I
103D CONGRESS
1ST SESSION
H. R. 3376
To make certain technical and conforming amendments to the Higher
Education Act of 1965.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 27, 1993
Mr. FORD of Michigan (for himself, Mr. GOODLING, Mr. CLAY, Mr. PETRI,
Mr. MILLER
of California, Mr. GUNDERSON, Mr. MURPHY, Mr.
CUNNINGHAM, Mr. KILDEE, Mr. WILLIAMS, Mr. MARTINEZ, Mr. SAW-
YER, Mr. PAYNE of New Jersey, Mrs. UNSOELD, Mr. ANDREWS of New
Jersey, Mr. SCOTT, Mr. ROMERO-BARCELO´, Mr. DE LUGO, and Mr.
UNDERWOOD) introduced the following bill; which was referred to the
Committee on Education and Labor
A BILL
To make certain technical and conforming amendments to
the Higher Education Act of 1965.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES EFFECTIVE DATES.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Higher Education Technical Amendments of 1993’’.
(b) REFERENCES.—References in this Act to ‘‘the
Act’’ are references to the Higher Education Act of 1965.
(c) EFFECTIVE DATES.—Except as otherwise pro-
vided therein, the amendments made by this Act shall be
effective as if such amendments were included in The
Higher Education Amendments of 1992 (Public Law 102–
325).
SEC. 2. TECHNICAL AMENDMENTS.
(a) AMENDMENTS TO TITLES I, II, AND III OF THE
ACT.—The Act is amended—
(1) in section 103(b)(2), by increasing the in-
dentation of subparagraphs (A) through (E) by two
em spaces;
(2) in section 104(b)(5)(C), by striking ‘‘sub-
part’’ and inserting ‘‘part’’;
(3) in section 241(a)(2)(B), by striking ‘‘infor-
mation service’’ and inserting ‘‘information science’’;
(4) in section 301(a)(2), by striking the comma
after ‘‘planning’’;
(5) in section 312(c)(2), by inserting ‘‘the’’ be-
fore ‘‘second fiscal year’’ the second place it appears;
(6) in section 316(c), by striking ‘‘Such pro-
grams may include—’’ and inserting the following:
‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—
Such program may include—’’;
(7) by reducing by two em spaces the indenta-
tion of each of the following provisions: sections
323(b)(3), 331(a)(2)(D), and 331(b)(5);
(8) in section 326(e)(2)—
(A) by inserting ‘‘and’’ after the semicolon
at the end of subparagraph (A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B);
(9) in section 331(b)(2), by reducing the inden-
tation of subparagraphs (B) and (C) by four em
spaces; and
(10) in section 331(b)(5), by striking ‘‘an en-
dowment’’ and inserting ‘‘An endowment’’.
(b) AMENDMENTS TO PART A OF TITLE IV OF THE
ACT.—Part A of title IV of the Act is amended—
(1) in section 401(a)(1), by striking the last
sentence;
(2) in section 401(b)(6), in the matter preced-
ing subparagraph (A), by striking ‘‘single 12-month
period’’ and inserting ‘‘single award year’’;
(3) in section 401(b)(6)(A), by striking ‘‘a bac-
calaureate’’ and inserting ‘‘an associate or bacca-
laureate’’;
(4) in section 401(b)(6)(B), by striking ‘‘a
bachelor’s’’ and inserting ‘‘an associate or bacca-
laureate’’;
(5) in section 401(b)(8)(A), by striking ‘‘(deter-
mined in accordance with regulations issued by the
Secretary)’’;
(6) in section 401(i), by striking ‘‘part D of
title V’’ and inserting ‘‘subtitle D of title V’’;
(7) in section 402A(b), by striking paragraph
(2) and inserting the following:
‘‘(2) DURATION.—Grants or contracts made
under this chapter shall be awarded for a period of
4 years, except that—
‘‘(A) the Secretary shall award such grants
or contracts for 5 years to applicants whose
peer review scores were in the highest 10 per-
cent of scores of all applicants receiving grants
or contracts in each program competition for
the same award year; and
‘‘(B) grants made under section 402G
shall be awarded for a period of 2 years.’’;
(8) in section 402A(c)(1), by inserting before
the period the following ‘‘, except that in the case
of the programs authorized in sections 402E and
402G, the level of consideration given to prior expe-
rience shall be the same as the level of consideration
given this factor in the other programs authorized in
this chapter’’;
(9) in section 402A(c)(2)(A), by inserting ‘‘with
respect to grants made under section 402G, and’’
after ‘‘Except’’;
(10) in section 402A, by amending subsection
(e) to read as follows:
‘‘(e) DOCUMENTATION OF STATUS AS A LOW-INCOME
INDIVIDUAL.—(1) Except in the case of an independent
student, as defined in section 480(d), documentation of
an individual’s status pursuant to subsection (g)(2) shall
be made by providing the Secretary with—
‘‘(A) a signed statement from the individual’s
parent or legal guardian;
‘‘(B) verification from another governmental
source;
‘‘(C) a signed financial aid application; or
‘‘(D) a signed United States or Puerto Rico in-
come tax return.
‘‘(2) In the case of an independent student, as de-
fined in section 480(d), documentation of an individual’s
status pursuant to subsection (g)(2) shall be made by pro-
viding the Secretary with—
‘‘(A) a signed statement from the individual;
‘‘(B) verification from another governmental
source;
‘‘(C) a signed financial aid application; or
‘‘(D) a signed United States or Puerto Rico in-
come tax return.’’;
(11) in section 402C(c), by striking ‘‘and for-
eign’’ and inserting ‘‘foreign’’;
(12) in section 402D(c)(2), by striking ‘‘ei-
ther’’;
(13) in section 404A(1), by striking ‘‘high-
school’’ and inserting ‘‘high school’’;
(14) in section 404B(a)(1)—
(A) by striking ‘‘section 403C’’ and insert-
ing ‘‘section 404D’’; and
(B) by striking ‘‘section 403D’’ and insert-
ing ‘‘section 404C’’;
(15) in section 404B(a)(2), by inserting ‘‘shall’’
after ‘‘paragraph (1)’’;
(16) in section 404C(b)(3)(A), by striking
‘‘grades 12’’ and inserting ‘‘grade 12’’;
(17) in section 404C(b)(3)(D)(i), by striking
‘‘section 401D of this subpart’’ and inserting ‘‘sec-
tion 402D’’;
(18) in section 404C(b)(3)(D)(ii), by striking
‘‘section 401D of this part’’ and inserting ‘‘section
402D’’;
(19) in section 404D(d)(3), by striking ‘‘pro-
gram of instruction’’ and inserting ‘‘program of un-
dergraduate instruction’’;
(20) in section 404D(d)(4), by striking ‘‘the’’
the first place it appears;
(21) in section 404E(c), by striking ‘‘tuition’’
and inserting ‘‘financial’’;
(22) in section 404F(a), by striking ‘‘under this
section shall biannually’’ and inserting ‘‘under this
chapter shall biennially’’;
(23) in section 404F(c), by striking ‘‘bian-
nually’’ and inserting ‘‘biennially’’;
(24) in section 404G, by striking ‘‘an appro-
priation’’ and inserting ‘‘to be appropriated’’;
(25) in section 409A(1), by striking ‘‘private fi-
nancial’’ and inserting ‘‘private student financial’’;
(26) in section 413C(d)—
(A) by striking ‘‘, a reasonable proportion
of the institution’s allocation shall be made
available to such students, except that’’ and in-
serting ‘‘and’’; and
(B) by striking ‘‘5 percent of the need’’
and inserting ‘‘5 percent of the total financial
need’’;
(27) in section 413D(d)(3)(C), by striking
‘‘three-fourths in the Pell Grant family size offset’’
and inserting ‘‘150 percent of the difference between
the income protection allowance for a family of five
with one in college and the income protection allow-
ance for a family of six with one in college’’;
(28) in section 415C(b)(7), by striking the pe-
riod at the end and inserting a semicolon;
(29) in section 419C(b)—
(A) by striking ‘‘for a period of not more
than 4 years for the first 4 years of study’’ and
inserting ‘‘for a period of not less than 1 or
more than 4 years during the first 4 years of
study’’; and
(B) by adding at the end the following:
‘‘The State educational agency administering the program
in a State shall have discretion to determine the period
of the award (within the limits specified in the preceding
sentence), except that—
‘‘(1) if the amount appropriated for this sub-
part for any fiscal year exceeds the amount appro-
priated for fiscal year 1993, the Secretary shall
identify to each State educational agency the num-
ber of scholarships available to that State under sec-
tion 419D(b) that are attributable to such excess;
and
‘‘(2) the State educational agency shall award
not less than that number of scholarships for a pe-
riod of 4 years.’’;
(30) in section 419D, by adding at the end the
following new subsection:
‘‘(d) CONSOLIDATION BY INSULAR AREAS PROHIB-
ITED.—Notwithstanding section 501 of Public Law 95–
1134 (48 U.S.C. 1469a), funds allocated under this part
to an Insular Area described in that section shall be
deemed to be direct payments to classes of individuals, and
the Insular Area may not consolidate such funds with
other funds received by the Insular Area from any depart-
ment or agency of the United States Government.’’; and
(31) in section 419G(b), by striking ‘‘the Dis-
trict of Columbia, the Commonwealth of Puerto
Rico,’’.
(c) AMENDMENTS TO PART B OF TITLE IV OF THE
ACT.—Part B of title IV of the Act is amended—
(1) in section 422(c)(7), by striking the semi-
colon at the end of subparagraph (B) and inserting
a period;
(2) in section 425(a)(1)(A)—
(A) by striking clauses (ii) and (iii) and in-
serting the following:
‘‘(ii) in the case of a student at an eli-
gible institution who has successfully com-
pleted such first year but has not success-
fully completed the remainder of a pro-
gram of undergraduate education—
‘‘(I) $3,500; or
‘‘(II) if such student is enrolled
in a program of undergraduate edu-
cation, the remainder of which is less
than one academic year, the maximum
annual loan amount that such student
may receive may not exceed the
amount that bears the same ratio to
the amount specified in subclause (I)
as such remainder measured in semes-
ter, trimester, quarter, or clock hours
bears to one academic year;
‘‘(iii) in the case of a student at an el-
igible institution who has successfully com-
pleted the first and second years of a pro-
gram of undergraduate education but has
not successfully completed the remainder
of such program—
‘‘(I) $5,500; or
‘‘(II) if such student is enrolled
in a program of undergraduate edu-
cation, the remainder of which is less
than one academic year, the maximum
annual loan amount that such student
may receive may not exceed the
amount that bears the same ratio to
the amount specified in subclause (I)
as such remainder measured in semes-
ter, trimester, quarter, or clock hours
bears to one academic year;’’ and
(B) by striking the semicolon at the end of
clause (iv) and inserting a period;
(3) in section 425(a)(1), by inserting at the end
thereof the following:
‘‘(C) For the purpose of subparagraph (A), the
number of years that a student has completed in a
program of undergraduate education shall include
any prior enrollment in an eligible program of un-
dergraduate education for which the student was
awarded an associate or baccalaureate degree, if
such degree is required by the institution for admis-
sion to the program in which the student is en-
rolled.’’;
(4) in section 427(a)(2)(C)(i), by inserting
‘‘section’’ before ‘‘428B or 428C’’;
(5) in section 427A(e)(1), by striking ‘‘under
this part,’’ and inserting ‘‘under section 427, 428, or
428H of this part,’’;
(6) in section 427A(i)(1), by amending sub-
paragraph (B) to read as follows:
‘‘(B)(i) during any period in which a stu-
dent is eligible to have interest payments paid
on his or her behalf by the Government pursu-
ant to section 428(a), by crediting the excess
interest to the Government; or
‘‘(ii) during any other period, by crediting
such excess interest to the reduction of prin-
cipal to the extent provided in paragraph (5) of
this subsection.’’;
(7) in section 427A(i)(2)(B), by striking out
‘‘outstanding principal balance’’ and inserting in lieu
thereof ‘‘average daily principal balance’’;
(8) in section 427A(i)(4)(B), by striking out
‘‘outstanding principal balance’’ and inserting in lieu
thereof ‘‘average daily principal balance’’;
(9) in section 427A(i)(5)—
(A) by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraphs (2) and (4)’’;
(B) by striking ‘‘principle’’ and inserting
‘‘principal’’; and
(C) by inserting before the period at the
end of the second sentence the following: ‘‘, but
the excess interest shall be calculated and cred-
ited to the Secretary’’;
(10) in section 427A(i), by adding at the end
the following new paragraph:
‘‘(7) CONVERSION
TO
VARIABLE
RATE.—(A)
Subject to subparagraphs (B) and (C), a lender or
holder may convert the interest rate on a loan made
pursuant to section 428 or 428H that is subject to
the provisions of this subsection to a variable rate
which is adjusted quarterly. The applicable rate of
interest for such loans for each 3-month period be-
ginning on January 1, April 1, July 1, or October
1, shall be determined on the first day of the month
preceding such 3-month period, and shall be equal to
(i) the bond equivalent rate of the 91-day Treasury
bill auctioned at the final auction held prior to the
first day of the month preceding such 3-month pe-
riod; plus (ii) 3.25 percent if the first disbursement
of the loan occurred prior to July 23, 1992, or 3.10
percent if the first disbursement of the loan occurred
on or after July 23, 1992.
‘‘(B) A lender or holder shall notify the bor-
rower within 30 days of the conversion of the loan
to a variable interest rate.
‘‘(C) The interest rate on a loan converted to
a variable rate pursuant to this paragraph shall not
exceed the maximum interest rate applicable to the
loan prior to such conversion.
‘‘(D) Loans on which the interest rate is con-
verted in accordance with subparagraph (A) shall
not be subject to any other provisions of this sub-
section.’’;
(11) in section 428(a)(2)(C)(i), by striking the
period at the end and inserting ‘‘; and’’;
(12) in section 428(a)(2)(E), by inserting ‘‘or
428H’’ after ‘‘428A’’;
(13) in section 428(a)(3)(A)(v)—
(A) in subclause (I), by striking out ‘‘be-
fore the first disbursement of the loan; or’’ and
inserting ‘‘before the loan is first delivered to
the borrower; or’’; and
(B) in subclause (II), by striking out ‘‘be-
fore the first disbursement of the loan’’ and in-
serting ‘‘before the loan is first delivered to the
borrower’’;
(14) in section 428(b)(1)(A)—
(A) by striking clauses (ii) and (iii) and in-
serting the following:
‘‘(ii) in the case of a student at an eli-
gible institution who has successfully com-
pleted such first year but has not success-
fully completed the remainder of a pro-
gram of undergraduate education—
‘‘(I) $3,500; or
‘‘(II) if such student is enrolled
in a program of undergraduate edu-
cation, the remainder of which is less
than one academic year, the maximum
annual loan amount that such student
may receive may not exceed the
amount that bears the same ratio to
the amount specified in subclause (I)
as such remainder measured in semes-
ter, trimester, quarter, or clock hours
bears to one academic year;
‘‘(iii) in the case of a student at an el-
igible institution who has successfully com-
pleted the first and second years of a pro-
gram of undergraduate education but has
not successfully completed the remainder
of such program—
‘‘(I) $5,500; or
‘‘(II) if such student is enrolled
in a program of undergraduate edu-
cation, the remainder of which is less
than one academic year, the maximum
annual loan amount that such student
may receive may not exceed the
amount that bears the same ratio to
the amount specified in subclause (I)
as such remainder measured in semes-
ter, trimester, quarter, or clock hours
bears to one academic year;’’;
(B) by redesignating clause (iv) as clause
(v); and
(C) by inserting after clause (iii) the fol-
lowing:
‘‘(iv) in the case of a student who has
received an associate or baccalaureate de-
gree and is enrolled in an eligible program
for which the institution requires such de-
gree for admission, the number of years
that a student has completed in a program
of undergraduate education shall, for the
purposes of clauses (ii) and (iii), include
any prior enrollment in the eligible pro-
gram of undergraduate education for
which the student was awarded such de-
gree; and’’;
(15) in section 428(b)(1)(B), by striking the
matter following clause (ii) and inserting the follow-
ing:
‘‘except that the Secretary may increase the
limit applicable to students who are pursuing
programs which the Secretary determines are
exceptionally expensive;’’;
(16) in section 428(b)(1), by amending sub-
paragraph (N) to read as follows:
‘‘(N) provides that funds borrowed by a
student—
‘‘(i) are disbursed to the institution by
check or other means that is payable to,
and requires the endorsement or other cer-
tification by, such student, unless such stu-
dent requests that the check be endorsed,
or the funds transfer authorized, pursuant
to an authorized power-of-attorney; and
‘‘(ii) are, at the request of the stu-
dent, disbursed directly to the student by
the means described in clause (i), in the
case of a student who is studying outside
the United States in a program of study
abroad that is approved for credit by the
home institution at which such student is
enrolled or at an eligible foreign institu-
tion;’’;
(17) in section 428(b)(1)(U)—
(A) by striking ‘‘this clause;’’ and inserting
‘‘this clause’’; and
(B) by inserting a comma after ‘‘emer-
gency action’’ each place it appears;
(18) in section 428(b)(1), by striking subpara-
graph (V);
(19) in section 428(b)(2)(F)(i), by striking
‘‘each to provide a separate notice’’ and inserting ’’ei-
ther jointly or separately to provide a notice’’;
(20) in section 428(b)(2)(F)(ii), by striking
‘‘transferor’’ and inserting ‘‘transferee’’;
(21) in section 428(b)(2)(F)(ii)(I), by striking
‘‘to another holder’’;
(22) in section 428(b)(2)(F)(ii)(II), by striking
‘‘such other’’ and inserting ‘‘the new’’;
‘‘(II) the repayment period with re-
spect to principal begins in accordance
with subparagraph (A); and
‘‘(ii) if such loan is made to any other bor-
rower, the repayment or accrual of interest
shall begin as described in clause (i)(I), but the
borrower shall be required to elect whether the
repayment of principal shall begin as described
in clause (i)(II), or on the day immediately
after the student ceases to carry at least one-
half the normal full-time academic workload (as
determined by the institution).
‘‘(C) In the case of a loan made under section
428A, 428B, or 428C, the repayment period shall
begin on the day the loan is disbursed, or, if the
loan is disbursed in multiple installments, on the day
of the last such disbursement, and shall exclude any
period of authorized deferment or forbearance.’’;
(24) in section 428(b), by adding at the end
thereof the following new paragraph:
‘‘(8) MEANS OF DISBURSEMENT OF LOAN PRO-
CEEDS.—Nothing in this title shall be interpreted to
prohibit the disbursement of loan proceeds by means
other than by check or to allow the Secretary to re-
quire checks to be made co-payable to the institution
and the borrower.’’;
(25) in section 428(c)(1)(A), by striking the
last sentence and inserting the following: ‘‘A guar-
anty agency shall file a claim for reimbursement
with respect to losses under this subsection within
45 days after the guaranty agency discharges its in-
surance obligation on the loan.’’;
(26) in section 428(c)(2)(G), by striking ‘‘dem-
onstrates’’ and inserting ‘‘certifies’’;
(27) in section 428(c)(3), by striking subpara-
graph (A) and inserting the following:
‘‘(A) shall contain provisions providing
that—
‘‘(i) upon written request, a lender
shall grant a borrower forbearance, renew-
able at 12-month intervals, on terms
agreed to in writing by the parties to the
loan with the approval of the insurer, and
otherwise consistent with the regulations of
the Secretary, if the borrower—
‘‘(I) is serving in a medical or
dental internship or residency pro-
gram, the successful completion of
which is required to begin professional
practice or service, or is serving in a
medical or dental internship or resi-
dency program leading to a degree or
certificate awarded by an institution
of higher education, a hospital, or a
health care facility that offers post-
graduate training, provided that if the
borrower qualifies for a deferment
under section 427(a)(2)(C)(vii) or
subparagraph (M)(vii) of this para-
graph as in effect prior to the enact-
ment 
of 
the 
Higher 
Education
Amendments of 1992, or section
427(a)(2)(C) or subparagraph (M) of
this paragraph as amended by such
amendments, the borrower has ex-
hausted his or her eligibility for such
deferment; or
‘‘(II) has a debt burden under
this title that equals or exceeds 20
percent of income;
‘‘(ii) the length of the forbearance
granted by the lender—
‘‘(I) under clause (i)(I) shall
equal the length of time remaining in
the borrower’s medical or dental in-
ternship or residency program, if the
borrower is not eligible to receive a
deferment described in such clause, or
such length of time remaining in the
program after the borrower has ex-
hausted his or her eligibility for such
deferment; or
‘‘(II) under clause (i)(II) shall
not exceed 3 years; and
‘‘(iii) no administrative or other fee
may be charged in connection with the
granting of a forbearance under clause (i),
and no adverse information regarding a
borrower may be reported to a credit bu-
reau organization solely because of the
granting of such forbearance;’’;
(28) in section 428(e)(2)(A)—
(A) by striking ‘‘(i)’’;
(B) by striking ‘‘(I)’’ and inserting ‘‘(i)’’;
and
(C) by striking ‘‘(II)’’ and inserting ‘‘(ii)’’;
(29) in section 428(j)(2), in the matter preced-
ing subparagraph (A), by striking ‘‘lender of last re-
sort’’ and inserting ‘‘lender-of-last-resort’’;
(30) in section 428A(b)(1), by striking subpara-
graph (B) and inserting the following:
‘‘(B) In the case of a student at an eligible
institution who has successfully completed such
first and second years but has not successfully
completed the remainder of a program of un-
dergraduate education—
‘‘(i) $5,500; or
‘‘(ii) if such student is enrolled in a
program of undergraduate education, the
remainder of which is less than one aca-
demic year, the maximum annual loan
amount that such student may receive may
not exceed the amount that bears the same
ratio to the amount specified in subclause
(I) as such remainder measured in semes-
ter, trimester, quarter, or clock hours
bears to one academic year.’’;
(31) in section 428A(b)(1)—
(A) by redesignating subparagraph (C) as
subparagraph (D); and
(B) by inserting after subparagraph (B)
the following:
‘‘(C) For the purposes of this paragraph,
the number of years that a student has com-
pleted in a program of undergraduate education
shall include any prior enrollment in an eligible
program of undergraduate education for which
the student was awarded an associate or bacca-
laureate degree, if such degree is required by
the institution for admission to the program in
which the student is enrolled.’’;
(32) in section 428A(b)(3)(B)(i), by striking
‘‘section 428’’ and inserting ‘‘sections 428 and
428H’’;
(33) in section 428A(c)(1), by striking ‘‘sec-
tions 427 or 428(b)’’ and inserting ‘‘section 427 or
428(b)’’;
(34) in section 428B(c)(2), by striking ‘‘bor-
rower.’’ and inserting ‘‘borrower, and sent to such
institution.’’;
(35) in section 428C(a)(3)(A), by striking ‘‘de-
linquent or defaulted borrower who will reenter re-
payment through loan consolidation’’ and inserting
‘‘defaulted borrower who has made arrangements to
repay the obligation on the defaulted loans satisfac-
tory to the holders of the defaulted loan’’;
(36) in section 428C(a)(4)(A), by striking ‘‘,
except for loans made to parent borrowers under
section 428B as in effect prior to the enactment of
the Higher Education Amendments of 1986’’;
(37) in section 428C(a)(4)(C), by striking ‘‘part
C’’ and inserting ‘‘part A’’;
(38) in section 428C(c)(2)(A)(vi), by inserting a
period after ‘‘30 years’’;
(39) in section 428C(c)(3)(A), by inserting ‘‘be
an amount’’ before ‘‘equal to’’;
(40) in section 428F(a)(2)—
(A) by striking ‘‘this paragraph’’ and in-
serting ‘‘paragraph (1) of this subsection’’; and
(B) by striking ‘‘this section’’ and insert-
ing ‘‘this subsection’’;
(41) in section 428F(a)(4), by striking ‘‘this
paragraph’’ and inserting ‘‘paragraph (1) of this
subsection’’;
(42) in section 428F(b), by adding at the end
thereof the following new sentence: ‘‘A borrower may
only obtain the benefit of this subsection with re-
spect to renewed eligibility once.’’;
(43) in section 428G(c)(3), by striking ‘‘dis-
bursed’’ and inserting ‘‘disbursed by the lender’’;
(44) in section 428H(d)(2), by striking sub-
paragraph (B) and inserting the following:
‘‘(B) in the case of a student at an eligible
institution who has successfully completed such
first and second years but has not successfully
completed the remainder of a program of un-
dergraduate education, $5,000.’’;
(45) in section 428H(e)(1), by striking ‘‘shall
commence 6 months after the month in which the
student ceases to carry at least one-half the normal
full-time workload as determined by the institution.’’
and inserting ‘‘shall begin as described in section
428(b)(7)(B).’’;
(46) 
in 
section 
428H(e)(4), 
by 
striking
‘‘427A(e)’’ and inserting ‘‘427A’’;
(47) in section 428H, by redesignating sub-
section (l) as subsection (h);
(48) in section 428I(g), by striking ‘‘the Fed-
eral False Claims Act’’ and inserting ‘‘section 3729
of title 31, United States Code,’’;
(49) in section 428J(b)(1), by striking ‘‘sec-
tions 428A, 428B, or 428C’’ and inserting ‘‘section
428A, 428B, or 428C’’;
(50) in section 428J(b)(1)(B), by striking
‘‘agrees in writing to volunteer for service’’ and in-
serting ‘‘serves as a full-time volunteer’’;
(51) in section 428J(c)(1), by striking ‘‘aca-
demic year’’ each place it appears and inserting
‘‘year of service’’;
(52) in the heading for section 428J(d), by
striking ‘‘OF ELIGIBILITY’’ and inserting ‘‘TO ELIGI-
BLE’’;
(53) in section 428J, by amending subsection
(e) to read as follows:
‘‘(e) APPLICATION FOR REPAYMENT.—
‘‘(1) IN GENERAL.—Each eligible individual de-
siring loan repayment under this section shall sub-
mit a complete and accurate application to the Sec-
retary at such time, in such manner, and containing
such information as the Secretary may reasonably
require. Loan repayment under this section shall be
on a first-come, first-served basis and subject to the
availability of appropriations.
‘‘(2) CONDITIONS.—An eligible individual may
apply for repayment after completing each year of
qualifying service. The borrower shall receive for-
bearance while engaged in qualifying service.’’;
(54) in section 430A(f)(1), by striking the
comma at the end and inserting a semicolon;
(55) in section 432(m)(2)—
(A) by striking ‘‘DEFERMENT FORM’’ and
inserting ‘‘DEFERMENT FORMS’’; and
(B) by striking ‘‘a common deferment re-
porting 
form’’ 
and 
inserting 
‘‘common
deferment reporting forms’’;
(56) in section 433(b), in the matter preceding
paragraph (1), by striking ‘‘60 days’’ and inserting
‘‘30 days’’;
(57) in section 433(e), by striking ‘‘section
428A, 428B,’’ and inserting ‘‘sections 428A,
428B,’’;
(58) in section 435(d)(2)(D), by striking ‘‘lend-
er; and’’ and inserting ‘‘lender;’’;
(59) in section 435(d)(2), by increasing the in-
dentation of the matter following subparagraph (F)
by two em spaces;
(60) in section 435(d)(3), by striking ‘‘435(o)’’
and inserting ‘‘435(m)’’;
(61) in section 435(m)(1)(A), by striking ‘‘428
or 428A’’ and inserting ‘‘428, 428A, or 428H,’’;
(62) in section 435(m)(2)(D)—
(A) by inserting ‘‘(or the portion of a loan
made under section 428C that is used to repay
a loan made under section 428A)’’ after ‘‘sec-
tion 428A’’ the first place it appears; and
borrower, or the student on whose behalf a par-
ent borrowed, is unable’’; and
(C) by striking ‘‘in which the borrower is
enrolled’’ and inserting ‘‘in which such student
is enrolled’’; and
(65) in section 437(c)(4), by adding at the end
thereof the following sentence: ‘‘The amount of a
loan, and interest on a loan, which is canceled under
this subsection shall be treated the same as loans
under section 465(a)(5) of this title.’’
(66) in section 437A(a), in the matter preced-
ing paragraph (1), by striking ‘‘, to the extent of
funds appropriated under subsection (d)’’;
(67) in section 437A(c)(2), by inserting a pe-
riod at the end;
(68) in section 437A, by striking subsection (e);
and
(69) in section 439(r)(12), by striking ‘‘section
522’’ and inserting ‘‘section 552’’.
(d) AMENDMENT TO PART C OF TITLE IV OF THE
ACT.—Part C of title IV of the Act is amended—
(1) in section 442(d)(4)(C), by striking ‘‘three-
fourths in the Pell Grant family size offset’’ and in-
serting ‘‘150 percent of the difference between the
income protection allowance for a family of five with
one in college and the income protection allowance
for a family of six with one in college’’;
(2) in section 442(e)—
(A) by inserting ‘‘(1)’’ after the subsection
heading; and
(B) by adding at the end the following new
paragraph:
‘‘(2) If, under paragraph (1) of this subsection, an
institution returns more than 10 percent of its allocation,
the institution’s allocation for the next fiscal year shall
be reduced by the amount returned. The Secretary may
waive this paragraph for a specific institution if the Sec-
retary finds that enforcing this paragraph would be con-
trary to the interest of the program.’’;
(3) in section 443(b)(2)(A), by striking ‘‘insti-
tution;’’ and inserting ‘‘institution; and’’;
(4) in section 443(b), by amending paragraph
(5) to read as follows:
‘‘(5) provide that the Federal share of the com-
pensation of students employed in the work-study
program in accordance with the agreement shall not
exceed 75 percent for academic year 1993–1994 and
succeeding academic years, except that the Federal
share may exceed such amounts of compensation if
the Secretary determines, pursuant to regulations
promulgated by the Secretary establishing objective
criteria for such determinations, that a Federal
share in excess of such amounts is required in fur-
therance of the purpose of this part;’’; and
(5) in section 443(b)(8), by striking subpara-
graphs (A), (B), and (C) and inserting the following:
‘‘(A) that are only on campus and that—
‘‘(i) to the maximum extent prac-
ticable, complement and reinforce the edu-
cation programs or vocational goals of such
students; and
‘‘(ii) furnish student services that are
directly related to the student’s education,
as determined by the Secretary pursuant
to regulations, except that no student shall
be employed in any position that would in-
volve the solicitation of other potential stu-
dents to enroll in the school; or
‘‘(B) in community service in accordance
with paragraph (2)(A) of this subsection;’’.
(e) AMENDMENTS TO PART E OF TITLE IV OF THE
ACT.—Part E of title IV of the Act is amended—
(1) in section 462(a)(2)(D), by striking ‘‘if the
institution which has’’ and inserting ‘‘if the institu-
tion has’’;
(2) in section 462(d)(4)(C), by striking ‘‘three-
fourths in the Pell Grant family size offset’’ and in-
serting ‘‘150 percent of the difference between the
income protection allowance for a family of five with
one in college and the income protection allowance
for a family of six with one in college’’;
(3) in section 462(e), by reducing the indenta-
tion of paragraph (2) by two em spaces;
(4) in section 462(h)(4), by reducing the inden-
tation of subparagraph (B) by two em spaces;
(5) in section 463(a)(2)(B)(i)(II), by striking
‘‘7.5 percent’’ and inserting ‘‘7.5 percent for award
year 1993–1994 and has a cohort default rate which
does not exceed 15 percent for award year 1994–
1995 or for any succeeding award year’’;
(6) in section 463(c)(4), by striking ‘‘shall dis-
close’’ and inserting ‘‘shall at least annually dis-
close’’;
(7) in section 463, by adding at the end the fol-
lowing new subsections:
‘‘(d) LIMITATION ON USE OF INTEREST BEARING
ACCOUNTS.—In carrying out the provisions of subsection
(a)(10), the Secretary may not require that any collection
agency, collection attorney, or loan servicer collecting
loans made under this part deposit amounts collected on
such loans in interest bearing accounts, unless such agen-
cy, attorney, or servicer holds such amounts for more than
45 days.
‘‘(e) SPECIAL DUE DILIGENCE RULE.—In carrying
out the provisions of subsection (a)(5) relating to due dili-
gence, the Secretary shall make every effort to ensure that
institutions of higher education may use Internal Revenue
Service skip-tracing collection procedures on loans made
under this part.’’;
(8) in section 463A, by striking subsections (d)
and (e);
(9) in section 464(c)(2)(B) by striking ‘‘repay-
ment or’’ and inserting ‘‘repayment of’’;
(10) 
in 
section 
464(c)(6), 
by 
striking
‘‘Fullbright’’ and inserting ‘‘Fulbright’’;
(11) in section 464(e), by striking ‘‘principle’’
and inserting ‘‘principal’’;
(12) in section 465(a)(2)(D), by striking ‘‘serv-
ices’’ and inserting ‘‘service’’;
(13) in section 465(a)(2)(F), by striking ‘‘or’’
at the end;
(14) in section 465(a), by reducing the indenta-
tion of paragraph (6) by 2 em spaces; and
(15) in section 466(c), by reducing the indenta-
tion of paragraph (2) by two em spaces.
(f) AMENDMENTS TO PART F OF TITLE IV OF THE
ACT.—Part F of title IV of the Act is amended—
(1) in the table contained in sections 475(c)(4)
and 477(b)(4), by inserting ‘‘$’’ before ‘‘9,510’’;
(2) in section 475(f)(3)—
(A) by striking ‘‘Income in the case of a
parent’’ and inserting ‘‘If a parent’’;
(B) by striking ‘‘(1) of this subsection, or
a parent’’ and inserting ‘‘(1) of this subsection,
or if a parent’’; and
(C) by striking ‘‘is determined as follows:
The income’’ and inserting ‘‘the income’’;
(3) in section 475(g)(1)(B), by inserting a close
parentheses after ‘‘paragraph (2)’’;
(4) in the table contained in section 475(g)(3),
by adding a last row that is identical to the last row
of the table contained in section 476(b)(2);
(5) in section 476, by adding at the end thereof
the following new subsection:
‘‘(d) COMPUTATIONS IN CASE OF SEPARATION, DI-
VORCE, OR DEATH.—In the case of a student who is di-
vorced or separated, or whose spouse has died, the
spouse’s income and assets shall not be considered in de-
termining the family’s contribution from income or as-
sets.’’;
(6) in section 477 by adding at the end thereof
the following new subsection:
‘‘(e) COMPUTATIONS IN CASE OF SEPARATION, DI-
VORCE, OR DEATH.—In the case of a student who is di-
vorced or separated, or whose spouse has died, the
spouse’s income and assets shall not be considered in de-
termining the family’s available income or assets.’’;
(7) in section 478—
(A) by striking ‘‘1992–1993’’ each place it
appears and inserting ‘‘1993–1994’’; and
(B) in subsection (c)(1), by striking
‘‘1992’’ and inserting ‘‘1993’’;
(8) in section 478(h), by striking ‘‘Bureau of
Labor Standards’’ and inserting ‘‘Bureau of Labor
Statistics’’;
(9) in section 479(a)(1), by inserting ‘‘of’’ after
‘‘(c)’’;
(10) in section 479(b)(1)(B)(i)—
(A) by inserting ‘‘(and the student’s
spouse, if any)’’ after ‘‘student’’ each time it
appears; and
(B) by striking ‘‘such’’;
(11) in section 479(b)(2), by striking ‘‘five ele-
ments’’ and inserting ‘‘six elements’’;
(12) in section 479(b)(2)(E), by striking the
semicolon and inserting a comma;
(13) in section 480(c)(2), by striking ‘‘Title’’
each place it appears and inserting ‘‘United States
Code, title’’;
(14) in section 480(d)(2), by inserting ‘‘or was
a ward of the court until the individual reached the
age of 18’’ prior to the semicolon; and
(15) in section 480, by adding at the end the
following new subsections:
‘‘(k) DEPENDENTS.—(1) Except as otherwise pro-
vided, the term ‘dependent of the parent’ means the stu-
dent, dependent children of the student’s parents, includ-
ing those children who are deemed to be dependent stu-
dents when applying for aid under this title, and other
persons who live with and receive more than one-half of
their support from the parent and will continue to receive
more than half of their support from the parent during
the award year.
‘‘(2) Except as otherwise provided, the term ‘depend-
ent of the student’ means the student’s dependent children
and other persons (except the student’s spouse) who live
with and receive more than one-half of their support from
the student and will continue to receive more than half
of their support from the student during the award year.
‘‘(l) FAMILY SIZE.—(1) In determining family size in
the case of a dependent student—
‘‘(A) if the parents are not divorced or sepa-
rated, family members include the student’s parents,
and the dependents of the student’s parents includ-
ing the student;
‘‘(B) if the parents are divorced or separated,
family members include the parent whose income is
included in computing available income and that
parent’s dependents, including the student; and
‘‘(C) if the parents are divorced and the parent
whose income is so included is remarried, or if the
parent was a widow or widower who has remarried,
family members also include, in addition to those in-
dividuals referred to in subparagraph (B), the new
spouse and any dependents of the new spouse if that
spouse’s income is included in determining the par-
ents’ adjusted available income.
‘‘(2) In determining family size in the case of an inde-
pendent student—
‘‘(A) family members include the student, the
student’s spouse, and the dependents of the student;
and
‘‘(B) if the student is divorced or separated,
family members do not include the spouse (or ex-
spouse), but do include the student and the stu-
dent’s dependents.
‘‘(m) BUSINESS ASSETS.—The term ‘business assets’
means property that is used in the operation of a trade
or business, including real estate, inventories, buildings,
machinery, and other equipment, patents, franchise rights,
and copyrights.’’.
(g) AMENDMENTS TO PART G OF TITLE IV OF THE
ACT.—Part G of title IV of the Act is amended—
(1) in section 481(a)(3)(B), by inserting before
the semicolon the following: ‘‘, except that the Sec-
retary, at the request of such institution, may waive
the applicability of this subparagraph to such insti-
tution for good cause, as determined by the Sec-
retary’’;
(2) in section 481(a)(3)(D)—
(A) by striking ‘‘are admitted pursuant to
section 484(d)’’ and inserting ‘‘do not have a
high school diploma or its recognized equiva-
lent’’; and
(B) by inserting before the period the fol-
lowing: ‘‘, except that the Secretary may waive
the limitation contained in this subparagraph if
a nonprofit institution demonstrates to the sat-
isfaction of the Secretary that it exceeds such
limitation because it serves, through contracts
with Federal, State, or local government agen-
cies, significant numbers of students who do not
have a high school diploma or its recognized
equivalent’’;
(3) in section 481(a)(4), by amending subpara-
graph (A) to read as follows:
‘‘(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the direc-
tion of the management or policies of the insti-
tution, has filed for bankruptcy;’’;
(4) in section 481(d), by amending paragraph
(2) to read as follows:
‘‘(2) For the purpose of any program under this title,
the term ‘academic year’ shall require a minimum of 30
weeks of instructional time, and, with respect to an under-
graduate course of study, shall require that during such
minimum period of instructional time a full-time student
is expected to complete at least 24 semester or trimester
hours or 36 quarter hours at an institution that measures
program length in credit hours, or at least 900 clock hours
at an institution that measures program length in clock
hours.’’;
(5) in section 481(e) by striking paragraph (2)
and inserting the following:
‘‘(2)(A) A program is an eligible program for pur-
poses of part B of this title if it is a program of at least
300 clock hours of instruction, but less than 600 clock
hours of instruction, offered during a minimum of 10
weeks, that—
‘‘(i) has a completion rate of at least 70 per-
cent, as determined in accordance with the regula-
tions of the Secretary;
‘‘(ii) has a placement rate of at least 70 per-
cent, as determined in accordance with the regula-
tions of the Secretary; and
‘‘(iii) satisfies such further criteria as the Sec-
retary may prescribe by regulation.
‘‘(B) In the case of a program being determined eligi-
ble for the first time under this paragraph, such deter-
mination shall be made by the Secretary before such pro-
gram is considered to have satisfied the requirements of
this paragraph.’’;
(6) in section 481(f), by striking ‘‘State’’ and
inserting ‘‘individual, or any State,’’;
(7) in section 482(c), by adding at the end the
following new sentence: ‘‘For award year 1994–95,
this subsection will not apply to regulatory changes
affecting parts B, G, and H of this title.’’;
(8) in section 483(a)(1), by striking ‘‘section
411(d)’’ and inserting ‘‘section 401(d)’’;
(9) in section 483(a)(2), by inserting at the end
the following new sentence: ‘‘No data collected on a
form for which a fee is charged shall be used to
complete the form prescribed under paragraph (1).’’;
(10) in section 483(a)(3), by inserting at the
end the following sentence: ‘‘Entities designated by
institutions of higher education or States to receive
such data shall be subject to all requirements of this
section, unless such requirements are waived by the
Secretary.’’;
(11) in section 483(f), by striking ‘‘address, so-
cial security number,’’ and inserting ‘‘address or em-
ployer’s address, social security number or employer
identification number,’’;
(12) in section 484(a)(4)(B), by striking the
semicolon and inserting the following: ‘‘(or if the
student is ineligible for or unable to obtain a social
security number, such student’s identification num-
ber); and ’’;
(13) in section 484(a)(5), by striking ‘‘in the
United States for other than a temporary purpose
and able to provide evidence from the Immigration
and Naturalization Service of his or her intent to be-
come a permanent resident’’ and inserting ‘‘able to
provide evidence from the Immigration and Natu-
ralization Service that he or she is in the United
States for other than a temporary purpose with the
intention of becoming a citizen or permanent resi-
dent’’;
(14) in section 484(b)(2)—
(A) in subparagraph (A), by striking
‘‘and’’;
(B) in subparagraph (B), by striking the
period and inserting ‘‘; and’’; and
(C) after subparagraph (B), by inserting:
‘‘(C) has applied for a loan under section
428H, if eligible.’’;
(15) in section 484(b)(3), by striking ‘‘part B’’
and inserting ‘‘part B or D’’;
(16) in section 484, by striking subsection (f);
(17) in section 484(g), by inserting a comma
after ‘‘Part D’’ each place it appears;
(18) in section 484(h)(4)(B), by striking ‘‘con-
stitutes’’ and inserting ‘‘constitute’’;
(19) in section 484(i)(2)—
(A) by striking ‘‘(h)(4)(A)(ii)’’ and insert-
ing ‘‘(h)(4)(A)(i)’’; and
(B) by striking ‘‘documentation,’’ and in-
serting ‘‘documentation, or’’;
(20) in section 484(i)(3)—
(A) by striking ‘‘(h)(4)(B)(ii)’’ and insert-
ing ‘‘(h)(4)(B)(i)’’; and
(B) by striking ‘‘, or’’ and inserting a pe-
riod;
(21) in section 484(i), by striking paragraph
(4);
(22) in section 484(n), by striking ‘‘part B, C,’’
and inserting ‘‘parts B, C,’’;
(23) in section 484(q)(2), by striking ‘‘a correct
social security number’’ and inserting ‘‘documented
evidence of a social security number that is deter-
mined by the institution to be correct’’;
(24) in section 484B(a), by striking ‘‘grant,
loan, or work assistance’’ and inserting ‘‘grant or
loan assistance’’;
(25) in section 484B(b)(3), by striking ‘‘sub-
section (d)’’ and inserting ‘‘subsection (c)’’;
(26) in section 485(a)(1)(F)(iv), by inserting
‘‘under’’ after ‘‘awards’’;
(27) in section 485(a)(1)(F)(viii), by striking
the period;
(28) in section 485(a)(1)(F), by striking clause
(vi) and redesignating clauses (vii) and (viii) as
clauses (vi) and (vii), respectively;
(29) in section 485(a)(1)(L), by inserting a
comma after ‘‘full-time’’;
(30) in section 485(a)(3), by striking subpara-
graph (A) and inserting the following:
‘‘(A) shall, for any academic year begin-
ning more than 270 days after the Secretary
first prescribes final regulations pursuant to
such subparagraph (L), be made available to
current and prospective students prior to enroll-
ing or entering into any financial obligation;’’;
(31) in paragraphs (1)(A) and (2)(A) of section
485(b), by striking ‘‘under parts’’ and inserting
‘‘under part’’;
(32) in section 485(e), by adding at the end the
following new paragraph:
‘‘(9) This subsection shall not be effective until the
first July 1 that follows, by more than 270 days, the date
on which the Secretary first prescribes final regulations
pursuant to this subsection. The reports required by this
subsection shall be due on that July 1 and each succeeding
July 1 and shall cover the 1-year period ending June 30
of the preceding year.’’;
(33) in section 485B(a)—
(A) by striking ‘‘part E’’ and inserting
‘‘parts D and E’’; and
(B) by striking the second period at the
end of the third sentence;
(34) in section 485B(a)(4), by striking ‘‘part
E’’ and inserting ‘‘parts D and E’’;
(35) in section 485B(c), by striking ‘‘part B or
part E’’ and inserting ‘‘part B, D, or E’’;
(36) in section 485B(e), by striking ‘‘under this
part’’ each place it appears and inserting ‘‘under
this title’’;
(37) in section 487(a)(2), by striking ‘‘, or for
completing or handling the Federal Student Assist-
ance Report’’;
(38) in section 487(c)(1)(F), by striking ‘‘eligi-
bility for any program under this title of any other-
wise eligible institution,’’ and inserting ‘‘participa-
tion in any program under this title of an eligible in-
stitution,’’;
(39) in section 489(a), by striking ‘‘484(c)’’
and inserting ‘‘484(h)’’; and
(40) in section 491(h)(1), by striking ‘‘subtitle
III’’ and inserting ‘‘subchapter III’’.
(h) AMENDMENTS TO PART H OF TITLE IV OF THE
ACT.—Part H of title IV of the Act is amended—
(1) in section 494C(a), by striking the first and
second sentences and inserting the following: ‘‘The
Secretary shall review all eligible institutions of
higher education in a State to determine if any such
institution meets any of the criteria in subsection
(b). If any such institution meets one or more of
such criteria, the Secretary shall inform the State in
which such institution is located that the institution
has met such criteria, and the State shall review the
institution pursuant to the standards in subsection
(d). The Secretary may determine that a State need
not review an institution if such institution only
meets the criterion in subsection (b)(10), such insti-
tution was previously reviewed by the State under
subsection (d), and the State determined in such
previous review that the institution did not violate
any of the standards in subsection (d).’’;
(2) in section 494C(i), by striking ‘‘sections 428
or 487’’ and inserting ‘‘section 428 or 487’’;
(3) in section 496(a)(2)(A)(i), by inserting ‘‘of
institutions’’ after ‘‘membership’’;
(4) in section 496(a)(3)(A), by striking ‘‘sub-
paragraph 
(A)’’ 
and 
inserting 
‘‘subparagraph
(A)(i)’’;
(5) in section 496(a)(5)—
(A) by striking the period at the end of
subparagraph (L) and inserting a semicolon;
and
(B) by inserting after subparagraph (L)
the following:
‘‘except that subparagraphs (G), (H), (I), (J), and (L)
shall not apply to agencies or associations described in
paragraph (2)(A)(ii) of this subsection;’’;
(6) in section 496(c), by striking ‘‘for the pur-
pose of this title’’ and inserting ‘‘as a reliable au-
thority as to the quality of education or training of-
fered by an institution seeking to participate in the
programs authorized under this title’’;
(7) in section 496(l)(2)—
(A) by striking ‘‘institutution’’ and insert-
ing ‘‘institution’’; and
(B) by striking ‘‘association leading to the
suspension’’ and inserting ‘‘association, de-
scribed in paragraph (2)(A)(i), (2)(B), or
(2)(C) of subsection (a) of this section, leading
to the suspension’’;
(8) in section 496(n)(1), by amending subpara-
graph (B) to read as follows:
‘‘(B) site visits, including unannounced site vis-
its as appropriate, at accrediting agencies and asso-
ciations, and, at the Secretary’s discretion, at rep-
resentative member institutions.’’;
(9) in section 498(c)(3), by amending subpara-
graph (C) to read as follows:
‘‘(C) such institution establishes to the satisfac-
tion of the Secretary, with the support of a report
of an independent certified public accountant pre-
pared under generally accepted accounting principles
(except as provided herein), that the institution has
sufficient resources (which shall include, as a cur-
rent asset, the equity in land, buildings, and other
facilities owned and occupied by such institution and
used to provide the education and training services
described in such institution’s official publications
and statements) to ensure against precipitous clo-
sure, including the ability to meet all of its financial
obligations, 
including 
refunds 
of 
institutional
charges and repayments to the Secretary for liabil-
ities and debts incurred in programs administered by
the Secretary; or’’;
(10) in section 498(f), by inserting after the
second sentence the following: ‘‘The Secretary may
establish priorities by which institutions are to re-
ceive site visits, and may coordinate such visits with
site visits by States, guaranty agencies, and accred-
iting bodies in order to eliminate duplication, and re-
duce administrative burden.’’;
(11) in section 498(h)(1)(B), by amending
clause (iii) to read as follows:
‘‘(iii) the Secretary determines that an in-
stitution that seeks to renew its certification is,
in the judgment of the Secretary, in an admin-
istrative or financial condition that may jeop-
ardize its ability to perform its financial respon-
sibilities under a program participation agree-
ment.’’;
(12) in section 498(h)(3), by striking ‘‘the Sec-
retary may terminate’’; and inserting ‘‘the Secretary
may, after providing the institution an opportunity
to show that the institution meets those responsibil-
ities, terminate’’;
(13) in section 498, by amending subsection
(i)(1) to read as follows:
‘‘(i) TREATMENT OF CHANGES OF OWNERSHIP.—(1)
An eligible institution of higher education that has had
a change in ownership resulting in a change of control
shall not qualify to participate in programs under this title
after the change in control (except as provided in para-
graph (3)) unless it establishes that it meets the require-
ments of section 481 (other than the requirements in sub-
sections (b)(5) and (c)(3)) and this section after such
change in control.’’;
(14) in section 498(i)(3), by amending subpara-
graph (A) to read as follows:
‘‘(A) the sale or transfer, upon the death of an
owner of an institution, of the ownership interest of
the deceased in that institution to a family member
or to a person holding an ownership interest in that
institution; or’’;
(15) in section 498(j), by amending subsection
(j)(1) to read as follows:
‘‘(j) TREATMENT OF BRANCHES.—(1) A branch of
an eligible institution of higher education, as defined pur-
suant to regulations of the Secretary, must be certified
under this subpart before it may participate as part of
such institution in a program under this title, except that
such branch shall not be required to meet the require-
ments of sections 481(b)(5) and 481(c)(3) prior to seeking
such certification. Such branch is required to be in exist-
ence at least 2 years prior to seeking certification as a
main campus or free-standing institution.’’; and
(16) in section 498A(e), by striking ‘‘Act,’’ and
inserting ‘‘Act’’.
(i) AMENDMENTS TO TITLES V THROUGH XII OF
THE ACT.—The Act is amended—
(1) in section 505(b)(2)(D)(iii), by striking the
period and inserting a semicolon;
(2) in section 525, by striking subsection (c)
and inserting the following:
‘‘(c) WAIVERS.—For purposes of giving special con-
sideration under section 523(d), a State may waive the
criteria contained in the first sentence of subsection (b)
for up to 25 percent of individuals receiving Paul Douglas
Teacher Scholarships on or after July 1, 1993.’’;
(3) in the first sentence of section 530A—
(A) by striking ‘‘means’’ and inserting ‘‘is
determined both during a scholar’s education
and when the scholar begins teaching and
means’’; and
(B) by striking ‘‘elementary and secondary
school teachers’’ each place it appears and in-
serting ‘‘preschool, elementary, and secondary
school teachers’’;
(4) in section 535(b)(1)(C), by striking the
semicolon and inserting a period;
(5) in section 537(a), by inserting ‘‘IN’’ before
‘‘GENERAL’’;
(6) in section 545(d), by striking ‘‘parts B, D,’’
and inserting ‘‘part B, D,’’;
(7) in section 580B, by striking ‘‘(a) Authoriza-
tion.—’’;
(8) 
in 
section 
581(b)(2), 
by 
striking
‘‘402A(g)(2)’’ and inserting ‘‘402A(g)’’;
(9) in section 597(d)(1), by striking ‘‘Develop-
ment and’’ and inserting ‘‘and Development’’;
(10) in section 602(a)(3), by striking ‘‘(1)(A)’’
and inserting ‘‘(1)’’;
(11) in section 602(a)(4), by striking ‘‘(1)(A)’’
and inserting ‘‘(1)’’;
(12) in section 603(a), by striking ‘‘RE-
SOURCES’’ and inserting ‘‘Resource’’;
(13) in section 607(c), by redesignating the last
paragraph as paragraph (3);
(14) in section 714, by striking ‘‘(a) IN GEN-
ERAL.—’’;
(15) in section 715(b)—
(A) by striking ‘‘(1) STATE GRANTS.—’’;
(B) by redesignating subparagraphs (A)
and (B) as paragraphs (1) and (2);
(C) in paragraph (2) (as so redesignated)
by redesignating clauses (i), (ii), and (iii) as
subparagraphs (A), (B), and (C), respectively;
and
(D) by reducing the indentation of such
paragraphs (1) and (2) (as so redesignated) by
two em spaces;
(16) in section 725—
(A) 
by 
redesignating 
paragraphs 
(2)
through (5) as subparagraphs (3) through (6),
respectively; and
(B) by inserting after paragraph (1) the
following:
‘‘(2) shall require that the first loans for capital
projects authorized under section 723 be made no
later than March 31, 1994, and that the provisions
of part B be administered under the Education De-
partment 
General 
Administrative 
Regulations
(EDGAR), if final regulations have not been com-
pleted by that date to implement the provisions of
part B;’’
(17) in section 726, by inserting a period after
‘‘title’’ the first time it appears and striking the re-
mainder of the sentence;
(18) in section 731(a), by striking ‘‘faculties,’’
and inserting ‘‘faculty,’’;
(19) in section 731(c), by striking ‘‘enactment
of’’;
(20) in section 734(e)—
(A) by striking ‘‘FACULTIES’’ and inserting
‘‘FACULTY’’; and
(B) by striking ‘‘faculties’’ and inserting
‘‘faculty’’;
(21) in section 781(b), by striking ‘‘Education
Amendments of 1992,’’ and inserting ‘‘Education
Amendments of 1992’’;
(22) in section 782(1)(A), by striking ‘‘out-
patient care of student’’ and inserting ‘‘outpatient
care of students’’;
(23) in the matter preceding paragraph (1) of
section 802(b), by inserting after ‘‘fiscal year’’ the
following: ‘‘the Secretary shall reserve such amount
as is necessary to make continuing awards to insti-
tutions of higher education that were, on the date of
enactment of the Higher Education Amendments of
1992, operating an existing cooperative education
program under a multiyear project award and to
continue to pay to such institutions the Federal
share in effect on the day before such date of enact-
ment. Of the remainder of the amount appropriated
in such fiscal year’’;
(24) in section 803(b)(6)(A), by striking out
‘‘data’’;
(25) in section 803(e)(2)—
(A) by striking ‘‘Mexican American’’ and
inserting ‘‘Mexican-American’’; and
(B) by striking ‘‘Mariana’’ and inserting
‘‘Marianian’’;
(26) in section 901(b)(2), by striking ‘‘such
part’’ and inserting ‘‘such title’’;
(27) in section 922, by striking subsection (f)
and inserting the following:
‘‘(f) INSTITUTIONAL PAYMENTS.—(1) The Secretary
shall pay to the institution of higher education, for each
individual awarded a fellowship under this part at such
institution, an institutional allowance. Except as provided
in paragraph (2), such allowance shall be—
‘‘(A) $6,000 annually with respect to individ-
uals who first received fellowships under this part
prior to academic year 1993–1994;
‘‘(B) with respect to individuals who first re-
ceive fellowships during or after academic year
1993–1994—
‘‘(i) $9,000 for the academic year 1993–
1994;
‘‘(ii) for succeeding academic years, $9,000
adjusted annually thereafter in accordance with
inflation as determined by the Department of
Labor’s Consumer Price Index for the previous
calendar year.
‘‘(2) The institutional allowance paid under para-
graph (1) shall be reduced by the amount the institution
charges and collects from a fellowship recipient for tuition
and other expenses as part of the recipient’s instructional
program.’’;
(28) 
in 
the 
second 
sentence 
of 
section
923(b)(1), by striking ‘‘granting of such fellowships’’
and all that follows through ‘‘set forth in this sec-
tion,’’ and inserting ‘‘granting of such fellowships
for an additional period of study not to exceed one
12-month period,’’;
(29) in section 923(b)(2), by striking out the
second and third sentences and inserting the follow-
ing: ‘‘Such period shall not exceed a total of 3 years,
consisting of not more than 2 years of support for
study or research, and not more than 1 year of sup-
port for dissertation work provided that the student
has attained satisfactory progress prior to the dis-
sertation stage, except that the Secretary may pro-
vide by regulation for the granting of such fellow-
ships for an additional period of study not to exceed
one 12-month period, under special circumstances
which the Secretary determines would most effec-
tively serve the purposes of this part. The Secretary
shall make a determination to provide such 12-
month extension of an award to an individual fellow-
ship recipient for study or research upon review of
an application for such extension by the recipient.
The institution shall provide 2 years of support for
each student following the years of Federal
predissertation support under this part. Any student
receiving an award for graduate study leading to a
doctoral degree shall receive at least 1 year of super-
vised training in instruction during his or her doc-
toral program.’’;
(30) in section 923(b), by adding at the end the
following new paragraph:
‘‘(3) CONTINUATION OF AWARDS UNDER PRIOR
LAW.—Notwithstanding any other provision of law,
in the case of an individual who was awarded a
multiyear fellowship under this part before the date
of enactment of the Higher Education Amendments
of 1992, awards to such individual for the remainder
of such fellowship may, at the discretion of the insti-
tution of higher education attended by such individ-
ual, be subject to the requirements of this subsection
as in effect prior to such date of enactment. The in-
stitution shall be required to exercise such discretion
at the time that its application to the Secretary for
a grant under this part, and the amount of any such
grant, are being considered by the Secretary.’’;
(31) in section 924, by adding at the end there-
of the following new sentence: ‘‘Notwithstanding any
other provision of law, the Secretary may use funds
appropriated pursuant to this section for fiscal year
1994 to make continuation awards under section
923(b)(3) to individuals who would have been eligi-
ble for such awards in fiscal year 1993 if such sec-
tion had been in effect.’’;
(32) in section 931(a), by inserting after the
first sentence the following new sentence: ‘‘These fel-
lowships shall be awarded to students intending to
pursue a doctoral degree, except that fellowships
may be granted to students pursuing a master’s de-
gree in those fields in which the master’s degree is
commonly accepted as the appropriate degree for a
tenured-track faculty position in a baccalaureate de-
gree-granting institution.’’;
(33) in the third sentence of section 932(a)(1),
by striking ‘‘doctoral’’ and inserting ‘‘graduate’’;
(34) in section 932(c), by striking ‘‘doctoral’’
and inserting ‘‘graduate’’;
(35) in section 933(b), by striking paragraph
(1) and inserting the following:
‘‘(1) IN GENERAL.—(A) The Secretary shall (in
addition to stipends paid to individuals under this
part) pay to the institution of higher education, for
each individual awarded a fellowship under this part
at such institution, an institutional allowance. Ex-
cept as provided in subparagraph (B), such allow-
ance shall be—
‘‘(i) $6,000 annually with respect to indi-
viduals who first received fellowships under this
part prior to academic year 1993–1994;
‘‘(ii) with respect to individuals who first
receive fellowships during or after academic
year 1993–1994—
‘‘(I) $9,000 for the academic year
1993–1994;
‘‘(II) for succeeding academic years,
$9,000 adjusted annually thereafter in ac-
cordance with inflation as determined by
the Department of Labor’s Consumer
Price Index for the previous calendar year.
‘‘(B) The institutional allowance paid under
subparagraph (A) shall be reduced by the amount
the institution charges and collects from a fellowship
recipient for tuition and other expenses as part of
the recipient’s instructional program.’’;
(36) in section 941, by striking ‘‘the part’’ and
inserting ‘‘this part’’;
(37) in section 943(b), by striking ‘‘foreign lan-
guages or area studies’’ and inserting ‘‘foreign lan-
guages and area studies’’;
(38) in section 945, by striking subsection (c)
and inserting the following:
‘‘(c) TREATMENT OF INSTITUTIONAL PAYMENTS.—
An institution of higher education that makes institutional
payments for tuition and fees on behalf of individuals sup-
ported by fellowships under this part in amounts that ex-
ceed the institutional payments made by the Secretary
pursuant to section 946(a) may count such payments to-
ward the amounts the institution is required to provide
pursuant to section 944(b)(2).’’;
(39) in section 946, by striking subsection (a)
and inserting the following:
‘‘(f) INSTITUTIONAL PAYMENTS.—(1) The Secretary
shall (in addition to stipends paid to individuals under this
part) pay to the institution of higher education, for each
individual awarded a fellowship under this part at such
institution, an institutional allowance. Except as provided
in paragraph (2), such allowance shall be—
‘‘(A) $6,000 annually with respect to individ-
uals who first received fellowships under this part
prior to academic year 1993–1994;
‘‘(B) with respect to individuals who first re-
ceive fellowships during or after academic year
1993–1994—
‘‘(i) $9,000 for the academic year 1993–
1994;
‘‘(ii) for succeeding academic years, $9,000
adjusted annually thereafter in accordance with
inflation as determined by the Department of
Labor’s Consumer Price Index for the previous
calendar year.
‘‘(2) The institutional allowance paid under para-
graph (1) shall be reduced by the amount the institution
charges and collects from a fellowship recipient for tuition
do not take into account the unique circumstances in
Guam, the Virgin Islands, American Samoa, the Republic
of Palau, the Commonwealth of the Northern Mariana Is-
lands, and the freely associated states.
‘‘(b) Notwithstanding any other provision of law, an
institution of higher education that is located in any of
the freely associated states, rather than a State, shall be
eligible, if otherwise qualified, for assistance under chapter
1 of subpart 2 of part A of title IV of this Act.’’;
(48) in section 1205, in the section heading, by
inserting ‘‘NATIONAL
ADVISORY’’ before ‘‘COM-
MITTEE’’;
(49) in section 1205(a), by inserting ‘‘National
Advisory’’ before ‘‘Committee’’ the first place it ap-
pears;
(50) in paragraphs (1) and (6) of section
1205(c), by inserting ‘‘of title IV of this Act’’ after
‘‘part H’’;
(51) in section 1205(f), by striking ‘‘Accredita-
tion and Institutional Eligibility’’ and inserting ‘‘In-
stitutional Quality and Integrity’’;
(52) in section 1209(f)(1), by striking ‘‘the
Act’’ and inserting ‘‘this Act’’;
(53) in title XII, by redesignating section 1211
(as added by section 6231 of the Omnibus Trade
and Competitiveness Act of 1988) as section 1212;
and
(54) in section 1212(e)(2) (as so redesignated),
by inserting close quotation marks after ‘‘facilities’’
the first place it appears.
(j) AMENDMENTS TO THE 1992 AMENDMENTS.—The
Higher Education Amendments of 1992 is amended—
(1) in section 401(d)(2)(A), by inserting ‘‘the
first place it appears’’ before ‘‘the following:’’;
(2) in section 425(d)(1)—
(A) by inserting ‘‘the second sentence of’’
after ‘‘(1) in’’; and
(B) by striking ‘‘in the second sentence’’;
(3) in section 425(d)(4)—
(A) by inserting ‘‘the second sentence of’’
after ‘‘(4) in’’; and
(B) by striking ‘‘in the second sentence’’;
(4) in section 426(c), by striking ‘‘new sub-
sections’’ and inserting ‘‘new subsection’’;
(5) 
in 
section 
432(a)(3), 
by 
striking
‘‘427(a)(2)(C) and 428(b)(1)(M)’’ and inserting
‘‘427(a)(2)(C), 428(b)(1)(M), and 428B(d)(1)’’;
(6) in section 432(a)—
(A) by redesignating paragraphs (13),
(14), and (15), as paragraphs (14), (15), and
(16), respectively; and
(B) by inserting immediately after para-
graph (12) the following new paragraph:
‘‘(13) that the changes made to subsections (a)
and (c) of section 435, as they relate to the elimi-
nation of vocational schools from the definition of an
eligible institution and to the repeal of the definition
of a vocational school, shall be effective as of the ef-
fective date of final regulations implementing section
481(e)(2)(A) of the Act;’’;
(7) in section 446, by striking subsection (c);
(8) in section 465(a), by amending paragraph
(1) to read as follows:
‘‘(1) in subparagraph (A), by striking ‘and such
determination’ and all that follows through ‘such
chapter 1’;’’;
(9) in section 484, by inserting after subsection
(h) the following new subsection:
‘‘(i) EFFECTIVE DATE.—The amendments made by
subsection (g) with respect to the addition of subsection
(n) shall be effective on and after December 1, 1987.’’;
(10) in section 486(a)(3), by striking ‘‘section
1’’ and inserting ‘‘section 103’’;
(11) in section 498—
(A) by redesignating paragraphs (3), (4),
(5), (6), and (7) as paragraphs (4), (5), (6),
(7), and (8), respectively;
(B) by inserting immediately after para-
graph (2) the following new paragraph:
‘‘(3) the changes made to section 481(b) and
(c), relating to the references to an eligible program,
shall be effective as of the effective date of final reg-
ulations implementing section 481(e)(2)(A) of the
Act;’’; and
(C) by amending paragraph (4) (as redes-
ignated by subparagraph (A)) to read as fol-
lows:
‘‘(4) section 481(e), as added by such amend-
ments, relating to the definition of an eligible pro-
gram, shall be effective as of the effective date of
final regulations implementing paragraph (2)(A) of
such section;’’;
(12) in section 1409(b)(1), by striking ‘‘the As-
bestos Hazard Emergency Response Act’’ and in-
serting ‘‘section 202 of the Toxic Substances Control
Act (15 U.S.C. 2642)’’;
(13) in section 1422(9), by striking ‘‘has
placed’’ and inserting ‘‘have placed’’;
(14) in section 1442(c), by striking ‘‘Chair-
man’’ and inserting ‘‘Chairperson’’;
(15) in section 1541(g), by striking ‘‘edu-
cational’’ and inserting ‘‘education’’; and
(16) in section 1554(a)(1), by striking ‘‘4’’ and
inserting ‘‘6’’.
(k) AMENDMENT TO THE 1986 AMENDMENT.—Sec-
tion 1507(a)(12) of the Higher Education Amendments
of 1986 is amended by striking the period and inserting
a semicolon.
(l) ACCREDITATION THROUGH TRANSFER OF CRED-
IT.—(1) An institution of higher education which satisfied
the requirements of section 1201(a)(5)(B) of the Act prior
to the enactment of the Higher Education Amendments
of 1992, shall be considered to meet the requirements of
section 1201(a)(5) of the Act if—
(A) within 60 days after the date of enactment
of the Higher Education Technical Amendments of
1993, such institution has applied for accreditation
by a nationally recognized accrediting agency or as-
sociation which the Secretary determines, pursuant
to subpart 2 of part H of title IV of the Act, to be
a reliable authority as to the quality of education or
training offered; and
(B) within 2 years of the date of enactment of
the Higher Education Technical Amendments of
1993, such institution is accredited by such an ac-
crediting agency or association or, if not so accred-
ited, has been granted preaccreditation status by
such an agency or association that has been recog-
nized by the Secretary for the granting of
preaccreditation status, and the Secretary has deter-
mined that there is satisfactory assurance that the
institution will meet the accreditation standards of
such an agency or association within a reasonable
time.
(2) Paragraph (1) of this subsection shall be effective
July 23, 1992.
Æ
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