Higher Education Technical Amendments of 1993
PL 103-208 (S.1507), enacted 12/20/1993

PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2457 
Public Law 103-208 
103d Congress 
An Act 
To make certain technical and conforming amendments to the Higher Education 
Act of 1965. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the "Higher Edu-
cation Technical Amendments of 1993". 
(b) REFERENCES.—References in this Act to "the Act" are ref-
erences to the Higher Education Act of 1965. 
SEC. 2. TECHNICAL AMEJVDMENTS. 
(a) AMENDMENTS TO TITLES I, II, AND III OF THE ACT.—Titles 
I, II, and III of the Act (20 U.S.C. 1001 et seq., 1021 et seq., 
1051 et seq.) are amended— 
(1) in section 103(b)(2), bv increasing the indentation of 
subparagraphs (A) through (E) oy two em spaces; 
(2) in section 104(bX5)(C), by striking "subpart" and insert-
ing "part"; 
(3) in section 241(a)(2)(B), by striking "information service" 
and inserting "infoimation science"; 
(4) in section 301(aX2), by striking the conmia after "plan-
ning"; 
(5) in section 312(c)(2), by inserting "the" before "second 
fiscal year" the second place it appears; 
(6) in section 313(b), by inserting ", except that for the 
purpose of this subsection a grant under section 354(a)(1) shall 
not be considered a grant under this part" before the period. 
(7) in section 316(c), by striking "Such programs may 
include—" and inserting the following: 
"(2) EXAMPLES OF AUTHORIZED ACTIVITIES.—Such programs 
may include—"; 
(8) by reducing by two em spaces the indentation of each 
of the following provisions: sections 323(b)(3), 331(a)(2XD), and 
331(bX5); 
(9) in section 326(eX2)— 
(A) by inserting "and" after the semicolon at the end 
of subparagraph (A); 
(B) by strUcing subparagraph (B); and 
(C) by redesignating subparagraph (C) as subpara-
graph (B); 
(10) in section 331(b)(2), by reducing the indentation of 
subparagraphs (B) and (C) by four em spaces; and 
Dec. 20, 1993 
[S. 1507] 
Higher 
Education 
Technical 
Amendments 
of 1993. 
20 u s e 1001 
note. 
20 u s e 1003. 
20 u s e 1004. 
20 use 1047. 
20 use 1051. 
20 use 1058. 
20 u s e 1059. 
20 use 1059c. 
20 use 1062, 
1064. 
20 u s e 1063b. 
107 STAT. 2458 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 use 1064. 
(11) in section 331(b)(5), by striking "an endowment" and 
inserting "An endowment". 
(b) AMENDMENTS TO PART A OF TITLE IV OF THE ACT.—Part 
A of title IV of the Act (20 U.S.C. 1070 et seq.) is amended— 
20 use 1070. 
(1) in section 401(a)(1), by inserting ", except that this 
sentence shall not be construed to limit the authority of the 
Secretary to place an institution on a reimbursement system 
of pa3mient" before the period at the end of the second sentence; 
(2) in section 401(b)(6), in the matter preceding subpara-
graph (A), by striking "single 12-month period" and inserting 
"single award year"; 
(3) in section 401(b)(6)(A), by striking "a baccalaureate" 
and inserting "an associate or baccalaureate"; 
(4) in section 401(b)(6)(B), by striking "a bachelor's" and 
inserting "an associate or baccalaureate"; 
(5) in section 401(i), by striking "part D of title V" and 
inserting "subtitle D of title V"; 
f^rrV^^, 
(6) in section 402A(b), by striking paragraph (2) and insert-
I070a-ll. 
ing the following: 
"(2) DURATION.—Grants or contracts made imder this chap-
ter shall be awarded for a period of 4 years, except that— 
"(A) the Secretary shall award such grants or contracts 
for 5 years to applicants whose peer review scores were 
in the highest 10 percent of scores of all applicants receiv-
ing grants or contracts in each program competition for 
the same award year; and 
"(B) grants made under section 402G shall be awarded 
for a period of 2 years."; 
(7) in the second sentence of section 402A(c)(l), by inserting 
before the period the following ", except that in the case of 
the programs authorized in sections 402E and 402G, the level 
of consideration given to prior experience shall be the same 
as the level of consideration given this factor in the other 
programs authorized in this chapter"; 
(8) in section 402A(c)(2)(A), by inserting "with respect to 
grants made under section 402G, and" after "Except"; 
(9) in section 402A, by amending subsection (e) to read 
as follows: 
"(e) 
DOCUMENTATION OF STATUS AS A LOW-INCOME INDIVID-
UAL.—^1) Except in the case of an independent student, as defined 
in section 480(d), documentation of an individual's status pursuant 
to subsection (g)(2) shall be made by providing the Secretary with— 
"(A) a signed statement from the individual's parent or 
legal guardian; 
"(B) verification from another governmental source; 
"(C) a signed financial aid application; or 
"(D) a signed United States or Puerto Rico income tax 
return. 
"(2) In the case of an independent student, as defined in section 
480(d), documentation of an individual's status pursuant to sub-
section (g)(2) shall be made by providing the Secretary with— 
"(A) a signed statement from the individual; 
"(B) verification from another governmental source; 
"(C) a signed financial aid application; or 
"(D) a signed United States or Puerto Rico income tax 
return."; 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2459 
(10) in section 402C(c), by striking "and foreign" and insert-
ing "foreign"; 
(11) in section 402D(c)(2), by striking "either"; 
(12) in section 404A(1), by striking "mgh-school" and insert-
ing "high school"; 
(13) in section 404B(aXl>— 
(A) by striking "section 403C" and inserting "section 
404D"; and 
(B) by striking "section 403D" and inserting "section 
4040"; 
(14) in section 404B(aX2), by inserting "shall" after "para-
graph (1)"; 
(15) in section 404C(bX3XA), by striking "grades 12" and 
inserting "grade 12"; 
(16) in section 404C(bX3)(DXi), by striking "section 401D 
of this subpart" and inserting "section 402D"; 
(17) in section 404C(bX3XDXii), by striking "section 401D 
of this part" and inserting "section 402D"; 
(18) in section 404D(d)(3), by striking "program of instruc-
tion" and inserting "program of undergraduate instruction"; 
(19) in section 404D(aX4), by striking "the" the first place 
it appears; 
(20) in section 404E(c), by striking "tuition" £uid inserting 
"financial"; 
(21) in section 404F(a), by striking "under this section 
shall biannually" and inserting under this chapter shall bienni-
aUy"; 
(22) in section 404F(c), by striking "biannually" and insert-
ing "biennially"; 
(23) in section 404Gr— 
(A) by striking "an appropriation" and inserting "to 
be appropriated"; and 
(B) by striking the second sentence and inserting the 
following: "For any fiscal year for which funds are author-
ized to be appropriated to carry out subpart 4 of part 
A of this title, no amount may be expended to carry out 
the provisions of this chapter unless the amount appro-
priated for such fiscal year to carry out such subpart 4 
exceed $60,000,000."; 
(24) in section 409A(1), by striking "private financial" and 
inserting "private student financial"; 
(25) in section 413C(d)— 
(A) by striking ", a reasonable proportion of the institu-
tion's allocation shall be made available to such students, 
except that" and inserting "and"; and 
(B) by striking "5 percent of the need" and inserting 
"5 percent of the total financial need"; 
(26) in section 413D(dX3XC), by striking "three-fourths in 
the Pell Grant family size offset" and inserting "150 percent 
of the difference between the income protection allowance for 
a family of five with one in college and the income protection 
allowance for a family of six with one in college"; 
(27) in section 415C(bX7), by striking the period at the 
end £uid inserting a semicolon; 
(28) in section 419C(b)— 
(A) by striking "for a period of not more than 4 years 
for the first 4 years of studj^ and inserting "for a period 
20 use 
1070a-13. 
20 use 
1070a-14. 
20 use 
1070a-21. 
20 use 
1070a-22. 
20 use 
1070a-23. 
20 use 
1070a-24. 
20 use 
1070a-25. 
20 use 
1070a-26. 
20 use 
1070a-27. 
20 use 
1070a-51. 
20 u s e 1070b-2. 
20 u s e 1070b-3. 
20 u s e 1070C-2. 
20 use 
1070d-33. 
107 STAT. 2460 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 use 
1070d-34. 
20 use 
1070d-37. 
Loans. 
20 u s e 1072. 
20 u s e 1075. 
of not less than 1 or more than 4 years during the first 
4 years of study"; and 
(B) by adding at the end the following: 
'The State educational agency administering the program in a 
State shall have discretion to determine the period of the award 
(within the limits specified in the preceding sentence), except that— 
"(1) if the amount appropriated for this subpart for any 
fiscal year exceeds the amount appropriated for this subpart 
for fiscal year 1993, the Secretary shall identify to each State 
educational agency the number of scholarships available to 
that State under section 419D(b) that are attributable to such 
excess; 
"(2) the State educational agency shall award not less 
than that number of scholarships for a period of 4 years."; 
and 
(29) in section 419D, by adding at the end the following 
new subsection: 
"(d) CONSOLIDATION BY INSULAR AREAS PROHIBITED.—Notwith-
standing section 501 of PubUc Law 95-1134 (48 U.S.C. 1469a), 
funds eJlocated under this part to an Insular Area described in 
that section shall be deemed to be direct payments to classes 
of individuals, and the Insular Area may not consolidate such 
funds with other funds received by the Insular Area from any 
department or agency of the United States Grovemment."; and 
(30) in section 419(jr(b), by striking "the District of Colum-
bia, the Commonwealth of Puerto Rico," and inserting "the 
Federated States of Micronesia, the Repubhc of the Marshall 
Islands,". 
(c) AMENDMENTS TO PART B OF TITLE IV OF THE ACT.—Part 
B of title IV of the Act (20 U.S.C. 1071 et seq.) is amended— 
(1) in section 422(c)(7), by striking the semicolon at the 
end of subparagraph (B) gmd inserting a period; 
(2) in section 425(a)(1)(A)— 
(A) by striking clauses (ii) and (iii) and inserting the 
following: 
"(ii) in the case of a student at an eligible institution 
who has successfully completed such first year but has 
not successfully completed the remainder of a program 
of undergraduate education— 
"(I) $3,500; or 
"(II) if such student is enrolled in a program of 
undergraduate education, the remainder of which is 
, , 
less than one academic year, the maximum annual 
loan amount that such student may receive may not 
exceed the amount that bears the same ratio to the 
. , •, amount specified in subclause (I) as such remainder 
measured in semester, trimester, quarter, or clock 
hours bears to one academic year; 
"(iii) in the case of a student at an eligible institution 
who has successfully completed the first and second years 
of a program of undergraduate education but has not 
successfully completed the remainder of such program— 
"(I) $5,500; or 
"(II) if such student is enrolled in a program of 
undergraduate education, the remainder of which is 
less than one academic year, the maximum annual 
loan amoiuit that such student may receive may not 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2461 
exceed the amount that bears the same ratio to the 
amount specified in subclause (I) as such remainder 
measured in semester, trimester, quarter, or clock 
hours bears to one academic year;" and 
(B) by striking the semicolon at the end of clause 
(iv) and inserting a period; 
(3) in section 425(aXl), by inserting at the end thereof 
20 USC 1075. 
the following: 
"(C) For the purpose of subparagraph (A), the number 
of years that a student has completed in a program of under-
graduate education shall include any prior enrollment in an 
eUgible program of undergraduate education for which the stu-
dent was awarded an associate or baccalaureate degree, if 
such degree is required by the institution for admission to 
the program in which the student is enrolled."; 
(4) in the matter following subclause (II) of section 
427(a)(2XCXi), by inserting "section" before "428B or 428C"; 20 USC 1077. 
(5) in section 427A(eXl), by striking "under this part," 20USCi077a. 
and inserting "imder section 427, 428, or 428H of this part,"; 
(6) in section 427A(iXl), by amending subparagraph (B) 
to read as follows: 
"(BXi) during any period in which a student is eligible 
to have interest payments paid on his or her behalf by 
the Grovemment pursuant to section 428(a), by crediting 
the excess interest to the (Jovemment; or 
"(ii) during £uiy other period, by crediting such excess 
interest to the reduction of principal to the extent provided 
in paragraph (5) of this subsection."; 
(7) in section 427A(iX2XB>-
(A) by striking "outstanding principal balance" and 
inserting "average daily principal balance ; and 
(B) by striking "at the end of and inserting "during"; 
(8) in section 427A(i)(4)(B)— 
(A) by striking "outstanding principal balance" and 
inserting "average daily principal oalance; and 
(B) by striking "at the end oF and inserting "during"; 
(9) in section 427A(iX5)— 
(A) in the first sentence— 
(i) by striking "paragraph (2)" and inserting "para-
graphs (2) and (4)"; and 
(ii) by striking "principle" and inserting "principal"; 
and 
(B) in the second sentence by inserting before the 
period at the end the following: ", but the excess interest 
shall be calculated and credited to the Secretary"; 
(10) in section 427A(i), by adding at the end the following 
new paragraph: 
"(7) CONVERSION TO VARIABLE RATE.—(A) Subject to sub-
paragraphs (C) and (D), a lender or holder shall convert the 
interest rate on a loan that is made pursuant to this part 
and is subject to the provisions of this subsection to a variable 
rate. Such conversion shall occur not later than January 1, 
1995, and, commencing on the date of conversion, the applicable 
interest rate for each 12-month period beginning on July 1 
and ending on June 30 shall be determined by the Secretary 
on the June 1 preceding each such 12-month period and be 
equal to the sum of (i) the bond equivalent rate of the 91-
107 STAT. 2462 
PUBLIC LAW 103-208—DEC. 20, 1993 
day Treasury bills auctioned at the final auction prior to such 
June 1; and (ii) 3.25 percent in the case of loans described 
, 
in paragraph (1), or 3.10 percent in the case of loans described 
in paragraph (3). 
"(B) In connection with the conversion specified in subpara-
graph (A) for any period prior to such conversion, and subject 
: :>''j 
, to paragraphs (C) and (D), a lender or holder shall convert 
the interest rate to a variable rate on a loan that is made 
pursuant to this part and is subject to the provisions of this 
subsection to a variable rate. The interest rates for such period 
shall be reset on a quarterly basis and the applicable interest 
rate for any quarter or portion thereof shall eaual the sum 
of (i) the average of the bond equivalent rates of 91-Treasury 
bills auctioned for the preceding 3-month period, and (ii) 3.25 
percent in the case of loans described in paragraph (1) or 
3.10 percent in the case of loans described in paragraph (3). 
The rebate of excess interest derived through tnis conversion 
shall be provided to the borrower as specified in paragraph 
(5) for loans described in paragraph (1) or to the Grovemment 
and borrower as specified in paragraph (3). 
"(C) A lender or holder of a loan being converted pursuant 
to this paragraph shall complete such conversion on or before 
January 1, 1995. The lender or holder shall notify the borrower 
<
;
. that the loan shall be converted to a variable interest rate 
and provide a description of the rate to the borrower not later 
than 30 days prior to the conversion. The notice shall advise 
the borrower that such rate shall be calculated in accordance 
with the procedures set forth in this paragraph and shall pro-
vide the borrower with a substantially equivalent benefit as 
a 
the adjustment otherwise provided for under this subsection. 
Such notice may be incorporated into the disclosure required 
under section 433(b) if such disclosure has not been previously 
made. 
"(D) The interest rate on a loan converted to a variable 
rate pursuant to this paragraph shall not exceed the maximum 
interest rate applicable to the loan prior to such conversion. 
"(E) Loans on which the interest rate is converted in accord-
ance with subparagraph (A) or (B) shall not be subject to 
any other provisions of this subsection."; 
20 use 1078. 
(11) in section 428(a)(2)(C)(i), by striking the period at 
the end and inserting "; and"; 
(12) in section 428(a)(2)(E), by inserting "or 428H" afl;er 
^ "428A"; 
(13) in section 428(b)(1)(A)— 
(A) by striking clauses (ii) and (iii) and inserting the 
I 
following: 
"(ii) in the case of a student at an eligible institu-
tion who has successfully completed such first year 
but has not successfully completed the remainder of 
a program of undergraduate education— 
"(I) $3,500; or 
"(II) if such student is enrolled in a program 
of undergraduate education, the remainder of 
which is less than one academic year, the maxi-
mum annual loan amount that such student may 
receive may not exceed the amount that bears 
the same ratio to the amount specified in subclause 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2463 
(I) as such remainder measured in semester, tri-
mester, quarter, or clock hours bears to one aca-
demic year; 
**(iii) in the case of a student at an eligible institu-
tion who has successfully completed the first and sec-
ond years of a program of undergraduate education 
but has not successfully completed the remainder of 
such program— 
"(I) $5,500; or 
"(II) if such student is enrolled in a program 
of undergraduate education, the remainder of 
which is less than one academic year, the maxi-
mum annual loan amount that such student may 
receive may not exceed the amount that bears 
the same ratio to the amount specified in subclause 
(I) as such remainder measured in semester, tri-
mester, quarter, or clock hours bears to one aca-
demic year;"; 
(B) by redesignating clause (iv) as clause (v); and 
(C) by inserting after clause (iii) the following: 
(iv) in the case of a student who has received 
an associate or baccalaureate degree and is enrolled 
in an eligible program for wWch the institution 
requires such degree for admission, the number of 
years that a student has completed in a program of 
undergraduate education shall, for the purposes of 
clauses (ii) and (iii), include any prior enrollment in 
the eUgible program of undergraduate education for 
which the student was awarded such degree; and"; 
(14) in section 428(b)(1)(B), by striking the matter following 20 use 1078. 
clause (ii) and inserting the following: 
"except that the Secretary may increase the limit m)plicable 
to students who are pursuing programs which the Secretary 
determines are exceptionally expensive;"; 
(15) in section 428(b)(1), by amending subparagraph (N) 
to read as follows: 
"(N) provides that fimds borrowed by a student— 
"(i) are disbursed to the institution by check or 
other means that is payable to, and requires the 
endorsement or other certification by, such student; 
or 
"(ii) in the case of a student who is studying out-
side the United States in a program of study abroad 
that is approved for credit oy the home institution 
at which such student is enrolled or at an eligible 
foreign institution, are, at the request of the student, 
disbursed directly to the student by the means 
described in clause (i), unless such student requests 
that the check be endorsed, or the funds transfer 
authorized, pursuant to an authorized power-of-attor-
ney;"; 
(16) in section 428(b)(lXU)— 
(A) by striking "this clause;" and inserting "this clause"; 
and 
(B) by inserting a comma after "emergency action" 
each place it appears; 
(17) in section 428(bXl>— 
107 STAT. 2464 
PUBLIC LAW 103-208—DEC. 20, 1993 
(A) by striking subparagraphs (V) and (W); and 
(B) by redesignating subparagraphs (X), (Y), and (Z) 
as subparagraphs (V), (W), and (X), respectively; 
20 use 1078. 
(18) in section 428(b)(2)(F)(i), by striking "each to provide 
a separate notice" and inserting "either jointly or separately 
to provide a notice"; 
(19) in section 428(b)(2XF)(ii), by striking "transferor" and 
inserting "transferee"; 
(20) in section 428(b)(2)(F)(ii)(I), by striking "to another 
holder"; 
(21) in section 428(b)(2)(F)(ii)(II), by striking "such other" 
and inserting "the new"; 
(22) in section 428(b), by amending paragraph (7) to read 
as follows: 
"(7) REPAYMENT PERIOD.—(A) In the case of a loan made 
under section 427 or 428, the repa3nment period shall exclude 
any period of authorized deferment or forbearance and shall 
begin— 
"(i) the day after 6 months after the date the student 
ceases to carry at least one-half the normal full-time aca-
demic workload (as determined by the institution); or 
"(ii) on an earlier date if the borrower requests and 
is granted a repayment schedule that provides for repay-
ment to commence at an earlier date. 
"(B) In the case of a loan made under section 428H, the 
repa)nnent period shall exclude any period of authorized 
deferment or forbearance, and shall begin as described in clause 
(i) or (ii) of subparagraph (A), but interest shall begin to accrue 
or be paid by the borrower on the day the loan is disbursed. 
"(C) In the case of a loan made under section 428A, 428B, 
or 428C, the repajmient period shall begin on the day the 
loan is disbursed, or, if the loan is disbursed in multiple install-
ments, on the day of the last such disbursement, and shedl 
exclude any period of authorized deferment or forbearance."; 
(23) in section 428(b), by adding at the end thereof the 
following new paragraph: 
"(8) MEANS OF DISBURSEMENT OF LOAN PROCEEDS.^Nothing 
in this title shall be interpreted to prohibit the disbursement 
of loan proceeds by means other than by check or to allow 
the Secretary to require checks to be made co-payable to the 
institution and the borrower."; 
(24) in section 428(c)(1)(A), by striking the last sentence 
and inserting the following: "A guarantv agency shall file a 
claim for reimbursement with respect to losses under this sub-
section within 45 days after the guaranty agency? discharges 
its insurance obligation on the loan. ; 
(25) in section 428(c)(2)(G), by striking "demonstrates" and 
inserting "certifies"; 
(26) in section 428(c)(3) by striking subparagraph (A) and 
inserting the following: 
"(A) shall contain provisions providing that— 
"(i) upon written request, a lender shall grant a 
borrower forbearance, renewable at 12-month inter-
vals, on terms agreed to in writing by the parties 
to the loan with the approval of the insurer, and other-
wise consistent with the regulations of the Secretary, 
if the borrower— 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2465 
"(I) is serving in a medical or dental internship 
or residency program, the successful completion 
of which is required to begin professional practice 
or service, or is serving in a medical or dental 
internship or residency program leading to a 
degree or certificate awarded by an institution of 
higher education, a hospital, or a health care facil-
ity that offers postgraduate training, provided that 
if the borrower quahfies for a deferment under 
section 427(a)(2)(C)(vii) or subsection (b)(l)(M)(vii) 
of this section as in effect prior to the enactment 
of the Higher Education Amendments of 1992, or 
section 427(a)(2)(C) or subsection (b)(l)(M) of this 
section as amended by such amendments, the bor-
rower has exhausted his or her eUgibility for such 
deferment; 
"(II) has a debt burden under this title that 
equals or exceeds 20 percent of income; or 
"(III) is serving in a national service position 
for which the borrower receives a national service 
educ£itional 
award 
under 
the 
National 
and 
Community Service Trust Act of 1993; 
"(ii) the length of the forbearance granted by the 
lender— 
"(I) under clause (i)(I) shall equal the length 
of time remaining in the borrower's medical or 
dental internship or residency program, if the bor-
rower is not eligible to receive a 
deferment 
described in such clause, or such length of time 
remaining in the program after the borrower has 
exhausted 
the borrower's eligibility for 
such 
deferment; 
"(II) imder clause (i)(II) shall not exceed 3 
years; or 
"(III) under clause (i)(III) shall not exceed the 
period for which the borrower is serving in a posi-
tion described in such clause; and 
"(iii) no administrative or other fee may be charged 
in connection with the granting of a forbearance under 
clause (i), and no adverse information regarding a bor-
rower may be reported to a credit bureau organization 
solely because of the granting of such forbearance;"; 
(27) in section 428(eX2)(A)— 
20 use 1078. 
(A) by striking "(i)"; 
(B) by striking "(I)" and inserting "(i)"; and 
(C) by striking "(II)" and inserting "(ii)"; 
(28) in section 428(j)(2), in the matter preceding subpara-
graph (A), by striking "lender of last resort" and inserting 
**lGii.{iGr~of~lfl.st~rGsoi*t''* 
(29) in section 428A(b)(l), by striking subparagraph (B) 20 USC 1078-1. 
and inse^-ting the following: 
"(B) In the case of a student at an eligible institution 
who has successfully completed such first and second years 
but has not successfully completed the remainder of a 
program of undergraduate education— 
"(i) $5,000; or 
107 STAT. 2466 
PUBLIC LAW 103-208—DEC. 20, 1993 
"(ii) if such student is enrolled in a program of 
undergraduate education, the remainder of which is 
less than one academic year, the maximum annual 
loan amount that such student may receive may not 
exceed the amount that bears the same ratio to the 
amount specified in subclause (I) as such remainder 
measured in semester, trimester, quarter, or clock 
hours bears to one academic year."; 
20 use 1078-1. 
(30) in section 428A(b)(l)— 
(A) by redesignating subparagraph (C) as subpara-
graph (D); and 
(B) by inserting after subparagraph (B) the following 
new subparagraph: 
"(C) For the purposes of this paragraph, the number 
of years that a student has completed in a program of 
undergraduate education shall include any prior enrollment 
in an eligible program of undergraduate education for 
which the student was awarded an associate or bacca-
laureate degree, if such degree is required by the institution 
for admission to the program in which the student is 
enrolled."; 
(31) in section 428A(b)(3)(B)(i), by striking "section 428" 
and inserting "sections 428 and 428H"; 
(32) in section 428A(c)(l), by striking "sections 427 or 
428(b)" and inserting "section 427 or 428(b)"; 
20 use 1078-3. 
(33) in section 428C(a)(3)(A), by striking "delinquent or 
defaulted borrower who will reenter repajnnent through loan 
consolidation" and inserting "defaulted borrower who has made 
arrangements to repay the obligation on the defaulted loans 
satisfactory to the holders of the defaulted loans"; 
(34) in section 428C(a)(4)(A), by striking ", except for loans 
made to parent borrowers under section 428B as in effect 
prior to the enactment of the Higher Education Amendments 
of 1986"; 
(35) in section 428C(a)(4)(C), by striking "part C" and 
inserting "part A"; 
(36) in section 428C(c)(2)(A)(vi), by inserting a period after 
"30 years"; 
(37) in section 428C(c)(3)(A), by inserting "be an amount" 
before "equal to"; 
20 use 1078-6. 
(38) in section 428F(a)(2)— 
(A) by striking "this paragraph" and inserting "para-
graph (1) of this subsection"; and 
(B) by striking "this section" and inserting "this sub-
section"; 
(39) in section 428F(a)(4), by striking "this paragraph" 
and inserting "paragraph (1) of this subsection"; 
(40) in section 428F(l3), by adding at the end thereof the 
following new sentence: "A borrower may only obtain the benefit 
of this subsection with respect to renewed eligibility once."; 
20 use 1078-7. 
(41) in section 428G(c)(3), by striking "disbursed" and 
inserting "disbursed by the lender"; 
20 use 1078-8. 
(42) in section 428H(d)(2), by amending subparagraph (B) 
to read as follows: 
"(B) in the case of a student at an eligible institution 
who has successfully completed such first and second years 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2467 
but has not successfully completed the remainder of a 
program of undergraduate education— 
"(i) $5,000; or 
"(ii) if such student is enrolled in a program of 
undergraduate education, the remainder of which is 
less than one academic year, the maximum annual 
loan amount that such student may receive may not 
exceed the amoimt that bears the same ratio to the 
amount specified in subclause (I) as such remainder 
measured in semester, trimester, quarter, or clock 
hours bears to one academic ye£ir;"; 
(43) in section 428H(e)(l>— 
20 USC 1078-8. 
(A) by striking "shall commence 6 months after the 
month in which the student ceases to carry at least one-
half the normal full-time workload as determined by the 
institution." and inserting "shall begin at the beginning 
of the repa3nnent period described in section 428(b)(7)."; 
(B) by adding at the end thereof the following new 
sentence: "Not less than 30 days prior to the anticipated 
commencement of such repayment period, the holder of 
such loan shall provide notice to the borrower that interest 
will accrue before repayment begins and of the borrower's 
option to begin loan repajnnent at an earlier date."; 
(44) in section 428H(e)(4), by striking "427A(e)" and insert-
ing "427A"; 
(45) in section 428H, by redesignating subsection (1) as 
subsection (h); 
(46) in section 4281(g), by striking "the Federal False 
20 USC 1078-9. 
Claims Act" and inserting "section 3729 of title 31, United 
States Code,"; 
(47) in section 428J(b)(l), by striking "sections 428A, 428B, 
20 USC 1078-10. 
or 428C" and inserting "section 428A, 428B, or 428C"; 
(48) in section 428J(b)(l)(B), by striking "agrees in writing 
to volunteer for service" and inserting "serves as a full-time 
volunteer"; 
(49) in section 428J(c)(l), by striking "academic year" each 
place it appears and inserting "year of service"; 
(50) in the heading for section 428J(d), by striking "OF 
ELIGIBILITY" and inserting "TO ELIGIBLE"; 
(51) in section 428J, by amending subsection (e) to read 
as follows: 
"(e) APPLICATION FOR REPAYMENT.— 
"(1) IN GENERAL.—Each eligible individual desiring loan 
repayment under this section shall submit a complete and 
accurate application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may 
reasonably require. Loan repayment under this section shall 
be on a first-come, first-served basis and subject to the availabil-
ity of appropriations. 
"(2) CONDITIONS.—^An eligible individual may apply for 
repayment after completing each year of qualifying service. 
The borrower shall receive forbearance while engaged in 
qualifying service unless the borrower is in deferment while 
so engaged."; 
(52) in section 430A(f)(l), by striking the comma at the 
20 USC 1080a. 
end and inserting a semicolon; 
107 STAT. 2468 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 use 1083. 
(53) in the matter preceding paragraph (1) of section 433(b), 
by striking "60 days" and inserting "30 days"; 
(54) in section 433(e), by striking "section 428A, 428B," 
and inserting "sections 428A, 428B,"; 
20 use 1085. 
^ 
(55) in section 435(a), by inserting after paragraph (2) 
the following new paragraph: 
"(3) APPEALS BASED UPON ALLEGATIONS OF IMPROPER LOAN 
SERVICING.—^An institution that— 
"(A) is subject to loss of eligibility for the Federal 
Family Education Loan Program pursuant to paragraph 
(2)(A) of this subsection; 
"(B) is subject to loss of eligibility for the Federal 
Supplemental Loans for Students pursuant to section 
428A(a)(2); or 
,• 
"(C) is an institution whose cohort default rate equals 
or exceeds 20 percent for the most recent year for which 
data are available; 
may include in its appeal of such loss or rate a defense based 
on improper loan servicing (in addition, to other defenses). In 
any such appeal, the Secretary shall take whatever steps are 
necessary to ensure that such institution has access to a rep-
resentative sample (as determined by the Secretary) of the 
relevant loan servicing and collection records of the afTected 
guaranty agencies and loan servicers for a reasonable period 
of time, not to exceed 30 days. The Secretary shall reduce 
the institution's cohort default rate to reflect the percentage 
of defaulted loans in the representative sample that are 
required to be excluded pursuant to subsection (m)(l)(B)."; 
(56) in section 435(d)(2XD), by striking "lender; and" and 
inserting "lender;"; 
(57) in section 435(d)(2), by increasing the indentation of 
the matter following subparagraph (F) by two em spaces; 
(58) in section 435(d)(3), by striking "435(o)" and inserting 
"435(m)"; 
(59) in section 435(m)(l)(A), by striking "428 or 428A" 
and inserting "428, 428A, or 428H,"; 
(60) in section 435(m)— 
(A) by inserting at the end of paragraph (1)(A) the 
following new sentence: 'The Secretary shall require that 
each guaranty agency that has insured loans for current 
or former students of the institution afford such institution 
a reasonable opportunity (as specified by the Secretary) 
to review and correct errors in the information required 
to be provided to the Secretary by the guaranty agency 
for the purposes of calculating a cohort default rate for 
such institution, prior to the calculation of such rate."; 
(B) in paragraph (1)(B), by striking "and, in calculat-
ing" and all that follows through the period at the end 
thereof and inserting the following: "and, in considering 
appeals with respect to cohort default rates pursuant to 
subsection (a)(3), exclude any loans which, due to improper 
servicing or collection, would, as demonstrated by the evi-
dence submitted in support of the institution's timely 
appeal to the Secretary, result in an inaccurate or incom-
plete calculation of such cohort default rate."; 
(61) in section 435(mX2)(D)— 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2469 
(A) by inserting "(or the portion of a loan made under 
section 4280 that is used to repay a loan made under 
section 428Ar after "section 428A'' the first place it 
appears; and 
(B) by inserting "(or a loan made under section 428C 
a portion of which is used to repay a loan made imder 
section 428A)'' after "section 428A*' the second place it 
appears; 
(62) in section 435(m), by adding at the end thereof the 
following new paragraph: 
"(4) 
COLLECTION AND REPORTING OF COHORT DEFAULT 
RATES.—(A) The Secretary shall collect data from all insurers Publication. 
under this part and shall publish not less often than once 
every fiscal year a report showing default data for each category 
of institution, including (i) 4-year public institutions, (ii) 4-
year private institutions, (iii) 2-year public institutions, (iv) 
2-year private institutions, (v) 4-year proprietary institutions, 
(vi) 2-year proprietary institutions, and (vii) less than 2-year 
proprietary institutions. 
"(B) The 
Secretary 
may 
designate 
such 
additional 
subcategories within the categories specified in subparagraph 
(A) as the Secretary deems appropriate. 
"(C) The Secretary shall publish not less often than once 
every fiscal year a report showing default data for each institu-
tion for which a cohort default rate is calculated under this 
subsection."; 
(63) in section 437, by amending subsection (b) to read 20USC1087. 
as follows: 
"(b) PAYMENT OF CLAIMS ON LOANS IN BANKRUPTCY.—^The Sec-
retary shall pay to the holder of a loan described in section 428(a)(1) 
(A) or (B), 428A, 428B, 428C, or 428H, the amoimt of the unpaid 
balance of principal and interest owed on such loan— 
"(1) when the borrower files for relief under chapter 12 
or 13 of title 11, United States Code; 
"(2) when the borrower who has filed for relief under chap-
ter 7 or 11 of such title commences an action for a determination 
of dischargeability under section 523(a)(8)(B) of such title; or 
"(3) for loans described in section 523(a)(8)(A) of such title, 
when the borrower files for rehef under chapter 7 or 11 of 
such title."; 
(64) in section 437(cXl)— 
(A) by striking "If a student borrower" auid inserting 
"If a borrower"; 
(B) by striking "imder this part is unable" and inserting 
"under this part and the student borrower, or the student 
on whose behalf a parent borrowed, is unable"; and 
(C) by striking "in which the borrower is enrolled" 
and inserting "in which such student is enrolled"; and 
(65) in section 437(cX4), by adding at the end the following 
new sentence: "The amount discharged under this subsection 
shall be treated the same as loans under section 465(a)(5) 
of this title."; 
(66) in the matter preceding paragraph (1) of section 
437A(a), by striking "under subsection (d)"; 
20 USC 1087-0. 
(67) in section 437A(cX2), by inserting a period at the 
end; 
(68) in section 437A, by striking subsection (e); and 
107 STAT. 2470 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 use 1087-2. 
(69) in section 439(rX12), by striking "section 522" and 
inserting "section 552". 
(d) AMENDMENT TO PART C OF TITLE IV OF THE ACT.—Part 
C of title IV of the Act (42 U.S.C. 2751 et seq.) is amended— 
42 use 2752. 
(1) in section 442(dX4XC), by striking nhree-fourths in 
the Pell Grant family size offset" and inserting "150 percent 
, of the difference between the income protection allowance for 
a family of five with one in college and the income protection 
aUowance for a family of six with one in college"; 
(2) in section 442(e)^— 
(A) by inserting "(1)" before "IT; and 
(B) by adding at the end the following new parajgraph: 
"(2) If, under paragraph (1) of this subsection, an institution 
returns more than 10 percent of its allocation, the institution's 
allocation for the next fiscal year shall be reduced by the amount 
returned. The Secretary may waive this para^aph for a specific 
institution if the Secretary finds that enforcmg this pars^aph 
would be contrary to the interest of the program."; 
42 use 2753. 
(3) in section 443(bX2XA), by striking "institution;" and 
inserting "institution; and"; 
(4) m section 443(b), by amending paragraph (5) to read 
as follows: 
"(5) provide that the Federal share of the compensation 
of students employed in the work-study program in accordance 
with the agreement shall not exceed 75 percent for academic 
year 1993-1994 and succeeding academic years, except that 
the Federal share may exceed such amounts of compensation 
if the Secretary determines, pursuant to regulations promul-
gated by the Secretary establishing objective criteria for such 
determinations, that a Federal share in excess of such amounts 
is required in furtherance of the purpose of this part;"; £uid 
(5) in section 443(bX8), by striking subparagraphs (A), (B), 
and (C) and inserting the following: 
"(A) that are only on campus and that— 
"(i) to the maximum extent practicable, com-
plement and reinforce the education programs or voca-
tional goals of such students; and 
"(ii) furnish student services that are directly 
related to the student's education, as determined by 
the Secretary pursuant to regulations, except that no 
student shall be employed in any position that would 
involve the solicitation of other potential students to 
enroll in the school; or 
"(B) in community service in accordance with para-
graph (2XA) of this subsection;". 
(e) AMENDMENT TO PART D OF TITLE IV OF THE ACT.—Section 
453(bX2XB) of the Act (20 U.S.C. 1087c(bX2XB)) is amended to 
read as follows: 
"(B) if the Secretary determines it necessary in order 
to carry out the purposes of subparagraph (A) and attain 
such reasonable representation (as required by subpara-
graph (A)), selecting additional institutions.". 
(f) AMENDMENTS TO PART E OF TITLE IV OF THE ACT.—Part 
E of title IV of the Act (20 U.S.C. 1087aa et seq.) is amended— 
20 use lOSTbb. 
(1) in subsections (aXD and (aX2XD) of section 462, by 
striking "if the institution which has" each place it appears 
and inserting "if the institution has"; 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2471 
(2) in section 462(d)(4XC), by striking "three-fourths in 20USCl087bb. 
the Pell Grant family size ofiTset" and inserting "150 percent 
of the difference between the income protection allowance for 
a family of five with one in college and the income protection 
£dlowance for a family of six with one in college"; 
(3) in section 462(e), by reducing the indentation of para-
graph (2) by two em spaces; 
(4) in section 462(hX4), by reducing the Indentation of 
subparagraph (B) by two em spaces; 
(5) in section 463(a)(2)(BXi)(II), by striking "7.5 percent" 20 use I087cc. 
and inserting "7.5 percent for award year 1993-1994 and has 
a cohort derault rate which does not exceed 15 percent for 
award year 1994-1995 or for any succeeding award year"; 
(6) in section 463(c)(4), by striking "shall disclose" and 
inserting "shall disclose at least annually^; 
(7) in section 463, by adding at the end the following 
new subsections: 
"(d) LIMITATION ON USE OF INTEREST BEARING ACCOUNTS.— 
In carrying out the provisions of subsection (a)(10), the Secretary 
may not require that any collection agency, collection attorney, 
or loan servicer collecting loans made under this part deposit 
amounts collected on such loans in interest bearing accoiuits, unless 
such agency, attorney, or servicer holds such amounts for more 
than 45 days. 
"(e) SPECIAL DUE DILIGENCE RULE.—In carrying out the provi-
sions of subsection (a)(5) relating to due diligence, the Secretary 
shall make every effort to ensure that institutions of higher edu-
cation may use Internal Revenue Service skip-tracing collection 
procedures on loans made under this part."; 
(8) in section 463A, by striking subsections (d) and (e); 
(9) in section 464(c)(2XB) by striking "repayment or" and 
inserting "repayment of; 
(10) in section 464(cX6), by striking "Fullbright" and insert-
ing "Fulbright"; 
(11) in section 464(e), by striking "principle" and inserting 
"principal"; 
(12) in section 465(aX2XD), by striking "services" and 20USCl087ee. 
inserting "service"; 
(13) in section 465(a)(2XF), by striking "or" after the semi-
colon; 
(14) in section 465(a), by reducing the indentation of para-
graph (6) by 2 em spaces; and 
(15) in section 466(c), by reducing the indentation of para- 20 use I087ff. 
graph (2) by two em spaces. 
(g) AMENDMENTS TO PART F OF TITLE IV OF THE ACT.—Part 
F of title IV of the Act (20 U.S.C. 1087kk et seq.) is amended— 
(1) in section 472— 
20 usc 1087//. 
(A) in paragraph (10), by striking "and" after the semi-
colon; 
(B) in paragraph (11), by striking the period and insert-
ing "; and"; and 
(C) by adding at the end the following new paragraph: 
"(12) for a student who receives a loan under this or any 
other Federal law, or, at the option of the institution, a conven-
tional student loan incurred by the student to cover a student's 
cost of attendance at the institution, an allowance for the 
actual cost of any loan fee, origination fee, or insurance pre-
20 use 
1087CC-1. 
20 u s e 1087dd. 
107 STAT. 2472 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 u s e 1087OO, 
1087qq. 
20 use 1087pp. 
20 u s e 1087rr. 
20 u s e 1087SS. 
mium charged to such student or such parent on such loan, 
or the average cost of any such fee or premium charged by 
the Secretary, lender, or guaranty agency making or insuring 
such loan, as the case may be."; 
(2) in the table contained in sections 475(cX4) and 477(bX4), 
by inserting "$" before "9,510"; 
(3) in section 475(fX3)— 
(A) by striking "Income in the case of a parent" and 
inserting "If a parent"; 
(B) by striking "(1) of this subsection, or a parent" 
and inserting "(1) of this subsection, or if a parent"; and 
(C) by striking "is determined as follows: The income" 
and inserting "the income"; 
(4) in section 475(gXlXB), by inserting a close parentheses 
after "paragraph (2)"; 
(5) in the table contained in section 475(gX3), by adding 
a last row that is identical to the last row of the table contained 
in section 476(bX2); 
(6) in section 476, by adding at the end thereof the following 
new subsection: 
"(d) 
COMPUTATIONS IN CASE OF SEPARATION, DIVORCE, OR 
DEATH.—In the case of a student who is divorced or separated, 
or whose spouse has died, the spouse's income and assets shall 
not be considered in determining the family's contribution from 
income or assets."; 
(7) in section 477 by adding at the end thereof the following 
new subsection: 
"(e) 
COMPUTATIONS IN CASE OF SEPARATION, DIVORCE, OR 
DEATH.—^In the case of a student who is divorced or separated, 
or whose spouse has died, the spouse's income and assets shall 
not be considered in determining the familjr's available income 
or assets."; 
(8) in section 478— 
(A) by striking "1992-1993" each place it appears and 
inserting "1993-1994"; and 
(B) in subsection (c)(1), by inserting "December" before 
"1992"; 
(9) in section 478(h), by striking "Bureau of Labor Stand-
ards" and inserting "Bureau of Labor Statistics"; 
(10) in section 479(aXl), by inserting "oP after "(c)"; 
(11) in section 479(bXlXB)(i)— 
(A) by inserting "(and the student's spouse, if any)" 
after "student" each time it appears; and 
(B) by striking "such"; 
(12) in section 479(bX2), by striking "five elements" and 
inserting "six elements"; 
(13) in section 479(b)(2)(E), by striking the semicolon and 
inserting a comma; 
(14) in section 479(b)(3>-
(A) in subparagraph (A), by inserting "(including any 
prepared or electronic version of such form)" before 
"required"; and 
(B) in subparagraph (B), by inserting "(including any 
prepared or electronic version of such return)" before 
"required"; 
(15) in section 479(c)— 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2473 
(A) by amending subparagraph (A) of paragraph (1) 
to read as follows: 
"(A) the student's parents were not required to file 
an income tax return under section 6012(aXl) of the 
Internal Revenue Code of 1986; and"; 
(B) by amending subparagraph (A) of paragraph (2) 
to read as follows: 
"(A) the student (and the student's spouse, if any) 
was not required to file an income tax return under section 
6012(aXl) of the Internal Revenue Code of 1986; and"; 
and 
(C) in subparagraph (B) of paragraphs (1) and (2), 
by inserting "in 1992 or the current year, whichever is 
higher," after "that may be earned"; and 
(16) in section 479A, by adding at the end the following 
20 use I087tt. 
new subsection: 
"(c) ADJUSTMENTS FOR SPECIAL CIRCUMSTANCES.— 
"(1) IN GENERAL.—A student financial aid administrator 
shall be considered to be making an adjustment for special 
circumstances in accordance with subsection (a) if— 
"(A) in the case of a dependent student— 
"(i) such student received a Federal Pell Grant 
as a dependent student in academic year 1992-1993 
and the amount of such student's Federal Pell Grant 
for academic year 1993-1994 is at least $500 less than 
the amount of such student's Federal Pell Grant for 
academic year 1992-1993; and 
"(ii) the decrease described in clause (i) is the 
direct result of a change in the determination of such 
student's need for assistance in accordance with this 
part that is attributable to the enactment of the Higher 
Education Amendments of 1992; and 
"(B) in the case of a single independent student— 
"(i) such student received a Federal Pell Grant 
as a single independent student in academic year 
1992-1993 and qualified as an independent student 
in accordance with section 480(d) for academic year 
1993-1994, and the amount of such student's Federal 
Pell Grant for academic year 1993-1994 is at least 
$500 less than the amount of such student's Federal 
Pell Grant for academic year 1992-1993; and 
"(ii) the decrease described in clause (i) is the 
direct result of a change in the determination of such 
student's need for assistance in accordance with this 
part that is attributable to the enactment of the Higher 
Education Amendments of 1992. 
"(2) AMOUNT.—^A financial aid administrator shall not make 
an adjustment for special circumstances pursuant to this sub-
section in an amount that exceeds one-half of the difiierence 
between the amount of a student's Federal Pell Grant for 
academic year 1992-1993 and the amoimt of such student's 
Federal Pell Grant for academic year 1993-1994. 
"(3) ACADEMIC YEAR LIMITATION.—A financial aid adminis-
trator shall make adjustments under this subsection only for 
Federal Pell Grants awarded for academic years 1993-1994, 
1994-1995, and 1995-1996. 
107 STAT. 2474 
PUBLIC LAW 103-208—DEC. 20, 1993 
"(4) SPECIAL RULE.—Adjustments under this subsection 
shall be made in any fiscal year only if an Act that contains 
an appropriation for such fiscal year to carry out this subsection 
is enacted on or after the date of enactment of the Higher 
Education Technical Amendments of 1993. 
"(5) LIMITATION.—^Adjustments under this subsection shall 
not be available for any academic year to any student who, 
on the basis of the financial circumstances of the student for 
the current academic year, would not have been eligible for 
a grant under this section in academic year 1992-1993. , 
20 use 1087W. 
(17) in section 480(c)(2), by striking "Title" each place it 
appears and inserting "United States Code, title"; 
(18) in section 480(d)(2), by inserting "or was a ward of 
the court until the individual reached the age of 18" before 
the semicolon; 
(19) in section 480(j), by reducing the indentation of para-
graph (3) by 2 em spaces; and 
(20) in section 480, by adding at the end the following 
new subsections: 
"(k) DEPENDENTS.—(1) Except as otherwise provided, the term 
'dependent of the parent' means the student, dependent children 
of the student's parents, including those children who are deemed 
to be dependent students when appl3dng for aid under this title, 
and other persons who live with and receive more than one-half 
of their support from the parent and will continue to receive more 
than half of their support from the parent during the award year. 
"(2) Except as otherwise provided, the term 'dependent of the 
student' means the student's dependent children and other persons 
(except the student's spouse) who live with and receive more than 
one-half of their support from the student and will continue to 
receive more than half of their support from the student during 
the award year. 
"(1) FAMILY SIZE.—(1) In determining family size in the case 
of a dependent student— 
"(A) if the parents are not divorced or separated, family 
members include the student's parents, and the dependents 
of the student's parents including the student; 
"(B) if the parents are divorced or separated, family mem-
bers include the parent whose income is included in computing 
available income and that parent's dependents, including the 
student; and 
"(C) if the parents are divorced and the parent whose 
income is so included is remarried, or if the parent was a 
widow or widower who has remarried, family members also 
include, in addition to those individuals referred to in subpara-
graph (B), the new spouse and any dependents of the new 
spouse if that spouse's income is included in determining the 
parents' adjusted available income. 
(2) In determining family size in the case of an independent 
student— 
"(A) family members include the student, the student's 
spouse, and the dependents of the student; and 
"(B) if the student is divorced or separated, family members 
do not include the spouse (or ex-spouse), but do include the 
student and the student's dependents. 
"(m) BUSINESS ASSETS.—^The term 'business assets' means prop-
erty tiiat is used in the operation of a trade or business, including 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2475 
real estate, inventories, buildings, machinery, and other equipment, 
patents, franchise rights, and copjrrights.". 
(h) AMENDMENTS TO PART G OP TITLE IV OF THE ACJT,—Part 
G of title IV of the Act (20 U.S.C. 1088 et seq.) is amended— 
(1) in section 481(aX3XB), by inserting before the semicolon 20 use 1088. 
the following: ", except that the Secretary, at the request of 
such institution, may waive the applicability of this subpara-
graph to such institution for good cause, as determined by 
the Secretary in the case of an institution of higher education 
that provides a 2-year or 4-year program of instruction for 
which the institution awards an associate or baccalaureate 
decrree"' 
(2) in section 481(aX3)(D)— 
(A) by striking "are admitted pursuant to section 
484(dr and inserting "do not have a high school diploma 
or its recognized equivalent"; and 
(B) by inserting before the period the following: ", 
except that the Secretary may waive the limitation con-
tsdned in this subparagraph if a nonprofit institution dem-
onstrates to the satisfaction of the Secretary that it exceeds 
such limitation because it serves, through contracts with 
Federal, State, or local government agencies, significant 
numbers of students who do not have a high school diploma 
or its recognized equivsQent"; 
(3) in section 481(aX4), by amending subparagraph (A) 
to read as follows: 
"(A) the institution, or an affiliate of the institution that 
has the power, by contract or ownership interest, to direct 
or cause the direction of the management or policies of the 
institution, has filed for bankruptcy; or"; 
(4) in section 481(d), by amending paragraph (2) to read 
as follows: 
"(2) For the purpose of any program under this title, the term 
'academic year* shall require a minimum of 30 weeks of instructional 
time, and, with respect to an undergraduate course of study, shall 
require that during such minimum period of instructional time 
a full-time student is expected to complete at least 24 semester 
or trimester hours or 36 quarter hours at an institution that meas-
ures program length in credit hours, or at least 900 clock hours 
at an institution that measures program length in clock hours. 
The Secretary may reduce such minimum of 30 weeks to not less 
than 26 weeks for good cause, as determined by the Secretary 
on a case-by-case basis, in the case of an institution of higher 
education that provides a 2-year or 4-year program of instruction 
for which the institution awards an associate or baccalaureate 
degree."; 
(5) in section 481(e) by striking paragraph (2) and inserting 
the following: 
''(2XA) A program is an eUgible program for purposes of part 
B of this title if it is a program of at least 300 clock hours of 
instruction, but less than 600 clock hours of instruction, offered 
during a minimum of 10 weeks, that— 
"(i) has a verified completion rate of at least 70 percent, 
as determined in accordance with the regulations of the Sec-
retary; 
107 STAT. 2476 
PUBLIC LAW 103-208—DEC. 20, 1993 
"(ii) has a verified placement rate of at least 70 percent, 
as determined in accordance with the regulations of the Sec-
retary; and 
"(iii) satisfies such fiirther criteria as the Secretary may 
prescribe by regulation. 
(B) In the case of a program being determined eligible for 
the first time under this paragraph, such determination shall be 
made by the Secretary before such program is considered to have 
satisfied the requirements of this paragraph."; 
20 use 1088. 
(6) in section 481(f), by striking "State" and inserting 
"individual, or any State,"; 
20 use 1089. 
(7) in section 482(c), by adding at the end the following 
new sentence: "For award year 1994-95, this subsection shall 
not require a delay in the eflTectiveness of regulatory changes 
affecting parts B, G, and H of this title that are pubUshed 
in final form by May 1,1994."; 
20 use 1090. 
(8) in section 483(aXl), by striking "section 411(d)" and 
inserting "section 401(d)"; 
(9) in section 483(a)(2), by inserting at the end the following 
new sentence: "No data collected on a form for which a fee 
is charged shall be used to complete the form prescribed under 
paragraph (1)."; 
(10) in section 483(a)(3), by inserting at the end the follow-
ing sentence: "Entities designated by institutions of higher 
education or States to receive such data shall be subject to 
all requirements of this section, luiless such requirements are 
waived by the Secretary."; 
(11) in section 483(f), by striking "address, social security 
number," and inserting "address or employer's address, social 
security number or employer identification number,"; 
(12) in section 483, by redesignating subsections (e), (f), 
and (g) as subsections (d), (e), and (f), respectively; 
20 use 1091. 
(13) in section 484(a)(4)(B), by inserting after "number" 
the following: ", except that the provisions of this subparagraph 
shall not apply to a student from the Republic of the Marshall 
Islands, the Federated States of Micronesia, or the Republic 
ofPalau"; 
(14) in section 484(a)(5), by striking "in the United States 
for other than a temporary purpose and able to provide evidence 
from the Immigration and NaturaUzation Service of his or 
her intent to become a permanent resident" £md inserting "able 
to provide evidence from the Immigration and Naturahzation 
Service that he or she is in the United States for other than 
a temporary purpose with the intention of becoming a citizen 
or permanent resident": 
(15) in section 484(bX2)— 
(A) in subparagraph (A), by striking "and" after the 
semicolon; 
(B) in subparagraph (B), by striking the period and 
inserting "; and ; and 
(C) by adding at the end the following new subpara-
graph: 
(C) has appUed for a loan under section 428H, if such 
student is eligible to apply for such a loan."; 
(16) in the matter following subparagraph (B) of section 
484(bX3), by striking "part B" and inserting "part B or D"; 
(17) in section 484, by striking subsection (f); 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2477 
comma after "Part 
20 use 1091. 
(18) in section 484(g), by inserting a 
D" each place it appears; 
(19) in the matter 
preceding clause (i) of section 
484(h)(4)(B), by striking "constitutes" and inserting "constitute"; 
(20) in section 484(i)(2)— 
(A) by striking "(h)(4)(A)(iir and inserting "(h)(4)(A)(i)''; 
and 
(B) by striking "documentation," and inserting "docu-
mentation, or"; 
(21) in section 484(i)(3)— 
(A) by striking "(h)(4)(B)(ii)" and inserting "(h)(4)(B)(i)"; 
and 
(B) by striking ", or" and inserting a period; 
(22) in section 484(i), by striking paragraph (4); 
(23) in section 484(n), by striking "pairt B, C," and inserting 
"parts B, C"; 
(24) in section 484(q)(2), by striking "a correct social secu-
rity number" and inserting "documented evidence of a social 
security number that is determined by the institution to be 
correct"; 
(25) in section 484, by redesignating subsections (g) through 
(q) as subsections (f) through (p), respectively; 
(26) in section 484B(a), by striking "^ant, loan, or work 
assistance" and inserting "grant or loan assistance"; 
(27) in section 484B(b)(3), by striking "subsection (d)" and 
inserting "subsection (c)"; 
(28) in clauses (i), (ii), and (iii) of section 485(a)(1)(F), 
by inserting before the comma at the end of each such clause 
the following: "for the period of enrollment for which a refund 
is required"; 
(29) in section 485(a)(lXF)(iv), by inserting "under" after 
"awards"; 
(30) in section 485(a)(lXF)(vii), by striking "provided under 
this title"; 
(31) in section 485(a)(l)(F)(viii), by striking the period; 
(32) in section 485(a)(1)(F), by striking clause (vi) and 
redesignating clauses (vii) and (viii) as clauses (vi) and (vii), 
respectively; 
(33) in section 485(a)(l)(L), by inserting a comma after 
"full-time"; 
(34) in section 485(a)(3), by amending subparagraph (A) 
to read as follows: 
"(A) shall, for any academic year beginning more than 
270 days after the Secretary first prescribes final regulations 
pursuant to such subparagraph (L), be made available to cur-
rent and prospective students prior to enrolUng or entering 
into any financial obligation; and ; 
(35) in paragraphs (1)(A) and (2)(A) of section 485(b), by 
striking "under parts" and inserting "under part"; 
(36) in section 485(d), by inserting a period at the end 
of the penultimate sentence; 
(37) in section 485(e), by adding at the end the following 
new paragraph: 
"(9) This subsection shall not be effective until the first July 
1 that follows, by more than 270 days, the date on which the 
Secretary first prescribes final regulations pursuant to this sub-
section. The reports required by this subsection shall be due on 
20 u s e 1091b. 
20 use 1092. 
Effective date. 
Regulations. 
107 STAT. 2478 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 use 1094. 
20 use 1096. 
20 use 1098. 
that July 1 and each succeeding July 1 and shall cover the 1-
yeeu* period ending June 30 of the preceding year."; 
20 use 1092b. 
(38) m section 485B(a)— 
(A) by striking "part E" £uid inserting "parts D and 
E"; and 
(B) by striking the second period at the end of the 
third sentence; 
(39) in section 485B(aX4), by striking "part E" and inserting 
"parts D and E"; 
(40) in section 485B(c), by striking "part B or part E" 
and inserting "part B, D, or E"; 
(41) in section 485B(e), by striking "under this part" each 
place it appears and inserting under tms title"; 
(42) in section 487(a)(2), by striking ", or for completing 
: or handling the Federal Student Assistance Report"; 
(43) in section 487(c)(1)(F), by striking "eligibility for any 
program under this title of any otherwise eligible institution," 
and inserting "participation in any program under this title 
of an eligible institution,"; 
(44) in section 489(a), by striking "484(c)" and inserting 
"484(h)"; 
(45) in section 491(d)(1), by striking "sections 41 lA through 
41 IE and"; and 
(46) in section 491(h)(1), by striking "subtitle III" and 
inserting "subchapter III". 
(i) AMENDMENTS TO PART H OF TITLE IV OF THE ACT.—Part 
H of title IV of the Act (20 U.S.C. 1099a et seq.) is amended— 
20 use i099a-3. 
(1) in section 494C(a), by striking the first and second 
sentences and inserting the following: "The Secretary shall 
review all eUgible institutions of higher education in a State 
to determine if any such institution meets any of the criteria 
in subsection (b). If any such institution meets one or more 
of such criteria, the Secretary shall inform the State in which 
such institution is located that the institution has met such 
criteria, and the State shall review the institution pursuant 
to the standards in subsection (d). The Secretary may determine 
that a State need not review an institution if such institution 
meets the criterion in subsection (b)(10) only, such institution 
was previously reviewed by the State under subsection (d), 
and the State determined in such previous review that the 
institution did not violate any of the standards in subsection 
(d)."; 
(2) in section 494C(i), by striking "sections 428 or 487" 
and inserting "section 428 or 487"; 
20 use 1099b. 
(3) in section 496(a)(2)(A)(i), bv inserting "of institutions 
of higher education" after "membership"; 
(4) in section 496(aX3)(A), by striking "subparagraph (A)" 
and inserting "subparagraph (A)(i)"; 
(5) in section 496(aX5)— 
(A) by striking the period at the end of subparagraph 
(L) and inserting a semicolon; and 
(B) by inserting after subparagraph (L) the following: 
"except that subparagraphs (G), (H), (I), (J), and (L) shall 
not apply to agencies or associations described in paragraph 
(2)(A)(ii) of this subsection;"; 
(6) in the matter preceding paragraph (1) of section 496(c), 
by striking "for the purpose of this title" and inserting "aa 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2479 
a reliable authority as to the quahty of education or training 
offered by an institution seeking to participate in the programs 
authorized under this title"; 
(7) in section 496(1)(2)— 
(A) by striking "institutution" and inserting "institu-
tion"; and 
(B) by striking "association leading to the suspension" 
and inserting "association, described in paragraph (2)(A)(i), 
(2)(B), or (2)(C) of subsection (a) of this section, leading 
to the suspension"; 
(8) in section 496(nXl), by amending subparagraph (B) 
to read as follows: 
"(B) site visits, including unannounced site visits as appro-
priate, at accrediting agencies and associations, and, at the 
Secretary's discretion, at representative member institutions."; 
(9) in section 498(c>— 
(A) in paragraph (2), by adding at the end the following 
new sentences: "Such criteria shall take into account any 
differences in generally accepted accounting principles, and 
the financial statements required thereunder, that are 
applicable to for profit and nonprofit institutions. The Sec-
retary shall take into account an institution's total financial 
circumstances in making a determination of its ability to 
meet the standards herein required."; 
(B) in the matter preceding subparagraph (A) of para-
graph (3), by striking "may determine" and inserting "shall 
determine"; 
(C) by amending subparagraph (C) of paragraph (3) 
to read as follows: 
"(C) such institution establishes to the satisfaction of the 
Secretary, with the support of a financial statement audited 
by an independent certified public accountant in accordance 
with generally accepted auditing standards, that the institution 
has sufficient resources to ensure against the precipitous clo-
sure of the institution, including the ability to meet all of 
its financial obligations (including refunds of institutional 
charges and repayments to the Secretary for liabilities and 
debts incurred in programs administered by the Secretary); 
or"; 
(D) by redesignating paragraphs (4) £uid (5) as para-
graphs (5) and (6), respectively; and 
(E) by inserting after paragraph (3) the following new 
paragraph: 
"(4) If an institution of higher education that provides a 2-
year or 4-year program of instruction for which the institution 
awards an associate or baccalaureate degree fails to meet the ratio 
of current assets to current liabilities imposed by the Secretary 
pursuant to paragraph (2), the Secretary shall waive that particular 
requirement for that institution if the institution demonstrates 
to the satisfaction of the Secretary that— 
"(A) there is no reasonable doubt as to its continued sol-
vency and abihty to deliver quality educational services; 
"(B) it is current in its payment of all current liabilities, 
including student refunds, repajonents to the Secretary, payroll, 
and payment of trade creditors and withholding taxes; and 
20 use 1099b. 
20 use 1099c. 
107 STAT. 2480 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 u s e 1099c. 
20 u s e 1099C-1. 
20 u s e 1102d. 
20 u s e 1105d. 
"(C) it has substantial equity in school-occupied facilities, 
the acquisition of which was the direct cause of its failure 
to meet the current operating ratio requirement."; 
(10) in section 498(f), by inserting after the second sentence 
the following: "The Secretary may establish priorities by which 
institutions are to receive site visits, and may coordinate such 
visits with site visits by States, guaranty agencies, and accredit-
ing bodies in order to eUminate dupUcation, and reduce 
administrative burden."; 
(11) in section 498(hXl)(B), by amending clause (iii) to 
read as follows: 
"(iii) the Secretary determines that an institution that 
seeks to renew its certification is, in the judgment of the 
Secretary, in an administrative or financial condition that 
may jeopardize its ability to perform its financial respon-
sibilities under a program participation agreement."; 
(12) in section 498, by amending subsection (iXl) to read 
as follows: 
"(i) TREATMENT OF CHANGES OF OWNERSHIP.—(1) An eligible 
institution of higher education that has had a change in ownership 
resulting in a change of control shall not qualify to participate 
in programs under this title afi^r the change in control (except 
as provided in paragraph (3)) unless it establishes that it meets 
the requirements of section 481 (other than the requirements in 
subsections (b)(5) and (cX3)) and this section after such change 
in control."; 
(13) in section 498(i)(3), by amending subparagraph (A) 
to read as follows: 
"(A) the sale or transfer, upon the death of an owner 
of an institution, of the ownership interest of the deceased 
in that institution to a family member or to a person holding 
an ownership interest in that institution; or"; 
(14) in section 498, by amending subsection (j)(l) to read 
as follows: 
"(j) TREATMENT OF BRANCHES.—(1) A branch of an eligible 
institution of higher education, as defined pursuant to regulations 
of the Secretary, shall be certified under this subpart before it 
may participate as part of such institution in a program under 
this title, except that such branch shall not be required to meet 
the requirements of sections 481(bX5) and 481(c)(3) prior to seeking 
such certification. Such branch is required to be in existence at 
least 2 years prior to seeking certification as a main campus or 
free-standing institution."; and 
(15) in section 498A(e), by striking "Act," and inserting 
"Act". 
(j) AMENDMENTS TO TITLES V THROUGH XII OF THE ACT.— 
Titles V through XII of the Act (20 U.S.C. 1101 et seq.) are 
amended— 
(1) in section 505(bX2)(D)(iii), by striking the period and 
inserting a semicolon; 
(2) in section 525, by amending subsection (c) to read 
as follows: 
"(c) WAIVERS.—For purposes of giving special consideration 
under section 523(d), a State may waive the criteria contained 
in the first sentence of subsection (b) for not more than 25 percent 
of individuals receiving Paul Douglas Teacher Scholarships on or 
after July 1,1993."; 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2481 
(3) in the first sentence of section 530A by striking 
"elementary and secondary school teachers" each place it 
appears and inserting "preschool, elementary, and secondary 
school teachers"; 
(4) in section 535(b)(1)(C), by striking the semicolon and 
inserting a period; 
(5) in section 537(a), by inserting "IN" before "GENERAL"; 
(6) in section 545(d), by striking "parts B, D," and inserting 
"partB,D,"; 
(7) in section 580B, by striking "(a) AUTHORIZATION.—"; 
(8) in section 581(b)(2), by striking "402A(g)(2)" and insert-
ing "402A(g)"; 
(9) in section 597(d)(1), by striking "Development and" 
and inserting "and Development"; 
(10) in section 602(a)(3), by striking "(1)(A)" and inserting 
"(1)"; 
(11) in section 602(a)(4), by striking "(1)(A)" and inserting 
"(1)"; 
(12) in the heading of subsection (a) of section 603, by 
striking "RESOURCES" and inserting "RESOURCE"; 
(13) in section 607(c), by redesignating the second para-
graph (2) as paragraph (3); 
(14) in section 714, by striking "(a) IN GENERAL.—"; 
(15) in section 715(b)— 
(A) by striking "(1) STATE GRANTS.—"; 
(B) by redesignating subparagraphs (A) and (B) as 
paragraphs (1) and (2); 
(C) in paragraph (2) (as so redesignated) by redesignat-
ing clauses (i), (ii), and (iii) as subparagraphs (A), (B), 
and (C), respectively; and 
(D) by reducing the indentation of such paragraphs 
(1) and (2) (as so redesignated) by two em spaces; 
(16) in section 725— 
(A) by redesignating paragraphs (2) through (5) as 
paragraphs (3) through (6), respectively; and 
(B) by inserting after paragraph (1) the following new 
paragraph: 
"(2) shall require that the first loans for capital projects 
authorized under section 723 be made no later than March 
31,1994;"; 
(17) in section 726, by inserting a period after "title" the 
first time it appears and striking the remainder of the sentence; 
(18) in section 731(a), by striking "faculties," and inserting 
"faculty,"; 
(19) in section 731(c), by striking "enactment or; 
(20) in section 734(e)— 
(A) by striking "FACULTIES" and inserting "FACULTY"; 
and 
(B) by striking "faculties" and inserting "facult/'; 
(21) in section 781(b), by striking "Education Amendments 
of 1992," and inserting "Education Amendments of 1992"; 
(22) in section 782(1)(A), by striking "outpatient care of 
student" and inserting "outpatient care of students"; 
(23) in section 783— 
(A) in subsection (a)(2), by inserting "on all such loans 
owed by such institution" eifter "outstanding indebtedness"; 
and 
20 use 1104J. 
20 u s e 1105d. 
20 use 1105f. 
20 u s e 1106(1. 
20 use 1112e. 
20 use 1113. 
20 use 1117a. 
20 use 1122. 
20 use 1123. 
20 u s e 1125a. 
20 use 1132b-3. 
20 u s e 1132b-4. 
20 use 1132C-4. 
20 u s e 1132C-5. 
20 u s e 1132d. 
20 u s e 1132d-3. 
20 use 11321. 
20 u s e 11321-1. 
20 u s e 11321-2. 
107 STAT. 2482 
PUBLIC LAW 103-208—DEC. 20, 1993 
(B) by adding at the end thereof the following new 
subsection: 
"(d) 
REDUCTION OF AMOUNTS OWED TO TREASURER.—If 
the 
Secretary forgives all or part of a loan described in subsection 
(a), the outstanding balance remaining on the notes of the Secretary 
that were issued to the Secretary of the Treasury under section 
761(d) as in efiTect prior to the enactment of the Higher Education 
Amendments of 1992, or imder any provision of ttiis title as in 
effect at the time such note was issued, shall be reduced by such 
amount forgiven."; 
20 use 1133a. 
(24) in the matter preceding paragraph (1) of section 802(b), 
by inserting after "fiscal year^ the following: "the Secretary 
snail reserve such amount as is necessary to make continuing 
awards to institutions of higher education that were, on the 
'^ date of enactment of the mgher Education Amendments of 
1992, operating an existing cooperative education program 
' under a multiyear project award and to continue to pay to 
such institutions the Federal share in efTect on the day before 
such date of enactment. Of the remainder of the amount appro-
priated in such fiscal year"; 
20 use 1133b. 
(25) in section 803(b)(6)(A), by striking "data"; 
(26) in section 803(e)(2>— 
(A) by striking "Mexican American" and inserting 
"Mexican-American ; and 
(B) by striking "Mariana" and inserting "Mariemian"; 
20 use 1134. 
(27) in section 901(b)(2), by striking "such part" and insert-
ing "such title"; 
20USeil34e. 
(28) in section 922, by amending subsection (f) to read 
as follows: 
"(f) INSTITUTIONAL PAYMENTS.—(1) The Secreta^ shall pay to 
the institution of higher education, for each individual awarded 
a fellowship imder this part at such institution, an institutional 
allowance. Except as provided in paragraph (2), such allowance 
shall be— 
"(A) $6,000 annually with respect to individuals who first 
received fellowships luider this part prior to academic year 
1993-1994; and 
"(B) with respect to individuals who first receive fellowships 
during or afi»r academic year 1993-1994— 
"(i) $9,000 for the academic year 1993-1994; and 
"(ii) for succeeding academic years, $9,000 adjusted 
annually thereafter in accordance with inflation as deter-
mined by the Department of Labor's Consumer Price Index 
for the previous calendar year. 
"(2) The institutiongd allowance paid under paragraph (1) shall 
be reduced by the amount the institution charges and collects 
fi*om a fellowship recipient for tuition and other expenses as part 
of the recipient's instructional program."; 
20 use 1134f. 
(29) in the second sentence of section 923(b)(1), by striking 
"granting of such fellowships" and all that follows through 
"set forth in this section," and inserting "granting of such 
fellowships for an additional period of study not to exceed 
one 12-month period,"; 
(30) in section 923(b)(2), by striking out the second and 
third sentences and inserting the following: "Such period shall 
not exceed a total of 3 years, consisting of not more than 
2 years of support for study or research, and not more than 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2483 
1 year of support for dissertation work, provided that the stu-
dent has attained satisfactory progress prior to the dissertation 
stage, except that the Secretary may provide by regulation 
for the granting of such fellowships for an additional period 
of study not to exceed one 12-month period, under special 
circumstances which the Secretary determines would most 
effectively serve the purposes of this part. The Secretary shall 
make a determination to provide such 12-month extension of 
an award to an individual fellowship recipient for study or 
research upon review of an application for such extension by 
the recipient. The institution shall provide 2 years of support 
for each student following the years of Federal predissertation 
support under this part. Any student receiving an award for 
graduate study leading to a doctoral degree shall receive at 
least 1 year of supervised training in instruction during such 
student's doctoral program."; 
(31) in section 923(b), by adding at the end the following 
20 USC li34f. 
new paragraph: 
"(3) CONTINUATION OF AWARDS UNDER PRIOR LAW.—Not-
withstanding any other provision of law, in the case of an 
individual who was awarded a multiyear fellowship under this 
) 
part before the date of enactment of the Higher Education 
Amendments of 1992, awards to such individual for the remain-
der of such fellowship may, at the discretion of the institution 
of higher education attended by such individual, be subject 
to the requirements of this subsection as in effect prior to 
such date of enactment. The institution shall be required to 
exercise such discretion at the time that its application to 
the Secretary for a grant under this part, and the amount 
of any such grant, are being considered by the Secretary."; 
(32) in section 924, by adding at the end thereof the follow- 
20 USC li34g. 
ing new sentence: "Notwithstanding any other provision of law, 
the Secretary may use funds appropriated pursuant to this 
section for fiscal year 1994 to make continuation awards under 
section 923(b)(3) to individuals who would have been eligible 
for such awards in fiscal year 1993 if such section had been 
in effect."; 
(33) in section 931(a), by inserting after the first sentence 
20 USC li34h. 
the following new sentence: *These fellowships shall be awarded 
to students intending to pursue a doctoral degree, except that 
fellowships may be granted to students pursuing a master's 
degree in those fields in which the master's degree is commonly 
accepted as the appropriate degree for a tenured-track faculty 
position in a baccsdaureate degree-granting institution."; 
(34) in the third sentence of section 932(a)(1), by striking 20 USC ll34i. 
"doctoral" and inserting "graduate"; 
(35) in section 932(c), by striking "doctoral" and inserting 
"graduate"; 
(36) in section 933(b), by amending paragraph (1) to read 
20 USC ll34j. 
as follows: 
"(1) IN GENERAL.—(A) The Secretary shall (in addition to 
stipends paid to individuals under this part) pay to the institu-
tion of higher education, for each individual awarded a fellow-
ship under this part at such institution, an institutional allow-
ance. Except as provided in subparagraph (B), such allowance 
shall be— 
69-194 O - 94 - 18 : QL. 3 Part 3 
107 STAT. 2484 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 use 1134Z. 
20 u s e 1134n. 
20 use 1134p. 
20 use 1134q. 
20 use 1134r. 
20 use 1135a-2. 
20 use 
1135a-ll. 
"(i) $6,000 annually with respect to individuEils who 
first received fellowships under this part prior to academic 
year 1993-1994; and 
"(ii) with respect to individuals who first receive fellow-
ships during or after academic year 1993-1994— 
"(I) $9,000 for the academic year 1993-1994; and 
"(II) 
for 
succeeding 
academic 
years, 
$9,000 
adjusted annually thereafter in accordance with infla-
tion as determined by the Department of Labor's 
Consumer Price Index for the previous calendar year. 
"(B) The institutional allowance paid under subparagraph 
(A) shall be reduced by the amount the institution charges 
and collects from a fellowship recipient for tuition and other 
expenses as part of the recipient's instructional program."; 
(37) in section 941, by striking "the part" and inserting 
"this part"; 
(38) in section 943(b), by striking "foreign languages or 
area studies" and inserting "foreign languages and area 
studies"; 
(39) in section 945, by amending subsection (c) to read 
as follows: 
"(c) TREATMENT OF INSTITUTIONAL PAYMENTS.—An institution 
of higher education that makes institutional payments for tuition 
and fees on behalf of individuals supported by fellowships under 
this part in amounts that exceed the institutional payments made 
by the Secretary pursuant to section 946(a) may count such pay-
ments toward the amounts the institution is required to provide 
pursuant to section 944(b)(2)."; 
(40) in section 946, by amending subsection (a) to read 
as follows: 
"(a) INSTITUTIONAL PAYMENTS.—(1) The Secretary shall (in 
addition to stipends paid to individuals imder this part) pay to 
the institution of higher education, for each individual awarded 
a fellowship under this part at such institution, an institutional 
allowance. Except as provided in paragraph (2), such allowance 
shsdl be— 
"(A) $6,000 annually with respect to individuals who first 
received fellowships under this part prior to academic year 
1993-1994; and 
"(B) with respect to individuals who first receive fellowships 
during or after academic year 1993-1994— 
"(i) $9,000 for the academic year 1993-1994; and 
"(ii) for succeeding academic years, $9,000 adjusted 
annually thereafter in accordance with inflation as deter-
mined by the Department of Labor's Consumer Price Index 
for the previous calendar year. 
"(2) The institutional £dlowance paid under paragraph (1) shall 
be reduced by the amount the institution charges and collects 
from a fellowship recipient for tuition and other expenses as part 
of the recipient's instructional program."; 
(41) in the matter preceding paragraph (1) of section 951(a), 
by inserting "Pacific Islanders," afber "Native Americans,"; 
(42) in section 1004(a), by striking "part" and inserting 
"subpart"; 
(43) in section 1011(d), by striking "part" and inserting 
"subpart"; 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2485 
(44) in part D of title X, by redesignating section 1181 
as section 1081; 
(45) in section 1081(d) (as so redesignated) by inserting 
a comma after "this title)" and after "such institutions"; 
(46) in section 1106(a), by striking "may receive a grant" 
and inserting "may receive such a grant"; 
(47) in section 1142(d)(2), by inserting "program" afl«r "lit-
eracy corps"; 
(48) in the last sentence of section 1201(a), by striking 
"subpart 3 of part H," and inserting "subpart 2 of part H 
oftitlelVofthisAct,"; 
(49) by amending section 1204 to read as follows: 
"TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT ASSISTANCE 
"SEC. 1204. (a) The Secretary is required to waive the ehgibility 
criteria of any postsecondary education program administered by 
the Department where such criteria do not take into account the 
unique circumstances in Guam, the Virgin Islands, American 
Samoa, Palau, the Commonwealth of the Northern Mariana Islands, 
and the freely associated states. 
"(b) Notwithstanding any other provision of law, an institution 
of higher education that is located in any of the freely associated 
states, rather than a State, shall be eligible, if otherwise qualified, 
for assistance under chapter 1 of subpart 2 of part A of title 
IV of this Act"; 
(50) in section 1205, in the section heading, by inserting 
"NATIONAL ADVISORY" before "COMMITTEE"; 
(51) in section 1205(a), by inserting "National Advisory" 
before "Committee" the first place it appears; 
(52) in paragraphs (1) and (6) of section 1205(c), by insert-
ing "of title IV of this Act" afl»r "part H"; 
(53) in section 1205(f), by strikmg "Accreditation and 
Institutional Eligibilitjr" and inserting "Institutional QuaUty 
and Integrit3r"; 
(54) in section 1209(fKl), by striking "the Act" and inserting 
"this Act"; 
(55) in title XII, by redesignating section 1211 (as added 
by section 6231 of the Omnibus Trade and Competitiveness 
Act of 1988) as section 1212; and 
(56) in section 1212(e)(2) (as so redesignated), by inserting 
close quotation marks after "facilities" the first place it appears, 
(k) AMENDMENTS TO THE 1992 AMENDMENTS.—The Higher Edu-
cation Amendments of 1992 (Public Law 102-325; 106 Stat. 459) 
is amended— 
(1) in section 401(d)(2)(A), by inserting "the first place 
it appears" before "the following:"; 
(2) in section 425(dXl)— 
(A) by inserting "the second sentence or after "(1) 
in"; and 
(B) by striking "in the second sentence"; 
(3) in section 425(dX4)— 
(A) by inserting "the second sentence or after "(4) 
in"; and 
(B) by striking "in the second sentence"; 
20 u s e 1135f. 
20 u s e 1136e. 
20 u s e 1138a. 
20 u s e 1141. 
20 u s e 1144. 
20 use 1144a. 
20 u s e 1145. 
20 u s e 1145d. 
20 u s e 1145f, 
1145d-l. 
20 u s e 1070a. 
20 u s e 1082. 
(4) in section 426(c), by striking 
inserting "new subsection"; 
"new subsections" and 20 use 1083. 
107 STAT. 2486 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 u s e 1078 
note. 
20 use 1096. 
20 use 1087ee. 
20 u s e 1091 
note. 
20 use 1092. 
20 use 1132a 
note. 
20 u s e 1221-1 
note. 
20 use 1221-1 
note. 
20 use 1145h. 
22 u s e 4609. 
20 u s e 1001 
note. 
20 u s e 1141 
note. 
(5) in section 432(a)(3), by striking "427(a)(2)(C) and 
428(b)(l)(Mr and inserting "427(a)(2)(C), 428(b)(l)(M), and 
428B(d)(l)"; 
(6) in section 446, by striking subsection (c); 
(7) in section 465(a), by amending paragraph (1) to read 
as follows: 
"(1) in subparagraph (A), by striking 'and such determina-
tion' and all that follows through 'such chapter 1';"; 
(8) in section 484, by inserting after subsection (h) the 
following new subsection: 
"(i) EFFECTIVE DATE.—^The amendments made by subsection 
(g) with respect to the addition of subsection (n) shall be effective 
on and after December 1,1987."; 
(9) in section 486(a)(3), by striking "section 1" and inserting 
"section 103"; 
(10) in section 1409(b)(1), by striking "the Asbestos Hazard 
Emergency Response Act" and inserting "section 202 of the 
Toxic Substances Control Act (15 U.S.C. 2642)"; 
(11) in section 1422(9), by striking "has placed" and insert-
ing "have placed"; 
(12) in section 1442(c), by striking "Chairman" £ind insert-
ing "Chairperson"; 
(13) in section 1541(g), by striking "educational" and insert-
ing "education"; and 
(14) in the subsection (a)(1) amended by section 1554(a), 
by striking "4" and inserting "6". 
(1) AMENDMEhfT TO THE 1986 AMENDMENT.—Section 1507(a)(12) 
of the Higher Education Amendments 
of 1986 (20 U.S.C. 
4414(a)(12)) is amended by striking the period and inserting a 
semicolon. 
(m) STYLISTIC CONSISTENCY.—The Act is amended so that the 
section designation and section heading of each section of the Act 
shall be in the form and typeface of the section designation and 
heading of this section. 
(n) ACCREDITATION THROUGH TRANSFER OF CREDIT.—(1) An 
institution of higher education which satisfied the requirements 
of section 1201(a)(5)(B) of the Act prior to the enactment of the 
Higher Education Amendments of 1992, shall be considered to 
meet the requirements of section 1201(a)(5) of the Act if— 
(A) within 60 days after the date of enactment of the 
Higher Education Technical Amendments of 1993, such institu-
tion has applied for accreditation by a nationally recognized 
accrediting agency or association which the Secretary deter-
mines, pursuant to subpart 2 of part H of title IV of the 
Act, to be a reliable authority as to the quaUty of education 
or training offered; 
(B) within 2 years of the date of enactment of the Higher 
Education Technical Amendments of 1993, such institution is 
accredited by such an accrediting agency or association or, 
if not so accredited, has been granted preaccreditation status 
by such an agency or association that has been recognized 
by the Secretary for the granting of preaccreditation status, 
and the Secretary has determined that there is satisfactory 
assurance that the institution will meet the accreditation stand-
ards of such an agency or association within a reasonable 
time; and 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2487 
(C) such institution is legally authorized within a State 
to provide education beyond secondary education. 
(2) The Secretary shall determine whether to recertify any 
institution that meets the requirements of paragraph (1) within 
2 years after the date of enactment of this Act. 
(3) Paragraph (1) of this subsection shall be effective on and Effective date. 
after July 23,1992. 
SEC. 3. PACIFIC REGIONAL EDUCATIONAL LABORATORY. 
Section 10 lA of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2311a) is amended— 
(1) in the matter preceding paragraph (1) of subsection 
( b ) -
(A) by striking "Center for the Advancement of Pacific 
Education, Honolulu, Hawaii, or its successor entity as 
the Pacific regional educational laboratory" and inserting 
"Pacific 
Regional 
Educational 
Laboratory, 
Honolulu, 
Hawaii"; and 
(B) by insei-ting "or provide direct services regarding" 
after "grants for"; and 
(2) in subsection (c), by striking "Center for the Advance-
ment of Pacific Education" and inserting "Pacific Regional Edu-
cational Laboratory, Honolulu, Hawaii,". 
SEC. 4. DISTRIBUTION OF FUNDS TO POSTSECONDARY AND ADULT 
PROGRAMS. 
Section 232 of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2341a) is amended— 
(1) in subsection (a)— 
(A) in the first sentence— 
(i) by inserting "(1)" before "Except"; and 
(ii) by inserting "or consortia thereof^ before 
"within"; and 
(B) in the second sentence— 
(i) by inserting "or consortium" before "shall"; and 
(ii) by inserting "or consortium" before "in the 
preceding^; 
(C) by adding at the end the following new paragraph: 
"(2) In order for a consortium of eligible institutions described 
in paragraph (1) to receive assistance pursuant to such paragraph 
such consortium shall operate joint projects that— 
"(A) provide services to all postsecondary institutions 
participating in the consortium; and 
"(B) are of sufficient size, scope and quality as to be effec-
tive."; 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting "or consortia" after 
"institutions"; and 
(B) in the matter preceding subparagraph (A) of para-
graph (2), by inserting "or consortia" after "institutions"; 
and 
(3) in subsection (c)— 
(A) in paragraph (1), by inserting "or consortium" after 
"institution"; and 
(B) in paragraph (2), by inserting "or consortia" after 
"institutions". 
107 STAT. 2488 
PUBLIC LAW 103-208—DEC. 20, 1993 
20 use 1003 
SEC. 5. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided therein or in 
subsection (b) of this section, the amendments made by section 
2 of this Act shall be effective as if such amendments were included 
in the Higher Education Amendments of 1992 (Public Law 102-
325), except that section 492 of the Act shall not apply to the 
amendments made by this Act. 
(b) EXCEPTIONS.— 
(1) EFFECTIVE ON OCTOBER 1, 1993.—The amendments 
made by the following subsections of section 2 of this Act 
shall be effective on and after October 1, 1993: (b)(29), (j)(28), 
a)(36),and(j)(40). 
(2) EFFECTIVE ON DATE OF ENACTMENT.—The amendments 
made by the following subsections of section 2 of this Act 
shall be effective on and after the date of enactment of this 
Act: (b)(2), (b)(7), (b)(28), (c)(3), (cX5), (c)(13)(B), (c)(13)(C), 
(cX18), (c)(30), (c)(62). 
(3) EFFECTIVE 30 DAYS AFTER ENACTMENT.—The amend-
ments made by the following subsections of section 2 of this 
Act shall be effective on and after 30 days after the date 
of enactment of this Act: (c)( 19), (c)(20), (c)(21), (c)(59). 
(4) EFFECTIVE 60 DAYS AFTER ENACTMENT.—^The amend-
ments made by the following subsections of section 2 of this 
Act shall be effective on and aft»r 60 days aft«r the date 
of enactment of this Act: (c)(31) and (c)(53). 
(5) EFFECTIVE ON APRIL 1, 1994.—The amendments made 
by section 2(c)(43)(B) of this Act shall be effective on and 
after April 1,1994. 
(6) EFFECTIVE ON JULY 1, 1994.—The amendments made 
by the following subsection of section 2 of this Act shall be 
effective on and afl^er July 1, 1994: (b)(25), (c)(2), (cX13)(A), 
(cX29). 
(7) COHORT DEFAULT DATA EXAMINATIONS.—The amend-
ment made by section 2(c)(60)(A) shall be effective on and 
after October 1,1994. 
(8) COHORT DEFAULT RATE DETERMINATIONS.—The amend-
ments made to subsection (a)(3) and (m)(l)(B) of section 435 
of this Act shall apply with respect to the determination (and 
PUBLIC LAW 103-208—DEC. 20, 1993 
107 STAT. 2489 
appeals from determinations) of cohort default rates for fiscal 
year 1989 and any succeeding fiscal year. 
Approved December 20, 1993. 
LEGISLATIVE HISTORY—S. 1507 (H.R. 3376): 
CONGRESSIONAL RECORD, Vol. 139 (1993): 
Oct. 7, considered and passed Senate. 
Nov. 2, H.R. 3376 considered and peissed House; S. 1507, amended, passed in 
lieu. 
Nov. 19, Senate concurred in House amendment with an amendment. 
Nov. 20, House concurred in Senate amendment.