I
107TH CONGRESS
2D SESSION
H. R. 4866
To make technical amendments to the Higher Education Act of 1965
incorporating the results of the Fed Up Initiative.
IN THE HOUSE OF REPRESENTATIVES
JUNE 5, 2002
Mr. MCKEON (for himself, Mr. BOEHNER, Mr. GEORGE MILLER of California,
Mrs. MINK of Hawaii, Mr. PETRI, Mrs. ROUKEMA, Mr. KILDEE, Mr. SAM
JOHNSON of Texas, Mr. ANDREWS, Mr. GRAHAM, Ms. WOOLSEY, Mr.
TANCREDO, Mr. HINOJOSA, Mr. ISAKSON, Mr. TIERNEY, Mr. GOOD-
LATTE, Mr. KIND, Mr. KELLER, Mr. OSBORNE, Mr. SHAYS, Mr.
HAYWORTH, Mr. CALVERT, Ms. MILLENDER-MCDONALD, and Mr. ROG-
ERS of Michigan) introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To make technical amendments to the Higher Education
Act of 1965 incorporating the results of the Fed Up
Initiative.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE; EFFECTIVE DATE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Fed Up Higher Education Technical Amendments of
2002’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided in this Act, whenever in this Act an amendment or
repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
(c) EFFECTIVE DATE.—Except as otherwise provided
in this Act, the amendments made by this Act shall take
effect on the date of enactment of this Act.
SEC. 2. TECHNICAL AMENDMENTS.
(a) AMENDMENTS TO TITLE I.—
(1) Section 101(a)(1) (20 U.S.C. 1001(a)(1)) is
amended by inserting before the semicolon at the
end the following: ‘‘, or students who meet the re-
quirements of section 484(d)(3)’’.
(2) 
Section 
102(a)(2)(A) 
(20 
U.S.C.
1002(a)(2)(A)) is amended to read as follows:
‘‘(A) IN
GENERAL.—For the purpose of
qualifying as an institution under paragraph
(1)(C), the Secretary shall establish criteria by
regulation for the approval of institutions out-
side the United States and for the determina-
tion that such institutions are comparable to an
institution of higher education as defined in
section 101 (except that a graduate medical
school, or a veterinary school, located outside
the United States shall not be required to meet
the requirements of section 101(a)(4)). Such
criteria shall include a requirement that a stu-
dent attending such school outside the United
States is ineligible for loans made, insured, or
guaranteed under part B of title IV unless—
‘‘(i) in the case of a graduate medical
school located outside the United States—
‘‘(I)(aa) at least 60 percent of
those enrolled in, and at least 60 per-
cent of the graduates of, the graduate
medical school outside the United
States were not persons described in
section 484(a)(5) in the year pre-
ceding the year for which a student is
seeking a loan under part B of title
IV; and
‘‘(bb) at least 60 percent of the
individuals who were students or
graduates of the graduate medical
school outside the United States or
Canada (both nationals of the United
States and others) taking the exami-
nations administered by the Edu-
cational Commission for Foreign Med-
ical Graduates received a passing
score in the year preceding the year
for which a student is seeking a loan
under part B of title IV; or
‘‘(II) the institution has a clinical
training program that was approved
by a State as of January 1, 1992; or
‘‘(ii) in the case of a veterinary school
located outside the United States that does
not meet the requirements of section
101(a)(4)—
‘‘(I) the institution was certified
by the Secretary as eligible to partici-
pate in the loan program under part
B of title IV before October 1, 1999;
and
‘‘(II) the institution’s students
complete their clinical training at an
approved veterinary school located in
the United States.’’.
(3) 
Section 
102(a)(3)(A) 
(20 
U.S.C.
1002(a)(3)(A)) is amended by striking ‘‘section
521(4)(C) of the Carl Perkins Vocational and Ap-
plied Technology Education Act’’ and inserting ‘‘sec-
tion 3(3)(C) of the Carl D. Perkins Vocational and
Technical Education Act of 1998’’.
(4) Paragraph (7) of section 103 (20 U.S.C.
1003) is amended to read as follows:
‘‘(7) NEW
BORROWER.—The term ‘new bor-
rower’ when used with respect to any date for any
loan under any provision of—
‘‘(A) part B or part D of title IV means
an individual who on that date has no out-
standing balance of principal or interest owing
on any loan made, insured, or guaranteed under
either such part; and
‘‘(B) part E of title IV means an indi-
vidual who on that date has no outstanding bal-
ance of principal or interest owing on any loan
made under such part.’’.
(5) Section 131 (20 U.S.C. 1015) is amended—
(A) in subsection (a)(3)(A)(iii)—
(i) by striking ‘‘an undergraduate’’
and inserting ‘‘a full-time undergraduate’’;
and
(ii) in subclause (I), by striking ‘‘sec-
tion 428(a)(2)(C)(i)’’ and inserting ‘‘sec-
tion 428(a)(2)(C)(ii)’’;
(B) in subsection (b), by striking ‘‘the
costs for typical’’ and inserting ‘‘the prices for,
and financial aid provided to, typical’’;
(C) in subsection (c)(2)(B), by striking
‘‘costs’’ and inserting ‘‘prices’’; and
(D) in subsection (d)(1) is amended by
striking ‘‘3 years’’ and inserting ‘‘4 years’’.
(6) Section 141 (20 U.S.C. 1018) is amended—
(A) in subsection (a)(2)(B)—
(i) by inserting ‘‘unit’’ after ‘‘to re-
duce the’’; and
(ii) by inserting ‘‘and, to the extent
practicable, total costs of administering
those programs’’ after ‘‘those programs’’;
(B) in subsection (c)—
(i) in paragraph (1)(A), by striking
‘‘Each year’’ and inserting ‘‘Each fiscal
year’’;
(ii) in paragraph (1)(B), by inserting
‘‘secondary markets, guaranty agencies,’’
after ‘‘lenders,’’; and
(iii) in paragraph (2)(B), by striking
‘‘Chief Financial Officer Act of 1990 and’’
and inserting ‘‘Chief Financial Officers Act
of 1990,’’ and by inserting before the pe-
riod at the end the following: ‘‘, and other
relevant statutes’’;
(C) in subsection (f)(3)(A), by striking
‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph
(1)’’; and
(D) in subsection (g)(3), by adding at the
end the following new sentence: ‘‘The names
and compensation for those individuals shall be
included in the annual report under subsection
(c)(2).’’.
(b) AMENDMENTS TO TITLE II.—Section 207(f)(2)
(20 U.S.C. 1027(f)(2)) is amended by inserting ‘‘, includ-
ing by electronic means,’’ after ‘‘sent’’.
(c) AMENDMENTS TO TITLE III.—
(1) Section 316(b)(3) (20 U.S.C. 1059c(b)(3))
is amended by striking ‘‘give’’ and inserting ‘‘given’’.
(2) Section 326(e)(1) (20 U.S.C. 1063b(e)(1))
is amended, in the matter preceding subparagraph
(A), by inserting a colon after ‘‘the following’’.
(3) Section 342(5)(C) (20 U.S.C. 1066a(5)(C))
is amended—
(A) by inserting a comma after ‘‘equip-
ment’’ the first place it appears; and
(B) by striking ‘‘technology,,’’ and insert-
ing ‘‘technology,’’.
(4) Section 343(e) (20 U.S.C. 1066b(e)) is
amended by inserting after the subsection designa-
tion 
the 
following: 
‘‘SALE
OF
QUALIFIED
BONDS.—’’.
(5) Section 351(a) (20 U.S.C. 1067a(a)) is
amended by striking ‘‘of 1979’’.
(6) Section 1024 (20 U.S.C. 1135b–3), as
transferred by section 301(a)(5) of the Higher Edu-
cation Amendments of 1998 (Public Law 105–244;
112 Stat. 1636), is repealed.
(d) AMENDMENTS TO PART A OF TITLE IV.—
(1) Section 402A (20 U.S.C. 1070a-11) is
amended—
(A) in subsection (e)—
(i) in paragraph (1), by striking
‘‘(g)(2)’’ and inserting ‘‘(g)(4)’’; and
(ii) in paragraph (2), by striking
‘‘(g)(2)’’ and inserting ‘‘(g)(4)’’; and
(B) in subsection (g)—
(i) by redesignating paragraphs (1)
through (4) as paragraphs (3) through (6),
respectively; and
(ii) by inserting before paragraph (3),
as redesignated, the following:
‘‘(1) DIFFERENT CAMPUS.—The term ‘different
campus’ means an institutional site that—
‘‘(A) is geographically apart from the main
campus of the institution;
‘‘(B) is permanent in nature; and
‘‘(C) offers courses in educational pro-
grams leading to a degree, certificate, or other
recognized educational credential.
‘‘(2) DIFFERENT POPULATION.—The term ‘dif-
ferent population’ means a group of individuals, with
respect to whom an entity seeks to serve through an
application for funding under this chapter, that is—
‘‘(A) separate and distinct from any other
population that the entity seeks to serve
through an application for funding under this
chapter; or
‘‘(B) while sharing some of the same char-
acteristics as another population that the entity
seeks to serve through an application for fund-
ing under this chapter, has distinct needs for
specialized services.’’.
(2)(A) Section 404A(b) (20 U.S.C. 1070a–
21(b)) is amended by adding at the end thereof the
following new paragraph:
‘‘(3) DURATION.—An award made by the Sec-
retary under this chapter to an eligible entity de-
scribed in paragraph (1) or (2) of subsection (c)
shall be for the period of 6 years.’’.
(B) The amendment made by subparagraph (A)
shall apply to awards made either before or after the
date of enactment of this Act.
(3) Section 407E (20 U.S.C. 1070a–35) is re-
designated as section 406E.
(4) Section 419C(b)(1) (20 U.S.C. 1070d–
33(b)(1)) is amended by inserting ‘‘and’’ after the
semicolon at the end thereof.
(5) Section 419D(d) (20 U.S.C. 1070d–34(d))
is amended by striking ‘‘Public Law 95–1134’’ and
inserting ‘‘Public Law 95–134’’.
(e) AMENDMENTS TO PART B OF TITLE IV.—
(1) 
Section 
428(a)(2)(A) 
(20 
U.S.C.
1078(a)(2)(A)) is amended—
(A) by striking ‘‘and’’ at the end of sub-
clause (II) of clause (i); and
(B) by moving the margin of clause (iii)
two ems to the left.
(2) 
Section 
428(b)(1)(G) 
(20 
U.S.C.
1078(b)(1)(G)) is amended by inserting before the
semicolon at the end the following: ‘‘and 100 percent
of exempt claims unders subsection (c)(1)(G)’’.
(3) Section 428(c) (20 U.S.C. 1078(c)) is
amended—
(A) in paragraph (1)—
(i) by redesignating subparagraph (G)
as subparagraph (H), and moving such
subparagraph 2 em spaces to the left; and
(ii) by inserting after subparagraph
(F) the following new subparagraph:
‘‘(G)(i) Notwithstanding any other provisions of
this section, in the case of exempt claims, the Sec-
retary shall apply the provisions of—
‘‘(I) the fourth sentence of subparagraph
(A) by substituting ‘100 percent’ for ‘95 per-
cent’;
‘‘(II) subparagraph (B)(i) by substituting
‘100 percent’ for ‘85 percent’; and
‘‘(III) subparagraph (B)(ii) by substituting
‘100 percent’ for ‘75 percent’.
‘‘(ii) For purposes of clause (i) of this subpara-
graph, the term ‘exempt claims’ means claims with
respect to loans for which the lender determines that
the borrower (or the student on whose behalf a par-
ent has borrowed), without the lender’s or the insti-
tution’s knowledge at the time the loan was made,
provided false or erroneous information or took ac-
tions that caused the borrower or the student to be
ineligible for all or a portion of the loan or for inter-
est benefits thereon.’’.
(B) in paragraph (3)(A)(i), by striking ‘‘in
writing’’; and
(C) by adding at the end the following new
paragraph:
‘‘(10) 
DOCUMENTATION
OF
FORBEARANCE
AGREEMENTS.—For the purposes of paragraph (3),
the terms of forbearance agreed to by the parties
shall be documented by confirming the agreement of
the borrower by notice from the lender, and by re-
cording the terms in the borrower’s file.’’.
(4) Section 428C(a)(3)(B) (20 U.S.C. 1078–
3(a)(3)(B)) is amended by adding at the end the fol-
lowing new clause:
‘‘(ii) Loans made under this section shall, to
the extent used to discharge loans made under this
title, be counted against the applicable limitations on
aggregate 
indebtedness 
contained 
in 
sections
425(a)(2), 
428(b)(1)(B), 
428H(d), 
455, 
and
464(a)(2)(B).’’.
(5) Section 428H(e) (20 U.S.C. 1078–8(e)) is
amended—
(A) by striking paragraph (6); and
(B) by redesignating paragraph (7) as
paragraph (6).
(6) Section 428I(g) (20 U.S.C. 1078–9(g)) is
amended by striking ‘‘Code,’’ and inserting ‘‘Code’’.
(7) 
Section 
432(m)(1)(B) 
(20 
U.S.C.
1082(m)(1)(B)) is amended—
(A) in clause (i), by inserting ‘‘and’’ after
the semicolon at the end; and
(B) in clause (ii), by striking ‘‘; and’’ and
inserting a period.
(8) Section 439(d) (20 U.S.C. 1087–2(d)) is
amended—
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) and
(5) as paragraphs (3) and (4), respectively.
(f) AMENDMENT TO PART D.—Section 457(a)(1) (20
U.S.C. 1087g(a)(1)) is amended by striking ‘‘431’’ and
inserting ‘‘437’’.
(g) AMENDMENTS TO PART E OF TITLE IV.—
(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C.
1087bb(g)(1)(E)(i)(I)) is amended by inserting
‘‘monthly’’ after ‘‘consecutive’’.
(2) 
Section 
464(c)(1)(D) 
(20 
U.S.C.
1087dd(c)(1)(D)) is amended by redesignating sub-
clauses (I) and (II) as clauses (i) and (ii), respec-
tively.
(3) Section 464(h)(1)(A) is amended—
(A) by inserting ‘‘, if practicable (as deter-
mined in accordance with regulations of the
Secretary),’’ after ‘‘the loan shall’’; and
(B) by inserting ‘‘, if such loan is consid-
ered 
rehabilitated,’’ 
after 
‘‘the 
Secretary)
shall’’.
(4) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2))
is amended—
(A) in subparagraph (A), by striking ‘‘sec-
tion 
111(c)’’ 
and 
inserting 
‘‘section
1113(a)(5)’’; and
(B) in subparagraph (C), by striking
‘‘With Disabilities’’ and inserting ‘‘with Disabil-
ities’’.
(5) Section 467(b) (20 U.S.C. 1087gg(b)) is
amended by striking ‘‘(5)(A), (5)(B)(i), or (6)’’ and
inserting ‘‘(4)(A), (4)(B), or (5)’’.
(6) Section 469(c) (20 U.S.C. 1087ii(c)) is
amended—
(A) by striking ‘‘sections 602(a)(1) and
672(1)’’ and inserting ‘‘sections 602(3) and
632(5)’’;
(B) by striking ‘‘qualified professional pro-
vider of early intervention services’’ and insert-
ing ‘‘early intervention services’’; and
(C) by striking ‘‘section 672(2)’’ and in-
serting ‘‘section 632(4)’’.
(h) AMENDMENTS TO PART F OF TITLE IV.—
(1) Section 478(h) (20 U.S.C. 1087rr(h)) is
amended—
(A) by striking ‘‘476(b)(4)(B),’’; and
(B) by striking ‘‘meals away from home,
apparel and upkeep, transportation, and house-
keeping services’’ and inserting ‘‘food away
from home, apparel, transportation, and house-
hold furnishings and operations’’.
(2) Section 479A(a) (20 U.S.C. 1087tt(a)) is
amended—
(A) by striking ‘‘(a) IN GENERAL.—’’ and
inserting the following:
‘‘(a) AUTHORITY TO MAKE ADJUSTMENTS.—
‘‘(1) 
ADJUSTMENTS
FOR
SPECIAL
CIR-
CUMSTANCES.—’’;
(B) by inserting before ‘‘Special cir-
cumstances may’’ the following:
‘‘(2) SPECIAL CIRCUMSTANCES DEFINED.—’’;
(C) by inserting ‘‘a student’s status as a
ward of the court at any time prior to attaining
18 years of age,’’ after ‘‘487,’’.
(D) by inserting before ‘‘Adequate docu-
mentation’’ the following:
‘‘(3) DOCUMENTATION AND USE OF SUPPLE-
MENTARY INFORMATION.—’’; and
(E) by inserting before ‘‘No student’’ the
following:
‘‘(4) FEES FOR SUPPLEMENTARY INFORMATION
PROHIBITED.—’’.
(i) AMENDMENTS TO PARTS G AND H OF TITLE
IV.—
(1) Section 483(d) (20 U.S.C. 1090(d)) is
amended by striking ‘‘that is authorized under sec-
tion 685(d)(2)(C)’’ and inserting ‘‘, or other appro-
priate provider of technical assistance and informa-
tion on postsecondary educational services, that is
supported under section 685’’.
(2) Section 484 (20 U.S.C. 1091) is amended—
(A) in subsection (a)(4), by striking ‘‘cer-
tification,,’’ and inserting ‘‘certification,’’;
(B) in subsection (b)(2)—
(i) in the matter preceding subpara-
graph (A), by striking ‘‘section 428A’’ and
inserting ‘‘section 428H’’;
(ii) in subparagraph (A), by inserting
‘‘and’’ after the semicolon at the end
thereof;
(iii) in subparagraph (B), by striking
‘‘; and’’ and inserting a period; and
(iv) by striking subparagraph (C); and
(C) in subsection (l)(1)(B)(i), by striking
‘‘section 521(4)(C) of the Carl D. Perkins Vo-
cational and Applied Technology Education
Act’’ and inserting ‘‘section 3(3)(C) of the Carl
D. Perkins Vocational and Technical Education
Act of 1998’’.
(3)(A) Section 484B (20 U.S.C. 1091b) is
amended—
(i) in subsection (a)(1), by inserting ‘‘sub-
part 4 of part A or’’ after ‘‘received under’’;
(ii) in subsection (a)(3)(B)(ii), by inserting
‘‘(as determined in accordance with subsection
(d))’’ after ‘‘student has completed’’;
(iii) in subsection (b)(2), by amending sub-
paragraph (C) to read as follows:
‘‘(C) GRANT
OVERPAYMENT
REQUIRE-
MENTS.—Notwithstanding subparagraphs (A)
and (B), a student shall only be required to re-
turn grant assistance in the amount (if any) by
which—
‘‘(i) the amount to be returned by the
student (as determined under subpara-
graphs (A) and (B)), exceeds
‘‘(ii) 50 percent of the total grant as-
sistance received by the student under this
title for the payment period or period of
enrollment.
A student shall not be required to return
amounts of $50 or less.’’; and
(iv) 
in 
subsection 
(d), 
by 
striking
‘‘(a)(3)(B)(i)’’ and inserting ‘‘(a)(3)(B)’’.
(B) The amendments made by subparagraph
(A) shall be effective for academic years beginning
on or after July 1, 2003, except that, in the case of
an institution of higher education that chooses to
implement such amendments prior to that date, such
amendments shall be effective on the date of such
institution’s implementation.
(4) Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is
amended by striking ‘‘mailings, and’’ and inserting
‘‘mailings, or’’.
(5) Section 485B(a) (20 U.S.C. 1092b(a)) is
amended—
(A) 
by 
redesignating 
paragraphs 
(6)
through (10) as paragraphs (7) through (11),
respectively;
(B) by redesignating the paragraph (5) (as
added by section 2008 of Public Law 101–239)
as paragraph (6); and
(C) in paragraph (5) (as added by section
204(3) of the National Community Service Act
of 1990 (Public Law 101–610))—
(i) by striking ‘‘(22 U.S.C. 2501 et
seq.)),’’ and inserting ‘‘(22 U.S.C. 2501 et
seq.),’’; and
(ii) by striking the period at the end
thereof and inserting a semicolon.
(6) Section 487(a) (20 U.S.C. 1094(a)) is
amended—
(A) in paragraph (22), by striking ‘‘refund
policy’’ and inserting ‘‘policy on the return of
title IV funds’’; and
(B) in paragraph (23)—
(i) by moving subparagraph (C) two
em spaces to the left; and
(ii) by adding after such subpara-
graph the following new subparagraph:
‘‘(D) An institution shall be considered in com-
pliance with the requirements of subparagraph (A)
for any student to whom the institution electroni-
cally transmits a message containing a voter reg-
istration form acceptable for use in the State in
which the institution is located, or an Internet ad-
dress where such a form can be downloaded, pro-
vided such information is in an electronic message
devoted to voter registration.’’.
(7) Section 491(c) (20 U.S.C. 1098(c)) is
amended by adding at the end the following new
paragraph:
‘‘(3) The appointment of members under subpara-
graphs (A) and (B) of paragraph (1) shall be effective
upon publication of the appointment in the Congressional
Record.’’.
(8) Section 493A (20 U.S.C. 1098c) is re-
pealed.
(9) 
Section 
498 
(20 
U.S.C. 
1099c) 
is
amended—
(A) in subsection (c)(2), by striking ‘‘for
profit,’’ and inserting ‘‘for-profit,’’;
(B) in subsection (d)(1)(B), by inserting
‘‘and’’ at the end thereof.
(j) AMENDMENTS TO TITLE V.—Section 504(a) (20
U.S.C. 1101c(a)) is amended—
(1) by striking ‘‘(1) IN GENERAL.—’’; and
(2) by striking paragraph (2).
(k) AMENDMENTS TO TITLE VII.—
(1) Section 714(c) (20 U.S.C. 1135c(c)) is
amended—
(A) by striking ‘‘section 716(a)’’ and in-
serting ‘‘section 715(a)’’; and
(B) by striking ‘‘section 714(b)(2)’’ and in-
serting ‘‘section 713(b)(2)’’.
(2) Section 721(c) (20 U.S.C. 1136(c)) is
amended—
(A) by striking ‘‘and’’ at the end of para-
graph (4);
(B) by striking the period at the end of
paragraph (5) and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
‘‘(6) to assist such students with the develop-
ment of analytical skills and study methods to en-
hance their success in entry into and completion of
law school; and
‘‘(7) to award Thurgood Marshall Fellowships
to eligible law school students—
‘‘(A) who participated in summer institutes
authorized by subsection (d) and who are en-
rolled in an accredited law school; or
‘‘(B) who are eligible law school students
who have successfully completed a comparable
summer institute program certified by the
Council on Legal Educational Opportunity.’’.
(l) AMENDMENT TO HIGHER EDUCATION AMEND-
MENTS OF 1998.—Section 422(d) of the Higher Edu-
cation Amendments of 1998 (Public Law 105–244; 112
Stat. 1696) is amended by striking ‘‘, and ending on Sep-
tember 30, 2002’’.
SEC. 3. CLERICAL AMENDMENTS.
(a) DEFINITION.—Section 103 (20 U.S.C. 1003) is
amended—
(1) by redesignating paragraphs (1) through
(16) as paragraphs (2) through (17), respectively;
and
(2) by inserting before paragraph (2) (as so re-
designated) the following new paragraph: