In the Senate of the United States,
July 9, 1998.
Resolved, That the bill from the House of Representa-
tives (H.R. 6) entitled ‘‘An Act to extend the authorization
of programs under the Higher Education Act of 1965, and
for other purposes.’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Higher Education Amendments of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
TITLE I—GENERAL PROVISIONS
Sec. 101. General provisions.
Sec. 102. Federal control of education prohibited.
Sec. 103. National Advisory Committee on Institutional Quality and Integrity.
Sec. 104. Grants and recognition awards.
Sec. 105. Prior rights and obligations; recovery of payments.
Sec. 106. Technical and conforming amendments.
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TITLE II—IMPROVING TEACHER QUALITY
Sec. 201. Improving teacher quality.
TITLE III—INSTITUTIONAL AID
Sec. 301. Transfers and redesignations.
Sec. 302. Findings.
Sec. 303. Strengthening institutions.
Sec. 304. Strengthening HBCU’s.
Sec. 305. Endowment challenge grants.
Sec. 306. HBCU capital financing.
Sec. 307. Minority science and engineering improvement program.
Sec. 308. General provisions.
TITLE IV—STUDENT ASSISTANCE
PART A—GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
Sec. 411. Repeals and redesignations.
Sec. 412. Federal Pell grants.
Sec. 413. TRIO programs.
Sec. 414. Connections program.
Sec. 415. Federal supplemental educational opportunity grants.
Sec. 416. Leveraging educational assistance partnership program.
Sec. 417. HEP and CAMP.
Sec. 418. Robert C. Byrd honors scholarship program.
Sec. 419. Child care access means parents in school.
Sec. 420. Learning anytime anywhere partnerships.
PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM
Sec. 421. Advances for reserve funds.
Sec. 422. Federal Student Loan Reserve Fund.
Sec. 423. Agency Operating Fund.
Sec. 424. Scope and duration of Federal loan insurance program.
Sec. 425. Applicable interest rates.
Sec. 426. Federal payments to reduce student interest costs.
Sec. 427. Voluntary flexible agreements with guaranty agencies.
Sec. 428. Federal PLUS loans.
Sec. 429. Federal consolidation loans.
Sec. 430. Requirements for disbursements of student loans.
Sec. 431. Default reduction program.
Sec. 432. Unsubsidized loans.
Sec. 433. Loan forgiveness for teachers.
Sec. 434. Loan forgiveness for child care providers.
Sec. 435. Notice to Secretary and payment of loss.
Sec. 436. Common forms and formats.
Sec. 437. Student loan information by eligible lenders.
Sec. 438. Definitions.
Sec. 439. Study of the effectiveness of cohort default rates for institutions with few
student loan borrowers.
Sec. 440. Delegation of functions.
Sec. 440A. Special allowances.
Sec. 440B. Study of market-based mechanisms for determining student loan inter-
est rates.
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PART I—ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
Sec. 495. Performance-based organization for the delivery of Federal student fi-
nancial assistance.
Sec. 496. Student Loan Ombudsman Office.
TITLE V—GRADUATE AND POSTSECONDARY IMPROVEMENT
PROGRAMS
Sec. 501. Repeals, transfers, and redesignations.
Sec. 502. Purpose.
PART A—JACOB K. JAVITS FELLOWSHIP PROGRAM
Sec. 511. Award of fellowships.
PART B—GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED
Sec. 521. Graduate assistance in areas of national need.
PART C—FACULTY DEVLOPMENT PROGRAM
Sec. 531. Faculty development program reauthorized.
PART D—URBAN COMMUNITY SERVICE
Sec. 541. Urban community service.
PART E—FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION
Sec. 551. Fund for the improvement of postsecondary education.
PART F—HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES;
HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS
Sec. 561. Higher education access for students with disabilities; Hispanic-serving
institutions; general provisions.
TITLE VI—INTERNATIONAL EDUCATION PROGRAMS
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
Sec. 604. General provisions.
TITLE VII—RELATED PROGRAMS AND AMENDMENTS TO OTHER
ACTS
PART A—INDIAN EDUCATION PROGRAMS
Sec. 711. Tribally Controlled Community College Assistance Act of 1978.
Sec. 712. American Indian, Alaska Native, and Native Hawaiian culture and art
development.
Sec. 713. Navajo Community College Act.
PART B—ADVANCED PLACEMENT INCENTIVE PROGRAM
Sec. 721. Advanced placement incentive program.
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PART C—UNITED STATES INSTITUTE OF PEACE
Sec. 731. Authorities of the United States Institute of Peace.
PART D—COMMUNITY SCHOLARSHIP MOBILIZATION
Sec. 741. Short title.
Sec. 742. Findings.
Sec. 743. Definitions.
Sec. 744. Purpose, endowment grant authority.
Sec. 745. Grant agreement and requirements.
Sec. 746. Authorization of appropriations.
PART E—GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS
Sec. 751. Grants to States for workplace and community transition training for
incarcerated youth offenders.
PART F—WEB-BASED EDUCATION COMMISSION
Sec. 753. Short title; definitions.
Sec. 754. Establishment of Web-Based Education Commission.
Sec. 755. Duties of the Commission.
Sec. 756. Powers of the Commission.
Sec. 757. Commission personnel matters.
Sec. 758. Termination of the Commission.
Sec. 759. Authorization of appropriations.
PART G—EDUCATION OF THE DEAF
Sec. 761. Short title.
Sec. 762. Elementary and secondary education programs.
Sec. 763. Agreement with Gallaudet University.
Sec. 764. Agreement for the National Technical Institute for the Deaf.
Sec. 765. Definitions.
Sec. 766. Gifts.
Sec. 767. Reports.
Sec. 768. Monitoring, evaluation, and reporting.
Sec. 769. Investments.
Sec. 770. International students.
Sec. 771. Research priorities.
Sec. 772. Authorization of appropriations.
Sec. 773. Commission on Education of the Deaf.
PART H—REPEALS
Sec. 781. Repeals.
PART I—MISCELLANEOUS
Sec. 791. Year 2000 requirements at the Department of Education.
Sec. 792. Grants to combat violent crimes against women on campuses.
Sec. 793. Authority to administer summer travel and work programs.
Sec. 794. Improving United States understanding of science, engineering, and
technology in East Asia.
Sec. 795. Underground Railroad educational and cultural program
Sec. 796. GNMA guarantee fee.
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Sec. 797. Protection of student speech and association rights.
Sec. 798. Binge drinking on college campuses.
Sec. 799. Sense of the Senate regarding higher education.
Sec. 799A. Sense of Congress regarding teacher education.
Sec. 799B. Liaison for proprietary institutions of higher education.
Sec. 799C. Expansion of educational opportunities for welfare recipients.
Sec. 799D. Alcohol or drug possession disclosure.
Sec. 799E. Release of conditions, covenants, and reversionary interests, Guam
Community College conveyance, Barrigada, Guam.
Sec. 799F. Sense of Congress regarding good character.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or
other provision of the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
TITLE I—GENERAL PROVISIONS
SEC. 101. GENERAL PROVISIONS.
(a) REPEAL; TRANSFER AND REDESIGNATION.—The
Act (20 U.S.C. 1001 et seq.) is amended—
(1) by repealing title I (20 U.S.C. 1001 et seq.);
(2) by repealing sections 1203, 1206, 1211, and
1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f);
(3) by striking the heading for title XII (20
U.S.C. 1141 et seq.);
(4) by inserting before title III (20 U.S.C. 1051
et seq.) the following:
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‘‘TITLE I—GENERAL
PROVISIONS’’;
(5) by transferring sections 1201, 1202, 1204 (as
renumbered by Public Law 90–575), 1204 (as added
by Public Law 96–374), 1205, 1207, 1208, 1209,
1210, and 1213 (20 U.S.C. 1141, 1142, 1144, 1144a,
1145, 1145b, 1145c, 1145d, 1145d–1, and 1145g) to
follow the heading for title I (as inserted by para-
graph (4)); and
(6) by redesignating sections 1201, 1202, 1204
(as renumbered by Public Law 90–575), 1204 (as
added by Public Law 96–374), 1205, 1207, 1208,
1209, 1210, and 1213 as sections 101, 102, 103, 104,
105, 106, 107, 108, 109, and 110, respectively.
SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.
Section 103 (as redesignated by section 101(a)(6)) (20
U.S.C. 1144) is amended by striking ‘‘(b)’’.
SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITU-
TIONAL QUALITY AND INTEGRITY.
Section 105 (as redesignated by section 101(a)(6)) (20
U.S.C. 1145) is amended—
(1) by striking the last sentence of subsection (a);
(2) by redesignating subsections (c) through (f)
as subsections (d) through (g), respectively;
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(3) by inserting after subsection (b) the follow-
ing:
‘‘(c) PUBLIC NOTICE.—The Secretary shall—
‘‘(1) annually publish in the Federal Register a
list containing the name of each member of the Com-
mittee and the date of the expiration of the term of
office of the member; and
‘‘(2) publicly solicit nominations for each vacant
position or expiring term of office on the Commit-
tee.’’;
(4) in subsection (d) (as redesignated by para-
graph (2))—
(A) by striking paragraph (6); and
(B) by redesignating paragraphs (7) and
(8) as paragraphs (6) and (7), respectively; and
(5) in subsection (g) (as redesignated by para-
graph (2)), by striking ‘‘1998’’ and inserting ‘‘2004’’.
SEC. 104. GRANTS AND RECOGNITION AWARDS.
Section 110 (as redesignated by section 101(a)(6)) (20
U.S.C. 1145g) is amended by adding at the end the follow-
ing:
‘‘(e) ALCOHOL
AND
DRUG
ABUSE
PREVENTION
GRANTS.—
‘‘(1) PROGRAM AUTHORITY.—The Secretary may
make grants to institutions of higher education or
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consortia of such institutions, and enter into con-
tracts with such institutions, consortia, and other or-
ganizations, to develop, implement, operate, improve,
and disseminate programs of prevention, and edu-
cation (including treatment-referral) to reduce and
eliminate the illegal use of drugs and alcohol and the
violence associated with such use. Such grants or con-
tracts may also be used for the support of a higher
education center for alcohol and drug abuse preven-
tion that will provide training, technical assistance,
evaluation, dissemination, and associated services and
assistance to the higher education community as de-
termined by the Secretary and institutions of higher
education.
‘‘(2) AWARDS.—Grants and contracts shall be
awarded under paragraph (1) on a competitive basis.
‘‘(3) APPLICATIONS.—An institution of higher
education, a consortium of such institutions, or an-
other organization that desires to receive a grant or
contract under paragraph (1) shall submit an appli-
cation to the Secretary at such time, in such manner,
and containing or accompanied by such information
as the Secretary may reasonably require by regula-
tion.
‘‘(4) ADDITIONAL REQUIREMENTS.—
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‘‘(A) PARTICIPATION.—In awarding grants
under this subsection the Secretary shall make
every effort to ensure—
‘‘(i) the equitable participation of pri-
vate and public institutions of higher edu-
cation (including community and junior
colleges); and
‘‘(ii) the equitable geographic partici-
pation of such institutions.
‘‘(B) CONSIDERATION.—In awarding grants
and contracts under this subsection the Secretary
shall give appropriate consideration to institu-
tions of higher education with limited enroll-
ment.
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection $5,000,000 for fiscal year 1999 and
such sums as may be necessary for each of the 4 suc-
ceeding fiscal years.
‘‘(f) NATIONAL RECOGNITION AWARDS.—
‘‘(1) PURPOSE.—It is the purpose of this sub-
section to provide models of innovative and effective
alcohol prevention programs in higher education and
to focus national attention on exemplary alcohol pre-
vention efforts.
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cation. The document shall be disseminated not
later than January 1 of each academic year.
‘‘(D) AMOUNT AND USE.—Each institution
of higher education selected to receive an award
under this subsection shall receive an award in
the amount of $50,000. Such award shall be used
for the maintenance and improvement of the in-
stitution’s alcohol prevention program for the
academic year following the academic year for
which the award is made.
‘‘(3) APPLICATION.—
‘‘(A) IN
GENERAL.—Each institution of
higher education desiring an award under this
subsection shall submit an application to the
Secretary at such time, in such manner, and ac-
companied by such information as the Secretary
may require. Each such application shall con-
tain—
‘‘(i) a clear description of the goals
and objectives of the alcohol program of the
institution;
‘‘(ii) a description of program activi-
ties that focus on alcohol policy issues, pol-
icy development, modification, or refine-
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ment, policy dissemination and implemen-
tation, and policy enforcement;
‘‘(iii) a description of activities that
encourage student and employee participa-
tion and involvement in activity develop-
ment and implementation;
‘‘(iv) the objective criteria used to de-
termine the effectiveness of the methods used
in the program and the means used to
evaluate and improve the program efforts;
and
‘‘(v) a description of the activities to be
assisted that meet the criteria described in
subparagraph (C).
‘‘(B) APPLICATION REVIEW.—The Secretary
shall appoint a committee to review applications
submitted under this paragraph. The committee
may include representatives of Federal depart-
ments or agencies the programs of which include
alcohol abuse prevention and education efforts,
directors or heads (or their representatives) of
professional associations that focus on alcohol
abuse prevention efforts, and non-Federal sci-
entists who have backgrounds in social science
evaluation and research methodology and in edu-
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cation. Decisions of the committee shall be made
directly to the Secretary without review by any
other entity in the Department.
‘‘(C) REVIEW CRITERIA.—The committee de-
scribed in subparagraph (B) shall develop spe-
cific review criteria for reviewing and evaluating
applications submitted under this paragraph.
Such criteria shall include whether the institu-
tion of higher education has policies in effect
that—
‘‘(i) prohibit alcoholic beverage spon-
sorship of athletic events, and prohibit alco-
holic beverage advertising inside athletic fa-
cilities;
‘‘(ii) prohibit alcoholic beverage mar-
keting on campus, which may include ef-
forts to ban alcohol advertising in institu-
tional publications or efforts to prohibit al-
cohol-related 
advertisements 
at 
campus
events;
‘‘(iii) establish or expand upon alcohol-
free living arrangements for all college stu-
dents;
‘‘(iv) establish partnerships with com-
munity members and organizations to fur-
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ther alcohol prevention efforts on campus
and the areas surrounding campus; and
‘‘(v) establish innovative communica-
tions programs involving students and fac-
ulty in an effort to educate students about
alcohol-related risks.
‘‘(4) ELIGIBILITY.—
‘‘(A) IN GENERAL.—In order to be eligible
to receive a National Recognition Award an in-
stitution of higher education shall—
‘‘(i) offer an associate or baccalaureate
degree;
‘‘(ii) have established an alcohol abuse
prevention and education program;
‘‘(iii) nominate itself or be nominated
by others, such as professional associations
or student organizations, to receive the
award; and
‘‘(iv) not have received an award
under this subsection during the 5 academic
years preceding the academic year for which
the determination is made.
‘‘(B) OBJECTIVES.—In order to receive a
National Recognition Award an institution shall
demonstrate in the application submitted under
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paragraph (3) that the institution has accom-
plished all of the following objectives:
‘‘(i) The elimination of alcoholic bev-
erage sponsorship of athletic events, and the
elimination of alcoholic beverage advertising
inside athletic facilities.
‘‘(ii) The elimination of alcoholic bev-
erage marketing on campus that may in-
clude efforts to ban alcohol advertising in
institutional publications or prohibit alco-
hol-related advertisements at campus events.
‘‘(iii) The establishment or expansion
of alcohol-free living arrangements for all
college students.
‘‘(iv) The establishment of partnerships
with community members and organiza-
tions to further alcohol prevention efforts on
campus and the surrounding areas.
‘‘(v) The establishment of innovative
communications programs involving stu-
dents and faculty in an effort to educate
students about alcohol-related risks.
‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—
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‘‘(A) IN GENERAL.—There is authorized to
be appropriated to carry out this subsection
$750,000 for fiscal year 1999.
‘‘(B) AVAILABILITY.—Funds appropriated
under subparagraph (A) shall remain available
until expended.’’.
SEC. 105. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF
PAYMENTS.
Title I (20 U.S.C. 1001 et seq.) is amended by adding
after section 110 (as redesignated by section 101(a)(6)) the
following:
‘‘SEC. 111. PRIOR RIGHTS AND OBLIGATIONS.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) PRE-1987 PARTS C AND D OF TITLE VII.—
There are authorized to be appropriated such sums as
may be necessary for fiscal year 1999 and for each of
the 4 succeeding fiscal years to pay obligations in-
curred prior to 1987 under parts C and D of title
VII, as such parts were in effect before the effective
date of the Higher Education Amendments of 1992.
‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE
VII.—There are authorized to be appropriated such
sums as may be necessary for fiscal year 1999 and
for each of the 4 succeeding fiscal years to pay obliga-
tions incurred prior to the date of enactment of the
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Higher Education Amendments of 1998 under part C
of title VII, as such part was in effect during the pe-
riod—
‘‘(A) after the effective date of the Higher
Education Amendments of 1992; and
‘‘(B) prior to the date of enactment of the
Higher Education Amendments of 1998.
‘‘(b) LEGAL RESPONSIBILITIES.—
‘‘(1) PRE-1987 TITLE VII.—All entities with con-
tinuing obligations incurred under parts A, B, C, and
D of title VII, as such parts were in effect before the
effective date of the Higher Education Amendments of
1992, shall be subject to the requirements of such part
as in effect before the effective date of the Higher Edu-
cation Amendments of 1992.
‘‘(2) POST-1992 AND PRE-1998 PART C OF TITLE
VII.—All entities with continuing obligations incurred
under part C of title VII, as such part was in effect
during the period—
‘‘(A) after the effective date of the Higher
Education Amendments of 1992; and
‘‘(B) prior to the date of enactment of the
Higher Education Amendments of 1998,
shall be subject to the requirements of such part as
such part was in effect during such period.
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‘‘SEC. 112. RECOVERY OF PAYMENTS.
‘‘(a) PUBLIC BENEFIT.—Congress declares that, if a
facility constructed with the aid of a grant under part A
of title VII as such part A was in effect prior to the date
of enactment of the Higher Education Amendments of 1998,
or part B of such title as such part B was in effect prior
to the date of enactment of the Higher Education Amend-
ments of 1992, is used as an academic facility for 20 years
following completion of such construction, the public benefit
accruing to the United States will equal in value the
amount of the grant. The period of 20 years after comple-
tion of such construction shall therefore be deemed to be the
period of Federal interest in such facility for the purposes
of such title as so in effect.
‘‘(b) RECOVERY UPON CESSATION OF PUBLIC BENE-
FIT.—If, within 20 years after completion of construction
of an academic facility which has been constructed, in part
with a grant under part A of title VII as such part A was
in effect prior to the date of enactment of the Higher Edu-
cation Amendments of 1998, or part B of title VII as such
part B was in effect prior to the date of enactment of the
Higher Education Amendments of 1992—
‘‘(1) the applicant under such parts as so in ef-
fect (or the applicant’s successor in title or possession)
ceases or fails to be a public or nonprofit institution,
or
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‘‘(2) the facility ceases to be used as an academic
facility, or the facility is used as a facility excluded
from the term ‘academic facility’ (as such term was
defined under title VII, as so in effect), unless the Sec-
retary determines that there is good cause for releas-
ing the institution from its obligation,
the United States shall be entitled to recover from such ap-
plicant (or successor) an amount which bears to the value
of the facility at that time (or so much thereof as constituted
an approved project or projects) the same ratio as the
amount of Federal grant bore to the cost of the facility fi-
nanced with the aid of such grant. The value shall be deter-
mined by agreement of the parties or by action brought in
the United States district court for the district in which
such facility is situated.
‘‘(c) PROHIBITION ON USE FOR RELIGION.—Notwith-
standing the provisions of subsections (a) and (b), no
project assisted with funds under title VII (as in effect prior
to the date of enactment of the Higher Education Amend-
ments of 1998) shall ever be used for religious worship or
a sectarian activity or for a school or department of divin-
ity.
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‘‘SEC. 113. STUDENT-RELATED DEBT STUDY REQUIRED.
‘‘(a) IN GENERAL.—The Secretary shall conduct a
study that analyzes the distribution and increase in stu-
dent-related debt in terms of—
‘‘(1) demographic characteristics, such as race or
ethnicity, and family income;
‘‘(2) type of institution and whether the institu-
tion is a public or private institution;
‘‘(3) loan source, such as Federal, State, institu-
tional or other, and, if the loan source is Federal,
whether the loan is or is not subsidized;
‘‘(4) academic field of study;
‘‘(5) parent loans, and whether the parent loans
are federally guaranteed, private, or property-secured
such as home equity loans; and
‘‘(6) relation of student debt or anticipated debt
to—
‘‘(A) students’ decisions about whether and
where to enroll in college and whether or how
much to borrow in order to attend college;
‘‘(B) the length of time it takes students to
earn baccalaureate degrees;
‘‘(C) students’ decisions about whether and
where to attend graduate school;
‘‘(D) graduates’ employment decisions;
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‘‘(E) graduates’ burden of repayment as re-
flected by the graduates’ ability to save for retire-
ment or invest in a home; and
‘‘(F) students’ future earnings.
‘‘(b) REPORT.—After conclusion of the study required
by subsection (a), the Secretary shall submit a final report
regarding the findings of the study to the Committee on
Labor and Human Resources of the Senate and the Com-
mittee on Education and the Workforce of the House of Rep-
resentatives not later than 18 months after the date of enact-
ment of the Higher Education Amendments of 1998.
‘‘(c) INFORMATION.—After the study and report under
this section are concluded, the Secretary shall determine
which information described in subsection (a) would be use-
ful for families to know and shall include such information
as part of the comparative information provided to families
about the costs of higher education under the provisions of
section 486(a)(1).
‘‘SEC. 114. STUDY OF FORECLOSED PROPERTY OR ASSETS.
‘‘Not later than 90 days after the date of enactment
of the Higher Education Amendments of 1998, the Comp-
troller General, in consultation with the Inspector General
of the Department, shall submit a report to the Committee
on Labor and Human Resources of the Senate and the Com-
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mittee on Education and the Workforce of the House of Rep-
resentatives that provides the following:
‘‘(1) Descriptions of legislative changes that can
be made to strengthen laws governing the transfer of
foreclosed property or assets by the Department to in-
dividuals or their agents that have had prior dealings
with the Department. Such descriptions shall address
the transfer of property to individuals or their agents
who have been in positions of management or over-
sight at postsecondary educational institutions that
have failed, or are failing, to make payments to the
Department on property loans, or defaulted on any
property or asset loan from a Federal agency.
‘‘(2) Changes that can be implemented at the De-
partment to strengthen all rules and regulations gov-
erning the transfer of foreclosed property or assets by
the Department to individuals or their agents as de-
scribed in paragraph (1).
‘‘SEC. 115. STATE REQUIREMENT.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), each State, that has individuals who reside in the State
and who receive financial assistance under this Act, shall
provide an appropriate number of mail voter registration
forms (as described in section 6(a) of the National Voter
Registration Act (42 U.S.C. 1973gg–4(a))) to each eligible
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institution under section 487 in the State, not later than
60 days before each date that is the last day to register to
vote for a regularly scheduled—
‘‘(1) election (as defined in section 301(1) of the
Federal Election Campaign Act of 1971 (2 U.S.C.
431(1)); or
‘‘(2) election for Governor or other chief executive
within such State.
‘‘(b) NONAPPLICABILITY TO CERTAIN STATES.—The
requirement of subsection (a) shall not apply to a State
which is described in section 4(b) of the National Voter Reg-
istration Act (42 U.S.C. 1973gg–2(b)).
‘‘SEC. 116. STUDY OF OPPORTUNITIES FOR PARTICIPATION
IN ATHLETICS PROGRAMS.
‘‘(a) STUDY.—The Comptroller General shall conduct
a study of the opportunities for participation in intercolle-
giate athletics. The study shall address issues including—
‘‘(1) the extent to which the number of—
‘‘(A) secondary school athletic teams has in-
creased or decreased in the 20 years preceding
1998 (in aggregate terms); and
‘‘(B) intercollegiate athletic teams has in-
creased or decreased in the 20 years preceding
1998 (in aggregate terms) at 2-year and 4-year
institutions of higher education;
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‘‘(2) the extent to which participation by stu-
dent-athletes in secondary school and intercollegiate
athletics has increased or decreased in the 20 years
preceding 1998 (in aggregate terms);
‘‘(3) over the 20-year period preceding 1998, a
list of the men’s and women’s secondary school and
intercollegiate sports, ranked in order of the sports
most affected by increases or decreases in levels of
participation and numbers of teams (in the aggre-
gate);
‘‘(4) all factors that have influenced campus offi-
cials to add or discontinue sports teams at secondary
schools and institutions of higher education, includ-
ing—
‘‘(A) institutional mission and priorities;
‘‘(B) budgetary pressures;
‘‘(C) institutional reforms and restructur-
ing;
‘‘(D) escalating liability insurance pre-
miums;
‘‘(E) changing student and community in-
terest in a sport;
‘‘(F) advancement of diversity among stu-
dents;
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‘‘(G) lack of necessary level of competitive-
ness of the sports program;
‘‘(H) club level sport achieving a level of
competitiveness to make the sport a viable var-
sity level sport;
‘‘(I) injuries or deaths; and
‘‘(J) conference realignment;
‘‘(5) the actions that institutions of higher edu-
cation have taken when decreasing the level of partici-
pation in intercollegiate sports, or the number of
teams, in terms of providing information, advice,
scholarship maintenance, counseling, advance warn-
ing, and an opportunity for student-athletes to be in-
volved in the decisionmaking process;
‘‘(6) the administrative processes and procedures
used by institutions of higher education when deter-
mining whether to increase or decrease intercollegiate
athletic teams or participation by student-athletes;
‘‘(7) the budgetary or fiscal impact, if any, of a
decision by an institution of higher education—
‘‘(A) to increase or decrease the number of
intercollegiate athletic teams or the participation
of student-athletes; or
‘‘(B) to be involved in a conference realign-
ment; and
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‘‘(8) the alternatives, if any, institutions of high-
er education have pursued in lieu of eliminating, or
severely reducing the funding for, an intercollegiate
sport, and the success of such alternatives.
‘‘(b) REPORT.—The Comptroller General shall submit
a report regarding the results of the study to the Committee
on Labor and Human Resources of the Senate and the Com-
mittee on Education and the Workforce of the House of Rep-
resentatives.
‘‘SEC. 117. SPECIAL RULE.
‘‘Notwithstanding any other provision of law, the sum
of financial assistance received under this Act and other
Federal financial assistance for postsecondary education re-
ceived by an individual shall not exceed the individual’s
cost of attendance as defined in section 472, except that no
individual shall have the amount of a Federal Pell Grant
for which the individual is eligible reduced as a result of
the application of this section.’’.
SEC. 106. TECHNICAL AND CONFORMING AMENDMENTS.
(a) CONFORMING AMENDMENTS CORRECTING REF-
ERENCES TO SECTION 1201.—
(1) AGRICULTURE.—
(A) STUDENT
INTERNSHIP
PROGRAMS.—
Section 922 of the Federal Agriculture Improve-
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ment and Reform Act of 1996 (7 U.S.C. 2279c)
is amended—
(i) in subsection (a)(1)(B)—
(I) by striking ‘‘1201’’ and insert-
ing ‘‘101’’; and
(II) by striking ‘‘(20 U.S.C.
1141)’’; and
(ii) in subsection (b)(1)—
(I) by striking ‘‘1201’’ and insert-
ing ‘‘101’’; and
(II) by striking ‘‘(20 U.S.C.
1141)’’.
(B) 
AGRICULTURAL
SCIENCES
EDU-
CATION.—Section 1417(h)(1)(A) of the National
Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3152(h)(1)(A)) is
amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(2) ARMED FORCES.—
(A) SCIENCE
AND
MATHEMATICS
EDU-
CATION
IMPROVEMENT
PROGRAM.—Section
2193(c)(1) of title 10, United States Code, is
amended—
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(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(B) SUPPORT OF SCIENCE, MATHEMATICS,
AND ENGINEERING EDUCATION.—Section 2199(2)
of title 10, United States Code, is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(C) ALLOWABLE
COSTS
UNDER
DEFENSE
CONTRACTS.—Section 841(c)(2) of the National
Defense Authorization Act for fiscal year 1994
(10 U.S.C. 2324 note) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(D) ENVIRONMENTAL RESTORATION INSTI-
TUTIONAL
GRANTS
FOR
TRAINING
DISLOCATED
DEFENSE WORKERS AND YOUNG ADULTS.—Sec-
tion 1333(i)(3) of the National Defense Author-
ization Act for fiscal year 1994 (10 U.S.C. 2701
note) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
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(E) ENVIRONMENTAL EDUCATION OPPORTU-
NITIES PROGRAM.—Section 1334(k)(3) of the Na-
tional Defense Authorization Act for fiscal year
1994 (10 U.S.C. 2701 note) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(F) ENVIRONMENTAL
SCHOLARSHIP
AND
FELLOWSHIP PROGRAMS.—Section 4451(b)(1) of
the National Defense Authorization Act for 1993
(10 U.S.C. 2701 note) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(3) APPLICATION OF ANTITRUST LAWS TO AWARD
OF
NEED-BASED
EDUCATIONAL
AID.—Section
568(c)(3) of the Improving America’s Schools Act of
1994 (15 U.S.C. 1 note) is amended—
(A) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(B) by striking ‘‘(20 U.S.C. 1141(a))’’.
(4) RESTRICTIONS ON FORMER OFFICERS, EM-
PLOYEES, AND ELECTED OFFICIALS OF THE EXECU-
TIVE
AND
LEGISLATIVE
BRANCHES.—Section
207(j)(2)(B) of title 18, United States Code, is
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amended by 
striking 
‘‘1201(a)’’ 
and 
inserting
‘‘101(a)’’.
(5) EDUCATION.—
(A) HIGHER EDUCATION AMENDMENTS OF
1992.—Section 1(c) of the Higher Education
Amendments of 1992 (20 U.S.C. 1001 note) is
amended by striking ‘‘1201’’ and inserting
‘‘101’’.
(B) PART F DEFINITIONS.—Section 481 of
the Higher Education Act of 1965 (20 U.S.C.
1088) is amended—
(i) in subsection (a)—
(I) in the matter preceding para-
graph (1)(A), by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’;
(II) in paragraph (1)(C), by
striking 
‘‘1201(a)’’ 
and 
inserting
‘‘101(a)’’;
(III) in the first sentence of the
matter preceding clause (i) of para-
graph (2)(A), by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’; and
(IV) in the matter following para-
graph (2)(B)(ii), by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’;
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(ii) in subsection (b)—
(I) in the first sentence—
(aa) in paragraph (2), by
striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(bb) in paragraph (3), by
striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(II) in the second sentence, by
striking 
‘‘1201(a)’’ 
and 
inserting
‘‘101(a)’’; and
(iii) in subsection (c)—
(I) in the first sentence, by strik-
ing ‘‘1201(a)’’ and inserting ‘‘101(a)’’;
and
(II) in the second sentence, by
striking 
‘‘1201(a)’’ 
and 
inserting
‘‘101(a)’’.
(C) TREATMENT
OF
BRANCHES.—Section
498(j)(2) of the Higher Education Act of 1965
(20 U.S.C. 1099c(j)(2)) is amended by striking
‘‘1201(a)(2)’’ and inserting ‘‘101(a)(2)’’.
(D) 
INTERNATIONAL
EDUCATION
PRO-
GRAMS.—Section 631(a)(8) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1132(a)(8)) is
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amended by striking ‘‘1201(a)’’ each place it ap-
pears and inserting ‘‘101(a)’’.
(E) DWIGHT D. EISENHOWER LEADERSHIP
PROGRAM.—Section 1081(d) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1135f(d)) is
amended by striking ‘‘1201’’ and inserting
‘‘101’’.
(F) DISCLOSURE REQUIREMENTS.—Section
429(d)(2)(B)(ii) of the General Education Provi-
sions Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is
amended by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’.
(G) HARRY S. TRUMAN SCHOLARSHIPS.—
Section 3(4) of the Harry S. Truman Memorial
Scholarship Act (20 U.S.C. 2002(4)) is amended
by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’.
(H) 
TECH-PREP
EDUCATION.—Section
347(2)(A) of the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C.
2394e(2)(A)) is amended by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’.
(I) EDUCATION FOR ECONOMIC SECURITY.—
Section 3(6) of the Education for Economic Se-
curity Act (20 U.S.C. 3902(6)) is amended by
striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’.
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(J) JAMES
MADISON
MEMORIAL
FELLOW-
SHIPS.—Section 815 of the James Madison Me-
morial Fellowship Act (20 U.S.C. 4514) is
amended—
(i) in paragraph (3), by striking
‘‘1201(a)’’ and inserting ‘‘101(a)’’; and
(ii) in paragraph (4), by striking
‘‘1201(d) of the Higher Education Act of
1965’’ and inserting ‘‘14101 of the Elemen-
tary and Secondary Education Act of
1965’’.
(K) BARRY GOLDWATER SCHOLARSHIPS.—
Section 1403(4) of the Barry Goldwater Scholar-
ship and Excellence in Education Act (20 U.S.C.
4702(4)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(L) MORRIS
K. UDALL
SCHOLARSHIPS.—
Section 4(6) of the Morris K. Udall Scholarship
and Excellence in National Environmental and
Native American Public Policy Act of 1992 (20
U.S.C. 
5602(6)) 
is 
amended 
by 
striking
‘‘1201(a)’’ and inserting ‘‘101(a)’’.
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(M) BILINGUAL EDUCATION, AND LANGUAGE
ENHANCEMENT
AND
ACQUISITION.—Section
7501(4) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7601(4)) is
amended by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’.
(N) 
GENERAL
DEFINITIONS.—Section
14101(17) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(17)) is
amended by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’.
(O) NATIONAL
EDUCATION
STATISTICS.—
Section 402(c)(3) of the National Education Sta-
tistics Act of 1994 (20 U.S.C. 9001(c)(3)) is
amended by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’.
(6) FOREIGN RELATIONS.—
(A) ENVIRONMENT AND SUSTAINABLE DE-
VELOPMENT
EXCHANGE
PROGRAM.—Section
240(d) of the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995 (22 U.S.C.
2452 note) is amended by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’.
(B) SAMANTHA
SMITH
MEMORIAL
EX-
CHANGE
PROGRAM.—Section 112(a)(8) of the
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Mutual Educational and Cultural Exchange Act
of 1961 (22 U.S.C. 2460(a)(8)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(C) SOVIET-EASTERN
EUROPEAN
TRAIN-
ING.—Section 803(1) of the Soviet-Eastern Euro-
pean Research and Training Act of 1983 (22
U.S.C. 
4502(1)) 
is 
amended 
by 
striking
‘‘1201(a)’’ and inserting ‘‘101(a)’’.
(D) 
DEVELOPING
COUNTRY
SCHOLAR-
SHIPS.—Section 603(d) of the Foreign Relations
Authorization Act, Fiscal Years 1986 and 1987
(22 U.S.C. 4703(d)) is amended by striking
‘‘1201(a)’’ and inserting ‘‘101(a)’’.
(7) INDIANS.—
(A) SNYDER ACT.—The last paragraph of
section 410 of the Act entitled ‘‘An Act authoriz-
ing appropriations and expenditures for the ad-
ministration of Indian Affairs, and for other
purposes’’, approved November 2, 1921 (25
U.S.C. 13) (commonly known as the Snyder Act)
is amended by striking ‘‘1201’’ and inserting
‘‘101’’.
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(B) TRIBALLY
CONTROLLED
COMMUNITY
COLLEGE
ASSISTANCE.—Section 2(a)(5) of the
Tribally Controlled Community College Assist-
ance Act (25 U.S.C. 1801(a)(5)) is amended by
striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’.
(C) CONSTRUCTION OF NEW FACILITIES.—
Section 113(b)(2) of the Tribally Controlled
Community College Assistance Act (25 U.S.C.
1813(b)(2)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(D) AMERICAN
INDIAN
TEACHER
TRAIN-
ING.—Section 1371(a)(1)(B) of the Higher Edu-
cation 
Amendments 
of 
1992 
(25 
U.S.C.
3371(a)(1)(B)) is amended by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’.
(8) LABOR.—
(A) REHABILITATION
DEFINITIONS.—Sec-
tion 7(32) of the Rehabilitation Act of 1973 (29
U.S.C. 706(32)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
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(B) 
STATE
PLANS.—Section
101(a)(7)(A)(iv)(II) of the Rehabilitation Act of
1973 (29 U.S.C. 721(a)(7)(A)(iv)(II)) is amend-
ed—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(C) JTPA DEFINITIONS.—Section 4(12) of
the Job Training Partnership Act (29 U.S.C.
1503(12)) is amended by striking ‘‘1201(a)’’ and
inserting ‘‘101(a)’’.
(D) 
TUITION
CHARGES.—Section
141(d)(3)(B) of the Job Training Partnership
Act (29 U.S.C. 1551(d)(3)(B)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(9) 
SURFACE
MINING
CONTROL.—Section
701(32) of the Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1291(32)) is amended by
striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’.
(10) 
POLLUTION
PREVENTION.—Section
112(a)(1) of the Federal Water Pollution Control Act
(33 U.S.C. 1262(a)(1)) is amended by striking
‘‘1201’’ and inserting ‘‘101’’.
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(11) POSTAL
SERVICE.—Section 3626(b)(3) of
title 39, United States Code, is amended—
(A) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(B) by striking ‘‘(20 U.S.C. 1141(a))’’.
(12) PUBLIC HEALTH AND WELFARE.—
(A) SCIENTIFIC
AND
TECHNICAL
EDU-
CATION.—Section 3(g) of the Scientific and Ad-
vanced-Technology Act of 1992 (42 U.S.C.
1862i(g)) is amended—
(i) in paragraph (2)—
(I) by striking ‘‘1201(a)’’ and in-
serting ‘‘101(a)’’; and
(II) by striking ‘‘(20 U.S.C.
1141(a))’’; and
(ii) in paragraph (3)—
(I) by striking ‘‘1201(a)’’ and in-
serting ‘‘101(a)’’; and
(II) by striking ‘‘(20 U.S.C.
1141(a))’’.
(B) OLDER
AMERICANS.—Section 102(32)
of the Older Americans Act of 1965 (42 U.S.C.
3002(32)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
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(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(C) JUSTICE SYSTEM IMPROVEMENT.—Sec-
tion 901(17) of the Omnibus Crime Control and
Safe Streets Act of 1968 (42 U.S.C. 3791(17)) is
amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(D) ENERGY TECHNOLOGY COMMERCIALIZA-
TION SERVICES PROGRAM.—Section 362(f)(5)(A)
of the Energy Policy and Conservation Act (42
U.S.C. 6322(f)(5)(A)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(E) ENVIRONMENTAL
RESTORATION
AND
WASTE MANAGEMENT.—Section 3132(b)(1) of the
National Defense Authorization Act for Fiscal
Years 1992 and 1993 (42 U.S.C. 7274e(b)(1)) is
amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
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(F) HEAD START.—Section 649(c)(3) of the
Head Start Act (42 U.S.C. 9844(c)(3)) is
amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(G) STATE
DEPENDENT
CARE
DEVELOP-
MENT
GRANTS.—Section 670G(5) of the Child
Care and Development Block Grant Act of 1990
(42 U.S.C. 9877(5)) is amended by striking
‘‘1201(a)’’ and inserting ‘‘101(a)’’.
(H) INSTRUCTIONAL ACTIVITIES FOR LOW-
INCOME YOUTH.—The matter preceding subpara-
graph (A) of section 682(b)(1) of the Community
Services 
Block 
Grant 
Act 
(42 
U.S.C.
9910c(b)(1)) is amended by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’.
(I) 
DRUG
ABUSE
EDUCATION.—Section
3601(7) of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11851(7)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(J) NATIONAL AND COMMUNITY SERVICE.—
Section 101(13) of the National and Community
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Service Act of 1990 (42 U.S.C. 12511(13)) is
amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(K) CIVILIAN COMMUNITY CORPS.—Section
166(6) of the National and Community Service
Act of 1990 (42 U.S.C. 12626(6)) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(L) COMMUNITY SCHOOLS YOUTH SERVICES
AND SUPERVISION GRANT PROGRAM.—The defini-
tion of public school in section 30401(b) of the
Community Schools Youth Services and Super-
vision Grant Program Act of 1994 (42 U.S.C.
13791(b)) is amended—
(i) by striking ‘‘1201’’ each place it
appears and inserting ‘‘101’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(i))’’.
(M) POLICE CORPS.—The definition of in-
stitution of higher education in section 200103 of
the Police Corps Act (42 U.S.C. 14092) is
amended—
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(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(N) LAW ENFORCEMENT SCHOLARSHIP PRO-
GRAM.—The definition of institution of higher
education in section 200202 of the Law Enforce-
ment Scholarship and Recruitment Act (42
U.S.C. 14111) is amended—
(i) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(ii) by striking ‘‘(20 U.S.C. 1141(a))’’.
(13) TELECOMMUNICATIONS.—Section 223(h)(4)
of the Telecommunications Act of 1934 (47 U.S.C.
223(h)(4)) is amended—
(A) by striking ‘‘1201’’ and inserting
‘‘101’’; and
(B) by striking ‘‘(20 U.S.C. 1141)’’.
(14) WAR
AND
NATIONAL
DEFENSE.—Section
808(3) of the David L. Boren National Security Edu-
cation Act of 1991 (50 U.S.C. 1908(3)) is amended—
(A) by striking ‘‘1201(a)’’ and inserting
‘‘101(a)’’; and
(B) by striking ‘‘(20 U.S.C. 1141(a))’’.
(b) CROSS REFERENCES.—The Act (20 U.S.C. 1001
et seq.) is amended—
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(1) in section 402A(c)(2) (20 U.S.C. 1070a–
11(c)(2)), by striking ‘‘1210’’ and inserting ‘‘110’’;
(2) in section 481 (20 U.S.C. 1088)—
(A) in subsection (a)—
(i) in paragraph (1)—
(I) in the matter preceding sub-
paragraph (A), by striking ‘‘1201(a)’’
and inserting ‘‘101(a)’’; and
(II) in subparagraph (C), by
striking 
‘‘1201(a)’’ 
and 
inserting
‘‘101(a)’’; and
(ii) in paragraph (2)—
(I) in the matter preceding clause
(i) of subparagraph (A), by striking
‘‘1201(a)’’ and inserting ‘‘101(a)’’; and
(II) in the matter following clause
(ii) of subparagraph (B), by striking
‘‘1201(a)’’ and inserting ‘‘101(a)’’;
(B) in subsection (b), by striking ‘‘1201(a)’’
each place the term appears and inserting
‘‘101(a)’’; and
(C) in subsection (c), by striking ‘‘1201(a)’’
each place the term appears and inserting
‘‘101(a)’’;
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(3) 
in 
section 
485(f)(1)(I) 
(20 
U.S.C.
1092(f)(1)(I)), by striking ‘‘1213’’ and inserting
‘‘111’’;
(4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)),
by striking ‘‘1201(a)(2)’’ and inserting ‘‘101(a)(2)’’;
(5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)),
by striking ‘‘1201(a)’’ and inserting ‘‘101(a)’’;
(6) 
in 
section 
631(a)(8) 
(20 
U.S.C.
1132(a)(8))—
(A) by striking ‘‘section 1201(a)’’ each place
the term appears and inserting ‘‘section 101(a)’’;
and
(B) by striking ‘‘of 1201(a)’’ and inserting
‘‘of section 101(a)’’; and
(7) in section 1081(d) (20 U.S.C. 1135f(d)), by
striking ‘‘1201’’ and inserting ‘‘101(a)’’.
TITLE II—IMPROVING TEACHER
QUALITY
SEC. 201. IMPROVING TEACHER QUALITY.
The Act (20 U.S.C. 1001) is amended by inserting
after section 112 (as added by section 105) the following:
‘‘TITLE II—IMPROVING TEACHER
QUALITY
‘‘SEC. 201. PURPOSES.
‘‘The purpose of this title is to—
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‘‘(1) improve student achievement;
‘‘(2) improve the quality of the current and fu-
ture teaching force by improving the preparation of
prospective teachers and enhancing professional devel-
opment activities; and
‘‘(3) hold institutions of higher education ac-
countable for preparing teachers who have the nec-
essary teaching skills and are highly competent in the
academic content areas in which the teachers plan to
teach, including training in the effective uses of tech-
nologies in the classroom.
‘‘PART A—TEACHER QUALITY
‘‘Subpart 1—Teacher Quality Enhancement Grants
‘‘SEC. 211. GRANTS AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to
award grants to States to enable the States to carry out
the activities described in section 212. Each grant may be
awarded for a period of not more than 5 years.
‘‘(b) STATE DESIGNATION.—
‘‘(1) IN
GENERAL.—A State desiring a grant
under this subpart shall, consistent with State law,
designate the chief individual or entity in the State
responsible for the State supervision of education, to
administer the activities assisted under this subpart.
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‘‘(2) CONSULTATION.—The individual or entity
designated under paragraph (1) shall consult with the
Governor, State board of education, or State edu-
cational agency, as appropriate.
‘‘(3) CONSTRUCTION.—Nothing in this subpart
shall be construed to negate or supersede the legal au-
thority under State law of any State agency, State
entity, or State public official over programs that are
under the jurisdiction of the agency, entity, or offi-
cial.
‘‘(c) MATCHING REQUIREMENT.—Each State receiving
a grant under this subpart shall provide, from non-Federal
sources, an amount equal to 1⁄2 of the amount of the grant,
in cash or in kind, to carry out the activities supported
through the grant.
‘‘SEC. 212. USE OF FUNDS.
‘‘A State that receives a grant under this subpart shall
use the grant funds to reform teacher preparation require-
ments, and to ensure that current and future teachers pos-
sess the necessary teaching skills and academic content
knowledge in the subject areas in which the teachers are
assigned to teach, by carrying out 1 or more of the following
activities:
‘‘(1) REFORMS.—Implementing reforms that
hold institutions of higher education with teacher
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preparation programs accountable for preparing
teachers who are highly competent in the academic
content areas in which the teachers plan to teach,
which may include the use of rigorous subject matter
competency tests and the requirement that a teacher
have an academic major in the subject area, or relat-
ed discipline, in which the teacher plans to teach.
‘‘(2) CERTIFICATION
OR
LICENSURE
REQUIRE-
MENTS.—Reforming teacher certification or licensure
requirements to ensure that new teachers have the nec-
essary teaching skills and academic content knowledge
in the subject areas in which teachers are assigned to
teach.
‘‘(3) ALTERNATIVES TO TRADITIONAL PREPARA-
TION FOR TEACHING.—Providing prospective teachers
alternatives to traditional preparation for teaching
through programs at colleges of arts and sciences or
at nonprofit educational organizations.
‘‘(4) ALTERNATIVE ROUTES.—Funding programs
that establish, expand, or improve alternative routes
to State certification for highly qualified individuals
from other occupations and recent college graduates
with records of academic distinction, including sup-
port during the initial teaching experience.
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‘‘(5) RECRUITMENT; PAY; REMOVAL.—Developing
and implementing effective mechanisms to ensure that
schools are able to effectively recruit highly qualified
teachers, to financially reward those teachers and
principals whose students have made significant
progress toward high academic performance, such as
through performance-based compensation systems and
access to ongoing professional development opportuni-
ties for teachers and administrators, and to remove
teachers who are not qualified.
‘‘(6) INNOVATIVE
EFFORTS.—Development and
implementation of innovative efforts aimed at reduc-
ing the shortage of highly qualified teachers in high
poverty urban and rural areas, and in school districts
with disproportionately high numbers of limited
English proficient students, that may include the re-
cruitment of highly qualified individuals from other
occupations through alternative certification pro-
grams.
‘‘(7) SOCIAL PROMOTION.—Development and im-
plementation of efforts to address the problem of social
promotion and to prepare teachers to effectively ad-
dress the issues raised by ending the practice of social
promotion.
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‘‘SEC. 213. COMPETITIVE AWARDS.
‘‘(a) ANNUAL AWARDS; COMPETITIVE BASIS.—The
Secretary shall award grants under this subpart annually
and on a competitive basis.
‘‘(b) PEER REVIEW PANEL.—The Secretary shall pro-
vide the applications submitted by States under section 214
to a peer review panel for evaluation. With respect to each
application, the peer review panel shall initially rec-
ommend the application for funding or for disapproval.
‘‘(c) PRIORITY.—In recommending applications for
funding to the Secretary, the panel shall give priority to
applications from States that describe activities that—
‘‘(1) include innovative reforms to hold institu-
tions of higher education with teacher preparation
programs accountable for preparing teachers who are
highly competent in the academic content areas in
which the teachers plan to teach; and
‘‘(2) involve the development of innovative efforts
aimed at reducing the shortage of highly qualified
teachers in high poverty urban and rural areas.
‘‘SEC. 214. APPLICATIONS.
‘‘(a) IN GENERAL.—Each State desiring a grant under
this subpart shall submit an application to the Secretary
at such time, in such manner and accompanied by such
information as the Secretary may require.
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‘‘(b) CONTENT OF APPLICATIONS.—Such application
shall include a description of how the State intends to use
funds provided under this subpart.
‘‘Subpart 2—Teacher Training Partnerships Grants
‘‘SEC. 221. GRANTS AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to
award grants to teacher training partnerships to enable the
partnerships to carry out the activities described in section
222. Each grant may be awarded for a period of not more
than 5 years.
‘‘(b) DEFINITIONS.—In this part:
‘‘(1) TEACHER TRAINING PARTNERSHIPS.—
‘‘(A) IN
GENERAL.—The term ‘teacher
training partnership’ means a partnership
that—
‘‘(i) shall include a school of arts and
sciences, a school or program of education,
a local educational agency, and a kinder-
garten through grade 12 school;
‘‘(ii) shall include a high need local
educational agency or kindergarten through
grade 12 school; and
‘‘(iii) may include a State educational
agency, a pre-kindergarten program, a non-
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profit educational organization, a business,
or a teacher organization.
‘‘(B) HIGH
NEED.—A local educational
agency or kindergarten through grade 12 school
shall be considered high need for purposes of sub-
paragraph (A)(ii) if the agency or school serves
an area within a State in which there is—
‘‘(i) a large number of individuals
from families with incomes below the pov-
erty line;
‘‘(ii) a high percentage of teachers not
teaching in the content area in which the
teachers were trained to teach; or
‘‘(iii) a high teacher turnover rate.
‘‘(2) 
KINDERGARTEN
THROUGH
GRADE
SCHOOL.—The term ‘kindergarten through grade 12
school’ means a school having any one of the grades
kindergarten through grade 12.
‘‘(c) PRIORITY.—In awarding grants under this sub-
part the Secretary shall give priority to partnerships that
involve businesses.
‘‘(d) CONSIDERATION.—In awarding grants under this
subpart the Secretary shall take into consideration—
‘‘(1) providing an equitable geographic distribu-
tion of the grants throughout the United States; and
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‘‘(2) the proposed project’s potential for creating
improvement and positive change.
‘‘(e) MATCHING FUNDS.—Each partnership receiving
a grant under this subpart shall provide, from sources other
than this subpart, an amount equal to 25 percent of the
grant in the first year, 35 percent in the second such year,
and 50 percent in each succeeding such year, of the amount
of the grant, in cash or in kind, to carry out the activities
supported by the grant.
‘‘(f) ONE-TIME AWARD.—A partnership may receive
a grant under this section only once.
‘‘SEC. 222. USE OF FUNDS.
‘‘(a) IN GENERAL.—Grant funds under this part shall
be used to—
‘‘(1) coordinate with the activities of the Gov-
ernor, State board of education, and State edu-
cational agency, as appropriate;
‘‘(2) 
provide 
sustained 
and 
high 
quality
preservice clinical experiences including the mentor-
ing of prospective teachers by veteran teachers;
‘‘(3) work with a school of arts and sciences to
provide increased academic study in a proposed
teaching specialty area, through activities such as—
‘‘(A) restructuring curriculum;
‘‘(B) changing core course requirements;
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‘‘(C) increasing liberal arts focus;
‘‘(D) providing preparation for board cer-
tification; and
‘‘(E) assessing and improving alternative
certification, including mentoring and induction
support;
‘‘(4) substantially increasing interaction and 2-
way collaboration between—
‘‘(A) faculty at institutions of higher edu-
cation; and
‘‘(B) new and experienced teachers, prin-
cipals, and other administrators at elementary
schools or secondary schools;
‘‘(5) prepare teachers to use technology effectively
in the classroom;
‘‘(6) integrate reliable research-based teaching
methods into the curriculum;
‘‘(7) broadly disseminate information on effective
practices used by the partnership; and
‘‘(8) provide support, including preparation
time, for interaction between faculty at an institution
of higher education and classroom teachers.
‘‘(b) SPECIAL RULE.—No individual member of a
partnership shall retain more than 50 percent of the funds
made available to the partnership under this subpart.
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‘‘(c) CONSTRUCTION.—Nothing in this part shall be
construed to prohibit a teacher training partnership from
using grant funds to coordinate with the activities of more
than 1 Governor, State board of education, or State edu-
cational agency.
‘‘SEC. 223. APPLICATIONS.
‘‘Each teacher training partnership desiring a grant
under this subpart shall submit an application to the Sec-
retary at such time, in such manner, and accompanied by
such information as the Secretary may require. Each such
application shall—
‘‘(1) describe the composition of the partnership
and the involvement of each partner in the develop-
ment of the application;
‘‘(2) contain a needs assessment that includes an
analysis of the needs of all the partners with respect
to teaching and learning;
‘‘(3) contain a resource assessment that in-
cludes—
‘‘(A) an analysis of resources available to
the partnership;
‘‘(B) a description of the intended use of the
grant funds;
‘‘(C) a description of how the partnership
will coordinate with other teacher training or
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professional development programs, including
Federal, State, local, private, and other pro-
grams;
‘‘(D) a description of how the activities as-
sisted under this subpart are consistent with
educational reform activities that promote stu-
dent achievement; and
‘‘(E) a description of the commitment of the
resources of the partnership to the activities as-
sisted under this subpart, including financial
support, faculty participation, and time commit-
ments;
‘‘(4) describe how the partnership will include
the participation of the schools, colleges, or depart-
ments of arts and sciences within an institution of
higher education to ensure the integration of teaching
techniques and content in teaching preparation;
‘‘(5) describe how the partnership will restruc-
ture and improve teaching, teacher training, and de-
velopment programs, and how such systemic changes
will contribute to increased student achievement;
‘‘(6) describe how the partnership will prepare
teachers to work with diverse student populations, in-
cluding individuals with disabilities and limited
English proficient individuals;
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‘‘(7) describe how the partnership will prepare
teachers to use technology;
‘‘(8) contain a dissemination plan regarding
knowledge and information with respect to effective
teaching practices, and a description of how such
knowledge and information will be implemented in el-
ementary schools or secondary schools as well as insti-
tutions of higher education;
‘‘(9) describe the commitment of the partnership
to continue the activities assisted under this subpart
without grant funds provided under this subpart; and
‘‘(10) describe how the partnership will involve
and include parents in the reform process.
‘‘Subpart 3—General Provisions
‘‘SEC. 231. ACCOUNTABILITY AND EVALUATION.
‘‘(a) TEACHER QUALITY ENHANCEMENT GRANTS.—
‘‘(1) ACCOUNTABILITY REPORT.—A State that re-
ceives a grant under subpart 1 shall submit an an-
nual accountability report to the Secretary, the Com-
mittee on Labor and Human Resources of the Senate,
and the Committee on Education and the Workforce
of the House of Representatives. Such report shall in-
clude a description of the degree to which the State,
in using funds provided under subpart 1, has made
substantial progress in meeting the following goals:
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‘‘(A) STUDENT ACHIEVEMENT.—Increasing
student achievement for all students, as measured
by increased graduation rates, decreased dropout
rates, or higher scores on local, State or other as-
sessments.
‘‘(B) RAISING
STANDARDS.—Raising the
State academic standards required to enter the
teaching profession, including, where appro-
priate, incentives to incorporate the requirement
of an academic major in the subject, or related
discipline, in which the teacher plans to teach.
‘‘(C) INITIAL
CERTIFICATION
OR
LICEN-
SURE.—Increasing success in the passage rate
for initial State teacher certification or licen-
sure, or increasing numbers of highly qualified
individuals being certified or licensed as teachers
through alternative programs.
‘‘(D) CORE ACADEMIC SUBJECTS.—(i) In-
creasing the percentage of secondary school class-
es taught in core academic subject areas by
teachers—
‘‘(I) with academic majors in those
areas or in a related field;
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‘‘(II) who can demonstrate a high level
of competence through rigorous academic
subject area tests; or
‘‘(III) who can demonstrate high levels
of competence through experience in rel-
evant content areas.
‘‘(ii) Increasing the percentage of elemen-
tary school classes taught by teachers—
‘‘(I) with academic majors in the arts
and sciences; or
‘‘(II) who can demonstrate high levels
of competence through experience in rel-
evant content areas.
‘‘(E) DECREASING
SHORTAGES
FOR
PRO-
FESSIONAL
DEVELOPMENT.—Decreasing short-
ages of qualified teachers in poor urban and
rural areas.
‘‘(F) 
INCREASING
OPPORTUNITIES.—In-
creasing opportunities for enhanced and ongoing
professional development that improves the aca-
demic content knowledge of teachers in the sub-
ject areas in which the teachers are certified to
teach or in which the teachers are working to-
ward certification to teach.
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‘‘(G) TECHNOLOGY INTEGRATION.—Increas-
ing the number of teachers prepared to integrate
technology in the classroom.
‘‘(2) TEACHER
QUALIFICATIONS
PROVIDED
TO
PARENT
UPON
REQUEST.—Any local educational
agency that benefits from the activities assisted under
subpart 1 shall make available, upon request and in
an understandable and uniform format, to any par-
ent of a student attending any school served by the
local educational agency, information regarding the
qualifications of the student’s classroom teacher with
regard to the subject matter in which the teacher pro-
vides instruction. The local educational agency shall
inform parents that the parents are entitled to receive
the information upon request.
‘‘(b) TEACHER TRAINING PARTNERSHIP EVALUATION
PLAN.—Each teacher training partnership receiving a
grant under subpart 2 shall establish an evaluation plan
that includes strong performance objectives established in
negotiation with the Secretary at the time of the grant
award. The plan shall include objectives and measures for—
‘‘(1) increased student achievement for all stu-
dents as measured by increased graduation rates, de-
creased dropout rates, or higher scores on local, State,
or other assessments for a year compared to student
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achievement as determined by the rates or scores, as
the case may be, for the year prior to the year for
which a grant under this part is received;
‘‘(2) increased teacher retention in the first 3
years of a teacher’s career;
‘‘(3) increased success in the passage rate for ini-
tial State certification or licensure of teachers;
‘‘(4) increased percentages of secondary school
classes taught in core academic subject areas by teach-
ers—
‘‘(A) with academic majors in those areas
or in a related field;
‘‘(B) who can demonstrate a high level of
competence through rigorous academic subject
area tests; and
‘‘(C) increasing the percentage of elemen-
tary school classes taught by teachers with aca-
demic majors in the arts and sciences;
‘‘(5) increased integration of technology in teach-
er preparation and in classroom instruction;
‘‘(6) restructuring or change of methodology
courses to reflect best practices learned from elemen-
tary schools, secondary schools or other entities;
‘‘(7) increased dissemination of information
about effective teaching strategies and practices; and
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‘‘(8) other effects of increased integration among
members of the partnership.
‘‘SEC. 232. REVOCATION OF GRANT.
‘‘Each State or teacher training partnership receiving
a grant under this part shall report annually on progress
toward meeting the purposes of this part, and the goals,
objectives and measures described in section 231. If the Sec-
retary, after consultation with the peer review panel de-
scribed in section 213(b) determines that the State or part-
nership is not making substantial progress in meeting the
purposes, goals, objectives and measures, as appropriate, by
the end of the second year of the grant, the grant shall not
be continued for the third year of the grant.
‘‘SEC. 233. EVALUATION AND DISSEMINATION.
‘‘The Secretary shall evaluate the activities funded
under this part and report the Secretary’s findings to the
Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives. The Secretary shall broadly dis-
seminate successful practices developed by the States and
teacher training partnerships under this part, and shall
broadly disseminate information regarding such practices
so developed that were found to be ineffective.
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‘‘SEC. 234. INTERNATIONAL STUDY AND REPORT.
‘‘(a) STUDY.—The Secretary shall conduct a study
through the National Center for Education Statistics re-
garding the ways teachers are trained and the extent to
which teachers in the United States and other comparable
countries are teaching in areas other than the teachers’ field
of study or expertise. The study will examine specific fields
and will outline the nature and extent of the problem of
out-of-field teaching in the United States and in other coun-
tries that are considered comparable to the United States.
The study shall include, at a minimum, all the countries
that participated in the Third International Mathematics
and Science Study (TIMSS).
‘‘(b) REPORT.—The Secretary shall report to Congress
regarding the results of the study described in subsection
(a).
‘‘SEC. 235. ACCOUNTABILITY FOR PROGRAMS THAT PRE-
PARE TEACHERS.
‘‘(a) INFORMATION COLLECTION AND PUBLICATION.—
‘‘(1) DEFINITIONS.—
‘‘(A) Within six months of the date of enact-
ment of the Higher Education Amendments of
1998, the Commissioner of the National Center
for Education Statistics, in consultation with
States and institutions of higher education, shall
develop key definitions and uniform methods of
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calculation for terms related to the performance
of elementary school and secondary school teach-
er preparation programs.
‘‘(B) In complying with this section, the
Secretary and State shall ensure that fair and
equitable methods are used in reporting and that
they protect the privacy of individuals.
‘‘(2) INFORMATION.—
‘‘(A) STATE REPORT CARD ON THE QUALITY
OF TEACHER PREPARATION.—States that receive
funds under this Act shall provide to the Sec-
retary, within two years of enactment of the
Higher Education Amendments of 1998, and an-
nually thereafter, in a uniform and comprehen-
sible manner that conforms with the definitions
and methods established in subsection (a)(1), a
State report card on the quality of teacher prep-
aration, which shall include at least the follow-
ing:
‘‘(i) A description of the teacher certifi-
cation and licensure assessments, and any
other certification and licensure require-
ments, used by each State.
‘‘(ii) The standards and criteria that
prospective teachers must meet in order to
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attain initial teacher licensing or certifi-
cation and to be licensed to teach particular
subjects or in particular grades within the
State.
‘‘(iii) A description of the extent to
which those assessments and requirements
are aligned with the State’s standards and
assessments for students.
‘‘(iv) The percentage of teaching can-
didates who passed each of the assessments
used by the State for licensure and certifi-
cation, and the ‘cut score’ on each assess-
ment that determines whether a candidate
has passed that assessment.
‘‘(v) The percentage of teaching can-
didates who passed each of the assessments
used by the State for licensure and certifi-
cation, disaggregated by the teacher prepa-
ration program in that State from which
the teacher candidate received his or her
most recent degree. States shall make these
data available widely and publicly.
‘‘(vi) Information on the extent to
which teachers in the State have been given
waivers of State licensure or certification
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requirements, including the proportion of
such teachers distributed across high and
low poverty districts and across subject
areas.
‘‘(vii) A description of each State’s al-
ternative routes to teacher certification, if
any, and the percentage of teachers certified
through alternative certification routes who
pass State licensing assessments.
‘‘(viii) For each State, a description of
proposed criteria for assessing the perform-
ance of teacher preparation programs with-
in institutions of higher education, includ-
ing but not limited to indicators of teacher
candidate knowledge and skills as described
in subsection (b)(1)(A).
‘‘(B) REPORT OF THE SECRETARY ON THE
QUALITY OF TEACHER PREPARATION.—The Sec-
retary shall publish annually and make widely
available a report card on teacher qualifications
and preparation in the United States, including
all the information reported in subparagraphs
(A) (i)–(viii), beginning three years after enact-
ment of the Higher Education Amendments of
1998. The Secretary shall report to Congress a
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comparison of States’ efforts to improve teaching
quality. The Secretary shall also report on the
national mean and median scores on any stand-
ardized test that is used in more than one State
for teacher licensure or certification. In the case
of teacher preparation programs with fewer than
10 graduates taking any single initial teacher
certification assessment during any administra-
tion of such assessment, the Secretary shall col-
lect and publish information with respect to an
average pass rate on State certification or licen-
sure assessments taken over 3 years.
‘‘(C) INSTITUTIONAL
REPORT
CARDS
ON
THE QUALITY OF TEACHER PREPARATION.—Each
institution of higher education that conducts a
teacher preparation program that enrolls stu-
dents receiving Federal assistance shall, not later
than two years after the enactment of the Higher
Education Amendments of 1998, and annually
thereafter, report, in a uniform and comprehen-
sible manner, the following information to the
State, and the general public, including through
publications such as course catalogues and pro-
motional materials sent to potential applicants,
high school guidance counselors, and prospective
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employers of its program graduates, in a manner
that conforms with the definitions and methods
established under subsection (a)(1):
‘‘(i) For the most recent year for which
the information is available, the passing
rate of its graduates on the teacher certifi-
cation and licensure assessments of the
State in which it is located, but only for
those students who took those assessments
within three years of completing the pro-
gram. A comparison of the program’s pass
rate with the State average pass rate shall
be included as well. In the case of teacher
preparation programs with fewer than 10
graduates taking any single initial teacher
certification assessment during any admin-
istration of such assessment, the institution
shall collect and publish information with
respect to an average pass rate on State cer-
tification or licensure assessments taken
over 3 years.
‘‘(ii) The number of students in the
program, the average number of hours of su-
pervised practice teaching required for those
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in the program, and the faculty-student
ratio in supervised practice teaching.
‘‘(iii) In States that approve or ac-
credit teacher education programs, a state-
ment of whether the institution’s program is
so approved or accredited.
‘‘(iv) Whether the program has been
designated as low-performing by the State
under subsection (b)(1)(B).
In addition to the actions authorized in section
487(c), the Secretary may impose a fine not to
exceed $25,000 on a teacher preparation pro-
gram for failure to provide the information de-
scribed in subsection (a)(2)(B) in a timely or ac-
curate manner.
‘‘(b) ACCOUNTABILITY.—
‘‘(1) States receiving funding under this Act,
shall develop and implement, no later than three
years after enactment of the Higher Education
Amendments of 1998, the following teacher prepara-
tion program accountability measures and publish the
measures publicly and widely:
‘‘(A) A description of State criteria for
identifying low-performing teacher preparation
programs which may include a baseline pass
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rate on State licensing assessments and other in-
dicators of teacher candidate knowledge and
skill. States that do not employ assessments as
part of their criteria for licensing or certification
are not required to meet this criterion until such
time as the State initiates the use of such assess-
ments.
‘‘(B) Procedures for identifying low-per-
forming teacher preparation programs based on
the criteria developed by the State as required by
subsection (b)(1)(A), and publish a list of those
programs.
‘‘(C) States that have, prior to enactment,
already conformed with subsections (b)(1) (A)–
(B), need not change their procedures, unless the
State chooses to do so.
‘‘(2) Not later than four years after enactment of
the Higher Education Amendments of 1998, any
teacher preparation programs for which the State has
withdrawn its approval or terminated its financial
support due to the low performance of its teacher
preparation program based on procedures described
in subsection (b)(1)—
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‘‘(A) shall be ineligible for any funding for
professional development activities awarded by
the Department of Education; and
‘‘(B) shall not be permitted to accept or en-
roll any student that receives aid under title IV
of this Act in its teacher preparation program.
‘‘SEC. 236. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this part $300,000,000 for fiscal year 1999 and such sums
as necessary for each of the 4 succeeding fiscal years, of
which—
‘‘(1) 50 percent shall be available for each fiscal
year to carry out subpart 1; and
‘‘(2) 50 percent shall be available for each fiscal
year to carry out subpart 2.
‘‘PART B—RECRUITING NEW TEACHERS FOR
UNDERSERVED AREAS
‘‘SEC. 251. STATEMENT OF PURPOSE.
‘‘It is the purpose of this part to—
‘‘(1) provide scholarships and, as necessary, sup-
port services for students with high potential to be-
come effective teachers, particularly minority stu-
dents;
‘‘(2) increase the quality and number of new
teachers nationally; and
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‘‘(3) increase the ability of schools in under-
served areas to recruit a qualified teaching staff.
‘‘SEC. 252. DEFINITIONS.
‘‘In this part—
‘‘(1) ELIGIBLE PARTNERSHIP.—
‘‘(A) IN GENERAL.—The term ‘eligible part-
nership’ means a partnership consisting of—
‘‘(i) an institution of higher education
that awards baccalaureate degrees and pre-
pares teachers for their initial entry into
the teaching profession; and
‘‘(ii) one or more local educational
agencies that serve underserved areas.
‘‘(B) 
ADDITIONAL
PARTNERS.—Such 
a
partnership may also include—
‘‘(i) 2-year institutions of higher edu-
cation that operate teacher preparation pro-
grams and maintain articulation agree-
ments, with the institutions of higher edu-
cation that award baccalaureate degrees for
the transfer of credits in teacher prepara-
tion;
‘‘(ii) State agencies that have respon-
sibility for policies related to teacher prepa-
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ration and teacher certification or licensure;
and
‘‘(iii) other public and private, non-
profit agencies and organizations that serve,
or are located in, communities served by the
local educational agencies in the partner-
ship, and that have an interest in teacher
recruitment, preparation, and induction.
‘‘(2) SUPPORT
SERVICES.—The term ‘support
services’ means—
‘‘(A) academic advice and counseling;
‘‘(B) tutorial services;
‘‘(C) mentoring; and
‘‘(D) child care and transportation, if fund-
ing for those services cannot be arranged from
other sources.
‘‘(3) UNDERSERVED
AREA.—The term ‘under-
served area’ means—
‘‘(A) the area served by the 3 local edu-
cational agencies in the State that have the high-
est numbers of children, ages 5 through 17, from
families below the poverty level (based on data
satisfactory to the Secretary); and
‘‘(B) the area served by any other local edu-
cational agency in which the percentage of such
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children is at least 20 percent, or the number of
such children is at least 10,000.
‘‘SEC. 253. GRANT AUTHORITY AND CONDITIONS.
‘‘(a) GRANTS AUTHORIZED.—
‘‘(1) GRANTS.—
‘‘(A) IN GENERAL.—From amounts appro-
priated under section 262 the Secretary shall
award grants, on a competitive basis, to eligible
partnerships to enable the eligible partnerships
to pay the Federal share of the cost of carrying
out the activities described in section 255.
‘‘(B) DURATION.—Each grant awarded
under subparagraph (A) shall be awarded for a
period not to exceed 5 years.
‘‘(2) 
CONTINUING
ELIGIBILITY; 
REVIEW
OF
PROGRESS.—The Secretary shall—
‘‘(A) continue to make grant payments for
the second and succeeding years of a grant
awarded under this part, only after determining
that the eligible partnership is making satisfac-
tory progress in carrying out the activities under
the grant; and
‘‘(B) conduct an intensive review of the eli-
gible partnerships’s progress under the grant,
with the assistance of outside experts, before
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making grant payments for the fourth year of
the grant.
‘‘(3) MAXIMUM
NUMBER.—No eligible partner-
ship may receive more than 2 grants under this sub-
section.
‘‘(b) MATCHING REQUIREMENT.—
‘‘(1) FEDERAL SHARE.—The Federal share of the
cost of activities carried out under a grant made
under subsection (a) shall not exceed—
‘‘(A) 70 percent of the cost in the first year
of the grant;
‘‘(B) 60 percent in the second year;
‘‘(C) 60 percent in the third year;
‘‘(D) 50 percent in the fourth year; and
‘‘(E) 50 percent in the fifth year and any
succeeding year (including each year of the sec-
ond grant, if any).
‘‘(2) NON-FEDERAL
SHARE.—The non-Federal
share of activities carried out with a grant under sub-
section (a) may be provided in cash or in kind, fairly
evaluated, and may be obtained from any non-Fed-
eral public or private source.
‘‘(c) PLANNING GRANTS.—
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‘‘(1) IN GENERAL.—The Secretary may award
planning grants to eligible partnerships that are not
ready to implement programs under subsection (a).
‘‘(2) DURATION.—Each planning grant shall be
for a period of not more than 1 year, which shall be
in addition to the period of any grant under sub-
section (a).
‘‘(3) REQUIREMENT.—Any recipient of a plan-
ning grant under this subsection that wishes to re-
ceive a grant under subsection (a)(1) shall separately
apply for a grant under that subsection.
‘‘SEC. 254. GRANT APPLICATIONS.
‘‘(a) APPLICATIONS REQUIRED.—Any eligible partner-
ship desiring to receive a grant under this part shall submit
an application to the Secretary at such time, in such form,
and containing such information as the Secretary may re-
quire.
‘‘(b) APPLICATION CONTENTS.—Each application for
a grant under section 253(a) shall include—
‘‘(1) a designation of the institution or agency,
within the eligible partnership, that will serve as the
fiscal agent for the grant;
‘‘(2) information on the quality of the teacher
preparation program of the institution of higher edu-
cation participating in the eligible partnership and
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how the eligible partnership will ensure, through im-
provements in the eligible partnership’s teacher prep-
aration practices or other appropriate strategies, that
scholarship recipients will receive high-quality prepa-
ration;
‘‘(3) a description of the assessment the members
of the eligible partnership have undertaken—
‘‘(A) to determine—
‘‘(i) the most critical needs of the local
educational agencies, particularly the needs
of schools in high-poverty areas, for new
teachers (which may include teachers in
particular subject areas or at certain grade
levels); and
‘‘(ii) how the project carried out under
the grant will address those needs; and
‘‘(B) that reflects the input of all significant
entities in the community (including organiza-
tions representing teachers and parents) that
have an interest in teacher recruitment, prepara-
tion, and induction;
‘‘(4) a description of the project the eligible part-
nership will carry out with the grant, including in-
formation regarding—
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‘‘(A) the recruitment and outreach efforts
the eligible partnership will undertake to pub-
licize the availability of scholarships and other
assistance under the program;
‘‘(B)(i) the number and types of students
that the eligible partnership will serve under the
program, which may include education para-
professionals seeking to achieve full teacher cer-
tification or licensure; teachers whom the partner
local educational agencies have hired under
emergency certification or licensure procedures;
or former military personnel, mid-career profes-
sionals, or AmeriCorps or Peace Corps volun-
teers, who desire to enter teaching; and
‘‘(ii) the criteria that the eligible partner-
ship will use in selecting the students, including
criteria to determine whether individuals have
the capacity to benefit from the program, com-
plete teacher certification requirements, and be-
come effective teachers;
‘‘(C) the activities the eligible partnership
will carry out under the grant, including a de-
scription of, and justification for, any support
services the institution of higher education par-
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ticipating in the eligible partnership will offer to
participating students;
‘‘(D) the number and funding range of the
scholarships the institution will provide to stu-
dents; and
‘‘(E) the procedures the institution will es-
tablish for entering into, and enforcing, agree-
ments with scholarship recipients regarding the
recipients’ fulfillment of the service commitment
described in section 259;
‘‘(5) a description of how the institution will use
funds provided under the grant only—
‘‘(A) to increase the number of students—
‘‘(i) with high potential to be effective
teachers;
‘‘(ii) participating in the institution’s
teacher preparation programs; or
‘‘(iii) in the particular type or types of
preparation programs that the grant will
support; or
‘‘(B) to increase the number of graduates,
who are minority individuals, with high poten-
tial to be effective teachers;
‘‘(6) a description of the commitments, by the
local educational agencies participating in the part-
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nership, to hire qualified scholarship recipients in the
schools served by the agencies and in the subject areas
or grade levels for which the scholarship recipients
will be trained, and a description of the actions the
participating institution of higher education, the par-
ticipating local educational agencies, and the other
partners will take to facilitate the successful transi-
tion of the recipients into teaching; and
‘‘(7) a description of the eligible partnership’s
plan for institutionalizing the activities the partner-
ship is carrying out under this part, so that the ac-
tivities will continue once Federal funding ceases.
‘‘SEC. 255. USES OF FUNDS.
‘‘(a) IN GENERAL.—Each eligible partnership receiv-
ing a grant under section 523(a) shall use the grant funds
for the following:
‘‘(1) SCHOLARSHIPS.—Scholarships to help stu-
dents pay the costs of tuition, room, board, and other
expenses of completing a teacher preparation pro-
gram.
‘‘(2) SUPPORT SERVICES.—Support services, if
needed to enable scholarship recipients to complete
postsecondary education programs.
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‘‘(3) FOLLOWUP
SERVICES.—Followup services
provided to former scholarship recipients during the
recipients’ first 3 years of teaching.
‘‘(4) PAYMENTS.—Payments to partner local
educational agencies, if needed to enable the agencies
to permit paraprofessional staff to participate in
teacher preparation programs (such as the cost of re-
lease time for the staff).
‘‘(5) ADDITIONAL
COURSES.—If appropriate,
and if no other funds are available for, paying the
costs of additional courses taken by former scholar-
ship recipients during the recipients’ initial 3 years
of teaching.
‘‘(b) PLANNING GRANTS.—A recipient of a planning
grant under section 253(c) shall use the grant funds for the
costs of planning for the implementation of a grant under
section 253(a).
‘‘SEC. 256. SELECTION OF APPLICANTS.
‘‘(a) PEER REVIEW.—The Secretary, using a peer re-
view process, shall select eligible partnerships to receive
funding under this part on the basis of—
‘‘(1) the quality of the teacher preparation pro-
gram offered by the institution participating in the
partnership;
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‘‘(2) the quality of the program carried out
under the application; and
‘‘(3) the capacity of the partnership to carry out
the grant successfully.
‘‘(b) CRITERIA.—
‘‘(1) IN GENERAL.—In awarding grants under
section 253(a), the Secretary shall seek to ensure
that—
‘‘(A) in the aggregate, eligible partnerships
carry out a variety of approaches to preparing
new teachers; and
‘‘(B) there is an equitable geographic dis-
tribution of the grants.
‘‘(2) SPECIAL CONSIDERATION.—In addition to
complying with paragraph (1), the Secretary shall
give special consideration to—
‘‘(A) applications most likely to result in
the preparation of increased numbers of individ-
uals with high potential for effective teaching
who are minority individuals;
‘‘(B) applications from partnerships that
have as members of the partnerships historically
Black colleges and universities, Hispanic-serving
institutions, and Tribal Colleges and Univer-
sities; or
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‘‘(C) applications from partnerships that
propose to carry out programs that use innova-
tive means, including technology, to recruit for
participation in the activities assisted under the
programs students who are Native Hawaiian,
Alaska Native, or Native American Pacific Is-
lander.
‘‘(c) SECOND FIVE-YEAR GRANTS.—In selecting eligi-
ble partnerships to receive second year grant payments
under this part, the Secretary shall give a preference to eli-
gible partnerships whose projects have resulted in—
‘‘(1) the placement and retention of a substantial
number of high-quality graduates in teaching posi-
tions in underserved, high-poverty schools;
‘‘(2) the adoption of effective programs that meet
the teacher preparation needs of high-poverty urban
and rural areas; and
‘‘(3) effective partnerships with elementary
schools and secondary schools that are supporting im-
provements in student achievement.
‘‘SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELA-
TION TO OTHER ASSISTANCE.
‘‘(a) DURATION OF ASSISTANCE.—No individual may
receive scholarship assistance under this part—
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‘‘(1) for more than 5 years of postsecondary edu-
cation; and
‘‘(2) unless that individual satisfies the require-
ments of section 484(a)(5).
‘‘(b) AMOUNT OF ASSISTANCE.—No individual may
receive a scholarship awarded under this part that exceeds
the cost of attendance, as defined in section 472, at the in-
stitution of higher education the individual is attending.
‘‘(c) RELATION TO OTHER ASSISTANCE.—A scholar-
ship awarded under this part—
‘‘(1) shall not be reduced on the basis of the indi-
vidual’s receipt of other forms of Federal student fi-
nancial assistance; and
‘‘(2) shall be regarded as other financial assist-
ance available to the student, within the meaning of
sections 471(3) and 480(j)(1), in determining the stu-
dent’s eligibility for grant, loan, or work assistance
under title IV.
‘‘SEC. 258. SCHOLARSHIP CONDITIONS.
‘‘(a) IN GENERAL.—A recipient of a scholarship under
this part shall continue to receive the scholarship assistance
only as long as the recipient is—
‘‘(1) enrolled as a full-time student and pursuing
a course of study leading to teacher certification, un-
less the recipient is working in a public school (as a
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paraprofessional, or as a teacher under emergency
credentials) while participating in the program; and
‘‘(2) maintaining satisfactory progress as deter-
mined by the institution of higher education partici-
pating in the partnership.
‘‘(b) SPECIAL RULE. Each eligible partnership shall
modify the application of section 257(a)(1) and of sub-
section (a)(1) to the extent necessary to accommodate the
rights of individuals with disabilities under section 504 of
the Rehabilitation Act of 1973.
‘‘SEC. 259. SERVICE REQUIREMENTS.
‘‘(a) REQUIREMENT.—Each eligible partnership re-
ceiving a grant under this part shall enter into an agree-
ment, with each student to whom the partnership awards
a scholarship under this part, providing that a scholarship
recipient who completes a teacher preparation program
under this part shall, within 7 years of completing that pro-
gram, teach full-time for at least 5 years in a high-poverty
school in an underserved geographic area or repay the
amount of the scholarship, under the terms and conditions
established by the Secretary.
‘‘(b) REGULATIONS. The Secretary shall prescribe regu-
lations relating to the requirements of subsection (a), in-
cluding any provisions for waiver of those requirements.
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‘‘SEC. 260. EVALUATION.
‘‘The Secretary shall provide for an evaluation of the
program carried out under this part, which shall asses such
issues as—
‘‘(1) whether institutions participating in the el-
igible partnerships are successful in preparing schol-
arship recipients to teach to high State and local
standards;
‘‘(2) whether scholarship recipients are successful
in completing teacher preparation programs, becom-
ing fully certified teachers, and obtaining teaching
positions in underserved areas, and whether the re-
cipients continue teaching in those areas over a pe-
riod of years;
‘‘(3) the national impact of the program in as-
sisting local educational agencies in underserved
areas to recruit, prepare, and retain diverse, high-
quality teachers in the areas in which the agencies
have the greatest needs;
‘‘(4) the long-term impact of the grants on teach-
er preparation programs conducted by institutions of
higher education participating in the eligible partner-
ship and on the institutions’ relationships with their
partner local educational agencies and other members
of the partnership; and
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‘‘(5) the relative effectiveness of different ap-
proaches for preparing new teachers to teach in un-
derserved areas, including their effectiveness in pre-
paring new teachers to teach to high content and per-
formance standards.
‘‘SEC. 261. NATIONAL ACTIVITIES.
‘‘The Secretary may reserve not more than 5 percent
of the funds appropriated for this part for any fiscal year
for—
‘‘(1) peer review of applications;
‘‘(2) conducting the evaluation required under
section 260; and
‘‘(3) technical assistance.
‘‘SEC. 262. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this part $37,000,000 for fiscal year 1999 and such sums
as may be necessary for each of the 4 succeeding fiscal
years.’’.
TITLE III—INSTITUTIONAL AID
SEC. 301. TRANSFERS AND REDESIGNATIONS.
(a) IN GENERAL.—Title III (20 U.S.C. 1051 et seq.)
is amended—
(1) by redesignating part D as part F;
(2) by redesignating sections 351, 352, 353, 354,
356, 357, 358, and 360 (20 U.S.C. 1066, 1067, 1068,
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1069, 1069b, 1069c, 1069d, and 1069f) as sections
391, 392, 393, 394, 395, 396, 397, and 398, respec-
tively;
(3) by transferring part B of title VII (20 U.S.C.
1132c et seq.) to title III to follow part C of title III
(20 U.S.C. 1065 et seq.), and redesignating such part
B as part D;
(4) by redesignating sections 721 through 728
(20 U.S.C. 1132c and 1132c–7) as sections 341
through 348, respectively;
(5) by transferring subparts 1 and 3 of part B
of title X (20 U.S.C. 1135b et seq. and 1135d et seq.)
to title III to follow part D of title III (as redesig-
nated by paragraph (3)), and redesignating such sub-
part 3 as subpart 2;
(6) by inserting after part D of title III (as re-
designated by paragraph (3)) the following:
‘‘PART E—MINORITY SCIENCE IMPROVEMENT
PROGRAM’’;
(7) by redesignating sections 1021 through 1024
(20 U.S.C. 1135b and 1135b–3), and sections 1041,
1042, 1043, 1044, 1046, and 1047 (20 U.S.C. 1135d,
1135d–1, 1135d–2, 1135d–3, 1135d–5, and 1135d–6)
as sections 351 through 354, and sections 361, 362,
363, 364, 365, and 366, respectively; and
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(8) by repealing section 366 (as redesignated by
paragraph (7)) (20 U.S.C. 1135d–6).
(b) CONFORMING AMENDMENT.—Section 361 (as re-
designated by subsection (a)(7)) (20 U.S.C. 1135d) is
amended—
(1) in paragraph (1), by inserting ‘‘and’’ after
the semicolon;
(2) in paragraph (2), by striking ‘‘; and’’ and
inserting a period; and
(3) by striking paragraph (3).
(c) CROSS REFERENCES.—Title III (20 U.S.C. 1051
et seq.) is amended—
(1) in section 311(b) (20 U.S.C. 1057(b)), by
striking ‘‘360(a)(1)’’ and inserting ‘‘398(a)(1)’’;
(2) in section 312 (20 U.S.C. 1058)—
(A) in subsection (b)(1)(B), by striking
‘‘352(b)’’ and inserting ‘‘392(b)’’; and
(B) in subsection (c)(2), by striking
‘‘352(a)’’ and inserting ‘‘392(a)’’;
(3) in section 313(b) (20 U.S.C. 1059(b)), by
striking ‘‘354(a)(1)’’ and inserting ‘‘394(a)(1)’’;
(4) in section 342 (as redesignated by subsection
(a)(4)) (20 U.S.C. 1132c–1)—
(A) in paragraph (3), by striking ‘‘723(b)’’
and inserting ‘‘343(b)’’;
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(B) in paragraph (4), by striking ‘‘723’’
and inserting ‘‘343’’;
(C) in the matter preceding subparagraph
(A) of paragraph (5), by striking ‘‘724(b)’’ and
inserting ‘‘344(b)’’;
(D) in paragraph (8), by striking ‘‘725(1)’’
and inserting ‘‘345(1)’’; and
(E) in paragraph (9), by striking ‘‘727’’
and inserting ‘‘347’’;
(5) in section 343 (as redesignated by subsection
(a)(4)) (20 U.S.C. 1132c–2)—
(A) in subsection (a), by striking ‘‘724’’ and
inserting ‘‘344’’; and
(B) in subsection (b)—
(i) in the matter preceding paragraph
(1), by striking ‘‘725(1) and 726’’ and in-
serting ‘‘345(1) and 346’’;
(ii) in paragraph (10), by striking
‘‘724’’ and inserting ‘‘344’’; and
(iii) in subsection (d), by striking
‘‘723(c)(1)’’ and inserting ‘‘343(c)(1)’’;
(6) in section 345(2) (as redesignated by sub-
section (a)(4)) (20 U.S.C. 1132c–4(2)), by striking
‘‘723’’ and inserting ‘‘343’’;
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(7) in section 348 (as redesignated by subsection
(a)(4)) (20 U.S.C. 1132c–7), by striking ‘‘725(1)’’
and inserting ‘‘345(1)’’;
(8) in section 353(a) (as redesignated by sub-
section (a)(7)) (20 U.S.C. 1135b–2(a))—
(A) in paragraph (1), by striking ‘‘1046(6)’’
and inserting ‘‘365(6)’’;
(B) 
in 
paragraph 
(2), 
by 
striking
‘‘1046(7)’’ and inserting ‘‘365(7)’’;
(C) in paragraph (3), by striking ‘‘1046(8)’’
and inserting ‘‘365(8)’’; and
(D) 
in 
paragraph 
(4), 
by 
striking
‘‘1046(9)’’ and inserting ‘‘365(9)’’;
(9) in section 361(1) (as redesignated by sub-
section (a)(7)) (20 U.S.C. 1135d(1)), by striking
‘‘1046(3)’’ and inserting ‘‘365(3)’’;
(10) in section 362(a) (as redesignated by sub-
section (a)(7)) (20 U.S.C. 1135d–1(a))—
(A) in the matter preceding paragraph (1),
by striking ‘‘1041’’ and inserting ‘‘361’’; and
(B) in paragraph (1), by striking ‘‘1021(b)’’
and inserting ‘‘351(b)’’; and
(11) in section 391(b)(6) (as redesignated by sub-
section (a)(2)), by striking ‘‘357’’ and inserting
‘‘396’’.
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SEC. 302. FINDINGS.
Section 301(a) (20 U.S.C. 1051(a)) is amended—
(1) by redesignating paragraphs (3) through (7)
as paragraphs (4) through (8), respectively; and
(2) by inserting after paragraph (2) the follow-
ing:
‘‘(3) in order to be competitive and provide a
high-quality education for all, institutions of higher
education should improve their technological capacity
and make effective use of technology;’’.
SEC. 303. STRENGTHENING INSTITUTIONS.
(a) GRANTS.—Section 311 (20 U.S.C. 1057) is amend-
ed—
(1) in subsection (b)(3)(D), by inserting ‘‘, in-
cluding high technology equipment,’’ after ‘‘equip-
ment’’; and
(2) by adding at the end the following:
‘‘(c) ENDOWMENT FUND.—
‘‘(1) IN GENERAL.—An eligible institution may
use not more than 20 percent of the grant funds pro-
vided under this part to establish or increase an en-
dowment fund at such institution.
‘‘(2) MATCHING REQUIREMENT.—In order to be
eligible to use grant funds in accordance with para-
graph (1), the eligible institution shall provide match-
ing funds, in an amount equal to the Federal funds
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used in accordance with paragraph (1), for the estab-
lishment or increase of the endowment fund.
‘‘(3) COMPARABILITY.—The provisions of part C,
regarding the establishment or increase of an endow-
ment fund, that the Secretary determines are not in-
consistent with this subsection, shall apply to funds
used under paragraph (1).’’.
(b) DURATION OF GRANT.—Section 313 (20 U.S.C.
1059) is amended by adding at the end the following:
‘‘(d) WAIT-OUT-PERIOD.—Each eligible institution
that received a grant under this part for a 5-year period
shall not be eligible to receive an additional grant under
this part until 2 years after the date on which the 5-year
grant period terminates.
(c) AMERICAN INDIAN TRIBALLY CONTROLLED COL-
LEGES AND UNIVERSITIES.—Section 316 (20 U.S.C. 1059c)
is amended to read as follows:
‘‘SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COL-
LEGES AND UNIVERSITIES.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
provide grants and related assistance to American Indian
Tribal Colleges and Universities to enable such institutions
to improve and expand their capacity to serve Indian stu-
dents.
‘‘(b) DEFINITIONS.—In this section:
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‘‘(1) INDIAN.—The term ‘Indian’ has the mean-
ing given the term in section 2 of the Tribally Con-
trolled College or University Assistance Act of 1978.
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has
the meaning given the term in section 2 of the Trib-
ally Controlled College or University Assistance Act of
1978.
‘‘(3) TRIBAL
COLLEGE
OR
UNIVERSITY.—The
term ‘Tribal College or University’ has the meaning
give the term ‘tribally controlled college or university’
in section 2 of the Tribally Controlled College or Uni-
versity Assistance Act of 1978, and includes an insti-
tution listed in the Equity in Educational Land
Grant Status Act of 1994.
‘‘(4) INSTITUTION OF HIGHER EDUCATION.—The
term ‘institution of higher education’ means an insti-
tution of higher education as defined in section
1201(a), except that paragraph (2) of such section
shall not apply.
‘‘(c) AUTHORIZED ACTIVITIES.—
‘‘(1) IN GENERAL.—Grants awarded under this
section shall be used by Tribal Colleges or Universities
to assist such institutions to plan, develop, undertake,
and carry out activities to improve and expand such
institutions’ capacity to serve Indian students.
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‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—
The activities described in paragraph (1) may in-
clude—
‘‘(A) purchase, rental, or lease of scientific
or laboratory equipment for educational pur-
poses, including instructional and research pur-
poses;
‘‘(B) construction, maintenance, renovation,
and improvement in classrooms, libraries, lab-
oratories, and other instructional facilities, in-
cluding purchase or rental of telecommunications
technology equipment or services;
‘‘(C) support of faculty exchanges, faculty
development, and faculty fellowships to assist in
attaining advanced degrees in the faculty’s field
of instruction;
‘‘(D) academic instruction in disciplines in
which American Indians are underrepresented;
‘‘(E) purchase of library books, periodicals,
and other educational materials, including tele-
communications program material;
‘‘(F) tutoring, counseling, and student serv-
ice programs designed to improve academic suc-
cess;
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‘‘(G) funds management, administrative
management, and acquisition of equipment for
use in strengthening funds management;
‘‘(H) joint use of facilities, such as labora-
tories and libraries;
‘‘(I) establishing or improving a develop-
ment office to strengthen or improve contribu-
tions from alumni and the private sector;
‘‘(J) establishing or enhancing a program of
teacher education designed to qualify students to
teach in elementary schools or secondary schools,
with a particular emphasis on teaching Amer-
ican Indian children and youth, that shall in-
clude, as part of such program, preparation for
teacher certification;
‘‘(K) establishing community outreach pro-
grams that encourage American Indian elemen-
tary school and secondary school students to de-
velop the academic skills and the interest to pur-
sue postsecondary education;
‘‘(L) other activities proposed in the appli-
cation submitted pursuant to subsection (d)
that—
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‘‘(i) contribute to carrying out the ac-
tivities described in subparagraphs (A)
through (K); and
‘‘(ii) are approved by the Secretary as
part of the review and acceptance of such
application.
‘‘(3) ENDOWMENT FUND.—
‘‘(A) IN
GENERAL.—A Tribal College or
University may use not more than 20 percent of
the grant funds provided under this section to es-
tablish or increase an endowment fund at the in-
stitution.
‘‘(B) MATCHING REQUIREMENT.—In order
to be eligible to use grant funds in accordance
with subparagraph (A), the Tribal College or
University shall provide matching funds, in an
amount equal to the Federal funds used in ac-
cordance with subparagraph (A), for the estab-
lishment or increase of the endowment fund.
‘‘(C) COMPARABILITY.—The provisions of
part C regarding the establishment or increase of
an endowment fund, that the Secretary deter-
mines are not inconsistent with this paragraph,
shall apply to funds used under subparagraph
(A).
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‘‘(d) APPLICATION PROCESS.—
‘‘(1) INSTITUTIONAL ELIGIBILITY.—To be eligible
to receive assistance under this section, a Tribal Col-
lege or University shall be an institution that—
‘‘(A) is an eligible institution under section
312(b);
‘‘(B) is eligible to receive assistance under
the Tribally Controlled College or University As-
sistance Act of 1978; or
‘‘(C) is eligible to receive funds under the
Equity in Educational Land Grant Status Act
of 1994.
‘‘(2) APPLICATION.—Any Tribal College or Uni-
versity desiring to receive assistance under this sec-
tion shall submit an application to the Secretary at
such time, and in such manner, as the Secretary may
by regulation reasonably require. Each such applica-
tion shall include—
‘‘(A) a 5-year plan for improving the assist-
ance provided by the Tribal College or Univer-
sity to Indian students, increasing the rates at
which Indian secondary school students enroll in
higher education, and increasing overall post-
secondary retention rates for Indian students;
and
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‘‘(B) such enrollment data and other infor-
mation and assurances as the Secretary may re-
quire to demonstrate compliance with subpara-
graph (A) or (B) of paragraph (1).
‘‘(3) SPECIAL RULE.—For the purposes of this
part, no Tribal College or University that is eligible
for and receives funds under this section may concur-
rently receive other funds under this part or part B.’’.
(d) ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING
INSTITUTIONS.—Part A of title III (20 U.S.C. 1057 et seq.)
is amended by adding at the end the following:
‘‘SEC. 317. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING
INSTITUTIONS.
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall
provide grants and related assistance to Alaska Native-serv-
ing institutions and Native Hawaiian-serving institutions
to enable such institutions to improve and expand their ca-
pacity to serve Alaska Natives and Native Hawaiians.
‘‘(b) DEFINITIONS.—For the purpose of this section—
‘‘(1) the term ‘Alaska Native’ has the meaning
given the term in section 9308 of the Elementary and
Secondary Education Act of 1965;
‘‘(2) the term ‘Alaska Native-serving institution’
means an institution of higher education that—
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‘‘(A) is an eligible institution under section
312(b); and
‘‘(B) at the time of application, has an en-
rollment of undergraduate students that is at
least 20 percent Alaska Native students;
‘‘(3) the term ‘Native Hawaiian’ has the mean-
ing given the term in section 9212 of the Elementary
and Secondary Education Act of 1965; and
‘‘(4) the term ‘Native Hawaiian-serving institu-
tion’ means an institution of higher education
which—
‘‘(A) is an eligible institution under section
312(b); and
‘‘(B) at the time of application, has an en-
rollment of undergraduate students that is at
least 10 percent Native Hawaiian students.
‘‘(c) AUTHORIZED ACTIVITIES.—
‘‘(1) TYPES
OF
ACTIVITIES
AUTHORIZED.—
Grants awarded under this section shall be used by
Alaska Native-serving institutions and Native Ha-
waiian-serving institutions to assist such institutions
to plan, develop, undertake, and carry out programs.
‘‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—
Such programs may include—
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‘‘(A) purchase, rental, or lease of scientific
or laboratory equipment for educational pur-
poses, including instructional and research pur-
poses;
‘‘(B) renovation and improvement in class-
room, library, laboratory, and other instruc-
tional facilities;
‘‘(C) support of faculty exchanges, and fac-
ulty development and faculty fellowships to as-
sist in attaining advanced degrees in their field
of instruction;
‘‘(D) curriculum development and academic
instruction;
‘‘(E) purchase of library books, periodicals,
microfilm, and other educational materials;
‘‘(F) funds and administrative manage-
ment, and acquisition of equipment for use in
strengthening funds management;
‘‘(G) joint use of facilities such as labora-
tories and libraries; and
‘‘(H) academic tutoring and counseling pro-
grams and student support services.
‘‘(d) APPLICATION PROCESS.—
‘‘(1) INSTITUTIONAL ELIGIBILITY.—Each Alaska
Native-serving institution and Native Hawaiian-serv-
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ing institution desiring to receive assistance under
this section shall submit to the Secretary such enroll-
ment data as may be necessary to demonstrate that
it is an Alaska Native-serving institution or a Native
Hawaiian-serving institution as defined in subsection
(b), along with such other information and data as
the Secretary may by regulation require.
‘‘(2) APPLICATIONS.—Any institution which is
determined by the Secretary to be an Alaska Native-
serving institution or a Native Hawaiian-serving in-
stitution may submit an application for assistance
under this section to the Secretary. Such application
shall include—
‘‘(A) a 5-year plan for improving the assist-
ance provided by the Alaska Native-serving insti-
tution or the Native Hawaiian-serving institu-
tion to Alaska Native or Native Hawaiian stu-
dents; and
‘‘(B) such other information and assurance
as the Secretary may require.
‘‘(e) SPECIAL RULE.—For the purposes of this section,
no Alaska Native-serving institution or Native Hawaiian-
serving institution which is eligible for and receives funds
under this section may concurrently receive other funds
under this part or part B.’’.
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SEC. 304. STRENGTHENING HBCU’s.
(a) GRANTS.—Section 323 (20 U.S.C. 1062) is amend-
ed—
(1) by redesignating subsection (b) as subsection
(c); and
(2) by inserting after subsection (a) the follow-
ing:
‘‘(b) ENDOWMENT FUND.—
‘‘(1) IN GENERAL.—An institution may use not
more than 20 percent of the grant funds provided
under this part to establish or increase an endowment
fund at the institution.
‘‘(2) MATCHING REQUIREMENT.—In order to be
eligible to use grant funds in accordance with para-
graph (1), the eligible institution shall provide match-
ing funds, in an amount equal to the Federal funds
used in accordance with paragraph (1), for the estab-
lishment or increase of the endowment fund.
‘‘(3) COMPARABILITY.—The provisions of part C
regarding the establishment or increase of an endow-
ment fund, that the Secretary determines are not in-
consistent with this subsection, shall apply to funds
used under paragraph (1).’’.
(b) PROFESSIONAL OR GRADUATE INSTITUTIONS.—
Section 326 (20 U.S.C. 1063b) is amended—
(1) in subsection (a)—
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(A) 
in 
paragraph 
(2), 
by 
striking
‘‘$500,000’’ and inserting ‘‘$1,000,000’’; and
(B) by adding at the end of paragraph (2)
the following: ‘‘If a grant of less than $1,000,000
is made under this section, matching funds pro-
vided from non-Federal sources are not required.
If a grant equal to or in excess of $1,000,000 is
made under this section, matching funds pro-
vided from non-Federal sources are required only
with respect to the amount of the grant that ex-
ceeds $1,000,000.’’; and
(2) in subsection (d)(2), by striking ‘‘$500,000’’
and inserting ‘‘$1,000,000’’.
(3) in subsection (e)(1)—
(A) in subparagraph (E), by inserting ‘‘,
and any Tuskegee University qualified graduate
program’’ before the semicolon;
(B) in subparagraph (F), by inserting ‘‘,
and any Xavier University qualified graduate
program’’ before the semicolon;
(C) in subparagraph (G), by inserting ‘‘,
and any Southern University qualified graduate
program’’ before the semicolon;
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(D) in subparagraph (H), by inserting ‘‘,
and any Texas Southern University qualified
graduate program’’ before the semicolon;
(E) in subparagraph (I), by inserting ‘‘,
and any Florida A&M University qualified
graduate program’’ before the semicolon;
(F) in subparagraph (J), by inserting ‘‘,
and any North Carolina Central University
qualified graduate program’’ before the semi-
colon;
(G) in subparagraph (O), by striking ‘‘and’’
after the semicolon.
(H) in subparagraph (P)—
(i) by inserting ‘‘University’’ after
‘‘State’’; and
(ii) by striking the period and insert-
ing a semicolon; and
(I) by adding at the end the following:
‘‘(Q) Norfolk State University qualified
graduate program; and
‘‘(R) Tennessee State University qualified
graduate program.’’;
(4) in subsection (f)—
(A) 
in 
paragraph 
(1), 
by 
striking
‘‘$12,000,000’’ and inserting ‘‘$15,000,000’’;
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(B) in paragraph (2)—
(i) in the matter preceding subpara-
graph (A), by striking ‘‘$12,000,000’’ and
inserting ‘‘$15,000,000 but not in excess of
$28,000,000’’;
(ii) in subparagraph (A), by striking
‘‘$500,000’’ and inserting ‘‘$1,000,000’’;
and
(iii) in subparagraph (B)—
(I) by striking ‘‘(A) through (P)’’
and inserting ‘‘(Q) and (R)’’; and
(II) by striking the period and in-
serting ‘‘; and
(C) by adding at the end the following:
‘‘(3) any amount appropriated in excess of
$28,000,000 shall be available for the purpose of mak-
ing grants to institutions or programs described in
subparagraphs (A) through (R), on a competitive
basis and through a peer review process that takes
into consideration—
‘‘(A) the ability of the institution to match
Federal funds with non-Federal funds;
‘‘(B) the number of students enrolled in the
institution or program for which funds are
sought;
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‘‘(C) the percentage of students enrolled in
the institution or program for which funds are
sought who are eligible for need-based student
aid;
‘‘(D) the percentage of students enrolled in
the institution or program for which funds are
sought who complete their degrees within a rea-
sonable period of time as determined by the Sec-
retary; and
‘‘(E) the quality of the proposal.’’; and
(5) by adding at the end the following:
‘‘(g) SPECIAL RULE.—No institution or program de-
scribed in subsection (e)(1) that received a grant under this
section for fiscal year 1998 and that is eligible to receive
a grant under this section in a subsequent fiscal year shall
receive a grant under this section in any subsequent fiscal
year in an amount that is less than the grant amount re-
ceived for fiscal year 1996 or 1997, whichever is greater,
unless—
‘‘(1) the amount appropriated for the subsequent
fiscal year is not sufficient to provide grants under
this section to all such institutions or programs; or
‘‘(2) the institution or program cannot provide
sufficient matching funds to meet the requirements of
this section.’’.
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SEC. 305. ENDOWMENT CHALLENGE GRANTS.
Paragraph (2) of section 331(b) (20 U.S.C. 1065(b))
is amended by striking subparagraphs (B) and (C) and in-
serting the following:
‘‘(B) The Secretary may make a grant under this part
to an eligible institution in any fiscal year if the institu-
tion—
‘‘(i) applies for a grant in an amount not ex-
ceeding $500,000; and
‘‘(ii) has deposited in the eligible institution’s
endowment fund established under this section an
amount which is equal to 1⁄2 of the amount of such
grant.
‘‘(C) An eligible institution of higher education that
is awarded a grant under subparagraph (B) shall not be
eligible to receive an additional grant under subparagraph
(B) until 10 years after the date on which the grant period
terminates.’’.
SEC. 306. HBCU CAPITAL FINANCING.
(a) DEFINITION.—Section 342(5) (as redesignated by
section 301(a)(4)) (20 U.S.C. 1132c–1(5)) is amended—
(1) by redesignating subparagraphs (B), (C),
and (D) as subparagraphs (C), (F), and (G);
(2) by inserting after subparagraph (A) the fol-
lowing:
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‘‘(B) a facility for the administration of an
educational program, or a student center or stu-
dent union, except that not more than 5 percent
of the loan proceeds provided under this part
may be used for the facility, center or union if
the facility, center or union is owned, leased,
managed, or operated by a private business,
that, in return for such use, makes a payment to
the eligible institution;’’;
(3) by inserting after subparagraph (C) (as re-
designated by paragraph (1)) the following:
‘‘(D) a maintenance, storage, or utility fa-
cility that is essential to the operation of a facil-
ity, a library, a dormitory, equipment, instru-
mentation, a fixture, real property or an interest
therein, described in this paragraph;
‘‘(E) a facility designed to provide pri-
marily outpatient health care for students or fac-
ulty;’’; and
(4) in subparagraph (G) (as redesignated by
paragraph (2)), by striking ‘‘(C)’’ and inserting
‘‘(F)’’.
(b) FULL FAITH AND CREDIT.—Section 343 (as redes-
ignated by section 301(a)(4)) (20 U.S.C. 1132c–2) is
amended by adding at the end the following:
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‘‘(e) Notwithstanding any other provision of law, the
Secretary may sell a qualified bond guaranteed under this
part to any party that offers terms that the Secretary deter-
mines are in the best interest of the eligible institution.’’.
SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVE-
MENT PROGRAM.
(a) MINORITY
SCIENCE
IMPROVEMENT
PROGRAM
FINDINGS.—Subpart 1 of part E of title III (as redesig-
nated by paragraphs (6) and (7) of section 301) (20 U.S.C.
1135b et seq.) is amended by inserting after the subpart
heading the following:
‘‘SEC. 350. FINDINGS.
‘‘Congress makes the following findings:
‘‘(1) It is incumbent on the Federal Government
to support the technological and economic competi-
tiveness of the United States by improving and ex-
panding the scientific and technological capacity of
the United States. More and better prepared sci-
entists, engineers, and technical experts are needed to
improve and expand such capacity.
‘‘(2) As the Nation’s population becomes more
diverse, it is important that the educational and
training needs of all Americans are met. Underrep-
resentation of minorities in science and technological
fields diminishes our Nation’s competitiveness by im-
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pairing the quantity of well prepared scientists, engi-
neers, and technical experts in these fields.
‘‘(3) Despite significant limitations in resources,
minority institutions provide an important edu-
cational opportunity for minority students, particu-
larly in science and engineering fields. Aid to minor-
ity institutions is a good way to address the under-
representation of minorities in science and techno-
logical fields.
‘‘(4) There is a strong Federal interest in im-
proving science and engineering programs at minor-
ity institutions as such programs lag behind in pro-
gram offerings and in student enrollment compared to
such programs at other institutions of higher edu-
cation.’’.
(b) DEFINITIONS.—Section 365(4) (as redesignated by
section 301(a)(7)) (20 U.S.C. 1135d–5(4)) is amended by
inserting ‘‘behavioral,’’ after ‘‘physical,’’.
SEC. 308. GENERAL PROVISIONS.
(a) APPLICATIONS.—Paragraph (1) of section 391(b)
(as redesignated by section 301(a)(2)) (20 U.S.C. 1066(b))
is amended by inserting ‘‘, D or E’’ after ‘‘part C’’.
(b) APPLICATION REVIEW PROCESS.—Section 393 (as
redesignated by section 301(a)(2)) (20 U.S.C. 1068) is
amended by adding at the end the following:
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‘‘(d) EXCLUSION.—The provisions of this section shall
not apply to applications submitted under part D.’’.
(c) WAIVERS.—Paragraph (2) of section 395(b) (as re-
designated by section 301(a)(2)) (20 U.S.C. 1069b(b)) is
amended by striking ‘‘title IV, VII, or VIII’’ and inserting
‘‘part D or title IV’’.
(d) AUTHORIZATION
OF APPROPRIATIONS.—Section
398(a) (as redesignated by section 301(a)(2)) (20 U.S.C.
1069f) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A), by striking
‘‘1993’’ and inserting ‘‘1999’’;
(B) in subparagraph (B)—
(i) 
in 
clause 
(i), 
by 
striking
‘‘$45,000,000 for fiscal year 1993’’ and in-
serting ‘‘$5,000,000 for fiscal year 1999’’;
(ii) by striking clause (ii); and
(iii) by striking ‘‘(B)(i) There’’ and in-
serting ‘‘(B) There’’; and
(C) by adding at the end the following:
‘‘(C) There are authorized to be appropriated to
carry out section 317, $5,000,000 for fiscal year 1999
and such sums as may be necessary for each of the
4 succeeding fiscal years.’’;
(2) in paragraph (2)—
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(A) in subparagraph (A), by striking
‘‘1993’’ and inserting ‘‘1999’’; and
(B) in subparagraph (B), by striking
‘‘$20,000,000 for fiscal year 1993’’ and inserting
‘‘$30,000,000 for fiscal year 1999’’;
(3) in paragraph (3), by striking ‘‘$50,000,000
for fiscal year 1993’’ and inserting ‘‘$10,000,000 for
fiscal year 1999’’; and
(4) by adding at the end the following:
‘‘(4) PART D.—There are authorized to be appro-
priated to carry out part D, $110,000 for fiscal year
1999, and such sums as may be necessary for each of
the 4 succeeding fiscal years.
‘‘(5) PART E.—There are authorized to be appro-
priated to carry out part E, $10,000,000 for fiscal
year 1999, and such sums as may be necessary for
each of the 4 succeeding fiscal years.’’.
TITLE IV—STUDENT ASSISTANCE
PART A—GRANTS TO STUDENTS IN ATTENDANCE
AT INSTITUTIONS OF HIGHER EDUCATION
SEC. 411. REPEALS AND REDESIGNATIONS.
Part A of title IV (20 U.S.C. 1070 et seq.) is amend-
ed—
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(1) in subpart 2 (20 U.S.C. 1070a–11), by re-
pealing chapters 3 through 8 (20 U.S.C. 1070a–31 et
seq. and 1070a–81 et seq.); and
(2) by repealing subpart 8 (20 U.S.C. 1070f).
SEC. 412. FEDERAL PELL GRANTS.
(a) AMENDMENT TO SUBPART HEADING.—The head-
ing for subpart 1 of part A of title IV (20 U.S.C. 1070a
et seq.) is amended by striking ‘‘Basic Educational
Opportunity Grants’’ and inserting ‘‘Federal Pell
Grants’’.
(b) FEDERAL PELL GRANTS.—Section 401 (20 U.S.C.
1070a) is amended—
(1) in the section heading, by striking ‘‘BASIC
EDUCATIONAL OPPORTUNITY GRANTS’’ and in-
serting ‘‘FEDERAL PELL GRANTS’’;
(2) in subsection (a)(1)—
(A) in the first sentence, by striking ‘‘shall,
during the period beginning July 1, 1972, and
ending September 30, 1998,’’ and inserting ‘‘, for
each fiscal year through fiscal year 2004, shall’’;
and
(B) in the second sentence, by inserting
‘‘until such time as the Secretary determines and
publishes in the Federal Register with an oppor-
tunity for comment, an alternative payment sys-
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tem that provides payments to institutions in an
accurate and timely manner,’’ after ‘‘pay eligible
students’’;
(3) in subsection (b)—
(A) in paragraph (2)(A), by striking clauses
(i) through (v), and inserting the following:
‘‘(i) $5,000 for academic year 1999–
2000;
‘‘(ii) $5,200 for academic year 2000–
2001;
‘‘(iii) $5,400 for academic year 2001–
2002;
‘‘(iv) $5,600 for academic year 2002–
2003; and
‘‘(v) $5,800 for academic year 2003–
2004.’’;
(B) by amending paragraph (3) to read as
follows:
‘‘(3) For any academic year for which an appro-
priation Act provides a maximum basic grant in an
amount in excess of $2,400, the amount of a student’s
basic grant shall equal $2,400 plus—
‘‘(A) one-half of the amount by which such
maximum basic grant exceeds $2,400; plus
‘‘(B) the lesser of—
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‘‘(i) the remaining one-half of such ex-
cess; or
‘‘(ii) the sum of the student’s tuition,
fees, and if the student has dependent care
expenses (as described in section 472(8) or
disability-related expenses (as described in
section 472(9)), an allowance determined by
the institution for such expenses.’’;
(C) in paragraph (5), by striking ‘‘$400, ex-
cept’’ and all that follows through ‘‘grant of
$400’’ and insert ‘‘$200’’; and
(D) in paragraph (6)—
(i) by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively;
(ii) by inserting ‘‘(A)’’ after the para-
graph designation; and
(iii) by adding at the end the follow-
ing:
‘‘(B) The Secretary shall promulgate regula-
tions implementing this paragraph.’’; and
(4) in subsection (c)—
(A) by amending paragraph (1) to read as
follows: ‘‘(1)(A) Except as provided in subpara-
graph (B), the period during which a student
may receive a basic grant shall be the period, re-
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quired for the completion of the first undergradu-
ate baccalaureate course of study pursued by the
student at the institution at which the student is
in attendance, that does not exceed 150 percent
of the period normally required by a full-time
student (or the equivalent period, in the case of
a part-time student) to complete the course of
study at the institution, as determined by the in-
stitution.
‘‘(B)(i) A student may receive basic grants
under this subpart for a period that exceeds the
period described in subparagraph (A) or clause
(ii) to the extent the institution in which the stu-
dent is enrolled determines necessary to accom-
modate the rights of students with disabilities
under section 504 of the Rehabilitation Act of
1973.
‘‘(ii) Notwithstanding subsection (a)(1), the
Secretary may allow, on a case-by-case basis, a
student to receive a basic grant if the student—
‘‘(I) is carrying at least 1⁄2 the normal
full-time work load for the course of study
the student is pursuing, as determined by
the institution of higher education; and
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‘‘(II) is enrolled or accepted for enroll-
ment in a postbaccalaureate program that
does not lead to a graduate degree, and in
courses required by a State in order for the
student to receive a professional certifi-
cation or licensing credential that is re-
quired for employment as a teacher in an
elementary school or secondary school in
that State,
except that this subparagraph shall not apply to
a student who is enrolled in an institution of
higher education that offers a baccalaureate de-
gree in education.’’; and
(B) in paragraph (2)—
(i) by striking ‘‘Nothing’’ and insert-
ing ‘‘(A) Except as provided in subpara-
graph (B), nothing’’;
(ii) by striking ‘‘or, in the case’’ and
all that follows through ‘‘or skills’’; and
(iii) by adding at the end the follow-
ing:
‘‘(B)(i) A student may receive a basic grant
to attend English language instruction that is a
separate course of instruction only if—
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‘‘(I) not less than a minimum percent-
age of the students enrolled in the course
complete the course;
‘‘(II) students enrolled in the course
are required to take an independently ad-
ministered standardized test of English lan-
guage proficiency upon completion of the
course; and
‘‘(III) not less than a minimum per-
centage of the students enrolled in the course
achieve a passing score on that test.
‘‘(ii) The Secretary shall promulgate regula-
tions that specify the minimum percentage of
students who complete the course of instruction,
1 or more standardized tests of English pro-
ficiency, the minimum percentage of students
who must achieve a passing score on the tests,
and such other requirements as the Secretary de-
termines are necessary to implement clause (i).’’.
SEC. 413. TRIO PROGRAMS.
(a) PROGRAM AUTHORITY.—Section 402A (20 U.S.C.
1070a–11) is amended—
(1) in subsection (b)(3)—
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(A) in subparagraph (A), by striking
‘‘$170,000 for fiscal year 1993’’ and inserting
‘‘$190,000 for each fiscal year’’;
(B) in subparagraph (B), by striking
‘‘$180,000 for fiscal year 1994’’ and inserting
‘‘$200,000 for each fiscal year’’; and
(C) in subparagraph (C), by striking
‘‘$190,000 for fiscal year 1995’’ and inserting
‘‘$210,000 for each fiscal year’’;
(2) in subsection (c)(6), by amending the last
sentence to read as follows: ‘‘The Secretary shall per-
mit a Director of a program assisted under this chap-
ter to also administer 1 or more additional programs
for disadvantaged students operated by the sponsoring
entity regardless of the funding source of such addi-
tional program.’’;
(3) in subsection (f), by striking ‘‘$650,000,000
for fiscal year 1993’’ and inserting ‘‘$700,000,000 for
fiscal year 1999’’; and
(4) in subsection (g), by adding at the end the
following:
‘‘(4) WAIVER.—The Secretary may waive the
service requirements in subparagraph (A) or (B) of
paragraph (3) if the Secretary determines the appli-
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cation of the service requirements to a veteran will de-
feat the purpose of a program under this chapter.’’.
(b) TALENT SEARCH.—(1) AMENDMENT TO SECTION
402B(b)(5).—Section 402B(b)(5) (20 U.S.C. 1070a–12(b)(5))
is amended by inserting ‘‘, or activities designed to ac-
quaint individuals from disadvantaged backgrounds with
careers in which the individuals are particularly underrep-
resented’’ before the semicolon.
(2) AMENDMENT
TO
SECTION
402B(b)(9).—Section
402B(b)(9) (20 U.S.C. 1070a–12(b)(9)) is amended by in-
serting ‘‘or counselors’’ after ‘‘teachers’’.
(c) UPWARD
BOUND.—Section 402C (20 U.S.C.
1070a–13) is amended—
(1) in subsection (b)—
(A) in paragraph (9)—
(i) by inserting ‘‘or counselors’’ after
‘‘teachers’’; and
(ii) by striking ‘‘and’’ after the semi-
colon;
(B) by redesignating paragraph (10) as
paragraph (11);
(C) by inserting after paragraph (9) the fol-
lowing:
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‘‘(10) work-study positions where youth partici-
pating in the project are exposed to careers requiring
a postsecondary degree; and’’; and
(D) in paragraph (11) (as redesignated by
subparagraph (B)), by striking ‘‘(9)’’ and insert-
ing ‘‘(10)’’; and
(2) in subsection (e), by striking ‘‘and not in ex-
cess of $40 per month during the remaining period of
the year.’’ and inserting ‘‘except that youth partici-
pating in a work-study position under subsection
(b)(10) may be paid a stipend of $300 per month
during June, July, and August. Youths participating
in a project proposed to be carried out under any ap-
plication may be paid stipends not in excess of $40
per month during the remaining period of the year.’’.
(d) STUDENT SUPPORT SERVICES.—Paragraph (6) of
section 402D(c) (20 U.S.C. 1070a–14(c)(6)) is amended to
read as follows:
‘‘(6) consider, in addition to such other criteria
as the Secretary may prescribe, the institution’s ef-
fort, and where applicable past history, in—
‘‘(A) providing sufficient financial assist-
ance to meet the full financial need of each stu-
dent at the institution; and
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‘‘(B) maintaining the loan burden of each
such student at a manageable level.’’.
(e) 
STAFF
DEVELOPMENT
ACTIVITIES.—Section
402G(a) (20 U.S.C. 1070a–17(a)) is amended by inserting
‘‘participating in,’’ after ‘‘leadership personnel employed
in,’’.
(f) EVALUATION AND DISSEMINATION.—Section 402H
(20 U.S.C. 1070a–18) is amended to read as follows:
‘‘SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IM-
PROVEMENT AND DISSEMINATION PARTNER-
SHIP PROJECTS.
‘‘(a) EVALUATIONS.—
‘‘(1) IN GENERAL.—For the purpose of improv-
ing the effectiveness of the programs and projects as-
sisted under this subpart, the Secretary may make
grants to or enter into contracts with institutions of
higher education and other public and private insti-
tutions and organizations to evaluate the effectiveness
of the programs and projects assisted under this sub-
part.
‘‘(2) PRACTICES.—The evaluations described in
paragraph (1) shall identify institutional, commu-
nity, and program or project practices that are par-
ticularly effective in enhancing the access of low-in-
come individuals and first-generation college students
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to postsecondary education, the preparation of the in-
dividuals and students for postsecondary education,
and the success of the individuals and students in
postsecondary education.
‘‘(b) GRANTS.—The Secretary may award grants to
institutions of higher education or other private and public
institutions and organizations, that are carrying out a pro-
gram or project assisted under this subpart prior to the date
of enactment of the Higher Education Amendments of 1998,
to enable the institutions and organizations to expand and
leverage the success of such programs or projects by working
in partnership with other institutions, community-based
organizations, or combinations of such institutions and or-
ganizations, that are not receiving assistance under this
subpart and are serving low-income students and first gen-
eration college students, in order to—
‘‘(1) disseminate and replicate best practices of
programs or projects assisted under this subpart; and
‘‘(2) provide technical assistance regarding pro-
grams and projects assisted under this subpart.
‘‘(c) RESULTS.—In order to improve overall program
or project effectiveness, the results of evaluations and grants
described in this section shall be disseminated by the Sec-
retary to similar programs or projects assisted under this
subpart, as well as other individuals concerned with post-
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secondary access for and retention of low-income individ-
uals and first-generation college students.’’.
SEC. 414. CONNECTIONS PROGRAM.
Chapter 2 of subpart 2 of part A of title IV (20 U.S.C.
1070a–21 et seq.) is amended to read as follows:
‘‘CHAPTER 2—CONNECTIONS PROGRAM
‘‘SEC. 404A. EARLY INTERVENTION AND COLLEGE AWARE-
NESS PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized, in
accordance with the requirements of this chapter, to estab-
lish a program that—
‘‘(1) encourages eligible entities to provide or
maintain a guarantee to eligible low-income students
who obtain a secondary school diploma (or its recog-
nized equivalent), of the financial assistance necessary
to permit the students to attend an institution of
higher education; and
‘‘(2) supports eligible entities in providing—
‘‘(A) additional counseling, mentoring, aca-
demic support, outreach, and supportive services
to elementary, middle, and secondary school stu-
dents who are at risk of dropping out of school;
and
‘‘(B) information to students and their par-
ents about the advantages of obtaining a post-
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secondary education and their college financing
options.
‘‘(b) AWARDS.—
‘‘(1) IN GENERAL.—The Secretary may award
grants to eligible entities to carry out the program
authorized under subsection (a).
‘‘(2) PRIORITY.—In making the awards de-
scribed in paragraph (1), the Secretary shall—
‘‘(A) give priority to eligible entities that—
‘‘(i) carried out, prior to the date of
enactment of the Higher Education Amend-
ments of 1998, successful educational oppor-
tunity programs; and
‘‘(ii) have a prior, demonstrated com-
mitment to early intervention leading to
college access through collaboration and rep-
lication of successful strategies; and
‘‘(B) ensure that students served under this
chapter prior to the date of enactment of the
Higher Education Amendments of 1998 continue
to receive service through the completion of sec-
ondary school.
‘‘(c) DEFINITIONS.—For the purposes of this chapter,
the term ‘eligible entity’ means—
‘‘(1) a State; or
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‘‘(2) a partnership consisting of—
‘‘(A) 1 or more local educational agencies
acting on behalf of—
‘‘(i) 1 or more public schools; and
‘‘(ii) the public secondary schools that
students from the schools described in clause
(i) would normally attend;
‘‘(B) 1 or more degree granting institutions
of higher education; and
‘‘(C) at least 2 community organizations or
entities, such as businesses, professional associa-
tions, community-based organizations, philan-
thropic organizations, State agencies, institu-
tions or agencies sponsoring programs authorized
under subpart 4, or other public or private agen-
cies or organizations.
‘‘(d) COORDINATION.—Each eligible entity shall ensure
that the activities assisted under this chapter are, to the
extent practicable, coordinated with, and complement and
enhance—
‘‘(1) services under this chapter provided by
other eligible entities serving the same school district
or State; and
‘‘(2) related services under other Federal or non-
Federal programs.
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‘‘SEC. 404B. ELIGIBILITY ENTITY PLANS.
‘‘(a) PLAN REQUIRED FOR ELIGIBILITY.—
‘‘(1) IN GENERAL.—In order for an eligible en-
tity to qualify for a grant under this chapter, the eli-
gible entity shall submit to the Secretary a plan for
carrying out the program under this chapter. Such
plan shall provide for the conduct of both a scholar-
ship component in accordance with section 404D and
an early intervention component in accordance with
section 404C.
‘‘(2) CONTENTS.—Each plan submitted pursuant
to paragraph (1) shall be in such form, contain or be
accompanied by such information or assurances, and
be submitted at such time as the Secretary may re-
quire by regulation. Each such plan shall—
‘‘(A) describe the activities for which assist-
ance under this chapter is sought; and
‘‘(B) provide such additional assurances as
the Secretary determines necessary to ensure
compliance with the requirements of this chapter.
‘‘(b) MATCHING REQUIREMENT.—
‘‘(1) IN GENERAL.—The Secretary shall not ap-
prove a plan submitted under subsection (a) unless
such plan—
‘‘(A) provides that the eligible entity will
provide, from State, local, institutional, or pri-
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vate funds, not less than 1⁄2 the cost of the pro-
gram, which matching funds may be provided in
cash or in kind;
‘‘(B) specifies the methods by which such
share of the costs will be paid; and
‘‘(C) includes provisions designed to ensure
that funds provided under this chapter shall sup-
plement and not supplant funds expended for ex-
isting programs.
‘‘(2) SPECIAL RULE.—The Secretary may change
the share of the costs required to be provided under
paragraph (1)(A) for eligible entities defined in sec-
tion 402A(c)(2).
‘‘(c) METHODS FOR COMPLYING WITH MATCHING RE-
QUIREMENT.—An eligible entity may count toward the
share of the costs required by subsection (b)(1)(A)—
‘‘(1) the amount of the grants paid to students
from State, local, institutional, or private funds
under this chapter;
‘‘(2) the amount of tuition, fees, room or board
waived or reduced for recipients of grants under this
chapter; and
‘‘(3) the amount expended on documented, tar-
geted, long-term mentoring and counseling provided
by volunteers or paid staff of nonschool organizations,
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including businesses, religious organizations, commu-
nity groups, postsecondary educational institutions,
nonprofit and philanthropic organizations, and other
organizations.
‘‘(d) COHORT APPROACH.—
‘‘(1) IN GENERAL.—The Secretary may require
that eligible entities—
‘‘(A) provide services under this chapter to
at least 1 grade level of students, beginning not
later than 7th grade, in a participating public
school that has a 7th grade and in which at least
50 percent of the students enrolled are eligible for
free or reduced-price lunch (or, if an eligible en-
tity determines that it would promote the effec-
tiveness of a project, an entire grade level of stu-
dents, beginning not later than the 7th grade,
who reside in public housing as defined in sec-
tion 3(b)(1) of the United States Housing Act of
1937); and
‘‘(B) ensure that the services are provided
through the 12th grade to students in the partici-
pating grade level.
‘‘(2) COORDINATION
REQUIREMENT.—In order
for the Secretary to require the cohort approach de-
scribed in paragraph (1), the Secretary shall, where
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applicable, ensure that the cohort approach is done in
coordination and collaboration with existing early
intervention programs and does not duplicate the
services already provided to a school or community.
‘‘SEC. 404C. EARLY INTERVENTION.
‘‘(a) SERVICES.—
‘‘(1) In order to receive a grant under this chap-
ter, an eligible entity shall demonstrate to the satis-
faction of the Secretary, in the plan submitted under
section 404B, that the eligible entity will provide
comprehensive mentoring, counseling, outreach, and
supportive services to students participating in pro-
grams under this chapter who are enrolled in any of
the grades preschool through grade 12. Such counsel-
ing shall include financial aid counseling that pro-
vides—
‘‘(A) information regarding the opportuni-
ties for financial assistance under this title; and
‘‘(B) activities or information regarding—
‘‘(i) fostering and improving parent
involvement in promoting postsecondary in-
formation regarding the advantages of a
college education, academic admission re-
quirements, and the need to take college
preparation courses;
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‘‘(ii) admissions and achievement tests;
and
‘‘(iii) application procedures.
‘‘(2) METHODS.—The eligible entity shall
demonstrate in such plan, pursuant to regula-
tions of the Secretary, the methods by which the
eligible entity will target services on priority
students.
‘‘(b) USES OF FUNDS.—
‘‘(1) IN GENERAL.—The Secretary shall, by regu-
lation, establish criteria for determining whether com-
prehensive mentoring, counseling, outreach, and sup-
portive services programs may be used to meet the re-
quirements of subsection (a).
‘‘(2) ALLOWABLE PROVIDERS.—For those eligible
entities defined in section 404A(c)(1), the activities
required by subsection (a) may be provided by service
providers such as community-based organizations,
schools, institutions of higher education, public and
private agencies, nonprofit and philanthropic organi-
zations, businesses, institutions and agencies sponsor-
ing programs authorized under subpart 4 of this part,
and other organizations the State deems appropriate.
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‘‘(3) PERMISSIBLE ACTIVITIES.—Examples of ac-
tivities that meet the requirements of subsection (a)
include the following:
‘‘(A) Providing eligible students in pre-
school through grade 12 with a continuing sys-
tem of mentoring and advising that—
‘‘(i) is coordinated with the Federal
and State community service initiatives;
and
‘‘(ii) may include such support services
as after school and summer tutoring, assist-
ance in obtaining summer jobs, career men-
toring, and academic counseling.
‘‘(B) Requiring each student to enter into
an agreement under which the student agrees to
achieve certain academic milestones, such as
completing a prescribed set of courses and main-
taining satisfactory academic progress described
in section 484(c), in exchange for receiving tui-
tion assistance for a period of time to be estab-
lished by each State.
‘‘(C) Activities designed to ensure secondary
school completion and college enrollment of at-
risk children, including identification of at-risk
children, after school and summer tutoring, as-
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sistance in obtaining summer jobs, academic
counseling, volunteer and parent involvement,
providing former or current scholarship recipi-
ents as mentor or peer counselors, skills assess-
ment, providing access to rigorous core courses
that reflect challenging academic standards, per-
sonal counseling, family counseling and home
visits, staff development, and programs and ac-
tivities described in this subparagraph that are
specially designed for students of limited English
proficiency.
‘‘(D) Summer programs for individuals
planning to attend an institution of higher edu-
cation in the next academic year that—
‘‘(i) are carried out at an institution
of higher education that also has programs
of academic year supportive services for dis-
advantaged students through projects au-
thorized under section 402D or through
comparable projects funded by the State or
other sources;
‘‘(ii) provide for the participation of
the individuals who are eligible for assist-
ance under section 402D or who are eligible
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for comparable programs funded by the
State;
‘‘(iii)(I) provide summer instruction
in remedial, developmental or supportive
courses;
‘‘(II) provide such summer services as
counseling, tutoring, or orientation; and
‘‘(III) provide grant aid to the individ-
uals to cover the individuals’ summer costs
for books, supplies, living costs, and per-
sonal expenses; and
‘‘(iv) provide the individuals with fi-
nancial aid during each academic year the
individuals are enrolled at the participat-
ing institution after the summer program.
‘‘(E) Requiring eligible students to meet
other standards or requirements as the State de-
termines necessary to meet the purposes of this
section.
‘‘(c) PRIORITY
STUDENTS.—In administering the
early intervention component, the eligible entity shall treat
as priority students any student in preschool through grade
12 who is eligible—
‘‘(1) to be counted under section 1005(c) of the
Elementary and Secondary Education Act of 1965;
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‘‘(2) for free or reduced price meals pursuant to
the National School Lunch Act; or
‘‘(3) for assistance pursuant to part A of title IV
of the Social Security Act.
‘‘SEC. 404D. SCHOLARSHIP COMPONENT.
‘‘(a) IN GENERAL.—
‘‘(1) STATES.—In order to receive a grant under
this chapter, an eligible entity described in section
404A(c)(1) shall establish or maintain a financial as-
sistance program that awards grants to students in
accordance with the requirements of this section. The
Secretary shall encourage the eligible entity to ensure
that the tuition assistance provided pursuant to this
section is available to an eligible student for use at
any institution of higher education.
‘‘(2) PARTNERSHIPS.—An eligible entity de-
scribed in section 404A(c)(2) may award scholarships
to eligible students.
‘‘(b) GRANT AMOUNTS.—The maximum amount of the
grant that an eligible student shall be eligible to receive
under this section shall be established by the State. The
minimum amount of the grant for each fiscal year shall
not be less than the lesser of—
‘‘(1) 75 percent of the average cost of attendance
for an in-State student, in a 4-year program of in-
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struction, at public institutions of higher education in
such State, as determined in accordance with regula-
tions prescribed by the Secretary; or
‘‘(2) the maximum Federal Pell Grant funded
under section 401 for such fiscal year.
‘‘(c) RELATION TO OTHER ASSISTANCE.—Tuition as-
sistance provided under this chapter shall not be considered
for the purpose of awarding Federal grant assistance under
this title, except that in no case shall the total amount of
student financial assistance awarded to a student under
this title exceed such student’s total cost of attendance.
‘‘(d) ELIGIBLE STUDENTS.—A student eligible for as-
sistance under this section is a student who—
‘‘(1) is less than 22 years old at time of first
grant award under this section;
‘‘(2) receives a secondary school diploma or its
recognized equivalent on or after January 1, 1993;
‘‘(3) is enrolled or accepted for enrollment in a
program of undergraduate instruction at an institu-
tion of higher education that is located within the
State’s boundaries, except that, at the State’s option,
an eligible entity may offer grant program portability
for recipients who attend institutions of higher edu-
cation outside such State; and
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‘‘(4) who participated in the early intervention
component required under section 404C.
‘‘(e) PRIORITY.—The Secretary shall ensure that each
eligible entity places a priority on awarding scholarships
to students who will receive a Federal Pell Grant for the
academic year for which the scholarship is awarded under
this section.
‘‘(f) SPECIAL RULE.—An eligible entity may consider
students who have successfully participated in programs
funded under chapter 1 of this subpart to have met the re-
quirements of subsection (d)(4).
‘‘SEC. 404E. 21ST CENTURY SCHOLAR CERTIFICATES.
‘‘(a) AUTHORITY.—The Secretary, using funds appro-
priated under section 404G, not to exceed $200,000 annu-
ally—
‘‘(1) shall ensure that certificates, to be known as
21st Century Scholar Certificates, are provided to all
students participating in programs under this chap-
ter; and
‘‘(2) may, as practicable, ensure that such cer-
tificates are provided to all students in grades 6
through 12 who attend schools at which at least 50
percent of the students enrolled are eligible for a free
or reduced price lunch.
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‘‘(b) INFORMATION
REQUIRED.—A 21st Century
Scholar Certificate shall be personalized for each student
and indicate the amount of Federal financial aid for college
which a student may be eligible to receive.
‘‘SEC. 404F. EVALUATION AND REPORT.
‘‘(a) EVALUATION.—Each eligible entity receiving a
grant under this chapter shall biennially evaluate the early
intervention program assisted under this chapter in accord-
ance with the standards described in subsection (b) and
shall submit to the Secretary a copy of such evaluation. The
evaluation shall permit service providers to track eligible
student progress during the period such students are par-
ticipating in the program assisted under this section and
shall be consistent with the standards developed by the Sec-
retary pursuant to subsection (b).
‘‘(b) EVALUATION STANDARDS.—The Secretary shall
prescribe standards for the evaluation described in sub-
section (a). Such standards shall—
‘‘(1) provide for input from eligible entities and
service providers; and
‘‘(2) ensure that data protocols and procedures
are consistent and uniform.
‘‘(c) FEDERAL EVALUATION.—In order to evaluate and
improve the impact of the program assisted under this
chapter, the Secretary shall, with funds appropriated under
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section 404G, make grants to, and enter into contracts and
cooperative agreements with public and private institutions
and organizations, to evaluate the effectiveness of the pro-
gram and, as appropriate, disseminate the results of the
evaluation.
‘‘(d) REPORT.—The Secretary shall biennially report
to Congress on the activities assisted under this chapter and
the evaluations conducted pursuant to this section.
‘‘SEC. 404G. APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this chapter $200,000,000 for fiscal year 1999 and such
sums as may be necessary for each of the 4 succeeding fiscal
years.’’.
SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPOR-
TUNITY GRANTS.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
413A(b) (20 U.S.C. 1070b) is amended by striking
‘‘$675,000,000 for fiscal year 1993’’ and inserting
‘‘$700,000,000 for fiscal year 1999’’.
(b) USE OF FUNDS FOR LESS-THAN-FULL-TIME STU-
DENTS.—Subsection (d) of section 413C (20 U.S.C. 1070b–
2) is amended to read as follows:
‘‘(d) USE
OF FUNDS
FOR LESS-THAN-FULL-TIME
STUDENTS.—If the institution’s allocation under this sub-
part is directly or indirectly based in part on the financial
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need demonstrated by students who are independent stu-
dents or attending the institution on less than a full-time
basis, a reasonable proportion of the allocation shall be
made available to such students.’’.
(c) CARRYOVER, CARRYBACK, AND REALLOCATION.—
Subpart 3 of part A of title IV (20 U.S.C. 1070b et seq.)
is amended by adding at the end the following:
‘‘SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCATION.
‘‘(a) CARRYOVER AUTHORITY.—Of the sums made
available to an eligible institution under this subpart for
a fiscal year, not more than 10 percent may, at the discre-
tion of the institution, remain available for expenditure
during the succeeding fiscal year to carry out the program
under this subpart.
‘‘(b) CARRYBACK AUTHORITY.—Of the sums made
available to an eligible institution under this subpart for
a fiscal year, not more than 10 percent may, at the discre-
tion of the institution, be used by the institution for expend-
iture for the fiscal year preceding the fiscal year for which
the sums were appropriated.
‘‘(c) REALLOCATION.—Any of the sums made available
to an eligible institution under this subpart for a fiscal year
that are not needed by the institution to award supple-
mental grants during that fiscal year, that the institution
does not wish to use during the succeeding fiscal year as
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authorized in subsection (a), and that the institution does
not wish to use for the preceding fiscal year as authorized
in subsection (b), shall be made available to the Secretary
for reallocation under section 413D(e) until the end of the
second fiscal year after the fiscal year for which such sums
were appropriated.’’.
SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PART-
NERSHIP PROGRAM.
(a) AMENDMENT TO SUBPART HEADING.—
(1) IN GENERAL.—The heading for subpart 4 of
part A of title IV (20 U.S.C. 1070c et seq.) is amend-
ed to read as follows:
‘‘SUBPART 4—LEVERAGING EDUCATIONAL ASSISTANCE
PARTNERSHIP PROGRAM’’.
(2) CONFORMING AMENDMENTS.—Subpart 4 of
part A of title IV (20 U.S.C. 1070c et seq.) is amend-
ed—
(A) in section 415B(b) (20 U.S.C. 1070c–
1(b)), by striking ‘‘State student grant incen-
tive’’ and inserting ‘‘leveraging educational as-
sistance partnership’’; and
(B) in the heading for section 415C (20
U.S.C. 1070c–2), by striking ‘‘STATE STUDENT
INCENTIVE
GRANT’’ 
and 
inserting
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‘‘LEVERAGING
EDUCATIONAL
ASSISTANCE
PARTNERSHIP’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
415A(b) (20 U.S.C. 1070c(b)) is amended—
(1) in paragraph (1), by striking ‘‘1993’’ and in-
serting ‘‘1999’’;
(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by inserting after paragraph (1) the follow-
ing:
‘‘(2) RESERVATION.—For any fiscal year for
which the amount appropriated under paragraph (1)
exceeds $35,000,000, the excess shall be available to
carry out section 415E.’’.
(c) SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE
PARTNERSHIP PROGRAM.—Subpart 4 of part A of title IV
(20 U.S.C. 1070c et seq.) is amended—
(1) by redesignating section 415E as 415F;
(2) by inserting after section 415D the following:
‘‘SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSIST-
ANCE PARTNERSHIP PROGRAM.
‘‘(a) IN GENERAL.—From amounts reserved under sec-
tion 415A(b)(2) for each fiscal year, the Secretary shall—
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‘‘(1) make allotments among States in the same
manner as the Secretary makes allotments among
States under section 415B; and
‘‘(2) award grants to States, from allotments
under paragraph (1), to enable the States to pay the
Federal share of the cost of the authorized activities
described in subsection (c).
‘‘(b) APPLICABILITY RULE.—The provisions of this
subpart which are not inconsistent with this section shall
apply to the program authorized by this section.
‘‘(c) AUTHORIZED ACTIVITIES.—Each State receiving
a grant under this section may use the grant funds for—
‘‘(1) increasing the dollar amount of grants
awarded under section 415B to eligible students who
demonstrate financial need;
‘‘(2) carrying out transition programs from sec-
ondary school to postsecondary education for eligible
students who demonstrate financial need;
‘‘(3) making funds available for community serv-
ice work-study activities for eligible students who
demonstrate financial need;
‘‘(4) creating a postsecondary scholarship pro-
gram for eligible students who demonstrate financial
need and wish to enter teaching;
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‘‘(5) creating a scholarship program for eligible
students who demonstrate financial need and wish to
enter a program of study leading to a degree in math-
ematics, computer science, or engineering;
‘‘(6) carrying out early intervention programs,
mentoring programs, and career education programs
for eligible students who demonstrate financial need;
and
‘‘(7) awarding merit or academic scholarships to
eligible students who demonstrate financial need.
‘‘(d) MAINTENANCE
OF EFFORT REQUIREMENT.—
Each State receiving a grant under this section for a fiscal
year shall provide the Secretary an assurance that the ag-
gregate amount expended per student or the aggregate ex-
penditures by the State, from funds derived from non-Fed-
eral sources, for the authorized activities described in sub-
section (c) for the preceding fiscal year were not less than
the amount expended per student or the aggregate expendi-
tures by the State for the activities for the second preceding
fiscal year.
‘‘(e) FEDERAL SHARE.—The Federal share of the cost
of the authorized activities described in subsection (c) for
any fiscal year shall be 331⁄3 percent.’’; and
(3) by adding at the end the following:
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‘‘SEC. 
415G. 
FEDERAL-STATE 
RELATIONSHIPS; 
STATE
AGREEMENTS.
‘‘(a) IN GENERAL.—Any State that desires to receive
assistance under this subpart shall enter into an agreement
with the Secretary pursuant to subsection (b) setting forth
the terms and conditions for the relationship between the
Federal Government and that State for the purposes set
forth under this subpart.
‘‘(b) CONTENTS.—
‘‘(1) IN GENERAL.—Such agreement shall consist
of assurances by the State, including a description of
the means to be used by the State to fulfill the assur-
ances, that—
‘‘(A) the State will provide for such methods
of administration as are necessary for the proper
and efficient administration of the program
under this subpart in keeping with the purposes
set forth under this subpart;
‘‘(B) the State will provide for such fiscal
control and fund accounting procedures as may
be necessary to ensure proper disbursement of,
and accounting for, Federal funds paid to the
State under this subpart;
‘‘(C) the State will follow policies and prac-
tices of administration that will ensure that non-
Federal funds will not be supplanted by Federal
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funds, and that equitable and appropriate cri-
teria will be used in evaluation of applications
or proposals for grants under this subpart; and
‘‘(D) the State has a comprehensive plan-
ning or policy formulation process that—
‘‘(i) considers the relation between
State administration of the program under
this subpart, and administration of similar
State programs or processes;
‘‘(ii) encourages State policies designed
to consider effects on declining enrollments
on all sectors of postsecondary education in
the State;
‘‘(iii) considers the postsecondary edu-
cation needs of unserved and underserved
individuals within the State, including in-
dividuals beyond the traditional college age;
‘‘(iv) considers the resources of institu-
tions, organizations, or agencies (both pub-
lic and private) within the State capable of
providing postsecondary educational oppor-
tunities in the State; and
‘‘(v) provides for direct, equitable, and
active participation in the comprehensive
planning or policy formulation process or
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processes of representatives of institutions of
higher education (including community col-
leges, proprietary institutions, and inde-
pendent colleges and universities), students,
other providers of postsecondary education
services, and the general public in the State.
‘‘(2) SPECIAL RULE.—Participation under para-
graph (1)(D)(v) shall, consistent with State law, be
achieved through membership on State planning com-
missions, State advisory councils, or other State enti-
ties established by the State to conduct federally as-
sisted comprehensive planning or policy formulation.
‘‘(c) SPECIAL RULE.—The information and assurances
provided by a State in accordance with subparagraphs (A),
(B), and (C) of subsection (b)(1), and regulations issued
by the Secretary related directly to such assurances, shall
be satisfactory for the purposes of, and shall be considered
in lieu of, any comparable requirements for information
and assurances in any program under this subpart.
‘‘(d) AGREEMENT DURATION; COMPLIANCE.—
‘‘(1) AGREEMENT DURATION.—An agreement of
a State shall remain in effect subject to modification
as changes in information or circumstances require.
‘‘(2) COMPLIANCE.—Whenever the Secretary,
after reasonable notice and opportunity for a hearing
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has been given to the State, finds that there is a fail-
ure to comply substantially with the assurances re-
quired in subparagraph (A), (B), or (C) of subsection
(b)(1), the Secretary shall notify the State that the
State is no longer eligible to participate in the pro-
gram under this subpart until the Secretary is satis-
fied that there is no longer any such failure to com-
ply.
‘‘(e) SPECIAL RULES.—
‘‘(1) ENTITIES ENTERING INTO AGREEMENTS.—
For the purpose of this section, the selection of the
State entity or entities authorized to act on behalf of
the State for the purpose of entering into an agree-
ment with the Secretary shall be in accordance with
the State law of each individual State with respect to
the authority to make legal agreements between the
State and the Federal Government.
‘‘(2) CONSTRUCTION.—
‘‘(A) STATE STRUCTURE.—Nothing in this
section shall be construed to authorize the Sec-
retary to require any State to adopt, as a condi-
tion for entering into an agreement, or for par-
ticipation in a program under this subpart, a
specific 
State 
organizational 
structure 
for
achieving participation in the planning, or ad-
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ministration of programs, or for statewide plan-
ning, coordination, governing, regulating, or ad-
ministering of postsecondary education agencies,
institutions, or programs in the State.
‘‘(B) STATE AUTHORITY.—Nothing in this
section shall be construed as a limitation on the
authority of any State to adopt a State organi-
zational structure for postsecondary education
agencies, institutions, or programs that is appro-
priate to the needs, traditions, and cir-
cumstances of that State, or as a limitation on
the authority of a State entering into an agree-
ment pursuant to this section to modify the
State organizational structure at any time subse-
quent to entering into such an agreement.’’.
(d) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) PURPOSE.—Subsection (a) of section 415A
(20 U.S.C. 1070c(a)) is amended to read as follows:
‘‘(a) PURPOSE OF SUBPART.—It is the purpose of this
subpart to make incentive grants available to States to as-
sist States in—
‘‘(1) providing grants to—
‘‘(A) eligible students attending institutions
of higher education or participating in programs
of study abroad that are approved for credit by
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institutions of higher education at which such
students are enrolled; and
‘‘(B) eligible students for campus-based
community service work-study; and
‘‘(2) carrying out the activities described in sec-
tion 415F.’’.
(2) ALLOTMENT.—Section 415B(a)(1) (20 U.S.C.
1070c–1(a)(1)) is amended by inserting ‘‘and not re-
served under section 415A(b)(2)’’ after ‘‘415A(b)(1)’’.
SEC. 417. HEP AND CAMP.
Section 418A(g) (20 U.S.C. 1070d–2(g)) is amended—
(1) in paragraph (1), by striking ‘‘$15,000,000
for fiscal year 1993’’ and inserting ‘‘$25,000,000 for
fiscal year 1999’’; and
(2) in paragraph (2), by striking ‘‘$5,000,000 for
fiscal year 1993’’ and inserting ‘‘$10,000,000 for fis-
cal year 1999’’.
SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PRO-
GRAM.
Section 419K (20 U.S.C. 1070d–41) is amended by
striking ‘‘$10,000,000 for fiscal year 1993’’ and inserting
‘‘$45,000,000 for fiscal year 1999’’.
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SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN
SCHOOL.
Part A of title IV (20 U.S.C. 1070 et seq.) is amended
by inserting after subpart 6 (20 U.S.C. 1070d–31 et seq.)
the following:
‘‘Subpart 7—Child Care Access Means Parents in
School
‘‘SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN
SCHOOL.
‘‘(a) PURPOSE.—The purpose of this section is to sup-
port the participation of low-income parents in postsecond-
ary education through the provision of campus-based child
care services.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) AUTHORITY.—The Secretary may award
grants to institutions of higher education to assist the
institutions in providing campus-based child care
services primarily to low-income students.
‘‘(2) AMOUNT OF GRANTS.—
‘‘(A) IN GENERAL.—The amount of a grant
awarded to an institution of higher education
under this section for a fiscal year shall not ex-
ceed 1 percent of the total amount of all Federal
Pell Grant funds awarded to students enrolled at
the institution of higher education for the preced-
ing fiscal year.
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‘‘(B) MINIMUM.—A grant under this section
shall be awarded in an amount that is not less
than $10,000.
‘‘(3) DURATION; RENEWAL; AND PAYMENTS.—
‘‘(A) 
DURATION.—The 
Secretary 
shall
award a grant under this section for a period of
3 years.
‘‘(B) RENEWAL.—A grant under this sec-
tion may be renewed for a period of 3 years.
‘‘(C) PAYMENTS.—Subject to subsection
(e)(2), the Secretary shall make annual grant
payments under this section.
‘‘(4) ELIGIBLE INSTITUTIONS.—An institution of
higher education shall be eligible to receive a grant
under this section for a fiscal year if the total amount
of all Federal Pell Grant funds awarded to students
enrolled at the institution of higher education for the
preceding fiscal year equals or exceeds $350,000.
‘‘(5) USE OF FUNDS.—Grant funds under this
section shall be used by an institution of higher edu-
cation to support or establish a campus-based child
care program primarily serving the needs of low-in-
come students enrolled at the institution of higher
education. Grant funds under this section may be
used to provide before and after school services to the
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extent necessary to enable low-income students en-
rolled at the institution of higher education to pursue
postsecondary education.
‘‘(6) CONSTRUCTION.—Nothing in this section
shall be construed to prohibit an institution of higher
education that receives grant funds under this section
from serving the child care needs of the community
served by the institution.
‘‘(7) DEFINITION
OF
LOW-INCOME
STUDENT.—
For the purpose of this section, the term ‘‘low-income
student’’ means a student who is eligible to receive a
Federal Pell Grant for the fiscal year for which the
determination is made.
‘‘(c) APPLICATIONS.—An institution of higher edu-
cation desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner,
and accompanied by such information as the Secretary
may require. Each application shall—
‘‘(1) demonstrate that the institution is an eligi-
ble institution described in subsection (b)(4);
‘‘(2) specify the amount of funds requested;
‘‘(3) demonstrate the need of low-income students
at the institution for campus-based child care services
by including in the application—
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‘‘(A) information regarding student demo-
graphics;
‘‘(B) an assessment of child care capacity
on or near campus;
‘‘(C) information regarding the existence of
waiting lists for existing child care;
‘‘(D) 
information 
regarding 
additional
needs created by concentrations of poverty or by
geographic isolation; and
‘‘(E) other relevant data;
‘‘(4) contain a description of the activities to be
assisted, including whether the grant funds will sup-
port an existing child care program or a new child
care program;
‘‘(5) identify the resources, including technical
expertise and financial support, the institution will
draw upon to support the child care program and the
participation of low-income students in the program,
such as accessing social services funding, using stu-
dent activity fees to help pay the costs of child care,
using resources obtained by meeting the needs of par-
ents who are not low-income students, and accessing
foundation, corporate or other institutional support,
and demonstrate that the use of the resources will not
result in increases in student tuition;
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‘‘(6) contain an assurance that the institution
will meet the child care needs of low-income students
through the provision of services, or through a con-
tract for the provision of services;
‘‘(7) describe the extent to which the child care
program will coordinate with the institution’s early
childhood education curriculum, to the extent the cur-
riculum is available, to meet the needs of the students
in the early childhood education program at the insti-
tution, and the needs of the parents and children par-
ticipating in the child care program assisted under
this section;
‘‘(8) in the case of an institution seeking assist-
ance for a new child care program—
‘‘(A) provide a timeline, covering the period
from receipt of the grant through the provision
of the child care services, delineating the specific
steps the institution will take to achieve the goal
of providing low-income students with child care
services;
‘‘(B) specify any measures the institution
will take to assist low-income students with child
care during the period before the institution pro-
vides child care services; and
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‘‘(C) include a plan for identifying re-
sources needed for the child care services, includ-
ing space in which to provide child care services,
and technical assistance if necessary;
‘‘(9) contain an assurance that any child care
facility assisted under this section will meet the ap-
plicable State or local government licensing, certifi-
cation, approval, or registration requirements; and
‘‘(10) contain a plan for any child care facility
assisted under this section to become accredited with-
in 3 years of the date the institution first receives as-
sistance under this section.
‘‘(d) PRIORITY.—The Secretary shall give priority in
awarding grants under this section to institutions of higher
education that submit applications describing programs
that—
‘‘(1) leverage significant local or institutional re-
sources, including in-kind contributions, to support
the activities assisted under this section; and
‘‘(2) utilize a sliding fee scale for child care serv-
ices provided under this section in order to support
a high number of low-income parents pursuing post-
secondary education at the institution.
‘‘(e) REPORTING REQUIREMENTS; CONTINUING ELIGI-
BILITY.—
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‘‘(1) REPORTING REQUIREMENTS.—
‘‘(A) REPORTS.—Each institution of higher
education receiving a grant under this section
shall report to the Secretary 18 months, and 36
months, after receiving the first grant payment
under this section.
‘‘(B) CONTENTS.—The report shall in-
clude—
‘‘(i) data on the population served
under this section;
‘‘(ii) information on campus and com-
munity resources and funding used to help
low-income students access child care serv-
ices;
‘‘(iii) information on progress made
toward accreditation of any child care facil-
ity; and
‘‘(iv) information on the impact of the
grant on the quality, availability, and af-
fordability of campus-based child care serv-
ices.
‘‘(2) CONTINUING
ELIGIBILITY.—The Secretary
shall make the third annual grant payment under
this section to an institution of higher education only
if the Secretary determines, on the basis of the 18-
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month report submitted under paragraph (1), that the
institution is making a good faith effort to ensure
that low-income students at the institution have ac-
cess to affordable, quality child care services.
‘‘(f) CONSTRUCTION.—No funds provided under this
section shall be used for construction, except for minor ren-
ovation or repair to meet applicable State or local health
or safety requirements.
‘‘(g) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$60,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.’’.
SEC. 420. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.
Part A of title IV (20 U.S.C. 1070 et seq.) is amended
further by adding at the end the following:
‘‘Subpart 9—Learning Anytime Anywhere
Partnerships
‘‘SEC. 420D. FINDINGS.
‘‘Congress makes the following findings:
‘‘(1) The nature of postsecondary education de-
livery is changing, and new technology and other re-
lated innovations can provide promising education
opportunities for individuals who are currently not
being served, particularly for individuals without
easy access to traditional campus-based postsecondary
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education or for whom traditional courses are a poor
match with education or training needs.
‘‘(2) Individuals, including individuals seeking
basic or technical skills or their first postsecondary
experience, individuals with disabilities, dislocated
workers, individuals making the transition from wel-
fare-to-work, and individuals who are limited by time
and place constraints can benefit from nontradi-
tional, noncampus-based postsecondary education op-
portunities and appropriate support services.
‘‘(3) The need for high-quality, nontraditional,
technology-based education opportunities is great, as
is the need for skill competency credentials and other
measures of educational progress and attainment that
are valid and widely accepted, but neither need is
likely to be adequately addressed by the uncoordinated
efforts of agencies and institutions acting independ-
ently and without assistance.
‘‘(4) Partnerships, consisting of institutions of
higher education, community organizations, or other
public or private agencies or organizations, can co-
ordinate and combine institutional resources—
‘‘(A) to provide the needed variety of edu-
cation options to students; and
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‘‘(B) to develop new means of ensuring ac-
countability and quality for innovative edu-
cation methods.
‘‘SEC. 420E. PURPOSE; PROGRAM AUTHORIZED.
‘‘(a) PURPOSE.—It is the purpose of this subpart to
enhance the delivery, quality, and accountability of post-
secondary education and career-oriented lifelong learning
through technology and related innovations.
‘‘(b) PROGRAM AUTHORIZED.—
‘‘(1) GRANTS.—
‘‘(A) IN
GENERAL.—The Secretary may,
from funds appropriated under section 420J
make grants to, or enter into contracts or cooper-
ative agreements with, eligible partnerships to
carry out the authorized activities described in
section 420G.
‘‘(B) DURATION.—Grants under this sub-
part shall be awarded for periods that do not ex-
ceed 5 years.
‘‘(2) DEFINITION OF ELIGIBLE PARTNERSHIP.—
For purposes of this subpart, the term ‘eligible part-
nership’ means a partnership consisting of 2 or more
independent agencies, organizations, or institutions.
The agencies, organizations, or institutions may in-
clude institutions of higher education, community or-
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ganizations, and other public and private institu-
tions, agencies, and organizations.
‘‘SEC. 420F. APPLICATION.
‘‘(a) REQUIREMENT.—An eligible partnership desiring
to receive a grant under this subpart shall submit an appli-
cation to the Secretary, in such form and containing such
information, as the Secretary may require.
‘‘(b) CONTENTS.—Each application shall include—
‘‘(1) the name of each partner and a description
of the responsibilities of the partner, including the
designation of a nonprofit organization as the fiscal
agent for the partnership;
‘‘(2) a description of the need for the project, in-
cluding a description of how the project will build on
any existing services and activities;
‘‘(3) a listing of human, financial (other than
funds provided under this subpart), and other re-
sources that each member of the partnership will con-
tribute to the partnership, and a description of the ef-
forts each member of the partnership will make in
seeking additional resources; and
‘‘(4) a description of how the project will oper-
ate, including how funds awarded under this subpart
will be used to meet the purpose of this subpart.
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‘‘SEC. 420G. AUTHORIZED ACTIVITIES.
‘‘Funds awarded to an eligible partnership under this
subpart shall be used to—
‘‘(1) develop and assess model distance learning
programs or innovative educational software;
‘‘(2) develop methodologies for the identification
and measurement of skill competencies;
‘‘(3) develop and assess innovative student sup-
port services; or
‘‘(4) support other activities that are consistent
with the purpose of this subpart.
‘‘SEC. 420H. MATCHING REQUIREMENT.
‘‘Federal funds shall provide not more than 50 percent
of the cost of a project under this subpart. The non-Federal
share of project costs may be in cash or in kind, fairly eval-
uated, including services, supplies, or equipment.
‘‘SEC. 420I. PEER REVIEW.
‘‘The Secretary shall use a peer review process to re-
view applications under this subpart and to make rec-
ommendations for funding under this subpart to the Sec-
retary.
‘‘SEC. 420J. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subpart $30,000,000 for fiscal year 1999 and such sums
as may be necessary for each of the 4 succeeding fiscal
years.’’.
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PART B—FEDERAL FAMILY EDUCATION LOAN
PROGRAM
SEC. 421. ADVANCES FOR RESERVE FUNDS.
Section 422 (20 U.S.C. 1072) is amended—
(1) in subsection (c)—
(A) in paragraph (6)(B)(i), by striking
‘‘written’’ and inserting ‘‘written, electronic’’;
and
(B) in paragraph (7)(A), by striking ‘‘dur-
ing the transition from the Federal Family Edu-
cation Loan Program under this part to the Fed-
eral Direct Student Loan Program under part D
of this title’’;
(2) in the matter preceding subparagraph (A) of
subsection (g)(1), by striking ‘‘or the program author-
ized by part D of this title’’ each place the term ap-
pears; and
(3) by adding at the end the following:
‘‘(i) ADDITIONAL RECALL OF RESERVES FOR FISCAL
YEARS 1999, 2000, 2001, AND 2002.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law and subject to paragraph (4), the
Secretary shall recall $21,250,000 for each of the fis-
cal years 1999, 2000, 2001, and 2002 from reserve
funds held in the Federal Student Loan Reserve
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Funds established under section 422A by guaranty
agencies.
‘‘(2) DEPOSIT.—Funds recalled by the Secretary
under this subsection shall be deposited in the Treas-
ury.
‘‘(3) REQUIRED SHARE.—The Secretary shall re-
quire each guaranty agency to return reserve funds
under paragraph (1) annually on the basis of 1⁄4 of
the agency’s required share. For purposes of this
paragraph, a guaranty agency’s required share shall
be determined as follows:
‘‘(A) EQUAL PERCENTAGE.—The Secretary
shall require each guaranty agency to return an
equal percentage reduction in the amount of re-
serve funds held by the agency on September 30,
1996.
‘‘(B) CALCULATION.—The equal percentage
reduction shall be the percentage obtained by di-
viding—
‘‘(i) $85,000,000, by
‘‘(ii) the total amount of all guaranty
agencies’ reserve funds held on September
30, 1996.
‘‘(C) SPECIAL RULE.—Notwithstanding sub-
paragraphs (A) and (B), the percentage reduc-
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tion under subparagraph (B) shall not result in
the depletion of the reserve funds of any agency
which charges the 1.0 percent insurance pre-
mium pursuant to section 428(b)(1)(H) below an
amount equal to the amount of lender claim pay-
ments paid 90 days prior to the date of the re-
turn under this subsection. If any additional
amount is required to be returned after deduct-
ing the total of the required shares under sub-
paragraph (B) and as a result of the preceding
sentence, such additional amount shall be ob-
tained by imposing on each guaranty agency to
which the preceding sentence does not apply, an
equal percentage reduction in the amount of the
agency’s remaining reserve funds.
‘‘(4) OFFSET
OF
REQUIRED
SHARES.—If any
guaranty agency returns to the Secretary any reserve
funds in excess of the amount required under this sub-
section or subsection (h), the total amount required to
be returned under paragraph (1) shall be reduced by
the amount of such excess reserve funds returned.
‘‘(5) DEFINITION OF RESERVE FUNDS.—The term
‘reserve funds’ when used with respect to a guaranty
agency—
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‘‘(A) includes any reserve funds in cash or
liquid assets held by the guaranty agency, or
held by, or under the control of, any other entity;
and
‘‘(B) does not include buildings, equipment,
or other nonliquid assets.
‘‘(j) ADDITIONAL RECALL OF RESERVES ON SEPTEM-
BER 1, 2007.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law and subject to paragraph (4), the
Secretary shall recall, on September 1, 2007,
$165,000,000 from reserve funds held in the Federal
Student Loan Reserve Funds established under section
422A by guaranty agencies.
‘‘(2) DEPOSIT.—Funds recalled by the Secretary
under this subsection shall be deposited in the Treas-
ury.
‘‘(3) EQUAL PERCENTAGE REDUCTION.—The Sec-
retary shall require each guaranty agency to return
reserve funds under paragraph (1) by requiring an
equal percentage reduction in the amount of reserve
funds held by the agency on September 30, 1996.
‘‘(4) OFFSET
OF
REQUIRED
SHARES.—If any
guaranty agency returns to the Secretary any reserve
funds in excess of the amount required under this sub-
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section, subsection (h), or subsection (i), the total
amount required to be returned under paragraph (1)
shall be reduced by the amount of such excess reserve
funds returned.
‘‘(5) DEFINITION OF RESERVE FUNDS.—The term
‘reserve funds’ when used with respect to a guaranty
agency—
‘‘(A) includes any reserve funds in cash or
liquid assets held by the guaranty agency, or
held by, or under the control of, any other entity;
and
‘‘(B) does not include buildings, equipment,
or other nonliquid assets.’’.
SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND.
Part B of title IV (20 U.S.C. 1071 et seq.) is amended
by inserting after section 422 (20 U.S.C. 1072) the follow-
ing:
‘‘SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.
‘‘(a) ESTABLISHMENT.—Each guaranty agency shall,
not later than 45 days after the date of enactment of this
section, deposit all funds, securities, and other liquid assets
contained in the reserve fund established pursuant to sec-
tion 422 into a Federal Student Loan Reserve Fund (in
this section referred to as the ‘Federal Fund’), in an account
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of a type selected by the agency, with the approval of the
Secretary.
‘‘(b) INVESTMENT OF FUNDS.—Funds transferred to
the Federal Fund shall be invested in obligations issued or
guaranteed by the United States or a State, or in other
similarly low-risk securities selected by the guaranty agen-
cy, with the approval of the Secretary. Earnings from the
Federal Fund shall be the sole property of the Federal Gov-
ernment.
‘‘(c) ADDITIONAL DEPOSITS.—After the establishment
of the Federal Fund, a guaranty agency shall deposit into
the Federal Fund—
‘‘(1) all amounts received from the Secretary as
payment of reinsurance on loans pursuant to section
428(c)(1);
‘‘(2) from amounts collected on behalf of the obli-
gation of a defaulted borrower, a percentage amount
equal to the complement of the reinsurance percentage
in effect when payment under the guaranty agreement
was made with respect to the defaulted loan pursuant
to section 428(c)(6)(A); and
‘‘(3) the amount of the insurance premium col-
lected 
from 
borrowers 
pursuant 
to 
section
428(b)(1)(H).
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‘‘(d) USES OF FUNDS.—Subject to subsection (f), the
Federal Fund may only be used by a guaranty agency—
‘‘(1) to pay lender claims pursuant to sections
428(b)(1)(G), 428(j), 437, and 439(q); and
‘‘(2) to pay into the Agency Operating Fund es-
tablished pursuant to section 422B a default preven-
tion fee in accordance with section 428(l).
‘‘(e) OWNERSHIP OF FEDERAL FUND.—The Federal
Fund, and any nonliquid asset (such as a building or
equipment) developed or purchased by the guaranty agency
in whole or in part with Federal reserve funds, regardless
of who holds or controls the Federal reserve funds or such
asset, shall be considered to be the property of the United
States, prorated based on the percentage of such asset devel-
oped or purchased with Federal reserve funds, which prop-
erty shall be used in the operation of the program author-
ized by the part, as provided in subsection (d). The Sec-
retary may restrict or regulate the use of such asset only
to the extent necessary to reasonably protect the Secretary’s
prorated share of the value of such asset. The Secretary may
direct a guaranty agency, or such agency’s officers or direc-
tors, to cease any activity involving expenditures, use, or
transfer of the Federal Fund administered by the guaranty
agency that the Secretary determines is a misapplication,
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misuse, or improper expenditures of the Federal fund or the
Secretary’s share of such asset.
‘‘(f) TRANSITION.—
‘‘(1) IN
GENERAL.—In order to establish the
Agency Operating Fund established by section 422B,
each agency may transfer not more than 180 days
cash expenses for normal operating expenses, as a
working capital reserve as defined in Office of Man-
agement and Budget Circular A–87 (Cost Accounting
Standards) for use in the performance of the agency’s
duties under this part. Such transfers may occur dur-
ing the first 3 years following the establishment of the
Agency Operating Fund, except that no agency may
transfer in excess of 40 percent of the Federal Fund
balance to the agency’s Agency Operating Fund dur-
ing any fiscal year. In determining the amount nec-
essary for transfer, the agency shall assure that suffi-
cient funds remain in the Federal Fund to pay lender
claims within the required time periods and to meet
the reserve funds recall requirements of subsection (b).
‘‘(2) REPAYMENT PROVISIONS.—Each guaranty
agency shall begin repayment of sums transferred
pursuant to this subsection not later than 3 years
after the establishment of the Agency Operating Fund,
and shall repay all sums transferred not later than
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5 years from the date of the establishment of the
Agency Operating Fund. The guaranty agency shall
provide to the Secretary a schedule for repayment of
the sums transferred and an annual financial analy-
sis demonstrating the agency’s ability to comply with
the schedule and repay all outstanding sums trans-
ferred.
‘‘(3) PROHIBITION.—If a guaranty agency trans-
fers funds from the Federal Fund in accordance with
this section, and fails to make scheduled repayments
to the Federal Fund, the agency may not receive any
other funds under this part until the Secretary deter-
mines that the agency has made such repayments.
The Secretary shall pay to the guaranty agency any
funds withheld in accordance with this paragraph
immediately upon making the determination that the
guaranty agency has made all such repayments.
‘‘(4) WAIVER.—The Secretary may waive the re-
quirements of paragraph (3) for a guaranty agency
described in such paragraph if the Secretary deter-
mines there are extenuating circumstances beyond the
control of the agency that justify such a waiver.
‘‘(5) INVESTMENT OF FEDERAL FUNDS.—Funds
transferred from the Federal Fund to the Agency Op-
erating Fund for operating expenses shall be invested
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in obligations issued or guaranteed by the United
States or a State, or in other similarly low-risk secu-
rities selected by the guaranty agency, with the ap-
proval of the Secretary.
‘‘(6) SPECIAL RULE.—In applying the minimum
reserve level required by section 428(c)(9)(A), the Sec-
retary shall include all amounts owed to the Federal
Fund by the guaranty agency in the calculation.’’.
SEC. 423. AGENCY OPERATING FUND.
Part B of title IV (20 U.S.C. 1071 et seq.) is amended
further by inserting after section 422A (as added by section
422) the following:
‘‘SEC. 422B. AGENCY OPERATING FUND.
‘‘(a) ESTABLISHMENT.—Each guaranty agency shall,
not later than 45 days after the date of enactment of this
section, establish a fund designated as the Agency Operating
Fund (in this section referred to as the ‘Operating Fund’).
‘‘(b) INVESTMENT OF FUNDS.—Funds deposited into
the Operating Fund, with the exception of funds transferred
from the Federal Student Loan Reserve Fund pursuant to
section 422A(f), shall be invested at the discretion of the
guaranty agency.
‘‘(c) ADDITIONAL DEPOSITS.—After the establishment
of the Operating Fund, the guaranty agency shall deposit
into the Operating Fund—
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‘‘(1) the loan processing and issuance fee paid by
the Secretary pursuant to section 428(f);
‘‘(2) administrative cost allowances paid under
section 458, as such section was in effect on the day
preceding the date of enactment of the Higher Edu-
cation Amendments of 1998, and the portfolio mainte-
nance fee paid by the Secretary in accordance with
section 458;
‘‘(3) the default prevention fee paid in accord-
ance with section 428(l); and
‘‘(4) amounts remaining pursuant to section
428(c)(6)(B) from collection on defaulted loans held
by the agency, after payment of the Secretary’s equi-
table share, excluding amounts deposited in the Fed-
eral Student Loan Reserve Fund pursuant to section
422A(c)(2).
‘‘(d) USES OF FUNDS.—
‘‘(1) IN
GENERAL.—Funds in the Operating
Fund shall be used for application processing, loan
disbursement, enrollment and repayment status man-
agement, default prevention activities (including those
described in section 422(h)(8), default collection ac-
tivities, school and lender training, compliance mon-
itoring, and other student financial aid related ac-
tivities as determined by the Secretary.
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‘‘(2) SPECIAL
RULE.—The guaranty agency
may, in the agency’s discretion, transfer funds from
the Operating Fund to the Federal Student Loan Re-
serve Fund for use pursuant to section 422A. Such
transfer shall be irrevocable, and any funds so trans-
ferred shall become the sole property of the United
States.
‘‘(3) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) DEFAULT COLLECTION ACTIVITIES.—
The term ‘default collection activities’ means ac-
tivities of a guaranty agency that are directly
related to the collection of the loan on which a
default claim has been paid to the participating
lender, including the attributable compensation
of collection personnel (and in the case of person-
nel who perform several functions for such an
agency only the portion of the compensation at-
tributable to the collection activity), attorney’s
fees, fees paid to collection agencies, postage,
equipment, supplies, telephone, and similar
charges.
‘‘(B) DEFAULT PREVENTION ACTIVITIES.—
The term ‘default prevention activities’ means
activities of a guaranty agency, including those
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described in section 422(h)(8), that are directly
related to providing collection assistance to the
lender on a delinquent loan, prior to the loan’s
being in a default status, including the attrib-
utable compensation of appropriate personnel
(and in the case of personnel who perform sev-
eral functions for such an agency only the por-
tion of compensation attributable to the default
prevention activity), fees paid to locate a miss-
ing borrower, postage, equipment, supplies, tele-
phone, and similar charges.
‘‘(C) ENROLLMENT AND REPAYMENT STATUS
MANAGEMENT.—The term ‘enrollment and repay-
ment status management’ means activities of a
guaranty agency that are directly related to
ascertaining the student’s enrollment status, in-
cluding prompt notification to the lender of such
status, an audit of the note or written agreement
to determine if the provisions of that note or
agreement are consistent with the records of the
guaranty agency as to the principal amount of
the loan guaranteed, and an examination of the
note or agreement to assure that the repayment
provisions are consistent with the provisions of
this title.
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‘‘(e) OWNERSHIP OF OPERATING FUND.—The Operat-
ing Fund, with the exception of funds transferred from the
Federal Student Loan Reserve Fund in accordance with
section 422A(f), shall be considered to be the property of
the guaranty agency. The Secretary may not regulate the
uses or expenditure of moneys in the Operating Fund, but
the Secretary may require such necessary reports and au-
dits as provided in section 428(b)(2). However, during any
period in which funds are owed to the Federal Student
Loan Reserve Fund as a result of transfer under section
422A(f), moneys in the Operating Fund may only be used
for expenses related to the student loan programs authorized
under this part.’’.
SEC. 424. SCOPE AND DURATION OF FEDERAL LOAN INSUR-
ANCE PROGRAM.
Section 424(a) (20 U.S.C. 1074(a)) is amended—
(1) by striking ‘‘October 1, 2002’’ and inserting
‘‘October 1, 2004’’; and
(2) by striking ‘‘September 30, 2006’’ and insert-
ing ‘‘September 30, 2008’’.
SEC. 425. APPLICABLE INTEREST RATES.
(a) APPLICABLE INTEREST RATES.—
(1) AMENDMENT.—Section 427A (20 U.S.C.
1077a et seq.) is amended by amending subsection (j)
to read as follows:
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‘‘(j) INTEREST RATES FOR NEW LOANS ON OR AFTER
OCTOBER 1, 1998, AND BEFORE JULY 1, 2003.—
‘‘(1) IN GENERAL.—Notwithstanding subsection
(h) and subject to paragraph (2), with respect to any
loan made, insured, or guaranteed under this part
(other than a loan made pursuant to section 428B or
428C) for which the first disbursement is made on or
after October 1, 1998, and before July 1, 2003, the
applicable rate of interest shall, during any 12-month
period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal
to—
‘‘(A) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction held
prior to such June 1; plus
‘‘(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
‘‘(2) IN SCHOOL AND GRACE PERIOD RULES.—
Notwithstanding subsection (h), with respect to any
loan under this part (other than a loan made pursu-
ant to section 428B or 428C) for which the first dis-
bursement is made on or after October 1, 1998, and
before July 1, 2003, the applicable rate of interest for
interest which accrues—
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‘‘(A) prior to the beginning of the repay-
ment period of the loan; or
‘‘(B) during the period in which principal
need not be paid (whether or not such principal
is in fact paid) by reason of a provision de-
scribed in section 428(b)(1)(M) or 427(a)(2)(C),
shall be determined under paragraph (1) by substitut-
ing ‘1.7 percent’ for ‘2.3 percent’.
‘‘(3) PLUS LOANS.—Notwithstanding subsection
(h), with respect to any loan under section 428B for
which the first disbursement is made on or after Octo-
ber 1, 1998, and before July 1, 2003, the applicable
rate of interest shall be determined under paragraph
(1)—
‘‘(A) by substituting ‘3.1 percent’ for ‘2.3
percent’; and
‘‘(B) by substituting ‘9.0 percent’ for ‘8.25
percent’.
‘‘(4) CONSULTATION.—The Secretary shall deter-
mine the applicable rate of interest under this sub-
section after consultation with the Secretary of the
Treasury and shall publish such rate in the Federal
Register as soon as practicable after the date of deter-
mination.’’.
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(2) 
CONFORMING
AMENDMENT.—Section
428B(d)(4) (20 U.S.C. 1078–2(d)(4)) is amended by
striking ‘‘section 427A(c)’’ and inserting ‘‘section
427A(j)(3)’’.
(b) SPECIAL ALLOWANCES.
(1) AMENDMENT.—Section 438(b)(2)(G) (20
U.S.C. 1087–1(b)(2)(G)) is amended to read as fol-
lows:
‘‘(G) LOANS DISBURSED BETWEEN OCTOBER
1, 1998, AND BEFORE JULY 1, 2003.—
‘‘(i) IN
GENERAL.—Subject to para-
graph (4) and clauses (ii), (iii), and (iv) of
this subparagraph, and except as provided
in subparagraph (B), the special allowance
paid pursuant to this subsection on loans
for which the first disbursement is made on
or after October 1, 1998, and before July 1,
2003, shall be computed—
‘‘(I) by determining the average of the
bond equivalent rates of 91-day Treasury
bills auctioned for such 3-month period;
‘‘(II) by subtracting the applicable in-
terest rates on such loans from such average
bond equivalent rate;
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‘‘(III) by adding 2.8 percent to the re-
sultant percent; and
‘‘(IV) by dividing the resultant percent
by 4.
‘‘(ii) IN SCHOOL AND GRACE PERIOD.—In
the case of any loan for which the first disburse-
ment is made on or after October 1, 1998, and
before July 1, 2003, and for which the applicable
rate of interest is described in section 427A(j)(2),
clause (i)(III) of this subparagraph shall be ap-
plied by substituting ‘2.2 percent’ for ‘2.8 per-
cent’.
‘‘(iii) PLUS LOANS.—In the case of any
loan for which the first disbursement is made on
or after October 1, 1998, and before July 1,
2003, and for which the applicable rate of inter-
est is described in section 427A(j)(3), clause
(i)(III) of this subparagraph shall be applied by
substituting ‘3.1 percent’ for ‘2.8 percent’, subject
to clause (iv) of this subparagraph.
‘‘(iv) LIMITATION ON SPECIAL ALLOWANCES
FOR PLUS LOANS.—In the case of loans disbursed
on or after October 1, 1998, and before July 1,
2003, for which the interest rate is determined
under section 427A(j)(3), a special allowance
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shall not be paid for a loan made under section
428B unless the rate determined for any 12-
month period under section 427A(j)(3) exceeds 9
percent.’’.
(2) 
CONFORMING
AMENDMENT.—Section
438(b)(2)(C)(ii) is amended by striking ‘‘In the case’’
and inserting ‘‘Subject to subparagraph (G), in the
case’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to any loan made, insured,
or guaranteed under part B of title IV of the Higher Edu-
cation Act of 1965 for which the first disbursement is made
on or after October 1, 1998, and before July 1, 2003.
SEC. 426. FEDERAL PAYMENTS TO REDUCE STUDENT IN-
TEREST COSTS.
(a) FEDERAL INTEREST SUBSIDIES.—Section 428(a)
(20 U.S.C. 1078(a)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A)—
(i) in clause (i), by striking subclauses
(I), (II), and (III) and inserting the follow-
ing:
‘‘(I) sets forth the loan amount for
which the student shows financial need; and
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‘‘(II) sets forth a schedule for disburse-
ment of the proceeds of the loan in install-
ments, consistent with the requirements of
section 428G; and’’; and
(ii) by amending clause (ii) to read as
follows:
‘‘(ii) meets the requirements of subpara-
graph (B); and’’;
(B) by amending subparagraph (B) to read
as follows:
‘‘(B) For the purpose of clause (ii) of subpara-
graph (A), a student shall qualify for a portion of an
interest payment under paragraph (1) (and a loan
amount pursuant to section 428H) if the eligible in-
stitution has determined and documented the stu-
dent’s amount of need for a loan based on the stu-
dent’s estimated cost of attendance, estimated finan-
cial assistance, and, for the purpose of an interest
payment pursuant to this section, the expected family
contribution (as determined under part F), subject to
the provisions of subparagraph (D).’’;
(C) by amending subparagraph (C) to read
as follows:
‘‘(C) For the purpose of subparagraph (B) and
this paragraph—
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‘‘(i) a student’s cost of attendance shall be
determined under section 472;
‘‘(ii) a student’s estimated financial assist-
ance means, for the period for which the loan is
sought, the amount of assistance such student
will receive under subpart 1 of part A (as deter-
mined in accordance with section 484(b)), sub-
part 3 of part A, parts C and E, and any veter-
ans’ education benefits paid because of enroll-
ment in a postsecondary education institution,
including veterans’ education benefits (as defined
in section 480(c)), plus other scholarship, grant,
or loan assistance; and
‘‘(iii) the determination of need and of the
amount of a loan by an eligible institution
under subparagraph (B) with respect to a stu-
dent shall, with the exception of loans made
under section 428H, be calculated in accordance
with part F.’’; and
(D) by striking subparagraph (F);
(2) in paragraph (3)(A)(v)—
(A) in subclause (I), by inserting ‘‘by the
institution’’ after ‘‘disbursement’’; and
(B) in clause (II), by inserting ‘‘by the in-
stitution’’ after ‘‘disbursement’’; and
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(3) in paragraph (5)—
(A) by striking ‘‘September 30, 2002’’ and
inserting ‘‘September 30, 2004’’; and
(B) by striking ‘‘September 30, 2006’’ and
inserting ‘‘September 30, 2008’’.
(b) INSURANCE
PROGRAM
AGREEMENTS.—Section
428(b) (20 U.S.C. 1078(b)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i),
by inserting ‘‘, as defined in section
481(d)(2),’’ after ‘‘academic year’’;
(ii) in clause (iv), by striking ‘‘and’’
after the semicolon;
(iii) in clause (v), by inserting ‘‘and’’
after the semicolon; and
(iv) by inserting before the matter fol-
lowing clause (v) the following:
‘‘(vi) in the case of a student enrolled
in 
coursework 
specified 
in 
sections
484(b)(3)(B) and 484(b)(4)(B)—
‘‘(I) $2,625 for coursework nec-
essary for enrollment in an under-
graduate degree or certificate program,
and $5,500 for coursework necessary
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for enrollment in a graduate or profes-
sional degree or certification program;
and
‘‘(II) $5,500 for coursework nec-
essary for a professional credential or
certification from a State required for
employment as a teacher in an elemen-
tary or secondary school;’’;
(B) by amending subparagraph (E) to read
as follows:
‘‘(E) subject to subparagraphs (D) and (L),
and except as provided by subparagraph (M),
provides that—
‘‘(i) not more than 6 months prior to
the date on which the borrower’s first pay-
ment is due, the lender shall offer the bor-
rower of a loan made, insured, or guaran-
teed under this section or section 428H, the
option of repaying the loan in accordance
with a graduated, income-sensitive, or ex-
tended repayment schedule (as described in
paragraph (9)) established by the lender in
accordance with regulations provided by the
Secretary; and
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‘‘(ii) repayment of loans shall be in in-
stallments in accordance with the repay-
ment plan selected under paragraph (9) and
commencing at the beginning of the repay-
ment period determined under paragraph
(7)’’;
(C) in subparagraph (L)(i), by inserting
‘‘except as otherwise provided by a repayment
plan selected by the borrower under clause (ii) or
(iii) of paragraph (9)(A),’’ before ‘‘during any’’;
and
(D) in subparagraph (U)(iii)(I), by insert-
ing ‘‘that originates or holds more than
$5,000,000 in loans made under this title for
any fiscal year (except that each lender described
in section 435(d)(1)(A)(ii)(III) shall annually
submit the results of an audit required by this
clause),’’ before ‘‘at least once a year’’;
(2) in paragraph (7), by adding at the end the
following:
‘‘(D) There shall be excluded from the 6-month
period that begins on the date on which a student
ceases to carry at least one-half the normal full-time
academic workload as described in subparagraph
(A)(i) any period not to exceed 3 years during which
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a borrower who is a member of a reserve component
of the Armed Forces named in section 10101 of title
10, United States Code, is called or ordered to active
duty for a period of more than 30 days (as defined
in section 101(d)(2) of such title). Such period of ex-
clusion shall include the period necessary to resume
enrollment at the borrower’s next available regular
enrollment period.’’; and
(3) by adding at the end the following:
‘‘(9) REPAYMENT PLANS.—
‘‘(A) DESIGN AND SELECTION.—In accord-
ance with regulations promulgated by the Sec-
retary, the lender shall offer a borrower of a loan
made under this part the plans described in this
subparagraph for repayment of such loan, in-
cluding principal and interest thereon. Except as
provided in paragraph (1)(L)(i), no plan may
require a borrower to repay a loan in less than
5 years. The borrower may choose from—
‘‘(i) a standard repayment plan, with
a fixed annual repayment amount paid
over a fixed period of time, not to exceed 10
years;