I 
108TH CONGRESS 
1ST SESSION 
H. R. 12
To make changes to the Higher Education Act of 1965 incorporating the 
results of the FED UP Initiative, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2003
Mr. MCKEON (for himself, Mr. BOEHNER, Mr. ISAKSON, Mr. PETRI, Mrs. 
MCCARTHY of New York, Mr. BALLENGER, Mr. SOUDER, Mr. KIND, Mr. 
TIBERI, Mr. KELLER, Mr. WU, Mr. OSBORNE, Mr. WILSON of South 
Carolina, and Mr. BOYD) introduced the following bill; which was referred 
to the Committee on Education and the Workforce 
A BILL 
To make changes to the Higher Education Act of 1965 
incorporating the results of the FED UP Initiative, and 
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Fed Up Higher Education Technical Amendments Act 
of 2003’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents. 
Sec. 2. Reference; effective date; implementation.
TITLE I—TECHNICAL AMENDMENTS 
Sec. 101. Technical amendments. 
Sec. 102. Clerical amendments. 
Sec. 103. Study of teacher preparation. 
TITLE II—STUDENT LOAN FORGIVENESS 
Sec. 201. Cancellation of student loan indebtedness for spouses, surviving joint 
debtors, and parents. 
TITLE III—OPPORTUNITIES FOR HIGHER EDUCATION VIA 
TELECOMMUNICATIONS 
Sec. 301. Exception to 50 percent correspondence course limitations. 
Sec. 302. Evaluation and report.
SEC. 2. REFERENCE; EFFECTIVE DATE; IMPLEMENTATION. 
(a) REFERENCE.—Except as otherwise expressly pro-
vided in this Act, 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 con-
sidered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 
(b) EFFECTIVE DATE.—Except as otherwise provided 
in this Act, the amendments made by this Act shall take 
effect on the date of enactment of this Act. 
(c) IMPLEMENTATION.—Sections 482(c) and 492 of 
the Higher Education Act of 1965 (20 U.S.C. 1089(c), 
1098a) shall not apply to the regulations implementing the 
amendments made by this Act. 
TITLE I—TECHNICAL 
AMENDMENTS 
SEC. 101. TECHNICAL AMENDMENTS. 
(a) AMENDMENTS TO TITLE I.—
(1) Section 101(a)(1) (20 U.S.C. 1001(a)(1)) is 
amended by inserting before the semicolon at the 
end the following: ‘‘, or students who meet the re-
quirements of section 484(d)(3)’’. 
(2)(A) 
Section 
102(a)(2)(A) 
(20 
U.S.C. 
1002(a)(2)(A)) is amended to read as follows: 
‘‘(A) IN
GENERAL.—For the purpose of 
qualifying as an institution under paragraph 
(1)(C), the Secretary shall establish criteria by 
regulation for the approval of institutions out-
side the United States and for the determina-
tion that such institutions are comparable to an 
institution of higher education as defined in 
section 101 (except that a graduate medical 
school, or a veterinary school, located outside 
the United States shall not be required to meet 
the requirements of section 101(a)(4)). Such 
criteria shall include a requirement that a stu-
dent attending such school outside the United 
States is ineligible for loans made, insured, or 
guaranteed under part B of title IV unless—
‘‘(i) in the case of a graduate medical 
school located outside the United States—
‘‘(I)(aa) at least 60 percent of 
those enrolled in, and at least 60 per-
cent of the graduates of, the graduate 
medical school outside the United 
States were not persons described in 
section 484(a)(5) in the year pre-
ceding the year for which a student is 
seeking a loan under part B of title 
IV; and 
‘‘(bb) at least 60 percent of the 
individuals who were students or 
graduates of the graduate medical 
school outside the United States or 
Canada (both nationals of the United 
States and others) taking the exami-
nations administered by the Edu-
cational Commission for Foreign Med-
ical Graduates received a passing 
score in the year preceding the year 
for which a student is seeking a loan 
under part B of title IV; or
‘‘(II) the institution has a clinical 
training program that was approved 
by a State as of January 1, 1992; or 
‘‘(ii) in the case of a veterinary school 
located outside the United States that does 
not meet the requirements of section
101(a)(4), the institution’s students com-
plete their clinical training at an approved 
veterinary school located in the United 
States.’’. 
(B) The amendment made by subparagraph (A) 
shall be effective as if enacted on October 7, 1998. 
(3) 
Section 
102(a)(3)(A) 
(20 
U.S.C. 
1002(a)(3)(A)) is amended by striking ‘‘section 
521(4)(C) of the Carl D. Perkins Vocational and 
Applied Technology Education Act’’ and inserting 
‘‘section 3(3)(C) of the Carl D. Perkins Vocational 
and Technical Education Act of 1998’’. 
(4) Paragraph (7) of section 103 (20 U.S.C. 
1003) 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 such part.’’. 
(5) Section 131 (20 U.S.C. 1015) is amended—
(A) in subsection (a)(3)(A)(iii)—
(i) by striking ‘‘an undergraduate’’ 
and inserting ‘‘a full-time undergraduate’’; 
and
(ii) in subclause (I), by striking ‘‘sec-
tion 428(a)(2)(C)(i)’’ and inserting ‘‘sec-
tion 428(a)(2)(C)(ii)’’; 
(B) in subsection (b), by striking ‘‘the 
costs for typical’’ and inserting ‘‘the prices for, 
and financial aid provided to, typical’’; 
(C) in subsection (c)(2)(B), by striking 
‘‘costs’’ and inserting ‘‘prices’’; and 
(D) in subsection (d)(1), by striking ‘‘3 
years’’ and inserting ‘‘4 years’’. 
(6) Section 141 (20 U.S.C. 1018) is amended—
(A) in subsection (a)(2)(B)—
(i) by inserting ‘‘unit’’ after ‘‘to re-
duce the’’; and 
(ii) by inserting ‘‘and, to the extent 
practicable, the total costs of administering 
those programs’’ after ‘‘those programs’’; 
(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 
‘‘secondary markets, guaranty agencies,’’ 
after ‘‘lenders,’’; and
(iii) in paragraph (2)(B), by striking 
‘‘Chief Financial Officer Act of 1990 and’’ 
and inserting ‘‘Chief Financial Officers Act 
of 1990,’’ and by inserting before the pe-
riod at the end the following: ‘‘, and other 
relevant statutes’’; 
(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 II.—Section 207(f)(2) 
(20 U.S.C. 1027(f)(2)) is amended by inserting ‘‘, includ-
ing by electronic means,’’ after ‘‘sent’’. 
(c) AMENDMENTS TO TITLE III.—
(1) Section 316(b)(3) (20 U.S.C. 1059c(b)(3)) 
is amended by striking ‘‘give’’ and inserting ‘‘given’’. 
(2) Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) 
is amended, in the matter preceding subparagraph 
(A), by inserting a colon after ‘‘the following’’. 
(3) Section 342(5)(C) (20 U.S.C. 1066a(5)(C)) 
is amended—
(A) by inserting a comma after ‘‘equip-
ment’’ the first place it appears; and 
(B) by striking ‘‘technology,,’’ and insert-
ing ‘‘technology,’’. 
(4) Section 343(e) (20 U.S.C. 1066b(e)) is 
amended by inserting after the subsection designa-
tion 
the 
following: 
‘‘SALE
OF
QUALIFIED
BONDS.—’’. 
(5) Section 351(a) (20 U.S.C. 1067a(a)) is 
amended by striking ‘‘of 1979’’. 
(6) Section 1024 (20 U.S.C. 1135b–3), as 
transferred by section 301(a)(5) of the Higher Edu-
cation Amendments of 1998 (Public Law 105–244; 
112 Stat. 1636), is repealed. 
(d) AMENDMENTS TO PART A OF TITLE IV.—
(1) Section 402A (20 U.S.C. 1070a-11) is 
amended—
(A) in subsection (e)—
(i) in paragraph (1), by striking 
‘‘(g)(2)’’ and inserting ‘‘(g)(4)’’; and 
(ii) in paragraph (2), by striking 
‘‘(g)(2)’’ and inserting ‘‘(g)(4)’’; and 
(B) in subsection (g)— 
(i) by redesignating paragraphs (1) 
through (4) as paragraphs (3) through (6), 
respectively; and 
(ii) by inserting before paragraph (3), 
as redesignated, the following: 
‘‘(1) DIFFERENT CAMPUS.—The term ‘different 
campus’ means an institutional site that—
‘‘(A) is geographically apart from the main 
campus of the institution; 
‘‘(B) is permanent in nature; and 
‘‘(C) offers courses in educational pro-
grams leading to a degree, certificate, or other 
recognized educational credential.
‘‘(2) DIFFERENT POPULATION.—The term ‘dif-
ferent population’ means a group of individuals, with 
respect to whom an entity seeks to serve through an 
application for funding under this chapter, that is—
‘‘(A) separate and distinct from any other 
population that the entity seeks to serve
through an application for funding under this 
chapter; or 
‘‘(B) while sharing some of the same char-
acteristics as another population that the entity 
seeks to serve through an application for fund-
ing under this chapter, has distinct needs for 
specialized services.’’. 
(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 the period of 6 years.’’. 
(B) The amendment made by subparagraph (A) 
shall apply to awards made either before or after the 
date of enactment of this Act. 
(3) Section 407E (20 U.S.C. 1070a–35) is re-
designated as section 406E. 
(4) Section 419C(b)(1) (20 U.S.C. 1070d–
33(b)(1)) is amended by inserting ‘‘and’’ after the 
semicolon at the end thereof. 
(5) Section 419D(d) (20 U.S.C. 1070d–34(d)) 
is amended by striking ‘‘Public Law 95–1134’’ and 
inserting ‘‘Public Law 95–134’’.
(e) AMENDMENTS TO PART B OF TITLE IV.—
(1) 
Section 
428(a)(2)(A) 
(20 
U.S.C. 
1078(a)(2)(A)) 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. 
(2) 
Section 
428(b)(1)(G) 
(20 
U.S.C. 
1078(b)(1)(G)) is amended by inserting before the 
semicolon at the end the following: ‘‘and 100 percent 
of the unpaid principal amount of exempt claims as 
defined in subsection (c)(1)(G)’’. 
(3) Section 428(c) (20 U.S.C. 1078(c)) is 
amended—
(A) in paragraph (1)—
(i) by redesignating subparagraph (G) 
as subparagraph (H), and moving such 
subparagraph 2 em spaces to the left; and 
(ii) by inserting after subparagraph 
(F) the following new subparagraph: 
‘‘(G)(i) Notwithstanding any other provisions of 
this section, in the case of exempt claims, the Sec-
retary shall apply the provisions of—
Secretary, to repay the Federal student loans of 
the eligible victim and his or her spouse; 
(C) the portion of the consolidation loan 
indebtedness of an eligible parent that was in-
curred on behalf of an eligible victim; and 
(D) the PLUS loan indebtedness of an eli-
gible parent that was incurred on behalf of an 
eligible victim. 
(2) METHOD
OF
DISCHARGE
OR
CANCELLA-
TION.—A loan required to be discharged or canceled 
under paragraph (1) shall be discharged or canceled
by the method used under section 437(a), 455(a)(1), 
or 464(c)(1)(F) of the Higher Education Act of 
1965 
(20 
U.S.C. 
1087(a), 
1087e(a)(1), 
1087dd(c)(1)(F)), whichever is applicable to such 
loan. 
(c) FACILITATION
OF
CLAIMS.—The Secretary 
shall—
(1) establish procedures for the filing of appli-
cations for discharge or cancellation under this sec-
tion by regulations that shall be prescribed and pub-
lished within 90 days after the date of enactment of 
this Act and without regard to the requirements of 
section 553 of title 5, United States Code; and