tion 3(3)(C) of the Carl D. Perkins Vocational and
Technical Education Act of 1998’’.
(4) Section 103(7) (20 U.S.C. 1003(7)) is
amended to read as follows:
‘‘(7) NEW
BORROWER.—The term ‘new bor-
rower’ when used with respect to any date for any
loan under any provision of—
‘‘(A) part B or part D of title IV means
an individual who on that date has no out-
standing balance of principal or interest owing
on any loan made, insured, or guaranteed under
either such part; and
‘‘(B) part E of title IV means an indi-
vidual who on that date has no outstanding bal-
ance of principal or interest owing on any loan
made under that part.’’.
(5) 
Section 
131(a)(3)(A)(iii) 
(20 
U.S.C.
1015(a)(3)(A)(iii)) is amended—
(A) by striking ‘‘an undergraduate’’ and
inserting ‘‘a full-time undergraduate’’; and
(B) in subclause (I), by striking ‘‘section
428(a)(2)(C)(i)’’ 
and 
inserting 
‘‘section
428(a)(2)(C)(ii)’’.
(6) Section 131(b) is amended by striking ‘‘the
costs for typical’’ and inserting ‘‘the prices for, and
financial aid provided to, typical’’.
(7) Section 131(c)(2)(B) is amended by striking
‘‘costs’’ and inserting ‘‘prices’’.
(8) Section 131(d)(1) is amended by striking
‘‘3 years’’ and inserting ‘‘4 years’’.
(9) Section 141 (20 U.S.C. 1018) is amended—
(A) in subsection (a)(2)(B), by inserting
‘‘total and unit’’ after ‘‘to reduce the’’;
(B) in subsection (c)—
(i) in paragraph (1)(A), by striking
‘‘Each year’’ and inserting ‘‘Each fiscal
year’’;
(ii) in paragraph (1)(B), by inserting
‘‘guaranty agencies,’’ after ‘‘lenders,’’; and
(iii) in paragraph (2)—
(I) in subparagraph (A), by strik-
ing ‘‘expenditures’’ and inserting ‘‘ad-
ministrative expenditures for the most
recent fiscal year’’; and
(II) in subparagraph (B), by
striking ‘‘1990 and’’ and inserting
‘‘1990,’’ and by inserting before the
period at the end the following: ‘‘, and
other relevant legislation;
(C) in subsection (f)(3)(A), by striking
‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph
(1)’’; and
(D) in subsection (g)(3), by adding at the
end the following new sentence: ‘‘The names
and compensation for those individuals shall be
included in the annual report under subsection
(c)(2).’’.
(b) AMENDMENTS TO TITLE III.—
(1)(A) Sections 316(d)(2) and 317(d)(2) of the
Higher 
Education 
Act 
of 
1965 
(20 
U.S.C.
1059c(d)(2), 1059d(d)(2)) are each amended by in-
serting after the first sentence the following: ‘‘The
Secretary shall, to the extent possible, prescribe a
simplified and streamlined format for such applica-
tions that takes into account the limited number of
institutions that are eligible for assistance under this
section.’’.
(B) Section 316(d) of such Act is further
amended by striking paragraph (3) and inserting the
following:
‘‘(3) SPECIAL RULES.—
‘‘(A) ELIGIBILITY.—No Tribal College or
University that receives funds under this sec-
tion shall concurrently receive funds under
other provisions of this part or part B.
‘‘(B) EXEMPTION.—Section 313(d) shall
not apply to institutions that are eligible to re-
ceive funds under this section.
‘‘(C) DISTRIBUTION.—In awarding grants
under this section, the Secretary shall, to the
extent possible and consistent with the competi-
tive process under which such grants are
awarded, ensure maximum and equitable dis-
tribution among all eligible institutions.’’.
(C) Section 317 of such Act is further amended
by striking subsection (e) and by inserting at the
end of subsection (d) the following new paragraph:
‘‘(3) SPECIAL RULES.—
‘‘(A) ELIGIBILITY.—No Alaskan Native-
serving institution or Native Hawaiian-serving
institution that receives funds under this sec-
tion shall concurrently receive funds under
other provisions of this part or part B.
‘‘(B) EXEMPTION.—Section 313(d) shall
not apply to institutions that are eligible to re-
ceive funds under this section.
‘‘(C) DISTRIBUTION.—In awarding grants
under this section, the Secretary shall, to the
extent possible and consistent with the competi-
tive process under which such grants are
awarded, ensure maximum and equitable dis-
tribution among all eligible institutions.’’.
(D) The amendments made by this paragraph
shall be effective on the date of enactment of this
Act.
(2) Subsection (g) of section 324 (20 U.S.C.
1063(g)) is amended to read as follows:
‘‘(g) SPECIAL RULE FOR CERTAIN DISTRICT OF CO-
LUMBIA ELIGIBLE INSTITUTIONS.—
‘‘(1) HOWARD UNIVERSITY.—In any fiscal year
that the Secretary determines that Howard Univer-
sity will receive an allotment under subsections (b)
and (c) which is not in excess of amounts received
by Howard University under the Act of March 2,
1867 (14 Stat. 438; 20 U.S.C. 123), relating to the
annual appropriations for Howard University, then
Howard University shall be ineligible to receive an
allotment under this section.
‘‘(2) UNIVERSITY OF THE DISTRICT OF COLUM-
BIA.—In any fiscal year, the University of the Dis-
trict of Columbia may receive financial assistance
subpart 1 if the institution demonstrates to the
satisfaction of the Secretary that—
‘‘(i) these students are at high risk of
dropping out; and
‘‘(ii) it will first meet the needs of all
its eligible first- and second-year students
for services under this paragraph.
‘‘(3) DETERMINATION OF NEED.—A grant pro-
vided to a student under paragraph (1) shall not be
considered in determining that student’s need for
grant or work assistance under this title, except that
in no case shall the total amount of student financial
assistance awarded to a student under this title ex-
ceed that student’s cost of attendance, as defined in
section 472.
‘‘(4) MATCHING REQUIRED.—A recipient of a
grant who uses such funds for the purpose described
in paragraph (1) shall match the funds used for
such purpose, in cash, from non-Federal funds, in
an amount that is not less than 33 percent of the
total amount of funds used for that purpose. This
paragraph shall not apply to any grant recipient
that is an institution of higher education eligible to
receive funds under part A or B of title III or title
V.
‘‘(5) RESERVATION.—For any fiscal year after
the date of enactment of the Higher Education
Technical Amendments of 2000, the Secretary may
reserve not more than 20 percent of the funds avail-
able under this section for grant aid in accordance
with this subsection.’’.
(2)(A) Section 404A(b) (20 U.S.C. 1070a–
21(b)) is amended by adding at the end thereof the
following new paragraph:
‘‘(3) DURATION.—An award made by the Sec-
retary under this chapter to an eligible entity de-
scribed in paragraph (1) or (2) of subsection (c)
shall be for a period of 6 years.’’.
(B) The amendment made by subparagraph (A)
shall be effective for awards made for fiscal year
2000, except that the Secretary shall permit recipi-
ents of 5-year grants made for fiscal year 1999 to
amend their applications to include a 6-year project
period.
(3) Section 419C(b)(1) (20 U.S.C. 1070d–
33(b)(1)) is amended by inserting ‘‘and’’ after the
semicolon at the end thereof.
(4) Section 419D(d) (20 U.S.C. 1070d–34(d))
is amended by striking ‘‘Public Law 95–1134’’ and
inserting ‘‘section 501 of Public Law 95–134’’.
(d) AMENDMENTS TO PART B OF TITLE IV.—
(1) Section 425(a)(1)(A)(i)(II) (20 U.S.C.
1075(a)(1)(A)(i)(II)) is amended to read as follows:
‘‘(II) if such student is enrolled in a
program of undergraduate education that
is less than 1 academic year, the maximum
annual loan amount that such student may
receive may not exceed the lesser of—
‘‘(aa) the amount that bears the
same ratio to the amount specified in
subclause (I) as the length of such
program measured in semester, tri-
mester, quarter, or clock hours bears
to 1 academic year; or
‘‘(bb) the amount that bears the
same ratio to the amount specified in
subclause (I) as the length of such
program measured in weeks of in-
struction bears to 1 academic year;’’.
(2) 
Section 
428(a)(2)(A) 
(20 
U.S.C.
1078(a)(2)(A)(i)) is amended—
(A) by striking ‘‘and’’ at the end of sub-
clause (II) of clause (i); and
(B) by moving the margin of clause (iii)
two ems to the left.
(3) Section 428(b)(1) is amended—
(A) in subparagraph (A)(i), by striking
subclause (II) and inserting the following:
‘‘(II) if such student is enrolled
in a program of undergraduate edu-
cation that is less than 1 academic
year, the maximum annual loan
amount that such student may receive
may not exceed the lesser of—
‘‘(aa) the amount that bears
the same ratio to the amount
specified in subclause (I) as the
length of such program measured
in semester, trimester, quarter,
or clock hours bears to 1 aca-
demic year; or
‘‘(bb) the amount that bears
the same ratio to the amount
specified in subclause (I) as the
length of such program measured
in weeks of instruction bears to 1
academic year;’’;
(B) in subparagraph (M)(i)(I), by inserting
‘‘or maintain full-time enrollment’’ after ‘‘under
this title’’; and
(C) in subparagraph (Y)(i), by striking
‘‘subparagraph (M)(i)’’ and inserting ‘‘subpara-
graph (M)(i)(I)’’.
(4) 
Section 
428(c)(3)(B) 
(20 
U.S.C.
1078(c)(3)(B)) is amended by inserting before the
semicolon at the end the following: ‘‘and recorded in
the borrower’s file, except that such regulations shall
not require such agreements to be in writing’’.
(5) Section 428C(a)(3)(B) (20 U.S.C. 1078–
3(a)(3)(B)) is amended by adding at the end the fol-
lowing new clause:
‘‘(ii) Loans made under this section shall, to the ex-
tent used to discharge loans made under this title, be
counted against the applicable limitations on aggregate in-
debtedness contained in section 425(a)(2), 428(b)(1)(B),
428H(d), 455, and 464(a)(2)(B).’’.
(6) Section 428H(d)(2)(A)(ii) (20 U.S.C.
1078–8(d)(2)(A)(ii)) is amended to read as follows:
‘‘(ii) if such student is enrolled in a
program of undergraduate education that
is less than 1 academic year, the maximum
annual loan amount that such student may
receive may not exceed the lesser of—
‘‘(I) the amount that bears the
same ratio to the amount specified in
clause (i) as the length of such pro-
gram measured in semester, trimester,
quarter, or clock hours bears to 1 aca-
demic year; or
‘‘(II) the amount that bears the
same ratio to the amount specified in
subclause (I) as the length of such
program measured in weeks of in-
struction bears to 1 academic year;’’.
(7) Section 428H(e) is amended—
(A) by striking paragraph (6); and
(B) by redesignating paragraph (7) as
paragraph (6).
(8) Section 432(m)(1) (20 U.S.C. 1082(m)(1))
is amended—
(A) in subparagraph (B)—
(i) in clause (i), by inserting ‘‘and’’
after the semicolon at the end; and
(ii) in clause (ii), by striking ‘‘; and’’
and inserting a period;
(B) by striking clause (iv) of subparagraph
(D); and
(C) by adding at the end the following new
subparagraph:
‘‘(E) PERFECTION
OF
SECURITY
INTER-
ESTS IN STUDENT LOANS.—
‘‘(i) IN
GENERAL.—Notwithstanding
the provisions of any State law to the con-
trary, including the Uniform Commercial
Code as in effect in any State, a security
interest in loans made under this part, on
behalf of any eligible lender (as defined in
section 435(d)) shall attach, be perfected,
and be assigned priority in the manner
provided by the applicable State’s law for
perfection of security interests in accounts,
as such law may be amended from time to
time (including applicable transition provi-
sions). If any such State’s law provides for
a statutory lien to be created in such
loans, such statutory lien may be created
by the entity or entities governed by such
State law in accordance with the applicable
statutory provisions that created such a
statutory lien.
‘‘(ii) COLLATERAL DESCRIPTION.—In
addition to any other method for describ-
ing collateral in a legally sufficient manner
permitted under the laws of the State, the
description of collateral in any financing
statement filed pursuant to this section
shall be deemed legally sufficient if it lists
such loans, or refers to records (identifying
such loans) retained by the secured party
or any designee of the secured party iden-
tified in such financing statement, includ-
ing the debtor or any loan servicer.
‘‘(iii) SALES.—Notwithstanding the
foregoing and any provisions of any State
law to the contrary, other than any such
State’s law providing for creation of a stat-
utory lien, an outright sale of loans made
under this part shall be effective and per-
fected automatically upon attachment as
defined in the Uniform Commercial Code
of such State.’’.
(9) Section 435(a)(5) (20 U.S.C. 1085(a)(5)) is
amended—
(A) in subparagraph (A)(i), by striking
‘‘July 1, 2002,’’ and inserting ‘‘July 1, 2004,’’;
and
(B) in subparagraph (B), by striking
‘‘1999, 2000, and 2001’’ and inserting ‘‘1999
through 2003’’.
(10) Subparagraphs (A) and (F) of section
438(b)(2) (20 U.S.C. 1087–1(b)(2)) are each
amended by striking the last sentence.
(11) Section 439(d) (20 U.S.C. 1087–2(d)) is
amended by striking paragraph (3).
(e) AMENDMENTS TO PART C OF TITLE IV.—Section
443(b)(2)(B) (42 U.S.C. 2753(b)(2)(B)) is amended by
inserting ‘‘(including a reasonable amount of time spent
in travel or training directly related to such community
service)’’ after ‘‘community service’’.
(f) AMENDMENT TO PART D OF TITLE IV.—Para-
graph (6) of section 455(b) (20 U.S.C. 1087e(b)), as re-
designated by section 8301(c)(1) of the Transportation
Equity for the 21st Century Act (112 Stat. 498) is redes-
ignated as paragraph (8), and is moved to follow para-
graph (7) as added by 452(b) of the Higher Education
Amendments of 1998 (112 Stat. 1716).
(g) AMENDMENTS TO PART E OF TITLE IV.—
(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C.
1087bb(g)(1)(E)(i)(I)) is amended by inserting
‘‘monthly’’ after ‘‘consecutive’’.
(2) 
Section 
464(c)(1)(D) 
(20 
U.S.C.
1087dd(c)(1)(D)) is amended by redesignating sub-
clauses (I) and (II) as clauses (i) and (ii), respec-
tively.
(3) Section 464(c)(2)(A)(iv) is amended by in-
serting before the semicolon at the end the following:
‘‘, except that interest shall continue to accrue on
such loans and such interest shall be eligible for can-
cellation under section 465’’.
(4) Section 464(h) is amended—
(A) in paragraph (1)(A)—
(i) by inserting ‘‘, and the loan default
has not been reduced to a judgment
against the borrower,’’ after ‘‘defaulted on
the loan’’; and
(ii) by inserting after ‘‘held by the
Secretary,’’ the following: ‘‘or if the bor-
rower of a loan under this part who has
defaulted on the loan elects to make a sin-
gle payment equal to the full amount of
principal and interest and collection costs
owed on the loan,’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) SPECIAL RULE.—At the discretion of the
institution or the Secretary, for the purpose of re-
ceiving the benefits of this subsection, a loan that is
in default and reduced to judgment may be consid-
ered rehabilitated if—
‘‘(A) the borrower makes 12 on-time, con-
secutive, monthly payments of amounts owed on
the loan, as determined by the institution, or by
the Secretary in the case of a loan held by the
Secretary; or
‘‘(B) the borrower makes a single payment
equal to the full amount of principal and inter-
est and collection costs owed on the loan.’’.
(5)(A) 
Section 
465(a)(2) 
(20 
U.S.C.
1087ee(a)(2)) is amended—
(i) in subparagraph (A), by striking ‘‘sec-
tion 111(c)’’ and inserting ‘‘section 1124(c)’’;
(ii) in subparagraph (C), by striking ‘‘With
Disabilities’’ and inserting ‘‘with Disabilities’’;
and
(iii) in subparagraph (F), by inserting be-
fore the semicolon at the end the following: ‘‘,
other than prosecutors or public defenders’’.
(B) The amendment made by subparagraph
(A)(iii) shall not apply to any borrower who, prior
to the date of enactment of this Act, was receiving
cancellation 
of 
indebtedness 
under 
section
465(a)(2)(F) of the Higher Education Act of 1965.
period of enrollment. A student shall not be re-
quired to return amounts of less than $50.
‘‘(ii) Subject to clause (iii), a student shall
be permitted to repay any grant overpayment
determined under this section under terms that
permit the student to maintain his or her eligi-
bility for further assistance under this title, in-
cluding a period during which no payment is
due from the student—
‘‘(I) for 6 months, beginning on the
day the student withdrew; and
‘‘(II) while the student is pursuing at
least a half-time course of study, as deter-
mined by the institution.
‘‘(iii) Clause (ii) shall not apply to a stu-
dent who is in default on any repayment obliga-
tions under this title, or who has not made sat-
isfactory repayment arrangements with respect
to such obligations.’’.
(B) The amendments made by subparagraph
(A) shall be effective for the academic year begin-
ning July 1, 2001.
(6) Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is
amended by striking ‘‘mailings, and’’ and inserting
‘‘mailings, or’’.