 U.S.C. 1087c(c)) is amended--
            (1) in paragraph (2)--
                    (A) in the paragraph heading, by striking 
                ``Transition'';
                    (B) by striking subparagraph (E); and
                    (C) by redesignating subparagraphs (F), (G), and 
                (H) as subparagraphs (E), (F), and (G), respectively; 
                and
            (2) in paragraph (3)--
                    (A) in the paragraph heading, by striking ``After 
                transition''; and
                    (B) by striking ``For academic year 1995-1996 and 
                subsequent academic years, the'' and inserting ``The''.

SEC. 452. TERMS AND CONDITIONS.

    (a) Interest Rates.--Section 455(b) (20 U.S.C. 1087e(b)) is amended 
to read as follows:
    ``(b) Interest Rate.--
            ``(1) Rates for fdsl and fdusl.--For Federal Direct 
        Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/
        Ford Loans for which the first disbursement is made on or after 
        July 1, 1998, the applicable rate of interest shall, during any 
        12-month period beginning on July 1 and ending on June 30, be 
        determined on the preceding June 1 and be equal to--
                    ``(A) the bond equivalent rate of 91-day Treasury 
                bills auctioned at the final auction held prior to such 
                June 1; plus
                    ``(B) 2.3 percent,
        except that such rate shall not exceed 8.25 percent.
            ``(2) In school and grace period rules.--With respect to 
        any Federal Direct Stafford/Ford Loan or Federal Direct 
        Unsubsidized Stafford/Ford Loan for which the first 
        disbursement is made on or after July 1, 1998, the applicable 
        rate of interest for interest which accrues--
                    ``(A) prior to the beginning of the repayment 
                period of the loan; or
                    ``(B) during the period in which principal need not 
                be paid (whether or not such principal is in fact paid) 
                by reason of a provision described in section 
                428(b)(1)(M) or 427(a)(2)(C),
        shall be determined under paragraph (1) by substituting `1.7 
        percent' for `2.3 percent'.
            ``(3) PLUS loans.--With respect to Federal Direct PLUS Loan 
        for which the first disbursement is made on or after July 1, 
        1998, the applicable rate of interest shall be determined under 
        paragraph (1)--
                    ``(A) by substituting `3.1 percent' for `2.3 
                percent'; and
                    ``(B) by substituting `9.0 percent' for `8.25 
                percent'.
            ``(4) Publication.--The Secretary shall determine the 
        applicable rates of interest under this subsection after 
        consultation with the Secretary of the Treasury and shall 
        publish such rate in the Federal Register as soon as 
        practicable after the date of the determination.
            ``(5) Repayment incentives.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this part, the Secretary is authorized to 
                prescribe by regulation such reductions in the interest 
                rate paid by a borrower of a loan made under this part 
                as the Secretary determines appropriate to encourage 
                on-time repayment of the loan. Such reductions may be 
                offered only if the Secretary determines the reductions 
                are cost neutral and in the best financial interest of 
                the Federal Government. Any increase in subsidy costs 
                resulting from such reductions shall be completely 
                offset by corresponding savings in funds available for 
                the William D. Ford Federal Direct Loan Program in that 
                fiscal year from section 458 and other administrative 
                accounts.
                    ``(B) Accountability.--The Secretary shall ensure 
                the cost neutrality of such reductions by obtaining an 
                official report from the Director of the Office of 
                Management and Budget and the Director of the 
                Congressional Budget Office that any such reductions 
                will be completely cost neutral. The reports shall be 
                transmitted to the Committee on Labor and Human 
                Resources of the Senate and the Committee on Education 
                and the Workforce of the House of Representatives not 
                less than 60 days prior to the publication of 
                regulations proposing such reductions.''.
    (b) Effective date.--The amendments made by this section shall 
apply with respect to any loan made under part D of title IV of the 
Higher Education Act of 1965 for which the first disbursement is made 
on or after July 1, 1998.

SEC. 453. CONTRACTS.

    Section 456(b) (20 U.S.C. 1087f(b)) is amended--
            (1) in paragraph (3), by inserting ``and'' after the 
        semicolon;
            (2) by striking paragraph (4); and
            (3) by redesignating paragraph (5) as paragraph (4).

SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES.

    Section 458 (20 U.S.C. 1087h) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Administrative Expenses.--
            ``(1) In general.--Each fiscal year there shall be 
        available to the Secretary, from funds not otherwise 
        appropriated, funds to be obligated for--
                    ``(A) administrative costs under this part and part 
                B, including the costs of the direct student loan 
                programs under this part; and
                    ``(B) account maintenance fees payable to guaranty 
                agencies under part B and calculated in accordance with 
                paragraph (2), not to exceed (from such funds not 
                otherwise appropriated) $626,000,000 in fiscal year 
                1999, $726,000,000 in fiscal year 2000, $770,000,000 in 
                fiscal year 2001, $780,000,000 in fiscal year 2002, and 
                $795,000,000 in fiscal year 2003.
            ``(2) Account maintenance fees.--Account maintenance fees 
        under subparagraph (B) shall be paid quarterly and deposited in 
        the Agency Operating Fund established under section 422B.
            ``(3) Carryover.--The Secretary may carry over funds made 
        available under this section to a subsequent fiscal year.''; 
        and
            (2) by amending subsection (b) to read as follows:
    ``(b) Calculation Basis.--Account maintenance fees payable to 
guaranty agencies under paragraph (1)(B) shall be calculated--
            ``(1) for fiscal years 1999 and 2000, on the basis of 0.12 
        percent of the original principal amount of outstanding loans 
        on which insurance was issued under part B; and
            ``(2) for fiscal year 2001, 2002, and 2003, on the basis of 
        0.10 percent of the original principal amount of outstanding 
        loans on which insurance was issued under part B.''.

SEC. 455. LOAN CANCELLATION FOR TEACHERS.

    Part D of title IV (20 U.S.C. 1087a et seq.) is amended by adding 
at the end the following:

``SEC. 459. LOAN CANCELLATION FOR TEACHERS.

    ``(a) Statement of Purpose.--It is the purpose of this section to 
encourage individuals to enter and continue in the teaching profession.
    ``(b) Program Authorized.--The Secretary is authorized to carry out 
a program of canceling the obligation to repay a Federal Direct 
Stafford/Ford Loan made under this part that is eligible for an 
interest subsidy, for any new borrower on or after the date of 
enactment of the Higher Education Amendments of 1998, who--
            ``(1) has been employed as a full-time teacher for 3 
        consecutive complete school years--
                    ``(A) in a school that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins loan 
                recipients who teach in such schools;
                    ``(B) if employed as a secondary school teacher, is 
                teaching a subject area that is relevant to the 
                borrower's academic major as certified by the chief 
                administrative officer of the public or non-profit 
                private secondary school in which the borrower is 
                employed; and
                    ``(C) if employed as an elementary school teacher, 
                has demonstrated, in accordance with State teacher 
                certification or licensing requirements and as 
                certified by the chief administrative officer of the 
                public or nonprofit private elementary school in which 
                the borrower is employed, knowledge and teaching skills 
                in reading, writing, mathematics and other areas of the 
                elementary school curriculum; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(c) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(d) Loan Cancellation During Continuing Teaching Service.--
            ``(1) In general.--The Secretary shall cancel the 
        obligation to repay--
                    ``(A) 30 percent of the total outstanding amount 
                and applicable interest of subsidized Federal Direct 
                Stafford/Ford loans owed by the student borrower after 
                the completion of the fourth or fifth complete school 
                year of service described in subsection (b);
                    ``(B) 40 percent of such total amount after the 
                completion of the sixth complete school year of such 
                service; and
                    ``(C) a total amount for any borrower that shall 
                not exceed $ 10,000.
            ``(2) Construction.--Nothing in this section shall be 
        construed to authorize any refunding of any canceled loan.
    ``(e) List.--If the list of schools in which a teacher may perform 
service pursuant to subsection (b) is not available before May 1 of any 
year, the Secretary may use the list for the year preceding the year 
for which the determination is made to make such service determination.
    ``(f) Continued Eligibility.--Any teacher who performs service in a 
school that--
            ``(1) meets the requirements of subsection (b)(1)(A) in any 
        year during such service; and
            ``(2) in a subsequent year fails to meet the requirements 
        of such subsection, may continue to teach in such school and 
        shall be eligible for loan cancellation pursuant to subsection 
        (b).''.

                     PART E--FEDERAL PERKINS LOANS

SEC. 461. AUTHORIZATION OF APPROPRIATIONS.

    Subsection (b) of section 461 (20 U.S.C. 1087aa) is amended--
            (1) in paragraph (1), by striking ``1993'' and inserting 
        ``1999''; and
            (2) in paragraph (2), by striking ``1997'' each place the 
        term appears and inserting ``2003''.

SEC. 462. ALLOCATION OF FUNDS.

    (a) Amendments.--Section 462 (20 U.S.C. 1087bb) is amended--
            (1) in the matter preceding subparagraph (A) of subsection 
        (d)(3), by striking ``the Secretary, for'' and all that follows 
        through ``years,'';
            (2) by amending subsection (f) to read as follows:
    ``(f) Default Penalties.--
            ``(1) In general.--For fiscal year 1998 and any succeeding 
        fiscal year, any institution with a cohort default rate (as 
        defined under subsection (h)) that equals or exceeds 25 percent 
        shall have a default penalty of zero.
            ``(2) Ineligibility.--
                    ``(A) In general.--For fiscal year 1998 and any 
                succeeding fiscal year, any institution with a cohort 
                default rate (as defined in subsection (h)) that equals 
                or exceeds 50 percent for each of the 3 most recent 
                years for which data are available shall not be 
                eligible to participate in a program under this part 
                for the fiscal year for which the determination is made 
                and the 2 succeeding fiscal years, unless, within 30 
                days of receiving notification from the Secretary of 
                the loss of eligibility under this paragraph, the 
                institution appeals the loss of eligibility to the 
                Secretary. The Secretary shall issue a decision on any 
                such appeal within 45 days after the submission of the 
                appeal. Such decision may permit the institution to 
                continue to participate in a program under this part 
                if--
                            ``(i) the institution demonstrates to the 
                        satisfaction of the Secretary that the 
                        calculation of the institution's cohort default 
                        rate is not accurate, and that recalculation 
                        would reduce the institution's cohort default 
                        rate for any of the 3 fiscal years below 50 
                        percent; or
                            ``(ii) there are, in the judgment of the 
                        Secretary, exceptional mitigating circumstances 
                        such as a small number of borrowers entering 
                        repayment, that would make the application of 
                        this subparagraph inequitable.
                    ``(B) Continued participation.--During an appeal 
                under subparagraph (A), the Secretary may permit the 
                institution to continue to participate in a program 
                under this part.
                    ``(C) Definition.--For the purposes of subparagraph 
                (A), the term `loss of eligibility' shall be defined as 
                the mandatory liquidation of an institution's student 
                loan fund, and assignment of the institution's 
                outstanding loan portfolio to the Secretary.'';
            (3) by amending paragraph (1) of subsection (g) to read as 
        follows: ``(1) For award year 1998 and subsequent years, the 
        maximum cohort default rate is 25 percent.''; and
            (4) in subsection (h)--
                    (A) in the subsection heading, by striking 
                ``Definitions of Default Rate and'' and inserting 
                ``Definition of'';
                    (B) by striking paragraphs (1) and (2);
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (1) and (2), respectively;
                    (D) in paragraph (1) (as redesignated by 
                subparagraph (C))--
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating subparagraphs (C) 
                        through (G) as subparagraphs (B) through (F), 
                        respectively; and
                    (E) in the matter preceding subparagraph (A) of 
                paragraph (2) (as redesignated by subparagraph (C)), by 
                striking ``A loan'' and inserting ``For purposes of 
                calculating the cohort default rate under this 
                subsection, a loan''.
    (b) Conforming Amendments.--Section 462 (20 U.S.C. 1087bb) is 
amended--
            (1) in the matter following paragraphs (1)(B) and 
        (2)(D)(ii) of subsection (a), by inserting ``cohort'' before 
        ``default'' each place the term appears;
            (2) in the matter following paragraphs (2)(B) and (3)(C) of 
        subsection (c), by inserting ``cohort'' before ``default'' each 
        place the term appears;
            (3) in subsection (e)(2), by inserting ``cohort'' before 
        ``default''; and
            (4) in subsection (h)(1)(F) (as redesignated by 
        subparagraphs (C) and (D)(ii) of subsection (a)(4)), by 
        inserting ``cohort'' before ``default''.

SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.

    Section 463 (20 U.S.C. 1087cc) is amended--
            (1) by amending subparagraph (B) of subsection (a)(2) to 
        read as follows:
                    ``(B) a capital contribution by an institution in 
                an amount equal to one-third of the Federal capital 
                contributions described in subparagraph (A);'';
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``by the Secretary'' and all 
                        that follows through ``of--'' and inserting 
                        ``by the Secretary or an institution, as the 
                        case may be, to such organizations, with 
                        respect to any loan held by the Secretary or 
                        the institution, respectively, of--'';
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) the date of disbursement and the amount of 
                such loans made to any borrower under this part at the 
                time of disbursement of the loan;'';
                            (iii) in subparagraph (B)--
                                    (I) by inserting ``the repayment 
                                and'' after ``concerning''; and
                                    (II) by striking ``any defaulted'' 
                                and inserting ``such''; and
                            (iv) in subparagraph (C), by inserting ``, 
                        or upon cancellation or discharge of the 
                        borrower's obligation on the loan for any 
                        reason'' before the period;
                    (B) in paragraph (3)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``until--'' and inserting 
                        ``until the loan is paid in full.''; and
                            (ii) by striking subparagraphs (A) and (B); 
                        and
                    (C) by amending paragraph (4) to read as follows:
            ``(4)(A) Except as provided in subparagraph (B), an 
        institution of higher education, after consultation with the 
        Secretary and pursuant to the agreements entered into under 
        paragraph (1), shall disclose at least annually to any credit 
        bureau organization with which the Secretary has such an 
        agreement the information set forth in paragraph (2), and shall 
        disclose promptly to such credit bureau organization any 
        changes to the information previously disclosed.
            ``(B) The Secretary may promulgate regulations establishing 
        criteria under which an institution of higher education may 
        cease reporting the information described in paragraph (2) 
        before a loan is paid in full.''.

SEC. 464. TERMS OF LOANS.

    Section 464 (20 U.S.C. 1087dd) is amended--
            (1) in subsection (a), by amending paragraph (2) to read as 
        follows:
            ``(2)(A) Except as provided in paragraph (4), the total of 
        loans made to a student in any academic year or its equivalent 
        by an institution of higher education from a loan fund 
        established pursuant to an agreement under this part shall not 
        exceed--
                    ``(i) $4,000, in the case of a student who has not 
                successfully completed a program of undergraduate 
                education; or
                    ``(ii) $6,000, in the case of a graduate or 
                professional student (as defined in regulations issued 
                by the Secretary).
            ``(B) Except as provided in paragraph (4), the aggregate of 
        the loans for all years made to a student by institutions of 
        higher education from loan funds established pursuant to 
        agreements under this part may not exceed--
                    ``(i) $40,000, in the case of any graduate or 
                professional student (as defined by regulations issued 
                by the Secretary, and including any loans from such 
                funds made to such person before such person became a 
                graduate or professional student);
                    ``(ii) $20,000, in the case of a student who has 
                successfully completed 2 years of a program of 
                education leading to a bachelor's degree but who has 
                not completed the work necessary for such a degree 
                (determined under regulations issued by the Secretary, 
                and including any loans from such funds made to such 
                person before such person became such a student); and
                    ``(iii) $8,000, in the case of any other student.
            ``(C)(i) The total of loans made to a student described in 
        clause (ii) in any academic year or its equivalent by an 
        institution of higher education from loan funds established 
        pursuant to agreements under this part may not exceed--
                    ``(I) $8,000 for each of the third and fourth years 
                of the program of instruction leading to a bachelor's 
                degree; or
                    ``(II) $10,000 for the first year of graduate study 
                (as defined in regulations issued by the Secretary).
            ``(ii) A student referred to in clause (i) is any student--
                    ``(I) who is a junior in a program of instruction 
                leading to a bachelor's degree;
                    ``(II) who states in writing that the student will 
                pursue a course of study to become an elementary or 
                secondary school teacher; and
                    ``(III) who states in writing that the student 
                intends to become a full-time teacher in a school which 
                meets the requirements of section 465(a)(2)(A).
            ``(iii) Each institution shall provide a report to the 
        Secretary annually containing the number of loans under this 
        subparagraph that are made, the amount of each loan, and 
        whether students benefiting from the higher loan limits met the 
        requirements for receiving those loans.
            ``(iv) If 3 years after the date of enactment of the Higher 
        Education Amendments of 1998, the Secretary determines that an 
        institution has engaged in a pattern of abuse of this 
        subparagraph, the Secretary may reduce or terminate the 
        institution's Federal capital contribution.'';
            (2) in subsection (b), by amending paragraph (2) to read as 
        follows:
            ``(2) If the institution's capital contribution under 
        section 462 is directly or indirectly based in part on the 
        financial need demonstrated by students who are (A) attending 
        the institution less than full time; or (B) independent 
        students, a reasonable portion of the loans made from the 
        institution's student loan fund containing the contribution 
        shall be made available to such students.'';
            (3) in subsection (c)(1)--
                    (A) in subparagraph (D), by striking ``(i) 3 
                percent'' and all that follows through ``or (iii)'';
                    (B) by redesignating subparagraphs (H) and (I) as 
                subparagraphs (I) and (J), respectively; and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) shall provide that, in the case of a loan 
                made on or after July 1, 1999, the loan shall be 
                considered in default (except as otherwise provided in 
                section 462(h)) if the borrower of a loan made under 
                this part fails to make an installment payment when 
                due, or to meet any other term of the promissory note 
                or written repayment agreement, and such failure 
                persists for--
                            ``(i) 180 days in the case of a loan that 
                        is repayable in monthly installments; or
                            ``(ii) 240 days in the case of a loan that 
                        is repayable in less frequent installments;''; 
                        and
            (4) by adding at the end the following:
    ``(g) Discharge.--
            ``(1) In general.--If a student borrower who received a 
        loan made under this part on or after January 1, 1986, is 
        unable to complete the program in which such student is 
        enrolled due to the closure of the institution, then the 
        Secretary shall discharge the borrower's liability on the loan 
        (including the interest and collection fees) by repaying the 
        amount owed on the loan and shall subsequently pursue any claim 
available to such borrower against the institution and the 
institution's affiliates and principals, or settle the loan obligation 
pursuant to the financial responsibility standards described in section 
498(c).
            ``(2) Assignment.--A borrower whose loan has been 
        discharged pursuant to this subsection shall be deemed to have 
        assigned to the United States the right to a loan refund in an 
        amount that does not exceed the amount discharged against the 
        institution and the institution's affiliates and principals.
            ``(3) Eligibility for additional assistance.--The period 
        during which a student was unable to complete a course of study 
        due to the closing of the institution shall not be considered 
        for purposes of calculating the student's period of eligibility 
        for additional assistance under this title.
            ``(4) Special rule.--A borrower whose loan has been 
        discharged pursuant to this subsection shall not be precluded, 
        because of that discharge, from receiving additional grant, 
        loan, or work assistance under this title for which the 
        borrower would be otherwise eligible (but for the default on 
        the discharged loan). The amount discharged under this 
        subsection shall not be considered income for purposes of the 
        Internal Revenue Code of 1986.
            ``(5) Reporting.--The Secretary or institution, as the case 
        may be, shall report to credit bureaus with respect to loans 
        that have been discharged pursuant to this subsection.
    ``(h) Rehabilitation of Loans.--
            ``(1) Rehabilitation.--
                    ``(A) In general.--If the borrower of a loan made 
                under this part who has defaulted on the loan makes 12 
                ontime, consecutive, monthly payments of amounts owed 
                on the loan, as determined by the institution, the loan 
                shall be considered rehabilitated, and the institution 
                that made that loan (or the Secretary, in the case of a 
                loan held by the Secretary) shall instruct any credit 
                bureau organization or credit reporting agency to which 
                the default was reported to remove the default from the 
                borrower's credit history.
                    ``(B) Comparable conditions.--As long as the 
                borrower continues to make scheduled repayments on a 
                loan rehabilitated under this paragraph, the 
                rehabilitated loan shall be subject to the same terms 
                and conditions, and qualify for the same benefits and 
                privileges, as other loans made under this part.
                    ``(C) Additional assistance.--The borrower of a 
                rehabilitated loan shall not be precluded by section 
                484 from receiving additional grant, loan, or work 
                assistance under this title (for which the borrower is 
                otherwise eligible) on the basis of defaulting on the 
                loan prior to such rehabilitation.
                    ``(D) Limitations.--A borrower only once may obtain 
                the benefit of this paragraph with respect to 
                rehabilitating a loan under this part.
            ``(2) Restoration of eligibility.--If the borrower of a 
        loan made under this part who has defaulted on that loan makes 
        6 ontime, consecutive, monthly payments of amounts owed on such 
        loan, the borrower's eligibility for grant, loan, or work 
        assistance under this title shall be restored. A borrower only 
        once may obtain the benefit of this paragraph with respect to 
        restored eligibility.
    ``(i) Incentive Repayment Program.--
            ``(1) In general.--Each institution of higher education may 
        establish, with the approval of the Secretary, an incentive 
        repayment program designed to reduce default and to replenish 
        student loan funds established under this part. Each such 
        incentive repayment program may--
                    ``(A) offer a reduction of the interest rate on a 
                loan on which the borrower has made 48 ontime, 
                consecutive, monthly repayments, but in no event may 
                the rate be reduced by more than 1 percent;
                    ``(B) provide for a discount on the balance owed on 
                a loan on which the borrower pays the principal and 
                interest in full prior to the end of the applicable 
                repayment period, but in no event may the discount 
                exceed 5 percent of the unpaid principal balance due on 
                the loan at the time the early repayment is made; and
                    ``(C) include such other incentive repayment 
                options as the institution determines will carry out 
                the objectives of this subsection.
            ``(2) Limitation.--No incentive repayment option under an 
        incentive repayment program authorized by this subsection may 
        be paid for with Federal funds, including any Federal funds 
        from the student loan fund, nor can an incentive repayment 
        option be paid for with institutional funds from the student 
        loan fund.''.

SEC. 465. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.

    Section 466 (20 U.S.C. 1087ff) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``1996'' and inserting 
                        ``2003''; and
                            (ii) by striking ``1997'' and inserting 
                        ``2004''; and
                    (B) in paragraph (1), by striking ``1996'' and 
                inserting ``2003'';
            (2) in subsection (b)--
                    (A) by striking ``2005'' and inserting ``2012''; 
                and
                    (B) by striking ``1996'' and inserting ``2003''; 
                and
            (3) in subsection (c), by striking ``1997'' and inserting 
        ``2004''.

SEC. 466. PERKINS LOAN REVOLVING FUND.

    (a) Repeal.--Subsection (c) of section 467 (20 U.S.C. 1087gg(c)) is 
repealed.
    (b) Transfer of balance.--Any funds in the Perkins Loan Revolving 
Fund on the date of enactment of this Act shall be transferred to and 
deposited in the Treasury.

                         PART F--NEED ANALYSIS

SEC. 471. COST OF ATTENDANCE.

    Section 472 (20 U.S.C. 1087ll) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``of not less 
                than $1,500'' and inserting ``determined by the 
                institution''; and
                    (B) in subparagraph (C), by striking ``, except 
                that the amount may not be less than $2,500''; and
            (2) in paragraph (11), by striking ``placed'' and inserting 
        ``engaged''.

SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.

    Section 475 (20 U.S.C. 1087oo) is amended--
            (1) in subsection (g)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (D)--
                                    (I) by striking ``$1,750'' and 
                                inserting ``$2,200''; and
                                    (II) by striking ``and'' after the 
                                semicolon;
                            (ii) in subparagraph (E), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(F) an allowance for parents' negative available 
                income, determined in accordance with paragraph (6).''; 
                and
                    (B) by adding at the end the following:
            ``(6) Allowance for parents' negative available income.--
        The allowance for parents' negative available income is the 
        amount, if any, by which the sum of the amounts deducted under 
        subparagraphs (A) through (F) of paragraph (1) exceeds the 
        parents' total income (as defined in section 480).''; and
            (2) by adding at the end the following:
    ``(j) Adjustments to Students Contribution for Enrollment Periods 
of Less Than Nine Months.--For periods of enrollment of less than 9 
months, the student's contribution from adjusted available income (as 
determined under subsection (g)) is determined, for purposes other than 
subpart 2 of part A, by dividing the amount determined under such 
subsection by 9, and multiplying the result by the number of months in 
the period of enrollment.''.

SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT 
              DEPENDENTS OTHER THAN A SPOUSE.

    Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is 
amended--
            (1) in subclause (I), by striking ``$3,000'' and inserting 
        ``$4,250'';
            (2) in subclause (II), by striking ``$3,000'' and inserting 
        ``$4,250''; and
            (3) in subclause (III), by striking ``$6,000'' and 
        inserting ``$7,250''.

SEC. 474. REGULATIONS; UPDATED TABLES AND AMOUNTS.

    Section 478(b) (20 U.S.C. 1087rr(b)) is amended--
            (1) by striking ``For each academic year'' and inserting 
        the following:
            ``(1) Revised tables.--For each academic year''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Revised amounts.--For each academic year after 
        academic year 1999-2000, the Secretary shall publish in the 
        Federal Register revised income protection allowances for the 
        purpose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). Such 
        revised allowances shall be developed by increasing each of the 
        dollar amounts contained in such section by a percentage equal 
        to the estimated percentage increase in the Consumer Price 
        Index (as determined by the Secretary) between December 1998 
        and the December next preceding the beginning of such academic 
        year, and rounding the result to the nearest $10.''.

SEC. 475. REFUSAL OR ADJUSTMENT OF LOAN CERTIFICATIONS.

    Subsection (c) of section 479A (20 U.S.C. 1087tt) is amended to 
read as follows:
    ``(c) Refusal or Adjustment of Loan Certifications.--An eligible 
institution may refuse to certify a statement that permits a student to 
receive a loan under part B, or refuse to make a loan under part D, or 
may certify a loan amount or make a loan that is less than the 
student's determination of need (as determined under this part), if the 
reason for the action is documented and provided in written form to the 
student. No eligible institution shall discriminate against any 
borrower or applicant in obtaining a loan on the basis of race, 
national origin, religion, sex, marital status, age, or disability 
status.''.

                       PART G--GENERAL PROVISIONS

SEC. 481. MASTER CALENDAR.

    Section 482 (20 U.S.C. 1089) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(3) To the extent feasible, the Secretary shall notify 
        eligible institutions and vendors by December 1 prior to the 
        start of an award year of minimal hardware and software 
        requirements necessary to administer programs under this 
        title.''; and
            (2) by amending subsection (c) to read as follows:
    ``(c) Delay of Effective Date of Late Publications.--(1) Except as 
provided in paragraph (2), any regulatory changes initiated by the 
Secretary affecting the programs under this title that have not been 
published in final form by November 1 prior to the start of the award 
year shall not become effective until the beginning of the second award 
year after such November 1 date.
    ``(2)(A) The Secretary may designate any regulatory provision that 
affects the programs under this title and is published in final form 
after November 1 as one that an entity subject to the provision may, in 
the entity's discretion, choose to implement prior to the effective 
date described in paragraph (1). The Secretary may specify in the 
designation when, and under what conditions, an entity may implement 
the provision prior to that effective date. The Secretary shall publish 
any designation under this subparagraph in the Federal Register.
    ``(B) If an entity chooses to implement a regulatory provision 
prior to the effective date described in paragraph (1), as permitted by 
subparagraph (A), the provision shall be effective with respect to that 
entity in accordance with the terms of the Secretary's designation.''.

SEC. 482. FORMS AND REGULATIONS.

    Section 483 (20 U.S.C. 1090) is amended--
            (1) in subsection (a)--
                    (A) in the subsection heading, by striking ``Form'' 
                and inserting ``Form Development'';
                    (B) by amending paragraph (1) to read as follows:
            ``(1) Single form requirements.--The Secretary, in 
        cooperation with representatives of agencies and organizations 
        involved in student financial assistance, shall produce, 
        distribute, and process free of charge a common financial 
        reporting form (which shall include electronic versions of the 
        form) to be used--
                    ``(A) to determine the need (including the expected 
                family contribution and, if appropriate, cost of 
                attendance) and eligibility of a student for financial 
                assistance under parts A, C, D, and E; and
                    ``(B) to determine the need (including the expected 
                family contribution and cost of attendance) of a 
                student for the purposes of part B.
            ``(2) State data items.--The Secretary shall include on the 
        form developed under this subsection such data items, selected 
        in consultation with the States to assist the States in 
        awarding State student financial assistance, as the Secretary 
        determines are appropriate for inclusion.
            ``(3) Parent's social security number.--The Secretary shall 
        include on the form developed under this paragraph space for 
        the social security number of parents of dependent students 
        seeking financial assistance under this title.
            ``(4) Use.--The Secretary shall require that the form 
        developed under this paragraph be used for the purpose of 
        collecting eligibility and other data for purposes of part B, 
        including the applicant's choice of lender.''; and
                    (C) in paragraph (3)--
                            (i) by striking ``Institutions of higher 
                        education and States shall receive'' and 
                        inserting ``The Secretary shall provide''; and
                            (ii) by striking ``by the Secretary''; and
            (2) by adding at the end the following:
    ``(g) Payment for Data.--The Secretary may pay such charges as the 
Secretary determines are necessary to obtain data that the Secretary 
considers essential to the efficient administration of the programs 
under this title.
    ``(h) Multiyear Promissory Note.--The Secretary shall require, for 
loans made under this title for periods of enrollment beginning on or 
after July 1, 2000, the use of a promissory note applicable to more 
than 1 academic year, or more than 1 type of loan made under this 
title. Prior to implementing this subsection, the Secretary shall 
develop and test such a promissory note on a limited or pilot basis.''.

SEC. 483. STUDENT ELIGIBILITY.

    (a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
            (1) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``either''; and
                    (B) by adding at the end the following:
            ``(3) The student has completed a high school education in 
        a home school setting and has met any State requirements with 
        respect to such education in a home school setting.''; and
            (2) by adding at the end the following:
    ``(q) Verification of IRS Return Information.--The Secretary shall 
verify the information reported by all applicants for assistance on the 
form prescribed under section 483 with the return information (as 
defined in section 6103 of the Internal Revenue Code of 1986) available 
to the Secretary of the Treasury. Notwithstanding section 6103 of such 
Code the Secretary of the Treasury shall provide the return information 
to the Secretary. In the case of a dependent student the return 
information shall include the return information of the parent of the 
student. The form prescribed by the Secretary under section 483 shall 
contain a prominent notice of the verification of the information and a 
warning to all the applicants of the penalties for misrepresentation, 
with respect to the information, under the United States Code.
    ``(r) Suspension of Eligibility for Drug-Related Offenses.--
            ``(1) In general.--A student who has been convicted of any 
        offense under any Federal or State law involving the possession 
        or sale of a controlled substance shall not be eligible to 
        receive any grant, loan, or work assistance under this title 
        during the period beginning on the date of such conviction and 
        ending after the interval specified in the following table:
``If convicted of an offense involving:

    The possession of a con-
                                          
      trolled substance:
                                        Ineligibility period is:
        First offense..............
                                            1 year 
        Second offense.............
                                            2 years 
        Third offense..............
                                            Indefinite.

    The sale of a controlled
                                          
      substance:
                                        Ineligibility period is:
        First offense..............
                                            2 years 
        Second offense.............
                                            Indefinite.
            ``(2) Rehabilitation.--A student whose eligibility has been 
        suspended under paragraph (1) may resume eligibility before the 
        end of the ineligibility period determined under such paragraph 
        if the student satisfactorily completes a drug rehabilitation 
        program that complies with such criteria as the Secretary shall 
        prescribe in regulations for purposes of this paragraph.
            ``(3) Definitions.--In this subsection, the term 
        `controlled substance' has the meaning given the term in 
        section 102(6) of the Controlled Substances Act (21 U.S.C. 
        802(6)).''.
    (b) Effective Date.--The amendment made by subsection (a)(2) 
regarding suspension of eligibility for drug-related offenses, shall 
apply with respect to financial assistance to cover the costs of 
attendance for periods of enrollment beginning after the date of 
enactment of this Act.

SEC. 484. INSTITUTIONAL REFUNDS.

    Section 484B (20 U.S.C. 1091b) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by inserting ``or'' after the 
                semicolon;
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2); and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``last day of 
                attendance by the student'' and inserting ``day the 
                student withdrew'';
                    (B) in subparagraph (A) of paragraph (2), by 
                striking ``last recorded day of attendance by the 
                student'' and inserting ``day the student withdrew''; 
                and
                    (C) by adding at the end the following:
            ``(3) For the purpose of this section, the term `day a 
        student withdrew'--
                    ``(A) is the date that was the last recorded day of 
                attendance by the student; or
                    ``(B) in instances where attendance is not 
                recorded, is the date on which--
                            ``(i) the student began the withdrawal 
                        process prescribed by the institution; or
                            ``(ii) the student otherwise provided 
                        notification to the institution of the intent 
                        to withdraw.''.

SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
              STUDENTS.

    (a) Information Dissemination Activities.--Section 485(a) (20 
U.S.C. 1092(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the second sentence, by striking ``and 
                mailings, to all current'' and inserting ``, mailings, 
                and electronic media, to all enrolled'';
                    (B) by inserting after the second sentence the 
                following: ``Each eligible institution annually shall 
                provide to all students enrolled at the institution, a 
                list of the information that is required by this 
                section, together with a statement of the procedures 
                required to obtain the information.'';
                    (C) in subparagraph (M)(ii), by striking ``and'' 
                after the semicolon;
                    (D) in subparagraph (N), by striking the period and 
                inserting ``; and''; and
                    (E) by adding at the end the following:
                    ``(O) the requirements and procedures for student 
                withdrawal prior to the end of a period of enrollment 
                and the consequences to the student, with respect to 
                receipt of a refund, of the student's failing to 
                provide notification of withdrawal.'';
            (2) in paragraph (2), by inserting ``an application for'' 
        after ``concerning''; and
            (3) in paragraph (3), by amending subparagraph (A) to read 
        as follows:
                    ``(A) shall be made available by July 1 each year 
                to current and prospective students prior to enrolling 
                or entering into any financial obligation; and''.
    (b) Exit Counseling for Borrowers.--Section 485(b) (20 U.S.C. 
1092(b)) is amended--
            (1) in paragraph (1)(A), by striking ``(individually or in 
        groups)''; and
            (2) in paragraph (2), by adding at the end the following:
    ``(C) Nothing in this subsection shall be construed to prohibit an 
institution of higher education from utilizing electronic means to 
provide personalized exit counseling.''.
    (c) Disclosures Required With Respect to Athletically Related 
Student Aid.--Section 485(e) (20 U.S.C. 1092(e)) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) When an institution described in paragraph (1) offers 
        a potential student athlete athletically related student aid, 
        such institution shall provide to the student, the student's 
        parents, the student's guidance counselor, and the student's 
        coach the information contained in the report submitted by such 
        institution pursuant to paragraph (1). If the institution is a 
        member of a national collegiate athletic association that 
        compiles graduation rate data on behalf of its member 
        institutions, that the Secretary determines is substantially 
        comparable to the information described in the previous 
        sentence, the distribution of the compilation to all secondary 
        schools shall fulfill the responsibility of the institution to 
        provide the information to a prospective student athlete's 
        guidance counselor and coach.''; and
            (2) by amending paragraph (9) to read as follows:
            ``(9) The reports required by this subsection shall be due 
        each July 1 and shall cover the 1-year period ending August 31 
        of the preceding year.''.
    (d) Disclosure of Campus Security Policy and Campus Crime 
Statistics.--Section 485(f) (20 U.S.C. 1092(f)) is amended--
            (1) by amending subparagraph (F) of paragraph (1) to read 
        as follows:
                    ``(F) Statistics concerning the occurrence on 
                campus, during the most recent calendar year, and 
                during the 2 preceding calendar years for which data 
                are available--
                            ``(i) of the following criminal offenses 
                        reported to campus security authorities or 
                        local police agencies--
                                    ``(I) homicide, including murder or 
                                nonnegligent manslaughter or negligent 
                                manslaughter;
                                    ``(II) sex offenses, forcible or 
                                nonforcible;
                                    ``(III) robbery;
                                    ``(IV) aggravated assault;
                                    ``(V) burglary;
                                    ``(VI) motor vehicle theft; and
                                    ``(VII) arson;
                            ``(ii) of the crimes described in 
                        subclauses (I) through (VII), and vandalism and 
                        simple assault, that manifest evidence of 
                        prejudice based on actual or perceived race, 
                        gender, religion, sexual orientation, 
                        ethnicity, or disability that are reported to 
                        campus security authorities or local police 
                        agencies, which data shall be collected and 
                        reported according to category of prejudice.'';
            (2) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;
            (3) by inserting after paragraph (3) the following:
            ``(4)(A) Each institution participating in any program 
        under this title which maintains either a police or security 
        department of any kind shall make, keep, and maintain a daily 
        log, written in a form that can be easily understood, recording 
        all crimes reported to such police or security department, 
        including--
                    ``(i) the nature, date, time, and general location 
                of each crime; and
                    ``(ii) the disposition of the complaint, if known.
            ``(B)(i) All entries that are required pursuant to this 
        paragraph shall, except where disclosure of such information is 
        prohibited by law or such disclosure would jeopardize the 
        confidentiality of the victim, be open to public inspection 
        within 2 business days of the initial report being made to the 
        department or a campus security authority.
            ``(ii) If new information about an entry into a log becomes 
        available to a police or security department, then the new 
        information shall be recorded in the log not later than 2 
business days after the information becomes available to the police or 
security department.
            ``(iii) Where there is clear and convincing evidence that 
        the release of such information would jeopardize an ongoing 
        criminal investigation or the safety of an individual, cause a 
        suspect to flee or evade detection, or result in the 
        destruction of evidence, such information may be withheld until 
        that damage is no longer likely to occur from the release of 
        such information.
            ``(iv) Notwithstanding clause (iii), an institution of 
        higher education shall record all criminal incidents occurring 
        on campus and shall make the reports open to public inspection 
        not later than 2 business days after the requirements of clause 
        (iii) are met.'';
            (4) in paragraph (7) (as redesignated by subparagraph (B)), 
        by inserting at the end the following: ``Such statistics shall 
        not identify victims of crimes or persons accused of crimes, 
        except as permitted by State or local law.''; and
            (5) by adding at the end the following:
            ``(9) Study.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Attorney General, shall provide for a national 
                study to examine procedures undertaken after an 
                institution of higher education receives a report of 
                sexual assault.
                    ``(B) Report.--The study required by subparagraph 
                (A) shall include an analysis of--
                            ``(i) the existence and publication of the 
                        institution of higher education's and State's 
                        definition of sexual assault;
                            ``(ii) the existence and publication of the 
                        institution's policy for campus sexual 
                        assaults;
                            ``(iii) the individuals to whom reports of 
                        sexual assault are given most often and--
                                    ``(I) how the individuals are 
                                trained to respond to the reports; and
                                    ``(II) the extent to which the 
                                individuals are trained;
                            ``(iv) the reporting options that are 
                        articulated to the victim or victims of the 
                        sexual assault regarding--
                                    ``(I) on-campus reporting and 
                                procedure options; and
                                    ``(II) off-campus reporting and 
                                procedure options;
                            ``(v) the resources available for victims' 
                        safety, support, medical health, and 
                        confidentiality, including--
                                    ``(I) how well the resources are 
                                articulated both specifically to the 
                                victim of sexual assault and generally 
                                to the campus at large; and
                                    ``(II) the security of the 
                                resources in terms of confidentiality 
                                or reputation;
                            ``(vi) policies and practices that may 
                        prevent or discourage the reporting of campus 
                        sexual assaults to local crime authorities, or 
                        that may otherwise obstruct justice or 
                        interfere with the prosecution of perpetrators 
                        of campus sexual assaults;
                            ``(vii) policies and practices found 
                        successful in aiding the report and any ensuing 
                        investigation or prosecution of a campus sexual 
                        assault;
                            ``(viii) the on-campus procedures for 
                        investigation and disciplining the perpetrator 
                        of a sexual assault, including--
                                    ``(I) the format for collecting 
                                evidence; and
                                    ``(II) the format of the 
                                investigation and disciplinary 
                                proceeding, including the faculty 
                                responsible for running the 
                                disciplinary procedure and the persons 
                                allowed to attend the disciplinary 
                                procedure; and
                            ``(ix) types of punishment for offenders, 
                        including--
                                    ``(I) whether the case is directed 
                                outside for further punishment; and
                                    ``(II) how the institution punishes 
                                perpetrators.
                    ``(C) Submission of report.--The report required by 
                subparagraph (B) shall be submitted to Congress not 
                later than September 1, 1999.
                    ``(D) Definition.--For purposes of this section, 
                the term `campus sexual assaults' means sexual assaults 
                occurring at institutions of higher education and 
                sexual assaults committed against or by students or 
                employees of such institutions.
                    ``(E) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this section 
                $1,000,000 for fiscal year 1999.''.
    (e) Data Required.--Section 485(g) (20 U.S.C. 1092(g)) is amended--
            (1) in paragraph (1), by adding at the end the following:
                    ``(I)(i) The total revenues, and the revenues from 
                football, men's basketball, women's basketball, all 
                other men's sports combined, and all other women's 
                sports combined, derived by the institution from the 
                institution's intercollegiate athletics activities.
                    ``(ii) For the purpose of clause (i) revenues from 
                intercollegiate athletics activities allocable to a 
                sport shall include, without limitation, gate receipts, 
                broadcast revenues, appearance guarantees and options, 
                concessions and advertising, except that revenues such 
                as student activities fees or alumni contributions not 
                so allocable shall be included in the calculation of 
                total revenues only.
                    ``(J)(i) The total expenses, and the expenses 
                attributable to football, men's basketball, women's 
                basketball, all other men's sports combined and all 
                other women's sports combined, made by the institution 
                for the institution's intercollegiate athletics 
                activities.
                    ``(ii) For the purpose of clause (i) expenses for 
                intercollegiate athletics activities allocable to a 
                sport shall include without limitation grants-in-aid, 
                salaries, travel, equipment, and supplies, except that 
                expenses such as general and administrative overhead 
                not so allocable shall be included in the calculation 
                of total expenses only.
                    ``(K) A statement of any reduction that will, or is 
                likely to, occur during the ensuing 4 academic years in 
                the number of athletes that will be permitted to 
                participate in any collegiate sport, or in the 
                financial resources that the institution will make 
                available for any such sport, and the reasons for any 
                such reduction, to the
                extent the reduction is known.'';
            (2) by striking paragraph (5);
            (3) by redesignating paragraph (4) as paragraph (5); and
            (4) by inserting after paragraph (3) the following:
            ``(4) Submission; report; information availability.--(A) 
        Each institution of higher education described in paragraph (1) 
        shall provide to the Secretary, within 15 days of the date that 
        the institution makes available the report under paragraph (1), 
        the information contained in the report.
            ``(B) The Secretary shall prepare a report regarding the 
        information received under subparagraph (A) for each year by 
        April 1 of the year. The report shall--
                    ``(i) summarize the information and identify trends 
                in the information;
                    ``(ii) aggregate the information by divisions of 
                the National Collegiate Athletic Association; and
                    ``(iii) contain information on each individual 
                institution of higher education.
            ``(C) The Secretary shall ensure that the report described 
        in subparagraph (B) is made available on the Internet within a 
        reasonable period of time.
            ``(D) The Secretary shall notify, not later than 180 days 
        after the date of enactment of the Higher Education Amendments 
        of 1998, all secondary schools in all States regarding the 
        availability of the information reported under subparagraph (B) 
        and the information made available under paragraph (1), and how 
        such information may be accessed.''.
    (f) GEPA Amendment.--Section 444(a)(4)(B) of the General Education 
Provisions Act (20 U.S.C. 1232g(a)(4)(B)) is amended--
            (1) by redesignating clauses (iii) and (iv) as clauses (iv) 
        and (v), respectively; and
            (2) by inserting after clause (ii) the following:
                            ``(iii) records that are maintained by 
                        local police or campus security officers of an 
                        educational agency or institution about--
                                    ``(I) individuals who have been 
                                found guilty of, or have pled guilty 
                                to, committing or participating in any 
                                criminal activity as defined in 
                                Federal, State, or local law that has 
                                occurred while the individual was a 
                                student in attendance, including audit 
                                or noncredit, at an educational 
                                institution; and
                                    ``(II) findings of guilt of 
                                criminal misconduct and related 
                                sanctions from any previously attended 
                                educational agencies or institutions 
                                where such records were created on or 
                                after September 1, 1999, and that are 
                                maintained by the institution currently 
                                or most recently attended by the 
                                individual;''.

SEC. 486. NATIONAL STUDENT LOAN DATA BANK SYSTEM.

    Section 485B (20 U.S.C. 1092b) is amended by adding at the end the 
following:
    ``(h) Student Status Confirmation Report.--In order to reduce 
unnecessary paperwork and to increase the efficient administration, the 
Secretary shall assure that borrowers under part E are included in the 
Student Status Confirmation Report in the same manner as borrowers 
under parts B and D.''.

SEC. 487. TRAINING IN FINANCIAL AID SERVICES.

    Section 486 (20 U.S.C. 1093) is amended to read as follows:

``SEC. 486. INFORMATION ON THE COSTS OF HIGHER EDUCATION.

    ``(a) In General.--For the purpose of providing comparative 
information to families about the costs of higher education--
            ``(1) the National Center for Education Statistics shall--
                    ``(A) develop a standard definition for the 
                following data elements:
                            ``(i) Tuition and fees.
                            ``(ii) Total cost of attendance, including 
                        costs such as housing, books, supplies, and 
                        transportation.
                            ``(iii) Average amount of financial 
                        assistance received by a student who attends an 
                        institution of higher education, in terms of 
                        the following:
                                    ``(I) Grants and loans.
                                    ``(II) Institutional and other 
                                assistance.
                            ``(iv) Percentage of students receiving 
                        student financial assistance, in terms of the 
                        following:
                                    ``(I) Grants and loans.
                                    ``(II) Institutional and other 
                                assistance;
                    ``(B) report the definitions to each institution of 
                higher education and the Committee on Labor and Human 
                Resources of the Senate and the Committee on Education 
                and the Workforce of the House of Representatives not 
                later than 90 days after the date of enactment of the 
                Higher Education Amendments of 1998;
                    ``(C) collect information regarding the data 
                elements described in subparagraph (A) with respect to 
                all institutions of higher education, and make 
                available the information each year in a timely fashion 
                through the integrated postsecondary education data 
                system, beginning with the information from the 1999-
                2000 academic year;
                    ``(D) provide the public notice when the 
                information described in subparagraph (C) is available 
                for public inspection; and
                    ``(E) publish in a timely fashion a report after 
                the third year of collection of the information 
                described in subparagraph (C) that compares the 
                information described in subparagraph (C) 
                longitudinally by institution, which information shall 
                be presented in a form that is easily understandable, 
                including clear definitions of the data elements 
                described in subparagraph (A), to allow parents and 
                students to make informed decisions about attending 
                college; and
            ``(2) institutions of higher education shall provide 
        information regarding each data element described in paragraph 
        (1)(A) to the National Center for Education Statistics by March 
        1 of each year, beginning in the year 2000.
    ``(b) Study.--
            ``(1) In general.--In consultation with the Bureau of Labor 
        Statistics, the National Center for Education Statistics shall 
        conduct a national study of expenditures at institutions of 
        higher education. Such study shall include information about--
                    ``(A) expenditures for--
                            ``(i) faculty salaries and benefits;
                            ``(ii) administrative salaries, benefits, 
                        and expenses;
                            ``(iii) academic support services;
                            ``(iv) research;
                            ``(v) construction; and
                            ``(vi) technology;
                    ``(B) how such expenditures change over time; and
                    ``(C) how such expenditures relate to college 
                costs.
            ``(2) Final report.--The National Center for Education 
        Statistics shall submit a report regarding the findings of the 
        study required by paragraph (1) to the Committee on Labor and 
        Human Resources of the Senate and the Committee on Education 
        and the Workforce of the House of Representatives not later 
        than September 30, 2001.
    ``(c) Higher Education Market Basket.--In consultation with the 
Bureau of Labor Statistics, the National Center for Education 
Statistics shall develop a Higher Education Market Basket that 
identifies the items that comprise the costs of higher education. The 
National Center for Education Statistics shall provide a report on the 
market basket to the Committee on Labor and Human Resources of the 
Senate and the Committee on Education and the Workforce of the House of 
Representatives not later than September 30, 2002.
    ``(d) Fines.--In addition to the actions authorized in section 
487(c), the Secretary may impose a fine in an amount not to exceed 
$25,000 on an institution of higher education for failure to provide 
the information described in subsection (a)(2) in a timely or accurate 
manner, or for failure to otherwise cooperate with the National Center 
for Education Statistics regarding efforts to obtain data on the cost 
of higher education under such subsection.''.

SEC. 488. PROGRAM PARTICIPATION AGREEMENTS.

    Section 487 (20 U.S.C. 1094) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3)--
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating subparagraphs (C) and 
                        (D) as subparagraphs (B) and (C), respectively;
                    (B) in paragraph (9), by striking ``part B'' and 
                inserting ``part B or D'';
                    (C) in paragraph (14)--
                            (i) in subparagraph (A), by striking ``part 
                        B'' and inserting ``part B or D''; and
                            (ii) in subparagraph (B)--
                                    (I) by inserting ``for-profit'' 
                                after ``Any'';
                                    (II) by striking ``and any eligible 
                                institution which'' and inserting 
                                ``or''; and
                                    (III) by striking ``part B'' and 
                                inserting ``part B or D'';
                    (D) in paragraph (15), by striking ``State review 
                entities'' and inserting ``the State agencies'';
                    (E) by striking paragraph (18);
                    (F) by redesignating paragraphs (19) through (22) 
                as paragraphs (18) through (21), respectively; and
                    (G) by amending paragraph (20) (as redesignated by 
                subparagraph (F)) to read as follows:
            ``(20) The institution will meet the requirements 
        established by the Secretary and accrediting agencies or 
        associations, and will provide evidence to the Secretary that 
        the institution has the authority to operate within a State.''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A)(i), by striking ``State 
                review entities referred to in'' and inserting 
                ``appropriate State agency notifying the Secretary 
                under'';
                    (B) in paragraph (4), by striking ``, after 
                consultation with each State review entity designated 
                under subpart 1 of part H,''; and
                    (C) in paragraph (5), by striking ``State review 
                entities designated'' and inserting ``State agencies 
                notifying the Secretary''.

SEC. 489. REGULATORY RELIEF AND IMPROVEMENT.

    Section 487A (20 U.S.C. 1094a) is amended to read as follows:

``SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.

    ``(a) Quality Assurance Program.--
            ``(1) In general.--The Secretary is authorized to select 
        institutions for voluntary participation in a Quality Assurance 
        Program that provides participating institutions with an 
        alternative management approach through which individual 
        schools develop and implement their own comprehensive systems, 
        including processing and disbursement of student financial aid, 
        verification of student financial aid application data, and 
        entrance and exit interviews, thereby enhancing program 
        integrity within the student aid delivery system. The Quality 
        Assurance Program authorized by this section shall be based on 
        criteria that include demonstrated institutional performance, 
        as determined by the Secretary, and shall take into 
        consideration current quality assurance goals, as determined by 
        the Secretary.
            ``(2) Waiver.--The Secretary is authorized to waive for any 
        institution participating in the Quality Assurance Program any 
        regulations dealing with reporting or verification requirements 
        in this title that are addressed by the institution's 
        alternative management system, and may substitute such quality 
        assurance reporting as the Secretary determines necessary to 
        ensure accountability and compliance with the purposes of the 
        programs under this title.
            ``(3) Determination.--The Secretary is authorized to 
        determine--
                    ``(A) when an institution that is unable to 
                administer the Quality Assurance Program shall be 
                removed from such program; and
                    ``(B) when institutions desiring to cease 
                participation in such program will be required to 
                complete the current award year under the requirements 
                of the Quality Assurance Program.
            ``(4) Review and evaluation.--The Secretary shall review 
        and evaluate the Quality Assurance Program conducted by each 
        participating institution and, on the basis of that evaluation, 
        make recommendations regarding amendments to this Act that will 
        streamline the administration and enhance the integrity of 
        Federal student assistance programs. Such recommendations shall 
        be submitted to the Committee on Labor and Human Resources of 
        the Senate and the Committee on Education and the Workforce of 
        the House of Representatives.
    ``(b) Regulatory Improvement and Streamlining Experiments.--
            ``(1) In general.--The Secretary shall review and evaluate 
        the experience of institutions participating as experimental 
        sites during the period of 1993 through 1998 under this section 
        (as such section was in effect on the day before the date of 
        enactment of the Higher Education Amendments of 1998), and 
shall submit a report based on this review and evaluation to the 
Committee on Labor and Human Resources of the Senate and the Committee 
on Education and the Workforce of the House of Representatives not 
later than 6 months after the enactment of the Higher Education 
Amendments of 1998. Such report shall include--
                    ``(A) a list of participating institutions and the 
                specific statutory or regulatory waivers granted to 
                each institution;
                    ``(B) the findings and conclusions reached 
                regarding each of the experiments conducted; and
                    ``(C) recommendations for amendments to improve and 
                streamline this Act, based on the results of the 
                experiment.
            ``(2) Selection.--
                    ``(A) In general.--The Secretary is authorized to 
                select a limited number of institutions for voluntary 
                participation as experimental sites to provide 
                recommendations to the Secretary on the impact and 
                effectiveness of proposed regulations or new management 
                initiatives, except that additional institutions may 
                not be selected by the Secretary until the report 
                required by subsection (b)(1) has been submitted to 
                Congress.
                    ``(B) Consultation.--Prior to approving any 
                additional experimental sites, the Secretary shall 
                consult with the Committee on Labor and Human Resources 
                of the Senate and the Committee on Education and the 
                Workforce of the House of Representatives and shall 
                provide--
                            ``(i) a list of institutions proposed for 
                        participation in the experiment and the 
                        specific statutory or regulatory waivers 
                        proposed to be granted to each institution;
                            ``(ii) the objectives to be achieved 
                        through the experiment; and
                            ``(iii) the period of time over which the 
                        experiment is to be conducted.
                    ``(C) Waivers.--The Secretary is authorized to 
                waive, for any institution participating as an 
                experimental site under subparagraph (A), any 
                requirements in this title, or regulations prescribed 
                under this title, that will bias experimental results.
    ``(c) Definitions.--For purposes of this section, the term `current 
award year' is defined as the award year during which the participating 
institution indicates the institution's intention to cease 
participation.''.

SEC. 489A. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

    Part G (20 U.S.C. 1088 et seq.) is amended by inserting after 
section 487B (20 U.S.C. 1094a) the following:

``SEC. 487C. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to allow demonstration programs that are strictly 
        monitored by the Department to test the quality and viability 
        of expanded distance education programs currently restricted 
        under this Act;
            ``(2) to help determine the specific statutory and 
        regulatory requirements which should be altered to provide 
        greater access to high quality distance education programs; and
            ``(3) to help determine the appropriate level of Federal 
        assistance for students enrolled in distance education 
        programs.
    ``(b) Demonstration Programs Authorized.--
            ``(1) In general.--The Secretary, in accordance with the 
        provisions of subsection (d), is authorized to select 
        institutions of higher education or consortia of such 
        institutions for voluntary participation in a Distance 
        Education Demonstration Program that provides participating 
        institutions with the ability to offer distance education 
        programs that do not meet all or a portion of the sections or 
        regulations described in paragraph (2).
            ``(2) Waivers.--The Secretary is authorized to waive, for 
        any institution or consortia participating in a Distance 
        Education Demonstration Program, 1 or more of the requirements 
        of section 472(5) as the section relates to computer costs, 
        sections 472(10), 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1 
        or more of the regulations prescribed for distance education 
        under part F or G.
            ``(3) Special rule.--An institution of higher education, as 
        defined in section 481(a), is eligible to participate in the 
        demonstration program authorized under this section if such 
        institution awards a degree, except that--
                    ``(A) such institutions that are described in 
                section 481(a)(1)(C) shall not be eligible to 
                participate; and
                    ``(B) subject to subparagraph (A), such 
                institutions that meet the requirements of subsection 
                (a) of section 481, other than the requirements of 
                paragraph (3)(A) or (3)(B) of such subsection, shall be 
                eligible to participate.
    ``(c) Application.--
            ``(1) In general.--Each institution or consortia of 
        institutions desiring to participate in a demonstration program 
        under this section shall submit an application to the Secretary 
        at such time and in such manner as the Secretary may require.
            ``(2) Contents.--Each application shall include--
                    ``(A) a description of the institution or 
                consortium's consultation with a recognized accrediting 
                agency or association with respect to quality 
                assurances for the distance education programs to be 
                offered;
                    ``(B) a description of the statutory and regulatory 
                requirements described in subsection (b)(2) for which a 
                waiver is sought and the reasons for which the waiver 
                is sought;
                    ``(C) a description of the distance education 
                programs to be offered;
                    ``(D) a description of the students to whom 
                distance education programs will be offered;
                    ``(E) an assurance that the institution or 
                consortium will offer full cooperation with the ongoing 
evaluations of the demonstration program provided for in this section; 
and
                    ``(F) such other information as the Secretary may 
                require.
    ``(d) Selection.--The Secretary is authorized to select not more 
than 5 institutions or consortia to participate in the initial year of 
the demonstration program authorized under this section. If expansion 
of the demonstration program can be supported on the basis of the 
evaluations conducted pursuant to subsections (f) and (g), the 
Secretary may select not more than 10 additional institutions or 
consortia, taking into account the number and quality of applications 
received and the Department's capacity to oversee and monitor each 
demonstration program. To the extent feasible, the Secretary shall 
select a representative sample of institutions for participation. In 
selecting institutions for participation, the Secretary shall take into 
consideration the institution's financial and administrative capability 
and the type of program or programs being offered via distance 
education course offerings.
    ``(e) Notification.--The Secretary shall make available to the 
public and to the Committee on Labor and Human Resources of the Senate 
and the Committee on Education and the Workforce of the House of 
Representatives a list of institutions or consortia selected to 
participate in the demonstration program authorized by this section. 
Such notice shall include a listing of the specific statutory and 
regulatory requirements being waived for each institution or consortia 
and a description of the distance education courses to be offered.
    ``(f) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary, on an annual basis, shall 
        evaluate the demonstration programs authorized under this 
        section. Such evaluations shall specifically review--
                    ``(A) the number and types of students 
                participating in the programs being offered, including 
                the progress of participating students toward 
                recognized associate, bachelor's, or graduate degrees, 
                and the degree to which participation in such programs 
                increased;
                    ``(B) issues related to student financial 
                assistance for distance education; and
                    ``(C) the extent to which statutory or regulatory 
                requirements not waived under the demonstration program 
                present difficulties for students or institutions.
            ``(2) Policy analysis.--In addition, the Secretary shall 
        review current policies and identify those policies which 
        present impediments to the development and use of distance 
        education and other nontraditional methods of expanding access 
        to education.
            ``(3) Reports.--
                    ``(A) In general.--Within 18 months of the 
                initiation of the demonstration program, the Secretary 
                shall report to the Committee on Labor and Human 
                Resources of the Senate and the Committee on Education 
                and the Workforce of the House of Representatives with 
                respect to--
                            ``(i) the evaluations of the demonstration 
                        programs authorized under this section; and
                            ``(ii) any proposed statutory changes 
                        designed to enhance the use of distance 
                        education.
                    ``(B) Additional reports.--The Secretary shall 
                provide additional reports to the Committee on Labor 
                and Human Resources of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives on an annual basis regarding the 
                demonstration programs authorized under this section.
    ``(g) Independent Evaluation.--
            ``(1) In general.--The Secretary shall enter into a 
        contract with the National Academy of Sciences to study the 
        quality of and student learning outcomes in distance education 
        programs. Such study shall include--
                    ``(A) identification of the elements by which 
                quality in distance education can be assessed, such as 
                subject matter, interactivity, and student outcomes; 
                and
                    ``(B) identification of the types of students which 
                can most benefit from distance education in areas such 
                as access to higher education, persistence, and 
                graduation.
            ``(2) Scope.--Such study shall include distance education 
        programs offered by the institutions or consortia participating 
        in the demonstration program authorized by this section, as 
        well as the distance education programs offered by other 
        institutions.
            ``(3) Interim and final reports.--The Secretary shall 
        request that the National Academy of Sciences submit an interim 
        report to the Secretary, the Committee on Labor and Human 
        Resources of the Senate, and the Committee on Education and the 
        Workforce of the House of Representatives not later than 
        December 31, 2000, and a final report not later than December 
        31, 2002, regarding the study.
            ``(4) Funding.--The Secretary shall make available not more 
        than $1,000,000 for the study required by this subsection.
    ``(h) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) assure compliance of institutions or consortia with 
        the requirements of this title (other than the sections and 
        regulations that are waived under subsection (b)(2));
            ``(2) provide technical assistance;
            ``(3) monitor fluctuations in the student population 
        enrolled in the participating institutions or consortia; and
            ``(4) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities.
    ``(i) Definition.--For the purpose of this section, the term 
`distance education' means an educational process that is characterized 
by the separation, in time or place, between instructor and student. 
Distance education may include courses offered principally through the 
use of--
            ``(1) television, audio, or computer transmission, such as 
        open broadcast, closed circuit, cable, microwave, or satellite 
        transmission;
            ``(2) audio or computer conferencing;
            ``(3) video cassettes or discs; or
            ``(4) correspondence.''.

SEC. 489B. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

    Section 491 (20 U.S.C. 1098) is amended--
            (1) in subsection (b)--
                    (A) in the second sentence, by striking ``and 
                expenditures'' and inserting ``, expenditures and 
                staffing levels''; and
                    (B) by inserting after the third sentence the 
                following: ``Reports, publications, and other 
                documents, including such reports, publications, and 
                documents in electronic form, shall not be subject to 
                review by the Secretary.'';
            (2) in subsection (e)--
                    (A) by redesignating paragraphs (3), (4), and (5), 
                as paragraphs (4), (5), and (6), respectively; and
                    (B) by inserting after paragraph (2) the following:
            ``(3) No officers or full-time employees of the Federal 
        Government shall serve as members of the Advisory Committee.'';
            (3) in subsection (g), by striking ``(1) Members'' and all 
        that follows through ``of the United States may'' and inserting 
        ``Members of the Advisory Committee may'';
            (4) in subsection (h)(1)--
                    (A) by inserting ``determined'' after ``as may 
                be''; and
                    (B) by adding at the end the following: ``The 
                Advisory Committee may appoint not more than 1 full-
                time equivalent, nonpermanent, consultant without 
                regard to the provisions of title 5, United States 
                Code. The Advisory Committee shall not be required by 
                the Secretary to reduce personnel to meet agency 
                personnel reduction goals.'';
            (5) in subsection (i), by striking ``$750,000'' and 
        inserting ``$800,000'';
            (6) by amending subsection (j) to read as follows:
    ``(j) Special Analyses and Activities.--The Advisory Committee 
shall--
            ``(1) monitor and evaluate the modernization of student 
        financial aid systems and delivery processes, including the 
        implementation of a performance-based organization within the 
        Department, and report to Congress regarding such modernization 
        on not less than an annual basis, including recommendations for 
        improvement;
            ``(2) assess the adequacy of current methods for 
        disseminating information about programs under this title and 
        recommend improvements, as appropriate, regarding early needs 
        assessment and information for first-year secondary school 
        students;
            ``(3) assess and make recommendations concerning the 
        feasibility and degree of use of appropriate technology in the 
        application for, and delivery and management of, financial 
        assistance under this title, as well as policies that promote 
        use of such technology to reduce cost and enhance service and 
        program integrity, including electronic application and 
        reapplication, just-in-time delivery of funds, reporting of 
        disbursements and reconciliation;
            ``(4) assess the implications of distance education on 
        student eligibility and other requirements for financial 
        assistance under this title, and make recommendations that will 
        enhance access to postsecondary education through distance 
        education while maintaining access, through on-campus 
        instruction at eligible institutions, and program integrity; 
        and
            ``(5) make recommendations to the Secretary regarding 
        redundant or outdated provisions of and regulations under this 
        Act, consistent with the Secretary's requirements under section 
        498A(b)(3).'';
            (7) in subsection (k), by striking ``1998'' and inserting 
        ``2004''; and
            (8) by repealing subsection (l).

SEC. 489C. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

    Section 492 (20 U.S.C. 1098a) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by inserting ``, after the enactment of 
                        each Act to reauthorize this Act that contains 
                        an amendment to this title,'' after ``The 
                        Secretary''; and
                            (ii) by inserting ``D,'' after ``B,''; and
                    (B) in paragraph (2)--
                            (i) by inserting ``D,'' after ``B,''; and
                            (ii) by striking ``1992'' and inserting 
                        ``1998, and for the implementation of this 
                        title as amended by each Act to reauthorize 
                        this Act enacted after the date of enactment of 
                        the Higher Education Amendments of 1998 that 
                        contains an amendment to this title''; and
            (2) in subsection (b)--
                    (A) by striking ``After'' and inserting the 
                following:
            ``(1) In general.--After'';
                    (B) in paragraph (1) (as redesignated by 
                subparagraph (A))--
                            (i) by inserting ``D,'' after ``B,''; and
                            (ii) by striking ``1992'' and inserting 
                        ``1998, and for the implementation of this 
                        title as amended by each Act to reauthorize 
                        this Act enacted after the date of enactment of 
                        the Higher Education Amendments of 1998 that 
                        contains an amendment to this title,''; and
                    (C) by adding at the end the following:
            ``(2) Expansion of negotiated rulemaking in student loan 
        programs.--All regulations pertaining to the student assistance 
        programs in parts B, D, G, and H, that are promulgated after 
        the date of enactment of this paragraph, shall be subject to 
        the negotiated rulemaking process, unless the Secretary 
        determines that exceptional circumstances exist making 
        negotiated rulemaking impractical with respect to given 
        regulations and publishes the basis for such determination in 
        the Federal Register at the same time as the proposed 
        regulations in questions are first published. All published 
        proposed regulations shall conform, unless impracticable, to 
        agreements resulting from such negotiated rulemaking. Such 
        negotiated rulemaking shall be conducted in accordance with the 
        provisions of paragraph (1).''.

                    PART H--PROGRAM INTEGRITY TRIAD

SEC. 491. STATE ROLE AND RESPONSIBILITIES.

    Subpart 1 of part H of title IV (20 U.S.C. 1099a et seq.) is 
amended to read as follows:

                        ``Subpart 1--State Role

``SEC. 495. STATE RESPONSIBILITIES.

    ``(a) State Responsibilities.--As part of the integrity program 
authorized by this part, each State, through 1 State agency or several 
State agencies selected by the State, shall--
            ``(1) furnish the Secretary, upon request, information with 
        respect to the process for licensing or other authorization for 
        institutions of higher education to operate within the State;
            ``(2) notify the Secretary promptly whenever the State 
        revokes a license or other authority to operate an institution 
        of higher education; and
            ``(3) notify the Secretary promptly whenever the State has 
        credible evidence that an institution of higher education 
        within the State--
                    ``(A) has committed fraud in the administration of 
                the student assistance programs authorized by this 
                title; or
                    ``(B) has substantially violated a provision of 
                this title.
    ``(b) Institutional Responsibility.--Each institution of higher 
education shall provide evidence to the Secretary that the institution 
has authority to operate within a State at the time the institution is 
certified under subpart 3.''.

SEC. 492. ACCREDITING AGENCY RECOGNITION.

    (a) Amendments to Headings.--Subpart 2 of part H of title IV (20 
U.S.C. 1099b et seq.) is amended--
            (1) in the subpart heading, by striking ``Approval'' and 
        inserting ``Recognition''; and
            (2) in the heading for section 496, by striking 
        ``approval'' and inserting ``recognition''.
    (b) Recognition of Accrediting Agency or Association.--Section 496 
(20 U.S.C. 1099b) is amended--
            (1) in the heading for subsection (a), by striking 
        ``Standards'' and inserting ``Criteria'';
            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``standards'' each place the term appears and 
                inserting ``criteria'';
                    (B) in paragraph (4)--
                            (i) by striking ``at the institution'' and 
                        inserting ``offered by the institution''; and
                            (ii) by inserting ``, including distance 
                        education courses or programs,'' after ``higher 
                        education''; and
                    (C) in paragraph (5)--
                            (i) by striking subparagraph (I);
                            (ii) by redesignating subparagraphs (A) 
                        through (H) as subparagraphs (B) through (I), 
                        respectively;
                            (iii) by inserting before subparagraph (B) 
                        the following:
                    ``(A) success with respect to student achievement 
                in relation to the institution's mission, including, as 
                appropriate, consideration of course completion, State 
                licensing examination, and job placement rates;'';
                            (iv) in subparagraph (I) (as redesignated 
                        by clause (ii)), by striking ``in clock hours 
                        or credit hours''; and
                            (v) in subparagraph (L)--
                                    (I) by inserting ``record of'' 
                                before ``compliance'';
                                    (II) by striking ``Act, including 
                                any'' and inserting ``Act based on 
                                the'';
                                    (III) by inserting ``any'' after 
                                ``reviews, and''; and
                                    (IV) in the matter following 
                                subparagraph (L), by striking ``(G),'';
            (3) by amending paragraph (1) of subsection (l) to read as 
        follows: ``(1)(A)(i) If the Secretary determines that an 
        accrediting agency or association has failed to apply 
        effectively the standards in this section, or is otherwise not 
        in compliance with the requirements of this section, the 
        Secretary shall--
                    ``(I) after notice and opportunity for a hearing, 
                limit, suspend, or terminate the approval of the agency 
                or association; or
                    ``(II) require the agency or association to take 
                appropriate action to bring the agency or association 
                into compliance with such requirements within a 
                timeframe specified by the Secretary, except that--
                            ``(aa) such timeframe shall not exceed 12 
                        months unless the Secretary extends such period 
                        for good cause; and
                            ``(bb) if the agency or association fails 
                        to bring the agency or association into 
                        compliance within such timeframe, the Secretary 
                        shall, after notice and opportunity for a 
                        hearing, limit, suspend, or terminate the 
                        approval of the agency or association.''; and
            (4) in subsection (n)(3), by adding at the end the 
        following: ``When the Secretary decides to recognize an 
        accrediting agency or association, the Secretary shall 
        determine the agency or association's scope of recognition. If 
        the agency or association reviews institutions offering 
        distance education courses or programs and the Secretary 
        determines that the agency or association meets the 
        requirements of this section, then the agency shall be 
        recognized and the scope of recognition shall include 
        accreditation of institutions offering distance education 
        courses or programs.''.

SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.

    (a) Single Application Form.--Section 498(b) (20 U.S.C. 1099c(b)) 
is amended--
            (1) in paragraph (1), by striking ``and capability'' and 
        inserting ``financial responsibility, and administrative 
        capability'';
            (2) by amending paragraph (3) to read as follows:
            ``(3) requires--
                    ``(A) a description of the third party servicers of 
                an institution of higher education; and
                    ``(B) the institution to maintain a copy of any 
                contract with a financial aid service provider or loan 
                servicer, and provide a copy of any such contract to 
                the Secretary upon request;'';
            (3) in paragraph (4), by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following:
            ``(5) provides, at the option of the institution, for 
        participation in 1 or more of the programs under part B or 
        D.''.
    (b) Financial Responsibility Standards.--Section 498(c) (20 U.S.C. 
1099c(c)) is amended--
            (1) in paragraph (2), by striking ``with respect to 
        operating losses, net worth, asset to liabilities ratios, or 
        operating fund deficits'' and inserting ``regarding ratios that 
        demonstrate financial responsibility,'';
            (2) in paragraph (3)(A), by striking ``Secretary third 
        party'' and all that follows through ``payable to the 
        Secretary'' and inserting ``Secretary any third party 
        guarantees, which the Secretary determines are reasonable, 
        that''; and
            (3) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``ratio of current assets to current 
                liabilities'' and inserting ``criteria''; and
                    (B) in subparagraph (C), by striking ``current 
                operating ratio requirement'' and inserting 
                ``criteria''.
    (c) Financial Guarantees From Owners.--Section 498(e) (20 U.S.C. 
1099c(e)) is amended--
            (1) in the subsection heading, by inserting ``of For-Profit 
        Institutions'' after ``Owners'';
            (2) in paragraph (1)(A), by striking ``from an'' and 
        inserting ``from a for-profit'';
            (3) in paragraph (2)--
                    (A) in the matter preceding clause (i) of 
                subparagraph (A), by inserting ``for-profit'' after 
                ``or more'';
                    (B) in subparagraph (B), by inserting ``for-
                profit'' after ``or more''; and
            (4) in paragraph (3), by striking ``operation of, an 
        institution or'' and inserting ``operation of, a for-profit 
        institution or the''.
    (d) Applications and Site Visits.--Section 498(f) (20 U.S.C. 
1099c(f)) is amended--
            (1) in the subsection heading by striking ``; Site Visits 
        and Fees'' and inserting ``and Site Visits'';
            (2) in the second sentence, by striking ``shall'' and 
        inserting ``may'';
            (3) in the third sentence, strike ``may'' and insert 
        ``shall''; and
            (4) by striking the fourth sentence.
    (e) Time Limitations on, and Renewal of, Eligibility.--Subsection 
(g) of section 498 (20 U.S.C. 1099c) is amended to read as follows:
    ``(g) Time Limitations on, and Renewal of, Eligibility.--
            ``(1) General rule.--After the expiration of the 
        certification of any institution under the schedule prescribed 
        under this section (as in effect prior to the enactment of the 
        Higher Education Act Amendments of 1998), or upon request for 
        initial certification from an institution not previously 
        certified, the Secretary may certify the eligibility for the 
        purposes of any program authorized under this title of each 
        such institution for a period not to exceed 6 years.
            ``(2) Notification.--The Secretary shall notify each 
        institution of higher education not later than 6 months prior 
        to the date of the expiration of the institution's 
        certification.
            ``(3) Institutions outside the united states.--The 
        Secretary shall promulgate regulations regarding the 
        recertification requirements applicable to an institution of 
        higher education outside of the United States that meets the 
        requirements of section 481(a)(1)(C) and received less than 
        $500,000 in funds under part B for the most recent year for 
        which data are available.''.
    (f) Provisional Certification.--Section 498(h) (20 U.S.C. 1099c(h)) 
is amended--
            (1) in paragraph (1)(B)(ii), by striking ``an eligible'' 
        and inserting ``a for-profit eligible''; and
            (2) in paragraph (2), by striking ``the approval'' and 
        inserting ``the recognition''.
    (g) Treatment of Changes of Ownership.--Section 498(i) (20 U.S.C. 
1099c(i)) is amended--
            (1) in the subsection heading, by inserting ``of For-Profit 
        Institutions'' after ``Ownership''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by inserting ``for-
                profit'' before ``institution'';
                    (B) in subparagraph (C), by striking ``two'' and 
                inserting ``a for-profit institution with one'';
                    (C) in subparagraph (D), by inserting ``for-
                profit'' before ``institutions'';
                    (D) in subparagraph (E), by inserting ``for-
                profit'' before ``institutions''; and
                    (E) in subparagraph (F), by inserting ``for-
                profit'' before ``institution''.
    (h) Treatment of Branches.--The second sentence of section 
498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by inserting ``after the 
branch is certified by the Secretary as a branch campus participating 
in a program under title IV,'' after ``2 years''.

SEC. 494. PROGRAM REVIEW AND DATA.

    Section 498A (20 U.S.C. 1099c-1) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``may'' and inserting 
                        ``shall'';
                            (ii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) institutions with a significant fluctuation 
                in Federal Stafford Loan volume, Federal Direct 
                Stafford/Ford Loan volume, or Federal Pell Grant award 
                volume, or any combination thereof, in the year for 
                which the determination is made, compared to the year 
                prior to such year, that are not accounted for by 
                changes in the Federal Stafford Loan program, the 
                Federal Direct Stafford/Ford Loan program, or the Pell 
                Grant program, or any combination thereof;'';
                            (iii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) institutions reported to have deficiencies or 
                financial aid problems by the State licensing or 
                authorizing agency, or by the appropriate accrediting 
                agency or association;'';
                            (iv) in subparagraph (E), by inserting 
                        ``and'' after the semicolon; and
                            (v) by striking subparagraphs (F) and (G), 
                        and inserting the following:
                    ``(F) such other institutions that the Secretary 
                determines may pose a significant risk of failure to 
                comply with the administrative capability or financial 
                responsibility provisions of this title; and''; and
                    (B) in paragraph (3)(A), by inserting ``relevant'' 
                after ``all''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) Special Administrative Rules.--
            ``(1) In general.--In carrying out paragraphs (1) and (2) 
        of subsection (a) and any other relevant provisions of this 
        title, the Secretary shall--
                    ``(A) establish guidelines designed to ensure 
                uniformity of practice in the conduct of program 
                reviews of institutions of higher education;
                    ``(B) make available to each institution 
                participating in programs authorized under this title 
                complete copies of all review guidelines and procedures 
                used in program reviews;
                    ``(C) permit the institution to correct or cure an 
                administrative, accounting, or recordkeeping error if 
                the error is not part of a pattern of error and there 
                is no evidence of fraud or misconduct related to the 
                error;
                    ``(D) base any civil penalty assessed against an 
                institution of higher education resulting from a 
                program review or audit on the gravity of the 
                violation, failure, or misrepresentation; and
                    ``(E) inform the appropriate State and accrediting 
                agency or association whenever the Secretary takes 
                action against an institution of higher education under 
                this section, section 498, or section 432.
            ``(2) Uniformity of application of regulations.--The 
        Secretary shall review the regulations of the Department and 
        the application of such regulations to ensure the uniformity of 
        interpretation and application of the regulations.
            ``(3) Nonduplication and coordination.--The Secretary shall 
        establish a process for ensuring that eligibility and 
        compliance issues, such as institutional audit, program review, 
        and recertification, are considered simultaneously, and shall 
        establish a process for identifying unnecessary duplication of 
        reporting and related regulatory requirements. In developing 
        such processes, the Secretary shall consult with relevant 
        representatives of institutions participating in the programs 
        authorized by this title.''.

  PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL 
                               ASSISTANCE

SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL 
              STUDENT FINANCIAL ASSISTANCE.

    Title IV (20 U.S.C. 1070 et seq.) is amended by adding at the end 
the following:

 ``PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL 
                               ASSISTANCE

``SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL 
              STUDENT FINANCIAL ASSISTANCE.

    ``(a) Establishment.--The Secretary shall establish in the 
Department a performance-based organization (hereafter in this part 
referred to as the `PBO') to administer various functions relating to 
student financial assistance programs authorized under this title.
    ``(b) Oversight and Authority.--
            ``(1) Policy oversight and direction.--The Secretary shall 
        maintain responsibility for the policy relating to functions 
        managed by the PBO, and the PBO shall remain subject to the 
        Secretary's oversight and direction.
            ``(2) Audits and review.--The PBO shall be subject to the 
        usual and customary Federal audit procedures and to review by 
        the Inspector General of the Department.
            ``(3) Changes.--
                    ``(A) In general.--The Secretary and the Chief 
                Operating Officer shall consult concerning the effects 
                of policy, market, or other changes on the ability of 
                the PBO to achieve the goals and objectives established 
                in the performance plan described in subsection (e).
                    ``(B) Revisions to agreement.--The Secretary and 
                the Chief Operating Officer may revise the annual 
                performance agreement described in subsection (f)(2) in 
                light of policy, market, or other changes that occur 
                after the Secretary and the PBO enter into the 
                agreement.
    ``(c) Purposes of PBO.--The purposes of the PBO are--
            ``(1) to improve service to students and other participants 
        in the student financial assistance programs authorized under 
        this title, including making those programs more understandable 
        to students and their parents;
            ``(2) to reduce the costs of administering those programs;
            ``(3) to increase the accountability of the officials 
        responsible for administering those programs;
            ``(4) to provide greater flexibility in the administration 
        of those programs;
            ``(5) to improve and integrate the information and delivery 
        systems that support those programs; and
            ``(6) to develop and maintain a student financial 
        assistance system that contains complete, accurate, and timely 
        data to ensure program integrity.
    ``(d) Functions.--
            ``(1) In general.--Subject to subsection (b) of this 
        section, the PBO shall be responsible for administration of the 
        information and financial systems that support student 
        financial assistance programs authorized under this title, 
        including--
                    ``(A) collecting, processing, and transmitting 
                applicant data to students, institutions, and 
                authorized third parties, as provided for in section 
                483;
                    ``(B) contracting for the information and financial 
                systems supporting student financial assistance 
                programs under this title;
                    ``(C) developing technical specifications for 
                software and systems that support those programs; and
                    ``(D) providing all customer service, training, and 
                user support related to systems that support those 
                programs.
            ``(2) Additional functions.--The Secretary may allocate to 
        the PBO such additional functions as the Secretary determines 
        necessary or appropriate to achieve the purposes of the PBO.
    ``(e) Performance Plan and Report.--
            ``(1) Performance plan.--
                    ``(A) In general.--Each year, the Secretary and 
                Chief Operating Officer shall agree on, and make 
                available to the public, a performance plan for the PBO 
                for the succeeding 5 years that establishes measurable 
                goals and objectives for the organization.
                    ``(B) Consultation.--In developing the 5-year 
                performance plan, the Secretary and the Chief Operating 
                Officer shall consult with students, institutions of 
                higher education, Congress, lenders, and other 
                interested parties not less than 30 days prior to the 
                implementation of the performance plan.
                    ``(C) Areas.--The plan shall address the PBO's 
                responsibilities in the following areas:
                            ``(i) Improving service.--Improving service 
                        to students and other participants in student 
                        financial aid programs authorized under this 
                        title, including making those programs more 
                        understandable to students and their parents.
                            ``(ii) Reducing costs.--Reducing the costs 
                        of administering those programs.
                            ``(iii) Improvement and integration of 
                        support systems.--Improving and integrating the 
                        information and delivery systems that support 
                        those programs.
                            ``(iv) Delivery and information system.--
                        Developing an open, common, and integrated 
                        delivery and information system for programs 
                        authorized under this title.
                            ``(v) Other areas.--Any other areas 
                        identified by the Secretary.
            ``(2) Annual report.--Each year, the Chief Operating 
        Officer shall prepare and submit to Congress, through the 
        Secretary, an annual report on the performance of the PBO, 
        including an evaluation of the extent to which the PBO met the 
        goals and objectives contained in the 5-year performance plan 
        described in paragraph (1) for the preceding year.
    ``(f) Chief Operating Officer.--
            ``(1) Appointment.--
                    ``(A) In general.--The management of the PBO shall 
                be vested in a Chief Operating Officer who shall be 
                appointed by the Secretary to a term of not less than 3 
                and not more than 5 years and compensated without 
                regard to chapters 33, 51, and 53 of title 5, United 
                States Code.
                    ``(B) Basis.--The appointment shall be made on the 
                basis of demonstrated ability in management and 
                experience in information technology or financial 
                services, without regard to political affiliation or 
                activity.
                    ``(C) Reappointment.--The Secretary may reappoint 
                the Chief Operating Officer to subsequent terms of not 
                less than 3 and not more than 5 years, so long as the 
                performance of the Chief Operating Officer, as set 
                forth in the performance agreement described in 
                paragraph (2), is satisfactory.
            ``(2) Performance agreement.--
                    ``(A) In general.--Each year, the Secretary and the 
                Chief Operating Officer shall enter into an annual 
                performance agreement, that shall set forth measurable 
                organization and individual goals for the Chief 
                Operating Officer.
                    ``(B) Transmittal.--The final agreement shall be 
                transmitted to the Committee on Education and the 
                Workforce of the House of Representatives and the 
                Committee on Labor and Human Resources of the Senate, 
and made publicly available.
            ``(3) Compensation.--
                    ``(A) In general.--The Chief Operating Officer is 
                authorized to be paid at an annual rate of basic pay 
                not to exceed the maximum rate of basic pay for the 
                Senior Executive Service under section 5382 of title 5, 
                United States Code, including any applicable locality-
                based comparability payment that may be authorized 
                under section 5304(h)(2)(C) of such title.
                    ``(B) Bonus.--In addition, the Chief Operating 
                Officer may receive a bonus in an amount that does not 
                exceed 50 percent of such annual rate of basic pay, 
                based upon the Secretary's evaluation of the Chief 
                Operating Officer's performance in relation to the 
                goals set forth in the performance agreement described 
                in paragraph (2).
                    ``(C) Payment.--Payment of a bonus under this 
                subparagraph (B) may be made to the Chief Operating 
                Officer only to the extent that such payment does not 
                cause the Chief Operating Officer's total aggregate 
                compensation in a calendar year to equal or exceed the 
                amount of the President's salary under section 102 of 
                title 3, United States Code.
            ``(4) Removal.--The Chief Operating Officer shall be 
        removable--
                    ``(A) by the President; or
                    ``(B) by the Secretary for misconduct or failure to 
                meet the goals set forth in the performance agreement 
                described in paragraph (2).
    ``(g) Senior Management.--
            ``(1) Appointment.--
                    ``(A) In general.--The Chief Operating Officer may 
                appoint such senior managers as that officer determines 
                necessary without regard to the provisions of title 5, 
                United States Code, governing appointments in the 
                competitive service.
                    ``(B) Compensation.--The senior managers described 
                in subparagraph (A) may be paid without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of such title relating to classification and General 
                Schedule pay rates.
            ``(2) Performance agreement.--Each year, the Chief 
        Operating Officer and each senior manager appointed under this 
        subsection shall enter into an annual performance agreement 
        that sets forth measurable organization and individual goals.
            ``(3) Compensation.--
                    ``(A) In general.--A senior manager appointed under 
                this subsection may be paid at an annual rate of basic 
                pay of not more than the maximum rate of basic pay for 
                the Senior Executive Service under section 5382 of 
                title 5, United States Code, including any applicable 
                locality-based comparability payment that may be 
                authorized under section 5304(h)(2)(C) of such title 5.
                    ``(B) Bonus.--In addition, a senior manager may 
                receive a bonus in an amount such that the manager's 
                total annual compensation does not exceed 125 percent 
                of the maximum rate of basic pay for the Senior 
                Executive Service, including any applicable locality-
                based comparability payment, based upon the Chief 
                Operating Officer's evaluation of the manager's 
                performance in relation to the goals set forth in the 
                performance agreement described in paragraph (2).
            ``(4) Removal.--A senior manager shall be removable by the 
        Secretary or by the Chief Operating Officer.
    ``(h) Authorization of Appropriations.--The Secretary shall 
allocate from funds made available under section 458 such funds as are 
appropriate to the functions assumed by the PBO. In addition, there are 
authorized to be appropriated such sums as may be necessary to carry 
out the purposes of this section, including transition costs.''.

        TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.

    (a) In General.--Title V (20 U.S.C. 1101 et seq.) is amended--
            (1) by amending the title heading to read as follows:

     ``TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS'';

            (2) by repealing parts A, B, C, D, E, and F of title V (20 
        U.S.C. 1102 et seq., 1103 et seq., 1104 et seq., 1107 et seq., 
        1111 et seq., and 1113 et seq.);
            (3) by transferring part C of title IX, part D of title IX, 
        part A of title XI, and part A of title X (20 U.S.C. 1134h et 
        seq., 1134l et seq., 1136 et seq., and 1135 et seq.) to title V 
        and redesignating such parts as parts A, B, C, and D, 
        respectively;
            (4) by redesignating sections 931 through 935 (20 U.S.C. 
        1134h et seq. and 1134k-1 et seq.) as sections 511 through 515, 
        respectively;
            (5) by redesignating sections 941 through 947 (20 U.S.C. 
        1134l and 1134q-1) as section 521 through 527, respectively;
            (6) by redesignating sections 1101 through 1109 (20 U.S.C. 
        1136 through 1136h) as sections 531 through 539, respectively; 
        and
            (7) by redesignating sections 1001, 1002, 1003, 1004, and 
        1011 (20 U.S.C. 1135, 1135a-1, 1135a-2, 1135a-3, and 1135a-11) 
        as sections 541, 542, 543, 544, and 551, respectively.
    (b) Cross Reference Conforming Amendments.--
            (1) Jacob k. javits fellowship program.--Section 514(a) (as 
        redesignated by subsection (a)(4)) (20 U.S.C. 1134k(a)) is 
        amended by striking ``933'' and inserting ``513''.
            (2) Graduate assistance in areas of national need.--Part B 
        of title V (as redesignated by paragraphs (3) and (5) of 
        subsection (a)) (20 U.S.C. 1134l et seq.) is amended--
                    (A) in section 524(b)(7) (as redesignated by 
                subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by striking 
                ``945'' and inserting ``525''; and
                    (B) in section 525(c) (as redesignated by 
                subsection (a)(5)) (20 U.S.C. 1134p(c))--
                            (i) by striking ``946(a)'' and inserting 
                        ``526(a)''; and
                            (ii) by striking ``944(b)(2)'' and 
                        inserting ``524(b)(2)''.
            (3) Urban and community service.--Part C of title V (as 
        redesignated by paragraphs (3) and (6) of subsection (a)) (20 
        U.S.C. 1136 et seq.) is amended--
                    (A) in section 532(b) (20 U.S.C. 1136a(b)), by 
                striking ``1104'' and inserting ``534'';
                    (B) in section 534(12) (20 U.S.C. 1136c(12)), by 
                striking ``1103(a)(2)(B)'' and inserting 
                ``533(a)(2)(B)''; and
                    (C) in section 538(1) (20 U.S.C. 1136g(1)), by 
                striking ``1103'' and inserting ``533''.
            (4) FIPSE.--Subsections (b) and (c) of section 544 (as 
        redesignated by subsection (a)(7)) (20 U.S.C. 1135a-3) each are 
        amended by striking ``1001(b)'' and inserting ``541(b)''.

SEC. 502. PURPOSE.

    Section 500 (20 U.S.C. 1101) is amended to read as follows:

``SEC. 500. PURPOSE.

    ``It is the purpose of this title--
            ``(1) to authorize national graduate fellowship programs--
                    ``(A) in order to attract students of superior 
                ability and achievement, exceptional promise, and 
                demonstrated financial need, into high-quality graduate 
                programs and provide the students with the financial 
                support necessary to complete advanced degrees; and
                    ``(B) that are designed to--
                            ``(i) sustain and enhance the capacity for 
                        graduate education in areas of national need; 
                        and
                            ``(ii) encourage talented students to 
                        pursue scholarly careers in the humanities, 
                        social sciences, and the arts; and
            ``(2) to promote postsecondary programs.''.

               PART A--JACOB K. JAVITS FELLOWSHIP PROGRAM

SEC. 511. AWARD OF FELLOWSHIPS.

    (a) Award of Jacob K. Javits Fellowships.--Section 511 (as 
redesignated by section 501(4)) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by inserting ``, 
                financial need,'' after ``demonstrated achievement'';
                    (B) in the second sentence--
                            (i) by striking ``students intending'' and 
                        inserting ``students who are eligible to 
                        receive any grant, loan, or work assistance 
                        pursuant to section 484 and intend''; and
                            (ii) by striking ``commonly accepted'' and 
                        all that follows through ``degree-granting 
                        institution'' and inserting ``the terminal 
                        highest degree awarded in the area of study''; 
                        and
                    (C) in the third sentence, by inserting ``following 
                the fiscal year'' after ``July 1 of the fiscal year''; 
                and
            (2) by adding at the end the following:
    ``(d) Process and Timing of Competition.--The Secretary shall make 
applications for fellowships under this part available not later than 
October 1 of the academic year preceding the academic year for which 
fellowships will be awarded, and shall announce the recipients of 
fellowships under this section not later than March 1 of the academic 
year preceding the academic year for which the fellowships are awarded.
    ``(e) Authority To Contract.--The Secretary is authorized to enter 
into a contract with a nongovernmental agency to administer the program 
assisted under this part if the Secretary determines that entering into 
the contract is an efficient means of carrying out the program.''.
    (b) Allocation of Fellowships.--Section 512 (as redesignated by 
section 501(4)) (20 U.S.C. 1134i) is amended--
            (1) in subsection (a)--
                    (A) in the third sentence of paragraph (1), by 
                striking ``knowledgeable about and have experience'' 
                and inserting ``representative of a range of 
                disciplines''; and
                    (B) in paragraph (2)--
                            (i) by amending subparagraph (B) to read as 
                        follows:
                    ``(B) establish general criteria for the award of 
                fellowships in academic fields identified by the Board, 
                or, in the event that the Secretary enters into a 
                contract with a nongovernmental entity to administer 
                the program assisted under this part, by such 
                nongovernmental entity;''; and
                            (ii) in subparagraph (C), by inserting 
                        ``except that, in the event that the Secretary 
                        enters into a contract with a nongovernmental 
                        entity to administer the program, such panels 
                        may be appointed by such nongovernmental 
                        entity'' before the semicolon; and
            (2) in the first sentence of subsection (b), by inserting 
        ``except that in the event that the Secretary enters into a 
        contract with a nongovernmental entity to administer the 
        program, such panels may be appointed by such nongovernmental 
        entity'' before the period.
    (c) Stipends.--Section 513 (as redesignated by section 501(4)) (20 
U.S.C. 1134j) is amended--
            (1) in subsection (a)--
                    (A) by striking ``1993-1994'' and inserting ``1999-
                2000''; and
                    (B) by striking ``according to measurements of need 
                approved by the Secretary'' and inserting ``determined 
                in accordance with part F of title IV''; and
            (2) in subsection (b)(1)(A)--
                    (A) in clause (i)--
                            (i) by striking ``$6,000'' and inserting 
                        ``$10,000''; and
                            (ii) by striking ``1993-1994'' and 
                        inserting ``1999-2000''; and
                    (B) in clause (ii)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``1993-1994'' and inserting ``1999-
                        2000'';
                            (ii) in subclause (I), by striking ``$9,000 
                        for the academic year 1993-1994'' and inserting 
                        ``$10,000 for the academic year 1999-2000''; 
                        and
                            (iii) in subclause (II), by striking 
                        ``$9,000'' and inserting ``$10,000''.
    (d) Authorization of Appropriations.--Section 515 (as redesignated 
by section 501(4)) (20 U.S.C. 1134k-1) is amended by striking ``1993'' 
and inserting ``1999''.

         PART B--GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED

SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

    (a) Designation of Areas of National Need.--Subsection (b) of 
section 523 (as redesignated by section 501(5)) (20 U.S.C. 1134n) is 
amended to read as follows:
    ``(b) Designation of Areas of National Need.--After consultation 
with the National Science Foundation, the National Academy of Sciences, 
and other appropriate Federal and nonprofit agencies and organizations, 
the Secretary shall designate areas of national need. In making such 
designations, the Secretary shall take into consideration--
            ``(1) the extent to which the national interest in the area 
        is compelling;
            ``(2) the extent to which other Federal programs support 
        postbaccalaureate study in the area concerned; and
            ``(3) an assessment of how the program may achieve the most 
        significant impact with available resources.''.
    (b) Content of Applications.--Section 524(b) (as redesignated by 
section 501(5)) (20 U.S.C. 1134o(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``funds'' and inserting 
                ``sources''; and
                    (B) by inserting ``, which contribution may be in 
                cash or in kind, fairly valued'' before the semicolon;
            (2) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10), respectively;
            (3) by inserting after paragraph (3) the following:
            ``(4) describe the number, types, and amounts of the 
        fellowships that the applicant intends to offer with grant 
        funds provided under this part;'' and
            (4) in paragraph (5)(A) (as redesignated by paragraph (2)), 
        by striking ``criteria developed by the institution'' and 
        inserting ``part F of title IV''.
    (c) Awards.--Section 525 (as redesignated by section 501(5)) (20 
U.S.C. 1134p) is amended--
            (1) in the third sentence of subsection (b)--
                    (A) by striking ``1993-1994'' and inserting ``1999-
                2000''; and
                    (B) by striking ``according to measurements of need 
                approved by the Secretary'' and inserting ``determined 
                in accordance with part F of title IV''; and
            (2) in subsection (c), by striking ``such payments'' and 
        inserting ``such excess''.
    (d) Institutional Payments.--Section 526(a)(1) (as redesignated by 
section 501(5)) (20 U.S.C. 1134q(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``$6,000 annually'' and inserting 
                ``$10,000 for each academic year,''; and
                    (B) by striking ``1993-1994'' and inserting ``1999-
                2000''; and
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by striking 
                ``1993-1994'' and inserting ``1999-2000'';
                    (B) in clause (i), by striking ``$9,000 for the 
                academic year 1993-1994'' and inserting ``$10,000 for 
                the academic year 1999-2000''; and
                    (C) in clause (ii), by striking ``$9,000'' and 
                inserting ``$10,000''.
    (e) Authorization of Appropriations.--Section 527 (as redesignated 
by section 501(5)) (20 U.S.C. 1134q-1) is amended by striking 
``$40,000,000 for fiscal year 1993'' and inserting ``$30,000,000 for 
fiscal year 1999''.

                    PART C--URBAN COMMUNITY SERVICE

SEC. 531. URBAN COMMUNITY SERVICE.

    (a) Priority.--Section 533(b) (as redesignated by section 
501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding at the end the 
following: ``In addition, the Secretary shall give priority to eligible 
institutions submitting applications that demonstrate the eligible 
institution's commitment to urban community service.''.
    (b) Authorization of Appropriations.--Section 539 (as redesignated 
by section 501(a)(6)) (20 U.S.C. 1136h) is amended by striking ``1993'' 
and inserting ``1999''.

      PART D--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION

SEC. 541. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

    (a) Authority.--Section 541(a) (as redesignated by section 
501(a)(7)) (20 U.S.C. 1135(a)) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``or combinations of such 
                institutions'' and inserting ``, combinations of such 
                institutions,''; and
                    (B) by striking ``institutions and combinations of 
                such institutions'' and inserting ``institutions, 
                combinations, and agencies''; and
            (2) in paragraph (2)--
                    (A) by striking ``and programs involving new'' and 
                inserting ``, programs and joint efforts involving''; 
                and
                    (B) by striking ``new combinations'' and inserting 
                ``combinations''.
    (b) Technical Employees.--Section 543(a) (as redesignated by 
section 501(a)(7)) (20 U.S.C. 1135a-2(a)) is amended by striking ``5 
technical'' and inserting ``7 technical''.
    (c) Authorization of Appropriations.--Section 544 (as redesignated 
by section 501(a)(7)) (20 U.S.C. 1135a-3) is amended--
            (1) in subsection (a), by striking ``$20,000,000 for fiscal 
        year 1993'' and inserting ``$26,000,000 for fiscal year 1999''; 
        and
            (2) in subsection (b), by striking ``1993'' and inserting 
        ``1999''.
    (d) Areas of National Need.--
            (1) Areas.--Section 551(c) (as redesignated by section 
        501(a)(7)) (20 U.S.C. 1135a-11(c)) is amended--
                    (A) in paragraph (2), by striking ``Campus climate 
                and culture'' and inserting ``Institutional 
                restructuring to improve learning and promote cost 
                efficiencies'';
                    (B) in paragraph (3), by inserting ``of model 
                programs'' after ``dissemination''; and
                    (C) by adding at the end the following:
            ``(4) Articulation between 2-year and 4-year institutions 
        of higher education, including developing innovative methods 
        for ensuring the successful transfer of students from 2-year to 
        4-year institutions of higher education.''.
            (2) Authorization of appropriations.--Section 551(d) (as 
        redesignated by section 501(a)(7)) (20 U.S.C. 1135a-11(d)) is 
        amended by striking ``1993'' and inserting ``1999''.

    PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES; 
           HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS

SEC. 551. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES; 
              HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS.

    Title V (20 U.S.C. 1101 et seq.) is amended further by adding at 
the end the following:

    ``PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES

``SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES.

    ``(a) Purpose.--It is the purpose of this part--
            ``(1) to support the development of model programs to 
        provide technical assistance or training, and professional 
        development, for faculty and administrators in institutions of 
        higher education, as defined in section 481(a), to provide the 
        faculty and administrators with the skills and assistance to 
        teach effectively students with disabilities; and
            ``(2) to ensure effective evaluation and dissemination of 
        such model programs.
    ``(b) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to institutions of higher education to carry out the 
        purposes of this part.
            ``(2) Model programs.--To the extent feasible, the model 
        programs developed under this part shall be developed for a 
        range of types and sizes of institutions of higher education.
            ``(3) Geographic distribution.--In awarding grants under 
        this part, the Secretary shall consider--
                    ``(A) providing an equitable geographic 
                distribution of such grants; and
                    ``(B) distributing such grants to urban and rural 
                areas.
            ``(4) Approaches.--The Secretary shall award grants under 
        this part for a range of approaches to providing support to 
        faculty and administrators, such as in-service training, 
        professional development, customized and general technical 
        assistance, workshops, summer institutes, distance learning and 
        the use of educational technology.
    ``(c) Dissemination of Grants.--The Secretary may award grants to 
institutions of higher education that have demonstrated exceptional 
programs for students with disabilities under this part in order to 
disseminate those programs.
    ``(d) Applications.--Each institution of higher education desiring 
a grant under this part shall submit an application to the Secretary at 
such time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall include--
            ``(1) a plan to assess the needs of the institution of 
        higher education in order to meet the purposes of this part, in 
        consultation with a broad range of persons within that 
        institution; and
            ``(2) a plan for coordinating with or collaborating with 
        the office within the institution that provides services to 
        students with disabilities, and the equal opportunity office 
        within the institution, if the offices exist.
    ``(e) Use of Funds.--Any institution of higher education receiving 
a grant under this part--
            ``(1) shall use the grant funds to--
                    ``(A) meet the purposes of this section; and
                    ``(B) ensure that projects assisted under this part 
                include components for model development, 
                demonstration, evaluation, and dissemination to other 
                institutions of higher education; and
            ``(2) may include, to the extent practicable, graduate 
        teaching assistants in the services provided under the grant.
    ``(f) Grant Awards.--The Secretary shall award grants under this 
part for a period of 3 years.
    ``(g) Construction.--Nothing in this section shall be construed to 
impose any additional duty, obligation, or responsibility on an 
institution of higher education, or on the institution's 
administrators, faculty, or staff, in addition to the requirements of 
section 504 of the Rehabilitation Act of 1973 and the Americans with 
Disabilities Act of 1990.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 1999 
and such sums as may be necessary for each of the 4 succeeding fiscal 
years.

                ``PART F--HISPANIC-SERVING INSTITUTIONS

``SEC. 581. PURPOSE.

    ``The purpose of this part is to--
            ``(1) expand educational opportunities for, and improve the 
        academic attainment of, Hispanic students; and
            ``(2) expand and enhance the academic offerings, program 
        quality, and institutional stability of colleges and 
        universities that are educating the majority of Hispanic 
        college students and helping large numbers of Hispanic students 
        and other low-income individuals complete postsecondary 
        degrees.

``SEC. 582. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary shall provide grants and related 
assistance to Hispanic-serving institutions to enable such institutions 
to improve and expand their capacity to serve Hispanic students and 
other low-income individuals.
    ``(b) Authorized Activities.--
            ``(1) Types of activities authorized.--Grants awarded under 
        this section shall be used by Hispanic-serving institutions of 
        higher education to assist such institutions to plan, develop, 
        undertake, and carry out programs to improve and expand such 
        institutions' capacity to serve Hispanic students and other 
        low-income students.
            ``(2) Examples of authorized activities.--The programs 
        described in paragraph (1) may include--
                    ``(A) purchase, rental, or lease of scientific or 
                laboratory equipment for educational purposes, 
                including instructional and research purposes;
                    ``(B) renovation and improvement in classroom, 
                library, laboratory, and other instructional 
                facilities;
                    ``(C) support of faculty exchanges, and faculty 
                development and faculty fellowships to assist in 
                attaining advanced degrees in their field of 
                instruction;
                    ``(D) curriculum development and academic 
                instruction;
                    ``(E) purchase of library books, periodicals, 
                microfilm, and other educational materials;
                    ``(F) funds and administrative management, and 
                acquisition of equipment for use in strengthening funds 
                management;
                    ``(G) joint use of facilities such as laboratories 
                and libraries;
                    ``(H) academic tutoring and counseling programs and 
                student support services; and
                    ``(I) expanding the number of Hispanic and other 
                underrepresented graduate and professional students 
                that can be served by the institution by expanding 
                courses and institutional resources.
            ``(3) Endowment fund.--
                    ``(A) In general.--A Hispanic-serving institution 
                may use not more than 20 percent of the grant funds 
                provided under this part to establish or increase an 
                endowment fund at the institution.
                    ``(B) Matching requirement.--In order to be 
                eligible to use grant funds in accordance with 
                subparagraph (A), the Hispanic-serving institution 
                shall provide matching funds, in an amount equal to the 
                Federal funds used in accordance with subparagraph (A), 
                for the establishment or increase of the endowment 
                fund.
                    ``(C) Comparability.--The provisions of part C of 
                title III regarding the establishment or increase of an 
                endowment fund, that the Secretary determines are not 
                inconsistent with this paragraph, shall apply to funds 
                used under subparagraph (A).
    ``(c) Wait-Out-Period.--Each Hispanic-serving institution that 
receives a grant under this part shall not be eligible to receive an 
additional grant under this part until 2 years after the date on which 
the preceding grant period terminates.

``SEC. 583. APPLICATION PROCESS.

    ``(a) Institutional Eligibility.--Each Hispanic-serving institution 
desiring to receive assistance under this part shall submit to the 
Secretary such enrollment data as may be necessary to demonstrate that 
the institution is a Hispanic-serving institution as defined in section 
585, along with such other data and information as the Secretary may by 
regulation require.
    ``(b) Applications.--Any institution which is determined by the 
Secretary to be a Hispanic-serving institution (on the basis of the 
data and information submitted under subsection (a)) may submit an 
application for assistance under this part to the Secretary. Such 
application shall include--
            ``(1) a 5-year plan for improving the assistance provided 
        by the Hispanic-serving institution to Hispanic students and 
        other low-income individuals; and
            ``(2) such other information and assurance as the Secretary 
        may require.
    ``(c) Priority.--With respect to applications for assistance under 
this section, the Secretary shall give priority to an application that 
contains satisfactory evidence that the Hispanic-serving institution 
has entered into or will enter into a collaborative arrangement with at 
least one local educational agency or community-based organization to 
provide such agency or organization with assistance (from funds other 
than funds provided under this part) in reducing dropout rates for 
Hispanic students, improving rates of academic achievement for Hispanic 
students, and increasing the rates at which Hispanic secondary school 
graduates enroll in higher education.

``SEC. 584. SPECIAL RULE.

    ``No Hispanic-serving institution that is eligible for and receives 
funds under this part may receive funds under part A or B of title III 
during the period for which funds under this part are awarded.

``SEC. 585. DEFINITIONS.

    ``For purposes of this part:
            ``(1) Hispanic-serving institution.--The term `Hispanic-
        serving institution' means an institution of higher education 
        which--
                    ``(A) is an eligible institution under section 
                312(b);
                    ``(B) at the time of application, has an enrollment 
                of undergraduate full-time equivalent students that is 
                at least 25 percent Hispanic students; and
                    ``(C) provides assurances that not less than 50 
                percent of its Hispanic students are low-income 
                individuals.
            ``(2) Low-income individual.--The term `low-income 
        individual' means an individual from a family whose taxable 
        income for the preceding year did not exceed 150 percent of an 
        amount equal to the poverty level determined by using criteria 
        of poverty established by the Bureau of the Census.

``SEC. 586. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$45,000,000 for fiscal year 1999 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.

                      ``PART G--GENERAL PROVISIONS

``SEC. 591. ADMINISTRATIVE PROVISIONS FOR PARTS A AND B.

    ``(a) Coordinated Administration.--In carrying out the purpose 
described in section 500(1), the Secretary shall provide for 
coordinated administration and regulation of graduate programs assisted 
under parts A and B with other Federal programs providing assistance 
for graduate education in order to minimize duplication and improve 
efficiency to ensure that the programs are carried out in a manner most 
compatible with academic practices and with the standard timetables for 
applications for, and notifications of acceptance to, graduate 
programs.
    ``(b) Hiring Authority.--For purposes of carrying out parts A and 
B, the Secretary shall appoint, without regard to the provisions of 
title 5, United States Code, that govern appointments in the 
competitive service, such administrative and technical employees, with 
the appropriate educational background, as shall be needed to assist in 
the administration of such parts. The employees shall be paid without 
regard to the provisions of chapter 51 and subchapter III of chapter 53 
of such title relating to classification and General Schedule pay 
rates.
    ``(c) Use for Religious Purposes Prohibited.--No institutional 
payment or allowance under section 513(b) or 526 shall be paid to a 
school or department of divinity as a result of the award of a 
fellowship under part A or B, respectively, to an individual who is 
studying for a religious vocation.
    ``(d) Evaluation.--The Secretary shall evaluate the success of 
assistance provided to individuals under part A or B with respect to 
graduating from their degree programs, and placement in faculty and 
professional positions.
    ``(e) Continuation Awards.--The Secretary, using funds appropriated 
to carry out parts A and B, and before awarding any assistance under 
such parts to a recipient that did not receive assistance under part C 
or D of title IX (as such parts were in effect prior to the date of 
enactment of the Higher Education Amendments of 1998) shall continue to 
provide funding to recipients of assistance under such part C or D (as 
so in effect), as the case may be, pursuant to any multiyear award of 
such assistance.''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.

    Part A of title VI (20 U.S.C. 1121 et seq.) is amended to read as 
follows:

          ``PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES

``SEC. 601. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds that--
            ``(1) the well-being of the United States, its economy and 
        long-range security, is dependent on the education and training 
        of Americans in international and foreign language studies and 
        on a strong research base in these areas;
            ``(2) knowledge of other countries and the ability to 
        communicate in other languages is essential to the promotion of 
        mutual understanding and cooperation among nations; and
            ``(3) systematic efforts are necessary to enhance the 
        capacity of institutions of higher education in the United 
        States for--
                    ``(A) producing graduates with international and 
                foreign language expertise and knowledge; and
                    ``(B) research regarding such expertise and 
                knowledge.
    ``(b) Purposes.--It is the purpose of this part--
            ``(1) to assist in the development of knowledge, 
        international study, resources and trained personnel;
            ``(2) to stimulate the attainment of foreign language 
        acquisition and fluency;
            ``(3) to develop a pool of international experts to meet 
        national needs; and
            ``(4) to coordinate the programs of the Federal Government 
        in the areas of foreign language, area and other international 
        studies, including professional international affairs 
        education, and research.

``SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND 
              PROGRAMS.

    ``(a) National Language and Area Centers and Programs Authorized.--
            ``(1) Centers and programs.--
                    ``(A) In general.--The Secretary is authorized--
                            ``(i) to make grants to institutions of 
                        higher education, or combinations thereof, for 
                        the purpose of establishing, strengthening, and 
                        operating comprehensive language and area 
                        centers and programs; and
                            ``(ii) to make grants to such institutions 
                        or combinations for the purpose of 
                        establishing, strengthening, and operating a 
                        diverse network of undergraduate language and 
                        area centers and programs.
                    ``(B) National resources.--The centers and programs 
                referred to in paragraph (1) shall be national 
                resources for--
                            ``(i) teaching of any modern foreign 
                        language;
                            ``(ii) instruction in fields needed to 
                        provide full understanding of areas, regions, 
                        or countries in which such language is commonly 
                        used;
                            ``(iii) research and training in 
                        international studies, and the international 
                        and foreign language aspects of professional 
                        and other fields of study; and
                            ``(iv) instruction and research on issues 
                        in world affairs which concern one or more 
                        countries.
            ``(2) Authorized activities.--Any such grant may be used to 
        pay all or part of the cost of establishing or operating a 
        center or program, including the cost of--
                    ``(A) faculty, staff, and student travel in foreign 
                areas, regions, or countries;
                    ``(B) teaching and research materials;
                    ``(C) curriculum planning and development;
                    ``(D) bringing visiting scholars and faculty to the 
                center to teach or to conduct research;
                    ``(E) establishing and maintaining linkages with 
                overseas institutions of higher education and other 
                organizations that may contribute to the teaching and 
                research of the center or program; and
                    ``(F) training and improvement of the staff, for 
                the purpose of, and subject to such conditions as the 
                Secretary finds necessary for, carrying out this 
                section.
            ``(3) Grants to maintain library collections.--The 
        Secretary may make grants to centers described in paragraph (1) 
        having important library collections, as determined by the 
        Secretary, for the maintenance of such collections.
            ``(4) Outreach grants and summer institutes.--The Secretary 
        may make additional grants to centers described in paragraph 
        (1) for any one or more of the following purposes:
                    ``(A) Programs of linkage or outreach between 
                foreign language, area studies, and other international 
                fields and professional schools and colleges.
                    ``(B) Programs of linkage or outreach with 2-year 
                and 4-year colleges and universities.
                    ``(C) Programs of linkage or outreach with 
                departments or agencies of Federal and State 
                Governments.
                    ``(D) Programs of linkage or outreach with the news 
                media, business, professional, or trade associations.
                    ``(E) Summer institutes in foreign area, foreign 
                language, and other international fields designed to 
                carry out the programs of linkage and outreach in 
                subparagraphs (A), (B), (C), and (D).
    ``(b) Stipends for Foreign Language and Area Studies.--
            ``(1) In general.--The Secretary is authorized to make 
        grants to institutions of higher education or combinations of 
        such institutions for the purpose of paying stipends to 
        individuals undergoing advanced training in any center or 
        program approved by the Secretary.
            ``(2) Requirements.--Students receiving stipends described 
        in paragraph (1) shall be individuals who are engaged in an 
        instructional program with stated performance goals for 
        functional foreign language use or in a program developing such 
        performance goals, in combination with area studies, 
        international studies, or the international aspects of a 
        professional studies program.
            ``(3) Allowances.--Stipends awarded to graduate level 
        recipients may include allowances for dependents and for travel 
        for research and study in the United States and abroad.
    ``(c) Special Rule With Respect to Travel.--No funds may be 
expended under this part for undergraduate travel except in accordance 
with rules prescribed by the Secretary setting forth policies and 
procedures to assure that Federal funds made available for such travel 
are expended as part of a formal program of supervised study.

``SEC. 603. LANGUAGE RESOURCE CENTERS.

    ``(a) Language Resource Centers Authorized.--The Secretary is 
authorized to make grants to and enter into contracts with institutions 
of higher education, or combinations of such institutions, for the 
purpose of establishing, strengthening, and operating a small number of 
national language resource and training centers, which shall serve as 
resources to improve the capacity to teach and learn foreign languages 
effectively.
    ``(b) Authorized Activities.--The activities carried out by the 
centers described in subsection (a)--
            ``(1) shall include effective dissemination efforts, 
        whenever appropriate; and
            ``(2) may include--
                    ``(A) the conduct and dissemination of research on 
                new and improved teaching methods, including the use of 
                advanced educational technology;
                    ``(B) the development and dissemination of new 
                teaching materials reflecting the use of such research 
                in effective teaching strategies;
                    ``(C) the development, application, and 
                dissemination of performance testing appropriate to an 
                educational setting for use as a standard and 
                comparable measurement of skill levels in all 
                languages;
                    ``(D) the training of teachers in the 
                administration and interpretation of performance 
tests, the use of effective teaching strategies, and the use of new 
technologies;
                    ``(E) the publication and dissemination to 
                individuals and organizations in the foreign language 
                field of instructional materials in the less commonly 
                taught languages;
                    ``(F) the development and dissemination of 
                materials designed to serve as a resource for foreign 
                language teachers at the elementary and secondary 
                school levels; and
                    ``(G) the operation of intensive summer language 
                institutes to train advanced foreign language students, 
                provide professional development, and improve language 
                instruction through preservice and inservice language 
                training for teachers.
    ``(c) Conditions for Grants.--Grants under this section shall be 
made on such conditions as the Secretary determines to be necessary to 
carry out the provisions of this section.

``SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE 
              PROGRAMS.

    ``(a) Incentives for the Creation of New Programs and the 
Strengthening of Existing Programs in Undergraduate International 
Studies and Foreign Languages.--
            ``(1) Authority.--The Secretary is authorized to make 
        grants to institutions of higher education, combinations of 
        such institutions, or partnerships between nonprofit 
        educational institutions and institutions of higher education, 
        to assist such institutions, combinations or partnerships in 
        planning, developing, and carrying out programs to improve 
        undergraduate instruction in international studies and foreign 
        languages. Such grants shall be awarded to institutions, 
        combinations or partnerships seeking to create new programs or 
        to strengthen existing programs in area studies, foreign 
        languages, and other international fields.
            ``(2) Federal share and use of funds.--Grants made under 
        this section may be used to pay not more than 50 percent of the 
        cost of projects and activities which are an integral part of 
        such a program, such as--
                    ``(A) planning for the development and expansion of 
                undergraduate programs in international studies and 
                foreign languages;
                    ``(B) teaching, research, curriculum development, 
                faculty training in the United States or abroad, and 
                other related activities, including the expansion of 
                library and teaching resources;
                    ``(C) expansion of opportunities for learning 
                foreign languages, including less commonly taught 
                languages;
                    ``(D) programs under which foreign teachers and 
                scholars may visit institutions as visiting faculty;
                    ``(E) programs designed to develop or enhance 
                linkages between 2-year and 4-year institutions of 
                higher education, or baccalaureate and post-
                baccalaureate programs or institutions;
                    ``(F) the development of undergraduate study abroad 
                programs in locations abroad in which such study 
                opportunities are not otherwise available and the 
                integration of these programs into specific on-campus 
                degree programs;
                    ``(G) the development of model programs to enhance 
                the effectiveness of study abroad, including 
                predeparture and post return programs;
                    ``(H) the development of programs designed to 
                integrate professional and technical education with 
                area studies, foreign languages, and other 
                international fields;
                    ``(I) the conduct of summer institutes in foreign 
                area, foreign language, and other international fields 
                for purposes that are consistent with the projects and 
                activities described in this subsection; and
                    ``(J) the development of partnerships between 
                institutions of higher education and the private 
                sector, government, and elementary and secondary 
                education institutions to enhance international 
                knowledge.
            ``(3) Non-federal share.--The non-Federal share of the cost 
        of the programs assisted under this subsection may be provided 
        either in cash or in kind. Such assistance may be composed of 
        institutional and noninstitutional funds, including State, 
        private sector, corporation, or foundation contributions.
            ``(4) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to applications from institutions 
        of higher education, combinations or partnerships that require 
        entering students to have successfully completed at least 2 
        years of secondary school foreign language instruction or that 
        require each graduating student to earn 2 years of 
        postsecondary credit in a foreign language (or have 
        demonstrated equivalent competence in the foreign language) or, 
        in the case of a 2-year degree granting institution, offer 2 
        years of postsecondary credit in a foreign language.
            ``(5) Grant conditions.--Grants under this subsection shall 
        be made on such conditions as the Secretary determines to be 
        necessary to carry out this subsection.
            ``(6) Application.--Each application for assistance under 
        this subsection shall include--
                    ``(A) evidence that the applicant has conducted 
                extensive planning prior to submitting the application;
                    ``(B) an assurance that the faculty and 
                administrators of all relevant departments and programs 
                served by the applicant are involved in ongoing 
                collaboration with regard to achieving the stated 
                objectives of the application;
                    ``(C) an assurance that students at the applicant 
                institutions, as appropriate, will have equal access 
                to, and derive benefits from, the program assisted 
                under this subsection; and
                    ``(D) an assurance that each institution, 
                combination or partnership will use the Federal 
                assistance provided under this subsection to supplement 
                and not supplant funds expended by the institution, 
prior to the receipt of the Federal assistance, for programs to improve 
undergraduate instruction in international studies and foreign 
languages.
            ``(7) Evaluation.--The Secretary may establish requirements 
        for program evaluations and require grant recipients to submit 
        annual reports that evaluate the progress and performance of 
        students participating in programs assisted under this 
        subsection.
    ``(b) Programs of National Significance.--The Secretary may also 
award grants to public and private nonprofit agencies and 
organizations, including professional and scholarly associations, 
whenever the Secretary determines such grants will make an especially 
significant contribution to improving undergraduate international 
studies and foreign language programs.

``SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.

    ``(a) Authorized Activities.--The Secretary may, directly or 
through grants or contracts, conduct research and studies that 
contribute to achieving the purposes of this part. Such research and 
studies may include--
            ``(1) studies and surveys to determine needs for increased 
        or improved instruction in foreign language, area studies, or 
        other international fields, including the demand for foreign 
        language, area, and other international specialists in 
        government, education, and the private sector;
            ``(2) studies and surveys to assess the utilization of 
        graduates of programs supported under this title by 
        governmental, educational, and private sector organizations and 
        other studies assessing the outcomes and effectiveness of 
        programs so supported;
            ``(3) evaluation of the extent to which programs assisted 
        under this title that address national needs would not 
        otherwise be offered;
            ``(4) comparative studies of the effectiveness of 
        strategies to provide international capabilities at 
        institutions of higher education;
            ``(5) research on more effective methods of providing 
        instruction and achieving competency in foreign languages;
            ``(6) the development and publication of specialized 
        materials for use in foreign language, area studies, and other 
        international fields, or for training foreign language, area, 
        and other international specialists;
            ``(7) studies and evaluations of effective practices in the 
        dissemination of international information, materials, 
        research, teaching strategies, and testing techniques 
        throughout the education community, including elementary and 
        secondary schools; and
            ``(8) the application of performance tests and standards 
        across all areas of foreign language instruction and classroom 
        use.
    ``(b) Annual Report.--The Secretary shall prepare, publish, and 
announce an annual report listing the books and research materials 
produced with assistance under this section.

``SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.

    ``(a) Competitive Grants.--The Secretary shall award grants under 
section 602 competitively on the basis of criteria that separately, but 
not less rigorously, evaluates the applications for comprehensive and 
undergraduate language and area centers and programs.
    ``(b) Selection Criteria.--The Secretary shall set criteria for 
grants awarded under section 602 by which a determination of excellence 
shall be made to meet the differing objectives of graduate and 
undergraduate institutions.
    ``(c) Equitable Distribution of Grants.--The Secretary shall, to 
the extent practicable, award grants under this part (other than 
section 602) in such manner as to achieve an equitable distribution of 
the grant funds throughout the United States, based on the merit of a 
proposal as determined pursuant to a peer review process involving 
broadly representative professionals.

``SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.

    ``(a) Selection Criteria.--The Secretary shall make excellence the 
criterion for selection of grants awarded under section 602.
    ``(b) Equitable Distribution.--To the extent practicable and 
consistent with the criterion of excellence, the Secretary shall award 
grants under this part (other than section 602) in such a manner as 
will achieve an equitable distribution of funds throughout the United 
States.
    ``(c) Support for Undergraduate Education.--The Secretary shall 
also award grants under this part in such manner as to ensure that an 
appropriate portion of the funds appropriated for this part (as 
determined by the Secretary) are used to support undergraduate 
education.

``SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.

    ``(a) Centers Authorized.--The Secretary is authorized to make 
grants to and enter into contracts with any American overseas research 
center that is a consortium of institutions of higher education 
(hereafter in this section referred to as a ``center'') to enable such 
center to promote postgraduate research, exchanges and area studies.
    ``(b) Use of Grants.--Grants made and contracts entered into 
pursuant to this section may be used to pay all or a portion of the 
cost of establishing or operating a center or program, including--
            ``(1) the cost of faculty and staff stipends and salaries;
            ``(2) the cost of faculty, staff, and student travel;
            ``(3) the cost of the operation and maintenance of overseas 
        facilities;
            ``(4) the cost of teaching and research materials;
            ``(5) the cost of acquisition, maintenance, and 
        preservation of library collections;
            ``(6) the cost of bringing visiting scholars and faculty to 
        a center to teach or to conduct research;
            ``(7) the cost of organizing and managing conferences; and
            ``(8) the cost of publication and dissemination of material 
        for the scholarly and general public.
    ``(c) Limitation.--The Secretary shall only award grants to and 
enter into contracts with centers under this section that--
            ``(1) receive more than 50 percent of their funding from 
        public or private United States sources;
            ``(2) have a permanent presence in the country in which the 
        center is located; and
            ``(3) are organizations described in section 501(c)(3) of 
        the Internal Revenue Code of 1986 which are exempt from 
        taxation under section 501(a) of such Code.
    ``(d) Development Grants.--The Secretary is authorized to make 
grants for the establishment of new centers. The grants may be used to 
fund activities that, within 1 year, will result in the creation of a 
center described in subsection (c).

``SEC. 609. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$80,000,000 for fiscal year 1999, and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.

SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

    Part B of title VI (20 U.S.C. 1130 et seq.) is amended--
            (1) in section 612 (20 U.S.C. 1130-1)--
                    (A) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (B), by 
                                striking ``advanced''; and
                                    (II) in subparagraph (C), by 
                                striking ``evening or summer''; and
                            (ii) in paragraph (2)(C), by inserting 
                        ``foreign language,'' after ``studies,''; and
                    (B) in subsection (d)(2)(G), by inserting ``, such 
                as a representative of a community college in the 
                region served by the center'' before the period; and
            (2) in section 614 (20 U.S.C. 1130b)--
                    (A) in subsection (a), by striking ``1993'' and 
                inserting ``1999''; and
                    (B) in subsection (b), by striking ``1993'' and 
                inserting ``1999''.

SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

    Part C of title VI (20 U.S.C. 1131 et seq.) is amended--
            (1) in section 621(e) (20 U.S.C. 1131(e))--
                    (A) by striking ``one-fourth'' and inserting ``one-
                half''; and
                    (B) by adding at the end the following: ``The non-
                Federal contribution shall be made from private sector 
                sources.'';
            (2) by redesignating sections 622 through 627 (20 U.S.C. 
        1131a and 1131f) as sections 623 through 628, respectively; and
            (3) by inserting after section 621 (20 U.S.C. 1131) the 
        following:

``SEC. 622. INSTITUTIONAL DEVELOPMENT.

    ``(a) In General.--The Institute shall award grants, from amounts 
available to the Institute for each fiscal year, to historically Black 
colleges and universities, Hispanic-serving institutions, Tribally 
Controlled Colleges or Universities, and minority institutions, to 
enable such colleges, universities, and institutions to strengthen 
international affairs programs.
    ``(b) Application.--No grant may be made by the Institute unless an 
application is made by the college, university, or institution at such 
time, in such manner, and accompanied by such information as the 
Institute may require.
    ``(c) Definitions.--In this section--
            ``(1) the term `historically Black college and university' 
        has the meaning given the term in section 322;
            ``(2) the term `Hispanic-serving institution' has the 
        meaning given the term in section 585;
            ``(3) the term `Tribally Controlled College or University' 
        has the meaning given the term in section 2 of the Tribally 
        Controlled College or University Assistance Act of 1978 (25 
        U.S.C. 1801); and
            ``(4) the term `minority institution' has the meaning given 
        the term in section 365.'';
            (4) in section 623 (as redesignated by paragraph (2))--
                    (A) in the section heading, by striking ``junior 
                year'' and inserting ``study'';
                    (B) in subsection (b)(2)--
                            (i) by inserting ``, or completing the 
                        third year of study in the case of a summer 
                        abroad program,'' after ``study''; and
                            (ii) by striking ``junior year'' and 
                        inserting ``study'';
                    (C) in subsection (c)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``junior year'' and inserting 
                        ``study'';
                            (ii) in paragraph (1), by striking ``junior 
                        year'' and inserting ``study''; and
                            (iii) in paragraph (2)--
                                    (I) by striking ``one-half'' and 
                                inserting ``one-third''; and
                                    (II) by striking ``junior year'' 
                                and inserting ``study'';
            (5) in section 627 (as redesignated by paragraph (2)) (20 
        U.S.C. 1131e), by striking ``625'' and inserting ``626''; and
            (6) in section 628 (as redesignated by paragraph (2)) (20 
        U.S.C. 1131f), by striking ``1993'' and inserting ``1999''.

SEC. 604. GENERAL PROVISIONS.

    Section 632 (20 U.S.C. 1132-1) is repealed.

        TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER ACTS

                   PART A--INDIAN EDUCATION PROGRAMS

SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSISTANCE ACT OF 1978.

    (a) Reauthorization.--
            (1) Amount of grants.--Section 108(a)(2) of the Tribally 
        Controlled Community College Assistance Act of 1978 (25 U.S.C. 
        1808(a)(2)) is amended by striking ``$5,820'' and inserting 
        ``$6,000''.
            (2) Authorization of appropriations.--
                    (A) Title i.--Section 110(a) of the Tribally 
                Controlled Community College Assistance Act of 1978 (25 
                U.S.C. 1810(a)) is amended--
                            (i) in paragraph (1), by striking ``1993'' 
                        and inserting ``1999'';
                            (ii) in paragraph (2), by striking 
                        ``$30,000,000 for fiscal year 1993'' and 
                        inserting ``$40,000,000 for fiscal year 1999'';
                            (iii) in paragraph (3), by striking 
                        ``1993'' and inserting ``1999''; and
                            (iv) in paragraph (4), by striking ``1993'' 
                        and inserting ``1999''.
                    (B) Title iii.--Section 306(a) of the Tribally 
                Controlled Community College Assistance Act of 1978 (25 
                U.S.C. 1836(a)) is amended by striking ``1993'' and 
                inserting ``1999''.
                    (C) Title iv.--Section 403 of the Tribal Economic 
                Development and Technology Related Education Assistance 
                Act of 1990 (25 U.S.C. 1852) is amended by striking 
                ``1993'' and inserting ``1999''.
    (b) Name Change.--The Tribally Controlled Community College 
Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended--
            (1) by striking ``community college'' each place the term 
        appears and inserting ``college or university'';
            (2) by striking ``Community College'' each place the term 
        appears (other than when such term is preceded by the term 
        ``Navajo'') and inserting ``College or University'';
            (3) by striking ``community colleges'' each place the term 
        appears and inserting ``colleges or universities'';
            (4) by striking ``such college'' each place the term 
        appears and inserting ``such college or university''; and
            (5) by striking ``community college's'' and inserting 
        ``college or university's''.

SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN CULTURE 
              AND ART DEVELOPMENT.

    Section 1531 of the American Indian, Alaska Native, and Native 
Hawaiian Culture and Art Development Act (20 U.S.C. 4451) is amended to 
read as follows:

``SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out part A 
$5,000,000 for fiscal year 1999.''.

              PART B--ADVANCED PLACEMENT INCENTIVE PROGRAM

SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.

    (a) Program Established.--The Secretary of Education is authorized 
to make grants to States having applications approved under subsection 
(d), from allotments under subsection (b), to enable the States to 
reimburse low-income individuals to cover part or all of the cost of 
advanced placement test fees, if the low-income individuals--
            (1) are enrolled in an advanced placement class; and
            (2) plan to take an advanced placement test.
    (b) Allotment.--From the sum appropriated under subsection (j) for 
a fiscal year, the Secretary shall allot to each State an amount that 
bears the same relation to the sum as the number of low-income 
individuals in the State bears to the number of low-income individuals 
in all States.
    (c) Information Dissemination.--The State educational agency may 
use not more than 5 percent of grant funds received for a fiscal year 
to disseminate information regarding the availability of test fee 
payments under this section to eligible individuals through secondary 
school teachers and guidance counselors.
    (d) Requirements for Approval of Applications.--In approving 
applications for grants the Secretary of Education shall--
            (1) require that each such application contain a 
        description of the advance placement test fees the State will 
        pay on behalf of individual students;
            (2) require an assurance that any funds received under this 
        section, other than funds used in accordance with subsection 
        (c), shall be used only to pay advanced placement test fees; 
        and
            (3) contain such information as the Secretary may require 
        to demonstrate that the State will ensure that a student is 
        eligible for payments under this section, including the 
        documentation required by chapter 1 of subpart 2 of part A of 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a-
        11 et seq.).
    (e) Funding Rule.--Funds provided under this section shall be used 
to supplement and not supplant other Federal, State, local or private 
funds available to assist low-income individuals in paying for advanced 
placement testing, except that such funds may be used to supplant the 
funds so available if the funds used to supplant are used to increase 
the participation of low-income individuals in advanced placement 
courses through teacher training and other activities directly related 
to increasing the availability of advanced placement courses.
    (f) Special Rule.--The Secretary of Education shall only award 
grants under this section for a fiscal year if the amount the College 
Board spends for the College Board's fee assistance program for low-
income students for the fiscal year is not less than the amount the 
College Board spent for such program for the preceding fiscal year.
    (g) Regulations.--The Secretary of Education shall prescribe such 
regulations as are necessary to carry out this section.
    (h) Report.--Each State annually shall report to the Secretary of 
Education regarding--
            (1) the number of low-income individuals in the State who 
        receive assistance under this section; and
            (2) the teacher training and other activities described in 
        subsection (e).
    (i) Definition.--In this section:
            (1) Advanced placement test.--The term ``advanced placement 
        test'' includes only an advanced placement test approved by the 
        Secretary of Education for the purposes of this section.
            (2) Low-income individual.--The term ``low-income 
        individual'' has the meaning given the term in section 
        402A(g)(2) of the Higher Education Act of 1965 (20 U.S.C. 
        1070a-11(g)(2)).
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years to carry out this 
section.

                PART C--UNITED STATES INSTITUTE OF PEACE

SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE OF PEACE.

    The United States Institute of Peace Act (22 U.S.C. 4601 et seq.) 
is amended--
            (1) in section 1705 (22 U.S.C. 4604)--
                    (A) in subsection (f), by inserting ``personal 
                service and other'' after ``may enter into''; and
                    (B) in subsection (o), by inserting after 
                ``Services'' the following: ``and use all sources of 
                supply and services of the General Services 
                Administration'';
            (2) in section 1710(a)(1) (22 U.S.C. 4609(a)(1))--
                    (A) by striking ``1993'' and inserting ``1999''; 
                and
                    (B) by striking ``6'' and inserting ``4''; and
            (3) in the second and third sentences of section 1712 (22 
        U.S.C. 4611), by striking ``shall'' each place the term appears 
        and inserting ``may''.

               PART D--COMMUNITY SCHOLARSHIP MOBILIZATION

SEC. 741. SHORT TITLE.

    This part may be cited as the ``Community Scholarship Mobilization 
Act.''

SEC. 742. FINDINGS.

    Congress finds that--
            (1) the local community, when properly organized and 
        challenged, is one of the best sources of academic support, 
        motivation toward achievement, and financial resources for 
        aspiring postsecondary students;
            (2) local communities, working to complement or augment 
        services currently offered by area schools and colleges, can 
        raise the educational expectations and increase the rate of 
        postsecondary attendance of their youth by forming locally-
        based organizations that provide both academic support 
        (including guidance, counseling, mentoring, tutoring, 
        encouragement, and recognition) and tangible, locally raised, 
        effectively targeted, publicly recognized, financial 
        assistance;
            (3) proven methods of stimulating these community efforts 
        can be promoted through Federal support for the establishment 
        of regional, State or community program centers to organize and 
        challenge community efforts to develop educational incentives 
        and support for local students; and
            (4) using Federal funds to leverage private contributions 
        to help students from low-income families attain educational 
        and career goals is an efficient and effective investment of 
        scarce taxpayer-provided resources.

SEC. 743. DEFINITIONS.

    In this part:
            (1) Regional, state or community program center.--The term 
        ``regional, State or community program center'' means an 
        organization that--
                    (A) is a division of, responsible to, and overseen 
                by, the national organization; and
                    (B) is staffed by professionals trained to create, 
                develop, and sustain local entities in towns, cities, 
                and neighborhoods.
            (2) Local entity.--The term ``local entity'' means an 
        organization that--
                    (A) is a nonprofit organization that is described 
                in section 501(c)(3) of the Internal Revenue Code of 
                1986, and exempt from taxation under section 501(a) of 
                such Code (or shall meet this criteria through 
                affiliation with the national organization);
                    (B) is formed for the purpose of providing 
                educational scholarships and academic support for 
                residents of the local community served by such 
                organization;
                    (C) solicits broad-based community support in its 
                academic support and fund-raising activities;
                    (D) is broadly representative of the local 
                community in the structures of its volunteer-operated 
                organization and has a board of directors that includes 
                leaders from local neighborhood organizations and 
                neighborhood residents, such as school or college 
                personnel, parents, students, community agency 
                representatives, retirees, and representatives of the 
                business community;
                    (E) awards scholarships without regard to age, sex, 
                marital status, race, creed, color, religion, national 
                origin or disability; and
                    (F) gives priority to awarding scholarships for 
                postsecondary education to deserving students from low-
                income families in the local community.
            (3) National organization.--The term ``national 
        organization'' means an organization that--
                    (A) has the capacity to create, develop and sustain 
                local entities and affiliated regional, State or 
                community program centers;
                    (B) has the capacity to sustain newly created local 
                entities in towns, cities, and neighborhoods through 
                ongoing training support programs;
                    (C) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986, and exempt from taxation 
                under section 501(a) of such Code;
                    (D) is a publicly supported organization within the 
                meaning of section 170(b)(1)(A)(iv) of such Code;
                    (E) ensures that each of the organization's local 
                entities meet the criteria described in subparagraphs 
                (C) and (D); and
                    (F) has a program for or experience in cooperating 
                with secondary and postsecondary institutions in 
                carrying out the organization's scholarship and 
                academic support activities.
            (4) High poverty area.--The term ``high poverty area'' 
        means a community with a higher percentage of children from 
        low-income families than the national average of such 
        percentage and a lower percentage of children pursuing 
        postsecondary education than the national average of such 
        percentage.
            (5) Students from low-income families.--The term ``students 
        from low-income families'' means students determined, pursuant 
        to part F of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1087kk et seq.), to be eligible for a Federal Pell Grant 
under subpart 1 of part A of title IV of such Act (20 U.S.C. 1070a).

SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.

    (a) Purpose.--It is the purpose of this part to establish and 
support regional, State or community program centers to enable such 
centers to foster the development of local entities in high poverty 
areas that promote higher education goals for students from low-income 
families by--
            (1) providing academic support, including guidance, 
        counseling, mentoring, tutoring, and recognition; and
            (2) providing scholarship assistance for the cost of 
        postsecondary education.
    (b) Endowment Grant Authority.--From the funds appropriated 
pursuant to the authority of section 746, the Secretary shall award an 
endowment grant, on a competitive basis, to a national organization to 
enable such organization to support the establishment or ongoing work 
of regional, State or community program centers that foster the 
development of local entities in high poverty areas to improve high 
school graduation rates and postsecondary attendance through the 
provision of academic support services and scholarship assistance for 
the cost of postsecondary education.

SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.

    (a) In General.--The Secretary shall award one or more endowment 
grants described in section 744(b) pursuant to an agreement between the 
Secretary and a national organization. Such agreement shall--
            (1) require the national organization to establish an 
        endowment fund in the amount of the grant, the corpus of which 
        shall remain intact and the interest income from which shall be 
        used to support the activities described in paragraphs (2) and 
        (3);
            (2) require the national organization to use 70 percent of 
        the interest income from the endowment fund in any fiscal year 
        to support the establishment or ongoing work of regional, State 
        or community program centers to enable such centers to work 
        with local communities to establish local entities in high 
        poverty areas and provide ongoing technical assistance, 
        training workshops, and other activities to help ensure the 
        ongoing success of the local entities;
            (3) require the national organization to use 30 percent of 
        the interest income from the endowment fund in any fiscal year 
        to provide scholarships for postsecondary education to students 
        from low-income families, which scholarships shall be matched 
        on a dollar-for-dollar basis from funds raised by the local 
        entities;
            (4) require that at least 50 percent of all the interest 
        income from the endowment be allocated to establish new local 
        entities or support regional, State or community program 
        centers in high poverty areas;
            (5) require the national organization to submit, for each 
        fiscal year in which such organization uses the interest from 
        the endowment fund, a report to the Secretary that contains--
                    (A) a description of the programs and activities 
                supported by the interest on the endowment fund;
                    (B) the audited financial statement of the national 
                organization for the preceding fiscal year;
                    (C) a plan for the programs and activities to be 
                supported by the interest on the endowment fund as the 
                Secretary may require; and
                    (D) an evaluation of the programs and activities 
                supported by the interest on the endowment fund as the 
                Secretary may require; and
                    (E) data indicating the number of students from 
                low-income families who receive scholarships from local 
                entities, and the amounts of such scholarships;
            (6) contain such assurances as the Secretary may require 
        with respect to the management and operation of the endowment 
        fund; and
            (7) contain an assurance that if the Secretary determines 
        that such organization is not in substantial compliance with 
        the provisions of this part, then the national organization 
        shall pay to the Secretary an amount equal to the corpus of the 
        endowment fund plus any accrued interest on such fund that is 
        available to the national organization on the date of such 
        determination.
    (b) Returned Funds.--All funds returned to the Secretary pursuant 
to subsection (a)(7) shall be available to the Secretary to carry out 
any scholarship or grant program assisted under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).

SEC. 746. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this part 
$10,000,000 for fiscal year 2000.

    PART E--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
               TRAINING FOR INCARCERATED YOUTH OFFENDERS

SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
              TRAINING FOR INCARCERATED YOUTH OFFENDERS.

    (a) Findings.--Congress makes the following findings:
            (1) Over 150,000 youth offenders age 21 and younger are 
        incarcerated in the Nation's jails, juvenile facilities, and 
        prisons.
            (2) Most youth offenders who are incarcerated have been 
        sentenced as first-time adult felons.
            (3) Approximately 75 percent of youth offenders are high 
        school dropouts who lack basic literacy and life skills, have 
        little or no job experience, and lack marketable skills.
            (4) The average incarcerated youth has attended school only 
        through grade 10.
            (5) Most of these youths can be diverted from a life of 
        crime into productive citizenship with available educational, 
        vocational, work skills, and related service programs.
            (6) If not involved with educational programs while 
        incarcerated, almost all of these youths will return to a life 
        of crime upon release.
            (7) The average length of sentence for a youth offender is 
        about 3 years. Time spent in prison provides a unique 
        opportunity for education and training.
            (8) Even with quality education and training provided 
        during incarceration, a period of intense supervision, support, 
        and counseling is needed upon release to ensure effective 
        reintegration of youth offenders into society.
            (9) Research consistently shows that the vast majority of 
        incarcerated youths will not return to the public schools to 
        complete their education.
            (10) There is a need for alternative educational 
        opportunities during incarceration and after release.
    (b) Definition.--For purposes of this part, the term ``youth 
offender'' means a male or female offender under the age of 25, who is 
incarcerated in a State prison, including a prerelease facility.
    (c) Grant Program.--The Secretary of Education (in this section 
referred to as the ``Secretary'') shall establish a program in 
accordance with this section to provide grants to the State 
correctional education agencies in the States, from allocations for the 
States under subsection (i), to assist and encourage incarcerated 
youths to acquire functional literacy, life, and job skills, through 
the pursuit of a postsecondary education certificate, or an associate 
of arts or bachelor's degree while in prison, and employment counseling 
and other related services which start during incarceration and 
continue through prerelease and while on parole.
    (d) Application.--To be eligible for a grant under this section, a 
State correctional education agency shall submit to the Secretary a 
proposal for a youth offender program that--
            (1) identifies the scope of the problem, including the 
        number of incarcerated youths in need of postsecondary 
        education and vocational training;
            (2) lists the accredited public or private educational 
        institution or institutions that will provide postsecondary 
        educational services;
            (3) lists the cooperating agencies, public and private, or 
        businesses that will provide related services, such as 
        counseling in the areas of career development, substance abuse, 
        health, and parenting skills;
            (4) describes the evaluation methods and performance 
        measures that the State correctional education agency will 
        employ, which methods and measures--
                    (A) shall be appropriate to meet the goals and 
                objectives of the proposal; and
                    (B) shall include measures of--
                            (i) program completion;
                            (ii) student academic and vocational skill 
                        attainment;
                            (iii) success in job placement and 
                        retention; and
                            (iv) recidivism;
            (5) describes how the proposed programs are to be 
        integrated with existing State correctional education programs 
        (such as adult education, graduate education degree programs, 
        and vocational training) and State industry programs;
            (6) addresses the educational needs of youth offenders who 
        are in alternative programs (such as boot camps); and
            (7) describes how students will be selected so that only 
        youth offenders eligible under subsection (f) will be enrolled 
        in postsecondary programs.
    (e) Program Requirements.--Each State correctional education agency 
receiving a grant under this section shall--
            (1) integrate activities carried out under the grant with 
        the objectives and activities of the school-to-work programs of 
        such State, including--
                    (A) work experience or apprenticeship programs;
                    (B) transitional worksite job training for 
                vocational education students that is related to the 
                occupational goals of such students and closely linked 
                to classroom and laboratory instruction;
                    (C) placement services in occupations that the 
                students are preparing to enter;
                    (D) employment-based learning programs; and
                    (E) programs that address State and local labor 
                shortages;
            (2) annually report to the Secretary and the Attorney 
        General on the results of the evaluations conducted using the 
        methods and performance measures contained in the proposal; and
            (3) provide to each State for each student eligible under 
        subsection (f) not more than $1,500 annually for tuition, 
        books, and essential materials, and not more than $300 annually 
        for related services such as career development, substance 
        abuse counseling, parenting skills training, and health 
        education, for each eligible incarcerated youth.
    (f) Student Eligibility.--A youth offender shall be eligible for 
participation in a program receiving a grant under this section if the 
youth offender--
            (1) is eligible to be released within 5 years (including a 
        youth offender who is eligible for parole within such time); 
        and
            (2) is 25 years of age or younger.
    (g) Length of Participation.--A State correctional education agency 
receiving a grant under this section shall provide educational and 
related services to each participating youth offender for a period not 
to exceed 5 years, 1 year of which may be devoted to study in a 
graduate education degree program or to remedial education services for 
students who have obtained a secondary school diploma. Educational and 
related services shall start during the period of incarceration in 
prison or prerelease and may continue during the period of parole.
    (h) Education Delivery Systems.--State correctional education 
agencies and cooperating institutions shall, to the extent practicable, 
use high-tech applications in developing programs to meet the 
requirements and goals of this section.
    (i) Allocation of Funds.--From the amounts appropriated pursuant to 
subsection (j), the Secretary shall allot to each State an amount that 
bears the same relationship to such funds as the total number of 
students eligible under subsection (f) in such State bears to the total 
number of such students in all States.
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $14,000,000 for fiscal year 1999 
and such sums as may be necessary for each of the 4 succeeding fiscal 
years.

                     PART F--EDUCATION OF THE DEAF

SEC. 761. SHORT TITLE.

    This part may be cited as the ``Education of the Deaf Amendments of 
1998''.

SEC. 762. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

    Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4034(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by inserting ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (C);
            (2) in the matter preceding subparagraph (A) of paragraph 
        (2)--
                    (A) by striking ``paragraph (1)'' and inserting 
                ``paragraph (1)(B)''; and
                    (B) by striking ``section 618(b)'' and inserting 
                ``section 618(a)(1)(A)'';
            (3) in paragraph (3), by striking ``intermediate 
        educational unit'' and inserting ``educational service 
        agency'';
            (4) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``intermediate 
                educational unit'' and inserting ``educational service 
                agency''; and
                    (B) in subparagraph (B), by striking ``intermediate 
                educational units'' and inserting ``educational service 
                agencies''; and
            (5) by amending subparagraph (C) to read as follows:
                    ``(C) provide the child a free appropriate public 
                education in accordance with part B of the Individuals 
                with Disabilities Education Act and procedural 
                safeguards in accordance with the following provisions 
                of section 615 of such Act:
                            ``(i) paragraphs (1), and (3) through (6), 
                        of subsection (b).
                            ``(ii) Subsections (c) through (g).
                            ``(iii) Subsection (h), except for the 
                        matter in paragraph (4) pertaining 
to transmission of findings and decisions to a State advisory panel.
                            ``(iv) Paragraphs (1) and (2) of subsection 
                        (i).
                            ``(v) Subsection (j)--
                                    ``(I) except that such subsection 
                                shall not be applicable to a decision 
                                by the University to refuse to admit a 
                                child; or
                                    ``(II) to dismiss a child, except 
                                that, before dismissing any child, the 
                                University shall give at least 60 days 
                                written notice to the child's parents 
                                and to the local educational agency in 
                                which the child resides, unless the 
                                dismissal involves a suspension, 
                                expulsion, or other change in placement 
                                covered under section 615(k).
                            ``(vi) Subsections (k) through (m).''.

SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.

    Section 105(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4305(a)) is amended--
            (1) by striking ``within 1 year after enactment of the 
        Education of the Deaf Act Amendments of 1992, a new'' and 
        inserting ``and periodically update, an''; and
            (2) by amending the second sentence to read as follows: 
        ``The Secretary or the University shall determine the necessity 
        for the periodic update described in the preceding sentence.''.

SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

    Paragraph (2) of section 112(a) of the Education of the Deaf Act of 
1986 (20 U.S.C. 4332(a)) is amended to read as follows:
    ``(2) The Secretary and the institution of higher education with 
which the Secretary has an agreement under this section--
            ``(A) shall periodically assess the need for modification 
        of the agreement; and
            ``(B) shall periodically update the agreement as determined 
        necessary by the Secretary or the institution.''.

SEC. 765. DEFINITIONS.

    Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4351) is amended--
            (1) in paragraph (1)(C), by striking ``Palau (but only 
        until the Compact of Free Association with Palau takes 
        effect),''; and
            (2) in paragraph (5)--
                    (A) by inserting ``and'' after ``Virgin Islands,''; 
                and
                    (B) by striking ``, and Palau (but only until the 
                Compact of Free Association with Palau takes effect)''.

SEC. 766. GIFTS.

    Subsection (b) of section 203 of the Education of the Deaf Act of 
1986 (20 U.S.C. 4353) is amended to read as follows:
    ``(b) Independent Financial and Compliance Audit.--
            ``(1) In general.--Gallaudet University shall have an 
        annual independent financial and compliance audit made of the 
        programs and activities of the University, including the 
        national mission and school operations of the elementary and 
        secondary education programs at Gallaudet. The institution of 
        higher education with which the Secretary has an agreement 
        under section 112 shall have an annual independent financial 
        and compliance audit made of the programs and activities of 
        such institution of higher education, including NTID, and 
        containing specific schedules and analyses for all NTID funds, 
        as determined by the Secretary.
            ``(2) Compliance.--As used in paragraph (1), compliance 
        means compliance with sections 102(b), 105(b)(4), 112(b)(5), 
        and 203(c), paragraphs (2) and (3) of section 207(b), 
        subsections (b)(2), (b)(3), and (c) through (f), of section 
        207, and subsections (b) and (c) of section 210.
            ``(3) Submission of audits.--A copy of each audit described 
        in paragraph (1) shall be provided to the Secretary within 15 
        days of acceptance of the audit by the University or the 
        institution authorized to establish and operate the NTID under 
        section 112(a), as the case may be, but not later than January 
        10 of each year.''.

SEC. 767. REPORTS.

    Section 204(3) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4354(3)) is amended--
            (1) in subparagraph (A), by striking ``The annual'' and 
        inserting ``A summary of the annual''; and
            (2) in subparagraph (B), by striking ``the annual'' and 
        inserting ``a summary of the annual''.

SEC. 768. MONITORING, EVALUATION, AND REPORTING.

    Section 205(c) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4355(c)) is amended by striking ``1993, 1994, 1995, 1996, and 1997'' 
and inserting ``1998 through 2003''.

SEC. 769. INVESTMENTS.

    Section 207 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4357) is amended--
            (1) in subsection (c)(1), by inserting ``the Federal 
        contribution of'' after ``shall invest'';
            (2) in subsection (d)(3)(A), by striking ``prior'' and 
        inserting ``current''; and
            (3) in subsection (h)--
                    (A) in paragraph (1), by striking ``1993 through 
                1997'' and inserting ``1998 through 2003''; and
                    (B) in paragraph (2), by striking ``1993 through 
                1997'' and inserting ``1998 through 2003''.

SEC. 770. INTERNATIONAL STUDENTS.

    Section 210(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359a(a)) is amended by inserting before the period ``, except that in 
any school year no United States citizen who is qualified to be 
admitted to the University or NTID and applies for admission to the 
University or NTID shall be denied admission because of the admission 
of an international student''.

SEC. 771. RESEARCH PRIORITIES.

    Section 211 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4360) is amended to read as follows:

``SEC. 211. RESEARCH PRIORITIES.

    ``(a) Research Priorities.--Gallaudet University and the National 
Technical Institute for the Deaf shall each establish and disseminate 
priorities for their national mission with respect to deafness related 
research, development, and demonstration activities, that reflect 
public input, through a process that includes consumers, constituent 
groups, and the heads of other federally funded programs. The 
priorities for the University shall include activities conducted as 
part of the University's elementary and secondary education programs 
under section 104.
    ``(b) Research Reports.--The University and NTID shall each prepare 
and submit an annual research report, to the Secretary, the Committee 
on Education and the Workforce of the House of Representatives, and the 
Committee on Labor and Human Resources of the Senate, not later than 
January 10 of each year, that shall include--
            ``(1) a summary of the public input received as part of the 
        establishment and dissemination of priorities required by 
        subsection (a), and the University's and NTID's response to the 
        input; and
            ``(2) a summary description of the research undertaken by 
        the University and NTID, the start and projected end dates for 
        each research project, the projected cost and source or sources 
        of funding for each project, and any products resulting from 
        research completed in the prior fiscal year.''.

SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

    Title II of the Education of the Deaf Act of 1986 (20 U.S.C. 4351 
et seq.) is amended by adding at the end the following:

``SEC. 212. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Gallaudet University.--There are authorized to be 
appropriated such sums as may be necessary for each of the fiscal years 
1998 through 2003 to carry out the provisions of titles I and II, 
relating to--
            ``(1) Gallaudet University;
            ``(2) Kendall Demonstration Elementary School; and
            ``(3) the Model Secondary School for the Deaf.
    ``(b) National Technical Institute for the Deaf.--There are 
authorized to be appropriated such sums as may be necessary for each of 
the fiscal years 1998 through 2003 to carry out the provisions of 
titles I and II relating to the National Technical Institute for the 
Deaf.''.

SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.

    The Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is 
amended by adding at the end the following:

            ``TITLE III--COMMISSION ON EDUCATION OF THE DEAF

``SEC. 301. COMMISSION ESTABLISHED.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary shall establish a 
        Commission on the Education of the Deaf to identify those 
        education-related factors in the lives of individuals who are 
        deaf that result in barriers to successful postsecondary 
        education experiences and employment, and those education-
        related factors in the lives of individuals who are deaf that 
        contribute to successful postsecondary education experiences 
        and employment.
            ``(2) Definition of individuals who are deaf.--In this 
        title, the term `individuals who are deaf' means all persons 
        with hearing impairments, including those who are hard-of-
        hearing, those deafened later in life, and those who are 
        profoundly deaf.
    ``(b) Composition.--
            ``(1) In general.--The Commission shall be composed of 13 
        members appointed by the Secretary from recommendations made by 
        the National Association of the Deaf, the American Society for 
        Deaf Children, the Alexander Graham Bell Association, the 
        President of Gallaudet, the Vice President of the National 
        Technical Institute for the Deaf, State Schools for the Deaf, 
        projects to train teachers of the deaf funded under section 
        673(b) of the Individuals with Disabilities Education Act, 
        parent training and information centers funded under section 
        682 of such Act, the Regional Centers on Postsecondary 
        Education for Individuals who are Deaf funded under section 672 
        of such Act, Self-Help for Hard of Hearing People, and the 
        Cothe Council on Education of the Deaf.
            ``(2) Qualifications.--
                    ``(A) In general.--Members of the Commission shall 
                be appointed from among individuals who have broad 
                experience and expertise in deafness, program 
                evaluation, education, rehabilitation, and job training 
                generally, which expertise and experience shall be 
                directly relevant to the issues to be addressed by the 
                Commission.
                    ``(B) Deaf individuals.--At least \1/3\ of members 
                of the Commission shall be individuals who are deaf.
                    ``(C) Chairperson.--The chairperson of the 
                Commission shall be elected by a simple majority of the 
                Commission.
                    ``(D) Assistant secretary.--One member of the 
                Commission shall be the Assistant Secretary for Special 
                Education and Rehabilitative Services.
            ``(3) Date.--Members of the Commission shall be appointed 
        not later than 90 days after the date of enactment of the 
        Education of the Deaf Amendments of 1998.

``SEC. 302. DUTIES, REPORT, AND DURATION OF THE COMMISSION.

    ``(a) Identification of Factors.--The Commission shall identify, 
with respect to individuals who are deaf, factors that pose barriers to 
or factors that facilitate--
            ``(1) educational performance and progress of students who 
        are deaf in high school;
            ``(2) educational performance and progress of students who 
        are deaf in postsecondary education;
            ``(3) career exploration and selection;
            ``(4) job performance and satisfaction in initial 
        postsecondary employment; and
            ``(5) career advancement and satisfaction.
    ``(b) Report.--The Commission shall report to the President and 
Congress such interim reports that the Commission deems appropriate, 
and not later than 18 months after the date of enactment of the 
Education of the Deaf Amendments of 1998, a final report containing the 
findings of the Commission with respect to the factors identified under 
subsection (a). The final report shall include recommendations, 
including legislative proposals, that the Commission deems advisable.
    ``(c) Termination.--The Commission shall terminate 90 days after 
the date on which the Commission submits the Commission's final report 
described in subsection (b).

``SEC. 303. ADMINISTRATIVE PROVISIONS.

    ``(a) Personnel.--
            ``(1) In general.--The Commission may appoint such 
        personnel, including a staff director, as the Commission deems 
        necessary without regard to the provisions of title 5, United 
        States Code, except that the rate pay for any employee of the 
        Commission may not exceed the rate payable for level V of the 
        Executive Schedule under section 5316 of title 5, United States 
        Code.
            ``(2) Procurement of temporary and intermittent services.--
        The Chairperson of the Commission may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code, at rates for individuals which do not exceed the 
        daily equivalent of the annual rate of basic pay prescribed for 
        level V of the Executive Schedule under section 5316 of such 
        title.
    ``(b) Hearings; Quorum.--
            ``(1) Hearings.--The Commission or, with the authorization 
        of the Commission, any committee of the Commission, may, for 
        the purpose of carrying out the provisions of this title, hold 
        such hearings, sit, and act at such times and such places in 
        the United States as the Commission or such committee may deem 
        advisable.
            ``(2) Quorum.--Seven members of the Commission shall 
        constitute a quorum, but 2 or more members may conduct 
        hearings.
            ``(3) Hearings and public input.--In conducting hearings 
        and acquiring public input under this title, the Commission may 
        use various telecommunications media, including 
        teleconferencing, video-conferencing, the Internet, and other 
        media.
    ``(c) Consultation; Information and Statistics; Agency 
Cooperation.--
            ``(1) In general.--In carrying out the Commission's duties 
        under this title and to the extent not prohibited by Federal 
        law, the Commission is authorized to secure consultation, 
        information, statistics, and cooperation from Federal agencies, 
        entities funded by the Federal Government, and other entities 
        the Commission deems advisable.
            ``(2) Special rule.--The Commission is authorized to use, 
        with their consent, the services, personnel, information, and 
        facilities of other Federal, State, local, and private agencies 
        with or without reimbursement.

``SEC. 304. COMPENSATION OF MEMBERS.

    ``(a) United States Officer and Employee Members.--Members of the 
Commission who are officers or full-time employees of the United States 
shall serve without compensation in addition to that received for their 
services as officers or employees of the United States; but may be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    ``(b) Public Members.--Members of the Commission who are not 
officers or full-time employees of the United States shall receive 
compensation at a rate that does not exceed the daily rate payable for 
level V of the Executive Schedule under section 5316 of title 5, United 
States Code, for each day (including travel time) during which such 
members are engaged in the actual performance of the duties of the 
Commission. In addition, such members may be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Commission.

``SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this title 
such sums as may be necessary for each of the fiscal years 1999 and 
2000.''.

                            PART G--REPEALS

SEC. 781. REPEALS.

    (a) Higher Education Act of 1965.--The following provisions of the 
Act (20 U.S.C. 1001 et seq.) are repealed:
            (1) The heading for, sections 701 and 702 of, and parts A, 
        C, D, and E of, title VII (20 U.S.C. 1132a, 1132a-1, 1132b et 
        seq., 1132d et seq., 1132f et seq., and 1132i et seq.).
            (2) Title VIII (20 U.S.C. 1133 et seq.).
            (3) The heading for, section 901 of, and parts A, B, E, F, 
        and G of, title IX (20 U.S.C. 1134, 1134a et seq., 1134d et 
        seq., 1134r et seq., 20 U.S.C. 1134s et seq., and 1134u et 
        seq.).
            (4) The heading for, subpart 2 of part B of, and parts C, D 
        and E of, title X (20 U.S.C. 1135c et seq., 1135e et seq., 
        1135f, and 1135g et seq.).
            (5) The heading for, and part B of, title XI (20 U.S.C. 
        1137 et seq.).
    (b) Higher Education Amendments of 1992.--The following provisions 
of the Higher Education Amendments of 1992 (Public Law 102-325; 106 
Stat 448) are repealed:
            (1) Parts E, F, and G of title XIII of the Higher Education 
        Amendments of 1992 (25 U.S.C. 3332 et seq., 3351 et seq., 3371) 
        are repealed.
            (2) Title XIV.
            (3) Title XV.

                         PART H--MISCELLANEOUS

SEC. 791. YEAR 2000 COMPUTER PROBLEM.

    (a) Sense of Congress.--With the year 2000 fast approaching, it is 
the sense of Congress that the Department of Education should--
            (1) assess immediately the extent of the risk to the 
        operations of the student financial aid system posed by the 
        year 2000 computer problem;
            (2) give the highest priority to correcting all 2-digit 
        date-related problems in the Department's computer systems to 
        ensure that those systems continue to operate effectively in 
        the year 2000 and beyond; and
            (3) develop contingency plans, with respect to the year 
        2000 computer problem, for those computer systems that the 
        Department is unable to correct in time.
    (b) Report Required.--Not later than March 1, 1999, the Secretary 
of Education shall provide a report to the Committee on Labor and Human 
Resources of the Senate and the Committee on Education and the 
Workforce of the House of Representatives describing the compliance 
status of all mission critical systems at the Department, and 
contingency plans for those computer systems in the Department that the 
Department will be unable to correct in time, with respect to the year 
2000 computer problem.
```