quarter ending the previous March 31, June 30, 
September 30, or December 31.’’. 
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) 
Section 
427(a)(2)(H) 
(20 
U.S.C. 
1077(a)(2)(H)) is amended by inserting after ‘‘regu-
lations of the Secretary’’ the following: ‘‘or in ac-
cordance with a special transition assistance plan as 
provided in section 428(b)(9)(C)’’. 
(2) 
Section 
428(b)(1)(E)(i) 
(20 
U.S.C. 
1078(b)(1)(E)(i)) is amended by inserting after 
‘‘regulations of the Secretary’’ the following: ‘‘or in 
accordance with a special transition assistance plan 
as provided in section 428(b)(9)(C)’’. 
(3) 
Section 
428(b)(1)(L)(i) 
(20 
U.S.C. 
1078(b)(1)(L)(i)) is amended by inserting before ‘‘, 
be less than $600’’ the following: ‘‘or the borrower 
is in the first 24 months after the borrower elected 
a special transition assistance plan as provided in 
section 428(b)(9)(C)’’. 
(4) Section 428C(a)(4)(A) (20 U.S.C. 1078–
3(a)(4)(A)) is amended by inserting before the semi-
colon the following: ‘‘except a loan for which the bor-
rower elected a special transition assistance plan as 
provided in section 428(b)(9)(C)’’.
(5) Section 428J(e)(1) (20 U.S.C. 1078–
10(e)(1)) is amended by adding at the end the fol-
lowing new sentence: ‘‘A loan for which the borrower 
elected a special transition assistance plan as pro-
vided in section 428(b)(9)(C) is not eligible for re-
payment under this section.’’. 
SEC. 7. SUPPORT FOR ACADEMIC CREDIT TRANSFERS. 
Subpart 2 of part A of title IV of the Higher Edu-
cation Act of 1965 is amended—
(1) by redesignating section 407E as section 
406E; and 
(2) by inserting after chapter 3 (20 U.S.C. 
1070a–31 et seq.) the following new chapter: 
‘‘CHAPTER 4—SUPPORT FOR ACADEMIC 
CREDIT TRANSFERS 
‘‘SEC. 407A. PURPOSE. 
‘‘It is the purpose of this chapter to enhance opportu-
nities of students to transfer between institutions in order 
to complete bachelor’s degrees by supporting the develop-
ment and implementation of articulation and guaranteed 
transfer agreements. 
‘‘SEC. 407B. ACTIVITIES. 
‘‘(a) GRANTS AUTHORIZED.—From the amounts ap-
propriated under section 407C, the Secretary shall award 
grants to a partnership that includes two or more institu-
tions of higher education, at least one of which offers a 
baccalaureate or postbaccalaureate degree. 
‘‘(b) USE OF FUNDS.—Grants awarded under this 
part shall be used for—
‘‘(1) the development of policies to promote the 
transfer of academic credits between institutions and 
expanding articulation and guaranteed transfer 
agreements; 
‘‘(2) support services to students participating 
in the program, such as tutoring, mentoring, and 
academic and personal counseling, as well as any 
service that facilitates the transition of students be-
tween the partner institutions; 
‘‘(3) academic program enhancements at the 
community or technical college that result in increas-
ing the quality of the program offered and the num-
ber of student participants in the dual degree pro-
gram offered in conjunction with a baccalaureate de-
gree granting institution; and 
‘‘(4) programs to identify barriers that inhibit 
student transfers. 
‘‘(c) APPLICATIONS.—Any partnership that desires to 
obtain a grant under this section shall submit to the Sec-
retary an application at such time, in such manner, and
containing such information or assurances as the Sec-
retary may require. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out this 
section. 
‘‘SEC. 407C. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There 
are 
authorized 
to 
be 
appropriated 
$70,000,000 to carry out this chapter for fiscal year 2004 
and such sums as may be necessary for each of the 3 suc-
ceeding fiscal years.’’. 
SEC. 8. FINANCIAL AID ADMINISTRATOR DISCRETION. 
Section 479A(a) (20 U.S.C. 1087tt(a)) is amended—
(1) by inserting ‘‘as described in paragraph 
(1)’’ after ‘‘on the basis of adequate documenta-
tion’’; and 
(2) by inserting ‘‘on a case-by-case basis to’’ 
after ‘‘on a case-by-case basis to the cost of attend-
ance or’’. 
SEC. 9. PREVENTION OF EXCESSIVE DEBT. 
Section 479A(c) (20 U.S.C. 1087tt(c)) is amended—
(1) by inserting ‘‘or on a program, class-year, 
or institution-wide basis’’ after ‘‘On a case-by-case 
basis’’; and 
(2) by adding at the end the following new sen-
tences: ‘‘An institution may not refuse to certify, or
reduce the amount certified for, a loan under part 
B in order to require the student to borrow a loan 
under part D if the student has remaining loan eligi-
bility under part B. An institution that refuses or 
reduces a certification under this subsection may 
subsequently certify or increase the amount certified, 
subject to the remaining loan eligibility of the stu-
dent borrower.’’.
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