H. R. 6—155
(d) TOLL-FREE INFORMATION.—Section 483(d) is amended by
striking ‘‘section 633(c)’’ and inserting ‘‘section 685(d)(2)(C)’’.
(e) REPEAL.—Subsection (f ) of section 483 is repealed.
SEC. 483. STUDENT ELIGIBILITY.
(a) IN
GENERAL.—Section 484(a) (20 U.S.C. 1091(a)) is
amended—
(1) in paragraph (4), by striking ‘‘the institution’’ and every-
thing that follows through ‘‘lender), a document’’ and inserting
‘‘the Secretary, as part of the original financial aid application
process, a certification,’’; and
(2) in paragraph (5), by striking ‘‘or a permanent resident
of the Trust Territory of the Pacific Islands, Guam, or the
Northern Mariana Islands’’ and inserting ‘‘a citizen of any
one of the Freely Associated States’’.
(b) HOME-SCHOOLED STUDENTS.—Section 484(d) is amended—
(1) in the matter preceding paragraph (1), by striking
‘‘either’’; and
(2) by adding at the end the following:
‘‘(3) The student has completed a secondary school edu-
cation in a home school setting that is treated as a home
school or private school under State law.’’.
(c) TERMINATION OF ELIGIBILITY.—Section 484( j) is amended
to read as follows:
‘‘( j) ASSISTANCE UNDER SUBPARTS 1 AND 3 OF PART A, AND
PART C.—Notwithstanding any other provision of law, a student
shall be eligible until September 30, 2004, for assistance under
subparts 1 and 3 of part A, and part C, if the student is otherwise
qualified and—
‘‘(1) is a citizen of any one of the Freely Associated States
and attends an institution of higher education in a State or
a public or nonprofit private institution of higher education
in the Freely Associated States; or
‘‘(2) meets the requirements of subsection (a)(5) and attends
a public or nonprofit private institution of higher education
in any one of the Freely Associated States.’’.
(d) CORRESPONDENCE COURSES.—Paragraph (1) of section 484(l)
is amended to read as follows:
‘‘(1) RELATION TO CORRESPONDENCE COURSES.—
‘‘(A) IN GENERAL.—A student enrolled in a course of
instruction at an institution of higher education that is
offered in whole or in part through telecommunications
and leads to a recognized certificate for a program of study
of 1 year or longer, or a recognized associate, baccalaureate,
or graduate degree, conferred by such institution, shall
not be considered to be enrolled in correspondence courses
unless the total amount of telecommunications and cor-
respondence courses at such institution equals or exceeds
50 percent of the total amount of all courses at the institu-
tion.
‘‘(B) REQUIREMENT.—An institution of higher education
referred to in subparagraph (A) is an institution of higher
education—
‘‘(i) that is not an institute or school described
in section 521(4)(C) of the Carl D. Perkins Vocational
and Applied Technology Education Act; and
H. R. 6—156
‘‘(ii) for which at least 50 percent of the programs
of study offered by the institution lead to the award
of a recognized associate, baccalaureate, or graduate
degree.’’.
(e) VERIFICATION OF INCOME DATA.—Section 484 is amended
by adding at the end the following:
‘‘(q) VERIFICATION OF INCOME DATA.—
‘‘(1) CONFIRMATION WITH IRS.—The Secretary of Education,
in cooperation with the Secretary of the Treasury, is authorized
to confirm with the Internal Revenue Service the adjusted
gross income, Federal income taxes paid, filing status, and
exemptions reported by applicants (including parents) under
this title on their Federal income tax returns for the purpose
of verifying the information reported by applicants on student
financial aid applications.
‘‘(2) NOTIFICATION.—The Secretary shall establish proce-
dures under which an applicant is notified that the Internal
Revenue Service will disclose to the Secretary tax return
information as authorized under section 6103(l)(13) of the
Internal Revenue Code of 1986.’’.
(f ) SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED OFFENSES.—
(1) AMENDMENT.—Section 484 is amended by adding at
the end thereof the following:
‘‘(r) 
SUSPENSION
OF
ELIGIBILITY
FOR
DRUG-RELATED
OFFENSES.—
‘‘(1) IN GENERAL.—A student who has been convicted of
any offense under any Federal or State law involving the
possession or sale of a controlled substance shall not be eligible
to receive any grant, loan, or work assistance under this title
during the period beginning on the date of such conviction
and ending after the interval specified in the following table:
‘‘If convicted of an offense involving:
The possession of a con-
trolled substance:
Ineligibility period is:
First offense .................................
1 year
Second offense .............................
2 years
Third offense ...............................
Indefinite.
The sale of a controlled
substance:
Ineligibility period is:
First offense .................................
2 years
Second offense .............................
Indefinite.
‘‘(2) REHABILITATION.—A student whose eligibility has been
suspended under paragraph (1) may resume eligibility before
the end of the ineligibility period determined under such para-
graph if—
‘‘(A) the student satisfactorily completes a drug
rehabilitation program that—
‘‘(i) complies with such criteria as the Secretary
shall prescribe in regulations for purposes of this para-
graph; and
‘‘(ii) includes two unannounced drug tests; or
‘‘(B) the conviction is reversed, set aside, or otherwise
rendered nugatory.
‘‘(3) DEFINITIONS.—In this subsection, the term ‘controlled
substance’ has the meaning given the term in section 102(6)
of the Controlled Substances Act (21 U.S.C. 802(6)).’’.
H. R. 6—157
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1), regarding suspension of eligibility for drug-related offenses,
shall apply with respect to financial assistance to cover the
costs of attendance for periods of enrollment beginning after
the date of enactment of this Act.
SEC. 484. STATE COURT JUDGMENTS.
Section 484A (20 U.S.C. 1091a) is amended—
(1) in the heading of the section by inserting ‘‘, AND STATE
COURT JUDGMENTS’’ after ‘‘LIMITATIONS’’; and
(2) by adding at the end the following:
‘‘(c) STATE COURT JUDGMENTS.—A judgment of a State court
for the recovery of money provided as grant, loan, or work assistance
under this title that has been assigned or transferred to the Sec-
retary under this title may be registered in any district court
of the United States by filing a certified copy of the judgment
and a copy of the assignment or transfer. A judgment so registered
shall have the same force and effect, and may be enforced in
the same manner, as a judgment of the district court of the district
in which the judgment is registered.’’.
SEC. 485. INSTITUTIONAL REFUNDS.
Section 484B (20 U.S.C. 1091b) is amended to read as follows:
‘‘SEC. 484B. INSTITUTIONAL REFUNDS.
‘‘(a) RETURN OF TITLE IV FUNDS.—
‘‘(1) IN GENERAL.—If a recipient of assistance under this
title withdraws from an institution during a payment period
or period of enrollment in which the recipient began attendance,
the amount of grant or loan assistance (other than assistance
received under part C) to be returned to the title IV programs
is calculated according to paragraph (3) and returned in accord-
ance with subsection (b).
‘‘(2) LEAVE OF ABSENCE.—
‘‘(A) LEAVE NOT TREATED AS WITHDRAWAL.—In the case
of a student who takes a leave of absence from an institu-
tion for not more than a total of 180 days in any 12-
month period, the institution may consider the student
as not having withdrawn from the institution during the
leave of absence, and not calculate the amount of grant
and loan assistance provided under this title that is to
be returned in accordance with this section if—
‘‘(i) the institution has a formal policy regarding
leaves of absence;
‘‘(ii) the student followed the institution’s policy
in requesting a leave of absence; and
‘‘(iii) the institution approved the student’s request
in accordance with the institution’s policy.
‘‘(B) CONSEQUENCES OF FAILURE TO RETURN.—If a stu-
dent does not return to the institution at the expiration
of an approved leave of absence that meets the require-
ments of subparagraph (A), the institution shall calculate
the amount of grant and loan assistance provided under
this title that is to be returned in accordance with this
section based on the day the student withdrew (as deter-
mined under subsection (c)).
‘‘(3) CALCULATION
OF
AMOUNT
OF
TITLE
IV
ASSISTANCE
EARNED.—
H. R. 6—158
‘‘(A) IN GENERAL.—The amount of grant or loan assist-
ance under this title that is earned by the recipient for
purposes of this section is calculated by—
‘‘(i) determining the percentage of grant and loan
assistance under this title that has been earned by
the student, as described in subparagraph (B); and
‘‘(ii) applying such percentage to the total amount
of such grant and loan assistance that was disbursed
(and that could have been disbursed) to the student,
or on the student’s behalf, for the payment period
or period of enrollment for which the assistance was
awarded, as of the day the student withdrew.
‘‘(B) PERCENTAGE EARNED.—For purposes of subpara-
graph (A)(i), the percentage of grant or loan assistance
under this title that has been earned by the student is—
‘‘(i) equal to the percentage of the payment period
or period of enrollment for which assistance was
awarded that was completed (as determined in accord-
ance with subsection (d)) as of the day the student
withdrew, provided that such date occurs on or before
the completion of 60 percent of the payment period
or period of enrollment; or
‘‘(ii) 100 percent, if the day the student withdrew
occurs after the student has completed 60 percent of
the payment period or period of enrollment.
‘‘(C) PERCENTAGE AND AMOUNT NOT EARNED.—For pur-
poses of subsection (b), the amount of grant and loan assist-
ance awarded under this title that has not been earned
by the student shall be calculated by—
‘‘(i) determining the complement of the percentage
of grant or loan assistance under this title that has
been earned by the student described in subparagraph
(B); and
‘‘(ii) applying the percentage determined under
clause (i) to the total amount of such grant and loan
assistance that was disbursed (and that could have
been disbursed) to the student, or on the student’s
behalf, for the payment period or period of enrollment,
as of the day the student withdrew.
‘‘(4) 
DIFFERENCES
BETWEEN
AMOUNTS
EARNED
AND
AMOUNTS RECEIVED.—
‘‘(A) IN
GENERAL.—If the student has received less
grant or loan assistance than the amount earned as cal-
culated under subparagraph (A) of paragraph (3), the
institution of higher education shall comply with the proce-
dures for late disbursement specified by the Secretary in
regulations.
‘‘(B) RETURN.—If the student has received more grant
or loan assistance than the amount earned as calculated
under paragraph (3)(A), the unearned funds shall be
returned by the institution or the student, or both, as
may be required under paragraphs (1) and (2) of subsection
(b), to the programs under this title in the order specified
in subsection (b)(3).
‘‘(b) RETURN OF TITLE IV PROGRAM FUNDS.—
H. R. 6—159
‘‘(1) RESPONSIBILITY OF THE INSTITUTION.—The institution
shall return, in the order specified in paragraph (3), the lesser
of—
‘‘(A) the amount of grant and loan assistance awarded
under this title that has not been earned by the student,
as calculated under subsection (a)(3)(C); or
‘‘(B) an amount equal to—
‘‘(i) the total institutional charges incurred by the
student for the payment period or period of enrollment
for which such assistance was awarded; multiplied by
‘‘(ii) the percentage of grant and loan assistance
awarded under this title that has not been earned
by the student, as described in subsection (a)(3)(C)(i).
‘‘(2) RESPONSIBILITY OF THE STUDENT.—
‘‘(A) IN GENERAL.—The student shall return assistance
that has not been earned by the student as described
in subsection (a)(3)(C)(ii) in the order specified in paragraph
(3) minus the amount the institution is required to return
under paragraph (1).
‘‘(B) SPECIAL
RULE.—The student (or parent in the
case of funds due to a loan borrowed by a parent under
part B or D) shall return or repay, as appropriate, the
amount determined under subparagraph (A) to—
‘‘(i) a loan program under this title in accordance
with the terms of the loan; and
‘‘(ii) a grant program under this title, as an over-
payment of such grant and shall be subject to—
‘‘(I) repayment arrangements satisfactory to
the institution; or
‘‘(II) overpayment collection procedures pre-
scribed by the Secretary.
‘‘(C) REQUIREMENT.—Notwithstanding subparagraphs
(A) and (B), a student shall not be required to return
50 percent of the grant assistance received by the student
under this title, for a payment period or period of enroll-
ment, that is the responsibility of the student to repay
under this section.
‘‘(3) ORDER OF RETURN OF TITLE IV FUNDS.—
‘‘(A) IN
GENERAL.—Excess funds returned by the
institution or the student, as appropriate, in accordance
with paragraph (1) or (2), respectively, shall be credited
to outstanding balances on loans made under this title
to the student or on behalf of the student for the payment
period or period of enrollment for which a return of funds
is required. Such excess funds shall be credited in the
following order:
‘‘(i) To outstanding balances on loans made under
section 428H for the payment period or period of enroll-
ment for which a return of funds is required.
‘‘(ii) To outstanding balances on loans made under
section 428 for the payment period or period of enroll-
ment for which a return of funds is required.
‘‘(iii) To outstanding balances on unsubsidized
loans (other than parent loans) made under part D
for the payment period or period of enrollment for
which a return of funds is required.
H. R. 6—161
the payment period or period of enrollment for which assistance
is awarded into the number of clock hours—
‘‘(A) completed by the student in that period as of
the day the student withdrew; or
‘‘(B) scheduled to be completed as of the day the stu-
dent withdrew, if the clock hours completed in the period
are not less than a percentage, to be determined by the
Secretary in regulations, of the hours that were scheduled
to be completed by the student in the period.
‘‘(e) EFFECTIVE DATE.—The provisions of this section shall take
effect 2 years after the date of enactment of the Higher Education
Amendments of 1998. An institution of higher education may choose
to implement such provisions prior to that date.’’.
SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION
FOR STUDENTS.
(a) INFORMATION DISSEMINATION ACTIVITIES.—Section 485(a)
(20 U.S.C. 1092(a)) is amended—
(1) in paragraph (1)—
(A) in the second sentence, by striking ‘‘, through appro-
priate publications and mailings, to all current students,
and to any prospective student upon request’’ and inserting
‘‘upon request, through appropriate publications, mailings,
and electronic media, to an enrolled student and to any
prospective student’’;
(B) by inserting after the second sentence the following:
‘‘Each eligible institution shall, on an annual basis, provide
to all enrolled students a list of the information that is
required to be provided by institutions to students by this
section and section 444 of the General Education Provisions
Act (also referred to as the Family Educational Rights
and Privacy Act of 1974), together with a statement of
the procedures required to obtain such information.’’;
(C) by amending subparagraph (F) to read as follows:
‘‘(F) a statement of—
‘‘(i) the requirements of any refund policy with which
the institution is required to comply;
‘‘(ii) the requirements under section 484B for the return
of grant or loan assistance provided under this title; and
‘‘(iii) the requirements for officially withdrawing from
the institution;’’; and
(D) by striking ‘‘and’’ at the end of subparagraph (M);
(E) by striking the period at the end of subparagraph
(N) and inserting ‘‘; and’’; and
(F) by adding at the end the following:
‘‘(O) the campus crime report prepared by the institution
pursuant to subsection (f ), including all required reporting
categories.’’;
(2) in paragraph (3), by amending subparagraph (A) to
read as follows:
‘‘(A) shall be made available by July 1 each year to enrolled
students and prospective students prior to the students enroll-
ing or entering into any financial obligation; and’’; and
(3) by adding at the end the following:
‘‘(6) Each institution may provide supplemental information
to enrolled and prospective students showing the completion or
H. R. 6—162
graduation rate for students described in paragraph (4) or for stu-
dents transferring into the institution or information showing the
rate at which students transfer out of the institution.’’.
(b) EXIT COUNSELING
FOR BORROWERS.—Section 485(b) (20
U.S.C. 1092(b)) is amended—
(1) in paragraph (1)(A), by striking ‘‘(individually or in
groups)’’; and
(2) in paragraph (2), by adding at the end the following:
‘‘(C) Nothing in this subsection shall be construed to prohibit
an institution of higher education from utilizing electronic means
to provide personalized exit counseling.’’.
(c) DEPARTMENTAL PUBLICATIONS.—Section 485(d) is amended—
(1) by striking ‘‘(1) assist’’ and inserting ‘‘(A) assist’’;
(2) by striking ‘‘(2) assist’’ and inserting ‘‘(B) assist’’;
(3) by inserting ‘‘(1)’’ before ‘‘The Secretary’’ the first place
the term appears; and
(4) by adding at the end the following:
‘‘(2) The Secretary, to the extent the information is available,
shall compile information describing State and other prepaid tuition
programs and savings programs and disseminate such information
to States, eligible institutions, students, and parents in depart-
mental publications.
‘‘(3) The Secretary, to the extent practicable, shall update the
Department’s Internet site to include direct links to databases
that contain information on public and private financial assistance
programs. The Secretary shall only provide direct links to databases
that can be accessed without charge and shall make reasonable
efforts to verify that the databases included in a direct link are
not providing fraudulent information. The Secretary shall promi-
nently display adjacent to any such direct link a disclaimer indicat-
ing that a direct link to a database does not constitute an endorse-
ment or recommendation of the database, the provider of the data-
base, or any services or products of such provider. The Secretary
shall provide additional direct links to information resources from
which students may obtain information about fraudulent and decep-
tive practices in the provision of services related to student financial
aid.’’.
(d) DISCLOSURES.—Section 485(e) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘his parents, his guidance’’ and insert-
ing ‘‘the student’s parents, guidance’’; and
(B) by adding at the end the following: ‘‘If the institu-
tion is a member of a national collegiate athletic association
that compiles graduation rate data on behalf of the associa-
tion’s member institutions that the Secretary determines
is substantially comparable to the information described
in paragraph (1), the distribution of the compilation of
such data to all secondary schools in the United States
shall fulfill the responsibility of the institution to provide
information to a prospective student athlete’s guidance
counselor and coach.’’; and
(2) by amending paragraph (9) to read as follows:
‘‘(9) The reports required by this subsection shall be due each
July 1 and shall cover the 1-year period ending August 31 of
the preceding year.’’.
(e) DISCLOSURE
OF CAMPUS SECURITY POLICY
AND CAMPUS
CRIME STATISTICS.—Section 485(f ) (20 U.S.C. 1092(f )) is amended—
H. R. 6—163
(1) in paragraph (1)—
(A) by amending subparagraph (F) to read as follows:
‘‘(F) Statistics concerning the occurrence on campus, in
or on noncampus buildings or property, and on public property
during the most recent calendar year, and during the 2 preced-
ing calendar years for which data are available—
‘‘(i) of the following criminal offenses reported to cam-
pus security authorities or local police agencies:
‘‘(I) murder;
‘‘(II) sex offenses, forcible or nonforcible;
‘‘(III) robbery;
‘‘(IV) aggravated assault;
‘‘(V) burglary;
‘‘(VI) motor vehicle theft;
‘‘(VII) manslaughter;
‘‘(VIII) arson; and
‘‘(IX) arrests or persons referred for campus dis-
ciplinary action for liquor law violations, drug-related
violations, and weapons possession; and
‘‘(ii) of the crimes described in subclauses (I) through
(VIII) of clause (i), and other crimes involving bodily injury
to any person in which the victim is intentionally selected
because of the actual or perceived race, gender, religion,
sexual orientation, ethnicity, or disability of the victim
that are reported to campus security authorities or local
police agencies, which data shall be collected and reported
according to category of prejudice.’’;
(B) by striking subparagraph (H); and
(C) by redesignating subparagraph (I) as subparagraph
(H);
(2) in paragraph (4)—
(A) by striking ‘‘Upon request of the Secretary, each’’
and inserting ‘‘On an annual basis, each’’;
(B) by striking ‘‘paragraphs (1)(F) and (1)(H)’’ and
inserting ‘‘paragraph (1)(F)’’;
(C) by striking ‘‘and Labor’’ and inserting ‘‘and the
Workforce’’;
(D) by striking ‘‘1995’’ and inserting ‘‘2000’’;
(E) by striking ‘‘and’’ at the end of subparagraph (A);
(F) by redesignating subparagraph (B) as subparagraph
(C); and
(G) by inserting after subparagraph (A) the following:
‘‘(B) make copies of the statistics submitted to the Secretary
available to the public; and’’;
(3) by amending paragraph (5)(A) to read as follows:
‘‘(5)(A) In this subsection:
‘‘(i) The term ‘campus’ means—
‘‘(I) any building or property owned or controlled by
an institution of higher education within the same reason-
ably contiguous geographic area of the institution and used
by the institution in direct support of, or in a manner
related to, the institution’s educational purposes, including
residence halls; and
‘‘(II) property within the same reasonably contiguous
geographic area of the institution that is owned by the
institution but controlled by another person, is used by
H. R. 6—164
students, and supports institutional purposes (such as a
food or other retail vendor).
‘‘(ii) The term ‘noncampus building or property’ means—
‘‘(I) any building or property owned or controlled by
a student organization recognized by the institution; and
‘‘(II) any building or property (other than a branch
campus) owned or controlled by an institution of higher
education that is used in direct support of, or in relation
to, the institution’s educational purposes, is used by stu-
dents, and is not within the same reasonably contiguous
geographic area of the institution.
‘‘(iii) The term ‘public property’ means all public property
that is within the same reasonably contiguous geographic area
of the institution, such as a sidewalk, a street, other thorough-
fare, or parking facility, and is adjacent to a facility owned
or controlled by the institution if the facility is used by the
institution in direct support of, or in a manner related to
the institution’s educational purposes.’’;
(4) in paragraph (6)—
(A) by striking ‘‘paragraphs (1)(F) and (1)(H)’’ and
inserting ‘‘paragraph (1)(F)’’; and
(B) by adding at the end the following: ‘‘Such statistics
shall not identify victims of crimes or persons accused
of crimes.’’;
(5) by redesignating paragraphs (4) through (7) as para-
graphs (5) through (8), respectively;
(6) by inserting after paragraph (3) the following:
‘‘(4)(A) Each institution participating in any program under
this title that maintains a police or security department of any
kind shall make, keep, and maintain a daily log, written in a
form that can be easily understood, recording all crimes reported
to such police or security department, including—
‘‘(i) the nature, date, time, and general location of each
crime; and
‘‘(ii) the disposition of the complaint, if known.
‘‘(B)(i) All entries that are required pursuant to this paragraph
shall, except where disclosure of such information is prohibited
by law or such disclosure would jeopardize the confidentiality of
the victim, be open to public inspection within two business days
of the initial report being made to the department or a campus
security authority.
‘‘(ii) If new information about an entry into a log becomes
available to a police or security department, then the new informa-
tion shall be recorded in the log not later than two business days
after the information becomes available to the police or security
department.
‘‘(iii) If there is clear and convincing evidence that the release
of such information would jeopardize an ongoing criminal investiga-
tion or the safety of an individual, cause a suspect to flee or
evade detection, or result in the destruction of evidence, such
information may be withheld until that damage is no longer likely
to occur from the release of such information.’’; and
(7) by adding at the end the following:
‘‘(9) The Secretary shall provide technical assistance in comply-
ing with the provisions of this section to an institution of higher
education who requests such assistance.