Higher Education Amendments of 1992
PL 102-325 (S.1150), enacted 07/23/1992

106 STAT. 448 
PUBLIC LAW 102-325—JULY 23, 1992 
Public Law 102-325 
102d Congress 
An Act 
July 23, 1992 
[S. 1150] 
Higher 
Education 
Amendments of 
1992. 
Grants. 
Inter-
governmental 
relations. 
Loans. 
20 u s e 1001 
note. 
20 u s e 1001 
note. 
To reauthorize the Higher Education Act of 1965, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES; DEFINITIONS; TABLE OF CON-
TENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Higher Education 
Amendments of 1992". 
(b) REFERENCES.—^References in this Act to 'the Act" are ref-
erences to the Higher Education Act of 1965. 
(c) DEFINITIONS.—Unless otherwise provided therein, terms used 
in titles XIII, XIV, and XV shall have the same meaning given 
to such terms ui section 1201 of the Higher Education Act of 
1965. 
(d) TABLE OF CONTENTS.— 
Sec. 1. Short title: references; table of contents. 
Sec. 2. General enective date. 
TITLE I—PARTNERSHIPS FOR EDUCATIONAL EXCELLENCE 
Sec. 101. Revision of title I. 
"TITLE I—PARTNERSHIPS FOR EDUCATIONAL EXCELLENCE 
"PART A—SCHOOL, COLLEGE, AND UNIVERSITY PARTNERSHIPS 
"Sec. 101. Purpose. 
"Sec. 102. Agreement. 
"Sec. 103. Grants. 
"Sec. 104. Grant appUcation. 
"Sec. 105. Peer review. 
"Sec. 106. Authorization of appropriations. 
"PART B—ARTICULATION AGREEMENTS 
"Sec. 121. Findings and purpose. 
"Sec. 122. Authorization of grants. 
"Sec. 123. State application. 
"Sec. 124. Local applications. 
"Sec. 125. Articulation agreement. 
"Sec. 126. State administration. 
"Sec. 127. Priority. 
"Sec. 128. Reports. 
"Sec. 129. Authorization of appropriations. 
"PART C—ACCESS AND EQUITY TO EDUCATION FOR ALL AMERICANS THROUGH 
TELECOMMUNICATIONS 
"Sec. 131. Program established; authorization of appropriations; eligibility. 
"Sec. 132. Application. 
"Sec. 133. Authorized activities. 
"Sec. 134. Definition. 
"Sec. 135. Report. 
TITLE II—ACADEMIC LIBRARY AND INFORMATION TECHNOLOGY 
ENHANCEMENT 
Sec. 201. Revision of title II. 
"TITLE II—ACADEMIC LIBRARIES AND INFORMATION SERVICES 
"Sec. 201. Purpose; authorization. 
PUBUC LAW 102-325—JULY 23,1992 
106 STAT. 449 
"Sec. 202. Notification of State agency. 
"Sec. 203. Library eaperts. 
TART A—COLLEGE LIBRARY TECHNOLOGY AND CJOOPERATION GRANTS 
"Sec. 211. C!oUege library technology and cooperation grants. 
"PART B—LIBRARY EDUCATION, RESEARCH, AND DEVELOPMENT 
"Sec. 221. Grants authorized. 
"Sec. 222. Library education and human resource development. 
"Sec. 223. Research and demonstration. 
"Sec. 224. Cionsultation requirements. 
"PART C—IMPROVING ACCESS TO RESEARCH LIBRARY RESOURCES 
"Sec. 231. Research librai^ resources. 
"Sec. 232. Geographical distribution of grants. 
"PART D—STRENGTHENING LIBRARY AND INFORMATION SCIENCE PROGRAMS AND LI-
BRARIES IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND OTHER MINOR-
ITY-SERVING INSTITUTIONS 
"Sec. 241. Strengthening library and information science programs and librar-
ies in historically black colleges and universities and other minor-
ity-serving institutions.". 
TITLE III—INSTITUTIONAL AID 
Sec. 301. Findings. 
Sec. 302. Amen<unents to part A. 
Sec. 303. Amendments to part B. 
Sec. 304. Amendments to part C. 
Sec. 305. Amendments to part D. 
TITLE IV-STUDENT ASSISTANCE 
PART A—GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OP HIGHER 
EDUCATION 
Sec. 401. Federal Pell Grant program. 
Sec. 402. Federal early outreach and student services programs. 
"Subpart 2—^Federal Early Outreach and Student Services Programs 
"CHAPTER 1—FEDERAL TRIO PROGRAMS 
"Sec. 402a. Program authority; authorization of appropriations. 
"Sec. 402b. Talent search. 
"Sec. 402c. Upward Bound. 
"Sec. 402d. Student support services. 
"Sec. 402e. Postbaccalaureate achievement program authority. 
"Sec. 402f Educational opportunity centers. 
"Sec. 402g. Staff development activities. 
"Sec. 402h. Evaluation for project improvement. 
"CHAPTER 2—NATIONAL EARLY INTERVENTION SCHOLARSHIP AND PARTNERSHIP 
PROGRAM 
"Sec. 404a. Early intervention program authorized. 
"Sec. 404b. State eligibility and State plan. 
"Sec. 404c. Early intervention. 
"Sec. 404d. Scholarship component. 
"Sec. 404e. Distribution of fands. 
"Sec. 404f Evaluation and report. 
"Sec. 404g. Appropriations. 
"CHAPTER 3—PRESIDENTIAL ACCESS SCHOLARSHIPS 
"Sec. 406a. Scholarships authorized. 
"Sec. 406b. Scholarship program requirements. 
"Sec. 406c. Eli^bility of scholars. 
"Sec. 406d. Eligible early intervention programs. 
"Sec. 406e. Student eligibility. 
"Sec. 406f Early intervention scholarship agreement. 
"Sec. 406g. Authorization of appropriations. 
"CHAPTER 4—^MODEL PROGRAM COMMUNITY PARTNERSHIP AND COUNSELING GRANTS 
"Sec. 408a. Model program grants. 
59-194 O—93 
16:QL3(Pt. 1) 
106 STAT. 450 
PUBLIC LAW 102-325—JULY 23, 1992 
"Sec. 408b. Diffusion activities. 
; 
* 
"Sec. 408c. Authorization of appropriations. 
"CHAPTER 6—^PUBLIC INFORMATION 
"Sec. 409a. Database and information line. 
"Sec. 409b. Early awareness information program. 
"Sec. 409c. Database and information line. 
"CHAPTER 6—NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM 
"Sec. 410a. National student savings demonstration program. 
"CHAPTER 7—^PREELIGIBILnY FORM 
"Sec. 410b. Information on eligibility for assistance. 
"CHAPTER 8—TECHNICAL ASSISTANCE FOR TEACHERS AND COUNSELORS 
"Sec. 410c. Technical assistance grants.". 
Sec. 403. Federal supplemental educational opportunity grants. 
Sec. 404. State student incentive grants. 
Sec. 405. HEP/CAMP. 
Sec. 406. Byrd Honors Scholarship Program. 
Sec. 407. Pasmients to institutions of higher education. 
Sec. 408. Veterans outreach. 
Sec. 409. Child care. 
Sec. 410. Effective dates for amendments to part A. 
PART B—FEDERAL FAMILY EDUCATION LOANS 
Sec. 411. Program designation and duration. 
Sec. 412. Advances for reserve funds of State and nonprofit private loan insurance 
programs. 
Sec. 413. Luni^tions on Federal loan insurance. 
Sec. 414. EligibiUty of student borrowers and terms of federally insured student 
loans. 
Sec. 415. AppUcable interest rates. 
Sec. 416. Amendments to section 428. 
Sec. 417. Supplemental loan program. 
Sec. 418. PLUS loans. 
Sec. 419. Consolidation loans. 
Sec. 420. Default reduction programs. 
Sec. 421. Disbursement rules. 
Sec. 422. Unsubsidized loans; performance agreements; loan forgiveness. 
Sec. 423. Default rates. 
Sec. 424. Reports to credit bureaus and institutions of higher education. 
Sec. 425. Administrative provisions. 
Sec. 426. Student loan information by eligible lenders. 
Sec. 427. Definitions for student loan insurance program. 
Sec. 428. Repajrments by Secretary. 
Sec. 429. Debt m£magement options. 
Sec. 430. Special allowances. 
Sec. 431. Student Loan Marketing Association. 
Sec. 432. Effective dates for amendments to part B. 
PART C—FEDERAL WORK-STUDY PROGRAMS 
Sec. 441. Designation, purpose, and appropriations. 
Sec. 442. Allocation of funds. 
Sec. 443. Grants for work-study programs. 
Sec. 444. Carry-back authority. 
Sec. 445. Job location and development. 
Sec. 446. Additional funds to conduct community service work-study programs. 
Sec. 447. Work colleges. 
PART D—FEDERAL DIRECT LOANS 
Sec. 451. Establishment of Federal direct loan program. 
"PART D—FEDERAL DIRECT LOAN DEMONSTRATION PROGRAM 
"Sec. 451. Program and payment authority. 
"Sec. 452. Pavment rules. 
"Sec. 453. Selection by the Secretary. 
"Sec. 454. Agreement required. 
"Sec. 455. mthdrawal and termination procedures. 
"Sec. 456. Terms and conditions. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 451 
"Sec. 457. Loan collection functions under competitive procurement contracts. 
"Sec. 458. Reports. 
"Sec. 459. Schedule of regulatory activities by the Secretary. 
"Sec. 459A. Funds for administrative expenses.". 
Sec. 452. Income contingent loan program distribution of funds. 
PART E—FEDERAL PERKINS LOANS 
Sec. 461. Program designation; authorization. 
Sec. 462. Allocation of mnds. 
Sec. 463. Agreements with institutions of higher education. 
Sec. 464. Amounts and terms of loans. 
Sec. 465. Cancellation of loans for certain public service. 
Sec. 466. Distribution of assets fi^m student loan funds. 
Sec. 467. Excess capital rule. 
Sec. 468. Effective dates for amendments to part E. 
PART F—NEED ANALYSIS 
Sec. 471. Revision of part F. 
"PART F—NEED ANALYSIS 
"Sec. 471. Amount of need. 
"Sec. 472. Cost of attendance. 
"Sec. 473. Family contribution. 
"Sec. 474. Determination of expected family contribution; data elements. 
"Sec. 475. Family contribution for dependent students. 
"Sec. 476. Family contribution for independent students without dependents 
other than a spouse. 
"Sec. 477. Family contribution for independent students with dependents other 
than a spouse. 
"Sec. 478. Regulations; updated tables. 
"Sec. 479. Simplified needs tests. 
"Sec. 479a. Discretion of student financial aid administrators. 
"Sec. 479b. Disregard of student aid in other Federal programs. 
"Sec. 479c. Native American students. 
"Sec. 480. Definitions." 
PART G—GENERAL PROVISIONS 
Sec. 481. Definitions. 
Sec. 482. Master calendar. 
Sec. 483. Forms and regiilations. 
Sec. 484. Student eUgibility. 
Sec. 485. Refund pohcy. 
Sec. 486. Information dissemination. 
Sec. 487. National Student Loan Data System. 
Sec. 488. Simplification of the lending process for borrowers. 
Sec. 489. Traming in financial aid services. 
Sec. 490. Program participation agreements. 
Sec. 491. Quality assurance; identification numbers. 
Sec. 492. Inter-program transfers. 
Sec. 493. Administrative expenses. 
Sec. 494. Repeal. 
Sec. 495. Criminal penalties. 
Sec. 496. Advisory Committee on Student Financial Assistance. 
Sec. 497. Regional meetings and negotiated rulemaking. 
Sec. 498. Effective dates for amendments to part G. 
PART H—PROGRAM INTEGRITY 
Sec. 499. Establishment of new part H. 
"PART H—PROGRAM INTEGRITY TRIAD 
"Subpart 1—State Postsecondary Review Program 
"Sec. 494. State postsecondary review program. 
"Sec. 494a. State postsecondary review entity agreements. 
"Sec. 494b. Federal reimbursement of State postsecondary review costs. 
"Sec. 494c. Functions of State review entities. 
"Subpart 2—^Accrediting Agency Approval 
"Sec. 496. Approval of accrediting agency or association. 
"Subpart 3—EUgibility and Certification Procedures 
"Sec. 498. Eligibility and certification procedures. 
106 STAT. 452 
PUBLIC LAW 102-325—JULY 23, 1992 
"Sec. 498a. Program review and data.". 
TITLE V—EDUCATOR RECRUITMENT, RETENTION, AND DEVELOPMENT 
Sec. 501. Revision of title V. 
"TITLE y—EDUCATOR RECRUITMENT, RETENTION, AND DEVELOPMENT 
"Sec. 500. Findings and purposes. 
'TART A—STATE AND LOCAL PROGRAMS FOR TEACHER EXCELLENCE 
"Sec. 501. Authority and allocation of funds; definitions. 
"Sec. 502. State application. 
"Sec. 503. Local application and use of funds. 
"Sec. 504. State uses of funds. 
"Sec. 505. State academies for teachers. 
"Sec. 506. State academies for school leaders. 
"Sec. 507. Institutions of higher education uses of funds. 
"Sec. 508. Professional development academies. 
"Sec. 509. Federal funds to supplement, not supplant regular non-Federal 
funds. 
"Sec. 510. Coordination with other programs. 
"Sec. 510a. Authorization of appropriauons. 
'TART B—NATIONAL TEACHER ACADEMIES 
"Sec. 511. Program established. 
"Sec. 512. Eligible recipients. 
"Sec. 513. Use of funds. 
"Sec. 514. Application. 
"Sec. 515. State delegations. 
"Sec. 516. Selection. 
"Sec. 517. National Teacher Academy evaluation. 
"Sec. 518. Authorization of appropriations. 
"PART C—TEACHER SCHOLARSHIPS AND FELLOWSHIPS 
"Subpart 1—Paul Douglas Teacher Scholarships 
"Sec. 521. Purpose; designation. 
"Sec. 522. Allocation among States. 
"Sec. 523. Grant appUcations. 
"Sec. 524. Amount and duration of and relation to other assistance. 
"Sec. 525. Selection of Paul Douglas teacher scholars. 
"Sec. 526. Scholarship conditions. 
"Sec. 527. Scholarship repajmient provisions. 
"Sec. 528. Exceptions to repa3mient provisions. 
"Sec. 529. Federal administration of^State programs; judicial review. 
"Sec. 530. Evaluation. 
"Sec. 530a. Designation of shortage areas. 
"Sec. 530b. Authorization of appropriations. 
"Subpart 2—Christa McAuliffe Fellowship Program 
"Sec. 531. Declaration of purpose; designation. 
"Sec. 532. Program authorized. 
"Sec. 533. Chnsta McAuUffe fellowships. 
"Sec. 534. Selection of Christa McAuIine Fellows. 
"Sec. 535. Evaluation of appUcations. 
"Sec. 536. Fellowship repajrment provisions. 
"Sec. 537. Secretary^ responsibilities. 
"Sec. 538. State application. 
"Sec. 539. Evaluation. 
"Sec. 540. Authorization of appropriations. 
"Subpart 3—^Teacher Corps 
"Sec. 541. Teacher Corps program authorized. 
"Sec. 542. Use of funds. 
"Sec. 543. Teacher Corps. 
"Sec. 544. State application. 
"Sec. 545. Scholarships. 
"Sec. 546. Scholarship conditions. 
"Sec. 547. Publication and recruitment. 
"Sec. 548. Authorization of appropriations. 
"PART D—INNOVATION AND RESEARCH 
"Subpart 1—^National Board for Professional Teaching Standards 
"Sec. 551. National Board for Professional Teaching Standards. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 453 
"Subpart 2—^Alternative Routes to Teacher Certification and Licensure 
"Sec. 552. Short title. 
"Sec. 553. Findings. 
"Sec. 554. Purpose. 
"Sec. 555. Allotments. 
"Sec. 556. State applications. 
"Sec. 557. Useoffiinds. 
"Sec. 558. Definition. 
"Sec. 559. Authorization of appropriations. 
"Subpart 3—Class Size Demonstration Grtmt 
"Sec. 561. Purpose. 
"Sec. 562. Program authorized. 
"Sec. 563. Program requirements. 
"Sec. 564. Application. 
"Sec. 565. Evaluation and dissemination. 
' 
"Sec. 565a. Authorization of appropriations. 
"Subpart 4—Middle School Teaching Demonstration Programs 
"Sec. 566. Statement of purpose. 
"Sec. 567. Definitions. 
' 
"Sec. 568. Program authorized. 
"Sec. 569. Application. 
"Sec. 570. Reports and information dissemination. 
"Sec. 570a. Authorization of appropriations. 
"PART E—MINORITY TEACHER RECRUITMENT 
"Subpart 1—^New Teaching Careers 
"Sec. 571. Statement of purpose. 
"Sec. 572. State grant authority; appUcations. 
"Sec. 573. Agreements. 
"Sec. 574. Application. 
"Sec. 575. Requirements. 
"Sec. 576. Special consideration. 
"Sec. 576a. Useoffiinds. 
"Sec. 576b. Definitions. 
"Sec. 576c. Authorization of appropriations. 
"Subpart 2—^Progr£uns to Encoiu-age Minority Students to Become Teachers 
"Sec. 577. Statement of purpose. 
"Sec. 578. Partnership grants authorized. 
"Sec. 579. Partnership agreement. 
"Sec. 580. Application for teacher partnerships program. 
"Sec. 580a. Teacher placement program. 
"Sec. 580b. Authorization of appropriations. 
'TART F—PROGRAMS F
O
R SPECIAL POPULATIONS 
"Subpart 1—^National Mini Corps Program 
"Sec. 581. National Mini Corps. 
"Subpart 2—^Foreign Language Instruction 
"Sec. 586. Demonstration grants for critical language and area studies. 
"Sec. 587. Development of foreign language anaculture instructional materials. 
"Subpart 3—Small State Teaching Initiative 
"Sec. 591. Model programs and educational excellence. 
"Subpart 4—^Faculty Development Grants 
"Sec. 593. Training grants. 
"Subpart 5—^Early Childhood Education Training 
"Sec. 596. Training in early childhood education and violence counseling. 
"Sec. 597. Early childhood staff training and professional enhancement. 
"Sec. 598. Report. 
"Sec. 599. Authorization of appropriations.". 
106 STAT. 454 
PUBLIC LAW 102-325—JULY 23, 1992 
TITLE VI—INTERNATIONAL EDUCATION PROGRAMS 
Sec. 601. Revision of title VI. 
"TITLE VI—INTERNATIONAL EDUCATION PROGRAMS 
"PART A—INTERNATIONAL A
N
D FOREIGN LANGUAGE STUDIES 
"Sec. 601. Findings and purposes. 
"Sec. 602. Graduate and undergraduate language and area centers. 
"Sec. 603. Language resource centers. 
"Sec. 604. Under^aduate international studies and foreign language programs. 
"Sec. 605. Intensive summer language institutes. 
"Sec. 606. Research- studies; annual report. 
"Sec. 607. Periodicals and other research materials published outside the Unit-
ed States. 
"Sec. 608. Selection of certain grant recipients. 
"Sec. 609. Equitable distribution of certain funds. 
"Sec. 610. American overseas research centers. 
"Sec. 610a. Authorization of appropriations. 
"PART B—BUSINESS A
N
D INTERNATIONAL EDUCATION PROGRAMS 
"Sec. 611. Findings and purposes. 
"Sec. 612. Centers for International Business Education. 
"Sec. 613. Education and training programs. 
"Sec. 614. Authorization of appropriations. 
"PART C—INSTITUTE FOR INTERNATIONAL PUBLIC POLICY 
"Sec. 621. Minority foreign service professional development program. 
"Sec. 622. Junior year abroad program. 
"Sec. 623. Masters degree in international relations. 
"Sec. 624. Internships. 
"Sec. 625. Report. 
"Sec. 626. Gins and donations. 
"Sec. 627. Authorization. 
"PART D—GENERAL PROVISIONS 
"Sec. 631. Definitions. 
"Sec. 632. Preservation of pre-1992 programs.". 
TITLE VII—CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF 
ACADEMIC FACILITIES 
Sec. 701. Purposes. 
Sec. 702. Prior rights and obligations. 
Sec. 703. Improvement of academic and library facilities. 
"PART A—IMPROVEMENT OF ACADEMIC AND LIBRARY FACiLrnES 
"Sec. 711. Short title. 
"Sec. 712. Findings. 
"Sec. 713. Distribution of assistance. 
"Sec. 714. Use of funds. 
"Sec. 715. Application. 
"Sec. 716. Authorization of appropriations.". 
Sec. 704. Historically black college and university capital financing. 
"PART B—HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING 
"Sec. 721. Findings. 
"Sec. 722. Definitions. 
"Sec. 723. Federal insurance for bonds. 
"Sec. 724. Limitations on Federal insurance for bonds issued by the designated 
bonding authori^. 
"Sec. 725. Authority of the secretary. 
"Sec. 726. Prohibition. 
"Sec. 727. HBCU Capital Financing Advisory Board. 
"Sec. 728. Minority business enterprise utilization.". 
Sec. 705. Consolidation of parts C and F. 
"PART C—LOANS FOR CONSTRUCTION, RECONSTRUCTION AND RENOVATION OF 
ACADEMIC, HOUSING, AND OTHER EDUCATIONAL FACiLmES 
"Sec. 731. Federal assistance in the form of loans. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 455 
"Sec. 732. Gteneral provisions. 
"Sec. 733. Apportionment. 
"Sec. 734. Definitions. 
"Sec. 735. Authorization of appropriations.". 
Sec. 706. Repeal of parts D, F, G, and J. 
Sec. 707. Redesignation of and amendments to part E. 
Sec. 708. Redesignation of and amendments to part H. 
TITLE VIII—COOPERATIVE EDUCATION 
Sec. 801. Cooperative education. 
"TITLE VIII—COOPERATIVE EDUCATION 
"Sec. 801. Statement of purpose; definition. 
"Sec. 802. Authorization of appropriations; reservations. 
"Sec. 803. Grants for cooperative education. 
"Sec. 804. Demonstration and innovation projects; training and resource cen-
ters; and research.". 
TITLE K—GRADUATE PROGRAMS 
Sec. 901. Graduate programs. 
"TITLE DC—GRADUATE PROGRAMS 
"Sec. 901. Purpose and administrative provisions. 
"PART A—GRANTS TO INSTITUTIONS AND CONSORTIA TO ENCOURAGE WOMEN AND 
MmoRrry PARTICIPATION IN GRADUATE EDUCATION 
"Sec. 911. Grants authorized. 
"Sec. 912. Submission and contents of application. 
"Sec. 913. Use of funds. 
"Sec. 914. Information collection. 
"Sec. 915. Authorization of appropriations. 
'TART B—PATRICIA ROBERTS HARRIS FELLOWSHIP PROGRAM 
"Sec. 921. Statement of purpose; designation. 
"Sec. 922. Program authorized. 
"Sec. 923. Award of fellowships. 
"Sec. 924. Authorization of appropriations. 
"PART C—JACOB K JAVITS FELLOWSHIP PROGRAM 
"Sec. 931. Award of Jacob K Javits fellowships. 
"Sec. 932. Allocation of fellowships. 
"Sec. 933. Stipends. 
"Sec. 934. Fellowship conditions. 
"Sec. 935. Authorization of appropriations. 
"PART D—GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED 
"Sec. 941. Purpose. 
"Sec. 942. Grants to academic departments and programs of institutions. 
"Sec. 943. Institutional eligibiUty. 
"Sec. 944. Criteria for applications. 
"Sec. 945. Awards to graduate students. 
-
"Sec. 946. Additional assistance for cost of education. 
"Sec. 947. Authorization of appropriations. 
"PART E—FACULTY DEVELOPMENT FELLOWSHIP PROGRAM 
"Sec. 951. Fellowships authorized. 
"Sec. 952. Fellowships. 
"Sec. 953. Application. 
"Sec. 954. FeUowship agreement. 
/ 
"Sec. 955. Fellowship repayment provisions. 
"Sec. 956. Exceptions to repajrment provisions. 
/ 
"Sec. 957. Authorization of appropriations. 
/ 
"PART F—ASSISTANCE FOR TRAINING IN THE LEGAL PROFESSION 
"Sec. 961. Program requirements. 
"Sec. 962. Authorization of appropriations. 
' 
106 STAT. 456 
PUBLIC LAW 102-325—JULY 23, 1992 
TART G—LAW SCHOOL CLINICAL EXPERIENCE PROGRAMS 
"Sec. 971. Program authorized. 
"Sec. 972. Apimcations. 
"Sec. 973. Authorization of appropriations.". 
TITLE X—POSTSECONDARY IMPROVEMENT PROGRAMS 
Sec. 1001. Fund for the improvement of postsecondary education. 
"PART A—FUND FOR THE IMPROVEMENT OP POSTSECONDARY EDUCATION 
"Subpart 1—^Program Authority 
"Sec. 1001. Fund for the improvement of postsecondary education. 
"Sec. 1002. National Board of the Fund tor the Improvement of Postsecondary 
Education. 
"Sec. 1003. Administrative provisions. 
"Sec. 1004. Authorization of appropriations. 
"Subpart 2—Special Projects in Areas of National Need 
"Sec. 1011. Special projects.". 
Sec. 1002. Amendments to part B. 
Sec. 1003. Women and minorities science and engineering outreach demonstration 
program. 
"PART C—WOMEN AND MINORITIES SCIENCE AND ENGINEERING OUTREACH 
DEMONSTRATION PROGRAM 
"Sec. 1061. Purpose. 
"Sec. 1062. Program authorized. 
"Sec. 1063. Eligible institutions. 
"Sec. 1064. Amoimt, duration, and use of funds. 
"Sec. 1065. Application. 
"Sec. 1066. Evaluation. 
"Sec. 1067. Federal share. 
"Sec. 1068. Supplement not supplant. 
"Sec. 1069. Authorization of appropriations.". 
Sec. 1004. DwightD. Eisenhower Leadership Program. 
"PART D—DWIGHT D. EISENHOWER LEADERSHIP PROGRAM 
"Sec. 1181. Short title; establishment of the program.". 
TITLE XI—COMMUNITY SERVICE PROGRAMS 
Sec. 1101. Urban community service. 
"TITLE XI—COMMUNITY SERVICE PROGRAMS 
"PART A—URBAN COMMUNITY SERVICE 
"Sec. 1101. Findings. 
"Sec. 1102. Purpose; program authorized. 
"Sec. 1103. Application 
ror 
urban community service grants. 
"Sec. 1104. Allowable activities. 
"Sec. 1105. Peer review. 
"Sec. 1106. Disbursement of funds. 
"Sec. 1107. Designation of urban grant institutions. 
"Sec. 1108. Definitions. 
"Sec. 1109. Authorization of appropriations. 
"PART B—INNOVATIVE PROJECTS 
"Subpart 1—Innovative Projects for Community Service 
"Sec. 1121. Statement of purpose. 
"Sec. 1122. Innovative projects for community service. 
"Subpsut 2—Student Literacy Corps and Student Mentoring Corps 
"Sec. 1141. Purpose. 
- 
- 
• 
"Sec. 1143. Uses of funds. 
PUBLIC LAW 102-325--JULY 23,1992 
106 STAT. 457 
"Sec. 1144. Applications. 
"Sec. 1145. Technical assistance and coordination contract. 
"Sec. 1146. Definition. 
"Subparts—Authorization of Appropriations 
"Sec. 1151. Authorization of appropriations.". 
TITLE XII—GENERAL PROVISIONS AND DEMONSTRATION PROGRAMS 
Sec. 1201. Definitions. 
Sec. 1202. Antidiscrimination. 
Sec. 1203. National Advisory Committee on Institutional Quality and Integrity. 
Sec. 1204. Disclosureof foreign gifts and foreign ownership. 
TITLE XIII—INDIAN HIGHER EDUCATION PROGRAMS 
PART A—TRIBALLY CONTROLLED COMMUNITY COLLEGES 
Sec. 1301. Reauthorization of the Tribally Controlled Community Colleges Act. 
PART B—HIGHER EDUCATION TRIBAL GRANT AUTHORIZATION ACT 
Sec. 1311. Short title. 
Sec. 1312. Findings. 
Sec. 1313. Program authority. 
Sec. 1314. Qualification for grants to tribes. 
Sec. 1315. Allocation of grant funds. 
Sec. 1316. Limitations on use of funds. 
Sec. 1317. Administrative provisions. 
PART C—CRITICAL NEEDS FOR TRIBAL DEVELOPMENT ACT 
Sec. 1321. Short title. 
Sec. 1322. Definitions. 
Sec. 1323. Service conditions permitted. 
Sec. 1324. Critical area service agreements. 
Sec. 1325. General provisions. 
PART D—INSTITUTE OF AMERICAN INDIAN NATIVE CULTURE AND ARTS DEVELOPMENT 
Sec. 1331. Institute of American Indian Native Culture and Arts Development. 
PART E—TRIBAL DEVELOPMENT STUDENT ASSISTANCE REVOLVING LOAN PROGRAM 
Sec. 1341. Short title. 
Sec. 1342. Findings; purposes. 
Sec. 1343. Revolvmg fund. 
Sec. 1344. Eligible recipients. 
Sec. 1345. Terms of loans. 
Sec. 1346. Service fulfillment and conditions; repayments; waivers. 
Sec. 1347. Administration. 
Sec. 1348. Authorization of appropriations. 
PART F—AMERICAN INDIAN POSTSECONDARY ECONOMIC DEVELOPMENT SCHOLARSHIP 
Sec. 1361. American Indian Postsecondary Economic Development Scholarship. 
Sec. 1362. Indian scholarships. 
Sec. 1363. Scholarship conditions. 
Sec. 1364. Report. 
Sec. 1365. Authorization of appropriations. 
PART G—AMERICAN INDIAN TEACHER TRAINING 
Sec. 1371. American Indian teacher training. 
TITLE XIV—STUDIES AND COMMISSIONS 
PART A—STUDIES B
Y THE DEPARTMENT O
F EDUCATION 
Sec. 1401. Study of role of guaranty agencies. 
Sec. 1402. Study of statutory protections. 
Sec. 1403. Study of 
fitiud-based 
defenses. 
Sec. 1404. Data on nontraditional students. 
Sec. 1405. Study of Federal benefit coordination. 
Sec. 1406. Nationalsurvey of factors associated with participation. 
Sec. 1407. Evaluation of tuition guaranty programs. 
Sec. 1408. Information on graduate education. 
Sec. 1409. Study of enviroimiental hazards in institutions of higher education. 
Sec. 1410. Study of civilian aviation training programs. 
106 STAT. 458 
PUBLIC LAW 102-325—JULY 23, 1992 
Sec. 1411. Report on the use of Pell Grants by prisoners. 
: .; 
Sec. 1412. National Job Bank for Teacher Recruitment. 
PART B—NATIONAL COMMISSION ON INDEPENDENT HIGHER EDUCATION 
Sec. 1421. Short title. 
Sec. 1422. Findings. 
Sec. 1423. Purpose. 
-
Sec. 1424. National Conunission on Independent Higher Education. 
Sec. 1425. Duties of the Commission. 
Sec. 1426. Report and recommendations. 
Sec. 1427. Powers of the Commission. 
Sec. 1428. Commission personnel matters. 
Sec. 1429. Termination of the Commission. 
PART C—NATIONAL COMMISSION ON THE COST OF HIGHER EDUCATION 
Sec. 1441. EstabUshment of Commission. 
Sec. 1442. Membership of Commission. 
> 
•. 
Sec. 1443. Functions of Commission. 
- 
. 
Sec. 1444. Powers of Commission. 
< .. 
Sec. 1445. Expenses of Commission. 
Sec. 1446. Termination of Commission. 
TITLE XV—RELATED PROGRAMS AND AMENDMENTS TO OTHER LAWS 
PART A—NATIONAL CENTER FOR THE WORKPLACE 
Sec. 1511. Purpose: designation. 
Sec. 1512. Establishment. 
, 
-. 
> -
Sec. 1513. Use of funds. 
Sec. 1514. Gifts and donations. 
Sec. 1515. Authorization. 
PART B—NATIONAL CLEARINGHOUSE FOR POSTSECONDARY EDUCATION MATERIALS 
Sec. 1521. National Clearinghouse for Postsecondary Education Materials. 
PART C—SCHOOL-BASED DECISIONMAKERS 
Sec. 1531. Training and technical assistance for school-based decisionmakers dem-
onstration program. 
PART D—GRANTS FOR SEXUAL OFFENSES EDUCATION 
Sec. 1541. Grants for campus sexual offenses education. 
PART E—OLYMPIC SCHOLARSHIPS 
Sec. 1543. Olympic scholarships. 
PART F—NEED-BASED AID 
Sec. 1544. Authority to award need-based aid. 
PART G—ADVANCED PLACEMENT FEE PAYMENT PROGRAM 
Sec. 1545. Advanced placement fee payment program. 
PART H—AMENDMENTS TO OTHER LAWS 
Sec. 1551. Higher education technical amendments. 
Sec. 1552. Library of Congress access to data. 
Sec. 1553. Liaison for community colleges. 
Sec. 1554. United States Institute of Peace. 
Sec. 1555. Law enforcement unit records. 
Sec. 1556. Excellence in Mathematics, Science and Engineering Education Act of 
1990. 
Sec. 1557. National and Community Service Act of 1990. 
Sec. 1558. Omnibus Budget ReconciUation Act of 1990. 
Sec. 1559. Special projecte for 2-year schools. 
PART I—BUY AMERICA 
Sec. 1561. Sense of Congress. 
20 u s e 1001 
SEC. 2. GENERAL EFFECTIVE DATE. 
Except as otherwise provided in this Act (20 U.S.C. 1001 et 
seq.), the amendments made by this Act shall taJae effect on October 
1,1992. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 459 
TITLE I—PARTNERSHIPS FOR 
EDUCATIONAL EXCELLENCE 
SEC. 101. REVISION OF TITLE I. 
Title I of the Act (20 U.S.C. 1001 et seq.) is amended to read 
as follows: 
^^ITLE I—PARTNERSfflPS FOR 
EDUCATIONAL EXCELLENCE 
"PART A—SCHOOL, COLLEGE, AND 
UNIVERSITY PARTNERSHIPS 
"SEC. 101. PURPOSE. 
20 USC 1001. 
"It is the purpose of this part to encourage partnerships between 
institutions of higher education or State higher education agencies 
and secondary schools serving low-income and disadvsintaged stu-
dents, to support programs that— 
"(1) improve the retention and graduation rates at such sec-
ondary schools; 
"(2) improve the academic skills of public and private non-
profit secondary school students; 
"(3) increase such students' opportunities to continue a pro-
gram of education after secondary school; and 
"(4) improve such students' prospects for emplo3mient after 
secondary school. 
«SEC. 102. AGREEMENT. 
20 USC 1002. 
"(a) AGREEMENT.—To be eligible for a grant under this part, 
an institution of higher education, a State higher education agency, 
or a consortium consisting of any of the preceding entities thereof 
shall enter into a written partnership agreement with a local edu-
cational agency. Such partnership may include businesses, labor 
organizations, professional associations, community-based organiza-
tions, pubhc television stations or other telecommunications enti-
ties, or other pubUc or private agencies or organizations. Each 
entity participating in the psirtnership shall sign the agreement. 
"(b) CONTENTS OF AGREEMENT.—^The agreement shall include— 
"(1) a Hsting of all participants in the partnership, including 
a designation of the official representatives of each entity par-
ticipating in the partnership; 
"(2) a description of the responsibilities of each psirticipant 
in tiie partnership; and 
"(3) a hsting of the resoxirces to be contributed by each 
participant in the partnership. 
"SEC. 103. GRANTS. 
20 USC 1003. 
"(a) DIVISION BETWEEN SCHOOL-YEAR AND SUMMER PROGRAMS.— 
From the fiinds appropriated to carry out this part pursuant to 
section 106, the Secretary shall reserve 65 percent of such funds 
to carry out programs operating during the regular school year 
and 35 percent of such funds to carry out programs operating 
during the summer. 
"(b) AMOUNT A
N
D USE OF GRANTS.— 
106 STAT. 460 
PUBLIC LAW 102-325—JULY 23, 1992 
Disadvantaged. 
Handicapped. 
Women. 
Minorities. 
20 u s e 1004. 
Regulations. 
"(1) AMOUNT.—^The Secretsiry shall make grants under this 
part in amounts which are not less than $250,000 and not 
more than $1,000,000. 
"(2) PERMITTED USES OF FUNDS.—Grsuits imder this part may 
be used by the partnership for programs that— 
"(A) use college students to tutor secondary school students 
and improve their basic academic skills or to involve secondary 
school students in commimiiy service-learning projects; 
''(B) are designed to improve the basic academic skills of 
secondary school students; 
"(C) are designed to increase the understanding of specific 
subjects of secondary school students; 
"(D) are designed to improve the opportunity to continue 
a program of education after graduation for secondary school 
students; and 
"(E) are designed to increase the prospects for employment 
after graduation of secondary school students. 
"(c) PREFERENCES.—In making grants under this peirt, the Sec-
retary shall give a preference to— 
"(1) programs which will serve predominantly low-income 
commimities; 
"(2) partnerships which will run programs during the regular 
school year and summer; 
"(3) programs which will serve educationally disadvantaged 
students; students with disabilities; potential dropouts; preg-
nant adolescents and teenage parents; children of migratory 
agricultural workers or of migratory fishermen; or students 
whose native language is other than English; and 
"(4) programs designed to encourage women and minorities 
who are tmderrepresented in the fields of science and mathe-
matics to pursue these fields. 
"(d) DURATION.—Each grant awarded imder this part may be 
awarded for a period not to exceed 5 yefirs. 
"(e) EQUITABLE GEOGRAPHIC DISTRIBUTION.—The Secretary shall 
award grants under this part in a manner that achieves an equi-
table geographic distribution of such grants. 
-SEC. 104. GRANT APPUCATION. 
"(a) APPLICATION REQUIRED.—^A partnership desiring to receive 
a grant under this part shall submit an appUcation to the Secretary, 
in such form and providing such information as the Secretary, 
by regulation, shall require. 
"(b) CONTENTS OF APPLICATION.—The application shall include— 
"(1) the partnership agreement described in section 102; 
"(2) a listing of the public and private nonprofit secondary 
school or schools to be involved in the program; 
"(3) a description of the activities £ind services for which 
assistance is sought; 
"(4) a description of the programs to be developed and oper-
ated by the partnership; and 
"(5) assurances to the Secretary that— 
"(A) the partnership will establish a governing body 
including one representative of each participant in the 
partnership; 
"(B) Federal funds will provide no more than 70 percent 
of the cost of the project in the first year, 60 percent 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 461 
of such costs in the second year, and 50 percent of such 
costs in the third year and any subsequent year; 
"(C) a local educational agency or institution of higher 
education receiving funds under this subpart shaU not 
reduce its combinedf fiscal effort per student or its aggregate 
expenditure on education; 
(D) a local educational agency or institution of higher 
education participating in this partnership shall utiUze 
any Federal fiinds it shall receive fi-om a grant under 
this part to supplement, and, to the extent practicable, 
increase the resources that would, in the absence of such 
Federal funds, be made available from non-Federal sources 
for the education of students described in this part; and 
"(E) in no case shall funds under such a grant be used 
to supplant non-Federal funds already available. 
"(c) SPECIAL RULE.—^The non-Federal share of grants awarded 
under this part may be in cash or in kind fairly evaluated, including 
services, supphes or equipment. 
"(d) WAIVER.—^The Secretary m ^ waive the matching require-
ment described in paragraph (5)(B) for any eligible partnership 
that demonstrates to the satisfaction of the Secretary a unique 
hardship that prevents compUance with such matching requirement. 
"SEC. 105. PEER REVIEW. 
20 USC 1005. 
"The Secretary shall designate a peer review panel to review 
applications submitted under this part and make recommendations 
for funding to the Secretary. In selecting the peer review panel, 
the Secretary shall consult with officials of the other Federal agen-
cies and with non-Federal organizations to ensure that the panel 
membership shall be geographically balanced and be composed of 
representatives from public and private institutions of elementary, 
secondary, and higher education, labor, business, and State and 
local governments, who have expertise in community service or 
in education. 
"SEC. 106. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1006. 
"There are authorized to be appropriated $20,000,000 for fiscal 
year 1993 and such simis as may be necessary for each of the 
^ 
4 succeeding fiscal years to carry out this part. 
"PART B—ARTICULATION AGREEMENTS 
"SEC. 121. FINDINGS AND PURPOSE. 
20 USC 1011. 
"(a) FINDINGS.—The Congress finds that— 
"(1) because more than one-half of all first-time first-year 
students attending postsecondary institutions attend commu-
nity or junior colleges, and because almost one-half of minority 
students enrolled in higher education attend 2-year institutions, 
commimity and jimior colleges represent a substantial and 
an important educational resource; 
"(2) declining participation rates for low-income students and 
minorities at institutions of higher education is of growing 
concern to the higher education community and Congress; and 
"(3) there is growing awareness of the need to assist low-
income, minority and other nontraditional students in bridging 
the gap between 2-year to 4-year institutions, enabling such 
students to reach their individual potential, as well as contrib-
ute to the larger society. 
106 STAT. 462 
PUBLIC LAW 102-325—JULY 23, 1992 
"(b) PURPOSE.—^The purpose of this part is to improve the edu-
cational opportunities of this Nation's postsecondary students by 
creating comprehensive articulation agreements and planning 
between partnerships of 2-year and 4-ye«ir institutions of higher 
20USC1011a. 
«SEC. 122. AUTHORIZATION OF GRANTS. 
"(a) 
ASSISTANCE 
FOR 
ARTICULATION 
PARTNERSHIPS.—From 
amoimts appropriated for this part, the Secretary shall make grants 
to States to enable States to make awards, either on a competitive 
basis or on the basis of a formula determined by the State, to 
articulation partnerships between— 
"(1) a qualified 2-year institution; and 
"(2) a qualified 4-ye£U" institution. 
**(b) QUALIFIED INSTITUTIONS.—For purposes of this part— 
"(1) a qualified 2-year institution is an institution of higher 
education (as determined under section 481(a)) that is an 
eligible institution under section 435(a) and that— 
*
*
(
A
) is a nonprofit institution that offers a 2-year associ-
ate degree or a 2-year certificate program; or 
"(B) is a proprietary institution that offers a 2-year asso-
ciate degree program; and 
"(2) a qualifiea 4-year institution is an institution of higher 
education (as determined imder section 481(a)) that is an 
eligible institution under section 435(a) and that offers a bacca-
V 
laureate degree program. 
"(c) ALLOCATION A
N
D STATE GRANTS.— 
"(1) FORMULA ALLOCATION.—In any fiscal year for which the 
amount made available under section 129 to carry out the 
provisions of this part equals or exceeds $50,000,000, the Sec-
retary shedl allot an amount that bears the same ratio to 
the amount appropriated under section 129 for such fiscal year 
as the total eimoimt received imder title IV by students attend-
ing institutions of higher education in that State for such 
fiscal year bears to the total amoimt received under title IV 
by all students for such fiscal year, based on the most recent 
year for which such data are available. 
"(2) COMPETITIVE GRANTS.—In any fiscal year for which the 
amount made available under section 129 to carry out the 
provisions of this part do not equal or exceed $50,000,000, 
the Secretjuy is authorized, in accordance with the provisions 
of this part, to make ^ants to States to carry out articulation 
agreements under sections 124 and 125. 
20 u s e 1011b. 
*«£€. 123. STATE APPUCATION. 
"Each Stete that desires to receive a grant under this part shall 
submit an application to the Secretary in such form and containing 
or accompanied by such information as the Secretary may require. 
Such application shall— 
(1) after consultation with the State agencies responsible 
for supervision of community colleges, technical institutes, or 
other 2-year postsecondary institutions, designate a sole State 
agency as the State agency responsible for the administration 
and supervision of activities carried out with assistance under 
this part; 
"(2) describe how funds will be allocated in a manner consist-
ent with section 124; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 463 
"(3) contain assurances that the State will comply with the 
requirements of this part; 
"(4) provide for an annual submission of data concerning 
the use of fiinds and students served with assistance under 
this part; and 
"(5) provide that the State will keep such records and provide 
such information to the Secretsiry as may be required for pur-
poses of financial audits and program evaluation. 
"SEC. 124. LOCAL APPLICATIONS. 
"Any articulation partnership comprised of quaHfied institutions 
that desires to receive a grant from a State imder this part shall 
submit an application to the State in such form and containing 
or accompanied by such information as the State may require 
and shall— 
"(1) include in the articulation agreement— 
"(A) assurances that academic credit earned at the quaU-
fied institution described in section 122(b)(1) will be 
transferable to the qualified institution or institutions as 
described in section 122(b)(2); 
"(B) development of articulation agreement programs and 
services appropriate to the needs of the partnership partici-
pants; 
"(C) activities that faciUtate the development of programs 
and services appropriate to the needs of the students 
attending courses covered by the articulation agreement; 
"(D) inservice training for faculty designed to implement 
effective articulation agreements; 
"(E) counseling services; and 
"(F) information concerning programs contained in the 
articulation agreement; 
"(2) include assurances that the articulation partnership has 
the qualified personnel required— 
"(A) to develop, administer, and implement the program 
required by this part; and 
(B) to provide special training necessary to prepare staff 
for the program; and 
"(3) include a plan of operation for the program which 
includes a description o
f
— 
"(A) the program goals; 
"(B) the uses of funds as required by paragraph (2); 
"(C) the activities and services which will be provided 
under the program (including training and preparation of 
staff); and 
"(D) the subject areas to be included in the articulation 
agreement. 
<«EC. 125. ARTICULATION AGREEMENT. 
"(a) LENGTH OF GRANT.—Each recipient of a grant from a State 
shall use the amoimts provided under the grant to develop and 
operate articulation agreements for 6 years. 
"(b) USE OF FUNDS.—Fimds provided to an articulation partner-
ship under this part may be used— 
"(1) to perform any activity or program required by section 
124; 
"(2) as part of the program's planning activities, to acquire 
technical assistance from Federal, State, or local entities that 
Records. 
20 u s e 1011c. 
20 u s e lOlld. 
106 STAT. 464 
PUBLIC LAW 102-325—JULY 23, 1992 
have successfully designed, established, and operated articula-
tion programs; 
"(3) to provide workshops with students and teachers, coun-
seling for students to continue their education to a bachelors 
degree, orientation visits at institutions participating in the 
partnerships; 
''(4) to develop agreements with local educational agencies 
for vocational course equivalency approval procedures for pur-
poses of satisfying entrance requirements to qualified institu-
tions; and 
"(5) to provide outreach to potential students. 
20USC1011e. 
<<SEC. 126. STATE ADMINISTRATION. 
*
*
A State may reserve not more than 3 percent of the amounts 
available under this part for any fiscal year for State administrative 
costs including monitoring and technical assistance. 
20USC1011f. 
"SEC. 127. PRIORITY. 
*The State shall give priority to grant applications for programs 
which— 
"(1) encourage teacher education; 
**(2) have, as one of the partners participating in an articula-
tion agreement, an entity participating in an eurticulation agree-
ment described in section 344(b)(1) of the Carl D. Perkins 
Vocational and Applied Technology Education Act; 
"(3) contribute their own institutional resources; 
"(4) are not subject to a default reduction agreement under 
section 428F; 
"(5) encourage technology education; or 
"(6) encourage articulation in subject areas of national impor-
tance as determined by the Secretary. 
20USC1011g. 
'^EC. 128. REPORTS. 
"(a) STATE REPORTS.—Each State shall submit to the Secretary 
an annual report on the operation of the program under this part 
in such State during the preceding year. Such report shall include 
such information as the Secretary may require by regulation. 
"(b) EVALUATION AND DISSEMINATION.— 
"(1) EVALUATION.—The Secretary shall, on the basis of the 
reports submitted under subsection (a), evaluate all or a sample 
of the programs conducted under this part for the purposes 
o
f
— 
"(A) determining the success or failure of such programs 
in increasing access and entry of students fi*om 2-year 
institutions to 4-year institutions; and 
"(B) identifying the most successfiil programs under this 
part and the causes for such success. 
"(2) DISSEMINATION.—The Secretary shall, not later than Jan-
UEiry 31, 1996, submit a report to the Congress on the results 
of tiie evaluation described in paragraph (1). The Secretary 
shall disseminate the findings made pursuant to subparagraph 
(B) through appropriate agencies and organizations. 
"(3) RESERVATION.—The Secretary may reserve up to 3 per-
cent of the amoimt appropriated under section 129 to carry 
out this subsection. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 465 
<nSEC. 129. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part, 
$25,000,000 for fiscal year 1993, and such sums as may be necessary 
for each of the 4 succeeding fiscal years. 
«PART C—ACCESS AND EQUITY TO EDUCATION 
FOR 
ALL AMERICANS 
THROUGH 
TELE-
COMMUNICATIONS 
20 u s e lOllh. 
^^EC. 131. PROGRAM ESTABUSHED; AUTHORIZATION OF APPROPRIA- 20 USC 1015. 
TIONS; EUGmiUTY. 
**(a) GENERAL AUTHORITY.—^The Secretary is authorized to make 
grants to eligible partnerships to enable such partnerships to pay 
the Federal share of the cost of the activities described in the 
application submitted pursuant to section 132. 
*(b) AUTHORIZATIONS OF APPROPRIATIONS.— 
"(1) IN GENERAL.—^There are authorized to be appropriated 
to carry out this part $10,000,000 for fiscal year 1993 and 
such sums as may be necessary for each of the 4 succeeding 
fiscal years. 
"(2) AVAILABILITY.—^Funds appropriated pursuant to the 
authority of paragraph (1) shall remain available until 
expended. 
"(c) ELIGIBLE PARTNERSHIP.—For the purpose of this part the 
term 'eUgible partnership' means a partnership which— 
"(1) shall consist o
f
— 
"(A) a public broadcasting entity or a consortium thereof; 
and 
"(B) an institution of higher education or a consortium 
thereof; and 
"(2) may also include a State, a imit of local government, 
or a public or private nonprofit organization. 
"(d) FEDERAL SHARE.—The Federal share shall be 50 percent. 
•*SEC. 132. APPUCATION. 
20 USC 1015a. 
"(a) IN GENERAL.—Each eligible partnership desiring to receive 
a grant under this part shall submit an application to the Secretary 
at such time, in such manner and containing or accompanied by 
such information as the Secretary may reasonably require. 
"(b) CONTENTS.—Each appUcation submitted pursuant to para-
graph (1) shall— 
"(1) describe the education telecommxmications activities or 
services to be assisted; 
"(2) describe the administrative and management structure 
supporting such activities or services; 
(3) provide assurances that the financial interests of the 
United States in the telecommunications equipment, software 
and other facilities shall be protected for the useful Ufe of 
such equipment, software or faciUties; 
"(4) describe the manner in which nontraditional postsecond-
ary education students will benefit from the activities and 
services supported; 
"(5) describe the manner in which special services, including 
captioned films, television, descriptive video and education 
media for individuals with disabiUties, shall be supported; and 
106 STAT. 466 
PUBLIC LAW 102-325—JULY 23, 1992 
"(6) provide assurances that the ehgible partnership will 
provide the non-Federal sheire of assistance under this part, 
"(c) APPROVAL OF APPLICATIONS.— 
"(1) IN GENERAL.—^The Secretary shall, in approving applica-
tions under this part, give priority to applications which 
describe programs tnat— 
Handicapped. 
"(A) include support for services to make captioned films, 
descriptive video and educational media available to 
individuals with disabilities who otherwise lack access to 
such educational materi£Js; 
"(B) will provide, directly or indirectly, activities or serv-
ices to a significant number of postsecondary institutions; 
"(C) improve access to accredited telecommunications 
coursework for individuals with disabilities otherwise 
denied such access; 
"(D) will be available in a multistate area; 
"(E) include evidence of significant support for the pro-
gram from the business community; or 
"(F) provide matching funds, in an amount which exceeds 
the required non-Federal share. 
"(2) EQUITABLE GEOGRAPHIC DISTRIBUTION OF ASSISTANCE.— 
In approving applications imder this part the Secretary shall 
ensure the equitable geographic distribution of grants awarded 
under this part. 
20 u s e 1015b. 
"SEC. 133. AUTHORIZED ACTrVITIES. 
"Grants awarded under this part shall be used for one or more 
of the following activities: 
"(1) The acquisition of site equipment to provide the technical 
ability to receive diverse education services at schools, cam-
puses, and work site locations. 
"(2) Satellite, fiber optic and other distribution systems, and 
for local broadcast or other local distribution capability. 
"(3) Pre-service or in-service education and training for kin-
dergarten through 12th grade teachers through interactive tele-
vision conferencing. 
,; . 
"(4) Preparation of telecommunications programs and soft-
ware that support national, regional or statewide efforts to 
provide teaching and learning materials not otherwise available 
for local use. 
"(5) A loan service of captioned films, descriptive video and 
educational media in order to make such materials available, 
in accordance with regulations issued by the Secretary, in the 
United States for nonprofit purposes to individuals with disabil-
ities, parents of individuals with disabilities, and other individ-
uals directly involved in activities for the advancement of 
individuals with disabilities, including addressing problems of 
illiteracy among individuals with disabilities. 
20 u s e 1015c. 
"SEC. 134. DEFINinON. 
"For the purpose of this part, the term 'public broadcasting entity* 
has the same meaning given to such term by section 397(11) of 
the Communications Act of 1934. 
20USC1015d. 
"SEC 136. REPORT. 
"(a) IN GENERAL.—Each recipient of a grant under this part 
shall submit a report to the Secretary not later than 30 days 
after the conclusion of the grant period. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 467 
**(b) CONTENTS.—Each report described in subsection (a) shall 
include— 
"(1) a description of activities and services assisted under 
this part; 
"(2) a description of the population served by the program; 
and 
"(3) an assessment of the ability of private sector entities 
participating in the eligible partnership to continue the support 
of the activities and services in the absence of Federal funcung. 
"(c) DISSEMINATION.—The Secretary shall select reports received 
under this subsection that are appropriate for dissemination to 
the education communi^ and shall make such reports available 
through the National Difinision Network.". 
TITLE II—ACADEMIC LIBRARY AND IN-
FORMATION TECHNOLOGY ENHANCE-
MENT 
SEC. 201. REVISION OF TITLE n. 
Title II of the Act (20 U.S.C. 1021 et seq.) is amended to read 
as follows: 
"TITLE II—ACADEMIC LIBRARIES AND 
INFORMATION SERVICES 
<<SEC. 201. PURPOSE; AUTHORIZATION. 
20 USC 1021. 
"(a) PURPOSE.—^The Secretary shall carry out a program to 
£issist— 
"(1) college and university libraries in acquiring technological 
equipment and in conducting research in information tech-
nology in accordance with part A; 
"(2) in the education and training of persons in hbrary and 
information science and to encourage research and development 
relating to improvement of libraries (including the promotion 
of economical and effective information deUvery, cooperative 
efforts, and developmental projects) in accordance with part 
B; 
**(3) the Nation's mcgor research libraries, in maintaining 
and strengthening their collections, and in making information 
resources available to other libraries whose users have need 
for research materials in accordance with part C; and 
**(4) historically black colleges and universities and other Minorities, 
minority-serving institutions with programs in library and 
information sciences to train and educate African-Americans 
and other imderrepresented racial, national origin, and ethnic 
minorities in such programs in accordance with part D. 
*
*
(
b
) AUTHORIZATION OP APPROPRIATIONS.— 
"(1) PART A.—^There are authorized to be appropriated to 
carry out part A $20,000,000 for fiscal year 1993 and such 
sums as may be necessary for each of the 4 succeeding fiscal 
years. 
"(2) PART B.—^There £ire authorized to be appropriated to 
carry out part B $10,000,000 for fiscal year 1993 and such 
106 STAT. 468 
PUBLIC LAW 102-325—JULY 23, 1992 
sums as may be necessary for each of the 4 succeeding fiscal 
years. 
"(3) PART C.—^There are authorized to be appropriated to 
carry out part C $20,000,000 for fiscal year 1993 and such 
sums as may be necessary for each of the 4 succeeding fiscal 
years. 
"(4) PART D.—^There £ire authorized to be appropriated to 
carry out part D $15,000,000 for fiscal year 1993 and such 
svuns as may be necessary for each of the 4 succeeding fiscal 
years. 
20 use 1022. 
"SEC. 202. NOTIFICATION OF STATE AGENCY. 
"Each institution of higher education which receives a grant 
imder this title shall annually inform the State agency designated 
pursuant to section 1203 of its activities under this title. 
20USC1023. 
«SEC. 203. LIBRARY EXPERTS. 
"The Secretary shall make every effort to ensure that programs 
under this title are administered by appropriate library experts. 
*'PART A—COLLEGE LIBRARY TECHNOLOGY 
AND COOPERATION GRANTS 
20USC1029. 
"SEC. 211. COLLEGE LIBRARY TECHNOLOGY AND COOPERATION 
GRANTS. 
"(a) GRANTS AUTHORIZED.—The Secretary is authorized to make 
grants for technological equipment, networking, and other special 
purposes to— 
"(1) institutions of higher education which demonstrate a 
need for special assistance for the planning, development, 
acquisition, maintenance, or upgrading of technological equip-
ment necessary to organize, access or utilize material in elec-
tronic formats and to participate in networks for the accessing 
and sharing of library and information resources; 
"(2) combinations of institutions of higher education which 
demonstrate a need for special assistance in estabhshing and 
strengthening joint-use library facilities, resources, or equip-
ment for the accessing and sharing of library and information 
resources; 
"(3) other public and private nonprofit organizations which 
provide libra^ sind information services to institutions of higher 
education on a formal, cooperative basis for the purpose of 
estabhshing, developing, or expanding progrsims or projects 
that improve the services provided by such organizations to 
institutions of higher education; and 
.^- 
"(4) institutions of higher education conducting research or 
demonstration projects that improve information services to 
meet special national or regional needs by utiHzing technology 
to enhance Ubrary or information services such as through 
the National Research and Education Network. 
"(b) AWARDS REQUIREMENTS.—From fimds appropriated for this 
part, the Secretary shall make competitive awards to institutions, 
combinations of institutions, or organizations in each of the cat-
V 
egories described in paragraphs (1) through (4) of subsection (a). 
"(c) AMOUNT.— 
"(1) IN GENERAL.—The Secretary shall award grants imder 
this section in an amoimt which is not less than $25,000. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 469 
"(2) SPECIAL RULE.—^The Secretary shall award grants pursu-
ant to paragraph (1) of subsection (a) in an amount which 
is not more than $50,000 for each institution of higher edu-
cation. 
"(d) PRIORITY.—In awarding grants pursuant to paragraph (1) 
of subsection (a), the Secretary shall give priority to institutions 
of higher education seeking assistance for projects which assist 
developing institutions of higher education in Unking one or more 
institutions of higher education to resource sharing networks. 
"(e) DURATION.—^The Secretary shall award grants under this 
section for a period not to exceed 3 years. 
"(f) APPLICATION.— 
"(1) IN GENERAL.—Each institution of higher education or 
combination thereof desiring a grant under this section shall 
submit an application to the Secretary at such time, in such 
manner and accompanied by such information as the Secretary 
may reasonably require. 
"(2) CONTENT.—Each appUcation submitted pursuant to para-
graph (1) shaU— 
"(A) describe the activities and services for which assist-
ance is sought; and 
"(B) contain assurances that the applicant will expend 
during the period for which the grant is sought (from 
funds other than funds received under this title), for the 
same purpose as such grant, an amoiuit from such other 
sources equal to not less than one-third of such grant. 
"(3) CRITERL\.—The Secretary shall prescribe by regiUation Regulations. 
criteria for the approval of appUcations submitted under this 
section. 
"PART B—LIBRARY EDUCATION, RESEARCH, 
AND DEVELOPMENT 
«SEC. 221. GRANTS AUTHORIZED. 
20 USC 1031. 
"(a) GRANTS.—From the amounts appropriated for this part for 
any fiscal year, the Secretary shall make grants in accordance 
with sections 222 and 223. 
"(b) RESERVATION.—Of the amoimt appropriated for this part 
for any fiscal year, the Secretary shall make available two-thirds 
of such amount for the purpose of section 222 and one-third of 
such amount for the purpose of section 223. 
«SEC. 222. LIBRARY EDUCATION AND HUMAN RESOURCE DEVELOP- 20 USC 1032. 
MENT. 
"(a) PURPOSE AND GRANT CRITERIA.—The Secretary is authorized 
to make grants to, and enter into contracts with, institutions of 
higher education and library organizations or agencies to assist 
such institutions, library organizations, or agencies in educating 
and training persons in hbrary and information science, particularly 
in areas of critical needs, such as recruitment and retention of 
minorities. Such grants or contracts may be used by such institu-
tions, library organizations, or agencies to— 
"(1) assist in covering the cost of courses of study or staff 
development 
(including short term 
or regular 
session 
institutes), 
"(2) estabUsh and maintain fellowships or traineeships with 
stipends (including allowances for travel, subsistence, and other 
106 STAT. 470 
PUBLIC LAW 102-325—JULY 23, 1992 
expenses) for fellows who demonstrate need and who are work-
ing toward a graduate degree (and their dependents), not in 
excess of such maximum amounts as may be determined by 
the Secretary, and 
"(3) establish, develop, or expand programs of Ubrary and 
information science, including new techniques of information 
transfer and communication technology. 
"(b) ADDITIONAL REQUIREMENTS.—Not less than 50 percent of 
the grants made under this section shall be for the purpose of 
establishing and maintaining fellowships or traineeships under sub-
section (a)(2). 
20 use 1033. 
«SEC. 223. RESEARCH AND DEMONSTRATION. 
"The Secretary is authorized to make grants to, and enter into 
contracts with, institutions of higher education and other public 
and private agencies, institutions, and organizations for research 
and development projects related to the improvement of libraries, 
education in library and information science, the enhancement of 
Hbraiy services through effective and efficient use of new tech-
nologies, and for the dissemination of information derived from 
such projects. 
20 use 1034. 
"SEC. 224. CONSULTATION REQUIREMENTS. 
'The Secretary shcdl consult with the appropriate library and 
information science professional bodies in the determination of criti-
C£j needs rnider section 222 and in the determination of priorities 
under section 223. 
**PART C—IMPROVING ACCESS TO RESEARCH 
LIBRARY RESOURCES 
20 use 1041. 
«SEC. 231. RESEARCH LIBRARY RESOURCES. 
"(a) GRANTS.— 
"(1) GENERAL AUTHORITY.—From the amount appropriated 
for this part, the Secretary shall make grants to institutions 
with major research libraries. 
"(2) MAJOR RESEARCH LIBRARY.—For the purposes of this 
part, the term 'major research librar}^' means a public or private 
nonprofit institution (including the library resources of an 
institution of higher education), an independent research 
library, or a State or other public library, having a library 
collection which is available to qualified users and which— 
"(A) makes a significant contribution to higher education 
and research; 
"(B) is broadly based and is recognized as having national 
or international significsince for scholarly research; 
"(C) is of a unique nature, and contains material not 
widely available; and 
"(D) is in substantial demand by researchers and scholars 
not connected with that institution. 
"(b) ELIGIBILITY.—In determining eligibility for assistance under 
this part, the Secretary shall permit institutions that do not other-
wise quahfy to provide additional information or documents to 
demonstrate the national or international significance for scholarly 
research of the particular collection described in the grant proposal. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 471 
'*8EC. 232. GEOGRAPHICAL DISTRIBUTION OF GRANTS. 
20 USC 1042. 
"In making grants under this part, the Secretary shall endeavor 
to achieve broad and equitable geographical distribution throughout 
the Nation. 
"PART D—STRENGTHENING LIBRARY AND IN-
FORMATION SCIENCE PROGRAMS AND LI-
BRARIES IN fflSTOmCALLY BLACK COL-
LEGES AND UNIVERSITIES AND OTHER MI-
NORITY-SERVING INSTITUTIONS 
"SEC. 241. STRENGTHENING LIBRARY AND INFORMATION SCIENCE 
20 USC 1047. 
PROGRAMS AND LIBRARIES IN HISTORICALLY BLACK 
COLLEGES AND UNIVERSITIES AND OTHER MINORITY-
SERVING INSTITUTIONS. 
"(a) ELIGIBLE INSTITUTIONS.—^For the purposes of this section, 
the term 'eligible institution' means— 
"(1) an historically black college or university; or 
"(2) an institution of higher education which— 
"(A) serves a large number or high percentage of minority 
students; and 
"(B) enrolls and graduates minority students in Hbrary 
and information service programs. 
"(b) GENERAL AUTHORITY.— 
"(1) AUTHORITY OF SECRETARY.—The Secretary is authorized 
to make grants to, and enter into contracts with— 
"(A) eligible institutions to assist such institutions in 
strengthening their library and information science pro-
grams and library resources; and 
"(B) eligible institutions, and library organizations or 
agencies which have nationally approved programs in 
library and information science, to assist such institutions 
and organizations in the education and training of African 
Americans and other underrepresented racial, national 
origin, and ethnic minorities, particularly in areas of criti-
cal needs of library and information science. 
"(2) USE OF FUNDS.—Such grants or contracts may be used 
by such institutions, hbrary organizations, or agencies to— 
"(A) establish, develop, or strengthen Ubraries and library 
and information science programs, including new tech-
niques of information transfer and communication tech-
nology; 
"(B) assist in covering the cost of courses of study or 
staff development (including short-term or regular session 
institutes); and 
"(C) establish and maintsiin fellowships or traineeships 
with stipends (including allowances for travel, subsistence, 
and other expenses) for fellows who demonstrate need and 
who are working toward a graduate degree (and their 
dependents), not in excess of such maximum amounts as 
may be determined by the Secretary. 
"(c) TRAINEESHIPS.—^Not less than 50 percent of the grants made 
under this section shall be for the purpose of establishing and 
maintaining fellowships or traineeships under subsection Ta)(2). 
106 STAT. 472 
PUBLIC LAW 102-325-JULY 23, 1992 
"(d) FUNDING PROHIBITION.—^Notwithstanding any other provision 
of law, no funds are authorized to be appropriated to carry out 
this part for any fiscal year unless the amount appropriated to 
carry out each of parts A, B, and C for such fiscal year equals 
or exceeds the amount appropriated for such parts, respectively, 
for fiscal year 1992.". 
TITLE III—INSTITUTIONAL AID 
SEC. 301. FINDINGS. 
Section 301(a) of the Act (20 U.S.C. 1051(a)) is amended— 
(1) by amending paragraph (1) to read as follows: 
"(1) there eire a significant number of institutions of higher 
education serving high percentages of minority students and 
students 
fi*om 
low-income backgrounds, that face problems that 
threaten their ability to survive;". 
(2) in paragraph (2), by striking **recruitment activities,"; 
and 
(3) by amending paragraph (5) to read as follows: 
"(5) providing assistance to eligible institutions will enhance 
the role of such institutions in providing access and quality 
education to low-income and minority students;". 
SEC. 302. AMENDMENTS TO PART A. 
(a) ELIGIBLE INSTITUTIONS.—Section 312(b) of the Act (20 U.S.C. 
1058(b)) is amended— 
(1) in paragraph (1)— 
(A) by inserting "and" after the semicolon at the end 
of subparagraph (D); 
(B) by striking subparagraph (E); 
(C) by redesignating subparagraph (F) as subparagraph 
(E); and 
^ 
(D) by inserting "and" after the semicolon at the end 
of subparagraph (E) (as redesignated in subparagraph (C)); 
(2) by striking the semicolon at the end of paragraph (2) 
and inserting a period; and 
(3) by strikbig paragraphs (3), (4), and (5). 
(b) ENROLLMENT OP NEEDY STUDENTS.—Section 312(c)(2) of the 
Act is amended by striking "second preceding fiscal year" and 
inserting "second fiscal year preceding the fiscal year for which 
the determination is made". 
(c) AWARD LIMITATIONS.—Subsections (a) and (b) of section 313 
of the Act (20 U.S.C. 1059 (a) and (b)) are amended to read as 
follows: 
"(a) AWARD PERIOD.—^The Secretary may award a grant to an 
eligible institution imder this part for 5 years. 
"(b) LIMITATIONS.—In awarding grants under this part the Sec-
retary shall give priority to applicants who are not already receiving 
a grant imder this part.". 
(d) PROGRAM GOALS AND HISPANIC-SERVING INSTITUTIONS PRO-
GRAM.— 
(1) IN GENERAL.—Part A of title III of the Act (20 U.S.C. 
1057 et seq.) is further amended by inserting aftier section 
314 the following new sections: 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 473 
'«EC. 316. GOALS FOR FINANCIAL MANAGEMENT AND ACADEMIC PRO-
GRAM. 
"(a) GOALS.—^Any application for a grant under this part shall 
describe measurable goals for the institution's financial manage-
ment and academic programs, and include a plan of how tiie 
applicant intends to achieve those goals. 
"(b) CONTINUATION REQUIREMENTS.—Any continuation applica-
tion shall demonstrate the progress made toward achievement of 
the goals described pursuant to subsection (a). 
«SEC. 316. mSPANIC-SERVING INSTITUTIONS. 
**(a) PROGRAM AUTHORIZED.—The Secretary shall provide grants 
and related assistance to Hispemic-serving institutions to enable 
such institutions to improve and expand their capacity to serve 
Hispanic and otiier low-income students. 
"(b) DEFINITIONS.—For the purpose of this section— 
"(1) the term 'Hispanic-serving institution* means an institu-
tion of higher education which— 
"(A) is an eUgible institution under section 312(b); 
"(B) at the time of application, has an enrollment of 
undergraduate full-time equivalent students that is at least 
25 percent Hispanic students; 
"(C) provides assurances that— 
"(i) not less than 50 percent of its Hispanic students 
are low-income individuals who are first generation 
college students; and 
"(ii) another 25 percent of its Hispanic students are 
either low-income individuals or first generation college 
students; 
"(2) the term 'first generation college student' means— 
"(A) an individual both of whose parents did not complete 
a baccalaureate degree; or 
"(B) in the case of £uiy individual who regularly resided 
with and received support 
firom 
only one parent, an individ-
ual whose only such parent did not complete a bacca-
laureate degree; and 
"(3) the term low-income individual' means an individual 
fi*om a family whose taxable income for the preceding year 
did not exceed 150 percent of an amount equal to the poverty 
level determined by using criteria of poverty established by 
the Bureau of the Census. 
"(c) AUTHORIZED ACTIVITIES.— 
"(1) TYPES OF ACTIVITIES AUTHORIZED.—Grants awarded 
under this section shall be used by Hispanic-serving institutions 
of higher education to assist such institutions to plan, develop, 
undertake, and carry out programs. Such programs may 
include— 
"(A) purchase, rental, or lease of scientific or laboratory 
equipment for educational purposes, including instructional 
and research purposes; 
"(B) renovation and improvement in classroom, library, 
laboratory, and other instructional facilities; 
"(C) sum)ort of faculty exchanges, and faculty develop-
ment and faculty fellowships to assist in attaining advanced 
degrees in their field of instruction; 
"(D) curricxilum development and academic instruction; 
20 use 1059b. 
Disadvantaged. 
20 use 1059c. 
106 STAT. 474 
PUBLIC LAW 102-325—JULY 23, 1992 
"(E) purchase of library books, periodicals, microfilm, 
and other educational materials; 
"(F) funds and administrative management, and acquisi-
tion of equipment for use in strengthening fiinds manage-
ment; 
"(G) joint use of facilities such as laboratories and librar-
ies; and 
"(H) academic tutoring and counseling programs and stu-
dent support services. 
"(d) APPLICATION PROCESS.— 
"(1) 
INSTITUTIONAL 
ELIGIBILITY.—Each 
Hispanic-serving 
institution desiring to receive assistsuice under this Act shall 
submit to the Secretary such enrollment data as may be nec-
essary to demonstrate that it is a Hispanic-serving institution 
as defined in paragraph (1) of subsection (b), along with such 
other information and data as the Secretsuy may by regulation 
require. 
"(2) APPLICATIONS.—^Any institution which is determined by 
the Secretary to be a Hispanic-serving institution (on the basis 
of the information and data submitted imder paragraph (1)) 
may submit an application for assistance under this section 
to the Secretary. Such application shall include— 
"(A) a 5-year plan for improving the assistance provided 
?. 
by the Hispanic-serving institution to Hispanic and other 
low-income students; and 
"(B) such other information and assurance as the Sec-
retary may require. 
"(3) PRIORITY.—The Secretary shall give priority to applica-
tions that contain satisfactory evidence that such institution 
has entered into or will enter into a collaborative arrangement 
with at least one local educational agency to provide such 
agency with assistance (fi*om funds other than funds provided 
under this part) in reducing Hispanic dropout rates, improving 
Hispanic rates of academic achievement, and increasing the 
rates at which Hispanic high school graduates enroll in higher 
education. 
"(e) SPECIAL RULE.—For the purposes of this section, no Hispanic-
serving college or \miversity which is ehgible for and receives funds 
imder this section may concurrently receive other fiinds under 
this part or part B.". 
' 
SEC. 303. AMENDMENTS TO PARTS. 
(a) USES OF FUNDS.—Section 323(a) of the Act (20 U.S.C. 1062(a)) 
is £imended— 
(1) in paragraph (2), by inserting ", including purchase or 
rental of telecommunications technology equipment or services" 
after "facilities"; 
(2) in paragraph (5), by inserting ", including telecommuni-
cations program materials" after "materials"; and 
(3) by inserting at the end thereof the following new para-
graphs: 
"(9) Establishing or improving a development office to 
strengthen or improve contributions fi*om alumni and the pri-
vate sector. 
"(10) Estabhshing or enhancing a program of teacher edu-
cation designed to qualify students to teach in a public 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 475 
elementary or secondary school in the State that shall include, 
as part of such program, preparation for teacher certification. 
"(11) EstablisMng commimity outreach programs which will 
encourage elementary and secondary students to develop the 
academic skills and the interest to pursue postsecondary edu-
cation. 
"(12) Other activities proposed in the apphcation submitted 
pursuant to section 325 that—-
"(A) contribute to carrying out the purposes of this part; 
and 
"(B) are approved by the Secretary as part of the review 
and acceptance of such apphcation.". 
(b) LIMITATIONS.—Section 323(b) of the Act (20 U.S.C. 1062(b)) 
is amended by inserting at the end thereof the following new 
paragraph: 
"(3) The Secretary shall not award a grant under this part 
for telecommunications technology equipment, facilities or serv-
ices, if such equipment, faciUties or services are available pursu-
ant to section 396(k) of the Commimications Act of 1934.". 
(c) ALLOTME^rT.—Section 324(c) of the Act (20 U.S.C. 1063(c)) 
is amended by inserting ", within 5 years of graduation with a 
baccalaureate degree," after "who are admitted to and in attendance 
at". 
(d) MINIMUM ALLOTMENTS.—Section 324(d) of the Act is amended 
by striking "$350,000" and inserting "$500,000". 
(e) GOALS FOR FINANCIAL MANAGEMENT AND ACADEMIC PRO-
GRAMS.—Section 325 of the Act (20 U.S.C. 1063a) is amended by 
adding at the end the following new subsection: 
"(c) GOALS FOR FINANCIAL MANAGEMENT AND ACADEMIC PRO-
GRAMS.—^Any application for a grant imder this part shall describe 
measurable goals for the institution's financial management and 
academic programs and include a plan of how the applicant intends 
to achieve those goals.". 
(f) PROFESSIONAL OR GRADUATE INSTITUTIONS. 
(1) ELIGIBLE INSTITUTIONS.—Section 326(e) of the Act (20 
U.S.C. 1063b(e)) is amended to read as follows: 
"(e) ELIGIBILITY.— 
"(1) IN GENERAL.—Independent professional or graduate 
institutions and programs ehgible for grants under subsection 
(a) include— 
"(A) Morehouse School of Medicine; 
"(B) Meharry Medical School; 
"(C) Charles R. Drew Postgraduate Medical School; 
"(D) Clark-Atlanta University; 
"(E) Tuskegee University School of Veterinary Medicine; 
"(F) Xavier University School of Pharmacy; 
"(G) Southern University School of Law; 
"(H) Texas Southern University School of Law and School 
of Pharmacy; 
"(I) Florida A&M University School of Pharmaceutical 
Sciences; 
"(J) North Carolina Central University School of Law; 
"(K) Morgan State University quaUfied graduate pro-
gram; 
"(L) Hampton University qualified graduate program; 
"(M) Alabama A&M quedined graduate program; 
106 STAT. 476 
PUBLIC LAW 102-325—JULY 23, 1992 
"(N) North Carolina A&T State University qualified grad-
uate program; 
"(O) University of Maryland Eastern Shore qualified 
graduate program; and 
"(P) Jackson State qualified graduate program. 
"(2) QUALIFIED GRADUATE PROGRAM.—For the purposes of 
this section, the term 'qualified graduate program' means a 
graduate or professional program that— 
"(A) provides a program of instruction in the physical 
or natural sciences, engineering, mathematics, or other 
scientific discipline in which African Americans are 
underrepresented; 
"(B) has been accredited by a nationally recognized 
accrediting agency or association or has been approved 
by a nationally recognized approving agency; and 
"(C) has students enrolled in such program at the time 
of application for a grant under this section. 
Termination 
- 
"(3) SPECIAL RULE.—Graduate institutions that were awarded 
^^- 
grants imder this section prior to October 1, 1992 shall continue 
to receive such grant pajnnents, regardless of the eligibility 
of the graduate institutions described in subparagraphs (F) 
through (P), until such grant period has expired or September 
30,1993, whichever is later. 
"(4) ONE G
R
A
N
T PER INSTITUTION.—The Secretary shall not 
award more than 1 grant imder this section in any fiscal 
year to any institution of higher education or imiversity sys-
tem.", 
(g) FUNDING RULES FOR GRADUATE AND PROFESSIONAL INSTITU-
20 use 1063b. 
TIONS.—Section 326 of the Act is fiirther amended by adding at 
the end the following new subsection: 
"(f) FUNDING RULE.—Of the amoimt appropriated to carry out 
this section for any fiscal year— 
"(1) the first $12,000,000 (or any lesser amoimt appropriated) 
shall be available only for the purposes of making grants to 
institutions or programs described in subparagraphs (A) 
through (E) of subsection (e)(1); 
"(2) any amount appropriated in excess of $12,000,000 shall 
be availaole— 
"(A) for the purposes of making grants, in equal amounts 
not to exceed $500,000, to institutions or programs 
described in subparagraphs (F) through (P) of subsection 
(e)(1); and 
"(B) secondly for the purposes of making grants to institu-
tions or programs described in subparagraphs (A) through 
(P) of subsection (e)(1).". 
SEC. 304. AMENDMENTS TO PART C. 
(a) PROGRAM CONSOLIDATION.—Part C of title III of the Act (20 
U.S.C. 1064 et seq.) is amended— 
(1) by amending the heading of such part to read as follows: 
"PART C—ENDOWMENT CHALLENGE GRANTS FOR INSTITUTIONS 
ELIGIBLE FOR ASSISTANCE UNDER PART A OR PART B"; 
20 use 1064. 
(2) by striking section 331; and 
20 use 1065. 
(3) by redesignating section 332 as section 331. 
(b) ENDOWMENT CHALLENGE GRANTS.—Section 331 of the 
Act 
(20 U.S.C. 1065) (as redesignated in subsection (a)(3)) is amended— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 477 
(1) in subsection (a)— 
(A) in paragraph (1), by sticking "of higher education"; 
and 
(B) in paragraph (2), by inserting at the end thereof 
the following new subpara^aph: 
"(D)(i) The term 'eligible institution' means £in institution 
that is an— 
"(I) eligible institution under part A or would be 
considered to be such an institution if section 
312(b)(1)(C) referred to a postgraduate degree rather 
than a bachelor's degree; 
"(II) institution eligible for assistance under part 
B or would be considered to be such an institution 
if section 324 referred to a postgraduate degree rather 
than a baccalaureate degree; or 
"(III) institution of lugher education that makes a 
substantial contribution to postgraduate medical edu-
cational opportunities for minorities and the economi-
cally disadvantaged, 
"(ii) The Secretary may wgiive the requirements of 
subclauses (I) and (II) of clause (i) with respect to a post-
graduate degree in the case of any institution otherwise 
eligible under clause (i) for an endowment challenge grant 
upon determining that the institution makes a substantial 
contribution to medical education opportunities for minori-
ties and the economically disadvantaged."; 
(2) in subsection (b)(1)— 
(A) by inserting "endowment" before "challenge grants"; 
and 
(B) by striking "of higher education"; and 
(3) in subsection (b)(2), by amending subparagraphs (B) and 
(C) to read as follows: 
"(B) The Secretary may make a grant under this part 
to an eligible institution under the following circumstemces: 
"(i) In any fiscal year in which the amount appro-
priated to carry out this part is less than $15,000,000, 
the institution— 
"(I) may apply for a grant in an amount not 
exceeding $500,000; and 
"(II) shall have deposited in its endowment fund 
established under this section an amount which 
is equal to one-half of the amount of such grant, 
"(ii) In any fiscal year in which the amount appro-
priated to carry out this part is equal to or greater 
than $15,000,000 but less than $25,000,000, the 
institution— 
"(I) may apply for a grant in an amount not 
exceeding $1,000,000; and 
"(II) shall have deposited in its endowment fiind 
established under this section an amount which 
is equal to one-half of the amount of such grant, 
"(iii) In any fiscal year in which the amount appro-
priated to carry out this part is equal to or greater 
than $25,000,000, the institution may apply for a grant 
in an amount not to exceed $1,500,000 if such institu-
tion has deposited in its endowment fund established 
106 STAT. 478 
PUBLIC LAW 102-325—JULY 23, 1992 
vmder this section an amount which is equal to one-
half of the amount of such grant. 
"(C)(i) Except as provided in clause (ii), if the appropria-
tion for this part in a fiscal year is $20,000,000 or less, 
an eligible institution of higher education that is awarded 
a grant under subsection (b)(2)(B) of this section shall 
not be eligible to reapply for a grant under subsection 
(b)(2)(B) of this section during the 10 years immediately 
following the period that such institution received such 
a grant. 
"(ii) If the appropriation for this part in any fiscal year 
is greater than $20,000,000, an eligible institution of higher 
education that is awarded a grant under subsection 
(b)(2)(B) of this section shall not be eligible to reapply 
for a grant rnider subsection (b)(2)(B) of this section during 
the 5 years immediately following the period that such 
institution received such a grant. This provision shall apply 
for the fiscal year in which the appropriation is greater 
than $20,000,000 and subsequent fiscal years, regardless 
of the appropriation in those fiscal years."; 
(4) in subsection (b)(4)(A), by striking "section 331(a)(1)" and 
inserting "subsection (a)(2)(D) of this section"; 
(5) in subsection (b)(4)(B), by striking "a challenge grant 
under this section" and inserting "an endowment challenge 
grant under this section"; 
(6) by amending paragraph (5) of subsection (b) to read as 
follows: 
"(5) an endowment challenge grant awarded under this sec-
tion to an eligible institution shall be in an amount which 
is not less than $50,000 in any fiscal year.". 
(7) by amending paragraph (1) of subsection (f) to read as 
follows: 
"(1) give priority to an applicant that is receiving assistance 
under part A or part B or has received a grant under part 
A or part B of this title within the 5 fiscal years preceding 
the fiscal year in which the applicant is appl3dng for a grant 
under this section;"; and 
(8) in subsection (g), by inserting before the period at the 
end of the first sentence the following: ", including a description 
of the long- and short-term plans for raising and using the 
funds under this part". 
SEC. 305. AMENDMENTS TO PART D. 
(a) CONTENTS OF APPLICATIONS.—Section 351(b)(7) of the Act 
(20 U.S.C. 1066(b)(7)) is amended— 
(1) by striking subparagraph (D); and 
(2) by redesignating subparagraphs (E) and (F) as sub-
paragraphs (D) and (E), respectively. 
(b) WAIVER AUTHORITY.—Section 352(a) of the Act (20 U.S.C. 
1067(a)) is amended in the matter preceding paragraph (1) by 
striking "shall" and inserting "may". 
(c) REPEALERS.—Sections 355 and 359 of the Act (20 U.S.C. 1069a 
and 1069e) are each repealed. 
(d) ASSISTANCE TO INSTITUTIONS UNDER OTHER PROGRAMS.—Sec-
tion 356(a) of the Act (20 U.S.C. 1069b(a)) is amended by striking 
"shall" and inserting "ma/'. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 479 
(e) AUTHORIZATIONS.—Section 360(a) of the Act is amended to 20 use I069f. 
read as follows: 
"SEC. 360. (a) AUTHORIZATIONS.— 
"(1) PART A.—(A) There are authorized to be appropriated 
to carry out part A, $135,000,000 (other than section 316) 
for fiscal year 1993, and such sums as may be necessary for 
each of the 4 succeeding fiscal vears. 
"(B)(i) There are aumorized to be appropriated to carry out 
section 316, $45,000,000 for fiscal year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years. 
"(ii) No funds are authorized to be appropriated pursuant 
to clause (i) for any fiscal year imless the amount appropriated 
pursuant to paragraph (1)(A) for such fiscal year equals or 
exceeds $80,000,000. 
"(2) PART B.—(A) There are authorized to be appropriated 
to carry out part B (other than section 326), $135,000,000 
for fiscal year 1993, and such smns as may be necessary for 
each of the 4 succee(hng fiscal years. 
"(B) There are authorized to be appropriated to carry out 
section 326, $20,000,000 for fiscal year 1993, and such sums 
as may be necessary for each of the 4 succeeding fiscal years. 
"(3) PART C.—^There are authorized to be appropriated to 
carry out part C, $50,000,000 for fiscal year 1993, and such 
sums as may be necessary for each of the 4 succeeding fiscal 
years.". 
(f) RESERVATIONS.—Section 360(c) of the Act is amended by strik-
ing "1986—" and paragraphs (1) and (2) and inserting the following: 
"1986, the Secretary shall, for such fiscal year— 
"(1) allocate 25 percent of the excess (above the amount 
appropriated for part A for fiscal year 1986) among eUgible 
institutions at which at least 60 percent of the students are 
African Americans, Hispanic Americans, Native Americans, 
Asian Americans, Native Hawaiians, or Pacific Islanders, or 
any combination thereof; and 
"(2) allocate 75 percent of such excess among other eligible 
institutions.". 
(g) ADDITIONAL RESERVATION.—Section 360 is further amended 
by adding at the end thereof the following new subsection: 
"(e) ADDITIONAL RESERVATION.—In any fiscal year beginning after 
September 30, 1992, the Secretary shall award at least 25 percent 
of the amount appropriated piu*suant to the authority of paragraph 
(3) of subsection (a) in each fiscal year to historically black coUeges 
and universities that meet the requirements of part C, unless 
there are an insufficient number of quality appfications or an 
insufficient number of applications due to the provisions in sub-
section (b)(2)(C) or subsection (b)(4)(B) of section 331.". 
TITLE IV—STUDENT ASSISTANCE 
PART A—GRANTS TO STUDENTS IN ATTEND-
ANCE AT INSTITUTIONS OF HIGHER EDU-
CATION 
SEC. 401. FEDERAL PELL GRANT PROGRAM. 
(a) AUTHORIZATION.—Section 411(a)(1) of the Act (20 U.S.C. 
1070a(aXl)) is amended— 
106 STAT. 480 
PUBLIC LAW 102-325—JULY 23, 1992 
(1) by striking "September 30, 1992," and inserting "Septem-
ber 30, 1998,"; and 
(2) by striking "paragraph (2)" and inserting "subsection (b)". 
20 use 1070a. 
(b) NAME OF PROGRAM.—Section 411(aX3) of the Act is amended 
by striking "as 'Pell Greints*" and inserting "as Tedercd Pell 
Grants'". 
/ 
(c) PROPORTION OP COST.—Section 411(bXl) of the Act is 
amended— 
(1) by striking "(A) as determined" and all that follows 
through "and (B)"; 
(2) by striking "parental or independent student" and insert-
ing *^amily and student"; 
(3) by striking "subparts 2 and 3" and inserting "subparts 
- 
3 and 4"; and 
(4) by striking "will meet 75 percent" and inserting "will 
meet at least 75 percent". 
(d) GRANT AMOUNTS.— 
(1) MAXIMUM GRANT AMOUNTS.—Section 411(bX2XA) of the 
Act is amended by striking clauses (i) through (v) and inserting 
the following: 
"(i) $3,700 for academic year 1993-1994, 
"(ii) $3,900 for academic year 1994-1995, 
"(iii) $4,100 for academic year 1995-1996, 
"(iv) $4,300 for academic year 1996-1997, and 
"(v) $4,500 for academic year 1997-1998,". 
(2) GRANT AMOUNTS FOR LESS-THAN-HALF-TIME STUDENTS.— 
Section 411(bX2XB) of the Act is amended in the first sentence 
therein— 
(A) by inserting immediately after "full-time basis" the 
foUowing: "(including a student who attends an institution 
of higher education on less than a half-time basis)"; and 
(B) by inserting before the period at the end thereof 
the following: ", computed in accordance with this subpart". 
(3) DETERMINATION OF GRANT AMOUNTS BASED ON NEED.— 
Section 411(bX3) of the Act is amended to read as follows: 
"(3XA) For any academic year for which an appropriation Act 
provides a maximum basic grant in an amount in excess of $2,400, 
the amount of a student's basic grant shall equal $2,400 plus— 
"(i) one-half of the amount by which such maximum basic 
grant exceeds $2,400; plus 
"(ii) the lesser o
f
— 
"(I) the remaining one-half of such excess; or 
"(II) the sum of the student's tuition and the student's 
allowance 
determined 
under 
subparagraph 
(B), if 
applicable. 
"(B) For purposes of subparagraph (AXiiXII), a student's allow-
ance is $750 if the student has dependent care expenses (as defined 
in section 472(8)) or disability related expenses (as defined in section 
472(9)).". 
(4) CONFORMING AMENDMENT.—Section 411(bX4) of the Act 
is amended by striking "41 IF" and inserting "472". 
(5) MINIMUM GRANT AMOUNTS.—Section 411(bX5) of the Act 
is amended by striking "$200" and inserting "$400, except 
that a student who is eUgible for a basic grant l^at is equal 
to or greater than $200 but less than $400 shall be awarded 
a basic grant of $400". 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 481 
(6) EXCEPTION TO MAXIMUM PELL GRANT AWARD; STUDY 
ABROAD; INCARCERATED STUDENTS.—Section 411(b) of the Act 
is further amended by striking paragraphs (6) and (7) and 
inserting the following: 
"(6) The Secretary may allow, on a case-by-case basis, a student 
to receive 2 Pell grants during a single 12-month period, i
f
— 
*
*
(
A
) the student is enrolled fiill-time in a baccalaureate degree 
program of study that is 2 years or longer at an eligible institu-
tion that is computed in credit hours; and 
''(B) the student completes course work toward completion 
of a bachelor's degree that exceeds the requirements for a 
fidl academic year as defined by the institution. 
"(7) Notwithstanding any other provision of this subpart, the 
Secretary shall allow the amount of the basic grant to be exceeded 
for students participating in a program of study abroad approved 
for credit by the institution at which the student is enrolled when 
the reasonable costs of such program are greater than the cost 
of attendance at the student's home institution, except that the 
£imount of such basic grant in any fiscal year shall not exceed 
the grant level specified in the appropriate Appropriation Act for 
this subpart for such year. If the preceding sentence applies, the 
financisQ £dd administrator at the home institution may use the 
cost of the study abroad program, rather than the home institution's 
cost, to determine the cost of attendance of the student. 
"(8)(A) No basic grant shall be awarded to an incarcerated student 
imder this subpart that exceeds the simi of the amount of tuition 
and fees normally assessed by the institution of higher education 
for the course of study such student is pursuing plus an edlowance 
(determined in accordance with regulations issued by the Secretary) 
for books and supplies associated with such course of study, except 
that no bsisic grant shall be aw£irded to any incarcerated student 
serving under sentence of death or any life sentence without eligi-
bility for parole or release. 
"(B) Basic grants under this subpart shall only be awarded to 
incarcerated individuals in a State if such grants are used to 
supplement and not supplant the level of postsecondary education 
assistance provided by such State to incarcerated individuals in 
fiscal year 1988.". 
(e) PERIOD OF ELIGIBILITY.— 
(1) 
REMOVAL OF ACADEMIC YEAR LIMITATIONS.—Section 
411(c)(1) is amended by striking everything following "except 
that" and inserting "any period during which the student is 
enrolled in a noncredit or remedial course of study as defined 
in paragraph (2) shall not be coimted for the purpose of this 
paragraph.". 
(2) CLARIFICATION OF ELIGIBILITY FOR STUDY ABROAD.—Sec-
tion 411(c)(2) of the Act is amended by adchng at the end 
thereof the following new sentence: "Nothing in this section 
shall exclude fi*om eligibility programs of study abroad that 
are approved for credit by tiie home institution at which the 
student is enrolled.". 
(f) CALCULATION OF ELIGIBILITY.—Section 411(f) of the Act is 
amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph (A), by striking 
"an estimate of the eUgibiUly index" and inserting ", as 
59-194 O—93 
17:QL3(Ptl) 
106 STAT. 482 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 1070a. 
20 use 1070d— 
1070d-ld. 
20 use 1070b et 
seq., 1070c et sea. 
20 use 1070, 
1070a. 
Disadvantaged. 
20 use 
1070a-ll. 
a part of its regular output document, the expected family 
contribution"; 
(B) in subparagraph (A) by striking "eligibility index" 
and inserting "expected family contribution"; 
(C) in subparagraph (B), by striking "eKgibiUty index" 
and inserting "expected family contribution"; and 
(D) in subparagraph (D), by striking "eligibiUty index" 
£ind inserting "expected family contribution"; and 
(2) in paragraph (3), by striking "eligibility index" £ind insert-
ing "expected family contribution ; 
(g) INSUFFICIENT APPROPRIATIONS.—Section 411(g) of the Act is 
amended to read as follows: 
"(g) INSUFFICIENT APPROPRIATIONS.—If, for any fiscal year, the 
funds appropriated for pa3nnents under this subpart are insufficient 
to satisfy fiilly all entitlements, as calculated under subsection 
(b) (but at the maximum grant level specified in such appropriation), 
the Secretary shall promptly transmit a notice of such insufficiency 
to each House of tiie Congress, and identify in such notice the 
additional Eimount that would be required to be appropriated to 
satisfy fiilly aU entitlements (as so calculated at such maximum 
grant level).", 
(h) TREATMENT OF RECIPIENTS.—Section 411(i) of the Act is 
amended— 
(1) by striking "NONCONTRACTOR STATUS OF INSTITUTIONS" 
and inserting "TREATMENT OF INSTITUTIONS AND STUDENTS 
UNDER OTHER LAWS"; and 
(2) by adding at the end the following new sentence: "Recipi-
ents of Pell Grants shall not be considered to be individual 
grantees for purposes of part D of title V of Public Law 100-
690.". 
(i) UNIFICATION OF NEEDS ANALYSIS SYSTEMS.—Subpart 1 of part 
A of title IV of the Act is amended by striking sections 411A 
through 411F (20 U.S.C. 1070a-l through 1070a-6). 
SEC. 402. FEDERAL EARLY OUTREACH AND STUDENT SERVICES PRO-
GRAMS. 
(a) AMENDMENTS.—Part A of title IV of the Act (20 U.S.C. 1070 
et seq.) is amended— 
(1) by repealing subpart 4; 
(2) by redesignating subparts 2 and 3 as subparts 3 and 
4, respectively; 
(3) by redesignating sections 401 and 411 as sections 400 
and 401, respectively; and 
(4) by inserting after section 401 (as redesignated by para-
graph (3)) the following new subpart: 
^Subpart 2—^Federal Early Outreach and Student 
Services Programs 
**CHAPTER 1—FEDERAL TRIO PROGRAMS 
«SEC. 402A. PROGRAM AUTHORITY; AUTHORIZATION OF APPROPRIA-
TIONS. 
"(a) GRANTS AND CONTRACTS AUTHORIZED.—The Secretary shall, 
in accordance with the provisions of this chapter, carry out a pro-
gram of making grants and contracts designed to identify quaUfied 
individuals from disadvantaged backgrounds, to prepare them for 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 483 
a progrsun of postsecondary education, to provide support services 
for such students who are pursuing programs of postsecondary 
education, to motivate and prepare students for doctoral programs, 
and to train individueds serving or preparing for service in programs 
and projects so designed. 
"(b) RECIPIENTS, DURATION, AND SIZE.— 
"(1) RECIPIENTS.—For the purposes described in subsection 
(a), the Secretary is authorized, without regard to section 3709 
of the Revised Statutes (41 U.S.C. 5), to make grants to, and 
contracts with, institutions of higher education, public and pri-
vate agencies and orgsinizations, combinations of such institu-
tions, agencies and organizations, and in exceptional cir-
cumstances, secondary schools, for planning, developing, or car-
rying out one or more of the services assisted under this chap-
ter. 
"(2) DURATION.—Grants or contracts made under this chapter 
shall be awarded for a period of 4 years, except that the 
Secretary shall award such grants or contracts for 5 years 
to appUcants whose peer review scores were in the highest 
10 percent of scores of all appUcants receiving grants or con-
tracts in each program competition for the same award year. 
"(3) MINIMUM GRANT LEVEL.—In any year in which the appro-
priations authorized under this chapter exceed the prior year 
appropriation as adjusted for inflation, the SecretEiry shall use 
80 percent of the amount appropriated above the current serv-
ices level to bring each award up to the minimmn grant level 
or the amount requested by the institution or agency, whichever 
is less. The minimum grant level (A) for programs authorized 
under section 402D or 402G, shall not be less than $170,000 
for fiscal year 1993; (B) for programs authorized imder section 
402B or 402F shall not be less than $180,000 for fiscal year 
1994; and (C) for programs authorized under section 402C 
or 402E shall not be less than $190,000 for fiscal year 1995. 
"(c) PROCEDURES FOR AWARDING GRANTS AND CONTRACTS.— 
"(1) PRIOR EXPERIENCE.—^In making grants and contracts 
under this chapter, the Secretary shaU consider the prior 
^[perience of service dehvery under the particular program 
for which funds are sought by each appUcant. For fiscal years 
after 1985, the level of consideration given to prior experience 
shall not vary from the level of consideration given this factor 
for fiscal year 1985. 
"(2) ORDER OF AWARDS; PROGRAM FRAUD.—(A) Except as pro-
vided in subparagraph (B), the Secretary shall award grants 
and contracts under this chapter in the order of the scores 
received by the application for such grant or contract in the 
peer review process required under section 1210 and adjusted 
tor prior experience in accordance with paragraph (1). 
"CB) The Secretary is not required to provide assistance to 
a program otherwise eUgible for assistance imder this chapter, 
if the Secretary has determined that such program has involved 
the firaudulent use of fiinds under this chapter. 
"(3) PEER REVIEW PROCESS.—(A) The Secretary shall assure 
that, 
to 
the 
extent 
practicable, 
members 
of 
groups 
underrepresented in higher education, including Afi*ican Ameri-
cans, Hispanics, Native Americans, Alaska Natives, Asian 
Americans, Native American Pacific Islanders (including Native 
Hawaiians), are represented as readers of appUcations submit-
106 STAT. 484 
PUBLIC LAW 102-325—JULY 23, 1992 
ted under this chapter. The Secretary shall also assure that 
persons from urban and rural backgrounds are represented 
as readers. 
"(B) The Secretary shall ensure that each application submit-
ted under this chapter is read by at least 3 readers who are 
not employees of the Federal Government (other than as read-
ers of applications). 
"(4) APPLICATION STATUS.—The Secretary shall inform each 
entity operating programs under this chapter regarding the 
status of their application for continued funding at least 8 
months prior to the emiration of the grant or contract. The 
Secretary, in the case of an entity that is continuing to operate 
a successful program under this chapter, shall ensure that 
the start-up date for a new grant or contract for such program 
immediately follows the termination of preceding grant or con-
tract so that no interruption of funding occurs for such success-
ful reappKcants. The Secretary shall imorm each entity request-
ing assistance under this subpart for a new program regarding 
the status of their appUcation at least 8 months prior to the 
proposed startup date of such program. 
"(5) NUMBER OF APPLICATIONS FOR GRANTS AND CONTRACTS.— 
The Secretary shall not limit the nimiber of applications submit-
ted by an entity under any program authorized under this 
chapter if the additional applications describe programs serving 
different populations or campuses. 
"(6) 
(JOORDINATION WITH OTHER PROGRAMS FOR DIS-
ADVANTAGED 
STUDENTS.—^The 
Secretary 
shall 
encourage 
coordination of programs assisted under tMs chapter with other 
programs for disadvantaged students operated by the sponsor-
ing institution or agency, regardless of the funding source of 
such programs. The Secretary shall not Umit an entity's eligi-
bility to receive funds under this chapter because such entity 
sponsors a program similar to the program to be assisted imder 
this chapter, regardless of the funding source of such program. 
The Secretary shall not require a sepsirate Director to admin-
ister a program ftmded under this chapter if the imposition 
of such requirement will hinder coordination among programs 
funded imder this chapter or between programs funded under 
this subpart and similar programs funded through other 
sources. 
"(d) OUTREACH.— 
"(1) IN GENERAL.—The Secretary shall conduct outreach 
activities to ensure that entities ehgible for assistance under 
this chapter submit applications proposing programs that serve 
geographic areas and eligible populations which have been 
underserved by the programs assisted under this chapter. 
"(2) NOTICE.—In canying out the provisions of paragraph 
(1), the Secretary shall notify the entities described in sub-
section (b) of the availabiUty of assistance imder this subsection 
not less than 120 days prior to the deadline for submission 
of applications under this chapter and shall consult national. 
State, and regional organizations about candidates for notifica-
tion. 
"(3) TECHNICAL ASSISTANCE.—The Secretary shall provide 
technical training to applicants for projects and pro-ams 
authorized imder this chapter. The Secretary shall give priority 
to serving programs and projects that serve geographic areas 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 485 
and eligible populations which have been imderserved by the 
programs assisted under this chapter. Technical training activi-
ties shall include the provision of information on authorizing 
legislation, goals and objectives of the program, required activi-
ties, eUgibuily requirements, the application process and 
application deadlines, and assistance m the development of 
program proposals and the completion of program appUcations. 
Such training shall be furnished at conferences, semmars, and 
workshops to be conducted at not less than 10 sites throughout 
the United States to ensure that all areas of the United States 
with large concentrations of ehgible participants are served. 
"(4) SPECIAL RULE.—^The Secretary may contract with ehgible 
entities to conduct the outreach activities described in this 
subsection. 
"(e) DOCUMENTATION OF STATUS AS A LOW-INCOME INDIVIDUAL.— 
Documentation of an individual's status pursuant to subsection 
(g)(2) shall be made— 
"(1) in the case of an individual who is eighteen years of 
age or younger or a dependent student by providing the Sec-
retary with a signed statement from the parent or legal guard-
ian, verification from another governmental source, a signed 
financial aid application, or a signed United States or Puerto 
Rican income tax return; and 
"(2) in the case of an individual who is age 18 or older 
or who is an independent student, by providing the Secretary 
with a signed statement from the individual, verification from 
another governmental source, a signed financial aid form, or 
a signed United States or Puerto Rican income tax return. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of mak-
ing grants and contracts xmder this chapter, there are authorized 
to be appropriated $650,000,000 for fiscal year 1993, and such 
sums as may be necessary for each of the 4 succeeding fiscal 
years. Of the amount appropriated imder this chapter, the Secretary 
may use no more than V2 of 1 percent of such amount to obtain 
admtional quahfied readers and additional stafT to review applica-
tions, to increase the level of oversight monitoring, to support 
impact studies, program assessments and reviews, and to provide 
technical assistance to potential applicants and current grantees. 
In e:!q)ending these fimds, the Secretary shsQl give priority to the 
additional administrative requirements provided in the Higher Edu-
cation Amendments of 1992, to outreach activities, and to obtaining 
additional readers. The Secretary shall report to Congress by Octo- Reports, 
ber 1,1994, on the use of these funds. 
"(g) DEFINITIONS.—For the purpose of this chapter: 
"(1) FIRST GENERATION COLLEGE STUDENT.—The term 'first 
generation college student' means— 
"(A) an individual both of whose parents did not complete 
a baccalaureate degree; or 
"(B) in the case of any individusd who regularly resided 
with and received support from only one parent, an individ-
ual whose only such parent did not complete a bacca-
laureate degree. 
"(2) LOW-INCOME INDIVIDUAL.—The term low-income individ-
ual' means an individual from a family whose taxable income 
for the preceding year did not exceed 150 percent of an amount 
equal to the poverty level determined by using criteria of pov-
erty established by the Bureau of the Census. 
106 STAT. 486 
PUBLIC LAW 102-325—JULY 23,1992 
"(3) VETERAN ELIGIBILITY.—^No veteran shall be deemed ineli-
gible to participate in any program under this chapter by 
reason of such individual's age who— 
''(A) served on active dutyr for a period of more than 
180 days, any part of which occurred after January 31, 
1955, and was discharged or released therefrom under 
conditions other than dishonorable; or 
"(B) served on active duty after January 31, 1955, and 
was discharged or released therefrom because of a service 
connected disabihty. 
20 use 
''SEC. 402B. TALENT SEARCH. 
"(a) PROGRAM AUTHORITY.—^The Secretary shall carry out a pro-
gram to be known as talent search which shall be designed— 
"(1) to identify qualified youths with potential for education 
at the postsecondary level and to encourage such youtiis to 
complete secondary school and to undertake a progreun of post-
secondary education; 
"(2) to pubUcize the availabiUty of student financial assistance 
available to persons who pursue a program of postsecondeuy 
education; and 
''(3) to encourage persons who have not completed programs 
of education at the secondary or postsecondary level, but who 
have the abiUty to complete sucn programs, to reenter such 
programs. 
*
*
(
b
) PERMISSIBLE SERVICES.—^Any talent search project assisted 
under this chapter may provide services such as— 
''(1) academic advice and assistance in secondary school and 
college course selection; 
"(2) assistance in completing college admission and financial 
aid applications; 
''(3) assistance in preparing for college entrance examinations; 
"(4) guidance on secondary school reentry or entry to general 
educational development (GED) programs or other alternative 
education programs for secondary school dropouts; 
"(5) personcQ and career counseling; 
**(6) tutorial services; 
''(T) exposure to college campuses as well as cultural events, 
academic programs and other sites or activities not usually 
available to disadvantaged youth; 
"(8) workshops and counseling for parents of students served; 
"(9) mentoring programs involving elementary or secondary 
school teachers, faculty members at institutions of higher edu-
cation, students, or anv combination of such persons; and 
''(10) programs and activities as described in paragraphs 
(1) through (9) which are specially designed for students of 
limited EngUsh proficiency, 
"(c) REQUIREMENTS FOR APPROVAL OF APPLICATIONS.—In approv-
ing appUcations for talent search projects under this chapter for 
any 
fiscal 
year the Secretary shall— 
''(I) require an assurance that not less than two-thirds of 
the individuals participating in the project proposed to be car-
ried out under any application be low-mcome mdividuals who 
are first generation college students; 
"(2) require that such participants be persons who either 
have completed 5 years of elementary education or are at 
least 11 years of age but not more than 27 years of age, 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 487 
unless the imposition of any such limitation with respect to 
any person would defeat the purposes of this section or the 
purposes of section 402F; 
"(3) require an assurance that individuals participating in 
the project proposed in the application do not have access 
to services from another project funded under this section or 
under section 402F; and 
"(4) require an assurance that the project will be located 
in a settmg accessible to the persons proposed to be served 
by the project. 
"SEC. 402C. UPWARD BOUND. 
20 USC 
"(a) PROGRAM AUTHORITY.—^The Secretary shall carry out a pro-
gram to be known as upweird bound which shall be designed to 
generate skills and motivation necessary for success in education 
beyond secondary school. 
"(b) PERMISSIBLE SERVICES.—^Any upward bound project assisted 
xinder this chapter may provide services such as— 
"(1) instruction in reading, writing, study skills, mathematics, 
and other subjects necessary for success beyond secondary 
school; 
"(2) personal counseling; 
"(3) academic advice and assistance in secondary school 
course selection; 
"(4) tutorial services; 
"(5) exposure to culttiral events, academic progrsims, and 
other activities not usually available to disadvantaged youth; 
"(6) activities designed to acquaint youths participating in 
the project with the range of career options available to them; 
"(7) instruction designed to prepare youths participating in 
the project for careers in which persons from disadvantaged 
backgroimds are particuleirly underrepresented; 
"(8) on-campus residential programs; 
"(9) mentoring programs involving elementary or secondary 
school teachers, faculty members at institutions of higher edu-
cation, students, or any combination of such persons; and 
"(10) programs and activities as described in paragraphs 
(1) through (9) which are specially designed for students of 
limited English proficiency. 
"(c) REQUIRED SERVICES.—^Any upward bound project assisted 
imder this chapter which has received funding for two or more 
years shall include, as part of the core curriculum in the next 
and succeeding years, instruction in mathematics through 
precalculus, laboratory science, and foreign language, composition, 
and literature. 
"(d) REQUIREMENTS FOR APPROVAL OF APPLICATIONS.—In approv-
ing applications for upweird bound projects under this chapter for 
any fiscal year, the Secretary shall— 
"(1) require an assurance that not less than two-thirds of 
the youths participating in the project proposed to be carried 
out under any application be low-income individuals who are 
first generation college students; 
"(2) require an assurance that the remaining youths partici-
pating in the project proposed to be carried out under any 
appUcation be either low-income individuals or first generation 
college students; 
106 STAT. 488 
PUBLIC LAW 102-325—JULY 23, 1992 
"(3) require that there be a determination by the institution, 
with respect to each participant in such project that the partici-
pant has a need for academic support in order to pursue suc-
cessfully a program of education beyond secondary school; and 
"(4) require mat such participants be persons who have com-
pleted 8 years of elementeiry education emd are at least 13 
years of age but not more than 19 years of age, unless the 
imposition of any such limitation would defeat the piuposes 
of this section. 
"(e) MAXIMUM STIPENDS.—^Youths participating in a project pro-
posed to be carried out under any application may be paid stipends 
not in excess of $60 per month during June, July, and August, 
and not in excess of $40 per month during the remaining period 
of the year. 
20 use 
•«EC. 402D. STUDENT SUPPORT SERVICES. 
"(a) PROGRAM AUTHORITY.—^The Secretary shall carry out a pro-
gram to be known as student support services which shall be 
designed— 
"(1) to increase college retention and graduation rates for 
eligible students; 
"(2) to increase the tr£m.sfer rates of eligible students from 
2-year to 4-year institutions; and 
"(3) to foster an institutional climate supportive of the success 
of low-income and first generation college students and individ-
uals with disabilities. 
"(b) PERMISSIBLE SERVICES.—^A student support services project 
assisted under this chapter may provide services such as— 
"(1) instruction in reading, writing, study skills, mathematics, 
and other subjects necessary for success beyond secondary 
school; 
"(2) personal counseling; 
"(3) academic advice and assistance in course selection; 
"(4) tutorial services and counseling and peer counseling; 
"(5) exposure to cultural events and academic programs not 
usually available to disadvantaged students; 
"(6) activities designed to acquaint students participating 
in the project with the range of career options available to 
them; 
"(7) activities designed to assist students participating in 
the project in securing admission and financial assistance for 
enrollment in graduate and professional programs; 
"(8) activities designed to assist students currently enrolled 
in 2-year institutions in securing admission and financial assist-
ance for enrollment in a four-year program of postsecondary 
education; 
"(9) mentoring programs involving faculty or upper class 
students, or a combination thereof; and 
"(10) programs and activities as described in paragraphs 
(1) through (9) which are specially designed for students of 
limited English proficiency. 
"(c) REQUIREMENTS FOR APPROVAL OF APPLICATIONS.—In approv-
ing applications for student support services projects under this 
chapter for any 
fiscal 
year, the Secretary shall— 
"(1) require an assurance that not less than two-thirds of 
the persons participating in the project proposed to be carried 
out under any application— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 489 
"(A) be individuals with disabilities; or 
"(B) be low-income individuals who are first generation 
college students; 
"(2) require an assurance tiiat the remaining students partici-
pating in the project proposed to be carried out und!er any 
application either be low-income individuals, first generation 
college students, or individuals with disabilities; 
"(3) require an assurance that not less than one-third of 
the individuals with disabilities participating in the project 
be low-income individuals; 
"(4) require that there be a determination by the institution, 
with respect to each participant in such project, that the partici-
pant has a need for academic support in order to pursue suc-
cessfiiUy a program of education beyond secondary school; 
"(5) require that such participants be enrolled or accepted 
for enrolhnent at the institution which is the recipient of the 
grant or contract; and 
''(6) require an assurance fi*om the institution which is the 
recipient of the grant or contract that each student enrolled 
in the project will be ofilered sufficient financial assistance 
to meet that student's fuU financial need. 
'<SEC. 402E. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHOR-
ITY. 
"(a) PROGRAM AUTHORITY.—^The Secretary shall carry out a pro-
gram to be known as the 'Ronald E. McNair Postbaccalaureate 
Achievement Program* that shall be designed to provide dis-
advantaged college students with effective preparation for doctoral 
study. 
"(b) SERVICES.—^A postbaccalaureate achievement project assisted 
under this section may provide services such as— 
"(1) opportunities for research or other scholarly activities 
at the institution or at graduate centers designed to provide 
students witii effective preparation for doctoral study; 
"(2) summer internships; 
"(3) seminars and other educational activities designed to 
prepare students for doctoral study; 
"(4) tutoring; 
x"(5) academic counseling; 
T(6) activities designed to assist students participating in 
the project in securing admission to and financial assistance 
for enrollment in graduate programs; 
"(7) mentoring programs involving faculty members at 
institutions of higher ^ucation, students, or any combination 
of such persons; and 
"(8) exposure to cultural events and academic programs not 
usually available to disadvantaged students. 
"(c) 
REQUIREMENTS.—In 
approving 
appUcations 
for 
postbaccalaureate achievement projects assisted under this section 
for any fiscal year, the Secretary shall require— 
"(1) an assurance that not less than two-thirds of the individ-
uals participating in the project proposed to be carried out 
under any appUcation be low-income mdividuals who are first 
generation college students; 
"(2) an assurance that the remaining persons participating 
in the project proposed to be carried out be firom a group 
that is underrepresented in graduate education; 
Ronald E. 
McNair. 
20 use 
1070a-15. 
106 STAT. 490 
PUBLIC LAW 102-325—JULY 23, 1992 
"(3) an assurance that participants be enrolled in a degree 
program at an eligible institution having an agreement with 
the Secretary in accordance with the provisions of section 487; 
and 
"(4) an assurance that participants in summer research 
internships have completed their sophomore year in postsecond-
ary education. 
"(d) AWARD CONSIDERATIONS.—In addition to such other selection 
criteria as may be prescribed by reg^ations, the Secretary shall 
consider in making awards to institutions under this seiction— 
"(1) the quality of research and other scholarly activities 
in which students will be involved; 
"(2) the level of faculty involvement in the project and the 
description of the research in which students will be involved; 
and 
"(3) the institution's plan for identifying and recruiting par-
ticipants including students enrolled in projects authorized 
under this section. 
"(e) MAXIMUM STIPENDS.—Students participating in research 
under a postbaccalaureate achievement project may receive £in 
award that— 
"(1) shall include a stipend not to exceed $2,400 per anniun; 
and 
"(2) may include, in addition, the costs of summer tuition, 
summer room and board, and transportation to summer pro-
grams. 
"(f) FUNDING.—From amounts appropriated pursuant to the 
authority of section 402A(f), the Secretary shall, to the extent 
practicable, allocate funds for projects authorized by this section 
in an amount which is not less than $11,000,000 for each of the 
fiscal years 1993 through 1997. 
20 use 
"SEC. 402F. EDUCATIONAL OPPORTUNITY CENTERS. 
^ ' 
• 
"(a) PROGRAM AUTHORITY; SERVICES PROVIDED.—The Secretary 
shall carry out a program to be known as educational opportunity 
centers which shall be designed— 
"(1) to provide information with respect to financial and aca-
demic assistance available for individuals desiring to pursue 
a program of postsecondary education; and 
"(2) to provide assistance to such persons in appl3dng for 
admission to institutions at which a program of postsecondary 
education is offered, including preparing necessary appUcations 
for use by admissions and finemcial aid officers. 
"(b) PERMISSIBLE SERVICES.—^An educational opportunity center 
assisted under this section may provide services such as— 
"(1) pubUc information campaigns designed to inform the 
community regarding opportunities for postsecondary education 
and training; 
"(2) academic advice and assistance in course selection; 
"(3) assistance in completing college admission and financial 
aid appUcations; 
"(4) assistance in preparing for college entrance examinations; 
"(5) guidance on secondary school reentry or entry to a gen-
eral educational development (GED) program or other alter-
native education programs for secondary school dropouts; 
"(6) personal counseling; 
"(7) tutorial services; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 491 
"(8) career workshops and counseling; 
"(9) mentoring programs involving elementary or secondary 
school teachers, faculty members at institutions of higher edu-
cation, students, or any combination of such persons; and 
"(10) programs and activities as described in paragraphs 
(1) through (9) which are specially designed for students of 
limited EngUsh proficiency. 
"(c) REQUIREMENTS FOR APPROVAL OF APPLICATIONS.—In approv-
ing applications for educational opportunity centers under this sec-
tion ror any fiscal year the Secretary shall— 
"(1) require an assurance tiiat not less than two-thirds of 
the persons participating in the project proposed to be carried 
out under any application be low-income individuals who are 
first generation college students; 
"(2) require that such participants be persons who are at 
least nineteen years of age, unless the imposition of such limita-
tion with respect to any person would defeat the purposes 
of this section or the purposes of section 402B; and 
"(3) require an assurance that individuals participating in 
the project proposed in the application do not have access 
to services from another project funded xinder this section or 
under section 402B. 
<«EC. 402G. STAFF DEVELOPMENT ACTIVITIES. 
"(a) SECRETARY'S AUTHORITY.—^For the purpose of improving the 
operation of the programs and projects authorized by this chapter, 
the Secretary is authorized to make grants to institutions of higher 
education and other public and private nonprofit institutions and 
organizations to provide training for staff and leadership personnel 
employed in, or preparing for emplo3anent in, such programs and 
projects. 
"(b) CONTENTS OF TRAINING PROGRAMS.—Such training shall 
include conferences, internships, seminars, workshops, and the pub-
lication of manuals designed to improve the operation of such pro-
grams and projects and shall be carried out in the vEirious regions 
of the Nation in order to ensure that the training opportunities 
are appropriate to meet the needs in the local areas being served 
by such programs and projects. Such training shall be offered 
annually for new directors of projects funded under this chapter 
as well as annually on the following topics and other topics chosen 
by the Secretary: 
"(1) Legislative and regulatory requirements for the operation 
of programs funded under this chapter. 
(2) Assisting students in receiving adequate financial aid 
from programs assisted imder this title and other programs. 
"(3) The design and operation of model programs for projects 
funded under this chapter. 
"(c) CONSULTATION.—Grants for the purposes of this section shall 
be made only after consultation with regional and State professional 
associations of persons having special knowledge with respect to 
tiie needs and problems of such programs and projects. 
<«EC. 402H. EVALUATION FOR PROJECT IMPROVEMENT. 
"(a) IN GENERAL.—For the purpose of improving the operation 
of the programs and projects assisted imder this chapter, the Sec-
retary is authorized to make grants to and enter into contracts 
with institutions of higher education and other public and private 
institutions and organizations to evaluate the effectiveness of the 
20 use 
1070a-17. 
20 use 
1070a-18. 
106 STAT. 492 
PUBLIC LAW 102-325—JULY 23, 1992 
various programs assisted under this subpart in meeting the pur-
poses described in this chapter. 
"(b) CONTENT.—^The evaluations described in subsection (a) shall 
identify institutional, community and program practices particularly 
effective in increasing the access oi low-income individuals and 
first-generation college students to postsecondary education, the 
preparation of such individuals and students for postsecondary edu-
cation, and such individuals' and students' success in postsecondary 
education. 
"(c) RESULTS.—In order to improve program effectiveness, the 
results of the ongoing evaluations described in subsection (a) shall 
be disseminated by the Secretary to similar programs assisted 
under this chapter as well as other individuals concerned with 
the postsecondary access and retention of low-income individuals 
and first-generation college students. 
'^CHAPTER 2—NATIONAL EARLY INTERVEN-
TION 
SCHOLARSHIP 
AND 
PARTNERSHIP 
PROGRAM 
20 use 
1070a-21. 
20 use 
1070a-22. 
«SEC. 404A. EARLY INTERVENTION PROGRAM AUTHORIZED. 
"The Secretary is authorized, in accordance with the requirements 
of this chapter, to establish a program that— 
"(1) encourages States to provide or maintain a guarantee 
to eligible low-income students who obtain a high-school 
diploma (or its equivedent), of the financial assistance necessary 
to permit them to attend an institution of higher education; 
and 
"(2) provides incentives to States, in cooperation with local 
educational agencies, institutions of higher education, commu-
nity organizations £ind business, to provide— 
"(A) additional counseling, mentoring, academic support, 
outreach, £uid supportive services to elementary, middle, 
and secondary school students who are at risk of dropping 
out of school; and 
"(B) information to students and their parents about 
the advantages of obtaining a postsecondary education and 
their college financing options. 
"SEC. 404B. STATE ELIGIBILITY AND STATE PLAN. 
"(a) PLAN REQUIRED FOR ELIGIBILITY.—(1) In order for a State 
to qualify for a grant imder this chapter, the State shall submit 
to the Secretary a plan for canying out the program under this 
chapter. Such plan shall provide for the conduct, under the State 
progrgim, of both a scholarship component in accordance with section 
403C and £in early intervention component in accordance with sec-
tion 403D. 
"(2) Each State plan submitted pursuant to paragraph (1) be 
in such form, contain or be accompanied by such information or 
assurances, and be submitted at such time as the Secretary may 
require by regulation and shall— 
"(A) describe the activities for which assistance \mder this 
section is sought; and 
"(B) provide such additional assurances as the Secretary 
determines necessary to ensure compUance with the require-
ments of this section. 
, 
-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 493 
"(b) MATCHING REQUIREMENT.—The Secretary shall not approve 
a plan submitted under subsection (a) unless such plan— 
"(1) provides that the State will provide, from State, local, 
or private funds, not less than one-half the cost of the program; 
"(2) specifies the methods by which such share of the costs 
wiU be pEud; and 
"(3) includes provisions designed to assure that funds pro-
vided under this chapter shall supplement and not supplant 
funds expended for existing State and local programs. 
"(c) METHODS FOR COMPLYING WITH MATCHING REQUIREMENT.— 
A State may count toward the contribution required by subsection 
(b)(1)-
"(1) the amoxmt of the grants psiid to students from State, 
local, or private funds under this chapter; 
"(2) the amoimt of tuition, fees, room or board waived or 
reduced for recipients of grants under this chapter; and 
"(3) the amount expended on documented, targeted, long-
term mentoring and coimseling provided by volimteers or paid 
staff of nonschool organizations, including businesses, reUgious 
organizations, community groups, postsecondary educational 
institutions, nonprofit and philanthropic organizations, and 
other organizations. 
"(d) PAYMENT REQUIREMENTS.—Upon submission by a State of 
such documents as the Secretary may, by regulation, reqviire for 
demonstrating the total amoimt expended by the State in accord-
ance with this chapter for a fiscal year, the Secretary shall, from 
such State's allotment under section 404E for such fiscal year, 
pay to such State an amount equal to not more than one-half 
of the total amount so expended. 
"SEC. 404C. EARLY INTERVENTION. 
"(a) IN GENERAL.—In order to receive payments under section 
404B(d), a State shall demonstrate to the satisfaction of the Sec-
retary that the State will provide comprehensive mentoring, coun-
seling, outreach, and supportive services to students participating 
in programs under this chapter who are enrolled in preschool 
through grade 12. Such coimseling shall include financial aid coun-
seling that provides information on the opportunities for financial 
assistance under this title. The State shall demonstrate, pursuant Regulations, 
to regulations of the Secretary, the methods by which the State 
will target services on priority students. 
"(b) USES OF FUNDS.— 
"(1) IN GENERAL.—The Secretary shall, by regulation, estab- Regulations, 
lish criteria for determining whether comprehensive mentoring, 
counseling, outreach, and supportive services programs may 
be used to meet the requirements of subsection (a). 
"(2) ALLOWABLE PROVIDERS.—The activities required by sub-
section (a) may be provided by service providers such as commu-
nity-based organizations, schools, institutions of higher edu-
cation, public and private agencies, nonprofit and philanthropic 
organizations, businesses, institutions and agencies sponsoring 
programs authorized under subpart 4 of this part, and other 
organizations the Secretary deems appropriate. 
"(3) PERMISSIBLE ACTIVITIES.—Examples of acceptable activi-
ties to meet the requirements of subsection (a) include the 
following: 
20 use 
1070a-23. 
106 STAT. 494 
PUBLIC LAW 102-325—JULY 23, 1992 
^(A) Providing eligible students in preschool throu|rh 
grades 12 with a continuing system of mentoring and advis-
ing that— 
''(i) is coordinated with the Federal and State commu-
nity service initiatives; and 
"(ii) may include such support services as after school 
and summer tutoring, assistance in obtaining summer 
jobs, career mentoring and academic counseling. 
''(U) Requiring each student to enter into an agreement 
imder which the student agrees to achieve certain academic 
milestones, such as completing a prescribed set of courses 
and maintaining satisfactory academic progress as 
described in section 484(c), in exchange for receiving tuition 
assistance for a period of time to be estabUshed by each 
State. 
"(C) Activities designed to ensure high school completion 
and college enrollment of at-risk children, including identi-
fication of at-risk children, after school and summer tutor-
ing, assistance in obtaining summer jobs, academic counsel-
ing, volunteer and parent involvement and former or cur-
rent scholarship recipients as mentor or peer counselors, 
skills assessment, personal counseling, fsunily coimseling 
and home visits, and staff development, and programs and 
activities as described in this subparagraph which are spe-
cialW designed for students of limited English proficiency. 
"(D) Prefreshman summer programs that— 
"(i) are at institutions of higher education that also 
have programs of academic year supportive services 
for disadvantaged students through projects authorized 
imder section 401D of this subpart or through com-
parable projects fimded by the State or other sources; 
"(ii) assure the participation of students who qualify 
£
U
3 disadvantaged under the provisions of section 401D 
of this part or who are eUgible for comparable programs 
fimded by the State; 
"(iii)(I) provide summer instruction in remedial, 
developmental or supportive courses; (II) provide such 
summer services as coimseling, tutoring, or orientation; 
and (III) provide grant aid to students to cover 
prefireshman summer costs for books, suppUes, Uving 
costs and personal expenses; and 
"(iv) assure that participating students will receive 
financial aid during each academic jrear they are 
enrolled at the pcuticipating institution after the 
prefireshman summer. 
"(E) Requiring eUgible students to meet other standards 
or requirements as me State determines necessary to meet 
the purposes of this section. 
"(c) PRIORITY STUDENTS.—In administering the early intervention 
component, the State shall treat as priority students any student 
in preschool through grade 12 who is eligible— 
"(1) to be counted imder section 1005(c) of the Elementary 
and Secondary Education Act of 1965; 
"(2) for fr^ or reduced price meals pursuant to the National 
School Lunch Act; or 
"(3) for assistance pursuant to part A of title IV of the 
SociaJ Security Act (Aid to Families with Dependent Children). 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 495 
"SEC. 404D. SCHOLARSHIP COMPONENT. 
20 USC 
"(a) IN GENERAL.—In order to receive payments under section 
' ^" 
404B(d), a State shall establish or maintain a financial assistance 
program that awards grants to students in accordance with the 
requirements of this section. The Secretary shall encourage the 
State to ensure that the tuition assistance provided pursuant to 
this section is available to an ehgible student for use at any eligible 
institution. 
"(b) GRANT AMOUNTS.—The maximum amount of the grant that 
an eligible student in any participating State shall be ehgible to 
receive under this section shall be estabhshed by the State. The 
minimum amount of the grant for each fiscal year shall not be 
less than the lesser o
f
— 
"(1) 75 percent of the average cost of attendance for an 
in-State student, in a 4-year program of instruction, at public 
institutions of higher education in such State, as determined 
in accordance with regulations prescribed by the Secretary; 
or 
"(2) the maximum grant funded under section 401 for such 
fiscal year, 
"(c) RELATION TO OTHER ASSISTANCE.—Tuition assistance pro-
vided under this chapter shall not be considered for the purpose 
of awarding FedergJ grant assistance imder this title, except that 
in no case shall the total amoimt of student financial assistance 
awarded to a student under this title exceed such student's total 
cost of attendance. 
"(d) ELIGIBLE STUDENTS.—^A student eligible for assistance xmder 
this chapter is a student who— 
"(1) is less than 22 years old at time of first grant award; 
"(2) receives a high school diploma or a certificate of high 
school equivalence on or after January 1,1993; 
"(3) is enrolled or accepted for enrollment in a program 
of instruction at an institution of higher education that is 
located within the State's boundaries; except that, as a State 
option, a State may offer grant program portability for recipi-
ents who attend institutions of higher education outside such 
State; and 
"(4) who the participated in the State early intervention 
component required under section 404C. 
"(e) PRIORITY; WAIVER.—(1) The Secretary shall ensure that each 
State place a priority on awarding scholarships to students who 
will receive a Pell Grant for the academic year for which the 
award is being made imder this chapter. 
"(2) A State may consider students who have successfully partici-
pated in programs funded under chapter 1 of this subpart to have 
met the requirements of subsection (d)(4). 
"SEC. 404E. DISTRroUTION OF FUNDS. 
20 USC 
"(a) COMPETITIVE AWARDS.—If the amount appropriated to carry ^^'^^^-25. 
out this chapter for a fiscal year is less than $50,000,000, then 
the Secretary shall award grants under this chapter on a competi-
tive basis to States to carry out a program described in section 
404A. 
"(b) ALLOTMENT BASED ON TITLE I ESEA ALLOCATIONS.—If the 
amount appropriated to carry out this chapter for a fiscal year 
is $50,000,000 or more, then the Secretary shall allot to each 
State an amount which bears the same ratio to such sums as— 
106 STAT. 496 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 
1070a-26. 
20 use 
1070a-27. 
"(1) the amount allocated under section 1005 of the 
Elementsiry and Secondary Education Act of 1965 to the local 
education agencies in the State, 
bears to— 
"(2) the total amount allocated under such section to all 
such agencies in all States. 
"(c) LIMIT ON USE.—No State may use less than 25 percent 
or more than 50 percent of its allotment for the early intervention 
component of the State program, except that the Secretary may 
waive the 50 percent limitation if the State demonstrates that 
the State has another meeuis of providing the student's tuition 
assistance that is described in the State plan. 
"(d) REALLOTMENT.—^The amount of any State's allotment under 
subsection (b) for any fiscal year which the Secretary determines 
will not be required for such fiscal year for the program of that 
State shall be available for reallotment fi*om time to time, on 
such dates during such year as the Secretary may fix, to other 
States in proportion to the original allotments to such States for 
such year, but with such proportionate amount for any of such 
States being reduced to the extent it exceeds the sum the Secretary 
estimates such State needs and will be able to use for such year 
for carrying out such programs. The total of such reductions shall 
be similarly reallotted among the States whose proportionate 
amounts were not so reduced. A State shall match, m accordance 
with section 404B(b) any reallocated funds it receives under this 
subsection. 
"(e) ALLOTMENT SUBJEOT TO CONTINUING COMPLIANOE.—The Sec-
retary shall make pa3mients for programs only to States which 
continue to meet the requirements of the State plan pursuant 
to section 404B. 
"SEC. 404F. EVALUATION AND REPORT. 
"(a) EVALUATION.—Each State receiving an allotment imder this 
section shall biannually evaluate the early intervention program 
assisted under this chapter in accordance with the standards 
described in subsection (b) and shall submit to the Secretary a 
copy of such ev^uation. The evaluation component shall permit 
service providers to track eligible student progress during the period 
such students £ire participating in the program assisted under this 
section and must be consistent with the standards developed by 
the Secretary pursuant to subsection (b). 
"(b) EVALUATION STANDARDS.—The Secretary shall prescribe 
standards for the evaluation described in subsection (a). Such stand-
ards shall— 
"(1) provide for input from States and service providers; and 
"(2) ensure that data protocols and procedures are consistent 
and imiform. 
"(c) REPORT.—^The Secretary shall biannually report to the Con-
gress on the activities assisted under this chapter and the evalua-
tions conducted pursuant to subsection (a). 
"SEC. 404G. APPROPRIATIONS. 
'There is authorized an appropriation to make grants imder 
this chapter $200,000,000 for iisc£il year 1993 and such sums as 
may be necessary for each of the four succeeding fiscal years. 
No amount may be expended to carry out the provisions of this 
chapter imless the amount appropriated for such fiscal year to 
csury out subpart 4 of part A of this title exceeds $60,000,000. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 497 
**CHAPTER 3—PRESIDENTLAL ACCESS 
SCHOLARSHIPS 
''SEC. 406A. SCHOLARSHIPS AUTHORIZED. 
"The Secretary is authorized in accordance with this chapter 
to award Presidential Access Scholarships to students who— 
"(1) are eUgible to receive a Pell Grant for the year in which 
the scholarship is awarded; 
"(2) have participated in a preparatory program for post-
secondeiry education; and 
"(3) demonstrate academic achievement. 
''SEC. 406B. SCHOLARSHIP PROGRAM REQUIREMENTS. 
"(a) AMOUNT OF AWARD.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
amount of a scholarship awarded under this chapter for any 
academic year shall be equal to 25 percent of the Pell Grant 
that the recipient is awarded for that year or $400, whichever 
is greater. 
"(2) 
ADJUSTMENT FOR INSUFFICIENT APPROPRIATIONS.—If, 
after the Secretary determines the total number of ehgible 
applicants for an academic year in accordance with section 
406C, funds available in a fiscal year are insufficient to fully 
fund all awards for that academic year under this chapter, 
the amount paid to each student shall be reduced proportion-
ately. 
"(b) PERIOD OF AWARD.—Scholarships under this chapter shall 
be awarded for a period of not more than four academic years, 
or in the case of a student who is enrolled in an undergraduate 
course of study that requires attendance for the full-time equivalent 
of five academic years, five academic ye£u*s. 
"(c) USE AT ANY INSTITUTION PERMITTED.—An eligible student 
awarded a scholarship under this chapter may use such scholarship 
stipend to attend any institution of higher education. 
"(d) ASSISTANCE NOT TO EXCEED COST OF ATTENDANCE.—A schol-
arship awarded under this chapter to any student, in combination 
with the Pell Grant and other student financieil assistance available 
to such student, may not exceed the student's cost of attendance 
(as defined in section 472). 
"(e) PRESIDENTIAL ACCESS SCHOLARS.—Students awarded scholar-
ships under this chapter shall be known as 'Presidential Access 
Scholars'. 
"SEC. 406C. ELIGIBILITY OF SCHOLARS. 
"(a) REQUIREMENTS FOR STUDENTS IN FIRST YEAR OF POSTSECOND-
A
R
Y EDUCATION.—In order for a student who will be attending 
the student's first year of postsecondary education to be eligible 
to receive a scholarship under this chapter for that academic year, 
the student shall— 
"(1) be enrolled or accepted for enrollment in a degree or 
certificate program of at least 2 years in length; 
"(2) have demonstrated academic achievement sind prepara-
tion for postsecondary education by taking college preparatory 
level coursework in the following areas while in secondary 
school or the equivalent: 
"(A) 4 years of Enghsh; 
"(B) 3 years of science; 
20 use 
1070a-31. 
20 use 
1070a-32. 
20 use 
1070a-33. 
106 STAT. 498 
PUBLIC LAW 102-325—JULY 23, 1992 
"(C) 3 years of mathematics; 
"(D) either— 
"(i) 3 years of history; or 
"(ii) 2 yesirs of history and 1 year of social studies; 
and 
"(E)eithei^ 
"(i) 2 years of a foreign lEinguage; or 
"(ii) 1 year of computer science and 1 year of a 
foreign language. 
"(3) earn a grade pomt average of 2.5 or higher, on a scale 
of 4.0, in the final 2 years of high school; £ind 
"(4) either— 
"(A) have participated, for a minimum period of 36 
months, in an early intervention program that meets the 
requirements of section 406D; or 
(B) rank, or have ranked, in the top 10 percent, by 
grade point average, of the student's secondary school 
graduating class. 
"(b) REQUIREMEhfTS FOR ALL STUDENTS.— 
"(1) Each eligible student desiring a scholarship under this 
chapter shall submit an application to the Secreteiry at such 
time, in such manner, and containing such information as 
the Secretary may reasonably require. 
"(2) In order for a student who will be attending a year 
of postsecondary education, other than the student's first year, 
to continue to be eligible to receive a scholarship under this 
chapter for that academic year the eligible student shall main-
tain eligibility to receive a Pell Grsmt, including fulfilling the 
requirements for satisfactory academic progress as described 
in section 484(c). 
20 use 
«SEC. 406D. EUGIBLE EARLY INTERVENTION PROGRAMS. 
i070a-34. 
„^^^ PARTICIPATION IN TRIO PROGRAMS AND NATIONAL EARLY 
INTERVENTION SCHOLARSHIP AND PARTNERSHIP PROGRAMS.—Partici-
pation in a program authorized under section 402B, 402C, or 402F, 
or chapter 2 of subpart 2 of this part for a 36-month period shall 
meet the requirement of section 406C(a)(4)(A). 
"(b) OTHER ELIGIBLE EARLY INTERVENTION PROGRAM.—Participa-
tion in another early intervention program, regardless of sponsor-
ship, for a 36-month period, shall meet the requirements of section 
406C(a)(4)(A) if the program— 
"(1) meets the requirements established by the Secretary; 
and 
"(2) is certified by the Governor as an honors scholars pro-
gram. 
20 use 
"SEC. 406E. STUDENT ELIGIBILnY. 
i070a-35. 
«^^^ STUDENT ELIGIBILITY.—For the purpose of this chapter, the 
term 'eligible student' means an individual who— 
"(1) is a graduate of a public or private secondary school 
or has the equivalent certificate of graduation as recognized 
by the State in which the eligible student resides; 
"(2) not later than 3 years after such individual graduates 
or obtains an equivalent certificate, has been admitted for 
enrollment or is enrolled at an institution of higher education; 
and 
"(3) is eligible to receive a Pell Grant for the year in which 
the scholarship is awarded. 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 499 
"(b) LIMITATION.—For the puipose of this chapter, the term 
'eligible student' does not include an individual who has been 
awarded a baccalaureate degree. 
**(c) WAIVERS.— 
"(1) EARLY INTERVENTION PROGRAM PARTICIPATION.—The Sec-
retary may waive the requirement described in section 
406C(a)(4) for any student who was unable to participate in 
an early intervention program assisted under this part because 
such program was not available in the area in which such 
student resides or the student was unable to participate in 
an early intervention program where the student resides. 
"(2) LIMITED-ENGLISH PROFICIENT STUDENTS.—The Secretarv 
may waive the requirement described in section 406C(aX2XE) 
for any limited-English proficient student who is fluent in a 
language other than English and is participating in a program 
to teach such student the English language or tor any English 
speaking student fluent in a second language. 
<
*
S
E
C
. 406F. EARLY INTERVENTION SCHOLARSHIP AGREEMENT. 
**(a) IN GENERAL.—^In order for a student to receive a scholarship 
under this chapter, the State educational agency serving the State 
in which such child resides shall have entered into an agreement 
with the Secretary. 
"(b) CONTENTS.—Each agreement described in subsection (a) shall 
include provisions designed to ensure that— 
"(1) all secondary school students in the State have equal 
and easy access to the coursework described in section 
406C(a)(2); 
"(2) the Stete educational agency has procedures in place 
to verify to the Secretary that students receiving scholarships 
imder this chapter have taken such coursework and that such 
coursework has been of a college preparatory level, including 
a requirement that all secondary scnools in the Stete issue 
a certificate to each eligible student certifying that such student 
has completed the necessary coursework to qualify for a scholar-
ship under this chapter; 
"(3) the Stete educational agency has procedures in place 
to notify institutions of higher education of the availaoilily 
of scholarships under this cha|>ter, so that such institutions 
may award additional scholarships in concert with the scholar-
ships received under this chapter; and 
"(4) the Stete educational agency has procedures in place 
to inform jimior high school studente and their families about 
the value of posteecondary education, the availability of student 
aid to meet college ei^enses, and the availability of scholarships 
under this chapter for students who take demanding courses, 
with particular emphasis on activities designed to ensure that 
students fi'om low- and moderate-income families have access 
to such information. 
"(c) SPECIAL RULE.—The Secretary may allow a Stete to receive 
assistance under this chapter for students whose secondary schools 
do not ofifer the.necessary coursework if such studente take the 
reauired courses at another local secondary school or community 
college. 
''SEC. 406G. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $200,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
20 use 
1070a-36. 
20 use 
1070a-37. 
106 STAT. 500 
PUBLIC LAW 102-325—JULY 23, 1992 
4 succeeding fiscal years to carry out the provisions of this chapter. 
No amount may be expended to carry out the provisions of this 
chapter in any fiscal year unless the amoimt appropriated for 
such fiscal year to carry out subpart 1 of part A of this title 
exceeds the amount appropriated to carry out such subpart in 
the preceding fiscal year. 
"CHAPTER 4—MODEL PROGRAM COMMUNITY 
PARTNERSHIP AND COUNSELING GRANTS 
20 use 
1070a-41. 
Rural and urban 
areas. 
20 use 
1070a-42. 
<^EC. 408A. MODEL PROGRAM GRANTS. 
"(a) PROGRAM AUTHORITY.—From the amoimts appropriated 
imder section 408C, the Secretary shall award grants to develop 
model programs— 
"(1) to counsel students, at an early age, about college 
opportunities, precoUege requirements, the college admissions 
procedure, financial aid opportunities, and student support 
services that are specially designed or customized for use in 
specific geographic, social, £ind cultural environments; or 
"(2) which stimulate community partnerships with schools 
by providing tutoring, mentoring, work experiences, and other 
services which support making postsecondary education a real-
istic goal for all students. 
"(b) PRIORITIES IN SELECTION.—The Secretary shall give priority 
to those model programs which are directed at areas which have 
a high proportion of minority, limited English proficiency, economi-
cally disadvantaged, disabled, nontraditional, or at-risk students 
and those model programs which serve these students from rural 
or urban environments. 
"(c) PROPOSAL REQUIREMENTS.— 
"(1) TAILORING.—To receive a grsint under subsection (a)(1), 
the proposal submitted to the Secretary shall demonstrate that 
the counseling on college opportunities, precoUege require-
ments, the college admissions procedure, and financial aid 
opportunities (including early intervention counseling), is tai-
lored to a specific geographic, social or cultural environment. 
"(2) COMMUNITY PARTNERSHIPS.—To receive a grant under 
subsection (a)(2), the proposal submitted to the Secretary shall 
demonstrate the active involvement of a local educational 
agency and at least one of the following: 
"(A) Local businesses. 
"(B) Labor organizations. 
"(C) Community groups. 
"(3) GOALS AND OUTCOMES.—To receive a grant imder this 
section, each proposal shall contain a statement of specific, 
measurable goals and methods for obtaining statistics on the 
number of participants who continue on to postsecondary edu-
cation. 
"SEC. 408B. DIFFUSION ACTIVITIES. 
"(a) COLLECTION OF INFORMATION.—The Secretary shall collect 
information concerning— 
"(1) programs supported imder section 408A and programs 
of demonstrated effectiveness which counsel students about 
college opportunities, precoUege requirements, the college 
admissions procedure, and financial aid opportimities; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 501 
"(2) early intervention programs of demonstrated effective-
ness which set students on the path toward staying in school 
and pursuing a postsecondary education; 
"(3) model programs wmch counsel students in specific 
environments, such as urban, rural, and suburban; and 
"(4) model programs which develop school/commimity part-
nerships to provide mentoring, tutoring, work experiences and 
other services which support making postsecondary education 
a reahstic goal for all students. 
"(b) DISSEMINATION.—The Secretary shall ensure that the 
information collected under subsection (a) is disseminated. 
<«EC. 408C. AUTHORIZATION OF APPROPRIATIONS. 
'There are authorized to be appropriated $35,000,000 for fisced 
year 1993 and such siuns as may be necessary for each of the 
4 succeeding fiscal years to carry out this chapter. 
"CHAPTER 5—PUBLIC INFORMATION 
«SEC. 409A. DATABASE AND INFORMATION LINE. 
"From the funds available under section 409C, the Secretary 
shall award a contract to establish and maintain— 
"(1) a computerized database of all pubUc and private finan-
cial assistance programs, to be accessible to schools and Ubrar-
ies through either modems or toU-firee telephone lines; and 
"(2) a toll-free information hne, including access by tele-
communications devices for the deaf (TDD's'), to provide 
individuaHzed financial assistance information to parents, stu-
dents, and other individuals, including individuals with disabil-
ities, and to refer students with disabilities and their famiUes 
to the postsecondary clearinghouse that is authorized imder 
section 633(c) of the Individuals with DisabiUties Education 
Act. 
"SEC. 409B. EARLY AWARENESS INFORMATION PROGRAM. 
"(a) PROGRAM AUTHORITY.—^The Secretary is authorized to enter 
into contracts with appropriate pubHc agencies, nonprofit private 
organizations, and institutions of higher education to conduct an 
information program designed— 
"(1) to broaden the early awareness of postsecondary edu-
cational opportimities by secondary school students and their 
parents; and 
"(2) to encourage economically disadvantaged, minority, or 
at-risk individuals to seek higher education, and to seek higher 
education and financial assistance counseling at public schools 
and libraries. 
"(b) CONTENTS OF MESSAGES.—^Announcements and messages 
supported under this section— 
"(1) may be specially designed for students of Umited EngHsh 
proficiency, 
"(2) shall pubUcize— 
"(A) me availability of Federal student assistance under 
this Act; 
"(B) the importance of postsecondary education in long-
term career planning; and 
"(C) the need and necessity to complete a secondary 
education program successfully in order to meet the 
requirements for college. 
20 use 
1070a-43. 
Contracts. 
20 use 
1070a-51. 
20 use 
1070a-52. 
106 STAT. 502 
PUBLIC LAW 102-325—JULY 23, 1992 
Appropriation 
authorization. 
20 use 
1070a-53. 
"(c) INFORMING CONGRESS.—The Secretary shall keep the appro-
priate committees of the Congress informed with respect to the 
efforts made pursuant to this section and shall recommend any 
additional legislative authority that will serve the purposes of this 
section. 
''SEC. 409C. DATABASE AND INFORMATION LINE. 
"There are authorized to be appropriated $20,000,000 for fiscal 
year 1993 and such siuns as may be necessary for each of the 
4 succeeding fiscal years to carry out this chapter. 
"CHAPTER 6—NATIONAL STUDENT SAVINGS 
DEMONSTRATION PROGRAM 
20 use 
1070a-61. 
''SEC. 410A. NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM 
"(a) STATEMENT OF PURPOSE.—It is the purpose of this section 
to— 
"(1) create a demonstration program to test the feasibiHty 
of estabUshing a national student savings program to encourage 
families to save for their children's college education and 
thereby reduce the loan indebtedness of college students; and 
"(2) help determine the most effective means of achieving 
the activities described in paragraph (1). 
"(b) DEMONSTRATION PROGRAM AUTHORIZED.— 
"(1) IN GENERAL.—^The Secretary is authorized to award a 
demonstration grant to not more than 5 States to enable each 
such State to conduct a student savings program in accordance 
with this section. 
"(2) AMOUNT OF GRANT.—The amoimt of each grant awarded 
pursuant to paragraph (1) shall be computed on the basis 
o
f
— 
"(A) a Federal match in an amoimt equal to the initial 
State deposit into each account established pursuant to 
subsection (c)(2)(B), except that such Federal match shall 
not exceed $50 per child; multiplied by 
"(B) the number of children participating in the program 
assisted under this part. 
"(3) PRIORITY.—In awarding grants imder this section the 
Secretary shaU give priority to States proposing programs that 
establish accounts for a child prior to the age of compulsory 
school attendance in the State in which such child resides. 
"(4) SPECIAL CONSIDERATION.—In awarding grants under this 
section the Secretary shall give special considferation to States— 
"(A) that permit employers to use pretax income in mak-
ing contributions to a child's account; and 
(B) that provide assurances that interest earned in 
accounts shall be exempt 
firom 
State taxes. 
"(c) APPLICATION.— 
"(1) IN GENERAL.—Each State desiring a grant imder this 
section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such ixibrmation 
as the Secretary may reasonably require. 
"(2) CONTENTS.—Each application submitted pursuant to 
paragraph (1) shall-^ 
"(A) describe the student savings program to be estab-
lished and the number of children to be served; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 503 
"(B) contain assurances that an account shall be estab-
lished for each child participating in the program assisted 
under this section and set forth the initial £imount to 
be deposited into each such account by the State; 
"(C) contain assurances that deposits into such account 
shall be invested in a responsible manner that provides 
a reasonable rate of return; 
"(D) contain assurances that funds in the account shall 
only be used to pay the cost of attendance (as such term 
is defined in section 472) at any eligible institution (as 
such term is defined in section 481); 
"(E) describe the amount of the Federal contribution 
requested for starting each child's account, which shall 
not exceed $50 per child participating in the program; 
"(F) describe the age at which children in the State 
may estabUsh such accounts; 
"(G) indicate whether the program will be open to all 
children, regardless of family income, or only to dis-
advantaged children; 
"(H) describe how additional deposits into each account 
from the State or other resources will be earned by a 
child for performance of community service, academic per-
formance, or other activities or achievements; 
"(I) contain assurances that contributions in an account 
shall be refundable to the contributor without interest if 
the child is unable to attend college; 
"(J) contain assurances that the State shall encourage 
individuals and organizations to make contributions to a 
child's accoimt; 
"(K) contain assurances that the State shall provide 
incentives to employers to make contributions to a child's 
accoimt and participate in the program assisted under 
this section; and 
"(L) contain assurances that if a child leaves the State 
in which such child has an account, then such child shall 
retain the right to make contributions to the account, 
except that the State shall not be required to make any 
additional deposits other than interest. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $10,000,000 for fiscaJ year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years 
to carry out this section. 
"CHAPTER 7—PREELIGIBILITY FORM 
"SEC. 410B. INFORMATION ON EUGIBILITY FOR ASSISTANCE. 
20 USC 
"To help ensure access to postsecondary education by providing 
early notice to students of tiieir potential eUgibiUty for financisd 
aid, the Secretary, as part of the contracts developed pursuant 
to section 483, may— 
"(1) develop and process a common preeUgibiKty Federal 
financial aid form, 
"(2) distribute and process such form on a year-round basis 
free of charge to students and parents, and 
"(3) issue, on the basis of information reported by the student 
on such form, a preeUgibiUty expected famfly contribution figure 
and estimate of the amoimt of Federal (and, if feasible, non-
106 STAT. 504 
PUBLIC LAW 102-325—JULY 23, 1992 
Public 
information. 
20 use 
1070a-81. 
Federal 
Register, 
publication. 
Federal) funds for which the student might qualify^ in later 
completing and submitting the application rorm callea for under 
section 483. 
The Secretary shall widely disseminate the preeligibihty form 
through post offices and other appropriate Federal mstallations, 
schools, institutions of higher education, Ubraries, and community-
based agencies, including projects assisted under subparts 2 and 
5 of 
this part. 
"CHAPTER 8—TECHNICAL ASSISTANCE FOR 
TEACHERS AND COUNSELORS 
«SEC. 410C. TECHNICAL ASSISTANCE GRANTS. 
"(a) PROGRAM AUTHORITY.—From the amounts appropriated 
under subsection (f), the Secretary shall award grants to locsil 
educational agencies to use for the purpose of obtaining specialized 
training for guidance coimselors, teachers, and principals to counsel 
students about college opportunities, precollege requirements, the 
college admissions procedure, and financial aid opportunities. 
"(b) SELECTION OF GRANT RECIPIENTS.— 
**(1) PRIORITY.—^In making grants under this section, the Sec-
retary shall give priority to those local educational agencies 
serving school districts (A) from which the j)roportion of stu-
dents who continue on to higher education is significantly below 
the national average, and (B) in which the proportion of stu-
dents who are ecmcationally disadvantaged is sig^nificantly 
above the national average. 
"(2) SELECTION PROCEDURES.—The Secretary shall develop 
a formal procedure for the submission of proposals and publish 
in the Federal Register an announcement with respect to that 
procedure and the avaUabihty of fiinds. 
"(c) LOCAL PLAN.—^To receive a grant under this section, a local 
educational agency shall submit to the Secretary a plan that— 
"(1) specifies the methods to be used for outreach, 
implementation, and follow-up with those students most in 
need and at-risk for dropping out or failing to piirsue post-
secondary education; 
"(2) demonstrates the methods by which the agency will 
target funds to those schools within the district that have 
the lowest rate of students who continue on to higher education; 
"(3) utilizes early intervention programs for coimseling minor-
ity, economically disadvantaged, disabled, and at-risk students 
about postsecondary education; 
"(4) includes a strategy for keeping the guidance counselors, 
teachers (including elementsiry, secondary, vocational, and spe-
cial education teachers), and principals who have been trained 
up-to-date on financial aid information; 
"(5) contains a statement of specific goals and methods for 
obtaining statistics on the number of participants who continue 
on to postsecondary education; and 
"(6) contains a description of the costs of the training and 
other activities to be undertaken. 
"(d) DURATION OF GRANTS.—Grants under this section shedl be 
available for 2 years. 
"(e) EVALUATION.— 
"(1) CONDUCT OF EVALUATIONS.—The Secretary shall reserve 
not more than 2 percent of any amount appropriated under 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 505 
subsection (f) for the purpose of carrying out an independent 
evaluation of the effectiveness of the training programs assisted 
under this section in— 
"(A) increasing the number of personnel in a school who 
regularly coxinsel students regarding college opportunities, 
precoUege requirements, the college admission procedure, 
and financial aid opportunities; and 
"(B) increasing the number of students who continue 
on to postsecondary education from a school which has 
had personnel trained using monies from this section. 
"(2) REPORT.—^The Secretary shall submit to the appropriate 
committees of the Congress a report which contains the fijidings 
of the evaluation required by paragraph (1). 
"(f) TECHNICAL ASSISTANCE GRANTS.—There are authorized to 
be appropriated $40,000,000 for fiscal year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years 
to car:^ out this section.". 
(b) REFERENCE.—Reference in any provision of law (other than. 
the Act) to subpart 2, 3, or 4 of psut A of title IV of the Act 
shall, after the date of enactment of this Act, be deemed to refer 
to subpart 3, 4, or 2 of such part, respectively. 
SEC. 4
0
3
. 
FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNTTY 
GRANTS. 
(a) TITLE OF PROGRAM.—The heading of subpart 3 of part A 
of title IV of the Act (as redesignated in section 402(a)) is amended 
to read as follows: 
"SUBPART 3—FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY 
GRANTS". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 413A(b) of the 
Act (20 U.S.C. 1076b(b)) is amended to read as follows: 
"(b) AUTHORIZATION OF APPROPRIATIONS.—(1) For the purpose 
of enabling the Secretary to make pajnnents to institutions of higher 
education which have made agreements with the Secretary in 
accordance with section 413C(a), for use by such institutions for 
pajnnents to undergraduate students of supplemental grants 
awarded to them luider this subpart, there are authorized to be 
appropriated $675,000,000 for fiscal year 1993 and such sums as 
may be necessary for the 4 succeeding fiscal years. 
"(2) Sums appropriated pursuant to this subsection for any fiscal 
year shall be available for pa3anents to institutions until the end 
of the second fiscal year succeeding the fiscal year for which such 
sums were appropriated.". 
(c) ELIGIBILITY FOR STUDY ABROAD.—Section 413B(a) of the Act 
(20 U.S.C. 1070b-l(a)) is amended— 
(1) in paragraph (1)— 
(A) by striking "From" and inserting "Except as provided 
in paragraph (3), from"; and 
(B) in subparagraph (A), by inserting "or in a program 
of study abroad that is approved for credit by the institution 
at which the student is enrolled" after "course of study 
at the institution"; and 
(2) by inserting after paragraph (2) the following new para-
graph: 
"(3) For students participating in study abroad programs, the 
institution shall consider all reasonable costs associated with such 
Appropriation 
authorization. 
20 use 
1070a-ll note. 
20 u s e 1070b. 
106 STAT. 506 
PUBLIC LAW 102-325—JULY 23, 1992 
study abroad when determining student eligibility. The amount 
of grant to be awarded in such cases may exceed the maximum 
amount of $4,000 by as much as $400 if reasonable study abroad 
costs exceed the cost of attendance at the home institution.". 
20 use i070b-2. 
(d) FEDERAL SHARE.—Section 413C(aX2) of the Act is amended 
to read as follows: 
"(2) agrees that the Federal share of awards imder this 
subpart will not exceed 75 percent of such awards, except 
that the Federal share may be exceeded if the Secretary deter-
mines, pursuant to regulations establishing objective criteria 
for such determinations, that a larger Federal share is required 
to further the purpose of this subp^; and". 
(e) USE OF FUNDS TO NONTRADITIONAL STUDENTS.—Section 
413C(d) of the Act (20 U.S.C. 1070b-2(d)) is amended— 
(1) by inserting *Svho are independent students or" after 
"demonstrated by students"; and 
(2) by inserting before the period at the end thereof the 
following: ", except that if the total financial need of all such 
students attending the institution exceeds 5 percent of the 
need of all students attending such institution, then at least 
5 percent of such allotment shall be made available to such 
students". 
(f) TRANSFER OF FUNDS.—Section 413C(e) of the Act is amended 
by striking ", and may transfer such ftmds in accordance with 
the provisions of section 488". 
(g) ALLOCATION OF FUNDS.—Section 413D(a) of the Act (20 U.S.C. 
1070b-3(a)) is amended by adding at the end the following new 
paragraph: 
"(4)(A) Notwithstanding any other provision of this section, the 
Secretary may allocate an amount equal to not more than 10 
percent of the amount by which the amount appropriated in any 
fiscal year to carry out this part exceeds $700,000,000 among 
eligible institutions described in subparagraph (B). 
"(B) In order to receive an allocation pursuant to subparagraph 
(A) an institution shall be an eligible institution from which 50 
percent or more of the Pell Grant recipients attending such eligible 
institution graduate from or transfer to a 4-year institution of 
higher education.". 
(h) CONSEQUENCES OF FAILURE TO AWARD.—Section 413D(e) of 
the Act (20 U.S.C. 1070b-3(e)) is amended— 
(1) by inserting "(1)" after the subsection heading; and 
(2) by adding at the end the following new paragraph: 
"(2) If xinder 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 amoimt 
returned. The Secretary may waive this paragraph for a specific 
institution if the Secretary finds that enforcing this paragraph 
would be contrary to the interest of the program.". 
SEC. 404. STATE STUDENT INCENTIVE GRANTS. 
(a) PURPOSES OF SUBPART.—Section 415A of the Act (20 U.S.C. 
1070c) is amended to read as follows: 
"(a) PURPOSE OF SUBPART.—It is the purpose of this subpart 
to make incentive grants available to States to assist States in 
providing grants to— 
"(1) eligible students attending institutions of higher edu-
cation or participating in programs of study abroad that are 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 507 
approved for credit by institutions of higher education at which 
such students are enrolled; and 
''(2) eligible students for campus-based community service 
work-stuc^r. 
•*(b) AUTHORIZATION OF APPROPRIATIONS; AVAILABILITY.— 
"(1) IN GENERAL.—^There are authorized to be appropriated 
$105,000,000 for fiscal year 1993, and such sums as may be 
necessary for each of the 4 succeedmg fiscal years. 
"(2) AVAILABILITY.—Sums appropriated pursuant to the 
autiiority of paragraph (1) for any fiscal year shall remain 
available for payments to States under this subpart until the 
end of the fiscal year succeeding the fiscal year for which 
such sums were appropriated.". 
(b) MAXIMUM GRANT.—Section 415C(bX2) of the Act (20 U.S.C. 
1070c-2(b)(2)) is amended by striking ''$2,500'' and inserting 
''$5,000''. 
(c) FEES FOR DETERMINATIONS OF NEED PROHIBITED.—Section 
415C(bX4) of the Act is amended by inserting before the semicolon 
the following: ", except that for the purpose of collecting data 
to make such determination of financial need, no student or parent 
shall be charged a fee that is payable to an entity other than 
such State". 
(d) ALLOCATION RULE.—Section 415C(b)(7) of the Act is amended 
to read as follows: 
"(7) provides that if the State's allocation under this subpart 
is based in part on the financial need demonstrated by students 
who are independent students or attending the institution less 
than fiill time, a reasonable proportion of the State's allocation 
shall be made available to such students. 
SEC. 406. HEP/CAMP. 
(a) ELIGIBLE PERSONS.— 
(1) SERVICES PROVIDED BY HIGH SCHOOL EQUIVALENCY PRO-
GRAM.—Section 418A(b) of the Act (20 U.S.C 1070d-2(b)) is 
amended— 
(A) by striking paragraph (1) and inserting the following: 
"(1) recruitment services to reach persons— 
"(AXi) who are 16 years of age and over; or 
"(ii) who are beyond the age of compulsory school attend-
ance in the State in which such persons reside and are 
not enrolled in school; 
"(BXi) who themselves, or whose parents, have spent 
a minimum of 75 days during the past 24 months in 
migrant and seasonal farmwork; or 
'lii) who are eli^ble to participate, or have participated 
within the precedmg 2 years, in programs under subpart 
1 of part D of chapter 1 of title I of the Elementary 
and Secondary Education Act of 1965 or section 402 of 
the Job Training Partnership Act; and 
"(C) who lack a high school diploma or its equivalent;"; 
and 
(B) in paragraph (4)— 
(i) by inserting a comma after "concerning; and 
(ii) by inserting a comma after "obtaining. 
(2) SERVICES PROVIDED BY COLLEGE ASSISTANCE MIGRANT PRO-
GRAM.—Section 418A(cXl) of the Act is amended to read as 
follows: 
106 STAT. 508 
PUBLIC LAW 102-325—JULY 23, 1992 
"(1) outreach and recruitment services to reach persons who 
themselves or whose parents have spent a minimum of 75 
days during the past 24 months in migrant and seasonal farm-
work or who have participated or are ehgible to participate, 
in programs under subpart 1 of part D of chapter 1 of title 
I of the Elementary and Secondary Education Act of 1965 
or section 402 of the Job Training Partnership Act, and who 
meet the minimum qualifications for attendance at a college 
or university;". 
20 use i070d-2. 
(b) FOLLOW-UP SERVICES.—Section 418A(c) of the Act is further 
amended— 
(1) in paragraph (2), by redesignating subparagraphs (A) 
through (E) as clauses (i) through (v), respectively; 
(2) in paragraph (3), by redesignating subparagraphs (A) 
through (H) as clauses (i) through (viii), respectively; 
(3) by redesignating paragraphs (1) through (6) (as amended) 
as subparagraphs (A) through (F), respectively; 
(4) by inserting the paragraph designation "(1)" after the 
sulDsection heading; and 
(5) by adding at the end thereof the following new paragraph: 
"(2) A recipient of a grant to operate a college assistance migrant 
program under this subpart shall provide followup services for 
migrant students after such students have completed their first 
year of college, and shall not use more than 10 percent of such 
grant for such followup services. Such followup services may 
include— 
"(A) monitoring and reporting the academic progress of stu-
dents who participated in the project during such student's 
first year of college and during such student's subsequent years 
in college; and 
"(B) referring such students to on- or off-campus providers 
of counseling services, academic assistance, or financial aid.". 
(c) GRANT CYCLES.—Section 418A(e) of the Act is amended— 
(1) in the subsection heading, by striking "THREE-YEAR" and 
inserting "FIVE-YEAR"; and 
(2) by striking "3-year period" and inserting "5-year period". 
(d) AUTHORIZATION OF APPROPRLVTIONS.—Section 418A(g) of the 
Act is amended to read as follows: 
"(g) AUTHORIZATION OF APPROPRIATIONS.—(1) There are author-
ized to be appropriated for the high school equivalency program 
$15,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years. 
"(2) There are authorized to be appropriated for the college assist-
ance migrant program $5,000,000 for fiscal year 1993 and such 
simis as may be necessary for each of the 4 succeeding fiscal 
years.". 
SEC. 
4
0
6
. 
BYRD 
HONORS 
SCHOLARSHIP 
PROGRAM. 
(a) DEFINITIONS.—Section 419B of the Act (20 U.S.C. 1070d-
32) is repealed. 
(b) PERIOD OF AWARD.—Section 419C(b) of the Act (20 U.S.C. 
1070d-33(b)) is amended to read as follows: 
"(b) PERIOD OF AWARD.—Scholarships under this section shall 
be awarded for a period of not more than 4 years for the first 
4 years of study at any institution of higher education eligible 
to participate in any programs assisted under this title.". 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 509 
(c) ALLOCATION AMONG STATES.—Section 419D of the Act 
(20 
U.S.C. 1070d-34) is amended to read as follows: 
"ALLOCATION AMONG STATES 
"SEC. 419D. (a) ALLOCATION FORMULA.—From the sums appro-
priated pursuant to the authority of section 419K for any fiscal 
year, the Secretary shall allocate to each State that has an agree-
ment under section 419E an amount equal to $1,500 multiplied 
by the number of scholarships determined by the Secretary to 
be available to such State in accordance with subsection (b). 
"(b) NUMBER OF SCHOLARSHIPS AVAILABLE.—The number of schol-
arships to be made available in a State for any fiscal year shall 
bear the same ratio to the number of scholarships made available 
to all States as the State's population ages 5 through 17 bears 
to the population ages 5 through 17 in all the States, except that 
not less than 10 scholarships shall be made aveiilable to any State. 
"(c) USE OF CENSUS DATA.—For the purpose of this section, the 
population ages 5 through 17 in a State and in all the States 
shall be determined by the most recently available data, satisfactory 
to the Secretary, 
fi-om 
the Bureau of the Census.". 
(d) SELECTION OF SCHOLARS.—Section 419G of the Act (20 U.S.C. 
1070d-37) is amended— 
(1) by amending subsection (b) to read as follows: 
"(b) ADOPTION OF PROCEDURES.—The State educational agency 
shall adopt selection procedures designed to ensure an equitable 
geographic distribution of awards within the State (and in the 
case of the District of Columbia, the Commonwealth of Puerto 
Rico, the Virgin Islands, American Samoa, the Commonwealth of 
the Northern Mariana Islands, Guam, or Palau (until such time 
as the Compact of Free Association is ratified), not to exceed 10 
individuals will be selected 
fi:om 
such entities)."; £ind 
(2) by adding at the end the following new subsection: 
"(d) TIMING OF SELECTION.—The selection process shall be com-
pleted, and the awards made, prior to the end of each secondary 
school academic year.". 
(e) STIPENDS AND SCHOLARSHIP CONDITIONS.—Section 419H(a) 
of the Act (20 U.S.C. 1070d-38(a)) is amended by inserting before 
the period the following: ", except that in no case shall the total 
amount of financial aid awarded to such student exceed such stu-
dent's total cost-of-attendance". 
(f) CONSTRUCTION OF NEEDS PROVISIONS.—Section 419J of the 
Act (20 U.S.C. 1070d-40) is amended by striking "Nothing" and 
inserting "Except as provided in section 471, nothing". 
(g) AWARDS CEREMONY.— 
(1) REPEAL.—Section 4191 of the Act (20 U.S.C. 1070d-39) 
is repealed. 
(2) CONFORMING AMENDMENTS.—Section 419E of the Act (20 
U.S.C. 1070d-35) is amended— 
(A) in paragraph (3) by inserting "and" after the semi-
colon; 
(B) in paragraph (4) by striking "at an awards ceremony 
in accordance with section 4191; and" and inserting a 
period; and 
(3) by striking paragraph (5). 
(h) AUTHORIZATION OF APPROPRIATIONS.—Section 419K of the Act 
2
0 use 
is amended to read as follows: 
I070d-4l. 
106 STAT. 510 
PUBLIC LAW 102-325—JULY 23, 1992 
20 u s e 1070e-l. 
20 use 1070f. 
20 u s e 1070a 
note. 
20 u s e 1071. 
"AUTHORIZATION OF APPROPRIATIONS 
"SEO. 419K. There are authorized to be appropriated for this 
subpart $10,000,000 for fiscal year 1993 and such sums as may 
be necessary for each of the 4 succeeding fiscal yesirs.". 
SEC. 407. PAYMENTS TO INSTITUTIONS OF HIGHER EDUCATION. 
Section 420 of the Act (20 U.S.C. 1070e) is repealed. 
SEC. 408. VETERANS OUTREACH. 
Section 420A of the Act (20 U.S.C. 1070f[a)) is repealed. 
SEC. 409. CHILD CARE. 
Section 420B(c) of the Act is amended by striking "fiscal year 
1987" and mserting "fiscal year 1993" and by striking "$10,000,000" 
and inserting "$20,000,000". 
SEC. 410. EFFECTIVE DATES FOR AMENDMENTS TO PART A. 
(a) IN GENERAL.—^The changes made in part A of title IV of 
the Act by the amendments made by this part shall take effect 
on the date of enactment of this Act, except— 
(1) as otherwise provided in such part A; 
(2) that the changes made in section 411, relating to Pell 
Grants, shall apply to the awarding of Pell Grants for periods 
of enrollment beginning on or after July 1,1993; and 
(3) that the changes in section 413C(a)(2), relating to the 
Federal share for the supplemental educational opportimity 
grant program, shall apply to funds provided for such progreim 
for the award years beginning on or after July 1,1993. 
PART 
B—FEDERAL 
FAMILY 
EDUCATION 
LOANS 
SEC. 411. PROGRAM DESIGNATION AND DURATION. 
(a) NAME OF PROGRAMS.—Part B of title IV of the Act (20 U.S.C. 
1071 et seq.) is amended— 
(1) by striking the heading of such part and inserting the 
following: 
"PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM"; and 
(2) by striking section 421(c) (20 U.S.C. 1070f(c)), and insert-
ing the following: 
"(c) DESIGNATION.—^The program estabKshed imder this part shall 
be referred to as the 'Robert T. Stafford Federal Student Loan 
Program'. Loans made pursuant to sections 427 and 428 shall 
be known as 'Federal Stafford Loans'.". 
(b) PROGRAM DURATION.— 
(1) FEDERAL INSURANCE DURATION.—Section 424(a) of the 
Act (20 U.S.C. 1074(a)) is amended— 
(A) by striking "October 1, 1992" and inserting "October 
1,1998*; and 
(B) by striking "September 30, 1997" and inserting "Sep-
tember 30, 2002^. 
(2) INTEREST SUBSIDY DURATION.—Section 428(a)(5) (20 U.S.C. 
1078(a)(5)) of 
the Act is amended— 
(A) by striking "September 30, 1992" and inserting "Sep-
tember 30,1998*; and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 511 
(B) by striking "September 30, 1997" and inserting "Sep-
tember 30, 2002^'. 
(c) 
GUARANTEE AUTHORITY CONTINGENT ON TIMELY RULE-
MAKING.—Section 421 of the Act is amended by inserting after 
20 use 1071. 
subsection (c) the following new subsection: 
"(d) LIMITATION ON AUTHORIZATION TO GUARANTEE NEW LOANS 
UNDER THIS PART.—^Notwithstanding any other provision of this 
part, no new loan guarantees shall be issued after June 30, 1994, 
if the Secretary does not issue final regulations implementing the 
changes made to this part under the Higher Education Amendments 
of 1992 prior to that date. The authority to issue new loan guaran-
tees sh^l resume upon the Secretary's issuance of such regulations. 
This subsection shall not provide the basis for avoiding any require-
ments for notice and public hearing on such regulations.". 
SEC. 412. ADVANCES FOR RESERVE FUNDS OF STATE AND NONPROFIT 
PRIVATE LOAN INSURANCE PROGRAMS. 
Section 422 of the Act (20 U.S.C. 1072) is amended— 
(1) in subsection (a)(2), by adding at the end the following 
new sentence: 
"Except as provided in section 428(c)(10)(E) or (F), such 
unencumbered non-Federal portion shall not be subject to recall, 
repajnnent, or recovery by the Secretary."; and 
(2) by adding at the end thereof the following new sub-
sections: 
"(e) CORRECTION FOR ERRORS UNDER REDUCTION OF EXCESS CASH 
RESERVES.— 
"(1) IN GENERAL.—^The Secretary shall pay any guaranty 
agency the amount of reimbursement of claims imder section 
428(c)(1), filed between September 1, 1988, and December 31, 
1989, which were previously withheld or canceled in order 
to be applied to satisfy such agenc/s obligation to eliminate 
excess cash reserves held by such agency, based on the maxi-
mum cash reserve (as described in subsection (e) of this section 
as in effect on September 1, 1988) permitted at the end of 
1986, if such maximum cash reserve was miscalculated because 
of erroneous financial information provided by such agency 
to the Secretary and if (A) such erroneous information is veri-
fied by an audited financial statement of the reserve fund, 
signed by a certified public accountant, and (B) such audited 
financial statement is provided to the Secretary prior to Janu-
ary 1,1993. 
"(2) AMOUNT.—^The amoimt of reimbursement for claims shall 
be equal to the amount of reimbursement for claims withheld 
or canceled in order to be applied to such agency's obligation 
to eliminate excess cash reserves which exceeds the amoiuit 
of that which would have been withheld or canceled if the 
maximum excess cash reserves had been accurately calculated. 
"(f) REFUND OF CASH RESERVE PAYMENTS.—The Secretary shall, 
within 30 days after the date of enactment of the Higher Education 
Amendments of 1992, pay the fiill amount of pa)rments withheld 
or canceled under paragraph (3) of this subsection to any guaranty 
agency which— 
"(1) was required to eliminate excess cash reserves, based 
on the maximimi cash reserve (as described in subsection (e) 
of this section as in effect on September 1, 1988) permitted 
at the end of 1986; 
106 STAT. 512 
PUBLIC LAW 102-325--JULY 23, 1992 
"(2) appealed the Secretary's demand that such agency should 
eliminate such excess cash reserves and received a waiver 
of a portion of the amount of such excess cash reserves to 
be eliminated; 
"(3) had payments under section 428(cXl) or section 428(f) 
previously withheld or canceled in order to be applied to satisfy 
such SLgencys obligation to eliminate excess cash reserves held 
by such agency, based on the maximum cash reserve (as 
described in subsection (e) of this section as in effect on Septem-
ber 1,1988) permitted at the end of 1986; and 
"(4) according to a Department of Education review that 
was completed and forwarded to such guaranty agency prior 
to January 1, 1992, is expected to become insolvent during 
or before 1996 and the payments withheld or canceled imder 
paragraph (3) of this subsection are a factor in such agenc3r's 
impending insolvency.". 
SEC. 413. LIMITATIONS ON FEDERAL LOAN INSURANCE. 
Section 425 of the Act (20 U.S.C. 1075) is amended— 
(1) in subsection (a)(lXA) by striking clauses (i), (ii), and 
(iii) and inserting the following: 
"(i) in the case of a student at an eligible institution 
who has not successfully completed the first year of a 
program of undergraduate education— 
"(I) $2,625, if such student is enrolled in a program 
whose length is at least one academic year in length 
(as determined under section 481); 
"(II) $1,750, if such student is enrolled in a program 
whose length is less than one academic year, but at 
least % of such an academic year; and 
"(III) $875, if such student is enrolled in a progrsim 
whose length is less than %, but at least Va, of such 
an academic year; 
"(ii) in the case of a student who has successfully com-
pleted such first year but has not successfully completed 
the remainder of a program of imdergraduate study— 
"(I) $3,500, if such student is enrolled in a program 
whose length is at least one academic year in length 
(as determined under section 481); 
"(II) $2,325, if such student is enrolled in a progrsim 
whose length is less than one academic year, but at 
least V3 of such an academic year; and 
"(III) $1,175, if such student is enrolled in a program 
whose length is less than %, but at least Va, of such 
an academic year; 
"(iii) in the case of a student at an eligible institution 
who has successfully completed such first and second year 
but has not successfully completed the remainder of a 
program of undergraduate study— 
"(I) $5,500, if such student is enrolled in a program 
whose length is at least one academic year in length 
(as determined under section 481); 
"(II) $3,675, if such student is enrolled in a program 
whose length is less than one academic year, but at 
least Vs of such an academic year; and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 513 
"(III) $1,825, if such student is enrolled in a program 
whose length is less than %, but at least Va, of such 
an academic year; and 
"(iv) in the case of a graduate or professional student 
(as defined in regulations of the Secretary) at an eligible 
institution, $8,500;". 
(2) in subsection (a)(2XA), by striking clauses (i) and (ii) 
and inserting the following: 
**(i) $23,000, in the case of any student who has not success-
fully completed a program of imdergraduate education, exclud-
ing loans made under section 428A or 428B; and 
(ii) $65,500, in the case of any graduate or professional 
student (as defined by regulations of the Secretary) and (I) 
including any loans which are insured by the Secretary imder 
this section, or by a guaranty agency, made to such student 
before the student became a graduate or professional student), 
but (II) excluding loans made imder section 428A or 428B, 
except that the Secretary may increase the Umit applicable to 
students who are pursuing programs which the Secretary deter-
mines are exceptionaUy expensive.". 
SEC. 414. EUGmnJTY OF STUDENT BORROWERS AND TERMS OF FED. 
ERALLY INSURED STUDENT LOANS. 
(a) SECURITY AND ENDORSEMENT.—Section 427(a)(2)(A) of the Act 
(20 U.S.C. 1077(aX2)(A)) is amended to read as follows: 
"(A) is made without security and without endorsement;". 
(b) INSURED LOAN DEFERMENTS.—Section 427(a)(2)(C) of the Act 
is amended to read as follows: 
''(C) provides that periodic installments of principal need 
not be paid, but interest shall accrue and be paid, during 
any period— 
**(i) during which the borrower— 
"(I) is pursuing at least a half-time course of 
study as determined by an eUgible institution; or 
"(II) is pursuing a course of study pursuant to 
a graduate fellowship program approved by the 
Secretary, or pursuant to a rehabilitation training 
program for individuals with disabilities approved 
by the Secretary, 
except that no borrower shall be eUgible for a 
deferment under this clause, or a loan made imder 
this part (other than a loan made under 428B or 428C), 
while serving in a medical internship or residency pro-
gram; 
"(ii) not in excess of 3 years during which the bor-
rower is seeking and unable to find nill-time employ-
ment; or 
"(iii) not in excess of 3 years for any reason which 
the lender determines, in accordance with regulations 
prescribed by the Secretary under section 435(o), has 
caused or wul cause the borrower to have an economic 
hardship; 
and provides that any such period shall not be included 
in determining the 10-year period described in subpara-
graph (B);". 
(c) GRADUATED REPAYMENT.—Section 427 of the Act is amended— 
(1) in subsection (aX2)— 
69-194 O—93 
18 : <^ S (Pt 1) 
106 STAT. 514 
PUBLIC LAW 102-325—JULY 23, 1992 
(A) by striking "and" at the end of subparagraph (G); 
(B) by redesignating subparagraph (H) as subparagraph 
(I); and 
(C) by inserting after subparagraph (G) the following: 
"(H) provides that, no more than 6 months prior to the 
date on which the borrower's first pa3m(ient on a loan 
is due, the lender shall offer the borrower the option of 
repaying the loan in accordance with a graduated or 
income-sensitive repajmient schedule established by the 
lender and in accordance with the regulations of the Sec-
retary; and"; and 
(2) in subsection (c), by striking "MINIMUM 
REPAYMENT 
RATE.—The total of the payments" and inserting "SPECIAL 
REPAYMENT RULES.—Except as provided in subsection (a)(2)(H), 
the total of the pajonents". 
20 use 1077. 
(d) STUDY ABROAD.—Section 427(a)(3) of the Act is amended 
to read as follows: 
"(3) the funds borrowed by a student are disbursed to the 
institution by check or other means that is payable to and 
requires the endorsement or other certification by such student, 
except— 
"(A) that nothing in this title shall be interpreted— 
"(i) to allow the Secretsiry to require checks to be 
made copayable to the institution and the borrower; 
or 
"(ii) to prohibit the disbursement of loan proceeds 
by means other than by check; and 
"(B) in the case of any student who is studjdng outside 
the United States in a program of study abroad that is 
approved for credit by the home institution at which such 
student is enrolled, the funds shall, at the request of the 
borrower, be delivered directly to the student £uid the 
checks may be endorsed, and fund transfers authorized, 
pursuant to an authorized power-of-attomey; and", 
(e) MINIMUM PAYMENT FOR MARRIED COUPLES; MINIMUM PAY-
MENT OF INTEREST.—Section 427(c) of the Act is further amended 
by striking ", except that in the case of a husband and wife" 
and all that follows through "whichever is less" and inserting "(but 
in no instance less than me amount of interest due and payable)". 
SEC. 415. APPLICABLE INTEREST RATES. 
(a) PLUS AND S L S LOAN INTEREST RATE.—Section 427A(c)(4) of 
the Act (20 U.S.C. 1077a(c)(4)) is amended by adding at the end 
the following new subparagraph: 
"(D) Notwithstanding subparagraph (A)— 
"(i) for any loan made pursuant to section 428A for 
which the first disbursement is made on or after October 
1, 1992— 
"(I) subparagraph (B) shall be applied by substituting 
'3.1' for '3.25'; and 
"(II) the interest rate shall not exceed 11 percent; 
and 
"(ii) for any loan made pursuant to section 428B for 
which the first disbursement is made on or after October 
1, 1992— 
"(I) subparagraph (B) shall be applied by substituting 
'3.1'for'3.25'; and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 515 
"(II) the interest rate shall not exceed 10 percent.". 
(b) EXCESS INTEREST PAYMENTS.—Section 427A(e) of the Act is 20 use i077a. 
amended— 
(1) in paragraph (1)— 
(A) by striking "IN GENERAL" and inserting "EXCESS 
INTEREST ON 10 PERCENT LOANS"; 
(B) by striking "paragraph (3)" and inserting "paragraph 
(5)"; 
(2) in paragraph (2), by inserting "FOR 10 PERCENT LOANS" 
after "(2) AMOUNT OF ADJUSTMENT"; 
(3) by striking paragraph (5); 
(4) by redesignating paragraphs (3) and (4) as paragraphs 
(5) and (6), respectively; 
(5) by inserting the following new paragraphs after paragraph 
(2): 
"(3) EXCESS INTEREST ON LOANS AFTER 1992 AMENDMENTS, 
TO BORROWERS WITH OUTSTANDING BALANCES.—If, with respect 
to a loan made on or after the date of enactment of the Higher 
Education Amendments of 1992 to a borrower, who on the 
date of entering into the note or other written evidence of 
the loan, has an outstanding balance of principal or interest 
on any other loan made, insured, or guaranteed imder this 
part, the sum of the average of the bond equivalent rates 
of 91-day Treasury bills auctioned for that quarter and 3.1 
percent is less than the applicable interest rate, then an adjust-
ment shall be made— 
"(A) by calculating excess interest in the amoimt com-
puted imder paragraph (4) of this subsection; and 
"(B)(i) during any period in which a student is eUgible 
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 Government; or 
"(ii) during any other period, by crediting such excess 
interest to the reduction of principal to the extent provided 
in paragraph (5) of this subsection. 
"(4) AMOUNT OF ADJUSTMENT.—The amount of any adjust-
ment of interest on a loan to be made imder this subsection 
for any quarter shall be equal to— 
"(A) the applicable interest rate minus the sum of (i) 
the average of the bond equivalent rates of 91-day Treasury 
bills auctioned for such calendar quarter, and (ii) 3.1 per-
cent; multiplied by 
"(B) the outstanding principal balance of the loan (not 
including unearned interest added to principal) at the end 
of such calendar quarter; divided by 
"(C) four."; and 
(6) in p£iragraph (5), as redesignated— 
(A) by striking "or by reducing the number of payments" 
and inserting "by reducing the number of pa3rments"; and 
(B) by sti^dng the period at the end and inserting ", 
or by reducing the amoimt of the final payment of the 
loan. Nothing in this paragraph shall be construed to 
require the lender to make additional disclosures pursuant 
to section 433(b).". 
(c) INTEREST RATE FOR NEW BORROWERS.—Section 427A of the 
Act is further amended— 
publication. 
106 STAT. 516 
PUBLIC LAW 102-325—JULY 23, 1992 
(1) by redesignating subsections (e), (f) and (g) as subsections 
(f), (g) Euid (h), respectively; and 
(2) by inserting after subsection (d) the following new sub-
section: 
"(e) INTEREST RATES FOR NEW BORROWERS AFTER OCTOBER 1, 
1992.— 
"(1) IN GENERAL.—Notwithstanding subsections (a), (b), and 
(d) of this section, with respect to any loan (other than a 
loan made pursuant to sections 428A, 428B and 428C) for 
which the first disbursement is made on or after October 1, 
1992, to any borrower who, on the date of entering into the 
note or other written evidence of the loan, has no outstanding 
balance of principal or interest on any loan made, insured, 
or guaranteed under this part, the applicable rate of interest 
shall, during any 12-month period beginning on July 1 and 
ending on June 30, be determined on the preceding June 1 
and be equal to— 
"(A) the bond equivalent rate of 91-day Treasury bills 
auctioned at the final auction held prior to such June 
1; plus 
"(B) 3.10 percent, 
except that such rate shall not exceed 9 percent. 
Federal 
"(2) CONSULTATION.—The Secretary shall determine the 
S^hif^wnn 
applicable rate of interest imder paragraph (1) after con-
sultation with the Secretary of the Treasury and shall publish 
such rate in the Federal Register as soon as practicable after 
the date of determination.". 
SEC. 416. AMENDMENTS TO SECTION 428. 
(a) FEDERAL INTEREST SUBSIDIES.— 
(1) REQUIREMENTS TO RECEIVE SUBSIDY.—Section 428(a)(2)(C) 
of the Act (20 U.S.C. 1078(a)(2)(C)) is amended— 
(A) by amending clause (i) to read as follows: 
"(i) a student's estimated financial assistance means, for 
the period for which the loan is sought, the Eimount of 
assistance such student will receive under subpart 1 of 
part A (as determined in accordance with section 484(b)), 
subpart 3 of p£irt A, and parts C and E of this title, 
and any veterans' education benefits paid because of enroll-
ment in a postsecondary education institution, including 
veterans' education benefits (as defined in section 480(c)), 
plus other scholarship, grant, or loan assistance."; and 
(B) by amending clause (ii) to read as follows: 
"(ii) the determination of need and of the amount of 
a loan by an ehgible institution under subparagraph (B) 
with respect to a student shall be calculated in accordance 
with part F.". 
(2) LIMITATION ON INTEREST PRIOR TO FIRST DISBURSEMENT.— 
Section 428(a)(3)(A) of the Act is amended by adding at the 
end the following new clause: 
"(v) A lender may not receive interest on a loan for any 
period that precedes the date that is— 
"(I) in the case of a loan disbursed by check, 10 days 
before the first disbursement of the loan; or 
"(II) in the case of a loan disbursed by electronic fiinds 
transfer, 3 days before the first disbursement of the loan.". 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 517 
(3) LOANS THAT HAVE NOT BEEN CONSUMMATED.—Section 20usci078. 
428(a) of the Act is amended by inserting after paragraph 
(6) the following new paragraph: 
"(7) LOANS THAT HAVE NOT BEEN CONSUMMATED.—Lenders 
may not charge interest or receive interest subsidies or special 
allowance payments for loans for which the disbursement 
checks have not been cashed or for which electronic funds 
transfers have not been completed.", 
(b) LOAN AMOUNTS.— 
(1) ANNUAL LIMITS.—Section 428(b)(1)(A) of the Act is 
amended— 
(A) by inserting "or in a program of study abroad 
approved for credit by the eUgible home institution at which 
such student is enrolled" after "at an eligible institution"; 
and 
(B) by striking clauses (i) through (iii) and inserting 
the following: 
"(i) in the case of a student at an eUgible institution 
who has not successftdly completed the first year of 
a program of undergraduate education— 
"(I) $2,625, if such student is enrolled in a pro-
gram whose length is at least one academic year 
in length (as determined under section 481); 
"(II) $1,750, if such student is enrolled in a 
program whose length is less than one academic 
year, but at least % of such an academic year; 
and 
"(III) $875, if such student is enrolled in a pro-
gram whose length is less than %, but at least 
Va, of such an academic year; 
"(ii) in the case of a student who has successfully 
completed such first year but has not successfully com-
pleted the remainder of a program of undergraduate 
study— 
"(I) $3,500, if such student is enrolled in a pro-
gram whose length is at least one academic yesir 
in length (as determined under section 481); 
"(II) $2,325, if such student is enrolled in a 
program whose length is less than one academic 
year, but at least % of such academic year; and 
"(III) $1,175, if such student is enrolled in a 
program whose length is less than Va, but at least 
Va, of such academic year; 
"(iii) in the case of a student at an ehgible institution 
who has successfully completed such first and second 
year but has not successfully completed the remainder 
of a program of imdergraduate study— 
"(I) $5,500, if such student is enrolled in a pro-
I 
gram whose length is at least one academic year 
! 
in length (as determined under section 481); 
"(II) $3,675, if such student is enrolled in a 
program whose length is less than one academic 
year, but at least % of such an academic year; 
and 
"(III) $1,825, if such student is enrolled in a 
program whose length is less than %, but at least 
Va, of such an academic year; and 
106 STAT. 518 
PUBLIC LAW 102-325—JULY 23, 1992 
"(iv) in the case of a graduate or professional student 
(as defined in regulations of the Secretary) at an 
eligible institution, $8,500;". 
20 use 1078. 
(2) AGGREGATE LIMITO.—Section 428(b)(1)(B) of the Act is 
amended by striking clauses (i) and (ii) and inserting the fol-
lowing: 
"(i) $23,000, in the case of any student who has 
not successfully completed a program of undergraduate 
education, excluding loans made under section 428A 
or428B;and 
"(ii) $65,500, in the case of any graduate or profes-
sional student (as defined by regulations of the Sec-
retary), and (I) including any loans which are insured 
by the Secretary imder this section, or by a guaranty 
agency, made to such student before the student 
became a graduate or professional student, but (II) 
excluding loans made under section 428A or 428B, 
except that the Secretary may increase the limit applicable 
to students who are pursuing programs which the Secretary 
determines are exceptionally expensive.", 
(c) REPAYMENT PERIOD CALCULATIONS; INCOME SENSITIVE REPAY-
MENT.— 
(1) AMENDMENT.—Subparagraphs (D) and (E) of section 
428(b)(1) of the Act are amended to read as follows: 
"(D) provides that (i) the student borrower shall be enti-
tled to accelerate without penalty the whole or any part 
of an insured loan, (ii) the repayment period of any insured 
loan may not exceed 10 years, and (iii) the note, or other 
written evidence of any loan, may contain such reasonable 
provisions relating to repayment in the event of default 
by the borrower as may be authorized by regulations of 
the Secretary in effect at the time such note or written 
evidence was executed, and shall contain a notice that 
repajonent may, following a default by the borrower, be 
subject to repayment in accordance with tiie regulations 
required by subsection (m) if the Secretary has published 
the finding required by paragraph (2) of such subsection; 
"(E) subject to subparagraphs (D) and (L), and except 
as provided by subparagraph (M), provides that— 
"(i) not more than 6 months prior to the date on 
which the borrower's first payment is due, the lender 
shall offer the borrower of a loan made, insured, or 
guaranteed under this section or section 428A, the 
option of repajdng the loan in accordance with a grad-
uated or income-sensitive repajmient schedule esteb-
lished by the lender and in accordance with regulations 
of the Secretary; and 
"(ii) repayment of loans shall be in installments over 
a period of not less than 5 years (unless the student, 
during the 6 months immediately preceding the start 
of the repayment period, specifically requests that 
repajrment be made over a shorter period) nor more 
than 10 years commencing at the beginning of the 
repajrment period determined under paragraph (7) of 
this subsection;". 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 519 
(2) DEFINITION OF REPAYMENT PERIOD.—Section 428(b) of the 
Act is amended by adding at the end the following new para- 20 USC 1078. 
graph: 
"(7) REPAYMENT PERIOD.—(A) In the case of a loan made 
under section 427 or 428, the repajmaent period shall begin 
on the day immediately following the expiration of the 6-month 
period after the student ceases to cgirry at least one-half the 
normal full-time academic workload as determined by the 
institution, unless the borrower requests £ind is granted a 
repa5nnent schedule that provides for repayment to commence 
at an earlier point in time, and shall exclude any period of 
authorized deferment or forbearance. 
"(B) In the case of a loan made under section 428A or 428H, 
the repayment period shall begin on the day the loan is dis-
bursed, or, if the loan is disbursed in multiple installments, 
on the day of the last such disbursement, and shall exclude 
any period of authorized deferment or forbearance. 
"(C) In the case of a loan made xmder section 428B or 428C, 
the repajonent period shall begin on the day the loan is dis-
bursed, and shall exclude any period of authorized deferment 
or forbearance.". 
(d) MINIMUM PAYMENT FOR MARRIED COUPLES; MINIMUM PAY-
MENT OF INTEREST.—Section 428(b)(l)(L)(i) of the Act is amended 
by striking ", except that, in the case of a husband and wife" 
and all that follows through "whichever is less" and inserting "(but 
in no instance less than the amount of interest due and payable)". 
(e) DEFERMENTS.— 
(1) AMENDMENT.—Section 428(b)(l)(M) of the Act is amended 
to read as follows: 
"(M) provides that periodic installments of principal need 
not be paid, but interest shall accrue and be paid by the 
Secretary, during any period— 
"(i) during which the borrower— 
"(I) is pursuing at least a heilf-time course of 
study as determined by an eligible institution; or 
"(II) is pursuing a course of study pursuant to 
a graduate fellowship program approved by the 
Secretary, or pursuant to a rehabiUtation training 
program for disabled individuals approved by the 
Secretary, 
except that no borrower shall be eligible for a 
deferment under this clause, or loan made imder this 
p£irt (other than a loan made under 428B or 428C), 
while serving in a medical internship or residency pro-
gram; 
"(ii) not in excess of 3 years during which the bor-
rower is seeking and unable to find mil-time employ-
ment; or 
"(iii) not in excess of 3 years for any reason which 
the lender determines, in accordance with regulations 
prescribed by the Secretary imder section 435(o), has 
caused or will cause the borrower to have an economic 
hardship;". 
(2) DEFINITION OF ECONOMIC HARDSHIP.—Section 435 of the 
Act is amended by adding at the end the following new sub- 20 use 1085. 
section: 
"(o) ECONOMIC HARDSHIP.— 
106 STAT. 520 
PUBLIC LAW 102-325-JULY 23, 1992 
**(1) IN GENERAL.—For purposes of this part and part E, 
a borrower shall be considered to have an economic hardship 
i
f
— 
"(A) such borrower is working full-time and is earning 
an amount which does not exceed the greater o
f
— 
"(i) the minimum wage rate described in section 
6 of the Fair Labor Standards Act of 1938; or 
"(ii) an amoimt equal to 100 percent of the poverty 
line for a family of 2 as determined in accordance 
with section 673(2) of the Commimity Service Block 
Grant Act; or 
"(B) such borrower meets such other criteria as are estab-
lished by the Secretary by regulation in accordance with 
paragraph (2). 
"(2) CONSIDERATIONS.—In establishing criteria for purposes 
of paragraph (1)(B), the Secretary shall consider the borrower's 
income and debt-to-income ratio as primary factors.". 
20 use 1078. 
(f) DISBURSEMENT.—Section 428(b)(l)(N) of the Act is amended 
by striking "except in the case of attendance at an institution 
outside the United States, the funds shall be delivered directly 
to the student;" and inserting "except in the case of students who 
are studying outside the United States in a program of study 
abroad that is approved for credit by the home institution at which 
the student is enrolled, the funds shall, at the request of the 
borrower, be delivered directly to the student and the checks may 
be endorsed, and fund transfers authorized, pursuant to £ui author-
ized power-of-attomey;". 
(g) CONSEQUENCES OF LS&T ACTIONS.—Section 428(b)(l)(T) is 
amended to read as follows: 
"(T) authorizes (i) the limitation of the total number 
of loans or volume of loans, made under this part to stu-
dents attending a particular eligible institution during any 
academic year; and (ii) the limitation, suspension, or termi-
nation of the eligibility of an eligible institution i
f
—
• 
"(I) such institution is ineligible for the emergency 
action, limitation, suspension, or termination of eligible 
institutions under regulations issued by the Secretary 
or is ineligible pursuant to criteria, rules, or regula-
tions issued under the student loan insurance program 
which are substcmtially the same as regulations with 
respect to emergency action, limitation, suspension, 
or termination of such eligibility issued by the Sec-
retary; 
"(II) there is a State constitutional prohibition affect-
ing the eligibility of such an institution; 
"(III) such institution fails to make timely refunds 
to students as required by regulations issued by the 
Secretary or has not satisfied within 30 days of issu-
ance a nnal judgment obtained by a student seeking 
such a refund; 
"(IV) such institution or an owner, director, or officer 
of such institution is found guilty in any criminal, 
civil, or administrative proceeding, or such institution 
or an owner, director, or officer of such institution 
is found liable in any civil or administrative proceeding, 
regarding the obtaining, maintenance, or disbursement 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 521 
of State or Federal grant, loan, or work assistance 
funds; or 
*
*
(
V
) such institution or an owner, director, or ofELcer 
of such institution has unpaid fmancial liabilities 
involving the improper acquisition, expenditure, or 
refund of State or Federal financial assistance funds; 
except that, if a guaranty agency limits, suspends, or termi-
nates the participation of an eUgible institution, the Sec-
retary shall apply that limitation, suspension, or termi-
nation to all locations of such institution, unless the Sec-
retary finds, within 30 days of notification of the action 
by the guaranty agency, that the gu£iranty agency's action 
did not comply with the requirements of tiiis section;", 
(h) AuDiTO OP LENDERS.—Section 428(b)(l)(U) of the Act is 20usci078. 
amended— 
(1) in clause (i), by striking "and" at the end thereof; 
(2) by inserting before the semicolon at the end thereof the 
foUowing: ", and (iii) for (I) a compliance audit of each lender 
at least once a year and covering the period since the most 
recent audit, conducted by a quedified, independent organization 
or person in accordance with standards established by the 
Comptroller General for the audit of governmental organiza-
tions, programs, and functions, and as prescribed in regulations 
of the Secretary, the results of which shall be submitted to 
the Secretary, or (II) with regard to a lender that is audited 
under chapter 75 of title 31, United States Code, such audit 
shall be deemed to satisfy the requirements of subclause (I) 
for the period covered by such audit, except that the Secretary 
may waive the requirements of this clause (iii) if the lender 
submits to the Secretary the results of an audit conducted 
for other purposes that tiie Secretary determines provides the 
same information as the audits required by this clause;". 
(i) FORBEARANCE.—Section 428(bXl)(V) of the Act is amended— 
(1) by striking out "and" at the end of clause (i); 
(2) in clause (ii), by inserting "or (ii)" after "clause (i)" each 
place such term appears; 
(3) by striking the period at the end of clause (ii) and inserting 
a semicolon; 
(4) by redesignating clause (ii) as clause (iv); and 
(5) by inseiting alter clause (i) the following new clauses: 
"(ii) provides tiiat, if the borrower's debt burden under 
this title equals or exceeds 20 percent of gross income 
and the borrower submits a written request, a lender shall 
grant the borrower forbearance of principal and interest 
(or principal only at the option of the borrower), and shall 
renew such forbearance at 12-month intervals for a period 
not to exceed 3 years, on such terms as are otherwise 
consistent with the regulations of the Secretary and set 
forth in writing by the parties to the loan; 
"(iii) provides that the form of forbearance granted by 
the lender for purposes of this subparagraph shall be the 
temporary cessation of payments, imless the borrower 
selects forbe£u:ance in the form of an extension of time 
for making payments, or smaller payments than were pre-
viously sched\:ded; and". 
106 STAT. 522 
PUBLIC LAW 102-325—JULY 23, 1992 
(j) ADDITIONAL GUARANTY AGREEMENT REQUIREMENTS.—Section 
20 use 1078. 
428(b)(1) of the Act is amended by striking subparagraphs (W) 
and (X) and inserting the following: 
"(W) provides authority for the guaranty agency to 
require a participation agreement between the guaranty 
agency and each eligible institution within the State in 
which it is designated, as a condition for guaranteeing 
loans made on behalf of students attending the institution; 
"(X) provides assurances that the agency will implement 
all requirements of the Secretary for uniform claims and 
procedures pursuant to section 432(1); and 
"(Y) provides information to the Secretary in accordance 
with section 428(c)(10) and maintains reserve funds deter-
mined by the Secretary to be sufficient in relation to such 
agenc/s guarantee obligations.", 
(k) CONTENTS OF INSURANCE PROGRAM AGREEMENTS.—Section 
428(b)(2) of the Act is amended— 
(1) in subparagraph (C), by striking ", as the Secretary may 
reasonably require to carry out the Secretary's functions imder 
this part, and inserting ", including financial information, as 
the Secretary may reasonably require to carry out the Sec-
retary's functions under this part and protect the financial 
interest of the United States,"; 
(2) in subparagraph (D)— 
(A) by striking "at least once every 2 years" in clause 
(i) and inserting "on at least an annual basis"; 
(B) by striking "guid" at the end of clause (ii); 
(3) in subparagraph (E)— 
(A) by inserting "(i)" after the subparagraph designation; 
(B) by striking the period at the end thereof £ind inserting 
a semicolon and "and"; and 
(C) by adding at the end the following new clause: 
"(ii) provide that the lender (or the holder of the loan) 
shall, not later than 120 days after the borrower has left 
the ehgible institution, notify the borrower of the date 
on which the repayment period begins; and"; and 
(4) inserting at tiie end thereof the following new subpara-
graph: 
"(F) provide that, if the sale, other transfer, or assign-
ment of a loan made under this part to another holder 
will result in a change in the identity of the party to 
whom the borrower must send subsequent payments or 
direct any communications concerning the loans, then— 
"(i) the transferor £uid the transferee will be required, 
not later than 45 days from the date the transferee 
acquires a legally enforceable right to receive payment 
from the borrower on such loan, each to provide a 
separate notice to the borrower of— 
"(I) the sale or other transfer; 
"(II) the identity of the transferee; 
"(III) the name and address of the party to whom 
subsequent pa3rments or communications must be 
sent; and 
"(IV) the telephone numbers of both the trans-
feror and the transferee; and 
"(ii) the transferor wiU be required to notify the 
guaranty agency, and, upon the request of an institu-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 523 
tion of higher education, the guaranty agency shall 
notify the last such institution the student attended 
prior to the beginning of the repayment period of any 
loan made under this part, o
f
— 
"(I) any sale or other transfer of the loan to 
another holder; and 
"(II) the address and telephone number by which 
contact may be made with such other holder con-
cerning repajnnent of the loan, 
except that this subparagraph (F) shall only apply if the 
borrower is in the grace period described in section 
427(a)(2)(B) or 428(b)(7) or is in repayment status.". 
(1) GUARANTY AGENCY INCENTIVE PAYMENTS.—Section 428(b)(3) 
of the Act is amended— 
20 use 1078. 
(1) by redesignating subparagraphs (B) and (C) as sub-
paragraphs (C) and (D), respectively; and 
(2) by inserting after subparagraph (A) the following new 
subpsuragraph: 
"(B) offer, directly or indirectly, any premium, incentive 
pajnnent, or other inducement to any lender, or any agent, 
employee, or independent contractor of any lender or guar-
anty agency, in order to administer or market loans made 
under this part (other than a loan made under section 
428H or a loan made as part of a guaranty agency's lender-
of-last-resort program) for the purpose of securing the des-
ignation of that guaranty agency as the insurer of such 
loans;", 
(m) ELIMINATION OF TEACHER DEFERMENT.—Section 428(b) of 
the Act is amended— 
(1) by striking paragraph (4); and 
(2) by redesignating paragraphs (5) and (6) as paragraphs 
(4) and (5), respectively. 
(n) PROCEDURES FOR DEFERMENTS.—Section 428(b)(4) of the Act 
(as redesignated in subsection (m)) is amended by adding at the 
end thereof the following new sentence: "Requests for deferment 
of repayment of loans imder this part by students engaged in 
graduate or postgraduate fellowship-supported study (such as pur-
suant to a Fulbright grant) outside the United States shall be 
approved until completion of the period of the fellowship.". 
(o) INFORMATION FROM STATE LICENSING BOARDS.—Section 428(b) 
of the Act is further amended by inserting after paragraph (5) 
(as redesignated in subsection (m)) the following new paragraph: 
"(6) STATE GUARANTY AGENCY INFORMATION REQUEST OF 
STATE LICENSING BOARDS.—Each guargmty agency is authorized 
to enter into agreements with each appropriate State licensing 
board under which the State licensing board, upon request, 
will furnish the guaranty agency with the address of a student 
borrower in any case in which the location of the student 
borrower is unknown or unavailable to the guaranty agency.". 
(p) GUARANTY AGENCY AGREEMENTS.— 
(1) 
AUTHORITY TO ENTER 
INTO AGREEMENTS.—Section 
428(c)(1)(A) of the Act is amended by striking the period at 
the end and inserting a comma and "or later than 45 days 
after the guaranty agency discharges its insurance obligation 
on the loan.". 
106 STAT. 524 
PUBLIC LAW 102-325—JULY 23, 1992 
(2) ADDITIONAL REVIEW OF EXCEPTIONAL PERFORMANCE PRO-
20 use 1078. 
HIBITED.—Section 428(c)(1) is amended by adding at the end 
the following new subparagraph: 
"(D) Reimbursements of losses made by the Secretary on 
loans submitted for claim by an eligible lender, servicer, or 
guaranty agency designated for exceptional performance xmder 
section 4281 shaU not be subject to additional review by the 
Secretary or repurchase by the guaranty agency for any reason 
other than a determination by the Secretary that the ehgible 
lender, servicer, or guaranty agency engaged in fraud or other 
purposeful misconduct in obtaining designation for exceptional 
performance.". 
(3) CONTENTS OF GUARANTY AGREEMENTS.—Section 428(c)(2) 
of the Act is amended— 
(A) by striking "and" at the end of subparagraph (F); 
(B) by redesignating subparagraph (G) as subparagraph 
(I); and 
(C) by inserting after subparagraph (F) the following 
new subparagraphs: 
"(G) shall prohibit the Secretary from making any 
reimbursement under this subsection to a guaranty agency 
when a default claim is based on an inability to locate 
the borrower, imless the guaranty agency, at the time 
of filing for reimbursement, demonstrates to the Secretary 
that diligent attempts have been made to locate the bor-
rower through the use of reasonable skip-tracing techniques 
in accordance with regulations prescribed by the Secretary; 
and 
"(H) set forth assurances that— 
"(i) upon the request of an eligible institution, the 
guaranty agency shall, subject to clauses (ii) and (iii), 
fiimish to the institution information with respect to 
students (including the names and addresses of such 
students) who received loans made, insured, or guaran-
teed under this part for attendance at the eUgible 
institution and for whom preclaims assistance activi-
ties have been requested under subsection (1); 
"(ii) the guaranty agency may require the pajmaent 
by the institution of a reasonable fee (as determined 
in accordance with regulations prescribed by the Sec-
retary) for such information; £uid 
"(iii) the guaranty agency will require the institution 
to use such information only to assist the institution 
in reminding students of their obligation to repay stu-
dent loans and shall prohibit the institution from dis-
seminating the information for any other purpose.". 
(4) FORBEARANCE.—Section 428(c)(3) of the Act is amended— 
(A) by striking "and" at the end of subparagraph (A); 
(B) by striking the period at the end of subparagraph 
(B) and inserting "; and"; 
(C) by inserting after subparagraph (B) the following 
new subparagraph: 
"(C) shall contain provisions that specify that the form 
of forbearance granted by the lender for purposes of this 
paragraph shall be the temporary cessation of payments, 
unless the borrower selects forbearance in the form of 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 525 
an extension of time for making pa3nnents, or smaller pay-
ments than were previously scheduled."; and 
(D) by striking the last sentence and inserting the fol-
lowing: 
"Guaranty agencies shall not be precluded from permitting 
the parties to such a loan from entering into a forbearance 
agreement solely because the loan is in default. The Secretary 
shall permit lenders to exercise administrative forbearances 
that do not require the agreement of the borrower, under condi-
tions authorized by the Secretary. Such forbearances shall 
include (i) forbearances for borrowers who are delinquent at 
the time of the granting of an authorized period of deferment 
under section 428(b)(l)(M) or 427(a)(2)(C), and (ii) if the bor-
rower is less than 60 days delinquent on such loans at the 
time of sale or transfer, forbearances for borrowers on loans 
which are sold or transferred.". 
(5) 
NEW 
PROGRAMS' 
INSURANCE 
PERCENTAGE.—Section 
428(c)(7) of the Act is amended— 
20 use 1078. 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), by striking 
"(1)(B)" and inserting "(1)(C)"; and 
(ii) in clause (i), by inserting "and ends before Octo-
ber 1,1991" before the semicolon; 
(B) in subparagraph (B), by inserting "or (B)" after "(A)"; 
(C) by redesignating subparagraph (B) (as amended) as 
subparagraph (C); and 
(D) by inserting after subparagraph (A) the following 
new subparagraph: 
"(B) Notwithstanding the provisions of paragraph (1)(C), the 
Secretary may pay a guaranty agency 100 percent of the 
amount expended by such agency in discharge of such agency's 
insurance obligation for any fiscal year which— 
"(i) begins on or after October 1,1991; and 
"(ii) is the fiscal year in which such guaranty agency 
begins to actively carry on a student loan insurance pro-
gram which is subject to a guaranty agreement under 
subsection (b) or is one of the 4 succeeding fiscsil years.". 
(6) 
CONSIDERATIONS IN REQUIRING ASSIGNMENT.—Section 
428(c)(8) of the Act is amended by adding at the end the 
following new sentences: "Prior to making such determination 
for any guaranty agency, the SecretEiry shall, in consultation 
with the guaranty agency, develop criteria to determine 
whether such agency has made adequate collections efforts. 
In determining whether a guaranty agency's collection efforts 
have met such criteria, the Secretary shaU consider the agenc/s 
record of success in collecting on defaulted loans, the age of 
the loans, and the amount of recent pa3rments received on 
the loans.". 
(7) GUARANTY AGENCY RESERVE LEVEL.—Section 428(c) of the 
Act is amended by adding at the end the following new para-
graph: 
"(10) GUARANTY AGENCY RESERVE LEVEL.—(A) Each guaranty 
agency which has entered into an agreement with the Secretary 
pursuant to this subsection shall maintain a current minimum 
reserve level of at least .5 percent of the total attributable 
amoimt of all outstsmding loans guarginteed by such agency 
for the fiscal year of the agency that begins in 1993. For 
106 STAT. 526 
PUBLIC LAW 102-325—JULY 23, 1992 
purposes of this paragraph, such total attributable amount 
does not include amounts of outstanding loans transferred to 
the guaremty agency from £inother guaranty agency pursuant 
to a plan of the Secretary in response to the insolvency of 
the latter such guaranty agency. The minimum reserve level 
shall increase to— 
"(i) .7 percent of such total attributable amount for the 
fiscjj year of the agency that begins in 1994; 
"(ii) .9 percent of such total attributable amount for the 
fiscal year of the agency that begins in 1995; and 
"(iii) 1.1 percent of such total attributable amount for 
each fiscal year of the agency that begins on or after 
January 1,1996. 
"(B) The Secretary shall collect, on an annual basis, informa-
tion from each guaranty agency having an agreement under 
this subsection to enable the Secretary to evaluate the financial 
solvency of each such agency. The information collected shall 
include the level of such agencjr's current reserves, cash dis-
bursements and accoimts receivable. 
"(C) If (i) any guaranty agency falls below the required mini-
mum reserve level in any 2 consecutive years, (ii) any guaranty 
agenc^s Federal reimbursement payments are reduced to 80 
percent pursuant to section 428(c)(l)(B)(ii), or (iii) the Secretary 
determines that the administrative or financied condition of 
a guaranty agency jeopardizes such agency's continued abiUty 
to perform its responsibiUties under its gu£iranty agreement, 
then the Secretary shall require the guaranty agency to submit 
and implement a management plan acceptable to the Secretary 
within 30 working days of any such event. 
"(D) Each management plan described in subparagraph (C) 
shall include the means by which the guaranty agency will 
improve its financial and administrative condition to the 
required level within 18 months. 
(E) The Secretary may terminate a guaranty agency's agree-
ment in accordance with subparagraph (F) i
f
— 
"(i) a guaranty agency required to submit a management 
plan under this paragraph fails to submit a plan that 
IS acceptable to the Secretary; 
"(ii) the Secretary determines that a guaranty agency 
has failed to improve substantially its administrative and 
financial condition; or 
"(iii) the Secretary determines that the guaranty agency 
is in danger of financial collapse. 
"(F) Except as provided in subparagraph (G), if a guaranty 
agencjr's agreement imder this subsection is terminated pursu-
ant to subparagraph (E), then the Secretary shall assume 
responsibility for all fiinctions of the guaranty agency under 
the loan insurance program of such agency. In performing 
such fimctions the Secretary is authorized to— 
"(i) permit the transfer of guarantees to another guaranty 
agency; 
"(ii) revoke the reinsurance agreement of the guaranty 
agency at a specified date, so as to require the merger, 
consolidation, or termination of the guaranty agency; 
"(iii) tremsfer guarantees to the Department of Education 
for the purpose of pa3nnent of sucn claims and process 
such claims using the claims standards of the guaranty 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 527 
agency, if such standards are determined by the Secretary 
to be in compliance with this Act; 
"(iv) design and implement a plan to restore the guaranty 
agencj^s viability; 
"(v) provide the guaranty agency with additional advance 
funds in accordance with section 422(c)(7) in order to meet 
immediate cash needs of the guaranty agency and ensure 
the uninterrupted payment of claims, with such restrictions 
on the use of such funds, as determined appropriate by 
the Secretary; or 
"(vi) take any other action the Secretary determines nec-
essary to ensure the continued availability of loans made 
under this part to residents of the State or States in 
which the guaranty agency did business, the full honoring 
of all guarantees issued by the guaranty agency prior to 
the Secretary's assumption of the functions of such agency, 
and the proper servicing of loans guaranteed by the guar-
anty agency prior to me Secretar/s assumption of the 
functions of such agency, and to avoid disruption of the 
student loan program. 
"(G) The Secretary may not take any action under subpara-
graph (E) or (F) against any guaranty agency that is backed 
by the full faith and credit of the State where such guaranty 
agency is the primary guarantor. 
"(H) The Secretary shall not take any action under subpara-
graph (E) or (F) without giving the guaranty agency notice 
and the opportunity for a hearing. 
"(I) Notwithstanding any other provision of law, the informa-
tion transmitted to the Secretary pursuant to this paragraph 
shall be confidential and exempt from disclosure under section 
552 of title 5, United States Code, relating to freedom of 
information, or any other Federal law. 
"(J) The Secretary, within 3 months after the end of each Reports, 
fiscal year, shall submit to the House Committee on Education 
and Labor and the Senate Committee on Labor and Human 
Resources a report specifying the Secretary's assessment of 
the fiscal soundness of the guaranty agency system, together 
with recommendations for legislative changes, if necessary, for 
the medntenance of a strong guaranty agency system.". 
(8) CONFORMING AMENDMENTS.—Section 422(c) of the Act (20 
U.S.C. 1072(c)) is amended— 
(A) in paragraph (5), by striking "Advances pursuant to this 
subsection" in paragraph (5) and inserting "Except as provided 
in paragraph (7), advances pursuant to this subsection"; and 
(B) by inserting, after paragraph (6), the following new para-
graph: 
"(7) EMERGENCY ADVANCES.—The Secretary is authorized to 
make advances, on terms and conditions satisfactory to the 
Secretary, to a guaranty agency in accordance with section 
428(c)(10)(F)(v) in order to assist the agency in meeting its 
immediate cash needs and ensure the uninterrupted payment 
of default claims by lenders.", 
(q) ADMINISTRATIVE COST ALLOWANCES.—Section 428(f)(1) of the 
Act is amended— 
(1) in subparagraph (AXi), by striking "commercial lender" 
and inserting "eligible lender"; and 
(2) by adding at the end the following new subparagraph: 
Confidential 
information. 
20 use 1078. 
106 STAT. 528 
PUBLIC LAW 102-325—JULY 23,1992 
"(C) No payment may be made under this paragraph for 
loans for which the disbursement checks have not been cashed 
or for which electronic funds transfers have not been com-
pleted.", 
(r) LENDERS-OP-LAST-RESORT.—Subsection (j) of section 428 of 
20 use 1078. 
the Act is amended— 
(1) by striking "(j) LENDERS-OF-LAST-RESORT.—" and inserting 
the following: 
"(j) LENDERS-OF-LAST-RESORT.— 
"(1) GENERAL REQUIREMENT.—"; 
(2) by indenting the margin of the text of such subsection 
by 2 em spaces; and 
(3) by adding at the end the following new paragraphs: 
"(2) RULES AND OPERATING PROCEDURES.—The guaranty 
agency shall develop rules and operating procedures for the 
lender oflast resort program designed to ensure that— 
"(A) the program establishes operating hours and meth-
ods of application designed to facilitate application by stu-
dents; 
"(B) information about the availability of loans imder 
the program is made available to institutions of higher 
education in the State; 
"(C) appropriate steps are taken to ensure that borrowers 
receiving loans under the progrsim are appropriately coun-
seled on their loan obligation; and 
"(D) the guaranty agency notifies the Secretary when 
the guaranty agency believes or has reason to believe that 
the Secretary may need to exercise the Secretarsr's author-
ity imder section 439(q). 
"(3) LIMITATION ON LENDER-OF-LAST-RESORT PROGRAM.—(A) 
Subject to the provisions of subparagraphs (B) and (C), a guar-
anty agency or eligible lender is not required to make loans 
described in this section for attendsuice at an institution 
which— 
"(i) has a cohort default rate, as defined in section 435(m), 
which exceeds 25 percent for the most recent year for 
which a rate has been calculated by the Secretary; 
"(ii) has not been eligible for, and has not participated 
in, the loan program under this part during the most 
recent 18 consecutive months; or 
"(iii) is currently subject to an emergency action or limita-
tion, suspension, or termination proceeding of any guaranty 
agency or the Secretsiry. 
Termination 
"(B) Until July 1, 1994, this paragraph shall not apply to 
*
^
*
®
- 
any institution that is— 
"(i) a part B institution within the mesuiing of section 
322(2) of this Act; 
"(ii) a tribally controlled commimity college within the 
meaning of section 2(a)(4) of the Tribally Controlled Com-
munity College Assistance Act of 1978; or 
"(iii) a NavEo'o Commimity College under the Navajo 
Commimity College Act. 
"(C) Notwithstanding the provisions of subparagraph (A), 
the Secretary may require a guarsmty agency or other eligible 
lender to make loans described in this section for attendance 
at an institution if there are, in the judgment of the Secretary, 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 529 
exceptional mitigating circumstances that would make the 
application of this paragraph inequitable.". 
(s) INFORMATION ON DEFAULTS.—Section 428(k) of the Act is 20 use i078. 
amended by adding at the end the following new paragraph: 
"(3) BORROWER LOCATION INFORMATION.—Any mformation 
provided by the institution relating to borrower location shall 
be used by the guaranty agency in conducting required skip-
tracing activities.", 
(t) INCOME CONTINGENT REPAYMENT.—Section 428 of the 
Act 
is amended by adding at the end the following new subsection: 
"(m) INCOME CONTINGENT REPAYMENT.— 
"(1) ESTABLISHMENT OF TERMS AND CONDITIONS.—The Sec- Regulations, 
retary may estabUsh by regulation terms and conditions requir-
ing the income contingent repa3mient of loans that are required 
to be repaid under tiiis subsection. Such regulations shall 
specify the schedules under which the borrower's income will 
be assessed for repa3rment of loans, shall permit the discharge 
of remaining obligation on the loan not later than 25 years 
after the commencement of income contingent repayment, and 
may provide for the potential collection of amoimts in excess 
of the principal and interest owed on the original loan or 
loans. 
"(2) COLLECTION MECHANISM.—The Secretary shall, to the Contracts, 
extent funds are available therefor, enter into one or more 
contracts or other agreements with private firms or other agen-
cies of the Grovemment as necessary to cany out the purposes 
of this subsection. The regulations required by paragraph (1) 
shall not be effective unless the Secretary pubUshes a finding 
that^ 
"(A) the Secretary has, pursuant to this paragraph, estab-
lished a collection mechanism that will provide a high 
degree of certainty that collections will be made in accord-
ance with the repajonent option established under para-
graph (1); and 
"(B) the use of such repayment option and collection 
mechanism will result in an increase in the net amount 
the Government will collect. 
"(3) LOANS FOR WHICH INCOME CONTINGENT REPAYMENT IS 
R
E
Q
U
I
R
E
D
.
—
^
A loan made under this part (other than under 
section 428B) is required to be repaid under this section i
f
— 
"(A) the note or other evidence of the loan contains 
a notice that it is subject to repa5nnent imder this sub-
section; 
"(B) the note or other evidence of the loan has been 
assigned to the Secretary for collection pursuant to sub-
section (c)(8); and 
"(C) the Secretary has pubUshed the finding required 
by paragraph (2) of this subsection. 
"(4) ADDITIONAL AUTHORITY.—The Secretary is authorized to Regulations, 
prescribe such regulations as are necessciry to carry out the 
purposes of this subsection and to protect the Federal fiscal 
interest.". 
SEC. 417. SUPPLEMENTAL LOAN PROGRAM. 
(a) NAME OF THE PROGRAM.—Section 428A of the Act (20 U.S.C. 
1078-1) is amended by striking the heading of such section and 
inserting the following: 
106 STAT. 530 
PUBLIC LAW 102-325—JULY 23, 1992 
"FEDERAL 
SUPPLEMENTAL 
LOANS 
FOR 
STUDENTS". 
20 use 1078-L 
(b) LOAN LIMITS.—Section 428A(b) of the Act is amended by 
striking paragraphs (1) and (2) and inserting the following: 
"(1) ANNUAL LIMIT.—Subject to paragraphs (2) and (3), the 
maximum amount a student may borrow in any academic year 
or its equivalent or in any period of 7 consecutive months, 
whichever is longer, is: 
"(A) In the case of a student at an eligible institution 
who has not successfully completed the first and second 
year of a program of undergraduate education— 
"(i) $4,000, if such student is enrolled in a program 
whose length is at least one academic year in length 
(as determined under section 481); 
"(ii) $2,500, if such student is enrolled in a program 
whose length is less than one academic year, but at 
least % of such an academic year; and 
"(iii) $1,500, if such student is enrolled in a program 
whose length is less than %, but at least Va, of such 
£in academic year. 
"(B) In the case of a student at an eligible institution 
who has successfully completed such first and second year 
but has not successfully completed the remainder of a 
program of undergraduate study— 
"(i) $5,000, if such student is enrolled in a program 
whose length is at least one academic year in length 
(as determined under section 481); 
"(ii) $3,325, if such student is enrolled in a program 
whose length is less than one academic year, but at 
least 2/3 of such an academic year; and 
"(iii) $1,675, if such student is enrolled in a program 
whose length is less than %, but at least Vs, of such 
an academic year. 
"(C) In the case of a graduate or professional student 
(as defined in regulations of the Secretary) at an eligible 
institution, $10,000. 
"(2) AGGREGATE LIMIT.—^The aggregate insured principal 
amount of insured loans made to any student under this section, 
minus any interest capitalized under subsection (c), shall not 
exceed— 
"(A) $23,000, in the case of any student who has not 
successfully completed a program of undergraduate edu-
cation; and 
"(B) $73,000, in the case of any graduate or professional 
student, as such terms are defined by regulations issued 
by the Secretary, including any loans which are insured 
by the Secretary under this section, or by a guaranty 
agency, made to such student before the student became 
, 
a graduate or professional student.". 
(c) COORDINATION OF STAFFORD AND S L S REPAYMENT.—Section 
428A(c)(l) of the Act is amended by adding at the end the following 
new sentences: "In the case of a borrower under this section who 
is also a borrower under a program of student loan insurance 
covered by an agreement imder sections 427 or 428(b), tiie lender 
shall notify the borrower of the option to defer the commencement 
of the repayment for six months after the student ceases to carry 
at an eligible institution at least one-half the norm^ fidl-time 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 531 
academic workload, as determined by the institution, except that 
interest shall begin to accrue, eind shall be paid in accordance 
with paragraph (2), notwithstanding such delay in the commence-
ment of repayment. The lender shall also notify the borrower of 
the borrower's option to commence repayment earUer than the 
beginning of sucn repayment period and the difference in total 
cost to the borrower.". 
(d) CAPITALIZATION OF INTEREST.—Section 428A(c)(2) of the Act 20 use i078-i. 
is amended to read as follows: 
"(2) CAPITALIZATION OF INTEREST.—(A) Interest on loans made 
under this section— 
"(i) which are disbiirsed in installments, 
"(ii) for which payments of principal are deferred under 
sections 427(a)(2XC)(i) and 428(b)(l)(M)(i), or 
"(iii) for which the commencement of the repa3maent 
period is delayed in accordance with paragraph (1) to 
coincide with tne commencement of the repayment period 
of a loan made under section 427 or 428, 
shall, if agreed upon by the borrower and the lender— 
"(I) be p£dd monthly or quarterly, or 
"(II) be added to the principal amount of the loan not 
more frequently than quarterly by the lender. 
"(B) Such capitalization of interest shall not be deemed to 
exceed the annual insurable Umit on account of the student.". 
(e) CONFORMING AMENDMENT.—Section 428A(c) of the Act is fur-
ther amended by adding at the end the following new paragraph: 
"(6) REPAYMENT PERIOD.—For piirposes of calculatmg me 10-
year repa3rment period under section 428(b)(1)(D), such period 
shall commence at the time the first payment of principsd 
is due from the borrower.". 
SEC. 418. PLUS LOANS. 
(a) NAME OF THE PROGRAM.—Section 428B of the Act (20 U.S.C. 
1078-2) is amended by striking the heading of such section and 
inserting the following: 
"FEDERAL PLUS LOANS". 
(b) CHECKS COPAYABLE.—Section 428B of the Act is amended— 
(1) in subsection (a)— 
(A) by striking "subsections (c) and (d)" and inserting 
"subsections (c), (d), and (e)"; and 
(B) by inserting after "Parents of a dependent student" 
the following: ", who do not have an adverse credit history 
as determined pursuant to regulations of the Secretary,"; 
and 
(2) in subsection (b)— 
(A) by striking the subsection designation and heading 
and paragraphs (1) and (2); and 
(B) by redesignating paragraph (3) as subsection (b); 
(3) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively; and 
(4) by inserting after subsection (b) the following new sub-
section: 
"(c) PLUS LOAN DISBURSEMENT.—All loans made under this sec-
tion shall be disbursed by— 
"(1) an electronic transfer of funds from the lender to the 
eligible institution; or 
106 STAT. 532 
PUBLIC LAW 102-325—JULY 23, 1992 
"(2) a check copayable to the eligible institution and the 
parent borrower.". 
(c) LIMITATION OF DEFERRAL.—Section 428B(d)(l) of the Act (as 
redesignated in paragraph (3)) is amended to read as follows: 
"(1) COMMENCEMENT OF REPAYMENT.—Repayment of principal 
on loans made under this section shall commence not later 
than 60 da^s after the date such loan is disbursed by title 
lender, subject to deferral during any period during which 
the parent meets the conditions required for a deferral under 
section 427(a)(2)(C) or 428(b)(l)(M).". 
(d) CAPITALIZATION OF INTEREST.—Section 428B(d)(2) of the Act 
(as redesignated in paragraph (3)) is amended to read as follows: 
"(2) CAPITALIZATION OF INTEREST.—Interest on loans made 
under this section for which payments of principal are deferred 
pursuant to paragraph (1) of this subsection shall, if agreed 
upon by the borrower and the lender (A) be psiid monthly 
or quarterly, or (B) be added to the principal amount of the 
loan not more frequently than quarterly by the lender. Such 
capitalization of interest shall not be deemed to exceed the 
annual insurable limit on account of the borrower.". 
SEC. 419. CONSOLIDATION LOANS. 
(a) NAME OF THE PROGRAM.—Section 428C of the Act (20 U.S.C. 
1078-3) is amended by striking the heading of such section and 
inserting the following: 
"FEDERAL CONSOLIDATION LOANS". 
(b) USE OF CONSOLIDATION TO AVOID DEFAULT.— 
(1) ELIGIBLE BORROWER.—(A) Section 428C(a)(3)(A)(i) is 
amended by striking "$5,000" and inserting "$7,500". 
(B) Section 428C(a)(3)(A)(ii) is amended to read as follows: 
"(ii) is in repayment status, or in a grace period preceding 
repa5anent, or is a delinquent or defaulted borrower who 
will reenter repayment through loan consolidation.". 
(2) ELIGIBLE LOANS.—Section 428C(a)(4)(A) of the Act is 
amended to read as follows: 
"(A) made, insured, or guaranteed under this part, includ-
ing loans on which the borrower has defaulted (but has 
made arrcingements to repay the obKgation on the defaulted 
loans satisfactory to the Secretary or guaranty agency, 
whichever insured the loans), except for loans made to 
parent borrowers under section 428B as in effect prior 
to the enactment of the Higher Education Amendments 
of 1986;". 
(c) EXTENSION OF CONSOLIDATION ELIGIBILITY PERIOD.—Section 
428C(a)(3)(B) of the Act is amended to read as follows: 
"(B)(i) An individual's status as an eligible borrower imder 
this section terminates upon receipt of a consolidation login 
under this section, except— 
"(I) with respect to eligible student loans received after 
the date of receipt of the consolidation loan; and 
, 
"(II) that loans received prior to the date of the consolida-
tion loEin may be added to the consolidation loan during 
, 
the 180-day period following the making of the consoUda-
tion loan. 
a.s 
"(ii) Loans made imder this section shall, to the extent used 
to discharge loans made under this title, be coimted against 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 533 
applicable limitations on aggregate indebtedness contained in 
sections 425(a)(2), 428(b)(l)rB), 428A(b)(2), and 464(aX2). Noth-
ing in this section shall be interpreted to authorize the Sec-
retary to require lenders, holders, or guarantors of consolidated 
loans to receive, to maintain, or to make reports with respect 
to preexisting records relating to any eligible student loan 
(as defined under paragraph (4)) discharged by a borrower 
in receiving a consolidation loan.". 
(d) CONSOLIDATION OF LOANS OF MARRIED BORROWERS.—Section 
428C(a)(3) of the Act is amended by adding at the end the following 20 use 1078-3. 
new subparagraph: 
"(C)(i) A married couple, each of whom has eligible student 
loans, may be treated as if such couple were an individual 
borrowing under subparagraphs (A) and (B) if such couple 
agrees to be held jointly and severally Uable for the repajonent 
of a consolidation loan, without regard to the amoimts of the 
respective loan obUgations that are to be consolidated, and 
wimout regard to any subsequent change that may occur in 
such couple's marital status. 
"(ii) Only one spouse in a married couple appl3mig for a 
consolidation loan under this subparagraph need meet any 
of the requirements of subsection (b) of this section, except 
that each spouse shall— 
"(I) individually make the initial certification that no 
other application is pending in accordance with subsection 
(b)(1)(A); and 
"(II) agree to notify the holder concerning any change 
of address in accordance with subsection (b)(4).". 
(e) INTEREST DURING DEFERRAL.—Section 428C(b)(4)(C) of the 
Act is amended to read as follows: 
"(C) provides that periodic instsJlments of principal need 
not be paid, but interest shall accrue and be paid by the 
Secretary, during any period for which the borrower would 
be ehgible for a deferred under section 428(b)(l)(M), and 
that any such period shall not be included in determining 
the repajonent period pursuant to subsection (c)(2) of this 
section;". 
(f) REPAYMENT SCHEDULES.—Section 428C(cX2) of the Act is 
amended by— 
(1) in the first sentence, by striking "maV' and inserting 
"shall"; and 
(2) by striking the second sentence and inserting the fol-
lowing: "Such repajonent terms shall require that if the sum 
of the consolidation loan and the amount outstanding on other 
student loans to the individual— 
"(i) is equal to or greater than $7,500 but less than 
$10,000, then such consohdation loan shall be repaid in 
not more than 12 years; 
"(ii) is equal to or greater than $10,000 but less than 
$20,000, then such consolidation loan shall be repaid in 
not more than 15 years; 
"(iii) is equal to or greater than $20,000 but less than 
$40,000, then such consolidation loan shall be repaid in 
not more than 20 years; 
"(iv) is equal to or greater than $40,000 but less than 
$60,000, then such consolidation loan shall be repaid in 
not more than 25 years; or 
106 STAT. 534 
PUBLIC LAW 102-325—JULY 23, 1992 
"(v) is equal to or greater than $60,000, then such consoU-
dation loan shsJl be repaid in not more than 30 years.". 
20 use 1078-3. 
(g) EXTENSION OF AUTHORITY.—Section 428C(d) of the Act is 
amended by striking "September 30, 1992" and inserting "Septem-
ber 30,1998". 
SEC. 420. DEFAULT REDUCTION PROGRAMS. 
Section 428F of the Act (20 U.S.C. 1078-6) is amended— 
(1) by striking subsection (a); 
(2) in subsection (b)— 
(A) in pEiragraph (1)(A)— 
(i) by striking "Upon" and inserting "Each guaranty 
agency shall enter into an agreement with the Sec-
retary which shall provide that upon"; and 
(ii) by adding at the end the following new sentence: 
"Neither the guaranty agency nor the Secretary shall 
demand from a borrower as monthly payment amounts 
referred to in this paragraph more than is reasonable 
and affordable based upon the borrower's total finan-
cial circumstances."; and 
(B) in paragraph (3), by inserting "or grants" after 
'loans"; 
(3) by redesignating subsection (b) (as amended in paragraph 
(2)) as subsection (a); and 
(4) by adding at the end the following new subsection: 
"(b) SPECIAL RULE.—Each guaranty agency shall establish a pro-
gram which allows a borrower with a defaulted loan or loans 
to renew eligibihty for all title IV student financial assistance 
(regardless of whether the defaulted loan has been sold to an 
eligible lender) upon the borrower's pa5maent of 6 consecutive 
monthly pajonents. The guaranty agency shall not demand from 
a borrower as a monthly pajnnent amount under this subsection 
more than is reasonable and affordable based upon the borrower's 
total financial circumstances.". 
SEC. 421. DISBURSEMENT RULES. 
(a) MONTHLY OR WEEKLY DISBURSEMENT.—Section 428G(c) of 
the Act (20 U.S.C. 1078-7) is amended— 
(1) by striking "and" at the end of paragraph (1); 
(2) by striking the period at the end of paragraph (2) and 
inserting "; and"; and 
(3) by adding at the end the following new paragraph: 
"(3) notwithstanding subsection (a)(2), may, with the permis-
sion of the borrower, be disbursed on a weekly or monthly 
basis, provided that the proceeds of the loan are disbursed 
in substantially equal weekly or monthly installments, as the 
case may be, over the period, of enrollment for which the loan 
is made. . 
(b) O
V
E
R
A
W
A
R
D ADJUSTMENTS.—Section 428G(d)(2) of the Act is 
amended by inserting before the period at the end of the first 
sentence the following: ", except that overawards permitted pursu-
ant to section 443(b)(4) of the Act shall not be construed to be 
overawards for purposes of this paragraph". 
(c) SALES PRIOR TO DISBURSEMENT PROHIBITED.—Section 428G 
of the Act is amended by adding at the end thereof the following 
new subsection: 
"(g) SALES PRIOR TO DISBURSEMENT PROHIBITED.^AU eligible 
lender shall not sell or transfer a promissory note for any loan 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 535 
made, insured, or guaranteed under this part until the final dis-
bursement of such loan has been made, except that the prohibition 
of this subsection shall not apply if— 
"(1) the sale of the loan does not result in a change in 
the identity of the party to whom pa5nnents will be made 
for the loan; £ind 
"(2) the first disbursement of such loan has been made.". 
SEC. 
422. 
UNSUBSmiZED 
LOANS; 
PERFORMANCE AGREEMENTS; 
LOAN 
FORGIVENESS. 
Part B of title IV of the Act is amended by inserting after 
section 428G the following new sections: 
"UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE-INCOME BORROWERS 
"SEC. 428H. (a) IN GENERAL.—It is the purpose of this section 20 use i078-8. 
to authorize insured loans under this part for borrowers who do 
not qualify for Federal interest subsidy pajnnents under section 
428 of tiiis Act. Except as provided in this section, all terms and 
conditions for Federal Stafford loans established under section 428 
shall apply to loans made pursu£int to this section. 
"(b) ELIGIBLE BORROWERS.—^Any student meeting the require-
ments for student eligibility under section 484 shall be entitled 
to borrow an unsubsidized Stafford loan. Such student shall provide 
to the lender a statement from the eligible institution at which 
the student has been accepted for enrollment, or at which the 
student is in attendance, which— 
"(1) sets forth such student's estimated cost of attendance 
(as determined under section 472); 
"(2) sets forth such student's estimated financisd assistance, 
including a loan which qualifies for subsidy payments under 
section 428; and 
"(3) certifies the eligibility of the student to receive a loan 
under this section and the amount of the loan for which such 
student is eligible, in accordance with subsection (c). 
"(c) DETERMINATION OF AMOUNT OF LOAN.—The determination 
of the amount of a loan by an eUgible institution under subsection 
(b) shall be calculated by subtracting fi-om the estimated cost of 
attendance at the eligible institution any estimated financial assist-
ance reasonably available to such student. An eligible institution 
may not, in carrying out the provisions of subsection (b) of this 
section, provide a statement which certifies the ehgibility of any 
student to receive any loan imder this section in excess of the 
amount calculated imder the preceding sentence. 
"(d) LOAN LIMITS.—^The annual and aggregate limits for loans 
under this section shall be the same as those established under 
section 428(b)(1), less any amount received by such student pursu-
ant to the subsidized loan program established imder section 428. 
"(e) PAYMENT OF PRINCIPAL AND INTEREST.— 
"(1) COMMENCEMENT OF REPAYMENT.—Repayment of principal 
on loans made imder this section shaU 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. 
"(2) CAPITALIZATION OF INTEREST.—Interest on loans made 
under this section for which pa5rments of principal are not 
required during the in-school and grace periods or for which 
payments are deferred 
under 
sections 
427(a)(2)(C) and 
106 STAT. 536 
PUBLIC LAW 102-325—JULY 23, 1992 
428(bXlXM) shall, if agreed upon by the borrower and the 
lender (A) be paid monthly or quarterly, or (B) be added to 
the principal amount of me loan not more frequently than 
quarterly by the lender. Such capitalization of interest shall 
not be deemed to exceed the annual insurable Umit on account 
of the student. 
"(3) SUBSIDIES PROHIBITED.—^No payments to reduce interest 
costs shall be paid pursuant to section 428(a) of this part 
on loans made pursuant to this section. 
"(4) APPLICABLE RATES OF INTEREST.—Interest on loans made 
pursuant to this section shall be at the applicable rate of 
mterest provided in section 427A(e). 
*
*
(
f
) INSURANCE PREMIUM.— 
"(1) AMOUNT OP ORIGINATION FEE/INSURANCE PREMIUM.—The 
lender shall charge the borrower a combined origination fee 
and insurance premium in the amount of 6.5 percent of the 
E
rincipal amoimt of the loan, to be deducted proportionately 
*om each installment pa3nnent of the proceeds of the loan 
prior to payment to the borrower. A guaranty agency may 
not charge an insurance premium on any loan made imder 
this section. 
"(2) RELATION TO APPLICABLE INTEREST.—Such combined fee 
and premiimi shall not be taken into account for purposes 
of determining compUance with section 427A. 
**(3) DISCLOSURE REQUIRED.—The lender shall disclose to the 
borrower the amount and method of calculating the combined 
origination fee and insurance premium. 
*
X
4
) USE OF INSURANCE PREMIUM TO OFFSET DEFAULT COSTS.— 
Each lender making loans imder this section shall transmit 
all combined origination fee and insurance premiiims author-
ized to be collected from borrowers to the Secretary, who shall 
use such fees and premiums to pay the Federal costs of default 
claims paid for loans imder this section and to reduce the 
cost of special allowances paid thereon, if any, under section 
438(b). 
"(5) REVIEW OF INSURANCE PREMIUM.—In fiscal vear 1995, 
the Secretary is directed to £inalyze the risk rates of borrowers 
who have participated in this program in the 2 previous fiscal 
yesirs. If me Secretary finds, that as a result of this review, 
the projected defaults and special allowance costs of the 
unsuDsidized program do not exceed the 6.5 percent insiirance 
premium, the Secretary is directed to lower tne insurance pre-
mium accordingly. 
"(g) SINGLE APPLICATION FORM AND LOAN REPAYMENT SCHED-
ULE.—A guaranty agency shall use a single application form and 
a single repayment schedule for subsidized Federal Stafford loans 
made pursuant to section 428 and for unsubsidized Federal Stafford 
loans made pursuant to this section. 
"SPECIAL INSURANCE AND REINSURANCE RULES 
20 use 1078-9. 
**SEC. 4281. (a) DESIGNATION OF LENDERS, SERVICERS, AND GUAR-
ANTY AGENCIES.— 
"(1) AUTHORITY.—Whenever the Secretary determines that 
an eUgible lender, servicer, or guaranty agency has a compU-
ance performance rating that equals or exceeds 97 percent, 
the Secretary shall designate the eUgible lender, servicer, or 
guaranty agency, as the case may be, for exceptional perform-
PUBLIC LAW 102-325^JULY 23, 1992 
106 STAT. 537 
ance. The Secretary shall notify each appropriate guaranty 
agency of the eligible lenders and servicers designated under 
tMs section. 
"(2) COMPLIANCE PERFORMANCE RATING.—For purposes of 
paragraph (1), a compliance performance rating is determined 
with respect to compliance with due diligence in the collection 
of loans under this part for each year for which the determina-
tion is made. Such rating is equal to the percent of all due 
diUgence requirements appUcable to each loan, on average, 
as established by the Secretary by regulation, with respect 
to— 
"(A) loans serviced during the period by the eligible 
lender or servicer; or 
"(B) loans on which loan collection was attempted by 
the guaranty agency. 
"(b) PAYMENT TO LENDERS AND SERVICERS.— 
"(1) 100 PERCENT P
A
Y
M
E
N
T RULE.—Each guaranty agency 
shall pay each eUgible lender or servicer (as agent for an 
eligible lender) designated under subsection (a) 100 percent 
of the unpaid principal and interest of all loans for which 
claims are submitted for pajmient by that eligible lender or 
servicer for the one-year period following the receipt by the 
guaranty agency of the notification of designation under this 
section or imtil the guaranty agency receives notice from the 
Secretary that the designation of the lender or servicer under 
subsection (a) has been revoked. 
"(2) REVOCATION AUTHORITY.—The Secretary shall revoke the 
designation of a lender or servicer imder subsection (a) if any 
qu£irterly audit required under subsection (c)(5) is not received 
by the Secretary by the date established by the Secretary 
or if the audit indicates the lender or servicer failed to maintain 
97 percent or higher compliance with program regulations, 
as reflected in the performance of not less than 97 percent 
of all due diligence requirements appUcable to each loan, on 
average, as established by the Secretary for the purpose of 
this section, for 2 consecutive months or 90 percent for 1 
month. 
"(3) DOCUMENTATION.—Nothing in this section shall restrict 
or limit the authority of guaranty agencies to require the sub-
mission of claims dociunentation evidencing servicing performed 
on loans, except that the guaranty agency may not require 
greater documentation than that required for lenders and 
servicers not designated under subsection (a). 
"(4) PAYMENTS TO GUARANTY AGENCIES.—The Secretary shall 
pay to each guaranty agency designated under subsection (a) 
the appropriate percentage xmder this subsection for the 1-
year period following the receipt by the guaranty agency of 
the notification of designation under subsection (a). 
"(c) SUPERVISION OF DESIGNATED LENDERS AND SERVICERS.— 
"(1) AUDITS FOR LENDERS AND SERVICERS.—Each eligible 
lender or servicer desiring a designation imder subsection (a) 
shall have a financial and compliance audit of the loan portfolio 
of such eligible lender or servicer conducted annually by a 
quaUfied independent organization from a list of quedined 
organizations promulgated by the Secretary in accordance with 
standards established by the Comptroller General and the Sec-
retary. The standards shall measure the lender's or servicer's 
106 STAT. 538 
PUBLIC LAW 102-325—JULY 23, 1992 
complieince with the due diligence standards and shall include 
a defined statistical sampling technique designed to measure 
the performance rating of the eligible lender or servicer for 
the purpose of this section. Each eligible lender or servicer 
shall submit the audit required by this section to the Secretary 
and to each appropriate guaranty agency. 
"(2) ADDITIONAL INFORMATION ON LENDERS AND SERVICERS.— 
Each appropriate guaranty agency shall provide the Secretary 
with such other information in its possession regarding an 
eligible lender or servicer desiring designation as may relate 
to the Secretar3^s determination under subsection (a), including 
but not limited to any information suggesting that the applica-
tion of a lender or servicer for designation under subsection 
(a) should not be approved. 
"(3) 
SECRETARY'S 
DETERMINATIONS.—The Secretary 
shall 
make the determination under subsection (a) based upon the 
audits submitted imder this section, such other information 
as provided by any guaranty agency under paragraph (2), and 
any information in the possession of the Secretary or submitted 
by £iny other agency or office of the Federal Government. If 
the results of the audit are not persuasively rebutted by such 
other information, the Secretary shall inform the eligible lender 
or servicer and the appropriate guaranty agency that its 
application for designation as an exceptional lender or servicer 
has been approved. 
"(4) COST OF AUDIT.—Each eligible lender or servicer shall 
pay for all the costs of the audits required under this section. 
"(5) COMPLIANCE AUDIT.—In order to maintain its status as 
an exceptional eligible lender or servicer, the lender or servicer 
shall imdergo a quarterly compliance audit at tp^ end of each 
quarter (other than the quarter in which status as an excep-
tional lender or servicer is established through a 
financial 
and compliance audit, as described in subsection (c)(1)), and 
submit the results of such audit to the Secretary and such 
appropriate guaranty agency. The compliance audit will review 
compliance with due diligence requirements for the period since 
the last audit. 
"(6) Loss OF DESIGNATION.—^If the audit performed pursuant 
to paragraph (5) fails to meet the standards for designation 
as an exceptional lender or servicer under subsection (a)(1), 
the lender or servicer shall lose its designation as an exceptional 
lender or servicer. A lender or servicer receiving a compUance 
audit not meeting the standard for designation as an excep-
tional lender or servicer may reapply for designation under 
subsection (a) at any time. 
"(7) DUE DILIGENCE STANDARDS.—Due diligence standards 
used for determining compliance under paragraph (5) shall 
be promulgated by the Secretary after consultation with lend-
ers, guaranty agencies eind servicers and shall consist of a 
list of specinc elements for the Federal regulations selected 
to provide an indication of systems degradation. 
*X8) ADDITIONAL REVOCATION AUTHORITY.—Notwithstanding 
any other provision of this section, designation under subsection 
(a) may be revoked at any time by the Secretary if the Secretary 
determines that the ehgible lender or servicer has failed to 
maintain an overall level of regulatory compliance consistent 
with the audit submitted by tiie eUgible lender or servicer 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 539 
under this section or if the Secretary believes the lender or 
servicer may have engaged in fraud in securing designation 
under subsection (a) or is failing to service loans in accordance 
with program regulations. 
"(d) SUPERVISION OF DESIGNATED GUARANTY AGENCIES.— 
"(1) AUDIT OF GUARANTY AGENCIES.—Each guaranty agency 
desiring a designation xinder subsection (a) shall have a finan-
cial and compliance audit of the defaulted loan portfolio of 
such guaranty agency conducted annually by a qualified 
independent organization or person from a list of qualified 
organizations or persons promulgated by the Secretary in 
accordsuice with standards established by the Comptroller Gen-
eral and the Secretary. The standards shall include defined 
statistical sampling techniques designed to measure the per-
formance rating of the guaremty agency for the purpose of 
this section. Each guaranty agency shall submit the audit 
required by this paragraph to the Secretary. 
"(2) QUARTERLY SAMPLE AUDITS.—The Secretary may require 
quarterly sample audits as a means of determining continued 
qualification of the guaranty agency for designation as an excep-
tional guaranty agency. 
"(3) SECRETARY'S DETERMINATIONS.—The Secretary shall 
make the determination under subsection (a) based upon the 
audits submitted under this section and other information in 
his possession. If the results of the audit are not persuasively 
rebutted by such other information, the Secretary shall inform 
the guaranty agency that its application for designation as 
an exceptional guaranty agency has been approved. 
"(4) COSTS OF AUDITS.—Each guaranty agency shall pay for 
all of the costs of the audits regulated by this section. 
"(5) REVOCATION FOR FRAUD.—The Secretary may revoke the 
designation of a guarsmty agency imder subsection (a) at any 
time if the Secretary has reason to believe the guaranty agency 
secured its designation under subsection (a) thorough firaud or 
fails to comply with applicable regulations. 
"(6) REVOCATION BASED ON PERFORMANCE.—Designation as 
an exceptional guaranty agency may be revoked at any time 
by the Secretary upon 30 days notice and an opportunity for 
a hearing before the Secretary upon a finding by tiie Secretary 
that the guaranty agency has failed to maintain an acceptable 
overall level of regulatory compliance. 
"(e) SPECIAL RULE.—Reimbursements made by the Secretsiry on 
loans submitted for claim by an eligible lender or loan servicer 
designated for exceptional performance under this section shall 
not be subject to additional review by t^e Secretary or repurchase 
by the guaranty agency for any reason ot^er than a determination 
by the Secretary that tiie eligible lender, loan servicer, or guaranty 
agency engaged in 
fi*aud 
or ouier purposefiil misconduct in obtaining 
designation for exceptional performance. 
"(0 LIMITATION.—Nothing in this section shall be construed to 
affect the processing of claims on student loans of eligible lenders 
not subject to this paragraph. 
"(g) CLAIMS.—^A lender, servicer, or guaranty agency designated 
under subsection (a) failing to service loans or otherwise comply 
with applicable program regulations shall be considered in violation 
of the Federal False Claims Act. 
106 STAT. 540 
PUBLIC LAW 102-325—JULY 23, 1992 
"(h) EVALUATION.—Not later than 3 years after the date of enact-
ment of this Act, the Comptroller General shall submit to the 
Chairman of the Senate Labor and Human Resources Committee 
and the House Committee on Education and Labor, an evaluation 
of the provisions of this section including, but not hmited to, the 
following: 
"(1) The effectiveness of due diUgence performed by lenders 
and servicers receiving designation as exceptional lenders or 
servicers from the perspective of securing maximum collections 
from borrowers. 
"(2) A quantification of the dollar volume of claims that 
were paid to exceptional lenders and servicers that would not 
have been paid under applicable program provisions prior to 
the enactment of this section. 
"(3) An assessment of the impact of this section on the finan-
cial condition of guaranty agencies. 
"(4) An assessment of the savings to lenders, servicers, £ind 
guaranty agencies resulting from designation as exceptional 
performance. 
"(5) An identification of specific administration steps that 
lenders, servicers, and guaranty agencies do not have to perform 
as a result of designation as exceptional lenders, servicers, 
or guaranty agencies. 
"(6) A recommendation for program modifications applicable 
to all program participants based on the findings of the evalua-
tion. 
"(7) A recommendation for modifications to this section and 
whether the program should be continued, 
"(i) TERMINATION.—^After receipt of the study authorized in sub-
section (h), the Secretary may terminate such progreim if he deter-
mines such termination to be in the fiscal interest of the United 
States, 
"(j) DEFINITIONS.—For the purpose of this section— 
"(1) the term 'due diligence requirements' means the activities 
required to be performed by lenders on delinquent loans pursu-
ant to regulations issued by the Secretary; 
"(2) the term 'eligible loan' means a loan made, insured 
or guaranteed under part B of title IV; 
"(3) the term 'servicer' means an entity servicing £ind collect-
ing student loans which— 
"(A) has substantial experience in servicing and collecting 
consumer loans or student loans; 
"(B) has an independent financial audit annually which 
is furnished to the Secretary and any other parties des-
ignated by the Secretary; 
"(C) has business systems which are capable of meeting 
the requirements of part B of title IV; 
"(D) has adequate personnel who are knowledgeable 
about the student login programs authorized by part B 
of title rV; and 
"(E) does not have any owner, majority shareholder, 
director, or officer of the entity who has been convicted 
of a felony. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 541 
"LOAN FORGIVENESS FOR TEACHERS, INDIVIDUALS PERFORMING 
NATIONAL COMMUNITY SERVICE AND NURSES 
"SEC. 428J. (a) STATEMENT OF PURPOSE.—It is the purpose of 
20 use i078-io. 
this section to encourage individuals to— 
"(1) enter the teaching and nursing profession; and 
"(2) perform national and community service. 
"(b) DEMONSTRATION PROGRAM.— 
"(1) IN GENERAL.—The Secretary, in consultation with the 
Secretary of Health and Himian Services, is authorized to carry 
out a demonstration program of assuming the obUgation to 
repay a loan made, insured or guaranteed under this part 
(excluding loans made under sections 428A, 428B, or 428C) 
for any new borrower after October 1,1992, who— 
"(A) is employed as a full-time teacher— 
"(i) in a school which qualifies under 
section 
465(a)(2)(A) for loan cancellation for Perkins loan 
recipients who teach in such schools; and 
"(ii) of mathematics, science, foreign languages, spe-
cial education, bilingual education, or any other field 
of expertise where the State educational agency deter-
mines there is a shortage of qualified teachers; 
"(B) agrees in writing to volunteer for service under 
the Peace Corps Act or under the Domestic Volunteer Serv-
ice Act of 1973, or to perform comparable service as a 
fuU-time employee of an organization which is exempt from 
taxation imder section 501(c)(3) of the Internal Revenue 
Code of 1986, if the borrower does not receive compensation 
Arhich exceeds the greater of— 
"(i) the minimum wage rate described in section 
6 of the Fair Labor Standards Act of 1938; or 
"(ii) an amount equal to 100 percent of the poverty 
line for a family of two (as defined in section 673(2) 
of the Community Services Block Gr£int Act); or 
"(C) is employed full-time as a nurse in a public hospital, 
a rural health cUnic, a migrant health center, an Indian 
Health Service, an Indian health center, a Native Hawaiian 
health center or in an acute care or long-term care facility. 
"(2) REGULATIONS.—The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions 
of this section. 
"(c) LOAN REPAYMENT.— 
"(1) IN GENERAL.—^The Secretary shall assume the obligation 
to repay— 
"(A) 15 percent of the total amoimt of Stafford loans 
incurred by the student borrower during such borrower's 
last 2 years of imdergraduate education for the first or 
second academic year in which such borrower meets the 
requirements described in subsection (a); 
"(B) 20 percent of such total amount for such third or 
fourth academic year; and 
"(C) 30 percent of such total amount for such fifth aca-
demic year. 
"(2) CONSTRUCTION.—Nothing in this subsection shall be con-
strued to authorize the refunding of any repayment of a Stafford 
loan. 
106 STAT. 542 
PUBLIC LAW 102-325—JULY 23, 1992 
**(3) INTEREST.—If a portion of a loan is repaid by the Sec-
retary under this section for any year, the proportionate amount 
of interest on such loan which accrues for such year shall 
be repaid by the Secretary. 
"(4) SPECIAL RULE.—In the case where a student borrower 
who is not pgirticipating in loan repayment pursuant to this 
section returns to an institution of higher education after 
graduation from an institution of higher education for the pur-
pose of obtaining a teaching certificate, the Secretary is author-
ized to assume the obligation to repay the total amount of 
Stafford loans incurred for a maximum of 2 academic years 
in returning to an institution of higher education for the pur-
pose of obtaining a teaching certificate or additional cer-
tification. Such Stafford loans shall only be repaid for borrowers 
who qualify for loan repayment pursuant to the provisions 
of this section, and shall be repaid in accordance with the 
provisions of paragraph (1). 
"(d) REPAYMENT OF ELIGIBILITY LENDERS.—The Secretary shall 
pay to each eligible lender or holder for each fiscal year an amount 
equal to the aggregate amount of Stafford loans which are subject 
to repa5nnent pursuant to this section for such year. 
"(e) APPLICATION FOR REPAYMENT.—Each eligible individual desir-
ing loan repayment under this section shall submit an application 
to the Secretary at such time, in such manner, and containing 
such information as the Secretary may reasonably require. 
"(f) DEFINITIONS.—For the purpose of this section the term 
'ehgible lender' has the same me£ining given such term in section 
435(d). 
"(g) EVALUATION.— 
Contracts. 
"(1) IN GENERAL.—^The Secretary shall conduct, by grant or 
contract, an independent national evaluation of the impact 
of the program assisted under this part on the fields of teacMng, 
nursing, and commiuiity service. 
"(2) COMPETITIVE BASIS.—The grant or contract described 
in paragraph (1) shall be awarded on a competitive basis. 
"(3) CONTENTS.—^The evaluation described in this section 
shall— 
"(A) assess whether the program assisted under this 
section has brought into teaching, nursing, and community 
service a significant number of highly capable individuals 
who otherwise would not have entered sucn fields; 
"(B) assess whether a significant number of students 
perform the service described in subsection (b) or opt to 
repay the loans instead of remaining in the career for 
which such student received loan repa3nnent under this 
section; 
"(C) identify the barriers to the effectiveness of the pro-
gram assisted under this section; 
"(D) assess the cost-effectiveness of such program in 
improving teacher, nursing, and community service worker 
quaHty and quantity and the ways to improve the cost-
effectiveness of such program; 
"(E) identify the reasons for which participants in the 
program have chosen to take part in such program; and 
"(F) identify other areas of community service or employ-
ment which may serve as appropriate methods of loan 
repajmaent. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 543 
"(4) INTERIM EVALUATION REPORTS.—The Secretary shall pre-
pare and submit to the President and the Congress such interim 
reports on the evaluation described in this section as the Sec-
retary deems appropriate, and shall submit such a final report 
by January 1,1997. 
"(5) AUTHORIZATION OF APPROPRIATIONS.—^There are author-
ized to be appropriated to carry out this section $10,000,000 
for fisced year 1993 and such simis as may be necessary for 
each of the 4 succeeding fiscal years.". 
SEC. 423. DEFAULT RATES. 
Section 430 of the Act (20 U.S.C. 1080) is amended by adding 
at the end the following new subsection: 
"(e) DEFAULT RATE OF LENDERS, HOLDERS, AND GUARANTY AGEN-
CIES.— 
"(1) IN GENERAL.—The Secretary shall annually publish a 
list indicating the cohort default rate (determined in accordance 
with section 435(m)) for each originating lender, subsequent 
holder, £ind guaranty agency participating in the program 
assisted under this part and an average cohort default rate 
for all institutions of higher education within each State. 
"(2) REGULATIONS.—^The Secretanr shall prescribe regulations 
designed to prevent an institution from evading the application 
to that institution of a cohort default rate through the use 
of such measures as branching, consolidation, change of owner-
ship or control, or £uiy similar device. 
"(3) RATE ESTABLISHMENT AND CORRECTION.—The Secretary 
shall establish a cohort default rate for lenders, holders, and 
guaranty agencies (determined consistent with section 435(m)), 
except that the rate for lenders, holders, and guaranty agencies 
shall not reflect any loans issued in accordance with section 
428(j). The Secretary shall allow institutions, lenders, holders, 
and guaranty agencies the opportunity to correct such cohort 
default rate mformation. 
SEC 424. REPORTS TO CREDIT BUREAUS AND INSTITUTIONS OF 
HIGHER EDUCATION. 
Section 430A(f) of the Act (20 U.S.C. 1080a(f)) is amended— 
(1) by striking "or" at the end of paragraph (1); 
(2) by striking paragraph (2) and inserting the following: 
"(2) 7 years from the date the Secretary, guaranty agency, 
eligible lender, or subsequent holder first reported the accoimt 
to the consumer reporting agency; or 
"(3) in the case of a borrower who reenters repayment after 
defaulting on a loan and subsequently goes into default on 
such loan, 7 years from the date the loan entered default 
such subsequent time.". 
SEC. 425. ADMINISTRATIVE PROVISIONS. 
(a) AUTHORITY TO REGULATE SERVICERS.—Section 432(a)(1) of 
the Act (20 U.S.C. 1082) is amended by inserting before the semi-
colon the following: ", including regulations appHcable to third 
party servicers (including regulations concerning financial respon-
sibility standards for, and the assessment of liabilities for program 
violations against, such servicers) to establish minimum standards 
with respect to sound management and accoiintabihty of programs 
under this part, except that in no case shall damages be assessed 
106 STAT. 544 
PUBLIC LAW 102-325—JULY 23, 1992 
against the United States for the actions or inactions of such 
servicers". 
20 use 1082. 
(b) AGENCY PROCEDURE.—Section 432 of the Act is amended— 
(1) in subsection (a)(3), by striking "on the record"; 
(2) in subsection (g)(1), by striking "on the record"; 
(3) in subsection (h)(2)(A), by striking out "shall, in accord-
ance with sections 556 and 557 of title 5, United States Code," 
in the first sentence and inserting "shall"; and 
(4) in subsection (h)(3)(A), by striking out "shaU, in accord-
ance with sections 556 and 557 of title 5, United States Code," 
in the first sentence £uid inserting "shall". 
(c) CIVIL PENALTIES.—Section 432(g) of the Act is fiirther 
amended— 
(1) by amending paragraph (2) to read as follows: 
"(2) LIMITATIONS.—^No civil penalty may be imposed under 
paragraph (1) of this subsection unless the Secretary deter-
mines that— 
"(A) the 
violation, 
failure, 
or 
substantial 
mis-
representation referred to in that paragraph resulted fi*om 
a violation, failure, or misrepresentation that is material; 
and 
"(B) the lender or guaranty agency knew or should have 
known that its actions violated or failed to carry out the 
provisions of this part or the regulations thereunder."; 
(2) in paragraph (3), by striking "the institution of an action 
tmder that paragraph" and inserting "notification by the Sec-
retary under that paragraph"; and 
(3) in paragraph (4)— 
(A) by inserting ", and occurring prior to notification 
by the Secretary imder that paragraph," after "guaranty 
agency"; and 
(B) by striking "or both, and the" and inserting "or both. 
The". 
(d) LS&T AUTHORITY.—Section 432(h) of the Act is amended— 
(1) in paragraph (2)(A), by striking "The Secretary" and all 
that follows through "disqualification—" in the second sentence 
£ind inserting the following: "The Secretary shall uphold the 
imposition of such limitation, suspension, or termination in 
the student loan insurance progrsun of each of the guaranty 
agencies imder this part, and shall notify such guaranty agen-
cies of such sanction—"; 
(2) in paragraph (2)(B), by striking "disqualification" each 
place it appears and inserting "sanction"; and 
(3) by redesignating subparagraph (B) of paragraph (2) as 
subparagraph (C), and by inserting after subparagraph (A) 
the following new subparagraph: 
"(B) The Secretary's review under this paragraph of the lim-
itation, suspension, or termination imposed by a guaranty 
agency pursuant to section 428(b)(l)(U) shaHi be limited to— 
"(i) a review of the written record of the proceedings 
in which the guaranty agency imposed such sanctions; 
and 
"(ii) a determination as to whether the guaranty agency 
compUed with section 428(b)(l)(U) and £iny notice and hear-
ing requirements prescribed in regulations of the Secretary 
under this part."; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 545 
(4) in paragraph (3)(A), by striking out "The Secretary" and 
all that follows through "disqualification—" in the second sen- 
^ 
tence and inserting the following: "The Secretary shall uphold 
^ 
the imposition of such limitation, suspension, or termination 
in the student loan insurance program of each of the guaranty 
agencies under this part, and shall notify such guaranty agen-
cies of such sanctions—"; 
(5) in subsection (h)(3)(B), by striking "disqualification" each 
place such term appears and inserting "sanction"; and 
(6) by redesignating subparagraph (B) of subsection (h)(3) 
as subparagraph (C) of such subsection, and by inserting after 
subparagraph (A) the following new subparagraph: 
"(B) I t e Secretary's review imder this paragraph of the lim-
itation, suspension, or termination Imposed by a guaranty 
agency pursuant to section 428(b)(lXT) shall be limited to— 
"(i) a review of the written record of the proceedings 
in which the guaranty agency imposed such sanctions; 
and 
"(ii) a determination as to whether the guaranty agency 
compUed with section 428(b)(l)(T) and any notice and hear-
ing requirements prescribed in regulations of the Secretary 
under this part.". 
(e) ADDITIONAL LEGAL POWERS AJJD RESPONSIBILITIES.—Section 
432 of tiie Act is amended by adding at the end the following 20 use 1082. 
new subsections: 
"(k) PROGRAM OF ASSISTANCE FOR BORROWERS.— 
^ 
"(1) IN GENERAL.—^The Secretary shall undertake a program 
to encourage corporations and other private and public employ-
ers, including tiie Federal Grovemment, to assist borrowers 
in repaying loans received under this title, including providing 
employers with options for payroll deduction of loan payments 
and offering loan repayment matching provisions as part of 
employee benefit packages. 
"(2) PUBLICATION.—^^e Secretary shall publicize models for 
providing the repayment assistsince described in paragraph (1) 
and each year select entities that deserve recognition, through 
means devised by the Secretary, for the development of innova-
tive plsms for providing such assistance to employees. 
"(3) RECOMMENDATION.—Within 1 year after the date of 
enactment of the Higher Education Amendments of 1992, the 
Secretary shall recommend to the appropriate committees in 
the Senate and House of Representatives changes to statutes 
that could be made in order to fiirther encourage such efforts. 
"(1) UNIFORM ADMINISTRATIVE AND CLAIMS PROCEDURES.— 
"(1) IN GENERAL.—The Secretary shall, by regulation devel- Regulations, 
oped in consultation with guaranty agencies, lenders, institu-
tions of higher education, secondsiry markets, students, third 
party servicers and other organizations involved in providing 
loans under this part, prescribe standardized forms and proce-
dures regarding— 
"(A) origination of loans; 
"(B) electronic funds transfer; 
"(C) guaranty of loans; 
"(D) deferments; 
"(E) forbearance; 
"(F) servicing; 
"(G) claims ming; 
59-194 O—93 
19 : QL 3 (Pt. 1) 
106 STAT. 546 
PUBLIC LAW 102-325—JULY 23, 1992 
"(H) borrower status change; and 
"(I) cures. 
"(2) SPECIAL RULES.—(A) The forms and procedures described 
in paragraph (1) shall include all aspects of the loan process 
as such process involves eligible lenders and guaranty agencies 
and shall be designed to minimize administrative costs and 
burdens (other than the costs and burdens involved in the 
transition to new forms sind procedures) involved in exchanges 
of data to and from borrowers, schools, lenders, secondary mar-
kets, and the Department. 
"(B) Nothing in this paragraph shall be construed to Hmit 
the development of electronic forms and procedures. 
"(3) SIMPLIFICATION REQUIREMENTS.—Such regulations shall 
include— 
"(A) standardization of computer formats, forms design, 
and guaranty agency procedures relating to the origination, 
servicing, and collection of loans made under this part; 
"(B) authorization of alternate means of document reten-
tion, including the use of microfQm, microfiche, laser disc, 
compact disc, and other methods allowing the production 
of a facsimile of the original documents; 
"(C) authorization of the use of computer or similar elec-
tronic methods of maintaining records relating to the per-
formance of servicing, collection, and other regulatory 
requirements under this Act; and 
"(D) authorization and implementation of electronic data 
linkages for the exchange of information to and from lend-
ers, guarantors, institutions of higher education, third 
party servicers, and the Department of Education for stu-
dent status confirmation reports, claim filing, interest and 
special allowance billing, deferment processing, and all 
other administrative steps relating to loans made pursuant 
to this part where using electronic data linkage is feasible. 
"(4) ADDITIONAL RECOMMENDATIONS.—The Secretary shall 
review regulations prescribed pursuant to paragraph (1) and 
seek additional recommendations from guaranty agencies, lend-
ers, institutions of higher education, students, secondary mar-
kets, third party servicers and other organizations involved 
in providing loans under this part, not less frequently than 
annually, for additional methods of simplifying and standardiz-
ing the administration of the programs authorized by this peirt. 
"(m) COMMON FORMS AND FORMATS.— 
"(1) COMMON GUARANTEED STUDENT LOAN APPLICATION FORM 
AND PROMISSORY NOTE.— 
"(A) IN GENERAL.—^The Secretary, in cooperation with 
representatives of guaranty agencies, eligible lenders, and 
organizations involved in student financial assistance, shedl 
prescribe a common application form and promissory note 
to be used for applying for loans under part B of this 
titie. 
"(B) REQUIREMENTS.—The form prescribed by the Sec-
retary shall— 
"(i) use clear, concise, and simple language to facili-
tate understanding of loan terms and conditions by 
appHcants; 
(ii) be formatted to require the applicant to clearly 
indicate a choice of lender; and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 547 
'*(iii) permit, to the maximum extent practicable, 
application for any loan imder part B. 
"(C) APPROVAL OF FORM.—The Secretary shall approve 
a form for use not later than 360 days after the date 
of enactment of the Higher Education Amendments of 1992. 
"(D) SPECIAL RULE.—Nothing in this section shall be 
construed to Hmit the development of electronic forms and 
procedures. 
"(2) COMMON DEFERMENT FORM.—The Secretary, in coopera-
tion with representatives of guaranty agencies, institutions of 
higher education, and lenders involved in loans made imder 
pwrt B of this title, shall prescribe a common deferment report-
ing form to be used for the processing of deferments of loans 
made under this title. 
"(3) COMMON REPORTING FORMATS.—The Secretary shall pro- Regulations, 
mulgate standards including necessary rules, regulations 
(including the definitions of all relevant terms), and procedures 
so as to require all lenders and guaranty agencies to report 
information on all aspects of loans made under this part in 
uniform formats, so as to permit the direct comparison of data 
submitted by individual lenders, servicers, or guaranty agen-
cies, 
"(n) DEFAULT REDUCTION MANAGEMENT.— 
"(1) AUTHORIZATION.—^There are authorized to be appro-
priated $25,000,000 for fiscal year 1993 and each of the four 
succeeding fiscal years, for the Secretary to expend for default 
reduction management activities for the purposes of estabUsh-
ing a performance measure that will reduce defaults by 5 
percent relative to the prior fiscal year. Such funds shall be 
in addition to, and not in Ueu of, other appropriations made 
for such purposes. 
"(2) ALLOWABLE ACTIVITIES.—Allowable activities for which 
such funds shall be expended by the Secretary shall include 
the following: (A) program reviews; (B) audits; (C) debt manage-
ment programs; (D) training activities; and (E) such other man-
agement improvement activities approved by the Secretary. 
"(3) PLAN FOR USE REQUIRED.—The Secretary shall submit 
a plan, for inclusion in the materials accompanying the Presi-
dent's budget each fiscal year, detailing tJie expenditure of 
funds authorized by this section to accomplish the 5 percent 
reduction in defaults. At the conclusion of the fiscal year, the Reports. 
Secretary shall report the Secretary's findings and activities 
concerning the expenditure of funds and whether the perform-
ance measure was met. If the performance measure was not 
met, the Secretary shall report the following: 
"(A) why tjbe goal was not met, including an indication 
of any managerial deficiencies or of any legal obstacles; 
"(B) plans and a schedule for achieving the established 
performance goal; 
"(C) recommended legislative or regulatory changes nec-
essary to achieve the goal; and 
"(D) if the performance standard or goal is impractical 
or infeasible, why that is the case and what action is 
recommended, including whether the goal should be 
changed or the program cdtered or eliminated. 
This report shall be submitted to the Appropriations Commit-
tees of the House of Representatives and me Senate and to 
106 STAT. 548 
PUBLIC LAW 102-325—JULY 23, 1992 
the Committee on Education and Labor of the House of Rep-
resentatives and the Committee on Labor and Human 
Resources of the Senate, 
"(o) CONSEQUENCES OP GUARANTY AGENCY INSOLVENCY.—In the 
event that the Secretary has determined that a guaranty agency 
is unable to meet its insurance obUgations under this part, the 
holder of loans insured by the guaranty agency may submit insur-
ance claims directly to the Secretary and the Secretary shall pay 
to the holder the fall insurance obUgation of the guaranty agency, 
in accordance with insurance requirements no more stringent than 
those of the guarsinty agency. Such arrangements shall continue 
until the Secretary is satisfied that the insurance obUgations have 
been transferred to another gueirantor who can meet those obliga-
tions or a successor will assume the outsteinding insurance obliga-
tions. 
"(p) REPORTING REQUIREMENT.—All officers and directors, and 
those employees and paid consultants of eligible institutions, eligible 
lenders, guaranty agencies, loan servicing agencies, accrediting 
agencies or associations. State hcensing agencies or boards, State 
postsecondary reviewing entities designated under subpart 1 of 
part H, and entities acting as secondary markets (including the 
Student Loan Marketing Association), who are engaged in making 
decisions as to the administration of any program or funds imder 
this title or as to the eligibility of any entity or individual to 
participate xinder this title, shall report to the Secretary, in such 
manner £ind at such time as the Secretary shsill require, on any 
financial interest which such individu£il may hold in any other 
entity participating in any program assisted under this title.". 
SEC. 426. STUDENT LOAN INFORMATION BY EUGIBLE LENDERS. 
(a) 
REQUIRED DISCLOSURE BEFORE DISBURSEMENT.—Section 
433(a) of the Act (20 U.S.C. 1083) is amended— 
(1) by redesignating paragraphs (1) through (13) as para-
graphs (2) through (14), respectively; and 
(2) by inserting before paragraph (2) (as redesignated in 
subpgiragraph (A)) the following new paragraph: 
"(1) a statement prominently and clearly displayed and in 
bold print that the borrower is receiving a loan that must 
be repaid;". 
(b) REQUIRED DISCLOSURE BEFORE REPAYMENT.—Section 433(b) 
of the Act is amended— 
(1) in the matter preceding psiragraph (1), by striking the 
second sentence and inserting the following: "For any loan 
made, insured, or guaranteed iinder this part, other than a 
loan made imder section 428B or 428C, such disclosure required 
by this subsection shall be made not less than 60 days nor 
more than 240 days before the first pa3nnent on the loan 
is due from the borrower."; and 
(2) in paragraph (8), by inserting "except as provided in 
sul3section (e)," before "the projected". 
(c) SPECIAL RULES.—Section 433 of the Act is further amended 
by adding at the end the following new subsections: 
"(e) SPECIAL DISCLOSURE RULES ON SLS LOANS AND PLUS LOANS 
A
N
D UNSUBSIDIZED LOANS.—Loans made imder section 428A, 428B, 
and 428H shall not be subject to the disclosure of projected monthly 
payment amoimts required imder subsection (b)(8) if the lender, 
in Ueu of such disclosure, provides the borrower with sample projec-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 549 
tions of monthly repajonent amounts assimaing different levels of 
borrowing and interest accruals resulting from capitalization of 
interest while the borrower is in school. Such sample projections 
shall disclose the cost to the student of capitalizing— 
"(1) principal and interest; and 
"(2) interest only.". 
SEC. 427. DEFINITIONS FOR STUDENT LOAN INSURANCE PROGRAM. 
(a) ELIGIBLE INSTITUTION.—Section 435(a) of the Act (20 U.S.C. 
1085) is amended— 
(1) by striking paragraphs (1) and (2) and inserting the 
following: 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
term 'eligible institution' means an institution of lugher edu-
cation, as defined in section 481, except that, for the purposes 
of sections 427(a)(2)(C)(i) and 428(bXl)(MXi), an eUgible institu-
tion includes any institution that is within this definition with-
out regard to whether such institution is participating in any 
program under this title and includes any institution ineligible 
for participation in any progrsim under this part pursuant 
to paragraph (2) of this subsection."; 
(2) by redesignating paragraph (3) as paragraph (2); 
(3) in paragraph (2)(B) (as redesignated)— 
(A) in clause (i), by striking "and" at the end thereof; 
(B) in clause (ii), by striking "any succeeding fiscal year." 
and inserting "fiscal year 1993; £ind"; and 
(C) by inserting at the end the following new clause: 
"(iii) 25 percent for any succeeding fiscal year.". 
(b) REPEAL OP SEPARATE DEFINITION OF INSTITUTION OF HIGHER 
EDUCATION.— 
(1) AMENDMENT.—Subsection (b) of section 435 of the Act 
is repealed. 
(2) REFERENCE.—^With respect to reference in any other provi- 20 use 1085 
sion of law to the definition of institution of higher education ^^ote. 
contained in section 435(b) of the Act, such provision shall 
be deemed to refer to section 481(a) of the Act. 
(c) REPEAL OF DEFINITION OF VOCATIONAL SCHOOL.—Subsection 
(c) of section 435 of the Act is repealed. 
(d) ELIGIBLE LENDER.—Section 435(d) of the Act is amended— 
(1) in paragraph (1)(A)— 
(A) in the matter preceding clause (i), by striking "a 
trust company,"; and 
(B) in clause (ii)— 
(i) by inserting at the end of subclause (I) the fol-
lowing: "or a bank which is subject to examination 
and supervision by an agency of the United States, 
makes student loans as a trustee piirsuant to £in 
express trust, operated as a lender xmder this psirt 
prior to January 1, 1975, and which meets the require-
ments of this provision prior to the enactment of the 
Higher Education Amendments of 1992, or"; and 
(ii) by striking ", or (III)" and all that follows through 
"January 1,1981;" and inserting a semicolon; and 
(2) in paragraph (2)— 
(A) in subparagraph (C), by striking "institutions; and" 
and inserting "institution;"; 
106 STAT. 550 
PUBLIC LAW 102-325—JULY 23, 1992 
(B) by inserting "and" after the semicolon at the end 
of subparagraph (D); and 
(C) by inserting after subparagraph (D) the following 
new subparagraphs: 
"(E) shall not have a cohort default rate (as defined 
in section 435(m)) greater than 15 percent; and 
"(F) shall use the proceeds fi*om special allowance pay-
ments and interest payments from borrowers for need-
based grant programs, except for reasonable reimburse-
ment for direct administrative expenses;**. 
20 use 1085. 
(e) DUE DILIGENCE.—Section 435(f) of the Act is amended by 
inserting "servicing and** before "collection practices**. 
(f) REPEAL OF ADDITIONAL DEFINITIONS.—Section 435 of the Act 
is fiirther amended by striking subsections (g), (h), and (n). 
(g) DEFINITION OF COHORT DEFAULT RATE.—Section 435(m) of 
the Act is amended to read as follows: 
"(m) COHORT DEFAULT RATE.— 
"(1) IN GENERAL.—(A) Except as provided in paragraph (2), 
the term 'cohort default rate' means, for any fiscsu year in 
which 30 or more current and former students at the institution 
enter repa3mient on loans under section 428 or 428A received 
for attendance at the institution, the percentage of those current 
and former students who enter repayment on such loans 
received for attendance at that institution in that fiscal year 
who default before the end of the following fiscal year. 
"(B) In determining the number of students who default 
before the end of such fiscal year, the Secretary shall include 
only loans for which the Secretary or a guaranty agency has 
paid claims for insurance, and, in calculating the cohort default 
rate, exclude any loans which, due to improper servicing or 
collection, would result in an inaccurate or incomplete cal-
culation of the cohort default rate. 
"(C) For any 
fiscal 
year in which fewer than 30 of the institu-
tion's current and former students enter repajmaent, the term 
'cohort default rate* means the percentage of such current and 
former students who entered repajmient on such loans in any 
of the three most recent fiscal years, who defavdt before the 
end of the fiscal year immediately following the year in which 
they entered repajmient. 
"(2) SPECIAL RULES.—(A) In the case of a student who has 
attended and borrowed at more than one school, the student 
(£Lnd such student's subsequent repa3anent or default) is attrib-
uted to each school for attendance at which the student received 
a loan that entered repayment in the fiscal year. 
"(B) A loan on which a pa3rment is made by the school, 
such school's owner, agent, contractor, employee, or any other 
entitvr or individual amUated with such school, in order to 
avoid default by the borrower, is considered as in default for 
purposes of this subsection. 
"(C) Any loan which has been rehabilitated before the end 
of such following fiscal year is not considered as in default 
for the purposes of this subsection. 
"(D) For the purposes of this subsection, a loan made in 
accordance with section 428A shall not be considered to enter 
repa3nnent until after the borrower has ceased to be enrolled 
in a course of study leading to a degree or certificate at an 
eUgible institution on at least a half-time basis (as determined 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 551 
by the institution) and ceased to be in a period of forbearance 
based on such enrollment. Each eUgible lender of a loan made 
under section 428A shall provide the guaranty agency with 
the information necessary to determine when the loan entered 
repayment for purposes of this subsection, and the guaranty 
agency shall provide such information to the Secretary. 
"(3) REGULATIONS TO PREVENT EVASIONS.—The Secretary 
shall prescribe regulations designed to prevent an institution 
from evading the appUcation to that institution of a default 
rate determination under this subsection through the use of 
such measures as branching, consoUdation, change of ownership 
or control, or any similar device.". 
SEC. 428. REPAYMENTS BY SECRETARY. 
Section 437 of the Act (20 U.S.C. 1087) is amended to read 
as follows: 
"REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, DECEASED, 
OR DISABLED BORROWERS; TREATMENT OF BORROWERS ATTENDING 
CLOSED SCHOOLS OR FALSELY CERTIFIED AS ELIGIBLE TO BORROW 
"SEC. 437. (a) REPAYMENT IN FULL FOR DEATH AND DISABILITY.— 
If a student borrower who has received a loan described in subpara-
graph (A) or (B) of section 428(a)(1) dies or becomes permanently 
and totally disabled (as determined in accordance with regulations 
of the Secretary), then the Secretary shall discharge the borrower's 
liability on the loan by repaying the £unount owed on the loan. 
"(b) REPAYMENT OF AMOUNT SUBJECT TO BANKRUPTCY ACTION.— 
If the collection of a loan described in subparagraph (A) or (B) 
of section 428(a)(1) or sections 428A, 428B, 428C, or 428H is stayed 
in any action under title 11, United States Code, the Secretary 
shall repay the impaid beilance of principal and interest owed on 
the loan. 
"(c) DISCHARGE.— 
"(1) IN GENERAL.—If a student borrower who received, on 
or after January 1, 1986, a loan made, insured, or guaranteed 
under this part is unable to complete the program in which 
the borrower is enrolled due to the closure of the institution 
or if such student's eligibiUty to borrow imder this part was 
falsely certified by the ehgible institution, then the Secretary 
shall discharge the borrower's Uability on the loan (including 
interest and collection fees) by repajdng the amount owed on 
the loan and shall subsequently pursue any claim available 
to such borrower against uie institution and its affihates and 
principals or settle the loan obhgation pursuant to the financial 
responsibihty authority under subpart 3 of part H. 
"(2) ASSIGNMENT.—^A borrower whose loan has been dis-
charged pursuant to this subsection shall be deemed to have 
assigned to the United States the right to a loan refimd up 
to the amount discharged agsdnst the institution and its affili-
ates and principals. 
"(3) ELIGIBILITY FOR ADDITIONAL ASSISTANCE.—The period of 
a student's attendance at an institution at which the student 
was imable to complete a course of study due to the closing 
of the institution shall not be considered for purposes of cal-
culating the student's period of eligibiUty for additional assist-
ance under this title. 
106 STAT. 552 
PUBLIC LAW 102-325—JULY 23, 1992 
"(4) SPECIAL RULE.—^A borrower whose loan has been dis-
charged pursuant to this subsection shall not be precluded 
from receiving additional grants, loans, or work assistance 
under this title for which the borrower would be otherwise 
eligible (but for the default on such discharged loan). 
(5) REPORTING.—^The Secretary shall report to credit bureaus 
with respect to loans which have been discharged pursuant 
to this subsection. 
"(d) REPAYMENT OF LOANS TO PARENTS.—If a student on whose 
behalf a parent has received a loan described in section 428B 
dies, then the Secretary shall discharge the borrower's liabiUty 
on tne loan by repa5dng the amount owed on the loan.". 
SEC. 429. DEBT MANAGEMENT OPTIONS. 
Part B of title IV of the Act is amended by inserting after 
section 437 the following new section: 
"DEBT MANAGEMENT OPTIONS 
20 use 1087-0. 
"SEC. 437A. (a) PROGRAM AUTHORITY.—For the purpose of offering 
additional debt management options, the Secretary is authorized, 
to the extent of funds appropriated under subsection (d)— 
"(1) to acquire from eligible holders the notes of borrowers 
under this part (other than section 428B) who are considered 
to be at high risk of default and who submit a request to 
the Secretary for an alternative repayment option; 
"(2) to offer such borrowers one or more alternative repay-
ment options, which may include graduated or extended repay-
ment and which shall, subject to subsection (b)(2), include an 
income contingent repayment option established in accordance 
with subsection (b); and 
"(3) to enter into contracts or other agreements with private 
firms or other agencies of the Government as necessary to 
carry out the purposes of this section. 
"(b) INCOME CONTINGENT REPAYMENT OPTION.— 
"(1) REGULATIONS.—For the purposes of subsection (a)(2), 
the Secretary shall, by regulation, establish the terms and 
/ 
conditions for an income contingent repa3nnent option. Such 
regulations shall specify the schedules imder which income 
will be assessed for repajnnent of loans, shall permit the dis-
charge of the remaining obUgation on the loan not later than 
25 years after the commencement of income contingent repay-
ment, and may provide for the potential collection of eimounts 
in excess of the principal and interest owed on the original 
loan or loans. 
"(2) 
COLLECTION MECHANISM DETERMINATION REQUIRED.— 
Such regulations shall not be effective unless the Secretary 
publishes a finding that— 
"(A) the Secretary has, pursuant to subsection (a)(3), 
estabUshed a collection mechanism that will provide a high 
degree of certainty that collections will be made in accord-
ance with the repa5nnent option established under para-
graph (1); and 
"(B) the use of such repayment option and collection 
mechanism will result in an increase in the net amount 
the Government will collect. 
"(c) DETERMINATIONS OF HIGH RISK OF DEFAULT.—In making 
determinations under subsection (a)(1), the Secretary shall— 
PUBLIC LAW 102-325-nJULY 23, 1992 
106 STAT. 553 
"(1) consider the ratio of part B debt repayment to income; 
or 
"(2) establish, by regulation, such other indicators of high Regulations. 
risk as the Secretary considers appropriate 
"(d) LOAN LIMITATION.—^Not more than $200,000,000 may be used 
to acquire loans under this section in any fiscal year. 
"(e) AUTHORIZATION OP AppROPRiATiONS.^There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fisced year 1994 and for each of the 4 succeeding 
fiscal years.". 
SEC. 430. SPECIAL ALLOWANCES. 
(a) 
SPECIAL ALLOWANCE.—Section 438(b)(2) of the Act is 20usci087-i. 
amended— 
(1) in subparagraph (AXiii), by striking "3.25" and inserting 
"3.10"; 
(2) by adding at the end of subparagraph (A) the following 
new sentence: "If such computation produces a number less 
than zero, such loans shall be subject to section 427A(e)."; 
(3) in subparagraph (BXi), by striking "3.25" and inserting 
"3.10"; and 
(4) by striking division (ii) of subparagraph (B) and inserting 
the following: 
"(ii) The quarterly rate of the special allowance set under 
division (i) of this subparagraph shall not be less than 9.5 
percent minus the applicable interest rate on such loans, 
divided by 4."; 
(5) in subparagraph (C)— 
(A) by inserting "before October 1, 1992," after "made"; 
(B) by inserting "(i)" before "In"; and 
(C) by adding at the end the following new clause: 
"(ii) In the case of loans disbursed on or after October 1, 
1992, pursuant to section 428A or 428B for which the interest 
rate is determined under section 427A(c)(4), a special allowance 
shall not be paid unless the rate determined for any 12-month 
period under section 427A(c)(4)(B) exceeds— 
"(I) 11 percent in the case of a loan under section 428A; 
or 
"(II) 10 percent in the case of a loan under section 428B."; 
(6) in subparagraph (D)(i), by striking "3.25" and inserting 
"3.10". 
(b) SPECIAL ALLOWANCE PERMITTED ON UNSUBSIDIZED LOANS.— 
Section 438(b)(5)(A)(ii) of the Act is amended by inserting "428H," 
after "428C,". 
(c) SPECIAL RULE.—Section 438(b)(5) is amended by adding at 
the end thereof the following flush sentence: 
"As used in this section, the term 'eligible loan' includes all loans 
subject to section 4281.". 
(d) ORIGINATION FEES.—Section 438(c) is amended— 
(1) in paragraph (2), by striking "With" and inserting "Subject 
to paragraph (6) of this subsection, with"; and 
(2) by adding at the end the following new paragraphs: 
"(6) SLS AND PLUS LOANS.—With respect to any loans made 
under section 428A or 428B on or after October 1, 1992, each 
eUgible lender imder this part shall charge the borrower an 
origination fee of 5 percent of the principal amount of the 
loan, to be deducted proportionately from each installment pay-
106 STAT. 554 
PUBLIC LAW 102-325—JULY 23, 1992 
ment of the proceeds of the loan prior to payments to the 
borrower. 
; s 
"(7) DISTRIBUTION OF ORIGINATION PEES.—All origination fees 
collected pursuant to this section on loans authorized under 
section 428A or 428B shall be paid to the Secretary by the 
lender and deposited in the fund authorized under section 
431 of this part.". 
20 use 1087-1. 
(e) DISCOUNTING.—Section 438(d)(2)(C) of the Act is amended 
by striking "or discount". 
SEC. 431. STUDENT LOAN MARKETING ASSOCIATION. 
(a) BOARD OF DIRECTORS.—Subsection (c) of section 439 of the 
Act (20 U.S.C. 1087-2(c)) is amended to read as follows: 
"(c) BOARD OF DIRECTORS.— 
President. 
"(1) COMPOSITION OF BOARD; CHAIRMAN.—(A) The Association 
shall have a Board of Directors which shall consist of 21 per-
sons, 7 of whom shall be appointed by the President and shall 
be representative of the general public. The remaining 14 direc-
tors shall be elected by the common stockholders of the Associa-
tion entitled to vote pursuant to subsection (f). Commencing 
with the annual shareholders meeting to be held in 1993— 
"(i) 7 of the elected directors shall be affiUated with 
an eligible institution; and 
"(ii) 7 of the elected directors shall be af&liated with 
an eligible lender. 
President. 
"(B) The President shall designate 1 of the directors to serve 
as Chairman. 
"(2) TERMS OF APPOINTED AND ELECTED MEMBERS.—The direc-
tors appointed by the President shall serve at the pleasure 
of the Resident and imtil their successors have been appointed 
and have qusdified. The remaining directors shall each be 
elected for a term ending on the date of the next annual 
meeting of the common stockholders of the Association, and 
shall serve until their successors have been elected and have 
qualified. Any appointive seat on the Board which becomes 
vacant shall be ^led by appointment of the President. Any 
elective seat on the Board which becomes vacant after the 
annual election of the directors shall be filled by the Board, 
but only for the unexpired portion of the term. 
"(3) AFFILIATED MEMBERS.—For the purpose of this sub-
section, the references to a director 'affiliated with the eligible 
institution' or a director 'af&liated with an eUgible lender' 
means an individual who is, or within 5 years of election 
to the Boeird has been, an employee, officer, director, or similar 
official o
f
— 
"(A) an eUgible institution or an eUgible lender; 
"(B) an association whose members consist primarily of 
eUgible institutions or eligible lenders; or 
"(C) a State agency, authority, instrumentaUty, commis-
sion, or similar institution, the primary purpose of which 
relates to educational matters or banking matters. 
"(4) MEETINGS AND FUNCTIONS OF THE BOARD.—The Board 
of Directors shall meet at the call of its Chairman, but at 
least semiannually. The Board shall determine the general 
poUcies which shall govern the operations of the Association. 
The Chairman of the Board shml, with the approval of the 
Board, select, appoint, and compensate qualified persons to 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 555 
fill the offices as may be provided for in the bylaws, with 
such functions, powers, and duties as may be prescribed by 
the bylaws or by the Board of Directors, and such persons 
shall be the officers of the Association and shall discharge 
all such functions, powers, and duties.". 
(b) AUTHORITY OF ASSOCIATION.—Subparagraph (C) of section 
439(d)(1) of the Act is amended to read as follows: 
20 use 1087-2. 
"(C) to buy, sell, hold, insure, underwrite, and otherwise 
deal in obUgations issued for the purpose of financing or 
refinancing the construction, reconstruction, renovation, 
improvement, or purchase at institutions of higher edu-
cation of any of the following facilities (including me under-
Ijdng property) and materials at an ehgible institution of 
higher education: 
"(i) educational and training faciUties; 
"(ii) housing for students and facilities; 
"(iii) Hbrary facilities, including the acquisition of 
library materials at institutions of higher education; 
and 
"(iv) related equipment, instrumentation, and fiir-
nishings for facilities and materials described in clause 
(i) or (iii); 
except that not more than 15 percent of the value of trans-
actions entered into under this subparagraph shall involve 
transactions of the type described in clause (ii);". 
(c) RESTRICTIONS ON ACTIVITIES.—Section 439(d)(5) of the Act 
is amended by striking "third highest rating" and inserting "second 
highest rating". 
(d) STOCK OF ASSOCIATION.—Subsection (f) of section 439 of the 
Act is amended to read as follows: 
"(f) STOCK OF THE ASSOCIATION.— 
"(1) VOTING COMMON STOCK.—The Association shall have vot-
ing common stock having such par value as may be fixed 
by its Board of Directors fi*om time to time. Each share of 
voting common stock shall be entitled to one vote with rights 
of cumulative voting at all elections of directors. 
"(2) NUMBER OF SHARES; TRANSFERABILITY.—The maximum 
niunber of shares of voting common stock that the Association 
may issue and have outstanding at any one time shall be 
fixed by the Board of Directors 
fi*om 
time to time. Any voting 
common stock issued shall be fully transferable, except that, 
as to the Association, it shall be transferred only on the books 
of the Association. 
"(3) DIVIDENDS.—^To the extent that net income is earned 
and reahzed, subject to subsection (g)(2), dividends may be 
declared on voting common stock by the Board of Directors. 
Such dividends as may be declared by the Board of Directors 
shall be paid to the holders of outstanding shares of voting 
common stock, except that no such dividends shall be payable 
with respect to any share which has been called for redemption 
past the effective date of such call. 
"(4) SINGLE CLASS OF VOTING COMMON STOCK.—As of the 
effective date of the EUgher Education Amendments of 1992, 
all of the previously aumorized shares of voting common stock 
and nonvoting common stock of the Association shall be con-
verted to shares of a single class of voting common stock on 
a share-for-share basis, without any fiirther action on the part 
106 STAT. 556 
PUBLIC LAW 102-325—JULY 23, 1992 
of the Association or any holder. Each outstanding certificate 
for voting or nonvoting common stock shall evidence ownership 
of the same number of shares of voting stock into which it 
is converted. All preexisting rights and obligations with respect 
to any class of common stock of the Association shall be deemed 
to be rights and obUgations with respect to such converted 
shares.". 
(e) SAFETY AND SOUNDNESS OF ASSOCIATION.—Section 439 of the 
20 use 1087-2. 
Act is amended by adding at the end the following new subsection: 
"(r) SAFETY AND SOUNDNESS OF ASSOCIATION.— 
"(1) REPORTS BY THE ASSOCIATION.—The Association shall 
promptly furnish to the Secretary of Education and Secretary 
of the Treasury copies of all— 
"(A) periodic financi£il reports publicly distributed by the 
Association; and 
"(B) reports concerning the Association that are received 
by the Association and prepared by nationally recognized 
statistical rating organizations. 
"(2) AUDIT BY SECRETARY OF THE TREASURY.—(A) The Sec-
retary of the Treasury may— 
"(i) appoint auditors to conduct audits of the Association 
from time to time to determine the condition of the Associa-
tion for the purpose of assessing its financial safety and 
soundness; and 
"(ii) enter into contracts to obtain the services of such 
technical experts as the Secretary of the Treasury deter-
mines necessary and appropriate to provide technical 
assistance to any auditor appointed under this paragraph. 
"(B) Each auditor appointed under this paragraph shall con-
duct an audit of the Association to the extent requested by 
the Secretary of the Treasury and shall prepare and submit 
a report to the Secretary of the Treasury concerning the results 
of such audit. A copy of such report shall be furnished to 
the Association and the Secretsiry of Education on the date 
on which it is delivered to the Secretary of the Treasury. 
"(C) The Association shgdl provide full and prompt access 
to the Secretary of the Treasury to its books and records and 
other information requested by the Secretary of the Treasury. 
"(3) MONITORING OF SAFETY AND SOUNDNESS.—The Secretary 
of the Treasury shall conduct such studies as may be necessary 
to monitor the financial safety and soundness of the Association. 
In the event that the Secretary of the Treasury determines 
that the financial safety and soiuidness of the Association is 
at risk, the Secretary of the Treasury shall inform the Chair-
man and remking minority member of the Committee on Labor 
and Human Resources of the Senate, the Chairman and ranking 
minority member of the Committee on Education and Labor 
of the House of Representatives, and the Secretary of Education 
of such determination and identify any corrective actions that 
should be taken to ensure the safety and soundness of the 
Association. 
"(4) CAPITAL STANDARD.—If the capital ratio is less than 
2 percent and is greater than or equal to 1.75 percent at 
the end of the Association's most recent calendar quarter the 
Association shall, within 60 days of such occurrence, submit 
to the Secretary of the Treasury a capital restoration plan, 
in reasonable detail, that the Association believes is adequate 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 557 
to cause the capital ratio to equal or exceed 2 percent within 
36 months. 
"(5) CAPITAL RESTORATION PLAN.— 
"(A) SUBMISSION, APPROVAL, AND IMPLEMENTATION.—The 
Secretary of the Treasury and the Association shall consult 
with respect to any capital restoration plan submitted pm*-
suant to paragraph (4) and the Secretary of the Treasury 
shall approve such plan (or a modification thereof accepted 
by the Association) or disapprove such plan within 30 days 
grfter such plan is first submitted to the Secretary of the 
Treasury by the Association, tmless the Association and 
Secretary of the Treasury mutually agree to a longer con-
sideration period. If the Secretary of the Treasury approves 
a capital restoration plan (including a modification of a 
plan accepted by the Association), the Association shall 
forthwith proceed with dihgence to implement such plan 
to the best of its abiUty. 
"(B) DISAPPROVAL.—If the Secretary of the Treasury does 
not approve a capital restoration plan as provided in sub-
paragraph (A), then not later than the earlier of the date 
the Secretary of the Treasury disapproves of such plan 
by written notice to the Association or the expiration of 
the 30-day consideration period referred to in subparagraph 
(A) (as such period may have been extended by mutual 
agreement), the Secretary of the Treasiiry shall submit 
the Association's capital restoration plan, in the form most 
recently proposed to the Secretary of the Treasury by the 
Association, together with a report on the Secretary of 
the Treasury's reasons for disapproval of such plan and 
an alternative capital restoration plan, to the Chairman 
and ranking minority member of the Senate Committee 
on Labor and Human Resources and to the Chairman 
and rsuiking minority member of the House Committee 
on Education and Labor. A copy of such submission 
simultaneously shall be sent to the Association and the 
Secretary of Education by the Secretary of the Treasury. 
"(C) 
ASSOCIATION IMPLEMENTATION AND RESPONSE.— 
Upon receipt of the submission by the Association, the 
Association shall forthwith proceed with diligence to imple-
ment the most recently proposed capital restoration plan 
of the Association. The Association, within 30 days after 
receipt from the Secretary of the Treasury of such submis-
sion, shall submit to such Chairmen and ranking minority 
members a written response to such submission, setting 
out fully the nature and extent of the Association's agree-
ment or the disagreement with the Secretary of the Treas-
ury with respect to the capital restoration plan submitted 
to the Secretary of the Treasury and any findings of the 
Secretary of the Treasury. 
"(6) SUBSTANTIAL CAPITAL RATIO REDUCTION.— 
"(A) ADDITIONAL PLAN REQUIRED.—If the capital ratio 
is less than 1,75 percent and is greater than or equal 
to 1 percent at the end of the Association's most recent 
calendar quarter, the Association shall submit to the Sec-
retary of the Treasury within 60 days after such occurrence 
a capital restoration plan (or an appropriate modification 
of any plan previously submitted or approved imder para-
106 STAT. 558 
PUBLIC LAW 102-325—JULY 23, 1992 
graph (4)) to increase promptly its capital ratio to equal 
or exceed 1.75 percent. The Secretary of the Treasury and 
the Association shall consult with respect to any plan or 
modified plan submitted pursuant to this paragraph. The 
Secretary of the Treasury shall approve such plan or modi-
fied plan (or a modification thereof accepted by the Associa-
tion) or disapprove such plan or mod^ed plan within 30 
days after such plan or modified plan is first submitted 
to the Secretary of the Treasury by the Association, unless 
the Association and Secretary of the Treasury mutually 
agree to a longer consideration period. If the Secretary 
of the Treasury approves a plan or modified plan (including 
a modification of a plan accepted by the Association), the 
Association shsdl forthwith proceed with diUgence to imple-
ment such plan or modified plan to the best of the Associa-
tion's ability. 
"(B) DISAPPROVAL.—If the Secretary of the Treasury dis-
approves a capital restoration plan or modified plan submit-
ted pursuant to subparagraph (A), then, not later than 
the earlier of the date the Secretary of the Treasury dis-
approves of such plan or mod^ed plan (by written notice 
to the Association) or the expiration of the 30-day consider-
ation period described in subparagraph (A) (as such period 
may have been extended by mutual agreement), the Sec-
retary of the Treasury shall prepare and submit an alter-
native capital restoration plan, together with a report on 
his reasons for disapproval of the Association's plan or 
modified plan, to the Chairman and ranking minority mem-
ber of the Committee on Labor and Human Resources 
of the Senate and to the Chairman and ranking minority 
member of the Committee on Education and Labor of the 
House of Representatives. A copy of such submission 
simultaneously shall be sent to the Association and the 
Secretary of Education by the Secretsiry of the Treasury. 
The Association, within 5 days after receipt firom the Sec-
retary of tiie Treasury of such submission, shall submit 
to the Chairmen and ranking minority members of such 
Committees, and the Secretary of the Treasury, a written 
response to such submission, setting out fully the nature 
£ind extent of the Association's agreement or disagreement 
with the Secretary of the Treasury with respect to the 
disapproved plan and the edtemative plan of the Secretary 
of the Treasury and any findings of the Secretary of the 
Treasury. 
"(C) REVIEW BY CONGRESS; ASSOCIATION IMPLEMENTA-
TION.—Congress shall have 60 legislative da3rs after the 
date on which Congress receives the alternative plan under 
subparagraph (B) fi*om the Secretary of the Treasury to 
review such plan. If Congress does not take statutory action 
with respect to any such plan within such 60-day period, 
the Association shall immediately proceed with diligence 
to implement the alternative capitied restoration plan of 
the Secretary of the Treasury under subparagraph (B). 
If Congress is out of session when any such alternative 
plan is received, such 60-day period shcQl begin on the 
first day of the next session of Congress. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 559 
"(7) ACTIONS BY SECRETARY OF THE TREASURY.—If the capital 
ratio of the Association does not equal or exceed 1.75 percent 
at the end of the Association's most recent calendar quarter, 
the Secretary of the Treasury may, until the capital ratio equals 
or exceeds 1.75 percent, take any one or more of the following 
actions: 
"(A) LIMIT INCREASE IN LIABILITIES.—Limit any increase 
in, or order the reduction of, any liabilities of the Associa-
tion, except as necessary to fund student loan purchases 
and warehousing advances. 
"(B) RESTRICT GROWTH.—Restrict or eliminate growth of 
the Association's assets, other than student loans purchases 
and warehousing advances. 
"(C) RESTRICT DISTRIBUTIONS.—Restrict the Association 
from making any capited distribution. 
"(D) REQUIRE ISSUANCE OF NEW CAPITAL.—^Require the 
Association to issue new capital in any form and in any 
amount sufficient to restore at least a 1.75 percent capital 
ratio. 
"(E) 
LIMIT EXECUTIVE COMPENSATION.—Prohibit 
the 
Association from increasing for any executive officer any 
compensation including bonuses at a rate exceeding that 
officer's average rate of compensation during the previous 
12 calendar months and prohibiting the Board from adopt-
ing any new employment severance contracts. 
"(8) CRITICAL CAPITAL STANDARD.—(A) If the capital ratio 
is less than 1 percent at the end of the Association's most 
recent calendar quarter and the Association has already submit-
ted a capital restoration plan to the Secretary of the Treasury 
pursuant to paragraph (4) or (6)(A), the Association shall forth-
with proceed with diligence to implement the most recently 
proposed plan with such modifications as the Secretary of the 
Treasury determines are necessary to cause the capital ratio 
to equal or exceed 2 percent within 60 months. 
"(B) If the capitsu ratio is less than 1 percent at the end 
of the Association's most recent calendar quarter and the 
Association has not submitted a capital restoration plan to 
the Secretary of the Treasury pursuant to paragraph (4) or 
(6)(A), the Association shall— 
"(i) within 14 days of such occurrence submit a capital 
restoration plan to the Secretary of the Treasury which 
the Association believes is adequate to cause the capital 
ratio to equal or exceed 2 percent within 60 months; and 
"(ii) forthwith proceed with diligence to implement such 
plan with such modifications as the Secretary of the Treas-
ury determines are necessary to cause the capital ratio 
to equal or exceed 2 percent within 60 months. 
"(C) Immediately upon a determination imder subparagraph 
(A) or (B) to implement a capital restoration plan, the Secretary 
of the TVeasuiy shall submit the capital restoration plan to 
be implemented to the Chairman and ranking minority member 
of the Committee on Labor and Human Resources of the Senate, 
the Chairman and ranking minority member of the Committee 
on Education and Labor of the House of Representatives, and 
the Secretary of Education. 
"(9) ADDITIONAL REPORTS TO COMMITTEES.—The Association 
shall submit a copy of its capital restoration plan, modifications 
106 STAT. 560 
PUBLIC LAW 102-325—JULY 23, 1992 
proposed to the Secretary of the Treasury, and proposed modi-
fications received from the Secretciry oi the Treasury to the 
Congressional Budget Office and Gfeneral Accounting Office 
upon their submission to the Secretary of the Treasury or 
receipt from the Secretary of the Treasury. Notwithstanding 
any other provision of law, the Congressional Budget Office 
and General Accounting Office shall maintain the con-
fidentiality of information received pursuant to the previous 
sentence. In the event that the Secretary of the Treasury does 
not approve a capital restoration plan as provided in paragraph 
(5)(A) or (6)(A), or in the event that a capital restoration plan 
is modified by the Secretary of the Treasury pursuant to para-
graph (6)(B) or (8), the Congressional Budget Office and General 
Accounting Office shall each submit a report within 30 days 
of the Secretary of the Treasur/s submission to the Chairmen 
and ranking minority members as required in paragraphs 
(5)(B), (6)(B), and (8)(C) to such Chairmen and ranking 
members— 
"(A) analyzing the financial condition of the Association; 
"(B) anedyzing the capital restoration plan and reasons 
for disapproval of the plan contained in the Secretary of 
the Treasurer's submission made pursuant to paragraph 
(5)(B), or the capital restoration plan proposed by the 
Association and the modifications made by the Secretary 
of the Treasury pursuant to paragraph (6)(B) or (8); 
"(C) analyzing the impact of the capital restoration plan 
and reasons for disapproval of the plan contained in the 
Secretary of the Treasury's submission made pursuant to 
paragraph (5)(B), or the impact of the capital restoration 
plan proposed by the Association and the modifications 
made by the Secretary of the Treasury pursuant to para-
graph (6)(B) or (8), and analyzing the impact of the rec-
ommendations made pursuant to subparagraph (D) of this 
paragraph, on— 
"(i) the ability of the Association to fulfill its purpose 
and authorized activities as provided in this section, 
and 
"(ii) the operation of the student loan programs; and 
"(D) recommending steps which the Association should 
take to increase its capital ratio without impairing its 
ability to perform its purpose and authorized activities 
as provided in this section. 
"(10) REVIEW BY SECRETARY OF EDUCATION.—The Secretary 
of Education shall review the Secretary of the Treasures sub-
mission required pursuant to peiragraph (5)(B), (6)(B), or (8) 
and shall submit a report within 30 days to the Chairman 
£ind ranking minority member of the Senate Committee on 
Labor and Human Resources and to the Chairman and ranking 
minority member of the House Committee on Education and 
Labor— 
"(A) describing any administrative or legislative provi-
sions governing the student loan programs which contrib-
uted to the decline in the Association's capital ratio; and 
"(B) recommending 
administi-ative 
and 
legislative 
changes in the student loan programs to maintain the 
orderly operation of such programs and to enable the 
Association to fulfill its purpose and authorized activities 
PUBLIC LAW 102-325-JULY 23, 1992 
106 STAT. 561 
consistent with the capital ratio specified in paragraph 
(4). 
"(11) SAFE HARBOR.—The Association shall be deemed in 
compUance with the capital ratios described in paragraphs (4) 
and (6)(A) if the Association is rated in 1 of the 2 highest 
full rating categories (such categories to be determined without 
regard to designations within categories) by 2 nationally rec-
ognized statistical rating organizations, determined without 
regard to the Association s status as a federally chartered cor-
poration. 
"(12) TREATME^^^ OF CONFIDENTIAL INFORMATION.—Not-
withstanding any other provision of law, the Secretary of the 
Treasury, the Secretary of Education, the Congressional Budget 
Office, and the General Accounting Office shall not disclose 
any information treated as confidential by the Association and 
obtained pursuant to this subsection. Nothing in this paragraph 
shall authorize the Secretary of the Treasury, the Secretary 
of Education, the Congressional Budget Office, and the General 
Accounting Office to withhold information from Congress, or 
prevent the Secretary of Education, the Congressional Budget 
Office, and the General Accounting Office from complsdng with 
a request for information from any other Federal department 
or agency requesting the information for purposes within the 
scope of its jurisdiction, or compljdng with an order of a court 
of the United States in an action brought by the United States. 
For purposes of section 522 of title 5, United States Code, 
this paragraph shall be considered a statute described in sub-
section (b)(3) of such section 552. 
"(13) DEFINITIONS.—As used in this subsection: 
"(A) The term 'nationally recognized statistical rating 
organization' means any entity recognized as such by the 
Securities and Exchange Commission. 
"(B) The term 'capital ratio' means the ratio of total 
stockholders' equity, as shown on the Association's most 
recent quarterly consolidated balance sheet prepared in 
the ordinary course of its business, to the sum o
f
— 
"(i) the total assets of the Association, as shown 
on the balance sheet prepared in the ordinary course 
of its business; and 
"(ii) 50 percent of the credit equivalent amount of 
the following off-balance sheet items of the Association 
as of the date of such balance sheet— 
"(I) all financial standby letters of credit and 
other irrevocable guarantees of the repayment of 
financial obligations of others; and 
"(II) all interest rate contracts and exchange 
rate contracts, including interest exchange agree-
ments, floor, cap, and collar agreements and simi-
lar arrangements. 
For purposes of this subparagraph, the calculation of the 
credit equivalent amoxmt of me items set forth in clause 
(ii) of this subparagraph, the netting of such items and 
eUminations for the purpose of avoidance of double-counting 
of such items shall be made iji accordance with the meas-
ures for computing credit conversion factors for off-balance 
sheet items for capital maintenance purposes established 
for commercial banks from time to time by the Federal 
106 STAT. 562 
PUBLIC LAW 102-325—JULY 23, 1992 
Reserve Board, but without regard to any risk weighting 
provisions in such measures. 
"(C) The term legislative days' means only days on which 
either House of Congress is in session.''. 
20 use 1078 
SEC. 432. EFFECTIVE DATES FOR AMENDMENTS TO PART B. 
(a) IN GENERAL.—^The changes made in part B of title IV of 
the Act by the amendments made by this part shall take effect 
on the date of enactment of this Act, except— 
(1) as otherwise provided in such part B; 
(2) that the changes made in sections 425(a), 428(b)(1)(A), 
428(b)(lXB), 428A(b), 428B(b), relating to annual and aggregate 
loan limits, shall apply with respect to loans for which the 
first disbursement is made on or after July 1, 1993, except 
that— 
(A) the changes made in section 425(a)(l)(A)(i) and 
428(b)(l)(A)(i) shall apply with respect to loans for which 
the first disbursement is made on or after October 1, 1992; 
and 
(B) the changes made in section 425(a)(l)(A)(iv) and 
428(b)(l)(A)(iv) shall apply with respect to loans to cover 
the costs of instruction for periods of enrollment beginning 
on or after October 1,1993; 
(3) that the changes made in sections 427(a)(2)(C) and 
428(b)(l)(M), relating to deferments, sh^l apply with respect 
to loans for which the first disbursement is made on or after 
July 1, 1993, to an individual who is a new borrower on the 
date such individual applies for a loan; 
(4) that the changes made in sections 428(a)(7) and 
428(f)(1)(C), relating to payments for unconsummated loans, 
shall apply with respect to loans made on or after October 
1,1992; 
(5) that the changes made in sections 427(a)(2)(H) and 
428(b)(l)(E)(i), relating to offering graduated or income sen-
sitive repayment options, shall apply with respect to loans 
for which the first disbursement is made on or eifter July 
1, 1993, to an individual who is a new borrower on the date 
such individual applies for a loan; 
(6) that the changes made in section 428(b)(4), relating to 
teacher deferment, shall apply with respect to loans for which 
the first disbursement is made on or after July 1, 1993, to 
an individual who is a new borrower on the date such individual 
applies for a loan; 
(7) that section 428(c)(2)(H)(i) as added by such amendments 
shall be effective on and after October 1,1992; 
(8) that the changes in section 428(c)(3) with respect to for-
beEirance after a de^ult shall be effective on and after October 
1,1992; 
(9) that the changes made in section 428B(a) with respect 
to use of credit histories shall apply with respect to loans 
for which the first disbursement is made on or after July 
1,1993; 
(10) that section 428B(c) as added by such amendments, 
relating to disbursement of Federal PLUS Loans, shall apply 
with respect to loans for which the first disbursement is made 
on or sifter October 1,1992; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 563 
(11) that the changes made in section 428C, relating to con-
solidation loans, shall apply with respect to loans under such 
section for which the appUcation is received by an eligible 
lender on or after Januaxy 1,1993; 
(12) that section 428H as added by such amendments shall 
be effective with respect to loans made to cover the cost of 
instruction for periods of enrollment beginning on or after Octo-
ber 1,1992; 
(13) that the changes made in section 438 shall apply with 
respect to loans for which the first disbursement is made on 
or after October 1,1992; 
(14) that the changes in section 439(dXl), relating to facilities 
loans, s h ^ apply with respect to apphcations received on or 
after July 1,1992; and 
^ 
(15) that the changes in the designation or names of loans 
or programs under part B is effective with respect to applica-
tions or other documents (used in making such loans) that 
are printed after the date of enactment of this Act. 
(b) NEW BORROWERS.—For purposes of the section, the term 
"new borrower" means, with respect to any date, an individual 
who on that date has no outstanding balance of principal or interest 
owing on any loan made, insured, or guaranteed under part B 
oftitlelVoftiieAct. 
PART 
C—FEDERAL 
WORK-STUDY 
PROGRAMS 
SEC. 441. DESIGNATION, PURPOSE, AND APPROPRIATIONS. 
(a) PROGRAM TITLE.— 
(1) AMENDMENT.—The heading of part C of title IV of the 
Ad; is amended to read as follows: 
"PART 0—FEDERAL WORK-STUDY PROGRAMS". 
(2) CONFORMING AMENDMENT.—The heading of section 443 42 use 2753. 
is amended by inserting "FEDERAL" before "WORK-STUDY". 
(b) PURPOSE.—Section 441(a) of the Act is amended by inserting 42 USC 2751. 
", and to encourage students receiving Federal student financial 
assistance to participate in community service activities that will 
benefit the Nation and engender in the students a sense of social 
responsibility and commitment to the communitjr" before the period 
at the end thereof. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 441(b) of the 
Act is amended to read as follows: 
"(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this part, $800,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years.". 
(d) DEFINITION OF COMMUNITY SERVICE.—Section 441 of the 
Act 
is amended by adding at the end the following new subsection: 
"(c) COMMUNITY SERVICES.—For purposes of this part, the term 
'community services' means services which are identified by an 
institution of higher education, through formal or informal con-
sultation with local nonprofit, governmental, and community-based 
organizations, as designed to improve the quality of life for commu-
nity residents, particularly low-mcome individuals, or to solve par-
ticular problems related to their needs, including— 
106 STAT. 564 
PUBLIC LAW 102-325—JULY 23, 1992 
"(1) such fields as health care, child care, Uteracy training, 
education (including tutorial services), welfare, social services, 
transportation, housing and neighborhood improvement, pubUc 
safety, crime prevention and control, recreation, rural develop-
ment, and community improvement; 
"(2) work in service opportunities or youth corps as defined 
in section 101 of the National and Commimity Service Act 
of 1990, and service in the agencies, institutions £ind activities 
designated in section 124(a) of the National and Commimity 
Service Act of 1990; 
"(3) support services to students with disabihties; and 
"(4) activities in which a student serves as a mentor for 
such purposes as— 
"(A) tutoring; 
*
*
(
B
) supporting educational and recreational activities; 
and 
"(C) counseling, including career counseling.". 
SEC. 442. ALLOCATION OF FUNDS. 
(a) GRANTS TO SCHOOLS WITH HIGH CONCENTRATIONS OF PELL 
GRANT RECIPIENTS.—Section 442(a) of the Act (42 U.S.C. 2752(a)) 
is amended by adding at the end the following new paragraph: 
"(4)(A) Notwithstanding any other provision oi this section, the 
Secretary may allocate an amount equal to not more than 10 
percent of the amoimt by which the gimount appropriated in any 
fiscal year to carry out this part exceeds $700,000,000 among 
eligible institutions described in subparagraph (B). 
"(B) In order to receive an allocation pursuant to subparagraph 
(A) an institution shall be an eligible mstitution fi*om which 50 
percent or more of the Pell Grant recipients attending such eligible 
mstitution graduate or transfer to a 4-year iQstitution of higher 
education.". 
(b) CONSEQUENCES OF FAILURE TO AWARD.—Section 442(e) of 
the Act is amended to read as follows: 
"(e) REALLOCATION OF EXCESS ALLOCATIONS.—If institutions 
return to the Secretary any portion of the sums allocated to such 
institutions under this section for any fiscal year, the Secretary 
shall reallot such excess to eligible institutions which used at least 
10 percent of the total amount of funds granted to such institution 
under this section to compensate students employed in community 
service in the preceding fiscal year. Such excess fimds shall be 
reallotted to institutions which qualify under this subsection on 
the same basis as excess eligible amounts are allocated to institu-
tions pursuant to subsection (c). Fimds received by institutions 
pursuant to this subsection shall be used to compensate students 
employed in community service.". 
SEC. 
4
4
3
. 
GRANTS 
FOR 
WORK-STUDY 
PROGRAMS. 
(a) CONTENTS OF AGREEMENTS.—Section 443(b)(1) of the Act (42 
U.S.C. 2753) is amended, in the matter preceding subparagraph 
(A), by inserting ", work in community service" after "itself*. 
(b) USE FOR COMMUNITY SERVICE.—Section 443(b)(2)(A) of the 
Act is amended to read as follows: 
"(A) in fiscal year 1994 and succeeding fiscal years, an 
institution shall use at least 5 percent of the totad amoimt 
of fimds granted to such institution under this section 
in any fiscal year to compensate students employed in 
community service, except that the Secretary may waive 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 565 
this subparagraph if the Secretary determines that enforc-
ing it would cause hardship for students at an institution;". 
(c) ALLOCATION.—Section 443(b)(3) of the Act is amended to read 
42 use 2753. 
as follows: 
"(3) provide that in the selection of students for emplojonent 
under such work-study program, only students, who dem-
onstrate fin£inci£il need in accordgince with part F of this title, 
and who meet the requirements of section 484 will be assisted, 
except that— 
"(A) if the institution's grsint under this part is directly 
or indirectly based in psrt on the financial need dem-
onstrated by students who are (i) attending the institution 
less than full time, or (ii) independent students; and 
"(B) if the total financial need of all such less than 
full-time and independent students at the institution 
exceeds 5 percent of the totsil financial need of all students 
at such institution, 
then at least 5 percent of the grant shall be made available 
to such less than full-time and independent students;". 
(d) OVERAWARD INCOME LiMiT.—Section 443(b)(4) of the Act is 
amended to read as follows: 
"(4) provide that for a student employed in a work-study 
program under this part, at the time income derived fi*om 
any need-based employment is in excess of the determination 
of the amoimt of such student's need by more than $300, 
continued employment shsill not be subsidized with funds appro-
priated under this part;". 
(e) FEDERAL SHARE.—Section 443(b)(5) of the Act is amended 
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— 
"(A) the Federal sheire may exceed such amounts of such 
compensation if the Secretary determines, pursuant to reg-
ulations promulgated by the Secretary establishing objec-
tive criteria for such determinations, that a Federal share 
in excess of such amounts is required in fiirtherance of 
the purpose of this part; and 
"(B) when a student engaged in work in community 
service performs such work for a private nonprofit organiza-
tion other than the eligible institution, the contribution 
of such agency or organization shall not exceed 40 percent 
of the institution's shsire of the compensation of the student, 
and the eligible institution in its discretion may count 
such contribution toward satisfaction of the non-Federal 
share of the compensation of the student;". 
(f) 
PROPRIETARY SCHOOLS.—Section 443(b)(8) of the Act is 
amended— 
(1) in subparagraph (A), by inserting ", except as required 
in subparagraph (A) of paragraph (2) before the semicolon 
at the end thereof; and 
(2) in subparagraph (C), by inserting "that are directly related 
to the student's education" Edfter "student services". 
(g) INDIVIDUALS WITH DISABILITIES.—Section 443(b) of the Act 
is amended— 
(1) by redesignating paragraph (9) as paragraph (11); 
106 STAT. 566 
PUBLIC LAW 102-325—JULY 23, 1992 
(2) by striking "and" at the end of paragraph (8); and 
(3) by inserting after paragraph (8) the following new para-
graphs: 
"(9) provide assurances that employment made available from 
funds imder this part may be used to support programs for 
supportive services to students with disabihties; 
"(10) provide assurances that the institution will inform all 
eligible students of the opportunity to perform community serv-
ice, and will consult with local nonprofit, governmental, and 
commimity-based organizations to identify such opportunities; 
and". 
SEC. 444. CARRY-BACK AUTHORITY. 
42 use 2755. 
Section 445(b) of the Act is amended— 
(1) by inserting "(1)" after the subsection heading; and 
(2) by adding at the end the following new paragraph: 
"(2) An eligible institution may make pajonents to students of 
wages earned after the end of the academic year, but prior to 
the beginning of the succeeding fiscal year, from such succeeding 
fiscal year's appropriations.". 
SEC. 445. JOB LOCATION AND DEVELOPMENT. 
42 use 2756. 
Section 446 of the Act is amended to read as foUows: 
"JOB 
LOCATION 
AND 
DEVELOPMENT PROGRAMS 
"SEC. 446. (a) AGREEMENTS REQUIRED.—(1) The Secretary is 
authorized to enter into agreements with eUgible institutions luider 
which such institution may use not more than 10 percent or $50,000 
of its allotment under section 442, whichever is less, to estabUsh 
or expand a program under which such institution, separately or 
in combination with other eligible institutions, locates and develops 
jobs, including community service jobs, for currently enrolled stu-
dents. 
"(2) Jobs located and developed under this section shall be jobs 
that are suitable to the scheduling and other needs of such students 
and that, to the maximmn extent practicable, complement and 
reinforce the educational programs or vocational goals of such stu-
dents. 
"(b) CONTENTS OP AGREEMENTS.—^Agreements under subsection 
(a) shall— 
"(1) provide that the Federal share of the cost of any program 
under this section will not exceed 80 percent of such cost; 
"(2) provide satisfactory assurance that funds available under 
this section will not be used to locate or develop jobs at an 
eligible institution; 
"(3) provide satisfactory assurance that funds available imder 
this section will not be used for the location or development 
of jobs for students to obtain upon graduation, but rather 
for the location and development of jobs available to students 
during and between periods of attendance at such institution; 
"(4) provide satisfactory assurance that the location or devel-
opment of 
jobs pursuant to programs assisted under this section 
will not result in the displacement of employed workers or 
impair existing contracts for services; 
"(5) provide satisfactory assurance that Federal funds used 
for the purpose of this section can recdistically be expected 
to help generate student wages exceeding, in the aggregate. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 567 
the amount of such funds, and that if such funds are used 
to contract with another organization, appropriate performance 
standards are part of such contract; and 
"(6) provide that the institution will submit to the Secretary 
an annual report on the uses made of funds provided vmder 
this section and an evaluation of the effectiveness of such 
program in benefiting the students of such institution.". 
SEC. 446. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE 
WORK-STUDY PROGRAMS. 
(a) IN GENERAL.—Section 447 of the Act (42 U.S.C. 2756a) is 
amended— 
(1) by striking subsections (a) and (b); and 
(2) in subsection (c)— 
(A) in the matter preceding paragraph (1), by striking 
"funds made available under the last sentence of section 
489(a)" and inserting "up to 10 percent of the funds made 
available under section 489(a) and attributable to the 
amount of the institution's expenditures under this part"; 
(B) in paragraph (3), by inserting ", and programs 
assisted under the National and Community Service Act 
of 1990" after "nonprofit agencies"; and 
(C) by striking *(c) USE OF OTHER FUNDS TO CONDUCT 
PROGRAM.—". 
(b) AMENDMENT TO HEADING.—^The heading for section 447 of 
the Act is amended to read as follows: 
"ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK-STUDY 
PROGRAMS". 
(c) CONFORMING AMENDMENTS.—Subsection (a) of section 489 of 
the Act (20 U.S.C. 1096(a)) is amended— 
(1) in the second sentence, by striking "(other than section 
447)"; and 
(2) by striking the fovui;h sentence (relating to payments 
with respect to section 447). 
SEC. 447. WORK COLLEGES. 
Part C of title IV of the Act (42 U.S.C. 2751 et seq.) is amended 
by adding at the end thereof the following new section: 
"WORK COLLEGES 
"SEC. 448. (a) PURPOSE.—The pvirpose of this section is to rec- 42 use 2756b. 
ognize, encourage, and promote the use of comprehensive work-
learning programs as a valuable educational approach when it 
is an integral part of the institution's educational program and 
a part of a financial plan which decreases reliance on grants and 
loans. 
"(b) SOURCE AND USE FUNDS.— 
"(1) SOURCE OF FUNDS.—In addition to the sums appropriated 
under subsection (f), fiinds allocated to the institution under 
part C and part E of tiiis title may be transferred for use 
under this section to provide flexibility in strengthening the 
self-help-through-work element in financial aid packaging. 
"(2) ACTIVITIES AUTHORIZED.—From the s\ims appropriated 
pursuant to subsection (f), and firom the fiinds available imder 
paragraph (1), ehgible institutions may, following approval of 
an apphcation under subsection (c) by the Secretary— 
106 STAT. 568 
PUBLIC LAW 102-325—JULY 23, 1992 
"(A) support the educational costs of qualified students 
through self-help payments or credits provided under the 
work-Teaming program of the institution within the limits 
of part F of 
this title; 
(B) promote the work-leaming-service experience as a 
tool of postsecondary education, fmancial self-help and com-
munity service-learning opportunities; 
"(C) carry out activities described in section 443 or 446; 
and 
"(D) be used for the administration, development and 
assessment of comprehensive work-learning programs, 
including— 
"(i) community-based work-learning alternatives that 
expand opportunities for community service and 
career-related work; and 
"(ii) alternatives that develop sound citizenship, 
encourage student persistence, and make optimum use 
of assistance under this part in education and student 
development. 
"(c) APPLICATION.—Each eligible institution may submit an 
application for funds authorized by subsection (f) to use funds 
imder subsection (bXl) at such time and in such manner as the 
Secretanr, by regulation, may reasonably require. 
"(d) M
A
T
C
H REQUIRED.—Funds made available to work-colleges 
E
ursuant to this section shall be matched on a dollar-for-dollar 
asis from non-Federal sources. 
"(e) DEFINITIONS.—For the purpose of this section— 
"(1) the term Svork-college' means an eligible institution 
that— 
"(A) has been a pubUc or private nonprofit institution 
with a commitment to community service; 
"(B) has operated a comprehensive work-learning pro-
gram for at least 2 years; 
"(C) requires all resident students who reside on campus 
to p£ui:icipate in a comprehensive work-learning program 
and the provision of services as an integral part of the 
institution's educational program and as part of the institu-
tion's educational philosophy; and 
"(D) provides students participating in the comprehensive 
work-learning p»rogram with the opportunity to contribute 
to their education and to the welfare of me community 
as a whole; and 
"(2) the term 'comprehensive student work-learning program' 
means a student work/service program that is an integral and 
stated part of the institution's educational philosophy and pro-
gram; requires participation of all resident students for enroll-
ment, participation, and graduation; iacludes learning objec-
tives, evaluation and a record of work performance as part 
of the student's college record; provides programmatic leader-
ship by college personnel at levels compsurable to traditional 
academic programs; recognizes the educational role of work-
learning supervisors; and includes consequences for non-
performance or failure in the work-learning program similar 
to the consequences for failure in the regular academic program. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 569 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section $5,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years.". 
PART D—FEDERAL DIRECT LOANS 
SEC. 451. ESTABLISHMENT OF FEDERAL DIRECT LOAN PROGRAM. 
Part D of title IV of the Act (20 U.S.C. 1087a et seq.) is amended 
to read as follows: 
"PART D—FEDERAL DIRECT LOAN 
DEMONSTRATION PROGRAM 
«SEC. 
451. 
PROGRAM 
AND 
PAYMENT 
AUTHORITY. 
"(a) PROGRAM AUTHORITY.—The Secretary shall, in accordance 
with the provisions of this part, carry out a loan demonstration 
program for qualified students and parents at selected institutions 
of higher education to enable the students to pursue their courses 
of study at such institutions during the period beginning on July 
1,1994 and ending on Jime 30,1998. 
"(b) PAYMENT AUTHORITY.— 
"(1) GENERAL AUTHORITY.—The Secretary shall make pay-
ments under this part for any fiscal year to institutions of 
higher education having an agreement under section 454, on 
the basis of the estimated needs of students at each institution 
and parents for student or parent loans, taking into consider-
ation the demsind and eligibility of such students and parents 
for loans under this part. 
"(2) ENTITLEMENT PROVISION.—An institution of higher edu-
cation which has an agreement with the Secretary under section 
454 shall be deemed to have a contractual right against the 
United States to receive payments according to that agreement. 
<<SEC. 452. PAYMENT RULES. 
"(a) IN GENERAL.—^The Secretary shall make payments required 
by section 451 in such installments as the Secretary determines— 
"(1) reflect accurately the disbursement of funds for student 
and parent loans by the institution of higher education, and 
"(2) will best carry out the objectives of this part. 
"(b) INITIAL PAYMENTS.—^The initial pa3rments for any academic 
year required by section 451 shall be made available to each institu-
tion of higher education not later than 10 days prior to the begin-
ning of the academic year at such institution. 
"SEC. 453. SELECTION BY THE SECRETARY. 
"(a) ENTRY REQUIREMENT.—The Secretary shall enter into agree-
ments with institutions of higher education, at which the total 
loan volume under the FedersJ Stafford Loan program, the Federal 
Supplemental Loans for Students program, and the Federal PLUS 
loan program was $500,000,000 in the most recent year for which 
data is available, to participate in the loan demonstration program 
to make loans for the period beginning with the academic year 
beginning on July 1, 1994, and ending with loans made before 
Jxme 30, 1998. Such agreements shall be concluded not later than 
January 1,1994. 
20 use 1087a. 
Effective date. 
Termination 
date. 
20 use 1087b. 
Contracts. 
20 use 1087c. 
Effective date. 
Termination 
date. 
106 STAT. 570 
PUBLIC LAW 102-325-JULY 23, 1992 
"(b) SELECTION CRITERIA.—The Secretary shall enter into agree-
ments with institutions of higher education which represent a cross-
section of all institutions of higher education participating in p£irt 
B of this title in terms of control of the institution, length of 
academic program, highest degree offered, size of student enroll-
ment, percentage of students borrowing imder part B, geographic 
location, annual loan volume, default experience and composition 
of the student body. 
"(c) PREFERENCE FOR APPLYING INSTITUTIONS.—In constituting 
the cross-section of institutions of higher education required by 
the previous subsection, the Secretary shall first enter into agree-
ments, to the maximum extent possible consistent with the require-
ments of constituting the cross-section, with institutions of higher 
education which apply to participate in the loan demonstration 
program. Institutions of higher education desiring to participate 
in the demonstration shall submit an application containing such 
information as the Secretary may by regulation prescribe. 
"(d) DESIGNATION OF ADDITIONAL INSTITUTIONS.—If an insuffi-
cient number of institutions of higher education apply and satisfy 
the conditions provided in subsections (a) and (b) of this section, 
the Secretary shall designate additional institutions of higher edu-
cation from among those eligible to participate in part B to partici-
pate in the loan demonstration program in order to satisfy the 
conditions provided in subsections (a) and (b) of this section. An 
institution of higher education designated by the Secretary pursuant 
to this subsection may decline to participate in the loan dem-
onstration program for good cause pursuant to regulations estab-
lished by the Secretary, 
"(e) LIMITATION.—^The Secretary shall ensure that the annual 
loan volume imder the FedercJ Stafford Loan program, the Federal 
Supplemental Loans for Students program, and the Federal Plus 
loan program at the institutions of higher education with which 
the Secretary enters into agreements imder this part, in the most 
recent fiscal year for which data are available, represents not more 
than 15 percent of the loan guarantees of any guaranty agency 
under such programs and the Secretary shall determine that such 
guaranty agency will remain financially sound. 
"(f) 
SELECTION OF SUBGROUP TO TEST INCOME CONTINGENT 
REPAYMENT.— 
"(1) SELECTION.—^Within the institutions of higher education 
selected or designated to participate in the loan demonstration 
program under this part, the Secretary shall select 35 percent 
of such institutions to offer income contingent repajmaent meth-
ods in accordance with section 454(6). 
"(2) FINDING REQUIRED.—The Secretary shall not select 
institutions to offer such repa3maent methods vmless the Sec-
retary publishes a finding that-— 
(A) the Secretary nas established a collection mechanism 
that will provide a high degree of certainty that collections 
will be made in accordance with the repa3anent option; 
and 
"(B) the use of such repayment option and collection 
mechanism will result in an increase in the net gimoimt 
the Goverrmient will collect. 
"(g) CONSORTIA.—Institutions of higher education may apply to 
participate in the program pursuant to subsection (c) as consortia. 
The Secretary shall consider the members of the consortia as 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 571 
individual institutions for the purposes of subsection (b). Institu-
tions of hi^er education selected by the Secretary to participate 
in the program may also enter into consortia for the purpose of 
carrying out the agreement required by section 454. 
«SEC. 454. AGREEMENT REQUIRED. 
20 USC 1087d. 
"An agreement with any institution of higher education for par-
ticipation in the loan demonstration program shall— 
''(1) provide for the estabUshment and maintenance of a loan 
demonstration program at the institution of higher education 
under which— 
"(A) the institution of higher education will identify 
eligible students who seek sUident financial assistance at 
such institution, in accordance with section 484; 
''(B) the institution of higher education will estimate 
the need of each such student as required by part F; 
"(C) the institution of higher education will originate 
loans to such eligible students and eligible parents in 
accordance with this part, and will not charge any adminis-
trative fees to such students or parents for such origination 
activities; 
"(D) the institution of higher education will provide 
timely information concerning the status of student and 
parent borrowers to the contractor or contractors respon-
sible for loan collection pursuant to section 457; and 
"(E) the institution of higher education will participate 
in the loan demonstration program for its duration, subject 
to procedures for withdrawal established by section 455; 
"(2) provide assurances that the institution of higher edu-
cation will comply with the provisions of section 463A, relating 
to student loan information, with respect to loans made under 
this part; 
"(3) provide that the note or evidence of obligation on the 
loan shall be the property of the Secretary and that the institu-
tion of higher education will act as the agent of the Secretary 
for the purpose of making loans under the loan demonstration 
program; 
"(4) provide that the institution of higher education will 
accept responsibility and liability stemming from its failure 
to perform its frmctions pursuant to the agreement; 
(5) provide that students at the institution of higher edu-
cation and their parents (with respect to such students) will 
not be eligible to participate in the Federal Stafford Loan 
program, the Federal Supplemental Loans to Students program, 
or the Federal Plus loan program for the period during which 
such institution participates in the loan demonstration pro-
gram; 
"(6) in the case of the institutions selected by the Secretary 
pursuant to section 453(f), include such terms and conditions 
as the Secretary may require by regulation for testing income 
contingent repayment methods, which shall include— 
(A) requiring such institutions to offer the option of 
income contingent repayment, based on an annual review 
of the borrowers Federsd income tax return, to any student 
who appUes for a loan under this part; 
"(B) the additional or different terms and conditions to 
be included in the notes or other agreements entered into 
106 STAT. 572 
PUBLIC LAW 102-325—JULY 23, 1992 
Regulations. 
20 u s e 1087e. 
20 u s e 1087f. 
20 u s e 1087g. 
Records. 
by the borrower, as required by such regulations, including 
provisions with respect to the disclosure by the borrower 
of subsequent income; 
"(C) providing for the discharge of loans after not more 
than 25 years of income contingent repayment; and 
"(D) such data and reporting requirements £uid such 
other provisions as the Secretary considers necessary to 
carry out the purposes of section 458(d)(2) and to the 
protection of the Federal fiscal interest; and 
"(7) include such other provisions as may be necessary to 
protect the financial interest of the United States and to pro-
mote the purposes of this part. 
<«SEC. 465. WITHDRAWAL AND TERMINATION PROCEDURES. 
"The Secretary shall establish by regulation procedures which 
enable institutions of higher education who have made agreements 
with the Secretary pursuant to section 454 to withdraw or to 
be terminated 
fi*om 
the loan demonstration program. 
"SEC. 466. TERMS AND CONDITIONS. 
"Unless otherwise specified in this part, the loans made under 
this part shall have the same terms, conditions, and benefits as 
loans made under sections 428, 428A, and 428B of this title. Any 
loan made under this part shall be eligible for consolidation under 
section 428C of part B of this title. 
«SEC. 467. LOAN COLLECTION FUNCTIONS UNDER COMPETITIVE PRO-
CUREMENT CONTRACTS. 
"(a) IN GENERAL.—^The Secretary shall provide, through contracts 
awarded on a competitive basis, for— 
"(1) the collection of principal £uid interest on loeuis made 
under this part by not less than 5 contracts, at least one 
of which shall be for servicing loans that are subject to income 
contingent repayment; 
"(2) the collection of defaulted loans made imder this part; 
"(3) the establishment and operation of a central data system 
for the mainteneince of records on all loans made imder this 
part; 
"(4) programs for default prevention; and 
"(5) such other programs as the Secretary determines are 
necessary to ensure the success of the loan demonstration pro-
gram. 
"(b) SERVICING FOR INCOME CONTINGENT LOANS.—The Secretary 
shall, through contract, ensure the availability of servicing of loans 
made pursuant to section 454(6) at a cost comparable to that 
available for loeins under part B of this title (that are not subject 
to income contingent repayment). 
"(c) INFORMATION ON INCOME CONTINGENT LOANS.—The Secretary 
shall acquire such information as is necessary regarding the 
adjusted gross income of borrowers (under this part and xinder 
paj*t B) of loans that are subject to income contingent repayment 
for the purpose of determining the annual repa5anent obligations 
of such borrowers. The Secretary, not less often than once per 
year, shall provide to the servicer, lender, or holder of a loan 
under this part the Secretary's determination of the borrower's 
repajmient obligation on that loan for such year. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 573 
•«EC. 458. REPORTS. 
20 USC 1087h. 
"(a) ANNUAL REPORTS.—^The Secretary shall submit to the Con-
gress not later than July 1, 1993, and each July 1 for the 5 
succeeding years an annual report describing the progress and 
status of the loan demonstration program. 
"(b) INTERIM FINAL REPORT.—The Comptroller General shall sub-
mit to the Congress not later than January 1, 1997, an interim 
final report evaluating the experience of the Department of Edu-
cation, the participating institutions of higher education, students, 
and parents with respect to the loan demonstration program. The 
report shgdl include— 
"(1) the administrative costs, including costs per loan, 
incurred by participating institutions of higher education in 
administering the loan demonstration program; 
"(2) the administrative costs, including costs per loan, 
incurred by the Department of Education and its contractors 
in carrying out its responsibilities, including the costs of origina-
tion, data systems, servicing, and collection; 
"(3) an evaluation of the effectiveness of the loan dem-
onstration program in providing services to students and par-
ents, including loan application, login origination, student finan-
cial aid packaging, tracking of student status, responsiveness 
to student inquiries and processing of deferments, forbearances, 
and repayments; 
"(4) the fi*equency and cost of borrower delinquency and 
default under the loan demonstration program and losses 
incurred by institutions of higher education and servicers, 
including losses caused by improper origination or servicing 
of loans; 
"(5) the timeliness of capital availability to institutions of 
higher education and of loans to students and parents £ind 
the cost of loan capital; 
"(6) £in evaluation of the effectiveness of the income contin-
gent repajrment option; 
"(7) a comparison of the experience of institutions of higher 
education, students, and parents participating in loan dem-
onstration program with the experience of institutions, stu-
dents, and parents in the control group described in subsection 
(d) with respect to the subjects indicated in paragraphs (1) 
through (6) of this subsection; 
"(8) an evaluation of the administrative performance of the 
Department; 
"(9) an analysis of the reasons institutions selected by the 
Secretary pursuant to section 453(d) chose not to participate 
and the reasons institutions withdrew or were terminated pur-
suant to section 455; 
"(10) an analysis of the experience of borrowers with loans 
imder both this psirt and part B and recommendations for 
the most effective repa5nnent procedures for such borrowers; 
"(11) a comparison of the cost of loan capital for loans for 
the loan demonstration program with the cost of loan capital 
for the comparable programs in part B of this title; 
"(12) an analysis, where practicable, of the experience of 
institutions which participate as part of a consortia; and 
"(13) recommendations for modifications, continuation, expan-
sion, suspension, or termination of the loan demonstration pro-
106 STAT. 574 
PUBLIC LAW 102-325—JULY 23, 1992 
gram or replacement of all or some of the programs authorized 
by part B. 
"(c) FINAL REPORT.—The Comptroller General shall submit to 
the Congress not later than May 1, 1998, a final report eveiluating 
the experience of the Department of Education, the participating 
institutions of higher education, and students with respect to the 
loan demonstration program. The report shall include the same 
matters provided for in subsection (b) of this section. 
"(d) CONTROL GROUP.— 
"(1) REGULAR REPAYMENT.—TO assist the Comptroller General 
in preparing the reports required by subsections (b)(6) and 
(c) of this section, the Secretary shall select a control group 
of institutions of higher education, which represent a cross-
section of all institutions of higher education pgirticipating in 
part B of this title and which is comparable to tiie cross-
section of institutions of higher education selected for participa-
tion in the loan demonstration program pursuant to section 
453. The Secretary shall select the control groups in the same 
manner, pursuant to section 453, that the institutions of higher 
education are selected to participate in the demonstration pro-
gram. 
"(2) INCOME CONTINGENT REPAYMENT.—If the Secretary 
makes a selection of institutions to test income contingent 
repayment methods in accordance with section 453(f), the Sec-
retary shall, within the control group selected under paragraph 
(1), identify a group of institutions to serve as a control group 
for comparison with the institutions offering income contingent 
loans imder this part pursuemt to section 454(6). The institu-
tions selected for the control group under this paragraph shall 
represent a reasonable cross section of the institutions selected 
under paragraph (1). The Secretary shall publish a Ust of 
the institutions that are so selected. Any eligible lender of 
a loan to a student for attendance at any such institution 
shall, in accordance with regulations prescribed by the Sec-
retary, offer such students the option of repajdng such loans 
on an income contingent basis consistent with such regulations. 
Regulations. 
"(3) INCOME CONTINGENT T
E
R
M
S A
N
D CONDITIONS.—The Sec-
retary shall, by regulation, estabUsh the terms and conditions 
for loans that are subject to paragraph (2) of this subsection. 
Such terms and conditions shall, to the extent practicable, 
be the same as the terms and conditions of loans made pursuant 
to section 454(6). The Secretary is authorized to enter into 
such agreements (and amendments to agreements) under part 
B of this title as may be necessary to carry out paragraph 
(2) and this paragraph. 
"(e) TREATMENT OP COSTS.—In reporting with respect to costs 
in the reports required by subsections (b) and (c) of this section, 
the Comptroller General shall report separately the nonrecurrent 
costs such as start-up costs associated with the loan demonstration 
program, the administrative costs incurred by institutions of higher 
education in providing information to enable the Comptroller Gen-
eral to prepare the reports required by subsections (b) and (c) 
of this section and the normal costs of operating the loan dem-
onstration program. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 575 
•«EC. 469. SCHEDULE 
RETARY. 
OF REGULATORY ACTIVrnES BY THE SEC-
"(a) PROPOSED REGULATIONS.—The Secretary shall publish in the 
Federal Register not later than April 1, 1993, all proposed regula-
tions for carrying out the program estabhshed by this part, includ-
ing regulations with respect to— 
"(1) payments to institutions of higher education; 
"(2) the selection of institutions of higher education to partici-
pate in the loan demonstration program; 
"(3) application by institutions of higher education to partici-
pate in the loan demonstration program; 
"(4) agreements between the Secretary and institutions of 
higher education participating in the loan demonstration pro-
gram; 
"(5) procedures with respect to the withdrawal and termi-
nation of institutions of higher education from the loan dem-
onstration program; and 
"(6) procedures by which institutions designated by the Sec-
retary pursuant to section 453(d) may decline to participate 
in the loan demonstration program. 
"(b) FINAL REGULATIONS.—The Secretary shall publish in the 
Federal Register not later than July 1, 1993, all final regulations 
for carrying out the program established by this part, including 
regulations with respect to the same matters provided for in sub-
section (a) of this section. 
"(c) CLOSING DATE FOR APPLICATIONS FROM INSTITUTIONS.—The 
Secretary shall establish October 1, 1993, as the closing date for 
receiving appUcations from institutions of higher education desiring 
to peirticipate in the loan demonstration program pursuant to sec-
tion 453(c). 
"(d) PUBLICATION OF LIST OF PARTICIPATING INSTITUTIONS AND 
CONTROL GROUP.—Not later than January 1, 1994, the Secretary 
shall publish in the Federal Register a list of the institutions 
of higher education selected to participate in the loan demonstration 
program pursuant to section 453 and a list of the institutions 
of higher education in the control group required by section 458(d). 
"(e) PROCUREMENT CONTRACTS.—The Secretary shall award con-
tracts pursuant to section 457 not later than February 1, 1994. 
"SEC 459A. FUNDS FOR ADMINISTRATIVE EXPENSES. 
"Each fiscal yegir, there shall be available to the Secretary of 
Education from funds not otherwise appropriated, funds to be obli-
gated for administrative costs xinder this part, not to exceed 
$10,000,000 in fiscal year 1993, $17,000,000 in fiscal year 1994, 
$37,000,000 in fiscal year 1995, $54,000,000 in fiscal year 1996, 
and $65,000,000 in fiscal year 1997.". 
SEC. 452. INCOME CONTINGENT LOAN DISTRIBUTION OF FUNDS. 
(a) IN GENERAL.—Afl«r September 30, 1992, and not later than 
March 31, 1992, the capital bedance of the student loan fiind estab-
hshed under part D of title IV of the Higher Education Act of 
1965 (as such Act was in effect on the date of enactment of this 
Act) shall be distributed by allowing institutions to transfer any 
remaining funds, including future collections and all other funds 
at the institution's discretion, to such institution's part E account, 
pgut C fimd, or subpeui; 3 of part A fund under the terms and 
conditions of the appropriate program. 
Federal 
Register, 
publication. 
20 u s e 1087i. 
20 u s e 1087J. 
20 u s e 1087a 
note. 
106 STAT. 576 
PUBLIC LAW 102-325—JULY 23, 1992 
(b) CONVERSION OF EXISTING LOANS.—Institutions may, after July 
1, 1992, convert all outstanding loans made under part D of title 
IV of the Higher Education Act of 1965 (as such Act was in effect 
on such date) to part E loans, provided that such institution— 
(1) notify the borrower of such conversion; 
(2) obtam a signed part E promissory note from the borrower 
for tiie remsdning amount outstanding; and 
(3) provide the borrower in writing with a description of 
all terms and conditions of the new loan. 
PART 
E—FEDERAL 
PERKINS 
LOANS 
SEC. 461. PROGRAM DESIGNATION; AUTHORIZATION. 
(a) PROGRAM TITLE.— 
(1) HEADING.—The heading of part E of title IV is amended 
to read as follows: 
"PART E—FEDERAL PERKINS LOANS". 
20 use I087aa. 
(2) NAME OF LOANS.—Section 461(a) of the Act is amended 
by striking "as 'Perkins Loans'" and inserting "as 'Federal 
Perkins Loans'". 
(b) ELIGIBILITY FOR STUDY ABROAD.—Section 461(a) of the Act 
is amended by inserting "or while engaged in programs of study 
abroad approved for credit by such mstitutions" after "in such 
institutions". 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 461(b) of the 
Act is amended to read as follows: 
"(b) AUTHORIZATION OF APPROPRIATIONS.—(1) For the purpose 
of enabling the Secretary to make contributions to student loein 
funds established imder this part, there are authorized to be appro-
E
riated $250,000,000 for fiscal year 1993 and such sums as may 
e necessary for each of the 4 succeeding fiscal years. 
"(2) In addition to the funds authorized under paragraph (1), 
there are hereby authorized to be appropriated such sums for fiscal 
year 1997 and each of the 5 succeeding fiscal years as may be 
necessary to enable students who have received loans for academic 
years ending prior to October 1, 1997, to continue or complete 
courses of study.". 
SEC. 462. ALLOCATION OF FUNDS. 
20 use i087bb. 
(a) INSTITUTIONAL ALLOCATION.—Section 462(a)(1)(A) of the Act 
is amended by striking "such institution received" and inserting 
"allocated to such institution". 
(b) APPEALS PROCESS.—Section 462(e) (20 U.S.C. 1087bb(e)) is 
amended— 
(1) by striking "An" and inserting "(1) An"; and 
(2) by adding at the end the following new paragraph: 
"(2) The Secretary shall establish an appesds process by which 
the anticipated coUections required in paragraph (1) may be 
wEQved for institutions with low default rates in the program 
assisted imder this part.". 
(c) DEFAULT REDUCTION AND DEFAULT PENALTIES.—Section 462(f) 
of the Act is amended to read as follows: 
"(f) DEFAULT REDUCTION AND DEFAULT PENALTIES.—(1) For 
any 
fiscal year prior to fiscal year 1994, any institution which has 
a default rate which equals or exceeds 7.5 percent but does not 
exceed the maximimi default rate applicable to the award year 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 577 
under subsection (g), the institution's default penalty is a percentage 
equal to the comiHemeht of such default rate. For any institution 
which has a default rate that does not exceed 7.5 percent, the 
institution's default penalty is equal to one. 
"(2) For fiscal year 1994 and any succeeding fiscal year, any 
institution with a cohort default rate (as defined under subsection 
(h)) which— 
"(A) equals or exceeds 15 percent, shall establish a default 
reduction plan pursuant to regulations issued by the Secretary; 
"(B) equals or exceeds 20 percent, but is less than 25 percent, 
shall have a default penalty of 0.9; 
"(C) equals or exceeds 25 percent, but is less than 30 percent, 
shall have a default penalty of 0.7; and 
"(D) equals or exceeds 30 percent shall have a default penalty 
of zero.". 
(d) APPLICABLE MAXIMUM DEFAULT RATE.—Section 462(g) of the 
Act is amended to read as follows: 
20 use lOSTbb. 
"(g) APPLICABLE MAXIMUM DEFAULT RATE.—(1) For award years 
1992 and 1993, the appUcable maximum default rate is 15 percent. 
"(2) For award year 1994 and subsequent years, the maximum 
cohort default rate is 30 percent.". 
(e) DEFINITIONS OF DEFAULT RATE AND COHORT DEFAULT RATE.— 
Section 462(h) of the Act is amended— 
(1) by striking the title of the subsection and inserting 
"DEFINITIONS OF DEFAULT RATE AND COHORT DEFAULT RATE."; 
(2) in paragraph (1), 1^ striking "For the purpose of this 
section," and insertiiag "For any award year prior to award 
year 1994, for the purpose of this section,"; 
(3) by redesignating paragraph (3) as paragraph (4); 
(4) by striking "120 in subparagraph (A) of such paragraph 
and inserting "240"; 
(5) by amending subparagraph (B) of such paragraph to read 
as follows: 
"(B) 270 days (in the case of a loan repayable quarterly), 
after the borrower fails to make an installment payment 
when due or to comply with other terms of the promissory 
note,"; and 
(6) by inserting after paragraph (2) the following new para-
graph: 
"(3)(A) For award year 1994 and any succeeding year, the 
term 'cohort default rate' means, for any award year in which 
30 or more current and former students at the institution 
enter repajrment on loans imder this part (received for attend-
ance at the institution), the percentage of those current and 
former students who enter repayment on such loans (received 
for attendance at that institution) in that award year who 
default before the end of the following award year, 
"(B) In determining the number of students who default 
before the end of such award year, the Secretary shall, in 
calculating the cohort default rate, exclude any loans which, 
due to improper servicing or collection, would result in an 
inaccurate or incomplete calculation of the cohort default rate. 
"(C) For any award year in which less than 30 of the institu-
tion's current and former students enter repajmient, the term 
'cohort default rate' means the percentage of such current and 
former students who entered repajonent on such loans in any 
of the three most recent award years and who default before 
59-194 O—93 
20 : QL 3 (Pt. 1) 
106 STAT. 578 
PUBLIC LAW 102-325—JULY 23, 1992 
the end of the award year immediately following the year 
in which they entered repa3anent. 
"(D) A loan on which a payment is made by the institution 
of higher education, its owner, agency, contractor, employee, 
or any other entity or individual affiliated with such institution, 
in order to avoid default by the borrower, is considered as 
in default for the purposes of this subsection. 
"(E) Any loan that is in default but on which the borrower 
has made satisfactory arrangements to resume payment or 
any loan which has been rehabilitated before the end of such 
following award year is not considered as in default for purposes 
of this subsection. 
"(F) In the case of a student who has attended and borrowed 
at more than one school, the student (and his or her subsequent 
repayment or default) is attributed to the school for attendsuice 
at which the student received the lo£ui that entered repayment 
in the award year. 
Regulations. 
"(G) The Secretary shall prescribe regulations designed to 
prevent an institution from evading the appUcation to that 
institution of a default rate determination under this subsection 
through the use of such measures as branching, consolidation, 
change of ownership or control or other means as determined 
by the Secretary.", 
(f) REALLOCATION OF EXCESS ALLOCATIONS.—Section 462(j) of the 
Act (20 U.S.C. 1087bb(j)) is amended to read as follows: 
"0*) REALLOCATION OF EXCESS ALLOCATIONS.— 
"(1) IN GENERAL,—(A) If an institution of higher education 
returns to the Secretary any portion of the sums allocated 
to such institution under this section for any fiscal year, the 
Secretary shall reallocate 80 percent of such returned portions 
to participating institutions in an amount not to exceed such 
participating institution's excess eUgible amounts as deter-
mined under paragraph (2). 
"(B) For the purpose of this subsection, the term'participating 
institution' means an institution of higher education that— 
"(i) was a participant in the program assisted imder 
this part in fiscal year 1985; and 
"(ii) did not receive an allocation under subsection (a) 
in the fiscal year for which the reallocation determination 
is made. 
"(2) EXCESS ELIGIBLE AMOUNT.—For any participating institu-
tion, the excess eligible amount is the amount, if any, by 
which— 
"(A)(i) that institution's eKgible amount (as determined 
under paragraph (3) of subsection (c)), divided by (ii) the 
sum of the eligible amoimts of all participating institutions 
(as determined imder paragraph (3)), mxiltiplied by (iii) 
the amoimt of funds available for reallocation under this 
subsection; exceeds 
"(B) the amoxmt required to be allocated to that institu-
tion under subsection (c) of section 462. 
"(3) REMAINDER.—^The Secretary shall reallocate the remain-
der of such returned portions in accordance with regulations 
of the Secretary. 
"(4) ALLOCATION REDUCTIONS.—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 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 579 
shall be reduced by the amount returned. The Secretary may 
waive this paragraph for a specific institution if the Secretary 
finds that enforcing it is contrary to the interest of the pro-
gram.". 
SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION. 
(a) CAMPUS MATCH.—Section 463(aX2)(B) of the Act is amended 
20 use i087cc. 
to read as follows: 
"(B) a capital contribution— 
"(i) by an institution that— 
"(I) is granted permission by the Secretary to 
participate in an Expanded Lending Option under 
the program, and 
"(II) has a default rate which does not exceed 
7.5 percent, 
in an eunoimt not less than the amoimt of the Federal 
capit£il contributions described in subparagraph (A); 
or 
"(ii) by any other institution, ID an amoimt not less 
than three-seventeenths of such Federal capital con-
tribution in fiscal year 1993, and one-third of such 
Federeil capital contribution in each of the succeeding 
fiscal years, of the amount of the Federal capital con-
tributions described in subparagraph (A);". 
(b) VERIFICATION.—Section 463(c) of the Act is amended— 
(1) in subparagraph (B) of paragraph (3), by striking ", if 
that account has not been previously reported by any other 
holder of the note"; 
(2) by adding at the end the following new paragraph: 
"(4) Each institution of higher education, after consultation with 
the Secreteiry and pursuant to the agreements entered into under 
paragraph (1), shaU disclose to any credit bureau organization 
with which the Secretary has such an agreement— 
"(A) the amount of loans made to any borrower imder this 
part at the time of the disbursement of the loan; and 
"(B) the information set forth in section 430A(a).". 
(c) ADDITIONAL RULES.— 
(1) DEFINITION OF DEFAULT.—Paragraph (11) of section 
463A(a) of the Act (20 U.S.C. 1087cc(a)(l)) is amended by 20 use I087cc-i. 
striking "including a statement that the default may be" and 
inserting "together with a statement that the disbursement 
of, and the default on, a loan under this part, shall be". 
"(2) ADDITIONAL REQUIREMENTS.—Section 463A of the Act 
is amended by adding at the end the following new subsections: 
"(d) LIMITATION ON USE OF INTEREST BEARDJG 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 amoimts 
collected on such loans in interest bearing accounts, 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.". 
106 STAT. 580 
PUBLIC LAW 102-325—JULY 23, 1992 
SEC. 464. AMOUNTS AND TERMS OF LOANS. 
20 use i087dd. 
(a) ANNUAL AND AGGREGATE LOAN LIMITS.—Section 464(a)(2) of 
the Act is amended to read as follows: 
"(2)(A) Except as provided in paragraph (4), the total of loans 
made to a student in any academic year or its equivalent by an 
institution of higher education from a loein fiind established pursu-
ant to an agreement xmder this part shall not exceed— 
"(i) for institutions that have an agreement with the Secretary 
to participate in the Expanded Lending Option under section 
463(a)(2)(B)(i)— 
"(I) $4,000, in the case of a student who has not success-
fully completed a program of undergraduate education; or 
"(11) $6,000, in the case of a graduate or professional 
student (as defined in regulations issued by the Secretary), 
"(ii) for all other institutions— 
"(I) $3,000, in the case of a student who has not success-
fully completed a program of undergraduate education; or 
"(II) $5,000, in the case of a graduate or professional 
student (as defined in regulations issued by the Secretary). 
"(B) Except as provided in paragraph (4), the aggregate of the 
loans for all years made to a student by institutions of higher 
education from lo£in funds established pursuant to agreements 
under this part may not exceed— 
"(i) for institutions that have an agreement with the Secretary 
to participate in the Expanded Lending Option under section 
463(a)(2)(B)(i)-
"(I) $40,000 in the case of any graduate or professional 
student (as defined by regulations of the Secretary, and 
including any loans from such funds made to such person 
before he became a graduate or professional student); 
"(II) $20,000 in the case of a student who has successfully 
completed 2 years of a program of education leading to 
a bachelor's degree but who has not completed the work 
* 
necessary for such a degree (determined imder regulations 
of the Secretary, and including any loans from such fimds 
made to such person before he became such a student); 
and 
"(III) $8,000 in the case of any other student; or 
"(ii) for all other institutions— 
"(I) $15,000, in the case of any student who has not 
successfully completed a program of undergraduate edu-
cation; or 
"(II) $30,000, in the case of any graduate or professional 
student (as defined by regulations issued by the Secretary) 
and including any loans from such funds made to such 
student before the student became a graduate or profes-
siongJ student.". 
(b) STUDY ABROAD LIMITS.—Section 464(a) of the Act is amended 
by inserting after paragraph (3) the following new paragraph: 
"(4) In the case of a program of study abroad that is approved 
for credit by the home institution at which a student is enrolled 
and that has reasonable costs in excess of the home institution's 
budget, the annual and aggregate loan limits for the student may 
exceed the amounts described in paragraphs (2)(A) and (2XB) by 
20 percent.". 
(c) ELIGIBILITY.—Section 464(b) of the Act is amended— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 581 
(1) in paragraph (1), by striking 'this title and who meets 
the requirements of section 484" and inserting "this title, who 
meets the requirements of section 484, and who provides the 
institution with the student's drivers Ucense number, if any, 
at the time of appUcation for the loan"; and 
(2) by amending paragraph (2) to read as follows: 
"(2) If the institution's capital contribution under section 462 
is directly or indirectly based in part on the financial need dem-
onstrated by students who are (A) attending the institution less 
than full time, or (B) independent students, and if the total financial 
need of all such less than fuU-time and independent students at 
the institution exceeds 5 percent of the total fin£uicial need of 
all students at such institution, then at least 5 percent of such 
loans shall be made available to such less than fiiU-time and 
independent students.". 
(d) MINIMUM MONTHLY PAYMENTS.—Section 464(c)(1)(C) of the 
Act is amended by striking "$30" each place it appears and inserting 20 use I087dd. 
"$40". 
(e) ELIMINATION OF DEFENSE OF INFANCY.—Section 464(c)(1)(E) 
of the Act is amended by striking "luiless the borrower is a minor 
and the note or other evidence of obligation executed by him would 
not, under appHcable law, create a binding obligation,". 
(f) DEFERMENTS.—Section 464(c)(2)(A) is amended to read as fol-
lows: 
"(2)(A) No repa5nnent of principal of, or interest on, any loan 
from a student loan fund assisted under this part shall be required 
during any period— 
"(i) during which the borrower— 
"(I) is pursuing at least a half-time course of study as 
determined by an eligible institution; or 
"(II) is pursuing a course of study pursuant to a graduate 
fellowship program approved by the Secretary, or pursuant 
to a rehabilitation training program for disabled individuals 
approved by the Secretanr, 
except that no borrower shaU be eligible for a deferment imder 
this clause, or loan made vmder this part while serving in 
a medical internship or residency program; 
"(ii) not in excess of 3 years during which the borrower 
is seeking and unable to find full-time employment; 
"(iii) not in excess of 3 years for any reason which the 
lender determines, in accordance with regulations prescribed 
by the Secretary under section 435(o), has caused or will cause 
the borrower to have an economic hardship; or 
"(iv) during which the borrower is engaged in service 
described in section 465(a)(2); 
and provides that any such period shall not be included in determin-
ing the 10-year period described in subparagraph (B).". 
(g) REPAYMENT PERIOD.—Section 464(c) of the Act is further 
amended— 
(1) in paragraph (2), by striking subparagraphs (B) and (C) 
and inserting the following: 
"(B) No repayment or principal of, or interest on, any loan for 
any period described in subparagraph (A) shall begin until 6 months 
after the completion of such period. . 
(2) by redesignating paragraph (4) as paragraph (5); 
(3) by inserting after paragraph (3) the following new para-
graph: 
106 STAT. 582 
PUBLIC LAW 102-325—JULY 23, 1992 
"(4) The repajmient period for a loan made under this part shall 
begin on the day immediately following the expiration of the period, 
specified in paragraph (1)(A), after the student ceases to carry 
the required academic workload, unless the borrower requests and 
is granted a repayment schedule that provides for repayment to 
commence at an earlier point in time, and shall exclude any period 
of authorized deferment, forbearance, or cancellation."; and 
(4) by adding at the end thereof the following new paragraph: 
"(6) Requests for deferment of repayment of loans under mis 
part by students engaged in graduate or post-graduate fellowship-
supported study (such as pursuant to a FuUbright grant) outside 
the United States shall be approved imtil completion of the period 
of the fellowship.". 
(h) FORBEARANCE; SPECIAL REPAYMENT RULE.—Section 464 of 
20 use I087dd. the Act is amended by adding at the end the following new sub-
sections: 
"(e) FORBEARANCE.—^The Secretary shall ensure that, upon writ-
ten request, an institution of higher education shall grant a bor-
rower forbearance of principal and interest or principle only, renew-
able at 12-month intervals for a period not to exceed 3 years, 
on such terms as are otherwise consistent with the regulations 
issued by the Secretary and agreed upon in writing by the parties 
to the loan, i
f
— 
"(1) the borrower's debt burden equals or exceeds 20 percent 
of such borrower's gross income; or 
"(2) the institution determines that the borrower should qual-
ify for forbearance for other reasons. 
"(f) SPECIAL REPAYMENT RULE AUTHORITY.—(1) Subject to such 
restrictions as the Secretary may prescribe to protect the interest 
of the United States, in order to encourage repayment of loans 
made imder this part which are in default, the Secretary may, 
in the agreement entered into under this part, authorize an institu-
tion of higher education to compromise on the repa3anent of such 
defaulted loans in accordance with paragraph (2). The Federal 
sh£ire of the compromise repajrment shall bear the same relation 
to the institutioiLs share of such compromise repayment as the 
Federal capital contribution to the institution's loan fund under 
this part bears to the institution's capital contribution to such 
fund. 
"(2) No compromise repayment of a defaulted loan as authorized 
by paragraph (1) may be made unless the student borrower pays— 
"(A) 90 percent of the loan under this part; 
"(B) the interest due on such loan; and 
"(C) any collection fees due on such loan; 
in a lump sum payment.". 
SEC. 
466. 
CANCELLATION OF 
LOANS 
FOR CERTAIN 
PUBLIC SERVICE. 
20 use I087ee. 
(a) CANCELLATION FOR TEACHING.—Section 465(aX2) of the Act 
is amended— 
(1) in subparagraph (A), by striking "and such determination 
shall not be made with respect to not more tiian 50 percent 
of the total number of schools in the State receiving assistance 
under such chapter 1"; 
(2) by amending subparagraph (C) to read as follows: 
"(C) as a fiill-time special education teacher, including teach-
ers of infants, toddlers, children, or youth with disabilities 
in a public or other nonprofit elementary or secondary school 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 583 
system, or as a full-time qualified professional provider of early 
intervention services in a public or other nonprofit program 
under public supervision by the lead agency as authorized 
in section 676(b)(9) of the Individuals With Disabilities Edu-
cation Act;"; 
(3) by striking "or" at the end of subparagraph (E); 
(4) by striking the period at the end of subparagraph (F) 
and inserting "; or"; and 
(5) by adding at the end the following new subparagraphs: 
"(G) as a full-time teacher of mathematics, science, foreign 
languages, bilingual education, or any other field of expertise 
where the State educational agency determines there is a short-
age of quahfied teachers; 
"(H) as a full-time nurse or medical technician providing 
health care services; or 
"(I) as a full-time employee of a public or private nonprofit 
child or family service agency who is providing, or supervising 
the provision of, services to high-risk children who are fi*om 
low-income communities and the families of such children.". 
(b) RATE OF CANCELLATION.—Section 465(a)(3)(A)(i) of such Act 20 use I087ee. 
is amtended by striking "(A), (C), or (F)" and inserting "(A), (C), 
(F),(G),(H),or(I)". 
(c) SPECIAL RULES.—Section 465 of the Act is amended by adding 
at the end the following new subsection: 
"(c) SPECIAL RULES.— 
"(1) LIST.—If the list of schools in which a teacher may 
E
erform service pursuant to subsection (a)(2)(A) is not available 
efore May 1 of any year, the Secretary may use the list 
for the year preceding the year for which the determination 
is made to make such service determination. 
"(2) CoNTDsruiNG ELIGIBILITY.—Any teacher who performs 
service in a school which— 
"(A) meets the requirements of subsection (a)(2)(A) in 
any year; and 
"(B) in a subsequent year fails to meet the requirements 
of such subsection, 
may continue to teach in such school and shall be eligible 
for loan cancellation pursuant to subsection (aXl) such sub-
sequent years.". 
(d) CONFORMING AMENDMENT: DEFINITIONS; LIMITATIONS.—Part 
E of title IV is further amended by adding at the end the following 
new section: 
"DEFINITIONS 
"SEC. 469. (a) LOW-INCOME COMMUNITIES.—For the purpose of 20 use i087u. 
this part, the term low-income commimities' means communities 
in wnich there is a high concentration of children eligible to be 
counted imder chapter 1 of title I of the Elementary and Secondary 
Education Act of 1965. 
"(b) HiGH-RiSK CHILDREN.—For the purposes of this part, the 
term liigh-risk children' means individuals under the age of 21 
who are low-income or at risk of abuse or neglect, have been 
abused or neglected, have serious emotional, mental, or behavioral 
disturbances, reside in placements outside their homes, or are 
involved in the juvenile justice system. 
"(c) INFANTS, TODDLERS, CHILDREN, AND YOUTH WITH DISABIL-
ITIES.—^For purposes of this part, the term Infante, toddlers, chil-
106 STAT. 684 
PUBLIC LAW 102-325-JULY 23, 1992 
dren, and youth with disabilities' means children with disabilities 
and infants and toddlers with disabilities as defined in sections 
602(a)(1) and 672(1), respectively, of the Individuals with Disabil-
ities Education Act, and the term 'qualified professional provider 
of early intervention services' has the meaning specified in section 
672(2) of such Act.". 
SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS. 
Section 466 of the Act (20 U.S.C. 1087ff) is amended— 
(1) in subsection (b), by striking "1997" and inserting "2005"; 
(2) in subsection (c)— 
(A) by striking "Upon" and inserting "(1) Upon"; 
(B) by redesignating paragraphs (1) and (2) as sub-
paragraphs (A) and (B), respectively; and 
(C) by adding at the end the following new pciragraph: 
"(2) No finding that the liquid sissets of a student loan fund 
established imder this part exceed the amount required imder 
paragraph (1) may be made prior to a date which is 2 years 
after the date on which the institution of higher education 
received the funds from such institution's allocation under sec-
tion 462.". 
SEC. 467. EXCESS CAPITAL RULE. 
(a) RECAPTURE OF CERTAIN LOAN FUNDS.—Section 467 of 
the 
20 use I087gg. 
Act is amended by adding at the end thereof the following new 
subsection: 
"(c) PERKINS LOAN REVOLVING FUND.—(1) There is established 
a Perkins Loan Revolving Fund which shall be available without 
fiscal year limitation to the Secretary to make payments under 
this part, in accordance with paragraph (2) of tins subsection. 
There shall be deposited in the Perkins Revolving Loan Fund— 
"(A) all funds collected by the Secretary on any loan referred, 
transferred, or assigned under paragraph (5)(A), (5)(BXi), or 
(6) of section 463(a); 
"(B) all funds collected by the Secretary on any loan referred 
under paragraph (5)(B)(ii) of section 463(a); 
"(C) all funds paid to the Secretary imder section 466(cXl)(A); 
"(D) all funds from a student loan fund under this part 
received by the Secretary as the result of the closure of an 
institution of 
higher education; 
"(E) all funds received by the Secretary as a result of an 
audit of a student loan fund established under this part; and 
"(F) all funds which have been appropriated and which the 
Secretary determines are not necessary for canning out section 
465, relating to the cancellation of certain loans under this 
part for qualifying service. 
"(2) Notwithstanding any other provision of law, the Secretary 
shall, from the Perkins Loan Revolving Fimd established under 
paragraph (1), pay allocations of additional capital contributions 
to eligible institutions of higher education in accordance with section 
462, except that funds described in subparagraph (B) of paragraph 
(1) shall be repaid to the institution of higher education which 
referred the loan, as specified in section 463(aX5)(B)(ii). The Sec-
retary shall make the pa3nnents required by this para^aph in 
a manner designed to maximize the availability of capital loan 
funds under this part.". 
(b) CONFORMING AMENDMENT.—The heading of section 467 of 
the Act is amended to read as follows: 
PUBLIC LAW 102-325—JULY 23, 1992 
"COLLECTION OF DEFAULTED LOANS: PERKINS LOAN REVOLVING 
FUND". 
SEC. 468. EFFECTIVE DATES FOR AMENDMENTS TO PART E. 
The changes made in part E of title IV of the Act by the amend-
ments made by this part shall take effect on the date of enactment 
of this Act, except that— 
(1) the changes in section 463(a)(2)(B), relating to the match-
ing of Federal capital contributions, shall apply to funds pro-
vided for such progreun for the aw£ird years beginning on or 
after July 1,1993; 
(2) the changes made in section 464(c)(1)(C), relating to mini-
mum monthly payments shall apply with respect to loans for 
which the first disbursement is made on or after October 1, 
1992, to an individual who, on the date the loan is made, 
has no outstanding balance of principal or interest owing on 
any loan made under part E of title IV of the Act; 
(3) the changes made in section 464(c)(2)(A), relating to 
deferments, shall apply with respect to loans for which the 
first disbursement is made on or after July 1,1993; and 
(4) the changes made in section 467, relating to the creation 
of a Perkins Loan Revolving Fund, shsdl take effect on Septem-
ber 15,1997. 
PART F—NEED ANALYSIS 
SEC. 471. REVISION OF PART F. 
(a) AMENDMENT.—Part F of title IV of the Act is amended to 
read as follows: 
"PART F—NEED ANALYSIS 
106 STAT. 585 
20 u s e 1087dd 
note. 
<«EC. 471. AMOUNT OF NEED. 
"Except as otherwise provided therein, the amoimt of need of 
any student for financial assistance under this title (except subparts 
1 or 4 of part A) is equal to— 
"(1) the cost of attendance of such student, minus 
"(2) the expected family contribution for such student, minus 
"(3) estimated financial assistance not received under this 
title (as defined in section 480(j)). 
<«EC. 472. COST OF ATTENDANCE. 
"For the purpose of this title, the term 'cost of attendance' 
means— 
"(1) tuition and fees normally assessed a student carrying 
the same academic workload as determined by the institution, 
and including costs for rental or purchase of any equipment, 
materials, or suppUes required of £ill students in the same 
course of study; 
"(2) an allowance for books, suppHes, transportation, and 
miscellaneous personal expenses for a student attending the 
institution on at least a half-time basis, as determined by 
the institution; 
"(3) an allowance (as determined by the institution) for room 
and board costs incurred by the student which— 
20 u s e 1087kk. 
20 u s e 1087//. 
106 STAT. 586 
PUBLIC LAW 102-325—JULY 23, 1992 
"(A) shall be an allowance of not less than $1,500 for 
a student without dependents residing at home with par-
ents; 
"(B) for students without dependents residing in institu-
i 
tionally owned or operated housing, shall be a standeird 
allowance determined by the institution based on the 
amount normally assessed most of its residents for room 
and board; and 
"(C) for all other students shall be an allowance based 
on the expenses reasonably incurred by such students for 
room and board, except that the amount may not be less 
than $2,500; 
"(4) for less than half-time students (as determined by the 
institution) tuition and fees and an allowance for only books, 
supplies, and transportation (as determined by the institution) 
and dependent ceire expenses (in accordance with paragraph 
V 
(8)): 
"(5) for a student engaged in a program of study by cor-
respondence, only tuition and fees and, if required, books and 
supplies, travel, and room and board costs incurred specifically 
in falfilling a required period of residential training; 
"(6) for inc£ircerated students only tuition £ind fees and, if 
required, books and supphes; 
(7) for a student enrolled in an academic program in a 
E
rogram of study abroad approved for credit by the student's 
ome institution, reasonable costs associated with such study 
(as determined by the institution at which such student is 
enrolled); 
"(8) for a student with one or more dependents, an allowance 
based on the estimated actual expenses incurred for such 
dependent care, based on the number and age of such depend-
ents, except that— 
"(A) such allowance shall not exceed the reasonable cost 
_ 
, 
in the community in which such student resides for the 
kind of care provided; and 
"(B) the period for which dependent care is required 
includes, but is not limited to, class-time, study-time, field 
work, internships, and commuting time; 
"(9) for a student with a disability, an allowance (as deter-
mined by the institution) for those expenses related to the 
student's disability, including special services, personal assist-
ance, transportation, equipment, and supplies that are reason-
ably incurred and not provided for by other assisting agencies; 
"(10) for a student receiving all or part of the student's 
instruction by means of telecommimications technology, no dis-
tinction shall be made with respect to the mode of instruction 
in determining costs, but this paragraph shall not be construed 
to permit including the cost of rental or purchase of equipment; 
and 
"(11) for a student placed in a work experience under a 
cooperative education progreun, an allowance for reasonable 
costs associated with such employment (as determined by the 
institution). 
20 use 1087mm. «SEC. 473. FAMILY CONTRTOUTION. 
"For the purpose of this title, except subpart 4 of part A, the 
term family contribution' with respect to £iny student means the 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 587 
amount which the student and the student's family may be reason-
ably ejected to contribute toward the student's postsecondary edu-
cation for the academic year for which the determination is made, 
as determined in accordance with this part. 
"SEC. 474. DETERMINATION OF EXPECTED FAMILY CONTRIBUTION; 
20 USC 1087nn. 
DATA ELEMENTS. 
"(a) GENERAL RULE FOR DETERMINATION OF EXPECTED FAMILY 
CONTRIBUTION.—^The expected family contribution— 
"(1) for a dependent student shsdl be determined in accord-
ance with section 475; 
"(2) for a single independent student or a married independ-
ent student without dependents (other than a spouse) shall 
be determined in accordance with section 476; and 
"(3) for an independent student with dependents other than 
a spouse shaU be determined in accordance with section 477. 
"(b) DATA ELEMENTS.—^The following data elements are considered 
in determining the expected family contribution: 
"(1) the available income of (A) the student and the student's 
spouse, or (B) the student and the student's parents, in the 
case of a dependent student; 
"(2) the nimiber of dependents in the family of the student; 
"(3) the number of dependents in the family of the student 
who are enrolled or accepted for enrollment, on at least a 
half-time basis, in a degree, certificate, or other program leading 
to a recognized educational credential at an institution of higher 
education that is an eligible institution in accordance with 
the provisions of section 487 and for whom the family may 
reasonably be expected to contribute to their postsecondary 
education; 
"(4) the net assets of (A) the student and the student's spouse, 
and (B) the student and the student's parents, in the case 
of a dependent student; 
"(5) the marital status of the student; 
"(6) the age of the older parent, in the case of a dependent 
student, and the student; and 
"(7) the additional expenses incurred (A) in the case of a 
dependent student, when both parents of the student are 
employed or when the family is headed by a single parent 
who is employed, or (B) in the case of an independent student, 
when the student is married and the student's spouse is 
employed, or when the employed student qualifies as a surviv-
ing spouse or as a head of a household under section 2 of 
the Internal Revenue Code of 1986. 
"SEC. 475. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS. 
20 USC 1087oo. 
"(a) 
COMPUTATION OF EXPECTED FAMILY CONTRIBUTION.—For 
each dependent student, the expected family contribution is equal 
to the simi o
f
— 
"(1) the pgirents' contribution from adjusted available income 
(determined in accordance with subsection (b)); 
"(2) the student contribution from available income (deter-
mined in accordance with subsection (g)); and 
"(3) the student contribution from assets (determined in 
accordance with subsection (h)). 
"(b) 
PARENTS' 
CONTRIBUTION 
FROM 
ADJUSTED AVAILABLE 
INCOME.—The parents' contribution from adjusted available income 
is equal to the amount determined by— 
106 STAT. 588 
PUBLIC LAW 102-325—JULY 23, 1992 
**(1) computing adjusted available income by adding— 
"(A) the parents' available income (determined in accord-
since with subsection (c)); and 
"(B) the parents' contribution from assets (determined 
in accordance with subsection (d)); 
"(2) assessing such adjusted available income in accordance 
with the assessment schedule set forth in subsection (e); and 
"(3) dividing the assessment resulting under paragraph (2) 
by the number of the family members who are enrolled or 
accepted for enrollment, on at least a half-time basis, in a 
degree, certificate, or other program leading to a recognized 
educationsil credential at an institution of higher education 
that is an eligible institution in accordance with the provisions 
of section 487 during the award period for which assistance 
under this title is requested; 
except that the amount determined under this subsection shall 
not be less than zero. 
"(c) PARENTS'AVAILABLE INCOME.— 
"(1) IN GENERAL.—The parents' available income is deter-
mined by deducting from total income (as defined in section 
480)— 
"(A) Federsd income taxes; 
"(B) an allowance for State and other taxes, determined 
in accordance with paragraph (2); 
"(C) an allowance for social security taxes, determined 
in accordance with paragraph (3); 
"(D) an income protection allowance, determined in 
accordance with paragraph (4); and 
"(E) an employment expense allowance, determined in 
accordance with paragraph (5). 
"(2) ALLOWANCE FOR S
T
A
T
E A
N
D O
T
H
E
R TAXES.—The allowance 
for State and other taxes is equal to an amount determined 
by multiplying total income (as defined in section 480) by 
a percentage determined according to the following table (or 
a successor table prescribed by the Secretary under section 
478): 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 589 
Tercentages for Computation of State and Other Tax Allowance 
If parents' State or territory of residence is— 
And parents' total 
income is— 
less 
than 
$15,000 
$15,000 
or more 
or 
then the percentage it 
Alaska, Puerto Rico, Wyoming 
3 
Americ£Ui Samoa, Guam, Louisiana, Nevada, Texas, Trust 
Territory, Virgin Islands 
4 
Florida, South Dakota, Tennessee, New Mexico 
5 
North Dakota, Washington 
6 
Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, 
Montana, New Hampshire, Oklahoma, West Virginia 
7 
Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky .... 
8 
California, Delaware, Idaho, Iowa, Nebraska, North Carolina, 
Ohio, Pennsylvania, South Carolina, Utah, Vermont, Vir-
ginia, Canada, Mexico 
9 
Maine, New Jersey 
10 
District of Columbia, Hawaii, Maryland, Massachusetts, Or-
egon, Rhode Island 
11 
Michigan, Minnesota 
12 
Wisconsin 
13 
New York 
14 
Other 
9 
8 
9 
10 
11 
12 
13 
8 
"(3) ALLOWANCE FOR SOCIAL SECURITY TAXES.—The allowance 
for social security taxes is equal to the eunount earned by 
each parent multiplied by the social security withholding rate 
appropriate to the tax year of the earnings, up to the maximum 
statutory social security tax withholding amornit for that same 
tax year. 
"(4) INCOME PROTECTION ALLOWANCE.—The income protection 
allowance is determined by the following table (or a successor 
table prescribed by the Secretary under section 478): 
"Income Protection Allowance 
Family 
Size 
(including 
student) 
2 
3 
4 
5 
6 
For each 
additional 
add: 
1 
$10,520 
13,100 
16,180 
19,090 
22,330 
2,520 
2 
$8,720 
11,310 
14,380 
17,290 
20,530 
2,520 
Number in 
3 
9,510 
12,590 
15,500 
18,740 
2,520 
College 
4 
$10,790 
13,700 
16,940 
2,520 
6 
$11,910 
15,150 
2,520 
For each 
addi-
tional 
subtract: 
$1,790 
106 STAT. 590 
PUBLIC LAW 102-325—JULY 23, 1992 
"(5) EMPLOYMENT EXPENSE ALLOWANCE.—The employment 
expense allowance is determined as follows (or using a successor 
provision prescribed by the Secretary under section 478): 
"(A) If both parents were employed in the year for which 
their income is reported and both have their incomes 
reported in determining the expected family contribution, 
such allowance is equal to the lesser of $2,500 or 35 percent 
of the earned income of the parent witii the lesser earned 
income. 
"(B) If a parent qualifies as a surviving spouse or as 
a head of household as defined in section 2 of the Internal 
Revenue Code, such allowance is equal to the lesser of 
$2,500 or 35 percent of such parent's earned income. 
"(d) PARENTS'CONTRIBUTION FROM ASSETS.— 
"(1) IN GENERAL.—^The parents* contribution from assets is 
equal to— 
"(A) the parental net worth (determined in accordance 
with paragraph (2)); minus 
"(B) the education savings and asset protection allowance 
(determined in accordance with paragraph (3)); multiplied 
by 
"(C) the asset conversion rate (determined in accordance 
with paragraph (4)), except that the result shall not be 
less than zero. 
"(2) PARENTAL NET WORTH.—The parental net worth is cal-
culated by adding— 
"(A) the current balance of checking and savings accoimts 
and cash on hand; 
"(B) the net value of investments and real estate, exclud-
ing the net value of the principal place of residence; and 
"(C) the adjusted net worth of a business or farm, com-
puted on the basis of the net worth of such business or 
farm (hereafter in this subsection referred to as *NW), 
determined in accordance with the following table (or a 
successor table prescribed by the Secretary under section 
478), except as provided imder section 480(f): 
"A4iti8ted Net Worth of a Business or Farm 
If the net worth ofa_bu8iness or farm 
Then the adjusted net worth is: 
Less than $1 
$0 
$l-$75,000 
40 percent of NW 
$75,001-$225,000 
$30,000 plus 50 percent of NW over 
$75,000 
$225,001-$375,000 
$105,000 plus 60 percent of NW over 
$225,000 
$375,001 or more 
$195,000 plus 100 percent of NW over 
$375,000 
"(3) 
EDUCATION SAVINGS AND ASSET PROTECTION ALLOW-
ANCE.—^The education savings and asset protection allowance 
is calculated according to the following table (or a successor 
table prescribed by the Secretary imder section 478): 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 591 
"Education Savings and Asset Protection Allowances for Ffimilies and Students 
And there are 
If the age of the oldest parent is— 
two 
^^^ 
then the allowance is— 
25 or less 
$ 0 
$0 
26 
2,200 
1,600 
27 
4,300 
3,200 
28 
6,500 
4,700 
29 
8,600 
6,300 
30 
10,800 
7,900 
31 
13,000 
9,500 
32 
15,100 
11,100 
33 
17,300 
12,600 
34 
19,400 
14,200 
35 
21,600 
15,800 
36 
23,800 
17,400 
37 
25,900 
19,000 
38 
28,100 
20,500 
39 
30,200 
22,100 
40 
32,400 
23,700 
41 
33,300 
24,100 
42 
34,100 
24,700 
43 
35,000 
25,200 
44 
35,700 
25,800 
45 
36,600 
26,300 
46 
37,600 
26,900 
47 
38,800 
27,600 
48 
39,800 
28,200 
49 
40,800 
28,800 
50 
41,800 
29,500 
51 
43,200 
30,200 
62 
44,300 
31,100 
53 
45,700 
31,800 
54 
47,100 
32,600 
55 
48,300 
33,400 
56 
49,800 
34,400 
57 
51,300 
35,200 
58 
52,900 
36,200 
59 
54,800 
37,200 
60 
56,500 
38,100 
61 
58,500 
39,200 
62 
60,300 
40,300 
63 
62,400 
41,500 
64 
64,600 
42,800 
65 or more 
66,800 
44,000 
"(4) ASSET CONVERSION RATE.—^The asset conversion rate is 
12 percent. 
"(e) ASSESSMENT SCHEDULE.—^The adjusted available income (as 
determined under subsection (bXl) and hereafter in this subsection 
referred to as 'AAI') is assessed according to the following table 
(or a successor table prescribed by the Secretary under section 
478): 
106 STAT. 592 
PUBLIC LAW 102-325—JULY 23, 1992 
'Parents'Assessment From Adjusted Available Income (AAI) 
If AAI is— 
Then the assessment is— 
Less than-$3,409 
-$750 
-$3,409 to $9,400 
22% of AAI 
$9,401 to $11,800 
$2,068 + 25% of AAI over $9,400 
$11,801 to $14,200 
$2,668 + 29% of AAI over $11,800 
$14,201 to $16,600 
$3,364 +34% ofAAI over $14,200 
$16,601 to $19,000 
$4,180 + 40% of AAI over $16,600 
$19,001 or more 
$5,140 + 47% of AAI over $19,000 
"(f) 
COMPUTATIONS 
IN 
CASE 
OP 
SEPARATION, 
DIVORCE, 
REMARRIAGE, OR DEATH.— 
"(1) DIVORCED OR SEPARATED PARENTS.—Parental income and 
assets for a student whose parents are divorced or separated 
is determined under the following procedures: 
"(A) Include only the income and assets of the parent 
with whom the student resided for the greater portion 
of the 12-month period preceding the date of the applica-
tion. 
"(B) If the preceding criterion does not apply, include 
• 
only the income and assets of the parent who provided 
the greater portion of the student's support for the 12-
montii period preceding the date of appUcation. 
"(C) If neither of tne preceding criteria apply, include 
only the income and assets of the parent who provided 
the greater support during the most recent calendar year 
for which parental support was provided. 
"(2) DEATH OF A PARENT.—Parental income and assets in 
the case of the death of any parent is determined as follows: 
"(A) If either of the parents has died, the student shall 
include only the income and assets of the surviving parent. 
"(B) If both parents have died, the student shall not 
report any parental income or assets. 
"(3) REMARRIED PARENTS.—Income in the case of a parent 
whose income and assets are taken into account under para-
graph (1) of this subsection, or a parent who is a widow or 
widi)wer and whose income is taken into account under para-
graph (2) of this subsection, has remarried, is determined as 
follows: The income of that parent's spouse shall be included 
in determining the parent's adjusted available income only 
if— 
"(A) the student's parent and the stepparent are married 
as of the date of application for the award year concerned; 
and 
"(B) the student is not an independent student. 
"(g) STUDENT CONTRIBUTION FROM AVAILABLE INCOME.— 
"(1) IN GENERAL.—The student contribution from available 
income is equal t o ^ 
"(A) the student's total income (determined in accordance 
with section 480); minus 
"(B) the acljustment to student income (determined in 
accordance with paragraph (2); multipUed by 
"(C) the assessment rate as determined in paragraph 
(5); 
except that the amount determined iinder this subsection shall 
not be less than zero. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 593 
**(2) ADJUSTMENT TO STUDENT INCOME.—The adjustment to 
student income is equal to the sum o
f
— 
"(A) Federal income taxes of 
title 
student; 
**(B) an allowance for State and other income taxes (deter-
mined in accordance with paragraph (3)); 
"(C) an allowance for social security taxes determined 
in accordance with paragraph (4); and 
"(D) an income protection allowance of $1,750. 
"(3) ALLOWANCE FOR STATE AND OTHER INCOME TAXES.—The 
allowEuice for State and other income taxes is equal to an 
amount determined by mxiltipljdng total income (as defined 
in section 480) by a percentage determined according to the 
following table (or a successor teble prescribed by the Secretary 
under section 478): 
"Percentages for Computation of State and Other Tax Allowance 
The per-
If the students' State or territory of residence is— 
centage 
is— 
Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Ten-
nessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming 
0 
Connecticut, Louisiana, Puerto Rico 
1 
Arizona, New Hampshire, New Mexico, North Dakota 
2 
Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, 
Montana, Nebraska, New Jersey, Oklahoma 
3 
Arkansas, Georgia, Iowa, Kentudcy, Maine, Pennsylvania, Utah, Ver-
mont, Virginia, West Virginia, Canada, Mexico 
4 
California, Idaho, Mfussachusetts, North Carolina, Ohio, Rhode Island, 
South CaroUna 
5 
Hawaii, Maryland, Michigan, Wisconsin 
6 
Delaware, District of Coltunbia, Minnesota, Oregon 
7 
New York 
8 
"(4) ALLOWANCE FOR SOCIAL SECURITY TAXES.—The allowance 
for social security taxes is equal to the amount earned by 
the student multipUed by the social security withholding rate 
appropriate to the t£ix year of the earnings, up to the maximum 
statutory social security tax withholding amount for that same 
tax year. 
"(5) The student's available income (determined in accordance 
with paragraph (1) of this subsection) is assessed at 50 percent. 
"(h) STUDENT CONTRIBUTION FROM ASSETS.—The student con-
tribution fi*om assets is determined by calculating the net assets 
of the student and multiplying such amoimt by 35 percent, except 
that the result shall not be less th£in zero. 
"(i) ADJUSTMENTS TO PARENTS' CONTRIBUTION FOR ENROLLMENT 
PERIODS OTHER THAN 9 MONTHS FOR PURPOSES OTHER THAN SUB-
PART 2 OF PART A OF THIS TITLE.—For periods of enrollment other 
than 9 months, the parents' contribution fi*om adjusted available 
income (as determined imder subsection (b)) is determined as fol-
lows for purposes other than subpart 2 of part A of this title: 
"(1) For periods of enrollment less than 9 months, the parents' 
contribution from adjusted available income is divided by 9 
and the result multiplied by the number of months enrolled. 
"(2) For periods of enrollment greater than 9 months— 
106 STAT. 594 
PUBLIC LAW 102-325—JULY 23, 1992 
"(A) the parents' adjusted available income (determined 
in accordance with subsection (b)(1)) is increased by the 
difference between the income protection allowance (deter-
mined in accordance with subsection (c)(4)) for a family 
of four £ind a family of five, each with one child in college; 
"(B) the resulting revised parents' adjusted available 
income is assessed according to subsection (e) and adjusted 
according to subsection (b)(3) to determine a revised par-
ents' contribution from adjusted available income; 
"(C) the original parents' contribution fi*om adjusted 
available income is subtracted from the revised parents' 
contribution fi'om adjusted available income, and the result 
is divided by 12 to determine the monthly adjustment 
amount; and 
"(D) the original parents' contribution fi*om adjusted 
available income is increased by the product of the monthly 
adjustment amount multiplied by the number of months 
greater than 9 for which the student will be enrolled. 
20 use 1087pp. 
"SEC. 476. FAMILY CONTRmUTION FOR INDEPENDENT STUDENTS 
WITHOUT DEPENDENTS OTHER THAN A SPOUSE. 
"(a) 
COMPUTATION OF EXPECTED FAMILY CONTRIBUTION.—For 
each independent student without dependents other than a spouse, 
the expected family contribution is determined by— 
"(1) adding— 
"(A) the famil5^s contribution from available income 
(determined in accordance with subsection (b)); and 
"(B) the famil3r's contribution fi^om assets (determined 
in accordance wim subsection (c)); and 
"(2) dividing the stun resulting xinder paragraph (1) by the 
number of students who are enrolled or accepted for enrollment, 
on at least a half-time basis, in a degree, certificate, or otiier 
program leading to a recognized educational credential at an 
institution of higher education that is an eUgible institution 
in accordance with the provisions of section 487 during the 
award period for which assistance under this title is requested; 
except that the amount determined imder this subsection shall 
not be less than zero. 
"(b) FAMILY'S CONTRIBUTION FROM AVAILABLE INCOME.— 
"(1) IN GENERAL.—The familj^s contribution fi*om income is 
determined by— 
"(A) deducting fi*om total income (as defined in section 
480)— 
"(i) Federal income taxes; 
"(ii) an allowance for State and other taxes, deter-
mined in accordance with paragraph (2); 
"(iii) an allowance for social security taxes, deter-
mined in accordance with paragraph (3); 
"(iv) an income protection allowance o
f
— 
"(I) $3,000 for single students; 
"(II) $3,000 for married students where both are 
enrolled pursuant to subsection (aX2); and 
"(III) $6,000 for married students where one is 
enrolled pursuant to subsection (a)(2); and 
"(v) in the case where a spouse is i)resent, an employ-
ment expense allowance, as determined in accordance 
with paragraph (4); and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 595 
"(B) assessing such available income in accordance with 
paragraph (5). 
"(2) ALLOWANCE FOR STATE AND OTHER TAXES.—The allowance 
for State and other taxes is equal to an amount determined 
by multipl5dng total income (as defined in section 480) by 
a percentage determined according to the following table (or 
a successor table prescribed by the Secretary imaer section 
478): 
'Tercentages for Computation of State and Other Tax Allowance 
The per-
If the students' State or territory of residence is— 
centage 
is— 
Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Ten-
nessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming 
0 
Connecticut, Louisiana, Puerto Rico 
1 
Arizona, New Hampshire, New Mexico, North Dakota 
2 
Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, 
Montana, Nebraska, New Jersey, Oklahoma 
3 
Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Ver-
mont, Virginia, West Virginia, Canada, Mexico 
4 
California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, 
South CaroUna 
5 
Hawaii, Maryland, Michigan, Wisconsin 
6 
Delaware, District of Columbia, Minnesota, Oregon 
7 
New York 
8 
Other 
4 
"(3) ALLOWANCE FOR SOCIAL SECURITY TAXES.—The allowance 
for social security taxes is equal to the amount earned by 
the student (and spouse, if appropriate), multiplied by the 
social security withholding rate appropriate to the tax year 
preceding t^he award year, up to the maximum statutory social 
security ta^ withholding amount for that same tax year. 
**(4) EMPLOYMENT EXPENSES ALLOWANCE.—The employment 
expense allowance is determined as follows (or using a successor 
provision prescribed by the Secretary imder section 478): 
"(A) If the student is married and the student's spouse 
is employed in the year for which income is reported, 
such mlowance is equal to the lesser of $2,500 or 35 percent 
of the earned income of the student or spouse with the 
lesser earned income. 
"(B) If a student is not married, the emplo3mient e3q)ense 
allowance is zero. 
"(5) ASSESSMENT OF AVAILABLE INCOME.—The family's avail-
able income (determined in accordance with paragraph (1)(A) 
of this subsection) is assessed at 50 percent. 
"(c) FAMILY CONTRIBUTION FROM ASSETS.— 
"(1) IN GENERAL.—The famU/s contribution fix)m assets is 
equal to— 
"(A) the family's net worth (determined in accordance 
with paragraph (2)); minus 
"(B) the asset protection allowance (determined in accord-
ance with p£iragraph (3)); multiplied by 
"(C) the asset conversion rate (determined in accordance 
with paragraph (4)); 
106 STAT. 596 
PUBLIC LAW 102-325—JULY 23, 1992 
• ;' except that the family's contribution from assets shall not be 
less than zero. 
"(2) FAMILY'S NET WORTH.—The family's net worth is cal-
culated by adding— 
"(A) the current balance of checking and savings accounts 
£ind cash on hsind; 
"(B) the net value of investments £ind real estate, exclud-
ing the net value in the principal place of residence; and 
"(C) the adjusted net worth of a business or farm, com-
puted on the basis of the net worth of such business or 
farm (hereafter referred to as *NW), determined in accord-
ance with the following table (or a successor table pre-
scribed by the Secretary imder section 478), except as 
provided imder section 480(f): 
''Adjusted Net Worth of a Business or Farm 
If the net worth ofa_bu8ines8 or farm 
^hen the adjusted net worth i ^ 
Less than $1 
$0 
$l-$75,000 
40 percent of NW 
$75,001-$225,000 
$30,000 plus 50 percent of NW over 
$75,000 
$225,001-$375,000 
$105,000 plus 60 percent of NW over 
$225,000 
$375,001 or more 
$195,000 plus 100 percent of NW over 
$375,000 
"(3) ASSET PROTECTION ALLOWANCE.—The asset protection 
allowance is calculated according to the following table (or 
a successor table prescribed by the Secretary under section 
478): 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 597 
''Asset Protection Allowances for Families and Students 
And the student is 
If the age of the student is— 
married 
single 
then the allowance is— 
25 or less 
$ 
0 
$0 
26 
2,200 
1,600 
27 
4,300 
3,200 
28 
6,500 
4,700 
29 
8,600 
6,300 
30 
10,800 
7,900 
31 
13,000 
9,500 
32 
15,100 
11,100 
33 
17,300 
12,600 
34 
19,400 
14,200 
35 
21,600 
15,800 
36 
23,800 
17,400 
37 
25,900 
19,000 
38 
28,100 
20,500 
39 
30,200 
22,100 
40 
32,400 
23,700 
41 
33,300 
24,100 
42 
34,100 
24,700 
43 
35,000 
25,200 
44 
35,700 
25,800 
45 
36,600 
26,300 
46 
37,600 
26,900 
47 
38,800 
27,600 
48 
39,800 
28,200 
49 
40,800 
28,800 
50 
41,800 
29,500 
51 
43,200 
30,200 
52 
44,300 
31,100 
53 
45,700 
31,800 
54 
47,100 
32,600 
55 
48,300 
33,400 
56 
49,800 
34,400 
57 
51,300 
35,200 
58 
52,900 
36,200 
59 
54,800 
37,200 
60 
56,500 
38,100 
61 
58,500 
39,200 
62 
60,300 
40,300 
63 
62,400 
41,500 
64 
64,600 
42,800 
65 or more 
66,800 
44,000 
"(4) ASSET CONVERSION RATE.—^The asset conversion rate is 
35 percent. 
"SEC. 477. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS 
20 USC1087gg. 
WITH DEPENDENTS OTHER THAN A SPOUSE. 
"(a) 
COMPUTATION OF EXPECTED FAMILY CONTRIBUTION.—For 
each independent student with dependents other than a spouse, 
the expected family contribution is equal to the amount determined 
by— 
"(1) computing adjusted available income by adding— 
106 STAT. 598 
PUBLIC LAW 102-325—JULY 23, 1992 
"(A) the family's avsiilable income (determined in accord-
ance with subsection (b)); and 
"(B) the family's contribution from sissets (determined 
in accordance with subsection (c)); 
"(2) assessing such adjusted available income in accordance 
with an assessment schedule set forth in subsection (d); and 
"(3) dividing the assessment resulting under paragraph (2) 
by the number of family members who are enrolled or accepted 
for enrollment, on at least a half-time basis, in a degree, cer-
tificate, or other program leading to a recognized educational 
credential at an institution of higher education that is an 
eligible institution in accordance with the provisions of section 
487 during the award period for which assistance xinder this 
title is requested; 
except that the amount determined under this subsection shall 
not be less than zero. 
"(b) FAMILY'S AVAILABLE INCOME.— 
"(1) IN GENERAL.—^The family's available income is deter-
mined by deducting from total income (as defined in section 
480)— 
"(A) Federal income taxes; 
"(B) an allowance for State and other taxes, determined 
in accordance with paragraph (2); 
"(C) an gdlowance for social security taxes, determined 
in accordance with paragraph (3); 
"(D) an income protection allowance, determined in 
accordance with paragraph (4); and 
"(E) an employment expense allowance, determined in 
accordance with paragraph (5). 
"(2) ALLOWANCE FOR STATE AND OTHER TAXES.—The allowance 
for State and other taxes is equal to an amount determined 
by multiplying total income (as defined in section 480) by 
a percentage determined according to the following table (or 
a successor table prescribed by the Secretary under section 
478): 
PUBLIC LAW 102-325—JULY 23, 1992 
"Percentages for Computation of State and Other Tax Allowance 
106 STAT. 599 
If student's State or territory of residence is— 
And famil/s total 
income is— 
less than 
$15,000 
$15,000 
or more 
then the percentage is— 
Alaska, Puerto Rico, Wyoming 
American Samoa, Guam, Louisiana, Nevada, Texas, Trust 
Territory, Virgin Islands 
Florida, South Dakota, Tennessee, New Mexico 
North Dakota, Washington 
Alabama, Arizona, Arkansas, Indiana, Mississippi, Mis-
souri, Montana, New Hampshire, Oklahoma, West Vir-
ginia 
Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky . 
California, Delaware, Idaho, Iowa, Nebraska, North Caro-
lina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, 
Virginia, Canada, Mexico 
Maine, New Jersey 
District of Columbia, Hawaii, Maryland, Massachusetts, 
Oregon, Rhode Island 
Michigan, Minnesota 
Wisconsin 
New York 
Other 
"(3) A
L
L
O
W
A
N
C
E FOR S
O
C
L
V
L SECURITY TAXES.—The allowance 
for social security taxes is equal to the amount estimated to 
be earned by the student (and spouse, if appropriate) multipUed 
by the social security withholding rate appropriate to the tax 
year preceding the award year, up to the maximum statutory 
social security tax withholding amount for that same tax year. 
"(4) INCOME PROTECTION ALLOWANCE.—The income protection 
allowance is determined by the following table (or a successor 
table prescribed by the Secretary under section 478): 
"Income Protection Allowance 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
9 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
8 
Family 
Size 
(including 
student) 
2 
3 
4 
5 
6 
For each 
additional 
add: 
1 
$10,520 
13,100 
16,180 
19,090 
22,330 
2,520 
2 
$8,720 
11,310 
14,380 
17,290 
20,530 
2,520 
Number in 
3 
9,510 
12,590 
15,500 
18,740 
2,520 
College 
4 
$10,790 
13,700 
16,940 
2,520 
5 
$11,910 
15,150 
2,520 
For each 
addi-
tional 
subtract: 
$1,790 
106 STAT. 600 
PUBLIC LAW 102-325—JULY 23, 1992 
"(5) EMPLOYMENT EXPENSE ALLOWANCE.—The employment 
e^ense allowance is determined as follows (or a successor 
table prescribed by the Secretary under section 478): 
"(A) If the student is married and the student's spouse 
is employed in the year for which their income is reported, 
such allowance is equal to the lesser of $2,500 or 35 percent 
of the earned income of the student or spouse with the 
lesser earned income. 
"(B) If a student qualifies as a surviving spouse or as 
a head of household as defined in section 2 of the Internal 
' 
Revenue Code, such allowance is equal to the lesser of 
$2,500 or 35 percent of the student's earned income. 
"(c) FAMILY'S CONTRIBUTION FROM ASSETS.— 
"(1) IN GENERAL.—^The famil5r's contribution from assets is 
equal to— 
"(A) the family net worth (determined in accordance with 
paragraph (2)); minus 
"(B) the asset protection allowance (determined in accord-
ance with paragraph (3)); multipUed by 
"(C) the asset conversion rate (determined in accordance 
with paragraph (4)), except that the result shall not be 
less than zero. 
"(2) FAMILY NET WORT^.—The family net worth is calculated 
by adding— 
"(A) the current balance of checking and savings accounts 
and cash on hand; 
\. 
"(B) the net value of investments and real estate, exclud-
ing the net value in the principsu^lace of residence; and 
(C) the adjusted net worth of a business or farm, com-
puted on the basis of the net worth of such business or 
farm (hereafter referred to as 'NW), determined in accord-
ance with the following table (or a successor table pre-
scribed by the i^ecretary imder section 478), except £is 
provided under section 480(f): 
"Adjusted Net Worth of a Business or Farm 
If^e net worth ofa_business or farm 
Then the adjusted net worth i s -
Less than $1 
$0 
$l-$75,000 
40 percent of NW 
$75,001-$225,000 
$30,000 plus 50 percent of NW over 
$75,000 
$225,001-$375,000 
$105,000 plus 60 percent of NW over 
$225,000 
$375,001 or more 
$195,000 plus 100 percent of NW over 
$375,000 
"(3) ASSET PROTECTION ALLOWANCE.—The asset protectibn^ 
allowance is calculated according to the following table (or 
a successor table prescribed by the Secretary under section 
478): 
PUBLIC LAW 102-325-JULY 23,1992 
106 STAT. 601 
"Asset Protection Allowances for Families and Students 
And the student is 
If the age of the student is— 
married 
single 
then the allowance is 
25 or less 
„ 
$ 0 
$0 
26 
2,200 
1,600 
27 
4,300 
3,200 
28 
6,500 
4,700 
29 
8,600 
6,300 
30 
10,800 
7,900 
31 
13,000 
9,500 
32 
15,100 
11,100 
33 
17,300 
12,600 
34 
19,400 
14,200 
35 
21,600 
15,800 
36 
23,800 
17,400 
37 
25,900 
19,000 
38 
28,100 
20,500 
39 
30,200 
22,100 
40 
32,400 
23,700 
41 
33,300 
24,100 
42 
34,100 
24,700 
43 
35,000 
25,200 
44 
35,700 
25,800 
45 
36,600 
26,300 
46 
37,600 
26,900 
47 
38,800 
27,600 
48 
39,800 
28,200 
49 
40,800 
28,800 
50 
41,800 
29,500 
51 
43,200 
30,200 
52 
44,300 
31,100 
53 
45,700 
31,800 
54 
47,100 
32,600 
55 
48,300 
33,400 
56 
49,800 
34,400 
57 
51,300 
35,200 
58 
52,900 
36,200 
59 
54,800 
37,200 
60 
56,500 
38,100 
61 
58,500 
39,200 
62 
60,300 
40,300 
63 
62,400 
41,500 
64 
64,600 
42,800 
65 or more 
66,800 
44,000 
"(4) ASSET CONVERSION RATE.—^The asset conversion rate is 
12 percent. 
"(d) ASSESSMENT SCHEDULE.—The adjusted available income (as 
determined under subsection (a)(1) and hereafter referred to as 
'AAIO is assessed according to the following table (or a successor 
table prescribed by the Secretary under section 478): 
106 STAT. 602 
PUBLIC LAW 102-325—JULY 23, 1992 
"Assessment From Ac^usted Available Income (AAI) 
If AAI is— 
Then the assessment is— 
Less than -$3,409 
-$750 
-$3,409 to $9,400 
22% of AAI 
$9,401 to $11,800 
$2,068 + 25% of AAI over $9,400 
$11,801 to $14,200 
$2,668 + 29% of AAI over $11,800 
$14,201 to $16,600 
$3,364 + 34% of AAI over $14,200 
$16,601 to $19,000 
$4,180 + 40% of AAI over $16,600 
$19,001 or more 
$5,140 + 47% of AAI over $19,000 
Federal 
«SEC. 478. REGULATIONS; UPDATED TABLES. 
^SiStion. 
"(a) AUTHORITY TO PRESCRIBE REGULATIONS RESTRICTED.—(1) 
20 use lOSTrr. 
Notwithstanding any other provision of law, the Secretary shall 
not have the authority to prescribe regulations to carry out this 
part except— 
"(A) to prescribe updated tables in accordance with sub-
sections (b) through (h) of this section; or 
"(B) to propose modifications in the need analysis methodol-
ogy required by this part. 
"(2) Any regulation proposed by the Secretary that (A) updates 
tables in a meinner tnat does not comply with subsections (b) 
through (h) of this section, or (B) that proposes modifications under 
paragraph (1)(B) of this subsection, shaU not be effective imless 
approved by joint resolution of the Congress by May 1 following 
the date such regulations are pubHshed in the Federal Register 
in accordance with section 482. If the Congress fails to approve 
such regulations by such May 1, the Secretary shall publish in 
the Federad Register in accordance with section 482 updated tables 
for the appUcable award year that are prescribed in accordance 
with subsections (b) through (h) of this section. 
"(b) INCOME PROTECTION ALLOWANCE.—For each academic year 
after academic year 1992-1993, the Secretary shall publish in the 
Federal Register a revised table of income protection allowances 
for the purpose of sections 475(c)(4) and 477(b)(4). Such revised 
table shaU be developed by increasing each of the dollar amounts 
contained in the table in each such section h
y
^ a percentage equal 
to the estimated percentage increase in the Consumer Price Index 
(as determined by the Secretary) between December 1992 and the 
December next preceding the beginning of such academic year, 
and rounding the result to the nearest $10. 
"(c) ADJUSTED NET WORTH OF A FARM OR BusiNESS.—For each 
award year after award year 1992-1993, the Secretary shall publish 
in the Federal Register a revised table of adjusted net worth of 
a farm or business for purposes of sections 475(a)(2)(C), 476(cX2)(C), 
and 477(cX2)(C). Such revised table shall be developed— 
"(1) by increasing each dollar amount that refers to net 
worth or a farm or business by a percentage equal to the 
estimated percentage increase in the Consumer Price Index 
(as determined by the Secretary) between 1992 and the Decem-
ber next precedmg the beginning of such award year, and 
rounding tne result to the nearest $5,000; and 
"(2) by adjusting the dollar amounts '$30,000*, '$105,000', 
and '$195,000' to reflect the changes made pursuant to para-
graph (1). 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 603 
"(d) EDUCATION SAVINGS AND ASSET PROTECTION ALLOWANCE.— 
For each award year after award year 1992-1993, the Secretary 
shall pubUsh in tiie Federal Register a revised table of allowances 
for the purpose of sections 475(d)(3), 476(c)(3), and 477(c)(3). Such 
revised table shall be developed by determining the present value 
cost, rounded to the nearest $100, of an annuity that would provide, 
for each age cohort of 40 and above, a supplemental income at 
age 65 (adjusted for inflation) equal to the difference between 
the moderate family income (as most recently determined by the 
Biu'eau of Labor Statistics), and the current average social security 
retirement benefits. For each age cohort below 40, the allowance 
shall be computed by decreasing the allowance for age 40, as 
updated, by one-fifteenth for each year of age below age 40 and 
roimding the result to the nearest $100. In making such 
determinations— 
"(1) inflation shall be presumed to be 6 percent per year; 
"(2) the rate of return of an annuity shall be presumed 
to be 8 percent; and 
"(3) tiie sales commission on an annuity shall be presumed 
to be 6 percent. 
"(e) ASSESSMENT SCHEDULES AND RATES.—For each award year 
after award year 1992-1993, the Secretary shall pubUsh in the 
FedersQ Register a revised table of assessments 
fi*om 
adjusted avail-
able income for the purpose of sections 475(e) and 477(d). Such 
revised table shall be developed— 
"(1) by increasing each dollar amount that refers to adjusted 
available income by a percentage equal to the estimated per-
centage increase in the Constuner Price Index (as determined 
by the Secretary) between December 1992 and the December 
next preceding the beginning of such academic year, rounded 
to the nearest $100; and 
"(2) by adjusting the other doUar amounts to reflect the 
changes made pursuant to paragraph (1). 
"(f) DEFINITION OF CONSUMER PRICE INDEX.—AS used in this 
section, the term 'Consumer Price Index* means the Consumer 
Price Index for All Urban Consumers pubUshed by the Department 
of Labor. Each annual update of tables to reflect changes in the 
Consumer Price Index shall be corrected for misestimation of actual 
changes in such Index in previous years. 
"(g) STATE AND OTHER TAX ALLOWANCE.—For each award year 
after award year 1992-1993, the Secretary shall pubUsh in the 
Federal Register a revised table of State and other tax allowances 
for the purpose of sections 475(c)(2), 475(g)(3), 476(b)(2), and 
477(b)(2). The Secretary shall develop such revised table after 
review of the Department of the Treasury's Statistics of Income 
file and determination of the percentage of income that each State's 
taxes represent. 
"(h) EMPLOYMENT EXPENSE ALLOWANCE.—For each award year 
after award year 1992-1993, the Secretary shall pubHsh in the 
Federal Register a revised table of employment expense allowances 
for the purpose of sections 475(c)(5), 476(b)(4), and 477(b)(5). Such 
revised table shall be developed by increasing the dollar amount 
specified 
in 
sections 
475(c)(5XA), 475(c)(5XB), 476(b)(4)(A), 
476(b)(4)(B), 477(bX5XA), and 477(bX5XB) to reflect increases in 
the amount and percent of the Bureau of Labor Standards budget 
of the marginal costs for meals away fi*om home, apparel and 
106 STAT. 604 
PUBLIC LAW 102-325—JULY 23, 1992 
upkeep, transportation, and housekeeping services for a two-worker 
versus one-worker femily. 
20USC1087SS. •«£€. 479. SIMPLIFIED NEEDS TESTS. 
"(a) SIMPLIFIED APPLICATION SECTION.— 
"(1) IN GENERAL.—^The Secretary shall develop and use an 
easily identifiable simpUfied appUcation section as part of the 
common financial reporting form prescribed under section 
483(a) for famiUes described in subsections (b) and (c) this 
section. 
*
*
(
2
) REDUCED DATA REQUIREMENTS.—The simplified applica-
tion form shall— 
"(A) in the csise of a family meeting the requirements 
of subsection (b)(1), permit such family to submit only 
the data elements required under subsection (b)(2) for the 
purposes of establishing eligibility for student financial 
aid imder this part; and 
**(B) in the case of a family meeting the requirements 
of subsection (c), permit such family to be treated as having 
an expected family contribution equal to zero for purposes 
of establishing such eligibility and to submit only the data 
elements required to make a determination under sub-
section (c). 
*
*
(
b
) SIMPLIFIED NEEDS TEST.— 
"(1) ELIGIBILITY.—^An applicant is eUgible to file a simplified 
form containing the elements required by paragraph (2) i
f
— 
"(A) in the case of an appUcant who is a dependent 
student— 
"(i) the student's parents file or are eligible to file 
a form described in paragraph (3) or certify that they 
are not required to file an income tax return and 
the student files or is ehgible to file such a form 
or certifies that the student is not required to file 
an income tax return; and 
"(ii) the total adjusted gross income of the parents 
(excluding any income of the dependent student) is 
less than $50,000; or 
"(B) in the case of an appUcant who is £in independent 
student— 
"(i) the student files or is eligible to file a form 
described in paragraph (3) or certmes that the student 
is not required to file such an income tax return; 
and 
"(ii) the adjusted gross income of the student (sind 
the student's spouse, if any) is less than $50,000. 
"(2) SIMPLIFIED TEST ELEMENTS.—The five elements to be 
used for the simplified needs analysis are— 
"(A) adjusted gross income, 
"(B) Federal taxes paid, 
"(C) untaxed income and benefits, 
"(D) the number of family members, 
"(E) the number of family members in postsecondary 
education; and 
"(F) an allowance (A) for State and other taxes, as defined 
in section 475(c)(2) for dependent students and in section 
477(b)(2) for independent students with dependents other 
than a spouse, or (B) for State and other income taxes. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 605 
as defined in section 476(b)(2) for independent students 
without dependents other than a spouse. 
"(3) QUALIFYING FORMS.—A student or family files a form 
described in this paragraph if the student or family, respec-
tively, files— 
"(A) a form 1040A or 1040EZ required pursuant to the 
Internal Revenue Code of 1986; or 
"(B) an income t£ix return required pursuant to the tax 
code of the Commonwealth of Puerto Rico, Guam, American 
Samoa, the Virgin Islands, the Republic of the Marshall 
Islands, the Federated States of Micronesia, or Palau. 
"(c) ZERO EXPECTED FAMILY CONTRIBUTION.—The Secretary shall 
consider an appUcant to have an expected family contribution equal 
to zero i
f
— 
"(1) in the case of a dependent student— 
"(A) the student's parents did not file, and were not 
required to file, a form 1040 required pursuant to the 
Internal Revenue Code of 1986; and 
"(B) the sum of the adjusted gross income of the parents 
is less than or equal to the maximum amount of income 
(rounded annually to the nearest thousand dollars) that 
may be earned in order to claim the maximum Federal 
earned income credit; or 
"(2) in the case of an independent student with dependents 
other than a spouse— 
"(A) the student (and the student's spouse, if any) did 
not fUe, and was not required to file, a form 1040 required 
pursuant to the Internal Revenue Code of 1986; and 
"(B) the smn'of the adjusted gross income of the student 
and spouse (if appropriate) is less than or equal to the 
maximum amoxint of income (rounded annually to the near-
est thousand dollars) that may be earned in order to claim 
the maximum Federal earned income credit. 
An individual is not required to qusilify or file for the earned 
income credit in order to be eligible under this subsection. 
''SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRA- 20 USC 1087tt. 
TORS. 
"(a) IN GENERAL.—^Nothing in this part shall be interpreted as 
limiting the authority of the finemcisd aid administrator, on the 
basis of adequate docimientation, to make adjustments on a case-
by-case basis to the cost of attendance or the values of the data 
items required to calculate the expected student or parent con-
tribution (or both) to allow for treatment of an individual eUgible 
appUcant with special circimistances. However, this autiiority shall 
not be construed to permit aid administrators to deviate fi*om 
the contributions expected in the absence of special circumstances. 
Special circumstances shedl be conditions mat differentiate an 
individual student fi*om a class of students rather than conditions 
that exist across a class of students. Adequate documentation for 
such adjustments shall substantiate such special circumstances of 
individual students. In addition, nothing in this title shall be inter-
preted as limiting the authority of the student 
finsmcied 
aid adminis-
trator in such cases to request and use supplementary information 
about the finsincial status or personal circumstances of eUgible 
applicants in selecting recipients and determining the amoiint of 
awards under this title. No student or parent shall be charged 
106 STAT. 606 
PUBLIC LAW 102-325—JULY 23, 1992 
20 u s e 1087UU. 
20 use 
1087UU-1. 
a fee for collecting, processing, or delivering such supplementary 
information. 
"(b) ADJUSTMENTS TO ASSETS TAKEN INTO ACCOUNT.—^A student 
financial aid administrator shall be considered to be making a 
necessary adjustment in accordance with subsection (a) i
f
— 
"(1) the administrator makes adjustments excluding fi*om 
family income any proceeds of a sale of farm or business assets 
of a femily if such sale results from a voluntary or involuntary 
foreclosure, forfeiture, or bankruptcy or an involuntary liq-
uidation; or 
"(2) the administrator makes adjustments in the award level 
of a student with a disabihty so £is to take into consideration 
the additional costs such student incurs as a result of such 
student's disability. 
''SEC. 479B. DISREGARD OF STUDENT AID IN OTHER FEDERAL PRO-
GRAMS. 
"Notwithstanding any other provision of law, student financial 
assistance received under this title, or under Bureau of Indian 
Affairs student assistance programs, shall not be taken into acco\mt 
in determining the need or eUgibility of any person for benefits 
or assistance, or the amoimt of such benefits or assistance, under 
any Federal, State, or local program financed in whole or in part 
with Federal fiinds. 
''SEC. 479C. NATIVE AMERICAN STUDENTS. 
"In determining family contributions for Native American stu-
dents, computations performed pursuant to this part shall exclude— 
"(1) any income and assets of $2,000 or less per individual 
payment received by the student (and spouse) and student's 
parents imder the Per Capita Act or the Distribution of Judg-
ment Funds Act; and 
"(2) any income received by the student (and spouse) and 
student's parents under the Alaskan Native Claims Settlement 
Act or the Maine Indian Claims Settlement Act. 
20 u s e 1087w. 
•^EC. 480. DEFINITIONS. 
"As used in this part: 
"(a) TOTAL INCOME.—(1) Except as provided in paragraph (2), 
the term total income' is equsd to adjusted gross income plus 
untaxed income and benefits for the prece(ting tax year minus 
excludable income (as defined in subsection (e)). 
"(2) No portion of an^ student financial assistance received firom 
£iny progrsim by an individual shall be included as income or assets 
in the computation of expected family contribution for any program 
funded in whole or in part under this Act. 
"(b) UNTAXED INCOME AND BENEFITS.—The term *untaxed income 
and benefits' means— 
"(1) child support received; 
''(2) welfare Denefits, including aid to families with dependent 
children under a State plan approved under part A of title 
IV of the Social Security Act and aid to dependent children; 
"(3) workman's compensation; 
"(4) veterans' benefits such as death pension, dependency, 
and indemnity compensation, but excluding veterans' education 
benefits as defined m subsection (c); 
"(5) interest on tax-fi*ee bonds; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 607 
"(6) housing, food, and other allowances (excluding rent sub-
sidies for low-income housing) for miUtaiy, clergy, and others 
(including cash pajmaents and cash value of benefits); 
"(7) cash support or any money paid on the student's behalf, 
except, for dependent students, fimds provided by the student's 
parents; 
**(8) the amount of earned income credit claimed for Federal 
income tax piuposes; 
"(9) untaxed portion of pensions; 
"(10) credit for Federal tax on special fuels; 
"(11) the amount of foreign income excluded for purposes 
of Federsd income taxes; 
"(12) untaxed social security benefits; 
"(13) payments to individual retirement accounts and Keogh 
accoimts excluded 
fi-om 
income for Federal income tax purposes; 
and 
"(14) any other untaxed income and benefits, such as Black 
Lung Benefits, Refugee Assistance, railroad retirement benefits, 
or Job Training Partaiership Act noneducational benefits, 
"(c) VETERAN AND VETERANS' EDUCATION BENEFITS.—(1) The term 
Veteran' means any individual who— 
"(A) has engaged in the active duty in the United States 
Army, Navy, Air Force, Marines, or Coast Guard; and 
"(B) was released under a condition other than dishonorable. 
"(2) The term Veterans' education benefits' means veterans' bene-
fits the student will receive during the award year, including but 
not limited to the following: 
"(A) Title 10, chapter 2: Reserve Officer Training Corps schol-
arship. 
"(B) Title 10, chapter 106: Selective Reserve. 
"(C) Title 10, chapter 107: Selective Reserve Educational 
Assistance Program. 
"(D) Title 37, chapter 2: Reserve Officer Training Corps Pro-
gram. 
"(E) Title 38, chapter 30: Montgomery GI Bill—active duty. 
"(F) Title 38, chapter 31: vocational rehabiHtation. 
"(G) Title 38, chapter 32: Post-Vietnam Era Veterans' Edu-
cational Assistance Program. 
"(H) Title 38, chapter 35: Dependents Educational Assistance 
Program. 
"(I) Public Law 97-376, section 156: Restored Entitlement 
Program for Survivors (or Quayle benefits). 
"(J) PubUc Law 96-342, section 903: Educational Assistance 
Pilot Program. 
"(d) INDEPENDENT STUDENT.—The term 'independent', when used 
with respect to a student, means any individual who^ 
"(1) is 24 years of age or older by December 31 of the award 
year; 
"(2) is an orphan or ward of the court; 
"(3) is a veteran of the Armed Forces of the United States 
(as defined in subsection (c)(1)); 
"(4) is a graduate or professional student; 
"(5) is a married individual; 
"(6) has legal dependents other than a spouse; or 
"(7) is a student for whom a financial aid administrator 
makes a documented determination of independence by reason 
of other iinusual circumstances. 
106 STAT. 608 
PUBLIC LAW 102-325—JULY 23, 1992 
"(e) EXCLUDABLE INCOME.—The term 'excludable income' means— 
"(1) any student financial assistance awarded based on need 
as determined in accordance with the provisions of this part, 
including any income earned from work under part C of this 
title; 
"(2) any living allowance received by a participant in a pro-
gram established under the National and Community Service 
Act of 1990; 
"(3) child support payments made by the student or parent; 
and 
"(4) payments made and services provided under part E of 
title IV of the Social Security Act. 
"(f) ASSETS.—(l)The term'assets'means cash on hand, .including 
the amount in checking and savings accounts, time deposits, money 
market funds, trusts, stocks, bonds, other securities, mutual funds, 
tax shelters, and the net value of real estate, income producing 
property, and business and farm assets. 
"(2) With respect to determinations of need under this title, 
other than for subpart 4 of part A, the term 'assets' shall not 
include the net value o
f
— 
"(A) the famil^s principal place of residence; or 
"(B) a family farm on which the family resides. 
"(g) NET ASSETS.—^The term 'net assets' means the current market 
value at the time of appUcation of the assets (as defined in sub-
section (f)), minus the outstanding Uabilities or indebtedness against 
the assets. 
"(h) TREATMENT OF INCOME TAXES PAID TO OTHER JURISDIC-
TIONS.—(1) The tax on income paid to the Governments of the 
Commonwesdth of Puerto Rico, Guam, American Samoa, the Virgin 
Islands, or the Commonwealtii of the Northern Mariana Islands, 
the Republic of the Marshall Islands, the Federated States of 
Micronesia, or Palau under the laws applicable to those jurisdic-
tions, or the comparable tax paid to the central government of 
a foreign country, shall be treated as Federal income taxes. 
"(2) References in this part to the Internal Revenue Code of 
1986, Federal income tax forms, and the Internal Revenue Service 
shall, for purposes of the tax described in paragraph (1), be treated 
as references to the corresponding laws, tax forms, and tax collection 
agencies of those jurisdictions, respectively, subject to such adjust-
ments as the Secretary may provide by regulation. 
"(i) CURRENT BALANCE.—^The term 'current balance of checking 
and saving^ accoimts' does not include any funds over which an 
individual is barred from exercising discretion and control because 
of the actions of any State in declaring a bank emergency due 
to the insolvency of a private deposit insurance fimd. 
"(j) OTHER FINANCIAL ASSISTANCE; TUITION PREPAYMENT PLANS.— 
(1) For purposes of determining a student's eligibility for funds 
under tms title, estimated financial assistance not received under 
this title shall include all scholarships, grants, loans, or other 
assistance known to the institution at the time the determination 
of the student's need is made, including veterans' education benefits 
as defined in subsection (c). 
"(2)(A) Except as provided in subparagraph (B), for purposes 
of determining a student's eUgibiUty for funds imder this title, 
tuition prepajrment plans shall reduce the cost of attendance (as 
determined under section 472) by the amount of the prepayment, 
and shaU not be considered estimated financial assistance. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 609 
20 u s e 1087kk 
note. 
"(B) If the institutional expense covered by the prepayment must 
be part of the student's cost of attendcince for accounting purposes, 
the prepajrment shall be considered estimated financial assistsmce.". 
(b) EFFECTIVE DATE FOB AMENDMENT TO PART F.—The changes 
made in part F of title IV of the Act by the amendment made 
by this section shall apply with respect to determinations of need 
under such part F for award years beginning on or after July 
1,1993. 
PART G—GENERAL PROVISIONS 
SEC. 481. DEFDOnONS. 
(a) INSTITUTION OF HIGHER EDUCATION.—Section 481 of the 
Act 
(20 U.S.C. 1088(a)) is amended by striking the heading of such 
section and subsection (a) and inserting the following: 
'<SEC. 481. DEFmrnoNS. 
"(a) INSTITUTION OF HIGHER EDUCATION.—(1) Subject to para-
graphs (2) through (4) of this subsection, the term 'institution 
of higher education' for purposes of this title includes, in addition 
to the institutions covered by the definition in section 1201(a)— 
"(A) a proprietary institution of 
higher education; 
*
*
(
B
) a postsecondary vocational institution; and 
**(C) only for the purposes of part B of this title, an institution 
outside the United States which is comparable to an institution 
of higher education as defined in section 1201(a) and which 
h£is been approved by the Secretary for the purpose of part 
B. 
"(2)(A) For the purpose of quaUfying as an institution under Regulations. 
paragraph (1)(C) of this subsection, the Secretary shall estabUsh 
criteria by regulation for the approval of institutions outside the 
United States and for the determination that such institutions 
are comparable to an institution of higher education as defined 
in section 1201(a). In the case of a graduate medical school outside 
the United States, such criteria shall include a requirement that 
a student attending a graduate medical school outside the United 
States is ineUgible for loans made, insured, or guaranteed under 
part B of this title unless— 
"(i)(I) at least 60 percent of those enrolled and at least 60 
percent of the graduates of the graduate medical school outside 
the United States were not persons described in section 
484(aX5) in the yesir preceding the year for which a student 
is seeking a loan under part B of this title; and 
"(II) at least 60 percent of the individuals who were students 
or graduates of the graduate medical school outside the United 
States (both nation^s of the United States and others) taking 
the examinations administered by the Educational Commission 
for Foreign Medical Graduates received a passing score in 
the year preceding the year for which a student is seeking 
a loan under part B of this title; or 
"(ii) the institution's clinical training program was approved 
by a State as of January 1,1992. 
"(B) For the purpose of quaUfying as an institution imder para-
graph (1)(C), the Secretary shall estabUsh an advisory panel of 
medical experts which shaU— 
"(i) evaluate the standards of accreditation applied to 
applicant foreign medical schools; and 
59-1S4 O—93 
21 : QL 3 (Pt. 1) 
106 STAT. 610 
PUBLIC LAW 102-325—JULY 23, 1992 
"(ii) determine the comparability of those standards to stand-
ards for accreditation appUed to United States medical schools. 
If such accreditation standards are determined not to be com-
parable, the foreign medical school shall be required to meet the 
requirements of section 1201(a). 
"(C) The failure of an institution outside the United States to 
provide, release, or authorize release to the Secretary of such 
information as may be required by subparagraph (A) of this para-
graph shall render such mstitution inehgible for the purpose of 
part B of this title. 
Reports- 
"(D) The Secretary shall, not later than one year after the date 
of enactment of the Higher Education Amendments of 1992, prepare 
and submit to the Committee on Education and Labor of the House 
of Representatives and the Committee on Labor and Human 
Resources of the Senate a report on the implementation of the 
regulations required by subparagraph (A) of this paragraph. 
"(E) If, pursuant to this paragraph, an institution loses eligibility 
to participate in the progrgims under this title, then a student 
enrolled at such institution may, notwithstanding such loss of ehgi-
bihty, continue to be eUgible to receive a loan under part B whfle 
_^ 
attending such institution for the academic year succeeding the 
academic year in which such loss of ehgibihty occurred. 
"(3) An institution shall not be considered to meet the definition 
of an institution of higher education in paragraph (1), if such 
institution— 
"(A) offers more than 50 percent of such institution's courses 
by correspondence, unless me institution is an institution that 
meets the definition in section 521(4)(C) of the Carl D. Perkins 
i 
Vocational and Applied Technology Education Act; 
"(B) enrolls 50 percent or more of its students in cor-
respondence courses, unless the institution is an institution 
that meets the definition in such section; 
"(C) has a student enrollment in which more than 25 percent 
of the students are incarcerated, except that the Secretary 
may waive the prohibition of this subparagraph for a nonprofit 
institution that provides a 4-year or a 2-year program of instruc-
tion (or both) for which it awards a bachelor's or associate's 
degree, respectively; or 
"(D) has a student enrollment in which more than 50 percent 
of the students are admitted pursuant to section 484(d) and 
does not provide a 4-year or a 2-year program of instruction 
(or both) for which it awards a bachelor s or associate's degree, 
respectively. 
"(4) An institution shall not be considered to meet the definition 
of an institution of higher education in paragraph (1) if— 
"(A) such institution has filed for bankruptcy; or 
"(B) the institution, its owner, or its chief executive officer 
has been convicted of, or has pled nolo contendere or guilty 
to, a crime involving the acquisition, use, or expenditure of 
fiinds under this title, or has been judicially determined to 
have committed fi*aud involving funds under this title. 
"(5) The Secretary shall certify an institution's qualification as 
an institution of higher education in accordance with the require-
ments of subpart 3 of part H. 
"(6) An institution of higher education shall not be considered 
to meet the definition of an institution of higher education in 
paragraph (1) if such institution is removed from eUgibiUty for 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 611 
funds under this title as a result of an action pursuant to part 
H of this title.". 
(b) PROPRIETARY INSTITUTIONS OP HIGHER EDUCATION.—Section 
481(b) of the Act is amended by— 
20 U
S
C 1088. 
(1) in clause (1), by striking "not less than a 6-month pro-
gram" and inserting "an eligible program"; 
(2) in clause (4)— 
(A) by strildng "for this purpose" and inserting "pursuant 
to part H of this title"; and 
(B) by striking "and" at the end thereof; 
(3) by strUdng the period at the end of clause (5) and inserting 
the following: ", and (6) which has at least 15 percent of 
its revenues from sources that are not derived from funds 
provided imder this title, as determined in accordance with 
regulations prescribed by the Secretary."; and 
(4) by striking the last sentence. 
(c) POSTSECONDARY VOCATIONAL INSTITUTION.—Section 481(c)(1) 
of the Act is amended by striking "not less than a 6-month program" 
and inserting "an ehgible program". 
(d) AWARD YEAR.—Section 481(d) of the Act is amended to read 
as follows: 
"(d) ACADEMIC AND AWARD YEAR.—(1) For the purpose of any 
program imder this title, the term 'award year' shall be defined 
as the period beginning July 1 and ending June 30 of the following 
year. 
"(2) For the purpose of any program under this title, the term 
'academic year* shall require a minimum of 30 weeks of instructional 
time in which a full-time student is expected to complete at least 
24 semester or trimester hours or 36 quarter hours at an institution 
which measures program length in credit hours or at least 900 ^ 
clock hours at an institution which measures program length in 
clock hours.". 
(e) ELIGIBLE PROGRAM.—Section 481(e) of the Act is amended 
to read as follows: 
"(e) ELIGIBLE PROGRAM.—(1) For purposes of this title, the term 
'eligible program' means a progrsim of at least— 
"(A) 600 clock hours of instruction, 16 semester hours, or 
24 quarter hours, offered during a minimum of 15 weeks, 
in the case of a program that— 
"(i) provides a program of training to prepare students 
for gainful employment in a recognized profession; and 
"(ii) admits students who have not completed the equiva-
lent of an associate degree; or . 
"(B) 300 clock hours of instruction, 8 semester hours, or 
12 hours, offered during a minimum of 10 weeks, in the case 
o
f
— 
"(i) an undergraduate program that requires the equiva-
lent of an associate degree for admissions; or 
"(ii) a graduate or professional program. 
"(2) The Secretary shall develop regulations to determine the Regulations, 
quality of programs of less than 600 clock hours in length. Such 
regulations shall require, at a minimum, that the programs have 
a verified rate of completion of at least 70 percent and a verified 
rate of placement of at least 70 percent. Pursuant to these regula-
tions and notwithstanding paragraph (1), the Secretary shall allow 
programs of less than 600 clock hours, but greater than 300 clock 
106 STAT. 612 
PUBLIC LAW 102-325—JULY 23, 1992 
hours, in length to be eUgible to participate in the programs author-
ized under pMt B of this title.". 
20 use 1088. 
(f) THIRD PARTY SERVICER.—Section 481 of the Act is amended 
by adding the following new subsection after subsection (e): 
"(f) THIRD PARTY SERVICER.—For purposes of this title, the term 
'third p2u*ty servicer' means any State or private, profit or nonprofit 
organization which enters into a contract with— 
"(1) any eligible institution of higher education to administer, 
through either manual or automated processing, any aspect 
of such institution's student assistance programs under this 
title; or 
"(2) any guaranty agency, or any eUgible lender, to admin-
ister, through either manual or automated processing, any 
aspect of such guaranty agency's or lender's skident loan pro-
grams under part B of this title, including originating, 
guaranteeing, monitoring, processing, servicing, or collecting 
logins.". 
SEC. 482. MASTER CALENDAR. 
(a) AMENDMENT.—Section 482(c) of the Act (20 U.S.C. 1089(c)) 
is amended to read as follows: 
"(c) DELAY OF EFFECTIVE DATE OF LATE PimLicATiONS.—Any 
regulatory changes initiated by the Secretary affecting the programs 
pursuant to this title that have not been published in fmal form 
by December 1 prior to the start of the award year shall not 
become effective imtil the beginning of the second award year 
after such December 1 date.". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 482(a)(1) of the Act is amended by striking "sec-
tions 411E and" each place it appears in subparagraphs (B) 
and (C) and inserting "section". 
(2) Section 482(b) of the Act is amended by striking "subpart 
2" and inserting "subpart 3". 
SEC. 483. FORMS AND REGULATIONS. 
(a) FORMS AND PROCESSING.—Section 483 of the Act (20 U.S.C. 
1090) is amended by striking subsections (a) and (b) and inserting 
! 
the following: 
"SEC. 483. (a) COMMON FINANCIAL AID FORM AND PROCESSING.— 
"(1) SINGLE FORM REQUIRED.—The Secretary, in cooperation 
with representatives of agencies and organizations mvolved 
in student financial assistance, shall produce, distribute, and 
process fi*ee of charge a common financial reporting form to 
oe used to determine the need and eUgibility of a student 
for financial assistance under parts A, C, D, and E of this 
title (other than under subpart 4 of part A) and to determine 
the need of a student for uie purpose of part B of this title. 
The Secretary may include on the form developed pursuant 
to this paragraph not more than eight nonfinancial data items 
selected in consultetion with the States to assist the States 
in awarding State student financial assistance. Such form shall 
satisfy the requirements of section 411(d) of this title. For 
the purpose of collecting eligibility and other data for the pur-
pose of part B, the Secretary shaU develop a separate, identifi-
able loan appUcation document (pursuant to section 432(m)) 
that applicants or institutions in which the students are 
enrolled or accepted for enrollment shall submit directly to 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 613 
eligible lenders and on which the applicant shall clearly indicate 
a choice of a lender. 
"(2) CHARGES TO STUDENTS AND PARENTS FOR USE OF FORM 
PROHIBITED.—^The common financial reporting form prescribed 
by the Secretary under paragraph (1) shall be produced, distrib-
uted, and processed by the Secretary and no parent or student 
shall be charged a fee for the collection, processing, or deUvery 
of financial aid through the use of such form. Ilie need and 
eligibility of a student for financial assistance imder parts 
A, C, D, and E of this title (other than under subpart 4 of 
part A) and the need of a student for the purpose of part 
B of this title, may only be determined by using the form 
developed by the Secretary pursuant to paragraph (1) of this 
subsection. No student may receive assistance under parts A, 
C, D, and E of this title (other than under subpart 4 of part 
A) or have the student's need established for tiie purpose of 
part B of this title, except by use of the form developed by 
the Secretary pursuant to this section. 
"(3) DISTRIBUTION OF DATA.--Institutions of higher education 
and States shall receive, without charge, the data collected 
by the Secretary using the form developed pursuant to this 
section for the purposes of determining need and eligibility 
for institutional and State financial aid awards. 
"(4) CONTRACTS FOR COLLECTION AND PROCESSING.—(A) 
The 
Secretary shall, to the extent practicable, enter into not less 
than 5 contracts with States, institutions of higher education, 
or private organizations for the purposes of the timely collection 
and processing of the form developed pursuant to paragraph 
(1) and the timely deUvery of the data submitted on such 
form. The Secretary ahal\ use such contracts to assist States 
and institutions of higher education with the collection of addi-
tional data required to award State or institutional financial 
assistance, except that the Secretary shall not include these 
additional data items on the common financial reporting form 
developed pxirsuant to this section. The Secretary shall include 
in each such contract a requirement that— 
"(i) any charges by the contractor to the student or parent 
for additional data items required by a State or institution 
for any purpose (regardless of the method of collection) 
shall be reasonable and shall not exceed the marginal 
cost of collecting, processing, and deUvering such additional 
data, taking into account any pa5rment received by the 
contractor to produce, distribute, and process the common 
financial reporting form prescribed by the Secretary pursu-
ant to paragraph (1); and 
"(ii) the contractor will require any person or entity to 
whom the contractor provides such additional data to agree 
not to collect firom any student or parent any charge that 
would not be permitted imder this subparagraph for £uiy 
such additional data. 
"(B) To the extent practicable, the Secretary shall ensure 
that at least one contractor, or a portion of one contract, under 
this paragraph will serve graduate and professional students. 
"(C) As peoct of the procurement process for the 1993-1994 
award year, and for all procurements thereafter pertaining 
to the contracts imder this paragraph, the Secretary shaU 
106 STAT. 614 
PUBLIC LAW 102-325—JULY 23, 1992 
Contracts. 
require all entities competing for such contracts to comply 
with all requirements of this subsection and to— 
"(i) use the common financial reporting form as pre-
scribed in paragraph (1), which shall be clearly identified 
as the 'Free Application for Federal Student Aid*; and 
"(ii) use a common, simplified reappUcation form as the 
Secretary shall prescribe pursuant to subsection (b), in 
each award year. 
**(D) The Secretary shall reimburse all approved contractors 
at a reasonable predetermined rate for processing such applica-
tions, for issuing eligibiUty reports, and for canying out other 
services or requirements that may be prescribed by the Sec-
retary. 
"(E) All approved contractors shall be required to adhere 
to aU editing, processing, and reporting requirements estab-
Ushed by the Secretary to ensure consistency. 
"(F) No approved contractor shall enter into exclusive 
arrangements with guarantors, lenders, secondary markets, or 
institutions of higher education for the purpose of reselling 
or sharing of data collected for the multiple data entry process. 
All data collected under a contract issued by the Secretary 
pursuant to this paragraph for the miiltiple data entry process 
is the exclusive property of the Secretary and may not be 
transferred to a third party by an approved contractor without 
the Secretary's express written approval. 
"(b) STREAMLINED REAPPLICATION PROCESS.—(1) The Secretary 
shall, within 240 days after the date of enactment of the Higher 
Education 
Amendments 
of 
1992, 
develop 
a 
streamuned 
reappUcation form and process, including electronic reapplication 
process, consistent with the requirements of subsection (a), for 
those recipients who apply for financial aid fimds under this title 
in the next succeeding academic year subsequent to the initial 
year in which such recipients apply. 
"(2) The Secretary shall develop appropriate mechanisms to sup-
port reapplication. 
"(3) The Secretary shall determine, in cooperation with States, 
institutions of higher education, agencies and organizations involved 
in student financial assistance, the data elements that can be 
updated 
firom 
the previous academic year's appHcation. 
"(4) Nothing in this title shall be interpreted as limiting the 
authority of the Secretary to reduce the number of data elements 
required of reapplicants. 
"(5) Individuals determined to have a zero family contribution 
pursuant to section 479 shaU not be required to provide any finan-
cial data, except that which is necessary to determine eligibility 
under that section.", 
(b) ADDITIONAL AMENDMENTS.—Section 483 is fiirther amended— 
(1) by striking subsections (d) and (f); 
(2) by amending subsection (e) to read as follows: 
"(e) TOLL-FREE INFORMATION.—The Secretary shall contract for, 
or estabUsh, and pubUcize a toll-fi*ee telephone service to provide 
timely and accurate information to the general public. The informa-
tion provided shall include specific instructions on completing the 
appUcation form for assistance under this title. Such service shall 
also include a service accessible by telecommunications devices 
for the deaf (TDD's) and shall, in addition to the services provided 
for in the previous sentence, refer such students to the national 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 615 
clearinghouse on postsecondary education that is authorized under 
section 633(c) of the Individuals with Disabilities Education Act."; 
and 
(3) by adding at the end the following new subsections: 
"(f) PREPARER.—^Any financial aid application required to be made 
under this title shall include the name, signature, address, social 
security number, and organizational affOiation of the preparer of 
such financial aid application. 
"(g) SPECIAL RULE.—Nothing in section 1544 of the Higher Edu-
cation Amendments of 1992 shall reUeve processors or institutions 
of higher education of any or all obUgations under this section.". 
SEC. 484. STUDENT ELIGmiUTY. 
(a) IN GENERAL.—Section 484 of the Act (20 U.S.C. 1091) is 
amended— 
(1) in paragraph (1) of subsection (a), by inserting "(including 
a program of stiidy abroad approved for credit by the eligible 
institution at which such student is enrolled)" after "or other 
program"; eind 
(2) by striking paragraph (4) of subsection (a) and inserting 
the following: 
"(4) file with the institution of higher education which the 
student intends to attend, or is attending (or in the case of 
a loan or loan guarantee with the lender), a dociunent, which 
need not be notarized, but which shall include— 
"(A) a statement of educational purpose stating that the 
money attributable to such grant, loan, or loan guarantee 
will be used solely for expenses related to attendance or 
continued attendance at such institution; and 
"(B) such student's social security nimiber;". 
(b) EXCEPTIONS TO ELIGIBLE STUDENT DEFINITION.— 
(1) AMENDMENTS.—Section 484(b) of the Act is amended— 
(A) in paragraph (4) by striking "part B" and inserting 
"part B, D, or E or work-study assistance under part C"; 
and 
(B) by adding at the end the following new paragraph: 
"(5) Notwithstanding any other provision of t&s subsection, no 
incarcerated student is eligible to receive a loan imder this title.". 
(2) EFFECTIVE DATE.—^The amendments made by paragraph 20 use 1091 
(1)(A) of this subsection shall be effective on and after December "°**' 
1,1987. 
(c) ABILITY TO BENEFIT.—Section 484(d) of the Act is amended 
to read as follows: 
"(d) STUDENTS WHO ARE NOT HIGH SCHOOL GRADUATES.—In 
order for a student who does not have a certificate of graduation 
from a school providing secondary education, or the recognized 
equivalent of such certificate, to be eligible for any assistance xmder 
subparts 1, 3, and 4 of part A and parts B, C, D, and E of 
this title, the student shall meet either one of the following stand-
ards: 
"(1) The student shall take an independently administered 
examination and shall achieve a score, specified by the Sec-
retary, demonstrating that such student can benefit fi*om the 
education or training being offered. Such examination shaJl 
be approved by the Secretary on the basis of compHance with 
such standards for development, administration, and scoring 
as the Secretary may prescribe in regulations. 
106 STAT. 616 
PUBLIC LAW 102-325—JULY 23, 1992 
"(2) The student shall be determined as having the ability 
to benefit from the education or training in accordance with 
Effective date. 
such process as the State shall prescribe. Any such process 
described or approved by a State for the purposes of this section 
shall be effective 6 months after the date of submission to 
the Secretary unless the Secretary disapproves such process. 
In determining whether to approve or disapprove such process, 
the Secretary shall take into account the effectiveness of such 
process in enabling students without high school diplomas or 
the equivalent thereof to benefit from the instruction offered 
by institutions utilizing such process, and shall also take into 
account the cultural diversity, economic circumstances, and 
educational preparation of the populations served by the institu-
tions.". 
20 use 1091. 
(d) VERIFICATION.—Section 484(f) of the Act is amended by adding 
at the end the following new sentence: "Nothing in this subsection 
shsdl preclude the Secretary from verifying all applications for 
aid tlu-ough the use of any meeins available, including through 
the exchange of information with any other Federal agency.". 
(e) Loss OF ELIGIBILITY.—Section 484(g) of the Act is amended— 
(1) by inserting "(1)" before "No student"; 
(2) by inserting ", part D" after "part B" each place it appears; 
(3) by inserting "fraudulentl)^" before "borrowed" each place 
it appears; and 
(4) by adding at the end the following new paragraph: 
"(2) If the institution determines that the student inadvertently 
borrowed amounts in excess of such annual or aggregate maximum 
loan limits, such institution shall allow the student to repay any 
amount borrowed in excess of such limits prior to certifying the 
student's eligibility for further assistance imder this title.". 
(f) VERIFICATION OF IMMIGRANT STATUS.—Section 484(h) of the 
Act is amended to read as follows: 
"(h) VERIFICATION OF IMMIGRATION STATUS.— 
"(1) IN GENERAL.—^The Secretary shall implement a system 
under which the statements and supporting documentation, 
if required, of an individual declaring that such individual 
is in compliance with the requirements of subsection (a)(5) 
shall be verified prior to the individual's receipt of a grant, 
loan, or work assistance under this title. 
"(2) SPECIAL RULE.—^The documents collected and maintained 
by an eligible institution in the admission of a student to 
the institution may be used by the student in lieu of the 
documents used to establish both emplo3mient authorization 
and identity under section 274A(b)(l)(B) of the Immigration 
and Nationality Act (8 U.S.C. 1324a) to verify eligibility to 
participate in work-study programs under part C of this title. 
"(3) VERIFICATION MECHANISMS.—The Secretary is authorized 
to verify such statements and supporting documentation 
through a data mateh, using an automated or other system, 
with other Federal agencies that may be in possession of 
information relevant to such statements and supporting docu-
mentation. 
"(4) REVIEW.—In the case of such an individual who is not 
a citizen or national of the United States, if the statement 
described in paragraph (1) is submitted but the documentation 
required imder paragraph (2) is not presented or if the docu-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 617 
mentation required under paragraph (2)(A) is presented but 
such documentation is not verified under paragraph (3)— 
"(A) the institution— 
"(i) shall provide a reasonable opportunity to submit 
to the institution evidence indicating a satisfactory 
immigration status, and 
"(u) may not delay, deny, reduce, or terminate the 
individual's eligibility for the grant, loan, or work 
assistance on the basis of the individual's immigration 
status until such a reasonable opportunity has been 
provided; £ind 
"(B) if there E
u
*
e submitted dociunents which the institu-
tion determines constitutes reasonable evidence indicating 
such status— 
"(i) the institution shall transmit to the Immigration 
and Naturalization Service photostatic or other similar 
copies of such docimients for official verification, 
(ii) pending such verification, the institution may 
not delay, deny, reduce, or terminate the individual's 
eUgibihty for the grant, loan, or work assistance on 
the basis of the individual's immigration status, and 
"(iii) the institution shall not be Uable for the con-
sequences of any action, delay, or failure of the Service 
to conduct such verification.". 
(g) ADDITIONAL PROVISIONS.—Section 484 of the Act is fiirther 
amended by adding at the end the following new subsections: 
"(1) SPECIAL RULE FOR CORRESPONDENCE COURSES.—A student 
shall not be eligible to receive grant, loan, or work assistance 
under this title for a correspondence course unless such course 
is part of a program leading to an associate, bachelor or graduate 
degree. 
(m) COURSES OFFERED THROUGH TELECOMMUNICATIONS.— 
"(1) RELATION TO CORRESPONDENCE COURSES.—A student 
enrolled in a coxzrse of instruction at an eligible institution 
of higher education (other than an institution that meets the 
defimtion in section 521(4)(C) of the Carl D. Perkins Vocational 
and Applied Technology Education Act) that is offered in whole 
or in part through telecommimications and leads to a recognized 
associate, bachelor, or graduate degree conferred by such 
institution shall not be considered to be enrolled in cor-
respondence courses imless the total amount of telecommuni-
cations and correspondence courses at such institution equals 
or exceeds 50 percent of such courses. 
"(2) RESTRICTION OR REDUCTIONS OF FINANCIAL AID.—A stu-
dent's eligibility to receive grants, loans, or work assistance 
imder this title shall be reduced if a financial aid officer deter-
mines imder the discretionary authority provided in section 
479A that telecommimications instruction results in a substan-
tially reduced cost of attendance to such student. 
"(3) SPECIAL RULE.—For award years prior to the date of 
enactment of this subsection, the Secretary shall not take any 
compliance, disallowance, penalty, or other action against a 
student or an eUgible institution when such action arises out 
of such institution's prior awsird of student assistance under 
this title if the institution demonstrates to the satisfaction 
of the Secretary that its course of instruction would have been 
in conformance with the requirements of 
this subsection. 
106 STAT. 618 
PUBLIC LAW 102-325—JULY 23, 1992 
"(4) DEFINITION.—For the purposes of this subsection, the 
term 'telecommunications' means the use of television, audio, 
or computer transmission, including open broadcast, closed cir-
cuit, cable, microwave, or satellite, audio conferencing, com-
puter conferencing, or video cassettes or discs, except that 
such term does not include a course that is deUvered using 
video cassette or disc recordings at such institution and that 
is not deUvered in person to other students of that institution, 
"(n) STUDENTS WITH A FIRST BACCALAUREATE OR PROFESSIONAL 
DEGREE.—^A student shall not be ineUgible for assistance under 
pgirt B, C, D, and E of this title because such student has previously 
received a baccalaureate or professional degree. 
"(o) DATA BASE MATCHING.—To enforce the Selective Service reg-
istration provisions of section 1113 of PubUc Law 97-252, the Sec-
retary shall conduct data base matches with the Selective Service, 
using common demographic data elements. Appropriate con-
firmation, through an application output document or through other 
means, of any person's registration shall fulfill the requirement 
to file a separate statement of compUance. In the absence of a 
confirmation fi*om such data matches, an institution may also use 
data or documents that support either the student's registration, 
or the absence of a registration requirement for the student, to 
fulfill the requirement to file a separate statement of compliance. 
Regulations. 
The mechanism for reporting the resolution of nonconfirmed 
matches shall be prescribed by the Secretary in regulations. 
"(p) STUDY ABROAD.—^Nothing in this Act shaJl be construed to 
limit or otherwise prohibit access to study abroad progrsuns 
approved by the home institution at which a student is enrolled. 
An otherwise eligible student who is engaged in a program of 
study abroad approved for academic credit by the home institution 
at which the student is enrolled shall be eligible to receive grant, 
loan, or work assistance under this title, without reg£ird to whether 
such study abroad program is required as part of the student's 
degree program. 
*^(q) VERIFICATION OF SOCIAL SECURITY NUMBER.—The Secretary 
of Education, in cooperation with the Commissioner of the Social 
Security Administration, shall verify any social security nimiber 
provided by a student to an eligible institution under subsection 
(a)(4) and shall enforce the following conditions: 
"(1) Except as provided in paragraphs (2) and (3), an institu-
tion shall not deny, reduce, delay, or terminate a student's 
eligibility for assistance under this part because social security 
number verification is pending. 
"(2) If there is a determination by the Secretary that the 
social security number provided to an eUgible institution by 
a student is incorrect, the institution shall deny or terminate 
the student's eligibility for any grant, loan, or work assistance 
under this title until such time as the student provides a 
correct social security number. 
"(3) If there is a determination by the Secretary that the 
social security number provided to an eUgible institution by 
a student is incorrect, and a correct social security number 
cannot be provided by such student, and a loan has been 
guaranteed for such student luider part B of this title, the 
institution shall notify and instruct the lender and guaranty 
agency making and guaranteeing the loan, respectively, to cease 
further disbursemente of the loan, but such guaranty shall 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 619 
not be voided or otherwise nullified with respect to such dis-
bursements made before the date that the lender and the 
guar£inty agency receives such notice. 
"(4) Nothing in this subsection shall permit the Secretary 
to take any compliance, disallowance, penalty, or other regu-
latory action against— 
"(A) any institution of higher education with respect to 
any error in a social security nimiber, unless such error 
was a result of fraud on the part of the institution; or 
"(B) any student with respect to any error in a social 
security nvunber, unless such error was a result of fraud 
on the part of the student.", 
(h) CLERICAL AMENDMENT.—Section 801(a) of the National Lit-
eracy Act of 1991 is amended by striking "the Act" and inserting 20 USC 1091. 
"the ffigher Education Act of 1965". 
SEC. 486. REFUND POUCY. 
(a) REFUND POLICIES AND REQUIREMENTS.—Part G of title IV 
of the Act is further amended by inserting after section 484A 
the following new section: 
•^EC. 484B. INSTITUTIONAL REFUNDS. 
20 USC 1091b. 
"(a) REFUND POLICY REQUIRED.—Each institution of higher edu-
cation participating in a progrsun under this title shall have in 
effect a fair and equitable refund policy under which the institution 
refunds unearned tuition, fees, room and board, sind other charges 
to a student who received grant, loan, or work assistance under 
this title, or whose parent received a loan made under section 
428B on behalf of the student, if the student— 
"(1) does not register for the period of attendance for which 
the assistance was intended; or 
"(2) withdraws or otherwise fails to complete the period of 
enrollment for which the assistance was provided. 
"(b) DETERMINATIONS.—The institution's refund policy shall be 
considered to be fair and equitable for purposes of this section 
if that policy provides for a refund in an amovmt of at least the 
largest ofthe amounts provided under— 
"(1) the requirements of applicable State law; 
"(2) the specific refund requirements established by the 
institution's nationally recognized accrediting agency and 
approved by the Secretary; or 
(3) the pro rata refund calculation described in subsection 
(d), except that this paragraph will not apply to the institution's 
refund i)olicy for amr student whose date of withdrawal from 
the institution is after the 60 percent point (in time) in tiie 
period of enrollment for which the student has been charged. 
"(c; DEFINITIONS.—(1) As used in this section, the term 'pro rata 
refiind' means a refimd b^ the institution to a student attending 
such institution for the nrst time of not less than ^ a t portion 
of the tuition, fees, room and board, and other charges assessed 
the student by the institution equal to the portion of the period 
of enroUment for which the student has been charged that remains 
on the last day of attendance by the student, rounded downward 
to the nearest 10 percent of that period, less any unpaid chsurges 
owed by the student for the period of enrollment for which the 
student has been charged, and less a reasonable administrative 
fee not to exceed the lesser of 5 percent of the tuition, fees, room 
and board, and other charges assessed the student, or $100. 
106 STAT. 620 
PUBLIC LAW 102-325—JULY 23, 1992 
"(2) For purposes of paragraph (1), the portion of the period 
of enrollment for which the student has been charged that remains', 
shall be determined— 
"(A) in the case of a program that is measured in credit 
hours, by dividing the total number of weeks comprising the 
period of enrollment for which the student has been charged 
into the number of weeks remaining in that period as of the 
last recorded day of attendance by the student; 
"(B) in the case of a program that is measured in clock 
hovirs, by dividing the total number of clock hours comprising 
the period of enroUment for which the student has been charged 
into the number of clock hours remaining to be completed 
by the student in that period as of the last recorded day 
of attendance by the student; and 
"(C) in the case of a correspondence program, by dividing 
the total number of lessons comprising the period of enrollment 
for which the student has been charged into the total number 
of such lessons not submitted by the student.". 
SEC. 486. INFORMATION DISSEMINATION. 
(a) INFORMATION DISSEMINATION ACTIVITIES.—Section 485(a)(1) 
of the Act (20 U.S.C. 1092(a)(1)) is amended— 
(1) in subparagraph (F)— 
(A) by inserting *
*
, as determined imder section 484B," 
after "of the institution"; 
(B) by inserting before the semicolon at the end the 
following: ", which refunds shall be credited in the following 
order: 
"(i) to outstanding balances on loans under part B 
of this title, 
"(ii) to outstanding balances on loans under part 
D of this title, 
"(iii) to outstanding balances on loans under part 
E of this title, 
"(iv) to awards subpart 1 of part A of this title, 
"(v) to awards under subpart 3 of part A of this 
title, 
"(vi) to awards under part C of this title, 
"(vii) to other student assistance provided under this 
title, and 
"(viii) to the student.". 
(2) by striking "and" at the end of subparagraph (K); 
(3) by striking the period at the end of subparagraph (L) 
(as added by section 1 of PubUc Law 101-542) and inserting 
a semicolon; 
(4) by redesignating subparagraph (L) (as added by section 
201 of PubUc Law 101-610) as subparagraph (M); 
(5) by striking the period at the end of subparagraph (M) 
(as redesignated by paragraph (3)) and inserting a semicolon 
and "and"; and 
(6) by adding at the end thereof the following new subpara-
graph: 
"(N) that enrollment in a program of study abroad approved 
for credit by the home institution may be considered enrollment 
in the home institution for purposes of appljring for Federal 
student financial assistance.". 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 621 
(b) EXIT COUNSELING.—Section 485(b) of the Act is amended 20 use 1092. 
to read as follows: 
"(b) EXIT COUNSELING FOR BORROWERS.—(1)(A) Each eligible 
institution shall, through financial aid officers or otherwise, make 
available counseling to borrowers (individually or in groups) of 
loans which are made, insured, or guaranteed imder part B (other 
than loans made pursuant to section 428B) of this title or made 
imder parts D or E of this title prior to the completion of the 
course of study for which the borrower enrolled at the institution 
or at the time of departure from such institution. The counseling 
required by this subsection shall include— 
"(i) the average anticipated monthly repayments, a review 
of tiie repa3niient options available, and such debt and manage-
ment strategies as the institution determines are designed to 
facilitate the repajnnent of such indebtedness; and 
"(ii) the terms and conditions imder which the student may 
obtain partial cancellation or defer repa3nnent of tiie principal 
and interest pursuant to sections 428(b), 464(c)(2), and 465. 
"(B) In the case of borrower who leaves an institution without 
the prior knowledge of the institution, the institution shall attempt 
to provide the information described in subparagraph (A) to the 
student in writing. 
"(2)(A) Each eligible institution shall require that the borrower 
of a loan made imder parts B, D, or E submit to the institution, 
during the exit interview required by this subsection— 
"(i) the borrower's expected permanent address after leaving 
the institution (regardless of the reason for leaving); 
"(ii) the name and address of the borrower's expected 
employer after leaving the institution; 
"(iii) the address of the borrower's next of kin; and 
"(iv) any corrections in the institution's records relating the 
borrower's name, address, social security number, references, 
and driver's license nimiber. 
"(B) The institution shall, within 60 days after the interview, 
forward any corrected or completed information received from the 
borrower to the guaranty agency indicated on the borrower's student 
aid records.". 
(c) CAMPUS SECURITY POLICY.— 
(1) STATISTICS.—Section 485(f)(1)(F) of the Act is amended 
to read as follows: 
"(F) Statistics concerning the occurrence on campus, during 
the most recent calendar year, and during the 2 preceding 
calendar years for which data are available, of the following 
criminal offenses reported to campus security authorities or 
local police agencies— 
"(i) murder; 
"(ii) sex offenses, forcible or nonforcible; 
"(iii) robbery; 
"(iv) aggravated assault; 
"(v) burglary; and 
"(vi) motor vehicle theft.". 
(2) POLICY DEVELOPMENT.—Section 485(f) of the Act is amend-
ed by adding at the end the following new paragraph: 
"(7)(A) Each institution of higher education participating in any 
program xmder this title shall develop and distribute as part of 
the report described in paragraph (1) a statement of poKcy 
regarding— 
106 STAT. 622 
PUBLIC LAW 102-325—JULY 23, 1992 
"(i) such institution's campus sexual assault programs, which 
shall be aimed at prevention of sex offenses; and 
''(ii) the procedures followed once a sex offense has occurred. 
*
*
(
B
) The poUcy described in subparagraph (A) shall address the 
following areas: 
"(i) Education programs to promote the awareness of rape, 
acquaintance rape, and other sex offenses. 
"(ii) Possible sanctions to be imposed following the final deter-
mination of an on-campus disciplinary procedure regarding 
rape, acquaintance rape, or other sex offenses, forcible or 
nonforcible. 
"(iii) Procedures students should follow if a sex ofifense occurs, 
including who should be contacted, the importance of preserving 
evidence as may be necessary to the proof of criminal sexusQ 
assault, and to whom the alleged offense should be reported. 
''(iv) Procedures for on-campus disciplinary action in cases 
of alleged sexual assault, which shall include a clear statement 
that— 
"(I) the accuser and the accused are entitled to the same 
opportunities to have others present during a campus dis-
ciplinary proceeding; and 
"(II) both the accuser and the accused shall be informed 
of the outcome of any campus disciplinary proceeding 
brought alleging a sexual assault. 
"(v) Informing students of their options to notify proper law 
enforcement authorities, including on-campus and local police, 
and the option to be assisted by campus authorities in notifying 
such authorities, if the student so chooses. 
**(vi) Notification of students of existing counseling, mental 
health or student services for victims of sexual assault, both 
on campus and in the community. 
"(vii) Notification of students of options for, and available 
assistance in, changing academic and living situations after 
an alleged sexual assaidt incident, if so requested by the victim 
and if such changes are reasonably available. 
"(C) Notlung in this paragraph shall be construed to confer a 
private right of action upon any person to enforce the provisions 
of this paragraph.". 
5f??^"iAQo 
^^^ EFFECTIVE DATE PROVISION.—The amendment made by 
note 
*^s subsection to subparagraph (F)(ii) of section 485(f)(1) of 
the Act shall be effective witii respect to reports made pursuant 
to such section on or after September 1, 1993. The statistics 
requiredby subparagraph (F) of such section shall— 
(A) in the report required on September 1, 1992, include 
statistics concerning the occurrence on campus of offenses 
during the period from August 1, 1991, to July 31, 1992; 
(B) in the report required on September 1, 1993, include 
statistics concerning the occurrence on campus of offenses 
during (i) the period from August 1, 1991, to December 
31,1991, and (ii) the calendar year 1992; 
(C) in the report required on September 1, 1994, include 
statistics concerning the occurrence on campus of offenses 
during (i) the period from August 1, 1991, to December 
31, 1991, and (ii) the calendar years 1992 and 1993; and 
(D) in the report required on September 1 of 1995 and 
each succeeding year, include statistics concerning the 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 623 
occurrence on campus of offenses during the three calendar 
years preceding the year in which the report is made. 
SEC. 487. NATIONAL STUDENT LOAN D
A
T
A SYSTEM. 
(a) SYSTEM DEVELOPMENT.—Section 485B(a) of the Act (20 U.S.C. 20 use I092b. 
1093(a)) is amended in the matter preceding paragraph (1) by 
striking "and loans made under part E" and inserting "and loans 
made under part E, and for allowing the electronic exchange of 
data between program participants and the system. In establishing 
such data system, the Secretary shall place a priority on providing 
for the monitoring of enrollment, student status, information about 
current loan holders and servicers, and internship and residency 
information. Such data system shall eilso permit borrowers to use 
the system to identify the current loan holders and servicers of 
such borrower's loan.". 
(b) STANDARDIZATION OF DATA REPORTING; USE OF COMMON 
IDENTIFIERS; INTEGRATION OF SYSTEMS.—Section 485B of the Act 
is amended by adding at the end the following new subsections: 
"(e) STANDARDIZATION OF DATA REPORTING.— 
"(1) IN GENERAL.—The Secretary shall by regulation prescribe Regulations, 
standards and procedures (including relevant definitions) that 
require all lenders and guaranty agencies to report information 
on all aspects of loans made imder this part in uniform formats 
in order to permit the direct comparison of data submitted 
by individual lenders, servicers or guaranty agencies. 
"(2) ACTIVITIES.—For the purpose of establishing standards 
under this section, the Secretary shall— 
"(A) consult with guar£inty agencies, lenders, institutions 
of higher education, and organizations representing the 
groups described in paragraph (1); 
"(B) develop standards designed to be implemented by 
aU guaranty agencies and lenders with minimum modifica-
tions to existing data processing hardware and software; 
and 
"(C) pubhsh the specifications selected to be used to 
encourage the automation of exchanges of information 
between all parties involved in loans under this part. 
"(f) COMMON IDENTIFIERS.—The Secretary shall, not later than 
July 1,1993— 
"(1) revise the codes used to identify institutions and students 
in the student loan data system authorized by this section 
to make such codes consistent with the codes used in each 
database used by the Department of Education that contains 
information of participation in programs under this title; and 
"(2) modify the design or operation of the system authorized 
by this section to ensure that data relating to any institution 
is readily accessible and c£m be used in a form compatible 
with the integrated postsecondary education data system 
(IPEDS). 
"(g) INTEGRATION OF DATABASES.—The Secretary shall integrate 
the National Student Loan Data System with the Pell Grant 
applicant and recipient databases as of January 1, 1994, £ind any 
other databases containing information on participation in programs 
imder this title.". 
106 STAT. 624 
PUBLIC LAW 102-325—JULY 23, 1992 
SEC. 488. SIMPLIFICATION OF THE LENDING PROCESS FOR BORROW-
ERS. 
Part G of title IV of the Act (20 U.S.C. 1088 et seq.) is amended 
by inserting after section 485B the following new section: 
20 use 1092c. 
«SEC. 485C. SIMPLIFICATION OF THE LENDING PROCESS FOR BORROW-
ERS. 
"(a) ALL LIKE LOANS TREATED AS ONE.—To the extent practicable, 
and with the cooperation of the borrower, eUgible lenders shall 
treat all loans made to a borrower under the same section of 
part B as one loan and shall submit one bill to the borrower 
tor the repajnnent of all such loans for the monthly or other similar 
period of repayment. Any deferments on one such loan will be 
considered a deferment on the total amount of all such loans. 
"(b) ONE LENDER, ONE GUARANTY AGENCY.—TO the extent prac-
ticable, and with the cooperation of the borrower, the guaranty 
agency shall ensure that a borrower only have one lender, one 
holder, one guaranty agency, and one servicer with which to main-
tain contact. . 
SEC. 489. TRAINING IN FINANCIAL AID SERVICES. 
Section 486 of the Act (20 U.S.C. 1093) is amended to read 
as follows: 
<<SEC. 486. TRAINING IN FINANCIAL AID SERVICES. 
"(a) PROGRAM AUTHORITY.—^The Secretary is authorized to provide 
grants to appropriate nonprofit private organizations or com-
binations of such organizations to provide trainmg for student finan-
cial aid administrators and TRIO personnel, at all levels of experi-
ence, who provide or are involved in student financial aid services. 
"(b) USE OF FUNDS.—Financial assistance under this section may 
be used for— 
"(1) the operation of short-term training institutes and special 
training programs for student financial aid administrators or 
TRIO personnel designed t o ^ 
"(A) improve the professional management skills of par-
ticipants m such institutes and programs; 
"(B) improve the deUvery of student services; 
"(C) improve students' or prospective students' informa-
tion on the availabiUty and operation of student financial 
assistance programs; and 
"(D) improve the understanding and knowledge of the 
participants concerning the legislative and regulatory 
requirements of the student financial assistance programs 
and changes in such requirements; and 
"(2) the development of appropriate training materials. 
"(c) LIMITATIONS.—Grants authorized under this section— 
"(1) shall be limited to not less than $1,000,000 in the case 
of single-year grants; 
"(2) shall be limited to not less than $1,000,000 per year 
in the case of multiple-year grants; 
"(3) shall be limited to a maximum of 3 years in the case 
of multiple-year grants; and 
"(4) may be renewed at the discretion of the Secretary. 
"(d) AUTHORIZATION OF APPROPRIATIONS AND USE OF FUNDS.— 
There are authorized to be appropriated $5,000,000 for fiscal year 
1993 and such sums as may be necesseiry for each of the 4 succeed-
ing fiscal years to carry out the provisions of this section.". 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 625 
SEC. 490. PROGRAM PARTICIPATION AGREEMENTS. 
(a) IN GENERAL.—Section 487(a) of the Act (20 U.S.C. 1094(a)) 
is amended— 
(1) in paragraph (3), by inserting before the period a comma 
and the following: "together with assursinces that the institution 
wiU provide, upon request and in a timely fashion, information 
relatmg to the administrative capability and financial respon-
sibility of the institution t o ^ 
"(A) the Secretary; 
"(B) the appropriate State review entity designated imder 
subpart 1 of 
part H; 
"(C) the appropriate guaranty agency; and 
"(D) the appropriate accrediting agency or association"; 
(2) in paragrapn (8)— 
(A) by striking "at or before the time of application," 
and inserting "at or before the time of application (A)"; 
and 
(B) by inserting before the period at the end the following: 
", £uid (B) relevant State licensing requirements of the 
State in which such institution is located for any job for 
which the course of instruction is designed to prepare such 
prospective students"; and 
(3) by adding at the end the following new paragraphs: 
"(13) The institution will not deny any form of Federal finan-
cial aid to any student who meets the eUgibihty requirements 
of this title on the grounds that the student is participating 
in a program of study abroad approved for credit by the institu-
tion. 
"(14)(A) The institution, in order to participate as an eligible 
institution imder part B, will develop a Default Management 
Plan for approval by the Secretary as part of its initial applica-
tion for certification as an eligible institution and will imple-
ment such Plan for two years thereafter. 
"(B) Any institution of higher education which changes owner-
ship and any eligible institution which changes its status as 
a parent or subordinate institution shall, in order to participate 
as an eligible institution under part B, develop a Default Man-
agement Plan for approval by the Secretary and implement 
such Plsin for two years after its change of ownership or status. 
"(15) The institution acknowledges the authority of the Sec-
retary, guaranty agencies, lenders, accrediting agencies, the 
Secretary of Veterans Affairs, and State review entities imder 
subpart 1 of part H to share with each other any information 
pertaining to the institution's eUgibility to participate in pro-
grams under this title or any information on fraud and abuse. 
"(16)(A) The institution will not knowingly employ an individ-
ual in a capacity that involves the administration of programs 
under this title, or the receipt of program funds under this 
title, who has been convicted of, or has pled nolo contendere 
or guilty to, a crime involving the acquisition, use, or expendi-
ture of funds imder this title, or has been judicially determined 
to have committed fraud involving funds under this title or 
contract with an institution or third party servicer that has 
been terminated imder section 432 involving the acquisition, 
use, or expenditure of funds under this title, or who has been 
judicially determined to have committed fraud involving funds 
under this title. 
106 STAT. 626 
PUBLIC LAW 102-325—JULY 23, 1992 
"(B) The institution will not knowingly contract with or 
employ any individual, agency, or organization that has been, 
or whose officers or employees have been— 
"(i) convicted of, or pled nolo contendere or guilty to, 
a crime involving the acquisition, use, or expenditure of 
funds under this title; or 
"(ii) judicially determined to have committed fraud 
involving funds under this title. 
"(17) The institution will complete surveys conducted as a 
part of the Integrated Postsecondary Education Data System 
(IPEDS) or any other Federal postsecondary institution data 
collection effort, as designated by the Secretary, in a timely 
manner and to the satisfaction of the Secretary. 
"(18)(A) With respect to any institution that offers athleticsdly 
related student aid, the instikition will— 
"(i) cause an sinnual compilation, independently audited 
not less often than every 3 yeeirs, to be prepared within 
6 months after the end of its fiscal year, o
f
— 
"(I) the total revenues, and the revenues from foot-
ball, men's basketbedl, women's basketball, all other 
- men's sports combined, and all other women's sports 
combined, derived by the institution from its intercolle-
giate athletics activities; 
"(II) the total expenses, and the expenses attrib-
utable to football, men's basketball, women's basket-
ball, all other men's sports combined and all other 
women's sports combined, made by the institution for 
its intercollegiate athletics activities; and 
"(III) the total revenues and operating expenses of 
the institution; and 
"(ii) make the reports on such compilations and, where 
allowable by State law, the audits, available for inspection 
by the Secretary and the pubKc. 
"(B) For the purpose of subparagraph (A)— 
"(i) revenues from intercollegiate athletics activities 
allocable to a sport shall include without limitation gate 
receipts, broadcast revenues, appearance guarantees and 
options, concessions and advertising, but revenues such 
as student activities fees or alumni contributions not so 
allocable shall be included in the calculation of total reve-
nues only; and 
"(ii) expenses for intercollegiate athletics activities edloca-
ble to a sport shall include without Kmitation grants-in-
aid, salaries, travel, equipment, and supplies, but expenses 
such as general and administrative overhead not so alloca-
ble shall be included in the calculation of total expenses 
only. 
"(19) The institution will not impose any penalty, including 
the assessment of late fees, the denial of access to classes, 
libraries, or other institutional facilities, or the requirement 
that the student borrow additional funds, on any student 
because of the student's inability to meet his or her financial 
obligations to the institution as a result of the delayed disburse-
ment of the proceeds of a loan made imder this title due 
to compUance with the provisions of this title, or delays attrib-
utable to the institution. 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 627 
**(20) The institution will not provide any commission, bonus, 
or other incentive payment based directly or indirectly on suc-
cess in securing enrollments or financial aid to any persons 
or entities engaged in any student recruiting or admission 
activities or in making decisions regarding the award of student 
financial assistance, except that this paragraph shall not apply 
to the recruitment of foreign students residing in foreign coun-
tries who are not eUgible to receive Federal student assistance. 
"(21) The institution will meet the requirements estabUshed 
by the Secretary, State postsecondary review entities, and 
accrediting agencies pursuant to part H of this title. 
"(22) The institution will comply with the refimd poUcy estab-
lished pursuant to section 4846.". 
(b) HEARINGS.—Section 487 of the Act is amended— 
20 use 1094. 
(1) in subsection (b)(2), by striking out "on the record"; and 
(2) in subsection (c>— 
(A) in the matter preceding subparagraph (A) of para-
graph (1), by striking "is authorized to and inserting 
"shall"; 
(B) in paragraph (1)(D), by striking out "on the record," 
and inserting in ueu thereof a comma; 
(C) in paragraph (1)(F), by striking out "on the record"; 
and 
(D) in paragraph (2)— 
(i) in subparagraph (A), by striking out "on the 
record," and inserting in Ueu thereof a comma; and 
(ii) in subparagraph (BXi), by striking out "on the 
record," and inserting in lieu thereof a comma. 
(c) 
AUDITS; AVAILABILITY OF AUDIT INFORMATION.—Section 
487(c)(l)(A)(i) of the Act is amended— 
(1) by striking "a financial and compliance audit of an eUgible 
institution," and inserting "a financial audit of an eUgible 
institution with regard to the financial condition of the institu-
tion in its entirety, and a compUance audit of such institution"; 
(2) by striking "at least once every 2 years" and inserting 
"on at least an annual basis"; and 
(3) by inserting "and shaU be available to cognizant guaranty 
agencies, eUgible lenders. State agencies, and the State review 
entities referred to in subpart 1 of part H" after "submitted 
to the Secretguy". 
(d) INFORMATION.—Section 487(c) of the Act is amended— 
(1) in paragr£mh (1)(B), by inserting ", including any matter 
the Secretary deems necessary to the sound amninistration 
of the financial aid programs, such as the pertinent actions 
of any owner, shareholder, or person exercising control over 
an eUgible institution" before the semicolon at the end tiiereof; 
(2) in paragraph (1), by redesignating subparagraphs (C) 
through (G) as subparagraphs (E) through (1), respectively; 
(3) by inserting jrfter subparagraph (B) of such paragraph 
the foUowing new subparagraphs: 
"(C)(i) except as provided m clause (u), a compUance audit R^uiations. 
of a third party servicer (other than with respect to the 
servicer's fimctions as a lender if such functions are otherwise 
audited under this part and such audits meet tiie requirements 
of this clause), wim regard to any contract with an eUgible 
institution, guaranty agency, or lender for administering or 
servicing any aspect of the student assistance programs under 
"" 
106 STAT. 628 
PUBLIC LAW 102-325—JULY 23, 1992 
this title, at least once every year and covering the period 
since the most recent audit, conducted by a qualified, independ-
ent organization or person in accordance with standards estab-
Ushed by the Comptroller Genersil for the audit of governmental 
organizations, programs, and functions, and as prescribed in 
regulations of the Secretary, the resiilts of which shall be 
submitted to the Secretary; or 
"(ii) with regard to a third party servicer that is audited 
under chapter 75 of title 31, United States Code, such audit 
shall be deemed to satisfy the requirements of clause (i) for 
the period covered by such audit; 
Regulations. 
"(D)(i) a compliance audit of a secondary market with regard 
to its transactions involving, and its servicing and collection 
of, loans made xmder this title, at least once a year and covering 
h,- the period since the most recent audit, conducted by a qualified, 
independent organization or person in accordance with stand-
ards established by the Comptroller General for the audit of 
governmental organizations, programs, and functions, and as 
prescribed in regulations of the Secretary, the results of which 
i shall be submitted to tiie Secretary; or 
"(ii) with regard to a secondary market that is audited under 
chapter 75 of title 31, United States Code, such audit shall 
be deemed to satisfy the requirements of clause (i) for the 
period covered by the audit;"; 
(4) in subparagraph (H) (as redesignated) of such paragraph, 
by striking out "an individual or an organization" and inserting 
in Ueu thereof "a third party servicer"; 
(5) in subparagraph (I) (as redesignated) of such paragraph, 
• 
by striking out "an individual or an organization" £ind inserting 
in Ueu thereof "a third party servicer"; 
(6) in paragraph (3), by inserting ", after consultation with 
each State review entity designated under subpart 1 of part 
H," after "shall publish"; 
(7) by redesignating paragraphs (2) and (3) as paragraphs 
(3) and (4), respectively; 
(8) by inserting immediately after paragraph (1) the following 
new paragraph: 
"(2) If an individual who, or entity that, exercises substantial 
control, as determined by the Secretary in accordance with the 
definition of substantial control in subpart 3 of part H, over one 
or more institutions participating in any program under this title, 
or, for pxirposes of paragraphs (1) (H) and (I), over one or more 
organizations that contract with an institution to administer any 
aspect of the institution's student assistance program under this 
title, is determined to have committed one or more violations of 
the requirements of any program under this title, or has been 
suspended or debarred in accordance with the regulations of the 
Secretary, the Secretsiry may use such determination, suspension, 
or debarment as the basis for imposing an emergency action on, 
or limiting, suspending, or terminating, in a single proceeding, 
the participation of any or all institutions under the substantial 
control of that individual or entity."; and 
(9) by adding at the end the following new paragraphs: 
"(5) The Secretary shall make readily available to appropriate 
guaranty agencies, eligible lenders. State review entities designated 
^ 
under subpart 1 of part H, and accrediting agencies or associations 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 629 
the results of the audits of eligible institutions conducted pursuant 
to paragraph (1)(A). 
(6) The Secretary is authorized to provide any information col-
lected as a result of au(Uts conducted under this section, together 
with audit ii^ormation collected by guaranty agencies, to any Fed-
eral or State agency having responsibiUties wim respect to student 
financial assistance, includmg those referred to in subsection (a)(15) 
of this section.". 
"(7) Effective with respect to any audit conducted under this Effective date, 
subsection ^ter December 31, 1988, if, in the course of conducting 
any such audit, the personnel of the Department of Education 
discover, or are informed of, grants or other assistance provided 
by an institution in accordance with this title for which the institu-
tion has not received funds appropriated under this title (in the 
amount necessary to provide such assistance), including funds for 
which reimbursement was not requested prior to such discovery 
or information, such institution shall be permitted to offset that 
amount against any simis determined to be owed by the institution 
pursuant to such audit, or to receive reimbursement for that amount 
(if the institution does not owe any such simis).". 
(e) CONSTRUCTION.—Section 487 of the Act, as amended by sub-
section (a), is further amended by adding at the end the following: 
"(e) CONSTRUCTION.—^Nothing in the amendments made by the 
Higher Education Amendments of 1992 shall be construed to pro-
hibit an institution from recording, at the cost of the institution, 
a hearing referred to in subsection (b)(2), subsection (c)(1)(D), or 
subparagraph (A) or (B)(i) of subsection (c)(2), of this section to 
create a record of the hearing, except the imavailability of a record-
ing shall not serve to delay the completion of the proceeding. The 
Secretary shall allow the institution to use any reasonable means, 
including stenographers, of recording the hearing.". 
(f) 
CONFORMING AMENDMENTS.—Section 487 
of the 
Act 
is 
amended— 
(1) by striking "subpart 3" in subsection (a) and inserting 
"subpart 4"; 
(2) by striking "provided for in section 483(e)" in subsection 
(aX2);and 
(3) by striking "435(a)" in subsection (d) and inserting "481". 
SEC. 491. QUALITY ASSURANCE; IDENTIFICATION NUMBERS. 
Part G of title IV of the Act is further amended by inserting 
after section 487 the following new sections: 
•«EC. 487A. QUALITY ASSURANCE PROGRAM. 
20 USC 1094a. 
"(a) IN GENERAL.—^The Secretary is authorized to select institu-
tions for voluntarjr participation in a Quality Assurance Program 
that provides participating institutions with an alternative manage-
ment approach through which individual schools develop and imple-
ment their own comprehensive systems to verify student financial 
aid appUcation data, thereby enhancing program integrity within 
the student aid deUvery system. The Quality Assurance Program 
authorized by this section shall be based on criteria that include 
demonstrated institutional performance, as determined by the Sec-
retary, and shall take into consideration current quality assurance 
goals, as determined by the Secretary. 
"(b) EXEMPTION FROM REQUIREMENTS.—The Secretary is author-
ized to exempt any institution participating in the Quality Assur-
ance Program firom any reportmg or verification requirements in 
106 STAT. 630 
PUBLIC LAW 102-325—JULY 23, 1992 
this title, and may substitute such quality assurance reporting 
as tiie Secretary deems necessary to ensure accountability ana 
complicmce with the purposes of the programs under this title. 
"(c) REMOVAL FROM THE PROGRAM.—The Secretary is authorized 
to determine— 
"(1) when an institution that is unable to administer the 
Quality Assurance Program must be removed from such pro-
gram, and 
"(2) when institutions desiring to cease participation in such 
program will be required to complete the current award year 
under the requirements of the QuaUty Assurance Program. 
"(d) EXPERIMENTAL SITES.—(1) The Secretary is authorized to 
select institutions for voluntary participation as experimental sites 
to provide recommendations to the Secretary on the impact and 
effectiveness of proposed regulations or new management ini-
tiatives. 
"(2) The Secretary is authorized to exempt any institution partici-
pating as an experimental site from any requirements in this title, 
or in regulations prescribed xmder this title, that would bias experi-
mented results. 
"(e) DEFINITIONS.—For purposes of this section, 'current award 
year* is defined as the award year during which the participating 
institution indicates its intention to cease participation. 
20 use 1094b. 
*«EC. 487B. ASSIGNMENT OF IDENTIFICATION NUMBERS. 
"The Secretary shall assign to each participant in title IV pro-
grams, including institutions, lenders, and guaranty agencies, a 
single Department of Education identification number to be used 
to identity its participation in each of the title IV programs.". 
SEC. 492. INTER-PROGRAM TRANSFERS. 
Section 488 of the Act (20 U.S.C. 1095) is amended by striking 
the first sentence and inserting the following: "In order to offer 
an arrangement of types of aid, including institutional and State 
aid which best fits the needs of each individual student, an institu-
tion may (1) transfer a total of 25 percent of the institutions 
allotment under section 462 to the institution's allotment under 
section 413D or 442 (or both); and (2) transfer 25 percent of the 
institution's allotment imder section 442 to the institution's allot-
ment imder section 413D. Funds transferred to an institution's 
allotment under another section may be used as a part of and 
for the same purposes as fiinds allotted under that section.". 
SEC. 493. ADMINISTRATIVE EXPENSES. 
(a) ADMINISTRATIVE EXPENSES.—Section 489(a) of the Act is 
amended— 
20 use 1096. 
(1) in the second sentence, by striking "(other than section 
447)"; 
(2) by striking the fourth sentence (relating to pa3mients 
with respect to section 447); and 
(3) by striking "subpart 2" each place it appears and inserting 
"subparts". 
(b) NONTRADITIONAL STUDENTS.—Section 489(b) of the Act (20 
U.S.C. 1096) is amended— 
(1) by inserting "(1)" before "The sums"; and 
(2) by adding at tiie end the following new paragraph: 
"(2) If the institution enrolls a significant number of students 
who are (A) attending the institution less than full time, or (B) 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 631 
independent students, the institution shall use a reasonable propor-
tion of the funds available under this section for financial aid 
services during times and in places that will most effectively 
accommodate the needs of such students/'. 
SEC. 494. REPEAL. 
Section 489A of the Act is repealed. 
20 use 1096a. 
SEC. 495. CRIMINAL PENALTIES. 
Section 490 of the Act (20 U.S.C. 1097) is amended to read 
as follows: 
"(a) IN GENERAL.—^Any person who knowingly and willfully 
embezzles, misappUes, steals, obtains by fraud, false statement, 
or forgery, or fails to refund any funds, assets, or property provided 
or insured under this title or attempts to so embezzle, misapply, 
steal, obtain by fraud, false statement or forgery, or fail to refund 
any funds, assets, or property, shall be fined not more than $20,000 
or imprisoned for not more than 5 years, or both, except if the 
amount so embezzled, misapplied, stolen, obtained by fraud, false 
statement, or forgery, or failed to be refunded does not exceed 
$200, then the fine shall not be more than $5,000 and imprisonment 
shall not exceed one year, or both. 
"(b) ASSIGNMENT OF LOANS.—^Any person who knowingly and 
willfiilly makes any false statement, mmishes any false informa-
tion, or conceals any material information in connection with the 
assignment of a loan which is made or insured under this title 
or attempts to so make any false statement, furnish any false 
inforination, or conceal any material information in connection with 
such assignment shall, upon conviction thereof, be fined not more 
than $10,000 or imprisoned for not more than one year, or both. 
"(c) INDUCEMENTS TO LEND OR ASSIGN.—Any person who know-
ingly and willfully makes an unlawful payment to an ehgible lender 
under part B or attempts to make such unlawful payment as 
an inducement to make, or to acquire by assignment, a loan insured 
under such part shall, upon conviction thereof, be fined not more 
than $10,000 or imprisoned for not more than one year, or both. 
"(d) OBSTRUCTION OF JUSTICE.—^Any person who knowingly and 
willfiilly destroys or conceals any record relating to the provision 
of assistance under this title or attempts to so destroy or conceal 
with intent to defraud the United States or to prevent the United 
States from enforcing any right obtcdned by subrogation imder 
this part, shall upon conviction thereof, be fined not more than 
$20,000 or imprisoned not more than 5 years, or both.". 
SEC. 496. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSIST-
ANCE. 
(a) INDEPENDENT CONTROL.—Section 491(b) of the Act (20 U.S.C. 
1098) is amended by inserting after the first sentence the following: 
"Notwithstanding Department of Education policies and regulations, 
the Advisory Committee shall exert independent control of its 
budget allocations and expenditures, personnel decisions and proc-
esses, procurements, and other administrative and management 
functions. The Advisory Committee's administration and manage-
ment shall be subject to the usual and customary Federal audit 
procedures.". 
(b) FUNCTIONS; MEMBERSHIP.—Section 491(d) of the Act is 
amended— 
106 STAT. 632 
PUBLIC LAW 102-325—JULY 23, 1992 
(1) by striking "and in assessing the impact of legislative 
and administrative policy proposals" in paragraph (3); 
(2) by redesignating paragraphs (4), (5), (6), and (7) as para-
graphs (5), (6), (7), and (8), respectively; and 
(3) by inserting after paragraph (3) the following new para-
graph: 
"(4) assess the impact of legislative and administrative policy 
proposals;"; 
(4) by striking "and" at the end of paragraph (7) (as redesig-
nated); 
(5) by striking the period at the end of peiragraph (8) (as 
redesignated) and inserting a semicolon and "and"; and 
(6) by adding at the end the following new paragraph— 
"(9) make special efforts to advise Members of Congress and 
such Members' staff of the findings and recommendations made 
pursuant to this paragraph.". 
20 use 1098. 
(c) EXEMPTION.—Section 491(h)(4) of the Act is amended— 
(1) by striking "in accordance with" and inserting "without 
regard to"; and 
(2) by inserting "and to set pay in accordance with such 
section" before the period. 
(d) AVAILABILITY OF FUNDS.—Section 491(i) of the Act is amended 
by striking "$500,000" and inserting "$750,000". 
(e) ADDITIONAL PROVISIONS.—Section 491 of the Act is amended 
by striking subsection (j) and inserting in lieu thereof: 
"(j) SPECIAL ANALYSES AND ACTIVITIES.—The committee shall— 
"(1) monitor and evaluate the program modifications resulting 
fi-om the enactment of the Higher Education Amendments of 
1992, especially as such amendments relate to the need analy-
sis; 
"(2) monitor and evaluate the implementation, pursuant to 
section 483, of a Free Application for Federal Student Aid 
and the process for determining eligibility and awards for pro-
grams under this title, including a simplified reapplication proc-
ess; 
"(3) assess the adequacy of current methods for disseminating 
information about programs under this title and recommend 
improvements, as appropriate, regarding early needs assess-
ment and information for first-year high school students; and 
"(4) assess the adequacy of methods of monitoring student 
debt burden, 
"(k) TERM OF THE COMMITTEE.—Notwithstanding the sunset and 
charter provisions of the Federal Advisory Committee Act (5 U.S.C. 
App. I) or any other statute or regulation, the Advisory Committee 
shall be authorized until October 1,1998. 
"(1) STUDENT LOAN PROGRAM SIMPLIFICATION STUDY.—(1) The 
Advisory Committee shall conduct a thorough study of means of 
simplifying all aspects of the loan programs under part B of this 
title. In carrying out the study, the Advisory Committee shall 
examine, at a minimum— 
"(A) reduction of paperwork burdens experienced by financial 
aid administrators resulting fi-om the current structure of such 
loan programs; 
"(B) promotion of simplification and standardization of forms, 
procedures, and all other aspects of guaranty agency operations 
for the purpose of facilitating data exchanges with such agencies 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 633 
20 use 1098a. 
(including the National Student Loan Database) and facilitating 
Department of Education oversight; 
(C) simplification of the repayment process to minimize bor-
rower conmsion, including encouragement of single holder own-
ership of all of an individual's loans; 
"(D) encouragement of efficient utilization of loan programs 
to minimize multiple program borrowing in postsecondary edu-
cation; and 
"(E) other proposals which are designed to reduce the 
administrative burdens on, and paperwork required of, stu-
dents, educational institutions, guaranty agencies, lenders, sec-
ondary markets, and the Secretary submitted in response to 
a general solicitation by the Advisory Committee. 
"(2) The Advisory Committee shall consult with the Committee 
on Education and Labor of the House of Representatives and the 
Committee on Labor and Human Resources of the Senate in carry-
ing out the study required by this subsection. 
(3) The Advisory Committee shall, not later than 1 year after Reports, 
the date of enactment of this Act, prepare and submit to the 
Committee on Education and Labor of the House of Representatives 
and the Committee on Labor and Human Resources of the Senate 
a report on the study required by this subsection.". 
SEC. 497. REGIONAL MEETINGS; NEGOTIATED RULEMAKING; ADMINIS-
TRATIVE EXPENSES. 
Part G of title IV of the Act is further amended by adding 
at the end the following new sections: 
"SEC. 492. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING. 
"(a) MEETINGS.— 
"(1) IN GENERAL.—The Secretary shall convene regional meet-
ings to obtain public involvement in the development of pro-
posed regulations for parts B, G, and H of this title. Such 
meetings shall include individuals and representatives of the 
groups involved in student financial assistance pro-ams under 
this title, such as students, legal assistance organizations that 
represent students, institutions of higher education, guaranty 
agencies, lenders, secondary markets, loan servicers, guaranty 
agency servicers, and collection agencies. 
"(2) ISSUES.—During such meetings, the Secretary shall pro-
vide for a comprehensive discussion and exchange of informa-
tion concerning the implementation of parts B, G, and H, as 
amended by the Higher Education Amendments of 1992. The 
Secretary shall take into account the information received at 
such meetings in the development of proposed regulations and 
shall publish a summary of such information in the Federal 
Register together with such proposed regulations. 
"(b) DRAFT REGULATIONS.—^After holding regional meetings and 
before publishing proposed regulations in the Federal Register, 
the Secretary shall prepare draft regulations implementing parts 
B, G, and H of this title as amended by the Higher Education 
Amendments of 1992 and shall submit such regulations to a nego-
tiated rulemaking process. The Secretary shall follow the guidance 
provided in sections 305.82-4 and 305.85-5 of chapter 1, Code 
of Federal Regulations, and any successor recommendation, regula-
tion, or law. Participants in the negotiations process shall be chosen 
by the Secretary 
fi*om 
individuals nominated by groups participating 
in the regional meetings described in subsection (a)(1), and shall 
Federal 
Register, 
publication. 
106 STAT. 634 
PUBLIC LAW 102-325—JULY 23, 1992 
include both representatives of such groups from Washington, D.C., 
and industry pcuiicipants. To the extent possible, the Secretary 
shall select individuals reflecting the diversity in the industry, 
representing both large £uid small participants, as well as individ-
uals serving local areas and national markets. The negotiation 
process shall be conducted in a timely manner in order that the 
final regulations mav be issued by the Secretary within the 240-
day period described in section 431(g) of the General Education 
Provisions Act. 
"(c) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.—The 
Federal Advisory Committee Act shall not apply to activities carried 
out under this section. 
"(d) AUTHORIZATION OP APPROPRIATIONS.-—There are authorized 
to be appropriated in any fiscal year or made available from funds 
appropriated to carry out this part in any fiscal year such sums 
as may be necessary to C
£
U
*
r
y out the provisions of this section, 
except that if no funds are appropriated pursuant to this subsection, 
the Secretary shall make funds available to carry out this section 
from amoimts appropriated for the operations and expenses of 
the Department of Education. 
20 use 1098b. 
"SEC. 493. AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRA-
TIVE EXPENSES. 
"There are authorized to be appropriated such sums as may 
be necessary for fisced year 1993 ana for each succeeding fiscal 
year thereafter for administrative expenses necess£uy for carrying 
out this title, including expenses tor staff personnel, program 
reviews, and compliance activities.". 
20 use 1088 
SEC. 498. EFFECTIVE DATES FOR AMENDMENTS TO PART G. 
The changes made in part G of title IV of the Act by the amend-
ments made by this part shall take efiect on the date of enactment 
ofthis Act, except that— 
(1) as otherwise provided in such part G; 
(2) the changes in section 481(a), relating to the definition 
of institution of higher education, other than paragraph (4) 
of such section, shall be effective on £ind after October 1, 1992; 
(3) section 481(e) as added by such simendments, relating 
to the definition of eligible program, shall be efiiective on and 
after July 1,1993; 
(4) section 484(m)(l), relating to proportion of courses per-
mitted to be correspondence courses, as added by such amend-
ments shall be efiiective on and after October 1,1992; 
(5) the changes in section 485, relating to disclosures, shall 
be effective with respect to periods of enrollment beginning 
on or after July 1,1993; 
(6) the changes in section 488, relating to transfers of edlot-
ments, shall apply with respect to fiinds provided for award 
yecirs beginning on or after July 1,1993; ana 
(7) the changes in section 489, relating to payments for 
administrative expenses, shall apply with respect to funds pro-
vided for award years beginning on or after July 1, 1993. 
PART H—PROGRAM INTEGRITY 
SEC. 499. ESTABLISHMENT OF NEW PART H. 
Title IV of the Act is amended by adding at the end the following 
new part: 
Contracts. 
20 u s e 1099a. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 635 
"PART H—PROGRAM INTEGRITY TRIAD 
"Subpart 1—State Postsecondary Review Program 
<«EC. 494. STATE POSTSECONDARY REVIEW PROGRAM. 
"(a) PURPOSE.—It is the purpose of this section to authorize 
the Secretary to enter into agreements that— 
"(1) designate one State postsecondary review entity in each 
State to be responsible for the conduct or coordination of the 
review under section 494C(d) of institutions of higher education, 
reported to the State by the Secretary pursuant to section 
494C(a), for the purposes of determining eligibiUty under this 
title; and 
"(2) provide Federal funds to each State postsecondary review 
entity for performing the functions required by such agreements 
with the Secretary. 
"(b) PROGRAM AUTHORITY.—The Secretary shall, in accordance 
with the provisions of this subpart, enter into agreements with 
each of the States to carry out the purposes of this subpart. If 
any State declines to enter into an agreement with the Secretary 
for the purposes of this subpart, the provisions of this subpart 
which refer to the State, with respect to such State, shall refer 
to the Secretary, who may make appropriate arrangements with 
agencies or organizations of demons^ated competence in reviewing 
institutions of higher education. 
"(c) FAILURE TO COMPLY WITH AGREEMENT.—If a State fails 
to enter into an agreement under this section or fails to meet 
the requirements of its agreement with the Secretary under this 
subpart— 
"(1) the Secretary— 
"(A) may not designate as eligible for participation in 
any program under this title any new institution (including 
new branch campuses) or an^ institution that has changed 
ownership, pursuant to section 481 and subpart 3 of this 
part; and 
"(B) may grant only provisional certification for all 
institutions in the State pursuant to subpart 3 of this 
part; and 
"(2) the State shall be ineUgible to receive funds imder section 
494B of this subpart, subpart 4 of part A of this title, and 
chapter 2 of subpsui; 2 of part A of this title. 
<*SEC. 494A. STATE POSTSECONDARY REVIEW ENTITY AGREEMENTS. 20 USC 1099a-l. 
"(a) STATE ORGANIZATION STRUCTURES.—(1) Each agreement 
imder this subpart shall describe a State organizational structure 
responsible for carrying out the review under section 494C(d) of 
institutions reported to the State by the Secretary pursuant to 
section 494C(a). Each such entity's action in reviewing such institu-
tions shall, for purposes of this subpart, be considered to be the 
action of the State. 
"(2) For the purposes of this subpart, the designation of a State 
postsecondary review entity for the purpose of entering into an 
agreement with the Secretary shall be in accordance with the 
State law of each individual State with respect to the authority 
to make legal agreements between the State and the Federal Gov-
ernment. 
106 STAT. 636 
PUBLIC LAW 102-325—JULY 23, 1992 
"(3) Except as provided in paragraph (6), nothing in this subpart 
shall be construed to authorize the Secretary to require any State 
to adopt, as a condition for entering into an agreement, a specific 
State organizational structure. 
"(4) Except as provided in paragraph (6), nothing in this subpart 
shall be construed— 
"(A) as a limitation on the authority of any State to adopt 
a State organization structure for postsecondary education 
agencies, or programs, or institutions of higher education as 
appropriate to the needs, traditions, and circumstances of that 
State: 
"(B) as a limitation on the authority of a State entering 
into an agreement pursuant to this subpart to modify the 
State organizational structure at any time subsequent to enter-
ing into such agreement; 
"(C) as a limitation on the authority of £iny State to enter 
into an agreement for purposes of this subpart as a member 
of a consortiimi of States; 
"(D) as an authorization for the Secretary to withhold funds 
from any State or postsecondary institution on the basis of 
compliance with a State's constitution or laws; 
"(E) as an authorization for any State postsecondary review 
entity to exercise planning, policy, coordinating, supervisory, 
budgeting, or admmistrative powers over any postsecondary 
institution; or 
"(F) as a limitation on the use of State audits for the puipose 
of compliance with applicable standards imder section 494C(d). 
"(5) Nothing in this subpart shall be construed to limit the author-
ity or activities of any State loan insurance program established 
under section 428(b) of this title or of any relevant State licensing 
authority which grants approval for institutions of higher education 
to operate within a State or their authority to contact the Secretary 
directly. 
"(6) Notwithstanding the provisions of paragraphs (2), (3), and 
(4) of this subsection, the Secretary may require each State to 
designate an entity responsible for the conduct or coordination 
of the review of institutions under this title. 
"(b) CONTENTS OF AGREEMENTS.—^Agreements between each State 
and the Secretary shall contain the following elements: 
"(1) A designation of a single State postsecondary review 
entity, which represents all entities of that State which are 
responsible for— 
"(A) granting State authorization to each institution of 
higher education in that State for the purposes of this 
title, and 
"(B) ensuring that each institution of higher education 
in that State remains in compliance with the standards 
developed pursuant to section 494C. 
"(2) Assurances that the State will review institutions of 
higher education for the purpose of determining eligibility 
under this title on a schedule to coincide with the dates set 
by the Secretary to certi^ or recertify such institutions of 
higher education as provided in section 481 and subpart 3 
of this part. 
"(3) Assurances that the appropriate State postsecondary 
review entity will perform the functions authorized by this 
subpart and will keep such records and provide such informa-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 637 
tion to the Secretary as may be requested for financial and 
compliance audits and program evaluation, consistent with the 
responsibilities of the Secretary. 
"(4) A description of the relationship between the State post-
secondary review entity designated for the purposes of this 
subpart and (A) the agency or agencies designated for the 
purposes of chapter 36 of title 38 of the United States Code, 
(B) the loan insureince program established under section 428(b) 
of this title for that State, and (C) the grant agency estabhshed 
under section 415C of this title. 
"(5) A plan for performing the functions described in section 
494C of this subpart. 
"(c) FEDERAL RESPONSIBILITY.—Notwithstanding any other provi-
sion of law, no State shaU be required to enter into an agreement 
with the Secretary under this subpart for performing the review 
functions required by such agreement unless the Congress appro-
priates funds for this subpart. 
<^EC. 494B. FEDERAL REIMBURSEMENT OF STATE POSTSECONDARY 
REVIEW COSTS. 
"(a) PAYMENTS.—Subject to subsection (b), the Secretary shall 
reimburse the States for the costs of performing the functions 
required by agreements with the Secretary authorized under this 
subpart. Such costs shall include expenses for providing initial 
ana continuing training to State personnel and other personnel 
in the State, including personnel at institutions of higher education 
subject to review, to serve the purposes of this subpart. Reimburse-
ment shall be providied for necessary activities which supplement, 
but do not supplant, existing hcensing or review functions conducted 
by the State. The Secretary shall also reimburse such entities 
for work performed by their subcontractors and consultants where 
such work has a direct relationship to the requirements of agree-
ments with the Secretsiry under this subpart. 
"(b) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of 
enabling the Secretary to make pa3rments to States whicn have 
made agreements wim the Secretary under this subpart, there 
is authorized to be appropriated $75,000,000 for fiscal year 1993, 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years. 
'^EC. 494C. FUNCTIONS OF STATE REVIEW ENTITIES. 
"(a) INITIAL REVIEW.—^The Secretary shall review all institutions 
of higher education in a State which are eUgible or which desire 
to become eligible under this title to determine if such institutions 
meet any of the criteria provided in subsection (b). With respect 
to those institutions of higher education that meet one or more 
of the criteria provided in subsection (b), the Secretary shall inform 
the State in which such institutions are located that the institutions 
have met such criteria, and these institutions shall be reviewed 
by the State pursuant to the standards provided in subsection 
(d). The Secretary shall supply the State with a copy of the institu-
tioned audits, required pursuant to section 487(c), for the institu-
tions which shall be reviewed by the State. In addition to those 
institutions identified by the Secretary, the State may, subject 
to approval by the Secretary, review additional institutions which 
meet one or more of the criteria provided in subsection (b), based 
on more recent data available to the State, or which the State 
has reason to beUeve are engaged in fraudulent practices. If the 
20 use 1099a-2. 
20 use 1099a-3. 
106 STAT. 638 
PUBLIC LAW 102-325—JULY 23, 1992 
Secretary fails to approve or disapprove a State request to review 
additional institutions within 21 days, the State may proceed to 
review such additional institutions as if approved by the Secretary. 
"(b) REVIEW CRITERIA.—^The criteria for the initial review of 
institutions of higher education are as follows: 
"(1) A cohort default rate (as defined in section 435(m)) 
equal to or greater than 25 percent. 
"(2) A cohort default rate (as defined in such section) equal 
to or greater than 20 percent and either— 
"(A) more than two-thirds of the institution's total under-
graduates who are enrolled on at least a half-time basis 
receive assistance imder this title (except subparts 4 and 
6 of part A); or 
"(B) two-thirds or more of the institution's education 
and general expenditures are derived fi*om fiinds provided 
to students enrolled at the institution fi*om the programs 
established under this title (except subparts 4 £ind 6 of 
part A and section 428B). 
"(3) Two-thirds or more of the institution's education and 
general emenditures are derived fi'om funds provided to stu-
dents enrolled at the institution pursuant to subpart 1 of part 
A of this title. 
"(4) A limitation, suspension, or termination action by the 
Secretary against the institution pursuant to section 487 during 
the preceding 5 years. 
"(5) An audit finding during the 2 most recent audits of 
an institution of higher education's conduct of the programs 
established by this title that resulted in the repa3maent by 
the institution of amounts greater than 5 percent of the fimds 
such institution received from the programs assisted imder 
this title for any one year. 
"(6) A citation of an institution by the Secretary for failiu'e 
to submit audits required by this title in a timely fashion. 
"(7) A year-to-year fluctuation of more than 25 percent in 
the amounts received by students enrolled at the institution 
fi*om either Federal Pell Grant, Federal Stafford Loan, or Fed-
eral Supplemental Loans to Students programs, which are not 
accounted for by changes in these programs. 
"(8) Failure to meet financial responsibiUty standards pursu-
ant to subpart 3 of this part. 
"(9) A change of ownership of the institution that results 
in a change of control which includes (but is not limited to)— 
"(A) the sale of the institution or the majority of its 
assets; 
"(B) the division of 1 or more institutions into 2 or 
more institutions; 
"(C) the transfer of the controlling interest in stock of 
the institution or its parent corporation; 
**(D) the transfer of the controlling interest of stock of 
the institution to its parent coiporation; or 
"(E) the transfer of the liabiUties of the institution to 
its parent corporation. 
"(10) Except with regard to any public institution that is 
affiliated wim a State system of higher education, participation 
in any of the programs established pursuant to subparts 1 
and 3 of part A, part B, part C, and part E of this title 
for less than 5 years. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 639 
"(11) A pattern of student complaints pursuant to subsection 
(j) related to the management or conduct of the programs 
established by this title or relating to misleading or inappropri-
ate advertising and promotion of the institution's program, 
which in the judgment of the Secretary are sufficient to justify 
review of the institution. 
"(c) USE OF RECENT DATA.—^The criteria provided for in subsection 
(b) sh£dl be measured on the basis of the most recent data available 
to the Secretary. Institutions may request verification of the data 
used by the Secretary. 
"(d) REVIEW STANDARDS.—Institutions which meet 1 or more of 
the criteria in subsection (b) shall be reviewed by the appropriate 
State entity in accordance with pubUshed State standards that 
Eire consistent with the constitution and laws of the State, developed 
in consultation with the institutions in the State, and subject to 
disapproval by the Secretary. Such review shall determine the 
following: 
"(1) The availabihty to students and prospective students 
of catalogs, admissions requirements, course outlines, schedules 
of tuition and fees, policies regarding course cancellations, £ind 
the rules and regulations of the institution relating to students 
and the accuracy of such catalogs and course outlines in reflect-
ing the courses and programs offered by the institution. 
"(2) Assurance that the institution has a method to assess 
a student's ability to successfully complete the course of study 
for which he or she has applied. 
"(3) Assurance that the institution maintains and enforces 
standards relating to academic progress and maintains ade-
quate student and other records. 
"(4) CompUance by the institution with relevant safety and 
health standards, such as fire, building, and sanitation codes. 
"(5) The financial and administrative capacity of the institu-
tion as appropriate to a specified scale of operations and the 
maintenance of adequate financial £ind other information nec-
essary to determine the financial and administrative capacity 
of the institution. 
"(6) For institutions financially at risk, the adequacy of provi-
sions to provide for the instruction of students £uid to provide 
for the retention and accessibility of academic and financial 
aid records of students in the event the institution closes. 
"(7) If the stated objectives of the courses or programs of 
the institution are to prepare students for employment, the 
relationship of the tuition and fees to the remuneration that 
C£in be reasonably expected by students who complete the coiu-se 
or program and the relationship of the courses or programs 
(inclu(fing the appropriateness of the length of such courses) 
to providing the student with quality training and useful 
emplo3rment in recognized occupations in the State. 
"(8) Availability to students of relevant information by institu-
tions of higher education, including— 
"(A) information relating to market £m.d job availability 
for students in occupational, professional, and vocational 
programs; and 
"(B) information regarding the relationship of courses 
to specific standards necessary for State licensure in spe-
cific occupations. 
106 STAT. 640 
PUBLIC LAW 102-325—JULY 23, 1992 
"(9) The appropriateness of the number of credit or clock 
hours required for the completion of programs or of the length 
of 600-hour courses. 
"(10) Assessing the actions of any owner, shareholder, or 
person exercising control over the educational institution which 
may adversely aSect eUgibility for progreuns under this title. 
"(11) The adequacy of procedures for investigation and resolu-
tion of student complaints. 
"(12) The appropriateness of advertising and promotion and 
student recruitment practices. 
"(13) That ihe institution has a fair and equitable refund 
poUcy to protect students. 
"(14) The success of the program at the institution, 
including— 
"(A) the rates of the institution's students' program com-
pletion and graduation, taking into account the length of 
the program at the institution and the selectivity of the 
institution's admissions pohcies; 
"(B) the withdrawal rates of the institution's students; 
"(C) with respect to vocational and professional programs, 
the rates of placement of the institution's graduates in 
occiipations related to their course of study; 
"(D) where appropriate, the rate at which the institution's 
graduates pass ucensure examinations; and 
"(E) the variety of student completion goals, including 
transfer to another institution of higher education, full-
time employment in the field of study, and military service. 
"(15) With respect to an institution which meets 1 or more 
of the criteria in subsection (b), the State shall contract with 
the appropriate approved accrediting agency or association 
(described in subpart 2 of this part) or another peer review 
system with demonstrated competence in assessing programs 
(pursuant to the authority contained in subsection (f)) to carry 
out a review or provide information regarding such agency's 
or association's assessment of the following: The quaUty and 
content of the institution's courses or programs of instruction, 
training, or study in relation to achieving the stated objectives 
- 
for which the courses or progreuns sire offered, including the 
adequacy of the space, equipment, instructional materials, staff, 
and student support services (including student orientation, 
coimseling, and advisement) for providing education and train-
ing that meets such stated objectives. 
"(e) SUBSTITUTIONS PROHIBITED.—The appropriate State post-
secondary review entity may not substitute either (1) accreditation 
by a private accrediting agency or body, or (2) compliance audits 
performed by a State guaranty agency established under section 
428(b) of tills title, for State review of compliance with the standards 
in subsection (d). 
"(f) STATE CONTRACTS.—If the appropriate State postsecondaiy 
review entity contracts with a private agency or body or an accredi-
tation body or peer review system for assistance in performing 
State postsecondary review entity functions, such contract shall 
be provided for in the agreement with the Secretary required by 
section 494A. 
"(g) 
PROHIBITION 
ON 
UNRELATED 
REQUIREMENTS.—Not-
withstanding any of the provisions of this subpart, the Secretary 
shall not require a State to estabUsh standards that are unrelated 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 641 
to ensuring institutional or program integrity or that violate the 
provisions of a State's constitution or laws. 
"(h) INSTITUTIONAL ELIGIBILITY.—A State postsecondary review 
entity may determine that an institution of mgher education shall 
not be eUgible to participate in programs under this title based 
on its own findings or the findings of a Federal entity in accordance 
with the following procedures: 
"(1) STATE FINDINGS.—If the appropriate State postsecondary Regulations, 
review entity finds that an institution of higher education does 
not meet one or more of the standards in subsection (d) of 
this section, such State postsecondary review entity shall notify 
the Secretary of its findings and the actions that such entity 
is taking, or has taken, in response to such findings within 
a time period prescribed by the Secretary by regulation. If 
a State postsecondary review entity determines an institution 
of higher education shall not be eUgible for participation in 
programs under this title, such State postsecondary review 
entity shall so notify the Secretary. Upon receipt of such 
notification of ineligibility, the Secretary shall immediately ter-
minate the participation of such institutions in the programs 
authorized by this title. 
"(2) SECRETARY'S FINDINGS.—If the Secretary or any other 
Federal entity t£ikes, or plans to take, any action against any 
institution of higher education (including any actions taken 
xmder section 487), the Secretary shall notify the appropriate 
State postsecondary review entity (or entities, in the case of 
multi-State institutions) of such action within a time period 
prescribed in the Secretar/s regulations. 
"(3) PROCEDURAL PROTECTIONS FOR DISAPPROVAL.—The Sec- Regulations, 
retary shall, by regulation, prescribe minimum procedural 
standards for the disapproval of institutions of higher education 
by the appropriate State postsecondary review entity or entities 
for purposes of this title. 
*
*
(
i
) LIMIT ON STATE POSTSECONDARY REVIEW AGENCY FUNC-
TIONS.—^The functions of State postsecondary review entity shall 
not include performing financial and compUance audits as may 
be required under sections 428 or 487 of this Act. 
"(j) CONSUMER COMPLAINTS.—A State, in consultation with the Records, 
institutions of higher education in the Stete, shall establish and 
pubUcize the avaiiabihty of procedures for receiving and responding 
to complaints 
fi*om 
students, faculty, and others about institutions 
of higher education and shall keep records of such complaints 
in order to determine their 
firequency 
and nature for specific institu-
tions of higher education. 
"(k) ENFORCEMENT MECHANISMS.—Nothing in this subpart shall 
restrict the authority of the Stetes to estabUsh mechanisms to 
enforce the standards established imder subsection (d) or require 
the States to establish specific mechanisms recommended by the 
Secretary. 
^Subpart 2—Accrediting Agency Approval 
<^EC. 496. APPROVAL OF ACCREDITING AGENCY OR ASSOCIATION. 
20 USC 1099b. 
"(a) STANDARDS REQUIRED.—No accrediting agency or association 
may be determined by the Secretary to be a rehable authority 
as to the quahty of education or training offered for the purposes 
of this Act or for other Federal purposes, imless the agency or 
59-194 O—93 
22 : QL 3 (Pt. 1) 
106 STAT. 642 
PUBLIC LAW 102-325—JULY 23, 1992 
association meets standards established by the Secretary pursuant 
to this section. The Secretary shall, after notice and opportunity 
for a hearing, estabUsh standeirds for such determinations. Such 
standards shall include an appropriate measure or measures of 
student achievement. Such standards shall require that— 
"(1) the accrediting agency or association shall be a State, 
regional, or national agency or association and shall dem-
, 
onstrate the ability and the experience to operate as an accredit-
ing agency or association within the State, region, or nationally, 
as appropriate; 
"(2) such agency or association— 
"(A)(i) for the purpose of participation in programs imder 
this Act, has a voluntary membership and has as a prin-
cipal purpose the accrediting of institutions of higher edu-
cation; or 
"(ii) for the purpose of participation in other programs 
administered by the Department of Education or other 
Federal agencies, has a voluntary membership and has 
as its principal purpose the accrediting of institutions of 
higher education or programs; 
"(B) is a State agency approved by the Secretary for 
the purpose described in subparagraph (A); or 
"(C) is an agency or association that, for the purpose 
of determining eligibility for student assistance under this 
title, conducts accreditation through (i) a voluntary mem-
bership organization of individuals p£irticipating in a pro-
fession, or (ii) an agency or association which has as its 
principal purpose the accreditation of programs within 
institutions, which institutions are accredited by another 
agency or association recognized by the Secretary; 
"(3) if such agency or association is an agency or association 
described in— 
"(A) subparagraph (A) of paragraph (2), then such agency 
or association is separate and independent, both adminis-
tratively and financially of any related, associated, or affili-
ated trade association or membership organization; 
"(B) subparagraph (B) of paragraph (2), then such agency 
or association has been recognized by the Secretary on 
or before October 1,1991; or 
"(C) subparagraph (C) of para^aph (2) and such agency 
or association has been recognized by the Secretary on 
or before October 1, 1991, then the Secretary may waive 
the requirement that such agency or association is separate 
and independent, both adminis^atively and financially of 
£iny related, associated, or affiliated trade association or 
membership organization upon a demonstration that the 
existing relationship has not served to compromise the 
independence of its accreditation process; 
"(4) such agency or association consistently appUes and 
enforces standards that ensure that the courses or pro-ams 
of instruction, training, or study at the institution of higher 
education are of sufficient quaUty to achieve, for the duration 
of the accreditation period, the stated objective for which the 
courses or the programs are offered; 
"(5) the standards of accreditation of the agency or association 
assess the institution's— 
"(A) curricula; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 643 
"(B) faculty; 
"(C) facUities, equipment, and supplies; 
"(D) fiscal and administrative capacity as appropriate 
to the specified scale of operations; 
"(E) student support services; 
"(F) recruiting and admissions practices, academic cal-
endars, catalogs, publications, grading and advertising; 
"(G) program length and tuition and fees in relation 
to the subject matters taught and the objectives of the 
degrees or credentials offered; 
(H) measures of program length in clock hours or credit 
hours; 
"(I) success with respect to student achievement in rela-
tion to its mission, including, as appropriate, consideration 
of course completion. State licensing examination, and job 
placement rates; 
"(J) default rates in the student loan programs imder 
title IV of this Act, based on the most recent data provided 
by the Secretary; 
"(K) record of student complaints received by, or available 
to, the agency or association; and 
"(L) compliance with its program responsibilities imder 
title IV of this Act, including any results of financial or 
compHance audits, program reviews, and such other 
information as the Secretary may provide to the agency 
or association. 
"(6) such agency or association shaU apply procedures 
throughout the accrediting process, including evaluation and 
withdrawed proceedings, that comply with due process, 
including— 
"(A) adequate specification of requirements and defi-
ciencies at the institution of higher education or progrsim 
being examined; 
"(B) notice of an opportunity for a hearing by any such 
institution; 
"(C) the right to appeal any adverse action against any 
such institution; and 
"(D) the right to representation by counsel for any such 
institution; 
"(7) such agency or association shall notify the Secretary 
and the appropriate State postsecondary review entity within 
30 days of the accreditation of an institution or any final 
denial, withdrawal, suspension, or termination of accreditation 
or placement on probation of an institution, together with any 
other adverse action taken with respect to an institution; and 
"(8) such agency or association shall make available to the Public 
pubUc, upon request, and to the Secretary, and the State post- information, 
secondary review entity of the State in which the institution 
of higher education is located a summary of any review result-
ing in a final accrediting decision involving denial, termination, 
or suspension of accreditation, together with the comments 
of the affected institution. 
"(b) SEPARATE AND INDEPENDENT DEFINED.—For the purpose of 
subsection (a)(3), the term 'separate and independent' means that— 
"(1) the members of the postsecondary education governing 
body of the accrediting agency or association sire not elected 
or selected by the board or chief executive officer of any related. 
106 STAT. 644 
PUBLIC LAW 102-325—JULY 23, 1992 
associated, or affiliated 
trade association or membership 
organization; 
"(2) among the membership of the board of the accrediting 
agency or association there shall be one public member (who 
is not a member of any related trade or membership organiza-
tion) for each six members of the board, with a minimimi 
of one such public member, and guidelines are established 
for such members to avoid conflicts of interest; 
"(3) dues to the accrediting agency or association are paid 
s^arately from any dues paid to any related, associated, or 
affiliated trade association or membership organization; and 
"(4) the budget of the accrediting agency or association is 
developed and determined by the accrecUting agency or associa-
tion without review or resort to consultation with any other 
entity or organization. 
"(c) OPERATING PROCEDURES REQUIRED,—No accrediting agency 
or association may be approved by the Secretary for the purpose 
ofthistitle,imless the agency or association— 
"(1) performs, at regularly established intervals, on-site 
inspections and reviews of institutions of higher education (at 
least one of which inspections at each institution that provides 
vocational education and training shall be unannounced), with 
particular focus on educational quaUty and progrsim effective-
ness, and ensures that accreditation team members are well-
trained and knowledgeable with respect to their responsibilities; 
"(2) requires that any institution of higher education subject 
to its jurisdiction which plans to establish a branch campus 
submit a business plan, including projected revenues and 
expenditures, prior to opening the branch campus; 
"(3) agrees to conduct, as soon as practicable, but within 
a period of not more than 6 months of the establishment of 
a new branch campus or a change of ownership of an institution 
of higher education, an on-site visit of that branch campus 
or of the institution after a change of ownership; 
"(4) requires that teach-out agreements among institutions 
are subject to approval by the accrediting agency or association 
consistent with standards promulgated by such agency or 
association; 
"(5) maintains and makes publicly available written materials 
regarding standards and procedures for accreditation, appeal 
procedures, and the accreditation status of each institution 
subject to its jurisdiction; and 
"(6) discloses publicly whenever an institution of higher edu-
cation subject to its jurisdiction is being considered for accredi-
tation or reaccreditation. 
"(d) LENGTH OF APPROVAL.—No accrediting agency or association 
may be approved by the Secretary for the purpose of this Act 
for a period of more than 5 years. 
"(e) INITIAL ARBITRATION RULE.—The Secretary may not recognize 
the accreditation of any institution of higher education unless the 
institution of higher education agrees to submit any dispute involv-
ing the final denial, withdrawal, or termination of accreditation 
to initial arbitration prior to any other legal action. 
"(f) JURISDICTION.—Notwithstanding any other provision of law, 
any civil action brought by an institution of higher education seek-
ing accreditation from, or accredited by, an accrediting agency or 
association approved by the Secretary for the purpose of this title 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 645 
and involving the denial, withdrawal, or termination of accreditation 
of the institution of higher education, shall be brought in the 
appropriate United States district court. 
"(g) LIMITATION ON SCOPE OF STANDARDS.—Nothing in this Act 
shall be construed to permit the Secretary to establish standards 
for accrediting agencies or associations that are not required by 
this section. Nothing in this Act shall be construed to prohibit 
or limit any accrediting agency or association from adopting addi-
tional standards not provided for in this section. 
"(h) CHANGE OF ACCREDITING AGENCY.—The Secretary shall not 
recognize the accreditation of any otherwise eUgible institution of 
higher education if the institution of higher education is in the 
process of changing its accrediting agency or association, imless 
the eUgible institution submits to the Secretary all materials relat-
ing to the prior accreditation, including materials demonstrating 
reasonable cause for changing the accrecUting agency or association, 
"(i) DUAL ACCREDITATION RULE.—The Secretary shall not rec-
ognize the accreditation of any otherwise eUgible institution of 
higher education if the institution of higher education is accredited, 
as an institution, by more than one accrediting agency or associa-
tion, unless the institution submits to each such agency and associa-
tion and to the Secretary the reasons for accreditation by more 
than one such agency or association and demonstrates to the Sec-
retary reasonable cause for its accreditation by more than one 
agency or association. If the institution is accredited, as an institu-
tion, by more than one accrediting agency or association, the institu-
tion shall designate which agency^s accreditation shall be utilized 
in determining the institution's eligibility for programs under this 
Act. 
"(j) IMPACT OF Loss OF ACCREDITATION.—An institution may not 
be certified or recertified as an institution of higher education 
under section 481 and subpart 3 of this part or participate in 
any of the other programs authorized by this Act if such 
institution— 
"(1) is not currently accredited by any agency or association 
recognized by the Secretary; 
"(2) has had its accreditation withdrawn, revoked, or other-
wise terminated for cause during the preceding 24 months, 
imless such withdrawal, revocation, or termination has been 
rescinded by the same accrediting agency; or 
"(3) has withdrawn from accrechtation volimtarily under a 
show cause or suspension order during the preceding 24 
months, unless such order has been rescinded by the same 
accrediting agency, 
"(k) RELIGIOUS INSTITUTION RULE.—Notwithstanding subsection 
(j), the Secretary shall allow an institution that has had its accredi-
tation withdrawn, revoked, or otherwise terminated, or has vol-
untarily withdrawn from an accreditation agency, to remain cer-
tified as an institution of higher education imder section 481 and 
subpart 3 of this part for a period sufficient to allow such institution 
to obtain alternative accreditation, if the Secretary determines that 
the reason for the withdrawal, revocation, or termination— 
"(1) is related to the rehgious mission or afiiUation of the 
institution; and 
"(2) is not related to the accreditation standards provided 
for in this section. 
106 STAT. 646 
PUBLIC LAW 102-325—JULY 23, 1992 
"(1) LIMITATION, SUSPENSION OR TERMINATION OF APPROVAL.— 
(1) The Secretary shall limit, suspend, or terminate the approval 
of an accrediting agency or association if the Secretary determines, 
after notice and opportimity for a hearing, that the accrediting 
agency or association has failed to apply effectively the standards 
or operate according to the procedures provided in this section. 
"(2) The Secretary may determine that an accrediting agency 
or association has fsuled to apply effectively the standards provided 
in this section if an institutution of higher education seeks and 
receives accreditation from the accreditmg agency or association 
during any period in which the institution is the subject of any 
interim action by another accrediting agency or association leading 
to the suspension, revocation, or termination of accreditation or 
the institution has been notified of the threatened loss of accredita-
tion, and the due process procedures required by such suspension, 
revocation, termination, or threatened loss have not been completed. 
"(m) LIMITATION ON THE SECRETARY'S AUTHORITY.—The Secretary 
may only recognize accrediting agencies or associations which 
accredit institutions of higher education for the purpose of enabling 
such institutions to establish eligibility to p£irticipate in the pro-
gr£uns under this Act or which accredit institutions of higher edu-
cation or higher education programs for the purpose of enabling 
them to estabHsh eUgibiUty to participate in other programs 
administered by the Department of Education or other Federal 
agencies. 
"(n) INDEPENDENT EVALUATION.—(1) The Secretary shall conduct 
a comprehensive review and evaluation of the performance of aU 
accrediting agencies or associations which seek recognition by the 
Secretary in order to determine whether such accrediting agencies 
or associations meet the standards estabUshed by this section. 
The Secretary shall conduct an independent evcduation of the 
information provided by such agency or association. Such evaluation 
shall include— 
"(A) the solicitation of third-party information concerning 
the performance of the accrediting agency or association; and 
''(B) site visits at both the accreditmg agency or association 
and member institutions, including unaimoimced visits where 
appropriate. 
**(2) The Secretary shall place a priority for review of accrediting 
agencies or associations on those agencies or associations that 
accredit institutions of higher education that participate most exten-
sively in the programs authorized by this title and on those agencies 
or associations which have been the subject of the most complaints 
or legal actions. 
"(3) The Secretary shedl consider all available relevant informa-
tion concerning the compUance of the accrediting agency or associa-
tion with the standards provided for in this section, including 
any complaints or le^al actions against such agency or association. 
In cases where deficiencies in the performance of an accreditation 
agency or association with respect to the requirements of this 
section are noted, the Secretary shall take these deficiencies into 
account in the approval process. The Secretary shall not, under 
any circumstances, base decisions on the approval or disapproval 
of accreditation agencies or associations on standards otiier than 
those contained in this section. 
Re^fds- 
"(4) The Secretary shall maintain svifficient documentation to 
k^ormation 
Support the conclusions reached in the approval process, and, upon 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 647 
disapproval of any accreditation agency or association, shall make 
publicly available tiie reason for such disapproval, including ref-
erence to the specific stsindards under this section which have 
not been fulfilled. 
"(o) REGULATIONS.—^The Secretary shall by regulation provide 
procedures for the recognition of accrediting agencies or associations 
and for the appeed of the Secretaiys decisions. 
"Subpart 3—Eligibility and Certification 
Procedures 
•^EC. 498. ELIGmiUTY AND CERTIFICATION PROCEDURES. 
20 USC 1099c. 
"(a) GENERAL REQUIREMENT.—For purposes of qualifying institu-
tions of higher education for participation in programs under this 
title, the Secretary shall determine the legal authority to operate 
within a State, tne accreditation status, and the a^inistrative 
capability and finsincial responsibility of an institution of higher 
education in accordance with the requirements of this section. 
"(b) SINGLE APPLICATION FORM.—The Secretary shall prepare 
and prescribe a single application form which— 
"(1) requires sufficient information and documentation to 
determine that the requirements of eligibility, accreditation, 
and capability of the institution of higher education are met; 
"(2) reqiiires a specific description of the relationship between 
a main campus of an institution of higher education and all 
of its branches, including a description of the student aid 
processing that is performed by the main campus and that 
which is performed at its branches; 
"(3) requires a description of third party servicers of an 
institution of higher education, together with a copy of any 
contract with the institution of higher education and a financial 
aid service provider or loan servicer; and 
"(4) requires such other information as the Secretary deter-
mines will ensure compUance with the recjuirements of this 
title with respect to eligibiUty, accreditation, administrative 
capabihty and financial responsibiUty. 
"(c) FINANCIAL RESPONSIBILITY STANDARDS.—(1) The Secretary 
shall determine whether an institution has the financial responsibil-
ity required by this title on the basis of whether the institution 
is able— 
"(A) to provide the services described in its official publica-
tions and statements; 
"(B) to provide the administrative resources necessary to 
comply with the requirements of this title; and 
"(C) to meet all of its financial obUgations, including (but 
not limited to) refunds of institutional charges and repajnnents 
to the Secretary for UabiUties and debts incurred in programs 
administered by the Secretaiy. 
"(2) Notwithstanding paragraph (1), if an institution fails to meet 
criteria prescribed by me Secretary with respect to operating losses, 
net worth, asset-to-liabilities ratios, or operating fund deficits then 
the institution shall provide the Secretary with satisfactory evidence 
of its financial responsibiUty in accordance with paragraph (3). 
"(3) The Secretaiy may determine an institution to be financially 
responsible, notwit^tanding the institution's failure to meet the 
criteria under paragraphs (1) and (2), i
f
— 
106 STAT. 648 
PUBLIC LAW 102-325—JULY 23, 1992 
"(A) such institution submits to the Secretary third-party 
financial guarantees, such as performance bonds or letters of 
credit payable to the Secretary, which third-party financial 
guarsintees shall equal not less than one-half of the annual 
potential Uabihties of such institution to the Secretary for funds 
under this title, including loan obligations discharged pursuant 
to section 437, and to students for refiinds of institutional 
charges, including fimds under this title; 
"(B) such institution has its liabilities backed by the fiiU 
faith and credit of a State, or its equivalent; 
"(C) such institution estabUshes to the satisfaction of the 
Secretary, with the support of a report of £in independent 
certified pubhc accountant prepared under generally accepted 
accounting principles, that the institution is a going concern 
capable of meeting all of its financial obligations, including 
(but not Umited to) refunds of institutional charges and repay-
ments to the Secretary for liabilities and debts incurred in 
programs administered by the Secretary; or 
"(D) such institution has met standards of financial respon-
sibility, prescribed by the Secretary by regulation, that indicate 
a level of financial strength not less than those required in 
paragraph (2). 
"(4) The determination as to whether an institution has met 
the standards of financial responsibility provided for in paragraphs 
(2) £uid (3)(C) shall be based on an audited £uid certified financial 
statement of the institution. Such audit shall be conducted by 
a quahfied independent organization or person in accordance with 
standards established by the Americsui Institute of Certified Public 
Accountants. Such statement shall be submitted to the Secretary 
at the time such institution is considered for certification or 
recertification under this section. If the institution is permitted 
to be certified (provisionally or otherwise) and such audit does 
not establish compUance with paragraph (2), the Secretary may 
require that additional audits be submitted. 
"(5)(A) The Secretary shall establish requirements for the mainte-
nance by an institution of higher education of sufficient cash 
reserves to ensure repajrment of any required refunds. 
"(B) The Secretary shsill provide for a process under which the 
Secretary shall exempt an institution of higher education fi*om 
the requirements described in subparagraph (A) if the Secretary 
determines that the institution— 
"(i) is located in a State that hsis a tuition recovery fimd 
that ensures that the institution meets the requirements of 
subparagraph (A); 
"(ii) contributes to the fimd; and 
^ 
"(iii) otherwise has legal authority to operate within the 
State. 
"(d) ADMINISTRATIVE CAPACITY STANDARD.—The Secretary is 
authorized— 
"(1) to estabHsh procedures and requirements relating to 
the administrative capacities of institutions of higher education, 
including— 
"(A) consideration of past performance of institutions or 
persons in control of such institutions with respect to stu-
dent aid programs; and 
"(B) maintenance of records; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 649 
"(2) to establish such other reasonable procedures as the 
Secretary determines will contribute to ensuring that the 
institution of higher education will comply with administrative 
capabihly required by this title. 
"(e) FINANCIAL GUARANTEES FROM OWNERS.—(1) Notwithstanding 
any other provision of law, the Secretary may, to the extent nec-
essary to protect the financicd interest of the United States, 
require— 
"(A) financial guarantees fi*om an institution participating, 
or seeking to participate, in a program imder this title, or 
fi:om one or more individuals who the Secretary determines, 
in accordance with paragraph (2), exercise substantial control 
over such institution, or both, in an amoimt determined by 
the Secretary to be sufficient to satisfy the institution's poten-
ticd Uability to the Federal Grovemment, student assistance 
recipients, and other program participants for funds under 
this title; and 
"(B) the assumption of personal Uability, by one or more 
individuals who exercise substantial control over such institu-
tion, as determined by the Secretary in accordance with para-
graph (2), for financial losses to the Federal Government, stu-
dent assistance recipients, and other program participants for 
funds imder this title, and civil and criminal monetary penalties 
authorized under this title. 
"(2)(A) The Secretary may determine that an individual exercises 
substantial control over one or more institutions participating in 
a program under this title if the Secretary determines that-— 
"(i) the individual directly or indirectly controls a substantial 
ownership interest in the institution; 
"(ii) the individual, either alone or together with other 
individuals, represents, under a voting trust, power of attorney, 
proxy, or similar agreement, one or more persons who have, 
individually or in combination with the other persons rep-
resented or the individual representing them, a substantial 
ownership interest in the institution; or 
"(iii) the individual is a member of the board of directors, 
the chief executive officer, or other executive officer of the 
institution or of an entity that holds a substantial ownership 
interest in the institution. 
"(B) The Secretary may determine that an entity exercises sub-
stantial control over one or more institutions participating in a 
program imder this title if the Secretary determines that the entity 
directly or indirectly holds a substantial ownership interest in the 
institution. 
"(3) For purposes of this subsection, an ownership interest is 
defined as a share of the legal or beneficial ownership or control 
of, or a right to share in tiie proceeds of the operation of, an 
institution or institution's parent corporation. An ownership interest 
may include, but is not limited to— 
"(A) a sole proprietorship; 
"(B) an interest as a tenant-in-common, joint tenant, or ten-
ant by the entireties; 
"(C) a partnership; or 
"(D) an interest in a trust. 
"(4) The Secretary shall not impose the requirements described 
in subparagraphs (A) and (B) of paragraph (1) on an institution 
that— 
106 STAT. 650 
PUBLIC LAW 102-325—JULY 23, 1992 
"(A) has not been subjected to a limitation, suspension, or 
termination action by the Secretary or a guaranty agency within 
the preceding 5 years; 
"(B) has not had, during its 2 most recent audits of the 
institutions conduct of programs under this title, an audit find-
ing that resulted in the institution being required to repay 
an amount greater than 5 percent of the funds the institution 
received from programs under this title for any year; 
"(C) meets and has met, for the preceding 5 years, the finan-
cial responsibility standards under subsection (c); and 
"(D) has not been cited during the preceding 5 years for 
failure to submit audits required under this title in a timely 
fashion. 
"(5) For purposes of section 487(c)(1)(G), this section shall also 
apply to individuals or organizations that contract with an institu-
tion to administer £iny aspect of an institution's student assistance 
program under this title. 
"(f) ACTIONS ON APPLICATIONS; SITE VISITS AND FEES.—The Sec-
retary shall ensure that prompt action is t£iken by the Department 
on any application required under subsection (b). The personnel 
of the Department of Education shall conduct a site visit at each 
institution before certifying or recertifying its eligibility for purposes 
of any program under this title. The Secretary may charge reason-
able fees to cover the expenses of certification and site visits and, 
to the extent permitted by appropriations Acts, may retsdn such 
fees to cover such expenses. 
"(g) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGIBILITY.—(1) 
The eligibility for the purposes of any program authorized under 
this title of any institution that is participating in any such program 
on the date of enactment of the Higher Education Amendments 
of 1992 shall expire in accordsuice with the schedule prescribed 
by the Secretary in accordance with paragraph (2), but not later 
than 5 years after such date of enactment. 
"(2) The Secretary shall establish a schedule for the expiration 
of the eligibility for purposes of any such program of all institutions 
of higher education within the 5-year period specified in paragraph 
(1). Such schedule shall place a priority for the expiration of the 
certification of institutions on those that meet the following criteria: 
"(A) institutions subject to review by a State postsecondary 
review entity pursuant to subpart 1 of part H; or 
"(B) other categories of institutions which the Secretary 
deems necessary. 
"(3) After the expiration of the certification of any institution 
under the schedule prescribed under this subsection, or upon 
request for initial certification from an institution not previously 
certified, the Secreteiry may certify the ehgibility for the purposes 
of £uiy program authorized under this title of each such institution 
for a period not to exceed 4 years. 
"(h) PROVISIONAL CERTIFICATION OF INSTITUTIONAL ELIGIBILITY.— 
(1) Notwithstanding subsections (d) and (g), the Secretary may 
provisionally certify an institution's ehgibihty to participate in pro-
grams imder this title— 
"(A) for not more than one complete aweird year in the case 
of an institution of higher education seeking an initial cer-
tification; and 
"(B) for not more than 3 complete award years i
f
— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 651 
**(i) the institution's administrative capability and finan-
cial responsibility is being determined for the first time; 
"(ii) there is a complete or partial change of ownership, 
as defined imder subsection (i), of an eligible institution; 
or 
"(iii) the Secretary determines that the institution is, 
in the judgment of the Secretary, in an administrative 
or financial condition that may jeopardize its abiUty to 
perform its responsibilities imder its program participation 
agreement. 
"(2) Whenever the Secretsiry withdraws the approved of £iny 
accrediting agency, an institution of higher education which meets 
the requirements of accreditation, eligibility, and certification on 
the day prior to such withdrawal, the Secretary may, not-
withstanding the withdrawal, continue the eligibility of the institu-
tion of higher education to participate in the programs authorized 
by this title for a period not to exceed 18 months fi*om the date 
of the withdrawal of approval. 
"(3) If, prior to the end of a period of provisional certification 
under this subsection, the Secretary determines that the institution 
is unable to meet its responsibilities under its program participation 
agreement, the Secretary may terminate the institution's participa-
tion in programs luider this title. 
"(i) TREATMENT OF CHANGES OF OWNERSHIP.—(1) For the purpose 
of certifying the eligibility of an institution, an eligible institution 
of higher education that has a change in ownership resulting in 
a change in control shall not be considered to be the same institution 
(except as provided in paragraph (3)) and shall be considered a 
new institution for the purpose of establishing eUgibility, except 
that such institution shall not be required (under section 481(b)(5) 
or 481(c)(3)) to be in existence for 2 years prior to seeking such 
certification imless such institution was in existence as a brsinch 
for less than 2 yeeirs. 
"(2) An action resulting in a change in control may include (but 
is not limited to)— 
"(A) the sale of the institution or the majority of its assets; 
"(B) the transfer of the controlling interest of stock of the 
institution or its parent corporation; 
"(C) the merger of two or more eligible institutions; 
"(D) the division of one or more institutions into two or 
more institutions; 
"(E) the transfer of the controlling interest of stock of the 
institutions to its parent corporation; or 
"(F) the transfer of the liabiUties of the institution to its 
parent corporation. 
"(3) An action that may be treated as not resulting in a change 
in control includes (but is not limited to)— 
"(A) the death of an owner of an institution, when the owner's 
interest is sold or transferred to either a family member or 
a current stockholder of the corporation; or 
"(B) another action determmed by the Secretary to be a 
routine business practice, 
"(j) TREATMENT OF BRANCHES.—(1) For the purposes of this title, 
a branch of an eligible institution, as defined pursuant to regula-
tions of the Secretary, is a separate institution of higher education 
and shaU separately meet aU the requirements of tms title, except 
that such institution shall not be required (imder section 481(b)(5) 
106 STAT. 652 
PUBLIC LAW 102-325—JULY 23, 1992 
or 481(c)(3)) to be in existence for 2 years prior to seeking such 
certification unless such institution was in existence as a branch 
for less than 2 years. 
"(2) The Secretary may waive the requirement of section 
1201(a)(2) for a branch that (A) is not located in a State, (B) 
is afSliated with an eligible institution, and (C) was participating 
in one or more programs under this title on or before January 
1,1992. 
20 use 1099C-1. "SEC. 498A. PROGRAM REVIEW AND DATA. 
"(a) GENERAL AUTHORITY.—In order to strengthen the administra-
tive capabiUty and financial responsibility provisions of this title, 
the Secretary— 
"(1) shall provide for the conduct of program reviews on 
a systematic basis designed to include all institutions of higher 
education participating in programs authorized by this title; 
"(2) may give priority for program review to institutions 
ofhigher education that are— 
"(A) institutions with a cohort default rate for loans 
under part B of this title in excess of 25 percent or which 
places such institutions in the highest 25 percent of such 
institutions; 
"(B) institutions with a default rate in dollar volume 
for loans under part B of this title which places the institu-
tions in the highest 25 percent of such institutions; 
"(C) institutions with a significant fluctuation in Federal 
Stafford Loan volimie or Federal Pell Grant awards, or 
both, in the year for which the determination is made 
compared to the year prior to such year; 
"(D) institutions reported to have deficiencies or financial 
aid problems by the appropriate State postsecondary review 
entity designated imder subpart 1 of this part or by the 
appropriate accrediting agency or association; 
"(E) institutions with high annual dropout rates; 
"(F) any institution which is required to be reviewed 
by a State postsecondary review entity pursuant to subpart 
1 of p£irt H under section 494C(b); and 
"(G) such other institutions as the Secretary deems nec-
essary; and 
"(3) shall establish and operate a centred data base of informa-
tion on institutional accreditation, eUgibility, and certification 
that includes— 
"(A) all information available to the Department; 
"(B) all relevant information made available by the Sec-
retary of Veterans Affairs; 
"(C) all relevant information from accrediting agencies 
or associations; 
"(D) all relevant information avsdlable from a guaranty 
agency; and 
"(E) all relevant information avcdlable from States under 
subpart 1. 
"(b) SPECIAL ADMINISTRATIVE RULES.—(1) In carrying out para-
graphs (1) and (2) of subsection (a), the Secretary shadl establish 
guidelines designed to ensure uniformity of practice in the conduct 
of program reviews of institutions of higher education. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 653 
"(2) The Secretary shall review the regulations of the Department 
and the appUcation of such regulations to ensure the uniformity 
of interpretation and application of the regulations. 
"(c) DATA COLLECTION RULES.—The Secretary shall develop and 
carry out a plan for the data collection responsibilities described 
in para^aph (3) of subsection (a). The Secretary shall make the 
information obtained under such paragraph (3) readily available 
to all institutions of higher education, guaranty agencies, States, 
and other organizations participating in the programs authorized 
by this title. 
"(d) TRAINING.—^The Secretary shall provide training to personnel 
of the Department, including criminal investigative training, 
designed to improve the quality of financial and compliance audits 
and program reviews conducted under this title. 
"(e) SPECIAL RULE.—The provisions of section 103(b) of the 
Department of Education Organization Act, shall not apply to Sec-
retarigd determinations made regarding the appropriate length of 
instruction for programs measured in clock hovu*s.". 
TITLE V—EDUCATOR RECRUITMENT, 
RETENTION, AND DEVELOPMENT 
SEC. 501. REVISION OF TITLE V. 
(a) AMENDMENT.—Title V of the Act (20 U.S.C. 1101 et 
seq.) 
is amended to read as follows: 
'TITLE V—EDUCATOR RECRUITMENT, 
RETENTION, AND DEVELOPMENT 
''SEC. 500. FINDINGS AND PURPOSES. 
20 USC llOL 
"(a) FINDINGS.—The Congress finds that^ 
"(1) teachers in the classroom are the men and women who 
must play an integral role in leading our Nation's schools 
into the 21st century; 
"(2) we should encourage individuals to enter the education 
profession so that our teaching force is representative both 
of the diversity of our Nation and of the tremendous talents 
and skills of our citizens; 
"(3) the methods used to prepare prospective teachers and 
the continuing education and support provided to practicing 
teachers have a significant influence on the effectiveness of 
classroom teachers; 
"(4) the postsecondary education of education professionals 
has not been linked to local. State and national goals and 
standards; 
"(5) the inservice and continuing professional development 
of educators has not promoted systematic and sustained 
improvement of the education system; 
"(6) State educational agencies have not been funded and 
staffed adequately to carry out a mission of supporting a process 
to achieve local, State, or national goals and standards; 
"(7) in order to encourage more women and underrepresented 
minorities to enter the fields of science and mathematics and 
succeed in these fields, we must provide proper training for 
106 STAT. 654 
PUBLIC LAW 102-325—JULY 23, 1992 
existing mathematics and science teachers and recruit women 
and underrepresented minorities as teachers in these fields; 
"(8) educators must have the expertise and the support tiiat 
allow them to adapt to the changing environment in our schools 
and to the evolving skills required of our schools' graduates; 
and 
"(9) the Federal Grovemment plays an essential role in provid-
ing support to educator training and professional development 
that will enable teachers to be classroom leaders £ind adminis-
trators to be school leaders at the forefront of reforming our 
Nation's schools. 
"(b) PURPOSE.—It is the purpose of this title— 
"(1) to provide assistance to our Nation's teaching force for 
the continued improvement of 
their professional skills; 
"(2) to provide assistance for professional development activi-
ties enabling teachers, school administrators, and institutions 
of higher education to work collaboratively to improve edu-
cational performance through school reform and restructuring; 
"(3) to address the Nation's teacher shortage, particularly 
in areas where there are heavy concentrations of low-income 
students, by encouraging talented persons, including the 
individuals already employed as school paraprofessionals and 
individuals who have been employed in otiier areas of endeavor, 
to enter the teaching profession; 
"(4) to encourage academically qualified students to become 
teachers through scholarship assistance; 
"(5) to support the recruitment of underrepresented popu-
lations into teaching careers; 
"(6) to provide scholarship assistance to encourage women 
and minorities who are underrepresented in the fields of science 
and mathematics to enter the teaching profession in these 
fields; 
''(7) to encourage the estabUshment and maintenance of pro-
grams that provide professional teacher preparation to individ-
uals who are moving to careers in education 
fi*om 
other occupa-
tions; 
"(8) to promote partnerships between institutions of higher 
education and 1
O
C
£
L
L educational agencies for the purpose of 
promoting the simultaneous restructuring and renewal of 
elementary and secondary schools and college-based teacher 
education programs; 
"(9) to improve tiie leadership and administrative skills of 
elementary and secondary school administrators; 
"(10) to provide assistance to schools of education in institu-
tions of higher education in order to reform teacher education 
programs by encouraging new developments in teacher prepara-
tion which provide for greater integration of subject matter 
and pedagogical training and which prepare classroom teachers 
to effectively meet changing noneducatLonal challenges in the 
schools; and 
"(11) to promote high quality child development and early 
childhood education specialist training programs, including pre-
school and early intervention services for infants and toddlers 
with disabilities. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 655 
**PART A—STATE AND LOCAL PROGRAMS FOR 
TEACHER EXCELLENCE 
"SEC. 501. AUTHORITY AND ALLOCATION OF FUNDS; DEFINITIONS. 
"(a) PURPOSE AND AUTHORITY.— 
"(1) PURPOSE.—It is the purpose of this part to provide funds 
to State educational agencies, local educational agencies and 
institutions of higher education in order to update and improve 
the skills of classroom teachers, including preschool and eeirly 
childhood education specialists and school administrators, to 
establish State academies for teachers and school leaders, and 
to provide for a comprehensive examination of State require-
ments for teacher preservice and certification. 
"(2) PROGRAM AUTHORIZED.—The Secretary is authorized to 
make allotments to State educational agencies for the purposes 
of enhancing and improving the quality of teaching, including 
early childhood education, in each of the several States. 
"(b) ALLOTMENT OF FUNDS.— 
"(1) IN GENERAL.—From the funds appropriated in each fiscal 
year pursuant to section 510A, the Secretary shall allot to 
each State— 
"(A) 50 percent of such funds on the basis of the number 
of individuals in the State aged 5 through 17 compared 
to the number of all such individuals in all States; and 
"(B) 50 percent of such funds on the basis of the amoimt 
the State receives under sections 1005 and 1006 of chapter 
1 of title I of the Elementary and Secondary Education 
Act of 1965 compared to the total amount that all States 
receive xinder such sections. 
"(2) ALLOCATIONS FROM STATE ALLOTMENTS.— 
"(AXi) Except as provided in subsection (c), fi*om the 
amount allotted to each State in each fiscal year pursuant 
to paragraph (1) and not reserved pursuant to subpara-
graph (B)(i), the State education agency shall allocate 50 
percent of such amount in accordance with clause (ii) to 
local eduational agencies to carry out the activities 
described in section 503. 
"(ii) The State educational agency shall allocate 50 per-
cent of the amount allotted to the State in each fiscal 
year under paragraph (1) so that— 
"(I) one-half of such amoimt is allocated to local 
educational agencies within such State based on the 
local educational agenc/s relative share of the enroll-
ments in public schools within the State; and 
"(II) one-half of such amount is allocated to local 
educational agencies within such State based on the 
local educational agenc/s relative share of the State's 
allocation of funds under sections 1005 and 1006 of 
the Elementary and Secondary Education Act of 1965, 
except that any local educational agency that would receive 
an allocation of less than $10,000 shall be required to 
form a consortium with at least one other local educational 
agency in order to receive an allocation under this part. 
In making allocations under this part, the State educational 
agency shall use the most recent data available. 
20 u s e 1102. 
106 STAT. 656 
PUBLIC LAW 102-325—JULY 23, 1992 
"(BXi) From the amount allotted to each State in each 
fiscal ye£ir pursuant to paragraph (1) the State educational 
agency shall reserve not more tnan 3 percent of such funds 
for the purposes of administering the progrcun under this 
title, including evaluation and dissemination activities. 
''(ii) From the amount allotted to each State in each 
fiscal year imder paragraph (1) and not reserved pursuant 
to clause (i), the State educational agency— 
"(I) shall reserve not more than 25 percent of such 
funds to carry out sections 504, 505, and 506; and 
"(II) shall reserve not more than 25 percent of such 
funds to award grants to institutions of higher edu-
cation in accordance with sections 507 and 508. 
"(c) SPECIAL RULE.—^Notwithstanding the provisions of subsection 
(b)(2)(A), if the amount appropriated to carry out this part for 
any fiscal year is less than $250,000,000, then each State edu-
cational agency shall use 50 percent of the amoimt allotted to 
such State under paragraph (1) and not reserved pursuant to sub-
section (b)(2)(B)(i) to award grants to local educational agencies 
on a competitive basis. 
"(d) REALLOTMENT.^If a State or local educational agency elects 
not to receive assistsince imder this part in any fiscal year or 
the Secretary determines in any fiscal year that a State or local 
educational agency will not be able to use all or any portion of 
the funds available to such State or local educational agency imder 
this part, then the Secretary shall reallot such funds. The Secretary 
shall reallot such funds in such fiscal year in accordance with 
the provisions of this part among the States or local education^d 
agencies who are eligible for assistance under this part and are 
not described in the preceding sentence. 
"(e) DEFINITIONS.—For purposes of this part— 
"(1) the term 'State* means each of the 50 States, the District 
of Columbia, the Commonwealth of P*uerto Rico, the Virgin 
Islands, Guam, the Commonwealth of the Northern Mariana 
Islands, American Samoa, and the Republic of Palau (until 
the Compact of Free Association takes effect pursuant to section 
101(a) of Public Law 99-658); and 
• 
"(2) the term *key academic subjects' means EngUsh, mathe-
matics, science, history, geography, foreign languages, civics 
and government, and economics. 
20 use 1102a. 
«SEC. 502. STATE APPUCATION. 
"(a) IN GENERAL.—^Any State which desires to receive an allot-
ment under this part shall submit to the Secretary an application 
which— 
"(1) designates the State educational agency as the State 
agency responsible for the administration and supervision of 
programs assisted under this part; 
"(2) provides for a process of active discussion and con-
sultation with a committee, convened by the chief State school 
officer, which is broadly representative of the following edu-
cational interests within the State, including— 
"(A) a representative nominated by each of the following: 
"(i) the State teacher organizations; 
"(ii) the organizations representing preschool and 
early childhood education specialists; 
"(iii) the State school administrators organization; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 657 
"(iv) the State parents organizations; 
"(v) the State business organizations; and 
''(vi) the State student organizations; 
"(B) a representative from the State board of education; 
"(C) a representative of faculty from departments, schools 
or colleges of educations; 
"(D) other representatives of institutions of higher edu-
cation, including community colleges; 
"(E) the State director of vocational education; and 
"(F) the State director of special education; 
"(3) describes tiie competitive process that the State will 
use to distribute funds among local educational agencies pursu-
£uit to section 501(c); 
"(4) describes the process the State will use to conduct the 
assessment required by section 504(c); 
"(5) describes how the State will £dlocate funds among activi-
ties required under section 504; 
"(6) with respect to the State academies to be established 
under sections 505 and 506— 
"(A) describes the academies to be established under 
this part and the goals and objectives for each such acad-
emy; 
"(B) describes how the academies assisted under this 
part shsdl relate to the overall plan for the attainment 
of the national education goals by the State; 
"(C) describes the competitive process that shall be used 
to select appUcants to operate the academies assisted imder 
this part; 
"(D) assures that the Academies for Teachers shall pro-
vide instruction in the key academic subjects; 
"(E) assures that the State shall continue to operate 
the academies assisted under this part when Federal funds 
provided pursuant to this title are no longer available; 
"(F) assures that Federal funds provided under this part 
shall not be used for construction of new facilities or sub-
stantial remodeling; 
"(G) assures that the Academies for Teachers shall pro-
vide activities designed to enhance the ability of teachers 
to work with special educational populations, including— 
"(i) limited-EngUsh proficient children; 
"(ii) children with disabilities; 
"(iii) economically and educationally disadvantaged 
children; and 
"(iv) gifted and talented children; and 
"(H) contains such other assurances and information as 
the Secretary may reasonably require; 
"(7) describes the competitive process that the State will 
use to distribute funds among institutions of higher education 
pursuant to section 507; 
"(8) describes a plan to promote learning among the State 
educational agency staff in order to support and facilitate sys-
temic improvement of the State educational agency, schools 
or colleges of education at institutions of higher education, 
and local educational agencies; and 
"(9) includes such other information and assurances as the 
Secretary may require. 
106 STAT. 658 
PUBLIC LAW 102-325—JULY 23, 1992 
"(b) FUNCTIONS OF COMMITTEE.—The application required by sub-
section (a) shall identify the procedures by which the committee 
required by paragraph (2) of such subsection will be engaged in— 
"(1) ensuring that activities assisted under this part are 
effective, coordinated with other State, local, and Federal activi-
ties and programs, and meet the needs of the State for improv-
ing the quality of teaching and teacher education programs, 
including those programs concerned with preschool education 
and the training of early childhood education specialists, and 
school leadership programs; 
"(2) advising the State on criteria for awarding funds imder 
sections 501(c), 505, 506, and 507; and 
"(3) advising the State on criteria for approving local edu-
cational agency applications under section 503(a). 
"(c) EVALUATION AND REPORT.— 
"(1) REPORT TO SECRETARY.—Each State educational agency 
receiving an allotment rnider this part shall evaluate the work 
of each academy that is located in the State £uid assisted 
imder this part every 2 years, including the impact of each 
academjr's programs on participants, and report the findings 
of such evaluation to the Secretary. The initial report shall 
be submitted 3 years after funds are first allotted to such 
State educational agency under section 501 and subsequent 
reports shall be submitted every 2 yesirs thereafter. Such report 
shall also describe the characteristics of the participants and 
activities provided at each academy assisted imder this part. 
"(2) REPORT TO CONGRESS.—The Secretary shall submit to 
the Congress a summary of the reports required xinder sub-
section (a). The initial summary shall be submitted 60 days 
after the due date of the first report described in subsection 
(a) and subsequent summaries shall be submitted every 2 years 
thereafter. 
20 use 1102b. 
"SEC. 503. LOCAL APPLICATION AND USE OF FUNDS. 
"(a) LOCAL APPLICATION.—^Any local educational agency which 
desires to receive assistance imder section 501(b)(2)(A) or 501(c) 
shall submit to the State educational agency an application which— 
"(1) describes the needs of such local educational agency 
with respect to inservice tredning programs for teachers and 
preschool and early childhood education speciaUsts pursuant 
to the assessment conducted under subsection (b)(2)(A), and, 
if appropriate, describes the need of such local educational 
agency for teacher recruitment, business partnerships, outreach 
to military veterans, and the provision of other opportimities 
for teachers to improve their skills; 
"(2) describes the process used to determine such needs, 
including consultation with teachers, preschool and early child-
hood speciaUsts, principals, parents, representatives from 
departments, schools or colleges of education, and others in 
the community; 
"(3) describes the activities such agency intends to conduct 
with the funds provided under section 501(bX2)(A) or 501(c) 
consistent with the provisions of this section in order to improve 
the quaUty of teaching within such agency; 
"(4) describes the processes and metiiods used to promote 
systematic improvement through continual learning in order 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 659 
to achieve agreed upon local, State and National standards; 
and 
"(5) any other information that the State educational agency 
may reasonably require. 
"(b) LOCAL USES OF FUNDS.— 
"(1) IN GENERAL.—Local educational agencies receiving assist-
ance under section 501(b)(2)(A) or 501(c) shall use such funds 
for the inservice training of teachers and, if appropriate, for 
preschool and early childhood education specialists, and may 
use funds for— 
"(A) development of programs to recruit individuals into 
the teaching profession and the field of early childhood 
education; 
"(B) business psirtnerships; 
"(C) outreach to military veterans; £uid 
"(D) other purposes consistent with improving the quality 
of teaching in the local educational agency, as approved 
by the State educational agency. 
"(2) INSERVICE TRAINING.— 
"(A) In order to receive assistance tmder section 
501(b)(2)(A) or 501(c), a local educational agency or a con-
sortium of local educational agencies shall first assess the 
needs of such agency or agencies for inservice training. 
"(B) Fimds expended for inservice training shall be used, 
in accordance with tiie assessment conducted under sub-
paragraph (A), for the cost o
f
—
-
"(i) the expansion and improvement of inservice 
training and retraining of teachers and other appro-
priate school personnel, including vocational teacners, 
special education teachers, and preschool teachers, con-
sistent with the assessment conducted under subpara-
graph (A); 
"(ii) providing fiinds for grants for individual teachers 
within the local educational agency to luidertake 
projects to improve their teaching ability or to improve 
the instructional materials used in their classrooms; 
"(iii) activities desigpied to address the effects of 
chronic community violence on children, such as 
violence counseling training for teachers and early 
childhood specialists, 8md activities and training cdmed 
at resolving conflicts; 
"(iv) activities designed to enhance the ability of 
teachers to work with culturally diverse students; 
"(v) activities designed to integrate academic and 
vocational education; 
"(vi) as appropriate, activities designed to assist 
teacher participation in a Tech-Prep program under 
section 344 of the Carl D. Perkins Vocational and 
AppUed Technology Act, in order to develop the skills 
of such teachers in activities such as organizational 
development leadership and interdisciplinary curricula 
development; and 
"(vii) other activities consistent with the goals of 
this part as approved by the State educational agency. 
"(C) Such activities may be carried out through agree-
ments with institutions of higher education, nonprofit 
organizations, public agencies, and museums. 
106 STAT. 660 
PUBLIC LAW 102-325—JULY 23, 1992 
"(D) Activities related to inservice training shall be 
coordinated with such activities carried out under part 
. 
A of title II of the Elementary and Secondary Education 
Act of 1965. 
"(3) RECRUITMENT OF TEACHERS.— 
"(A) Local educational agencies receiving assistance 
under section 501(b)(2)(A) or 501(c) may use such 
assistance— 
**(i) to establish, operate, or expand programs to 
encourage and recruit interested individuals to pursue 
a course of study that will lead to a career in education; 
£ind 
**(ii) to establish, operate, or expand a program where 
such agency recruits students currently enrolled in 
a school in the local educational agency to be teachers 
or early childhood education specialists. 
"(B) Activities under this paragraph may include— 
"(i) academic and career counseling of and support 
services for students; 
"(ii) programs in which students act as tutors while 
they are enrolled in schools in the local educational 
agency; 
"(iii) programs in which students enrolled in institu-
tions of higher education and other individuals tutor 
students within schools in the local educational agency; 
"(iv) information and recruitment efforts to attract 
individuals into the teaching profession; and 
"(v) programs to support early childhood education 
efforts at the preschool and school level. 
"(C) In conducting programs under this paragraph, local 
educational agencies shall place a priority on recruiting 
students and individuals from minority groups. 
"(D) Local educational agencies may conduct programs 
under this paragraph in consortia with institutions of 
higher education. 
"(4) BUSINESS PARTNERSHIPS.—Local educational agencies 
receiving assistance under section 501(b)(2)(A) or 501(c) may 
use such assistance to establish partnerships with rep-
resentatives of the business commxinity to sponsor— 
"(A) programs which allow representatives of local busi-
ness or firms to go into the classroom and work with 
the classroom teacher to provide instruction in subject 
areas where the expertise of the teacher could be supple-
mented, especially in the subject areas of mathematics, 
science, and vocational and technology education training; 
"(B) internship programs which provide an opportunity 
for classroom teachers to work in local businesses or firms 
to gain practical experience or to develop new skills or 
e^ertise; 
(C) programs which bring students and teachers into 
business settings to see applications of course work and 
in speciaHzed su'eas, and to learn to use advanced technical 
equipment; 
"(D) programs which allow representatives of local 
businesses and firms to work with school administrators 
to develop instructional material; and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 661 
"(E) other activities appropriate to forming a \^orking 
relationship between business leaders and classroom lead-
ers. 
"(5) OUTREACH TO MILITARY VETERANS.—Local educational 
agencies receiving assistance under section 501(b)(2)(A) or 
501(c) may use such assistance to estabUsh programs to inform 
United States military veterans of teaching opportunities and 
to provide assistance in the establishment of teaching 
opportunities for such veterans by— 
"(A) planning and implementing informational and out-
reach programs leading to the development of programs 
specifically designed to inform United States miUtary vet-
erans about teaching opportunities and the qualifications 
necessary for such opportimities; 
"(B) planning and implementing programs leading to the 
creation of teaching opportunities for such veterans; 
"(C) supporting programs to assist such veterans to meet 
the quaMcations to become teachers; 
"(D) disseminating information on the program described 
in this paragraph and on sources of student &iancial assist-
ance available under title IV of this Act and under pro-
grams administered by the Department of Veterans Affairs 
and other Federal agencies; and 
"(E) making scholarships available to such military vet-
erans under the same terms and conditions specified in 
subpart 1 of part C of this title. 
"SEC. 504. STATE USES OF FUNDS. 
20 USC 1102c. 
"(a) IN GENERAL.—^Each State educational agency receiving funds 
reserved pursuant to section 501(b)(2)(B)(ii)(I) shall use such 
funds— 
"(1) first, to conduct a study of teacher education programs 
within such State, as required under subsection (c); and 
"(2) secondly, for— 
"(A) the establishment of State Academies for Teachers 
under section 505; 
"(B) the estabUshment of State Academies for School 
Leaders under section 506; and 
"(C) activities directly related to the implementation of 
the teacher education study required under subsection (c). 
"(b) SPECIAL RULE.—If a State educational agency can dem-
onstrate that the amount of funds reserved pursuant to section 
501(b)(2)(BXii)(I) is insufficient to establish one State academy, 
then the State educational agency shall distribute such funds to 
local educational agencies in accordance with section 501(b)(2)(A) 
or 501(c) to carry out the activities described in section 503(b). 
"(c) TEACHER EDUCATION STUDY.— 
"(1) STUDY REQUIRED.—Each State educational agency receiv-
ing fiinds under this part shall, in cons\iltation with institutions 
of higher education, local educational agencies, teachers, par-
ents, the State legislature, the State board of education, and 
business, undertake a study o
f
— 
"(A) teacher education programs and State teacher pro-
fessional development requirements, including programs 
and requirements intended to train preschool and early 
childhood education spedahsts; and 
106 STAT. 662 
PUBLIC LAW 102-325—JULY 23, 1992 
Reports. 
"(B) the State laws and regulations relating to such 
programs and requirements, including any standards or 
requirements for certification and licensure, 
in order to determine if such programs and requirements are 
adequately preparing teachers to effectively educate students. 
"(2) CONSIDERATIONS.—Such study shall consider whether 
such programs or requirements— 
"(A) would be improved if teacher education progreuns 
were required to coordinate courses with other departments 
on campus in order to provide prospective teachers with 
a strong background in their subject matter; 
"(B) integrate academic and vocational education instruc-
tion; 
"(C) give enough flexibility in order to allow experimen-
tation and innovation; 
"(D) would be improved if such programs provided 
preparation for students desiring to become teachers, but 
who are pursuing a bachelor's degree in an area of study 
other than education; 
"(E) would be improved if teacher certification required 
a bachelor's degree in a subject area and a master's degree 
in education; and 
"(F) would be improved if institutions of higher education 
that have developed innovative materials and curricula 
for inservice training were required to incorporate these 
improvements into their preservice programs. 
"(3) DEADLINES.— 
"(A) Such study shall be completed by two years fi*om 
the end of the first fiscal year in which funding was made 
available for this part. The results of such study shall 
be reported to the Secreteiry. In submitting the report 
to the Secretary, the State educational agency shall include 
in the report the most successful practices used to enhance 
the profession of teaching. The Secretary may disseminate 
such successful practices in order to assist other States 
in their efforts to enhance the profession of teaching. 
"(B) Except as provided in paragraph (4), beginning in 
the third fiscal year for which fimding under this part 
is available, State educational agencies shall use all funds 
provided under section 501(b)(2)(B)(ii)(I) which are not 
allotted for State Academies for Teachers and State Acad-
emies for School Leaders— 
"(i) to implement the program and policy changes 
resulting 
fi-om 
the findings of such study; and 
"(ii) to assist schools and programs of education 
throughout the State in meeting any new requirements 
that result 
fi-om 
such study. 
"(C) The State educational agency shall award grants 
pursuant to section 507(b)(9) to institutions of higher edu-
cation to implement the programs and policy changes 
resulting 
fi"om 
the findings of such study. 
"(4) WAIVER.—If a State demonstrates to the Secretary that 
it has completed a study comparable to the study required 
by this subsection within the previous 5 years prior to the 
fiscal year for which fluids are first made available under 
this part, then the Secretary may waive the requirements of 
this subsection. States receiving a waiver shall use fimds pro-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 663 
vided under section 501(b)(2XB)(ii)(I) to implement the program 
and policy changes resulting from the findings of such study. 
If the State can demonstrate to the Secretary ihat such program 
and poUcy changes have been implemented, then the State 
shall use funds provided under section 501(b)(2XB)(ii)(I) to carry 
out the activities authorized under sections 505 and 506. 
'^EC. 605. STATE ACADEMIES FOR TEACHERS. 
20 USC 1102d. 
"(a) PURPOSE; DEFINITIONS.— 
"(1) PURPOSE.—It is the purpose of this section to improve 
elementary £ind secondary school teacher subject matter knowl-
edge and teaching skills in each of the key academic subjects 
by establishing one or more Academies in the key academic 
subjects in every State. 
"(2) DEFINITIONS.—For purposes of this section— 
"(A) the term 'Academjr* means a course of instruction 
and related activities to increase a teacher's knowledge 
of a specific subject area, a teacher's abiUty to impmi 
such knowledge to students, and a teacher's ability to 
address any other issue described in this section, except 
that such term— 
"(i) does not mean a physical facility; and 
"(ii) does not require a separate location from another 
Academy or other training program; and 
"(B) the term 'eUgible entitj^ means a local educational 
agency, an institution of higher education, a museum, a 
private nonprofit educationsd organization of demonstrated 
effectiveness, or a consortiimi of any 2 or more of such 
entities. 
"(b) APPLICATION REQUIRED.— 
"(1) IN GENERAL.—Each eligible entity desiring to operate 
an Academy under this section shall submit an appUcation 
to the State educational agency at such time, in such manner, 
^ d accompanied by such information as the State may reason-
ably reqmre. 
"(2) CONTENTS.—Each application submitted piirsuant to 
paragraph (1) shall describe— 
"(A) the goals of the Academy and the steps that shall 
be taken to evaluate the extent to which the Academy 
reaches its goals; 
"(B) the curriculum to be used or developed by the Acad-
emy; 
"(C) steps to be taken to recruit teachers for the Acad-
emes program, including outreach efforts to identify and 
attract— 
"(i) minority group members; 
"(ii) individuals with disabiUties; 
"(iii) individuals from areas with large numbers or 
concentrations of disadvantaged students; and 
"(iv) other teachers with the potenti£il to serve as 
mentor teachers; 
"(D) steps to be taken to ensure that faculty members 
teaching at the Academy shall be of exceptional ability 
and experience, including outreach efforts to identify and 
attract as faculty members— 
"(i) minority group members; 
"(ii) individusds with disabiUties; and 
106 STAT. 664 
PUBLIC LAW 102-325—JULY 23, 1992 
**(iii) individuals from areas with large numbers or 
concentrations of disadvantaged students. 
"(E) efforts to be undertaken to disseminate information 
about the Academy; 
"(F) selection criteria to be used in identifying teachers 
to participate in the Academy; 
"(G) steps to be taken to assure that the programs offered 
by the Academy shall be of sufficient length and com-
prehensiveness to significantly 
improve participants* 
knowledge; and 
"(H) efforts to be imdertaken to evaluate the impact 
of the Academy on participants. 
"(c) USE OF ALLOTTED FUNDS.— 
"(1) GRANTS.—Each State educationsd agency receiving an 
allotment under this part shall use the funds reserved pursuant 
to section 501(b)(2)(B)(ii)(I) to award one or more competitive 
grants to eligible entities to enable such ehgible entities to 
operate an Academy in accordance with the provisions of this 
section. 
"(2) COORDINATION OF ACTIVITIES.—TO the extent practicable, 
such academies shall coordinate efforts with teacher inservice 
activities of local educational agencies. 
"(3) COMBINATION OF RESOURCES.—Each State edticational 
agency receiving an allotment imder this part may combine 
the fluids reserved pursuant to section 501(b)(2)(B)(ii)(I) with 
such funds reserved by another State educationsd agency to 
operate academies assisted imder this part on a multistate 
or regional basis. 
"(4) COSTS.—Each eligible entity receiving a grant imder 
this section shall use such funds to meet the operating costs 
of carrying out the activities described in subsection (d), which 
may include reasonable startup and initial operating costs, 
and costs associated with release time, stipends, travel, and 
living expenses for teachers who participate in the Academy's 
program if no other funds are available to pay such costs. 
"(a) AUTHORIZED ACTIVITIES.—Each eUgible entity receiving a 
grant to operate an Academy under this section may use such 
grant funds for— 
"(1) renewal and enhancement of participants' knowledge 
in key academic subjects; 
"(2) skills and strategies to improve academic achievement 
of students, especially students who are educationally dis-
advantaged, are limited-EngUsh proficient, are drug- or alcohol-
esposed, or have disabilities; 
(3) improved teaching and classroom management skills; 
"(4) techniques for the mtegration of academic and vocational 
subject matter, including the application of such techniques 
in tech/prep education programs; 
"(5) me use of educational technologies in teaching the key 
academic subjects; 
"(6) training needed to participate in curriculum development 
in a key academic subject; 
"(7) Gaining in the development and use of assessment tools; 
"(8) review of existing teacher enhancement programs to iden-
tify the most promising approaches; 
(9) development of a curriculum for use by the Academy; 
"(10) follow-up activities for previous participcints; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 665 
"(11) dissemination of information about the Academy, includ-
ing the training curricula developed; and 
"(12) any other activities proposed by the applicant and 
approved by the State educational agency. 
"(e) COST SHARING.—Funds received for this section may be used 
to pay not more than 75 percent of tiie cost of operating an Academy 
in the first year an eligible entity receives a grant under this 
section, 65 percent of such cost in such second year, 55 percent 
of such cost in such third year, 45 percent of such cost in such 
fourth year, and 35 percent of such cost in such fifth year. The 
remaining share shall be provided fi*om non-Federal sources, and 
may be in cash or in-kind contributions, fairly valued. 
"(f) SPECIAL RULES.— 
"(1) USES OF FUNDS.— 
"(A) KEY ACADEMIC SUBJECTS.—At least 70 percent of 
funds received for this section shall be used for enhance-
ment of participant knowledge in key academic subjects. 
"(B) OTHER SUBJECTS.—At least 20 percent of the fimds 
received for this section shall be used for enhancement 
of participant knowledge in areas not related to academic 
subjects. 
"(2) SPECIAL RULE.—In awarding grants under this section 
the State educational agency may provide for trsdning in 2 
or more key academic subjects at a single site. 
"(3) ADDITIONAL ACADEMIES OR AWARDS.—If a State can dem-
onstrate that the State's need for academies in key academic 
subjects has been met, and if the State can demonstrate that 
it is implementing the findings of the teacher education study 
described in section 504(c), then the State may use a portion 
of the amoimt reserved pursuant to section 501(b)(2)(BXii)(I) 
to establish one or more of the following academies or awards: 
"(A) EARLY CHILDHOOD ACADEMIES.—A State educational 
agency may estabUsh an academy aimed at early childhood 
education training. Such an academy shcdl give a priority 
to recruiting candidates fi:om underrepresented groups in 
the early cluldhood education profession £ind shall provide 
intensive childhood training in violence counseling. 
"(B) TECH-PREP ACADEMIES.—A State educational agency 
may establish an academy for— 
"(i) assisting educators in secondary schools £ind com-
mxmity colleges to more effectively 
imderstand 
organizational structures and organizational change 
: 
strategies; 
"(ii) assisting educators to learn effective peer leader-
ship strategies; 
"(iii) assisting secondary school teachers and commu-
nity college faculty to identify the knowledge and skills 
required in highly technical industries and workplaces; 
"(iv) assisting secondary school teachers and commu-
nity college faculty to apply creative strategies to the 
development of interdisciplinary curricula; and 
"(v) assisting educators in integrating academic and 
vocationsd education. 
"(C) TEACHER AWARDS.—(i) A State educational agency 
may make awards to State Academies for Teachers to 
provide for a program of cash awards and recognition to 
106 STAT. 666 
PUBLIC LAW 102-325—JULY 23, 1992 
outstanding teachers in the key academic subject or sub-
jects covered by the program of the Academy. 
"(ii) Any full-time public or private elementary or second-
ary school teacher of a key academic subject or vocational 
and technology education subject, including an elementary 
school teacher of the general curriculum, shall be eligible 
to receive an award under this subparagraph. 
"(iii) The amount of a teacher's award under this sub-
paragraph shall not exceed $5,000 and shall be available 
for any purpose the recipient chooses. 
"(iv) Each Academy receiving an award under clause 
(i) of this subparagraph shall select teachers to receive 
awards from nominations received from local educational 
agencies, public and private elementary and secondary 
schools, teachers, associations of teachers, parents, associa-
tions of pgirents and teachers, businesses, business groups, 
and student groups. 
"(v) The Academy shall select award recipients under 
this subparagraph in accordance with criteria developed 
by the Academy and approved by the State educational 
agency. The selection criteria may take into account teach-
er's success in— 
"(I) educating disadvantaged children and children 
with disabiUties; 
"(II) educating gifted and talented children; 
"(III) encouraging students to enroll, and succeed, 
in advanced classes in a key academic subject or voca-
tional and technology education subject; 
"(IV) teaching a key academic subject or vocational 
and technology education subject successfully in 
schools educating large numbers of educationally dis-
advantaged students, including schools in low-income 
inner-city or rural eireas; 
"(V) introducing a new curriculum in a key academic 
subject into a school or strengthening an established 
curriculum; 
"(VI) acting as a master teacher; and 
"(VII) other criteria as developed by the Academies 
and approved by the State educational agency. 
20 use 1102e. 
«SEC. 606. STATE ACADEMIES FOR SCHOOL LEADERS. 
"(a) PURPOSE; DEFINITIONS.— 
"(1) PURPOSE.—It is the purpose of this section to improve 
the training and performance of school principals and other 
school leaders and to increase the nimiber of persons who 
are highly trained to be principals and school leaders by 
establishing an Academy for current and prospective school 
leaders in every State. 
"(2) DEFINITIONS.—For the purpose of this section— 
"(A) the term 'Academy* means a course of instruction 
and related activities to increase a school leader's knowl-
edge of the tools and techniques of school management 
and leadership, and such leader's ability to exercise such 
tools and techniques in the school setting, and may include 
a course of instruction for school district level system lead-
ers separately or in combination with school leaders and 
teachers, except that such term— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 667 
"(i) does not mean a physical facility; and 
"(ii) does not require a separate location from another 
Academy or otiier training program; and 
"(B) the term 'eligible entity^ means a technical assistance 
center assisted under subpart 2 of part C of title V of 
this Act as such Act was in effect on the day before the 
date of enactment of the Higher Education Amendments 
of 1992, a local educational agency, an institution of higher 
education, a museum, a private nonprofit educational 
organization of demonstrated effectiveness, or a consortium 
of any 2 or more such entities. 
"(b) APPLICATION REQUIRED.— 
"(1) IN GENERAL.—(A) Each eUgible entity desiring to operate 
an Academy under this section shall submit an application 
to the State educational agency at such time, in such manner 
and accompanied by such information as the State may reason-
ably require. Such Academy may be operated in cooperation 
or consortium with an Academy of another State. 
"(B) A priority for awards shall be given to entities who 
received fiinds imder subpart 2 of part C of title V of the 
Higher Education Act as in effect on September 30, 1991. 
"(2) CONTENTS.—^Each application submitted pursuant to 
paragraph (1) shall describe— 
"(A) the goals of the Academy and the steps that shall 
be taken to evaluate the extent to which the Academy 
reaches its goals; 
"(B) the curriculvmi to be used or developed by the Acad-
emy; 
"(C) the steps to be taken to recruit school leaders for 
the Academj^s program, including outreach efforts to iden-
tify and attract— 
"(i) minority group members; 
"(ii) individuals with disabiUties; 
"(iii) individueds from areas with large numbers or 
concentrations of disadvantaged students; and 
"(iv) other individuals with potential to become 
school leaders; 
"(D) efforts to be teiken to disseminate information about 
the Academy; 
"(E) selection criteria to be used in identifying school 
leaders to participate in the Academy; 
"(F) steps to be taken to assure that the programs offered 
by the Academy shall be of sufGcient len^h and com-
prehensiveness to significantly 
improve participants' 
knowledge; 
"(G) steps to be taken to fissure the involvement of pri-
vate sector managers and executives from businesses in 
the conduct of the Academy's programs; and 
"(H) efforts to be undertaken to evaluate the impact 
of the Academy on participants. 
"(c) USE OF ALLOTTED FUNDS.— 
"(1) GRANTS.—Each State educational agency receiving an 
allotment under this part shall use the fimds reserved pursuant 
to section 501(b)(2)(B)(ii)(I) to award a competitive grant to 
an ehgible entity to enable such eUgible entity to operate an 
Academy in accordance with the provisions of this subpart. 
106 STAT. 668 
PUBLIC LAW 102-325—JULY 23, 1992 
"(2) COSTS.—^Each eligible entity receiving a grant under 
this section shall use such funds to meet the costs of carrying 
out the activities described in subsection (d), which may include 
reasonable startup and initial operating costs, and stipends, 
travel, and living expenses for participants in the Academy 
if no other funds are available to pay such costs. 
"(3) LIMITATIONS.— 
"(A) PARTICIPANTS.—At least 70 percent of the partici-
pants in an Academy shall be from the school building 
level. 
"(B) SPECIAL RULE.—In awarding grants vuider this sec-
tion, the State educational agency may provide for the 
location at the same site of Academies assisted under this 
section and Academies assisted under section 505. 
"(d) AUTHORIZED ACTIVITIES.—Each eUgible entity receiving a 
grant to operate an Academy under this section may use such 
grant fiinds for— 
"(1) developing and enhancing of participants' knowledge in 
:p,n instructional leadership, school-based management, shared 
decisionmaking, school improvement strategies and school-level 
accountability mechanisms; 
"(2) identifying candidates, including members of minority 
groups, individuals with disabilities, and individuals from 
schools with high numbers or concentrations of educationally 
disadvantaged students and individuals who are bilingual, to 
be trained as new school leaders; 
"(3) conducting programs which provide for the involvement 
of private sector managers and executives from businesses; 
"(4) identifying models and methods of leadership training 
£ind development that are promising or have proven to be 
successful; 
"(5) providing intensive trsiining and development programs 
for current school leaders seeking enhanced and up-to-date 
knowledge needed to perform their jobs effectively; 
"(6) identifying local educational agencies and schools with 
principal and other school leader vacancies and working with 
such agencies and schools to match Academy participants with 
such vacancies; 
"(7) facilitating internships for graduates of the program 
for new school leaders, under the guidance and supervision 
of experienced administrators; 
"(8) providing periodic follow-up development activities for 
school leaders trained through the Academ3^s programs; 
"(9) disseminating information about the Academy, including 
the training curricula developed; 
"(10) coordinating activities with those of any State Acad-
emies for Teachers established in the State; and 
"(11) any other activity proposed by the applicant in the 
application submitted pursuant to subsection (b) and approved 
by the State educational agency. 
"(e) COST-SHARING.—Funds received under this section may be 
used to pay not more than 75 percent of the cost of operating 
an Academy in the first year an eligible entity receives a grant 
under this subpart, 65 percent of such cost in such second year, 
55 percent of such cost in such third year, 45 percent of such 
cost in such fourth year, and 35 percent of such cost in such 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 669 
fifth year. The remaining share shall be provided from non-Federal 
sources, and be in cash or in kind, fairly valued. 
"SEC. 507. INSTITUTIONS OF HIGHER EDUCATION USES OF FUNDS. 20 USC 1102f. 
"(a) APPLICATIONS.—Institutions of higher education desiring to 
receive a grant under section 501(b)(2)(B)(u)(II) shsdl submit to 
the State educational agency an application which— 
"(1) describes the types of activities that the institution plans 
to xmdertake with funds provided; 
"(2) describes the process used by the institution to determine 
the State's needs for improving teacher education and training 
for preschool and early childhood education speciaUsts, includ-
ing consulting with current students, teachers, representatives 
from local educational agencies, parents, and representatives 
from preschool and early childhood specialists; 
"(3) if such institution is appl3dng for a grant to assist local 
educational agencies in provicUng inservice training for teach-
ers, describes the training and services that such institution 
plans to provide for teachers within the local educational agency 
and demonstrates that such training and services are consistent 
with the needs of the local educational agencies to be served; 
"(4) if such institution is appl3ring for a grant to establish 
a professional development academy, contains the information 
required pursuant to section 508; 
"(5) describes how the institution plans to integrate academic 
and vocational teacher education programs; and 
"(6) contains any other information that may be required 
by the State educational agency. 
"(b) AWARDS.—The State educational agency shall award grants 
on a competitive basis to institutions of higher education that 
have departments, schools, or colleges of education. In awarding 
grants, the State educational agency shall award ftuids for the 
following purposes: 
"(1) For the establishment of professional development acad-
emies pursuant to section 508. 
"(2) For the establishment and maintenance of programs 
that provide teacher training to individuals who are moving 
to a career in education from another occupation. 
"(3) For institutions of higher education in consultation and 
cooperation with a local educational agency or a consortium 
of local educational agencies, to develop and provide technical 
assistance to local education agencies in providing inservice 
training for teachers. 
"(4) For improving teacher education programs in order to 
further innovation in teacher education programs within an 
institution of higher education and to better meet the needs 
of the local educational agencies for well-prepared teachers. 
"(5) For improving training for preschool and early childhood 
education specialists, including preschool and early intervention 
services for infants and toddlers with disabiHties, in order 
to further innovation in such programs with institutions of 
higher education and to better meet the needs of preschool 
and early childhood education programs for well-prepared per-
sonnel. 
"(6) To integrate tiie instruction of academic and vocational 
teacher education programs. 
106 STAT. 670 
PUBLIC LAW 102-325—JULY 23, 1992 
"(7) For activities to encourage individuals, especially individ-
uals from minority groups, to pursue a career in education. 
"(8) For expanding cooperative educational programs between 
State educational agencies and offices, schools, and school sys-
tems, institutions of higher education, appropriate educational 
entities, and private sector establishments involved in edu-
cation between the United States and the RepubHc of Mexico 
for the purpose of providing bilateral teaching initiatives and 
programs that provide teacher training experiences between 
the educational commimities of the United States and those 
of the Republic of Mexico £ind to enhance mutually beneficial 
educational activities involving researchers, scholars, faculty 
members, teachers, educational administrators, and other spe-
cialists to lecture, teach, conduct research, and develop coopera-
tive programs. 
"(9) When the study of teacher education programs is com-
pleted in accordance with section 504(c), to implement the 
program and policy changes for teacher education programs 
resulting from the findings of such study. 
20USC1102g. 
"SEC. 508. PROFESSIONAL DEVELOPMENT ACADEMIES. 
"(a) AUTHORITY; DEFINITIONS.— 
"(1) AUTHORITY.—From amoimts reserved pursuant to section 
501(b)(2)(B)(ii)(II), the State educational agency is authorized 
to make grants to, and enter into contracts and cooperative 
agreements with, eligible entities to plan, estabhsh, and operate 
professional development academies. 
"(2) DEFINITIONS.—For purposes of this section— 
"(A) the term 'Academy* means school-based teacher 
training operated as a partnership between one or more 
elementary or secondary schools and one or more institu-
tions of mgher education that provides prospective and 
novice teachers an opportunity to work imder the guidance 
of master teachers and college faculty members. Such Acad-
emy shall be established for the purpose o
f
— 
"(i) the training of prospective and novice teachers 
(including preschool and early childhood education spe-
cialists, where appropriate) under the guidance of mas-
ter teachers and teacher educators; 
**(ii) the continuing development of experienced 
teachers; 
"(iii) research and development to improve teaching 
and learning and the organization of schools; 
"(iv) pubHc demonstration of exemplary learning pro-
grams for diverse students; and 
*
*
(
v
) dissemination of knowledge produced in the 
research and development process; 
except that such term— 
**(i) does not mean a physical facility; and 
"(ii) does not require a separate location from another 
Academy or other training program; and 
*
*
(
B
) the term 'eUgible entity means a partnership that 
includes one or more local educational agencies and one 
or more institutions of higher education and may include 
teachers and the business community. 
"(b) AWARDS AND RENEWALS.—^An award made under this section 
may be in the form of a one-year planning grant. Such award 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 671 
may be renewed for implementation purposes without further com-
petition annually for 4 additional years, upon submission of an 
evaluation of the project to the State educational agency and assur-
ances that the recipient— 
"(1) has achieved the goals set out in its appUcation for 
the original term; 
"(2) shows promise of continuing its progress; 
"(3) will meet its share of the project costs; and 
"(4) has developed a plan for continuing the Academy after 
Federal funding is no longer available. 
"(c) APPLICATION REQUIRED.— 
"(1) IN GENERAL.—Each eligible entity desiring to operate 
an Academy under this section shall submit an application 
to the State educational agency at such time, in such manner, 
and accompginied by such information as the State educational 
agency may reasonably require. 
"(2) CONTENTS.—Each application submitted pursuant to sub-
section (a) shall describe— 
"(A) what schools within the local educational agency 
and what institutions of higher education shaU participate 
in the partnership or otherwise participate in the program; 
"(B) the goals of the Academy and the steps that shall 
be taJcen to evaluate the extent to which the Academy 
reaches such goals; 
"(C) a plan for monitoring progress and evaluating the 
effectiveness of the Academy in meeting the goals it has 
developed for teacher and student performance; 
"(D) a description of the partnership's plan for systemic 
change in education, and a description of the activities 
and services for which assistance is sought; 
"(E) ways in which the professional development pro-
grams shall cover course content in key academic subjects, 
methods of instruction, and classroom and school-based 
management skiUs; 
"(F) plans to involve prospective and novice teachers 
in the programs offered by the Academy, including outreach 
efforts to identify and attract— 
"(i) minority group members; 
"(ii) individuals with disabiUties; and 
"(iii) individuals from areas with large numbers or 
concentrations of disadv£intaged students; and 
"(G) estimates of the number of prospective and begin-
ning teachers to be trained in the Academy in each year 
of the project and assurances that a significant number 
of prospective and beginning teachers wiU be trained in 
the Academy in each year of the project. 
"(3) ASSURANCES.—Each appUcation submitted pursuant to 
this subsection shall contain assurances that— 
"(A) professional development programs at the Academy 
shall be designed and conducted by faculty members from 
institutions of higher education and teachers from local 
schools of demonstrated excellence; 
"(B) in estabUshing the Academy, the applicant has con-
sulted with teachers, administrators, and parents who will 
be affected at the teaching school site; 
106 STAT. 672 
PUBLIC LAW 102-325—JULY 23, 1992 
"(C) participating faculty from institutions of higher edu-
cation shall include faculty members who are experts in 
the key academic subjects; and 
*
*
(
D
) the activities, services and programs offered by the 
Academy 
shall be of sufficient 
length 
and com-
prehensiveness to significantly 
improve participants' 
knowledge. 
"(4) PRIORITIES.—^In making awards under this part, the State 
educational agency shall give priority to applicants that— 
"(A) select Academy sites based on need, as evidenced 
by such measures as a high rate of teacher attrition or 
a high proportion of the student body at risk of educational 
failure; 
"(B) propose projects that demonstrate the strong com-
mitment to or previous active support for educational 
innovation; 
"(C) propose projects that demonstrate collaboration with 
other educational organizations, social or himian service 
agencies, other community organizations, and the business 
community in the teaching school's operation; 
"(D) demonstrate potential for a significant impact on 
the guaHty of the future education work force; and 
"(E) demonstrate the long-term feasibility of the partner-
ship. 
"(5) SPECIAL RULES.—Each such appUcation shall describe— 
"(A) how the local educationsQ agency will address the 
need to change or waive a local rule or regulation that 
is found by an Academy to impede the school's progress 
- 
in achieving its goals; and 
"(B) how partners that are institutions of higher edu-
cation will involve the School of Education, the School 
_ 
of Arts £ind Sciences, and the School of Technology or 
Engineering and any other department of the institution. 
"(d) USE OF ALLOTTED FUNDS.— 
"(1) PERMITTED USES.—Each eUgible entity receiving a grant 
under this section shall use such funds to meet the operating 
costs of carrying out the activities described in subsection (e), 
which may include reasonable startup and initial operating 
costs, Stan development, purchase of books, materials, and 
equipment, includmg new technology, costs associated with 
release time, pajnnent of personnel directly related to the oper-
ation of the Academy, and participation in the activities of 
a network of Academies. 
"(2) LIMITATIONS.—The Secretary may limit the amounts of 
funds that may be used for minor remodeling and the piurchase 
of equipment imder this part. 
"(e) AUTHORIZED ACTIVITIES.—^Each eligible entity receiving a 
grant to operate an Academy under this section may use such 
grant funds for— 
"(1) training and internship activities for prospective or novice 
teachers in a school setting imder the guidance of master 
or mentor teachers and faculty from institutions of higher edu-
cation, especially faculty who are experts in key academic sub-
jects; 
"(2) mentoring and induction activities for prospective and 
novice teachers, including such teachers seeking to enter teach-
ing through alternative routes; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 673 
"(3) participation of experienced teachers in the internship 
training and assessment of prospective and beginning teachers; 
"(4) teaching skills and strategies to increase tiie ability 
of prospective, novice and experienced teachers to teach dis-
advantaged students, students with disabilities (including stu-
dents with severe and multiple disabilities and students with 
lesser known or newly emerging disabiUties), students who 
are limited-English proficient, and students from diverse cul-
tural backgroimds; 
"(5) programs to enhance teaching and classroom manage-
ment skills, including school-based management skills, of nov-
ice, prospective and e^erienced teachers; 
"(6) experimentation and research to improve teaching and 
learning conducted in the Academy by teachers and imiversity 
faculty; 
"(7) activities to integrate academic and vocational education; 
"(8) training and other activities to promote the continued 
learning of experienced teachers, especially in their subject 
matter knowledge and how to teach it; 
"(9) participation of expert practicing teachers and adminis-
trators in the university-based education studies of prospective 
teachers; 
"(10) activities designed to disseminate information about 
the teaching strategies acquired through the Academy with 
other teachers in the district's schools; 
"(11) organizational restructuring, including the introduction 
of new roles and staffing patterns in the school and imiversity; 
"(12) activities intended to address the effects of chronic 
community violence, such as violence counseling and conflict 
resolution training; and 
"(13) other activities proposed by the applicant and approved 
by the Secretary. 
"(f) COST-SHARING.—Fimds received under this section may be 
used to pay 100 percent of the cost of a planning grant and not 
more than 75 percent of the cost of operating an Academy in 
the first 2 years an ehgible entity receives a grant under this 
subpart and not more than 50 percent of such cost in such third 
and fourth years. The remaining share shall be provided from 
non-Federal sources, and may be in-kind, fairly valued. 
**SEC. 509. FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT REGU- 
20 USC 1102h. 
LAR NONFEDERAL FUNDS. 
"A State educational agency, local educational agency, or institu-
tion of higher education may use fiinds received under this part 
only so as to supplement and, to the extent practicable, increase 
the level of funds that would be available from non-Federal sources 
for the uses of fiinds under this part and in no case may such 
fiinds be so used as to supplant such fimds from such non-Federal 
sources. 
^^EC. 510. COORDINATION WITH OTHER PROGRAMS. 
20 USC 11021. 
"The State educational agency shall ensure that activities con-
ducted under this part shall be consistent witih the go^s and 
objectives of any Federal or State systemic educational reform 
activities. 
59-194 O—93 
23 : QL 3 (Pt. 1) 
106 STAT. 674 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 1102J. 
«SEC. 510A. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part 
$350,000,000 for fiscal year 1993 and such sums as may be nec-
essary for each of the 4 succeeding fiscal years. 
"PART B—NATIONAL TEACHER ACADEMIES 
20 use 1103. 
«SEC. 611. PROGRAM ESTABLISHED. 
"(a) IN GENERAL.—^The Secretary is authorized, in accordance 
with the provisions of this part, to make grants to eligible recipients 
to estabUsh and operate National Teacher Academies. 
"(b) SUBJECT AREAS AND STAFF.— 
"(1) SUBJECT AREAS.—^At least 1 but not more than 3 National 
Teacher Academies shall be estabUshed in each of the following 
subject areas commonly taught in elementary and secondary 
schools: 
"(A)Enghsh. 
"(B) Mathematics. 
"(C) Science. 
"(D)ffistory. 
"(E) Geography. 
"(F) Civics and government. 
"(G) Foreign languages. 
"(2) STAFF.—^Academy staff shall be selected from the most 
accomphshed and prominent scholars in the relevant fields 
of study and in the methodologies which improve the skills 
of persons who teach in such fields of study. 
"(c) DURATION OF GRANT.—Each grant to estabUsh and operate 
a National Teacher Academy shall be for a period of 3 years, 
and is renewable. 
"(d) COMPETITIVE GRANT AWARDS.—The Secretary shall award 
grants under this part on a competitive basis. 
"(e) CONSISTENCY WITH SYSTEMIC REFORMS.—In awarding grants 
under this part, the Secretary shall ensure that activities conducted 
under this part are consistent witii the goals and objectives of 
other Federal or State systemic educational reform activities. 
20 use 1103a. 
<^EC. 512. ELIGIBLE RECIPIENTS. 
"(a) IN GENERAL.—For the purposes of this part, the term 'eligible 
recipient'means— 
"(1) an institution of higher education; 
"(2) a private nonprofit educational organization of dem-
onstrated effectiveness; or 
"(3) a combination of the institutions or organizations set 
forth in paragraphs (1) and (2) of this paragraph. 
"(b) EXPERTISE REQUIREMENTS.—The Secretary shall only award 
grants to eUgible recipients that have demonstrated expertise in 
the— 
"(1) subject area of tiie National Teacher Academy to be 
estabUshed and operated; and 
"(2) in-service training of teachers at the national. State, 
and local levels. 
20 use 1103b. 
«SEC. 513. USE OF FUNDS. 
"(a) IN GENERAL.—^Funds provided pursuant to this part shall 
be used to— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 675 
"(1) provide in-service training programs for teachers and 
administrators, including— 
"(A) programs which emphasize improving the teachers* 
knowledge in the particular subject area of the National 
Teacher Academy; 
"(B) programs which integrate knowledge of subject mat-
ter with techniques for communicating that knowledge to 
students, inducing students who are disadvantaged, lim-
ited-English proficient, drug- or alcohol-exposed, or who 
have disabilities; 
"(C) the use of the most recent applied research findings 
concerning education and the classroom; and 
"(D) integration of materials fi*om different disciplines 
into classroom instruction, especially for elementary school 
teachers; 
"(2) conduct each year at least one summer institute of at 
least 3 weeks duration for the State delegations described in 
section 515; and 
"(3) provide support services to the State Academies for 
Teachers, including— 
"(A) the establishment of a national network of individ-
uals to assist in teacher education programs in State Acad-
emies for Teachers; 
"(B) consultation 
assistance 
in 
the 
design £ind 
implementation of in-service teacher training programs; 
and 
"(C) monthly newsletters or other methods of commu-
nicating usefiil information. 
"(b) ADMINISTRATIVE COSTS.—Not more than 10 percent of the 
amount of funds received imder this part may be used by an 
eligible recipient for administrative costs. 
"SEC. 514. APPUCATION. 
20 USC 1103c. 
"(a) APPLICATION.—Each eUgible recipient desiring a grant xmder 
this part shall submit an appUcation to the Secretary at such 
time and in such manner as the Secretary may reasonably require. 
"(b) CONTENTS.—Each application submitted pursuant to sub-
section (a) sh£dl— 
"(1) describe the activities, services, and programs for which 
assistance is sought; 
"(2) describe how at least 70 percent of the National Teacher 
Academy's time shedl be devoted to basic course content rel-
evant to the particulEir subject field and necessary for improving 
the qu£ility of teaching in pubhc and private elementary and 
secondary schools; 
"(3) describe how not more than 30 percent of the National 
Teacher Academy's time shall be devoted to methods of instruc-
tion relevant to the particxilar subject field; 
"(4) describe how the National Teacher Academjr's activities 
will be coordinated with or administered cooperatively with 
institutes established by other Federal entities, such as the 
National Science Foundation and the National Endowment for 
the Humanities; and 
"(5) provide such additionsd assurances or information as 
the Secret£iry may reasonably require. 
106 STAT. 676 
PUBLIC LAW 102-325—JULY 23,1992 
20 use 1103d. 
«SEC. 616. STATE DELEGATIONS. 
"(a) IN GENERAL.—Each selection panel established pursuant to 
section 516(b) shall select a State delegation to participate in each 
National Teacher Academy assisted under this part. 
*
*
(
b
) COMPOSITION.— 
'^(1) IN GENERAL.—Except as provided in paragraphs (2) £uid 
(3), each State delegation described in subsection (a) shall, 
at a minimum, be composed o
f
— 
*
*
(
A
) 1 school administrator with authority to design and 
conduct in-service teacher training and academic programs; 
£Uld 
"(B) at least 5 teachers, of whom at least 2 shall be 
elementary school teachers. 
"(2) SPECIAL RULE.—The State delegations for the Common-
wealth of the Northern Mariana Islands, Guam, the Virgin 
Islands, American Samoa and the RepubUc of Palau (until 
the Compact of Free Association is ratified) shall, at a mini-
mum, be composed o
f
— 
"(A) 1 school administrator with authority to design and 
conduct in-service teacher training and academic programs; 
and 
''(B) at least 3 teachers, of whom at least 1 shall be 
an elementary school teacher. 
*(3) ADDITIONAL TEACHERS.— 
"(A) Each State that has obtained the approval of the 
appropriate National Teacher Academy may send to such 
National Teacher Academy the number of additional teach-
ers determined in accordance with subparagraph (B). 
"(B) The appropriate National Teacher Academy shall 
determine the number of additional teachers to attend 
such National Teacher Academy on the basis of the niunber 
of full-time equivalent teachers in the State compared to 
such number in all States. 
*
*
(
c
) DUTIES.—Each State delegation shall— 
"(1) attend the appropriate subject area summer institute 
at the appropriate National Teacher Academy; and 
"(2) after participation in the National Teacher Academy 
assist in tiie development and operation of the appropriate 
National Teacher Academy. 
20 u s e llOSe. 
«SEC. 616. SELECTION. 
"(a) IN GENERAL.—Individuals participating in a National Teacher 
Academv shall be selected by the selection panel described in sub-
section (b) in accordance with the provisions of section 515. 
"(b) SELECTION PANEL.— 
"(1) ESTABLISHMENT.—Each State educational agency receiv-
ing assistance under part A of this title shall establish a 10-
member selection panel to select teachers to attend the National 
Teacher Academies estabUshed pursuant to this part. 
"(2) COMPOSITION AND REPRESENTATION.— 
"(A) COMPOSITION.—At least 50 percent of the mem-
bership of each selection panel shall be classroom teachers, 
selected in consultation with teacher organizations, if any, 
in the State. 
"(B) REPRESENTATION.—^The composition of each selection 
panel shcdl be broadly representative of the elementary 
and secondary schools and the State. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 677 
information. 
"(3) FUNCTION.—Each selection panel shall— 
"(A) annually select the State delegations in accordance 
with section 515; and 
"(B) involve the individuals selected pursuant to sulnJara-
graph (A) in the operation of the State academies, if any, 
or other in-service training activities in the local edu-
cational agency in which such individuals teach. 
«SEC. 617. NATIONAL TEACHER ACADEMY EVALUATION. 
20 USC 1103f. 
'The Secretary shall evaluate the system of National Teacher 
Academies and the effects of such academies on teachers every 
2 years. The Secretary shall make available to the Congress and Public 
the public the results of such evaluation. 
"SEC. 618. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1103g. 
"(a) IN GENERAL.—^There are authorized to be appropriated 
$35,000,000 for fiscal year 1993 and such sums as may be necessary 
for the 4 succeeding fiscal years to carry out the provisions of 
this part, of which not more than $5,000,000 shall be available 
for each of the National Teacher Academy subject areas Usted 
in section 511(b)(1). 
"(b) SPECIAL RULES.— 
"(1) APPROPRIATIONS LESS THAN $14,000,000.—If the amoimt 
appropriated pursuant to the authority of subsection (a) is 
less than $14,000,000, then not more than $2,000,000 shall 
be available for each National Teacher Academy subject area 
in the order in which such subject areas are listed in section 
511(b)(1), until such funds are expended. 
"(2) APPROPRIATIONS EQUAL TO OR IN EXCESS OF $14,000,000.— 
If the amoimt appropriated pursuant to the authority of sub-
section (a) is equal to or exceeds $14,000,000, then such funds 
as equals or exceeds $14,000,000 shall be allocated equitably 
among each of the National Teacher Academy subject areas 
Ksted in section 511(b)(1). 
"PART 
C—TEACHER 
SCHOLARSHIPS 
AND 
FELLOWSHIPS 
"Subpart 1—Paul Douglas Teacher Scholarships 
"SEC. 521. PURPOSE; DESIGNATION. 
20 USC 1104. 
"(a) PURPOSE.—It is the purpose of this subpart to make available, 
through grants to the States, scholarships to individuals who are 
outstanding secondary school graduates £uid who demonstrate an 
interest in teaching, in order to enable and encourage those individ-
uals to pursue teaching careers in education at the preschool, 
elementary or secondary level. 
"(b) DESIGNATION.—Scholarships awarded under this subpart 
shall be referred to as the Tavd Douglas Teacher Scholarships'. 
"SEC. 622. ALLOCATION AMONG STATES. 
20 USC 1104a. 
"(a) ALLOCATION.—From the sums appropriated for this subpart 
for any fisced year, the Secretary shall allocate to any State an 
amoimt based on the school-age population in the State compared 
to the school-age population in £dl States. 
"(b) USE OF CENSUS DATA.—For the purpose of this section, 
the number of persons in a State and in all States shall be deter-
106 STAT. 678 
PUBLIC LAW 102-325—JULY 23, 1992 
mined by the most recently avails^ble data from the Bureau of 
the Census. 
20 use 1104b. 
*«EC. 623. GRANT APPUCATIONS. 
"(a) SUBMISSION OF APPLICATIONS.—The Secretary is authorized 
to make grsmts to States in accordance with the provisions of 
this subpart. In order to receive a grant under this subpart, a 
State shall submit an application at such time or times, in such 
manner, and containing such information as the Secretary may 
prescribe by regulation. Such application shall set forth a program 
of activities for carrying out the purposes set forth in section 521 
in such detail as will enable the Secretary to determine the degree 
to which such program will accomphsh such purposes and such 
other poHcies, procedures, and assurances as the Secretary may 
require by regulation. 
"(b) CONTENT OF APPLICATIONS.—The Secretary shall approve 
an application imder this subpart only if the application— 
"(1) describes the selection criteria and procedures to be 
used by the State in the selection of scholarship recipients 
under this subpart; 
"(2) designates as the State agency responsible for administer-
ing the grants received under this subpart the State agency 
which administers the program under subpeirt 4 of part A 
of title IV (relating to State student incentive grants), the 
State agency with which the Secretary has an agreement \mder 
section 428(b), or another appropriate State agency approved 
by the Secretary; 
"(3) describes the outreach effort the State agency intends 
to use to publicize the availability of Paul Douglas Scholarships 
to secondary school students in the State; 
"(4) describes how the State will inform recipients, upon 
receipt of the award, of current and projected teacher shortages 
and surpluses within the State; 
Contracts. 
"(5) provides assurances that each recipient eligible under 
section 525(b) of this subpart who receives a Paul Douglas 
Scholarship shall enter into an agreement with the State agency 
under which the recipient shall— 
"(A) within the 10-year period after completing the post-
secondary education for which the Paul Douglas Teacher 
Corps Scholarship was awarded, teach for a period of not 
less than 2 years for each year for which assistance was 
received, in a pubUc or private nonprofit preschool, 
elementary, or secondary school in any State, or, on a 
full-time basis, children with disabilities or children with 
limited English proficiency in a private nonprofit school, 
except that, in the case of individuals who teach in a 
shortage area established by the Secretary pursuant to 
section 530A, the requirements of this subparagraph shall 
be reduced by one-half; 
"(B) provide the State agency evidence of compUance 
with section 526 as required by the State agency; and 
"(C) repay all or part of a Paul Douglas Scholarship 
received under section 524 plus interest £uid, if appUcable, 
reasonable collection fees, in compUance with regulations 
issued by the Secretary imder section 527, in the event 
that the conditions of subparagraph (A) are not complied 
Avith, except as provided for in section 528; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 679 
"(6) provides that the agreement entered into with recipients 
shall fully disclose the terms and conditions under which assist-
ance under this subpart is provided and under which repayment 
may be required, including— 
"(A) a description of the procedures required to be estab-
lished under paragraph (7); and 
"(B) a description of the appeals procedures required 
to be estabUshed under paragraph (8) under which a recipi-
ent may appeal a determination of noncompliance with 
any provision under this subpart; 
"(7) provides for procedures under which a recipient of assist-
ance received under this subpart who teaches for less than 
the period required under paragraph (5XA) will have the repay-
ment requirements reduced or eliminated consistent with the 
provisions of sections 527 and 528; 
"(8) provides for appeals procedures under which a recipient 
may appeal any determination of noncompliance with any provi-
sion under this subpart; and 
"(9) provides assiu-ances that the State agency shall make 
particiilar efforts to attract students from low-income back-
grounds; ethnic and racial minority students; individuals with 
disabihties; 
other 
individuals 
from 
groups 
historically 
underrepresented in teaching; individu^s who express a 
willingness or desire to teach in rural schools, urban schools, 
or schools having less than average academic results or serving 
Isirge numbers of economically disadvantaged students; or 
women or minorities who show interest in pursuing teaching 
careers 
in 
mathematics 
and 
science 
and 
who 
are 
underrepresented in such fields. 
"(c) SELECTION CRITERIA AND PROCEDURES.—The State edu-
cational agency, in cooperation with the State higher education 
agency, and pursuant to scholarship selection criteria included in 
section 525, shall establish criteria to select Paul Douglas Teacher 
Scholarship recipients. These criteria shall be intended to attract 
highly qualified individuals into teaching, to ensure that these 
students are enrolled or are accepted for enrollment in approved 
teacher education programs, and to meet the present and projected 
needs of States in addressing teacher shortages, including the 
demand for and supply of early childhood and elementary teachers 
in the State, the demand for and supply of secondary teachers 
in the State, and the demand for teachers with training in specific 
academic disciplines in the State. 
"(d) SPECIAL CONSIDERATION.—The State educational agency, in 
cooperation with the State higher education agency, shall give spe-
cial consideration in the selection of scholarship recipients to 
individuals who^ 
"(1) intend to teach or provide related services to students 
with disabilities; 
"(2) intend to teach limited English proficient students; 
"(3) intend to teach preschool age children; 
"(4) intend to teach in schools servicing inner city or rural 
or geographically isolated areas (as defined by the Secretary 
by regulations consistent with the purposes of this section); 
"(5) intend to teach in curricular areas or geographic areas 
where there are demonstrated shortages of qualified teachers; 
or 
106 STAT. 680 
PUBLIC LAW 102-325—JULY 23, 1992 
"(6) are from disadvantaged backgrounds, including racial 
and ethnic minorities and individuals with disabilities, and 
are underrepresented in the teaching profession or in the cur-
ricular areas in which they are preparing to teach. 
"(e) SOLICITATION OF VIEWS ON SELECTION CRITERIA AND PROCE-
DURES.—In developing the selection criteria and procedures to be 
used by the State, the State shall solicit the views of local edu-
cationsd agencies, private educational institutions, and other 
interested parties. Such views— 
"(1) shall be solicited by means o
f
— 
"(A) written comments; and 
"(B) publication of proposed selection criteria and proce-
dures in final form for implementation; and 
"(2) may be solicited by means o
f
— 
"(A) public hesirings on the teaching needs of elementary 
and secondary schools in the State (including the number 
of new teachers needed, the expected supply of new teach-
ers, and the shortages in the State of teachers with specific 
preparation); or 
"(B) such other methods as the State may determine 
to be appropriate to gather information on such needs. 
20 use 1104c. 
"SEC. 524. AMOUNT AND DURATION OF AND RELATION TO OTHER 
ASSISTANCE. 
"(a) LIMITATIONS ON AMOUNT AND DURATION.—Subject to sub-
section (c) each Paul Douglas Teacher Scholarship recipient shall 
receive a $5,000 scholarship for each academic year of postsecondary 
education for study in preparation to become a preschool, special 
education, elementary, or secondary teacher. No individual shall 
receive scholarship assistance for more than 4 years of postsecond-
ary education, as determined by the State agency. 
"(b) 
CONSIDERATION OF AWARD IN OTHER PROGRAMS.—Not-
withstanding the provisions of title IV of this Act, scholarship 
funds awarded pursuant to this part shall be considered in deter-
mining eligibihty for student assistance under title IV of this Act. 
"(c) ASSISTANCE NOT TO EXCEED COST OF ATTENDANCE.—NO 
individual shall receive an award under the Paul Douglas Teacher 
Scholarship established under this subpart, in any academic year, 
which exceeds the cost of attendance, as defined in section 472 
of this Act, at the institution the individusd is attending. A scholar-
ship awarded under this part shall not be reduced on the basis 
of the student's receipt of other forms of Federal student financial 
assistance, but shall be taken into account in determining the 
eligibility of the student for those other forms of Federal student 
financial assistance. 
20 use 1104d. 
"SEC. 525. SELECTION OF PAUL DOUGLAS TEACHER SCHOLARS. 
"(a) SELECTION BY STATEWIDE PANELS.—Paul Douglas Teacher 
Scholars shall be selected by a 7-member statewide panel appointed 
by the chief State elected official, acting in consultation with the 
State educational agency, or by an existing grant agency or panel 
designated by the chief State elected official and approved by the 
Secretary. The statewide panel shall be representative of school 
administrators, teachers, including preschool and special education 
teachers, and parents. 
"(b) ELIGIBILITY FOR SELECTION; SELECTION CRITERIA AND PROCE-
DURES.—Selections of Paul Douglas Scholars shall be made from 
students who have graduated or who are graduating from secondary 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 681 
school and who rank in the top 10 percent of their graduating 
class. The State educational agency shall make appUcations avail-
able to pubUc and private nonprofit secondary schools in the State 
and in other locations convenient to applicants, parents, and others. 
The statewide psinel shall develop criteria and procedures for the 
selection of Paul Douglas Scholars. Such criteria may include the 
apphcant's secondary school grade point average, involvement in 
extracurricular activities, financial need, and expression of interest 
in teaching as expressed in an essay written by the applicant. 
The panel may also require the appHcant to furnish letters of 
recommendation from teachers and otners. 
"(c) WAIVER.—^The Secretary may waive the requirements of sec-
tion 523(d) for not more than 25 percent of all individuals receiving 
a scholarship under this subpart. 
"SEC. 526. SCHOLARSHIP CONDITIONS. 
20 USC 1104e. 
"Recipients of scholarship assistance vmder this subpart shall 
continue to receive such scholarship pa5mients only during such 
periods that the State agency finds that the recipient is— 
"(1) enrolled as a full-time student in an accredited post-
secondary institution; 
"(2) pursuing a course of study leading to teacher certification; 
and 
"(3) maintaining satisfactory progress as determined by the 
postsecondsiry institution the recipient is attending. 
"SEC. 527. SCHOLARSHIP REPAYMENT PROVISIONS. 
20 USC 1104f. 
"Recipients found by the State agency to be in noncompliance' Regulations, 
with the agreement entered into under section 523(b)(5) of this 
subpart shsdl be required to repay a pro rata amount of the scholar-
ship awards received, plus interest (but in no event at an interest 
rate higher than the rate ^pUcable to loans in the applicable 
period imder part B of title IV of this Act) and, where applicable, 
reasonable coUection fees, on a schedule and at a rate of interest 
to be prescribed by the Secretary by regulations issued pursuant 
to this subpart. 
"SEC. 528. EXCEPTIONS TO REPAYMENT PROVISIONS. 
"(a) DEFERRAL DURING CERTAIN PERIODS.—A recipient shall not 
be considered in violation of the agreement entered into pursuant 
to section 523(b)(5)(C) during any period in which the recipient— 
"(1) is pursuing a full-time course of study related to the 
field of teaching at an ehgible institution; 
"(2) is serving, not in excess of 3 years, as a member of 
the armed services of the United States; 
"(3) is temporarily totally disabled for a period of time not 
to exceed 3 yeaia as established by sworn affidavit of a qualified 
physician; 
"(4) is unable to secure emplojmient for a period not to 
exceed 12 months by reason of the care required by a spouse 
who is disabled; 
"(5) is seeking and unable to find full-time employment for 
a single period not to exceed 12 months; 
"(6) is seeking and imable to find full-time employment as 
a teacher in a pubKc or private nonprofit preschool, elementary 
or secondary school, or education program for a single period 
not to exceed 27 months; or 
20 USC 1104g. 
106 STAT. 682 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 1104h. 
20 use 11041. 
eontracts. 
"(7) satisfies the provisions of additional repayment excep-
tions that may be prescribed by the Secretary in regulations 
issued pursuant to mis subpcirt. 
"(b) FORGIVENESS IF PERMANENTLY TOTALLY DISABLED.—A recipi-
ent shall be excused from repayment of any scholarship assistance 
received under this subpart if the recipient becomes permanently 
totally disabled as established by sworn affidavit of a qualified 
physician. 
«SEC. 529. FEDERAL ADMINISTRATION OF STATE PROGRAMS; JUDICIAL 
REVIEW. 
"(a) DISAPPROVAL HEARING REQUIRED.—The Secretary shall not 
finally disapprove any appUcation for a State program submitted 
imder section 523, or any modification thereof, without first afford-
ing the State agency submitting the program reasonable notice 
and opportunity for a hearing. 
"(b) SUSPENSION OF ELIGIBILITY.—Whenever the Secretary, after 
resisonable notice and opportunity for a hearing to the State agency 
administering a State program approved under this subpart, finds— 
"(1) that the State program has been so changed that it 
no longer complies with the provisions of this subpart, or 
"(2) that in the administration of the program there is a 
fEiilure to comply substantially with any such provisions, 
the Secretary shall notify such State agency that the State will 
not be regarded as eUgible to participate in the program under 
this subp£urt until the Secretary is satisfied that there is no longer 
any such failure to comply. 
"(c) COURT REVIEW.— 
"(1) IN GENERAL.—If any State is dissatisfied with the Sec-
retary's final action under subsection (b) (1) or (2), such State 
may appeal to the United States court of appeals for the circuit 
in which such State is located. The summons and notice of 
appeal may be served at any place in the United States. The 
Secretanr shall forthwith certify and file in the court the tran-
script of the proceedings and the record on which the action 
was based. 
"(2) FINDINGS.—^The findings of fact bv the Secretary, if sup-
ported by substanticQ evidence, shall be conclusive; but the 
court, for good cause shown, may remsuid the case to the 
Secretary to take fiirther evidence, and the Secretary may 
thereupon make new or modified findings of fact and may 
modify any previous action, £ind shall certify to the court the 
transcript and record of fiirther proceedings. Such new or modi-
fied findings of fact shall likewise be conclusive if supported 
by substantial evidence. 
"(3) JURISDIGTION.—The court shall have jurisdiction to afOrm 
the action of the Secretary or to set it aside, in whole or 
in part. The judgment of the court shall be subject to review 
by the Supreme Court of the United States upon certiorari 
or certification as provided in section 1254 of title 28, United 
States Code. 
«SEC. 630. EVALUATION. 
"(a) IN GENERAL.—^The Secretary shall conduct, by grant or con-
tract, an independent evaluation of recipients of scholarship assist-
ance under this subpart, which shall summarize and evaluate the 
State activities assisted under this subpart and the performance 
of such recipients. The evaluation shall assess the impact of the 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 683 
scholarship program assisted under this subpart to determine 
whether such program has brought into teaching a significant num-
ber of highly able individuals who otherwise would not have entered 
teaching. 
"(b) CONTENTS.—The evaluation described in subsection (a) shall 
include— 
"(1) a description of the characteristics, including the edu-
cational preparation and achievement, of recipients of scholar-
ship assistance under this subpart compared to similar students 
participating in teacher training who do not receive such schol-
arships; 
"(2) the rate at which such recipients successfully complete 
academic training and go on to teaching careers in preschool, 
elementary, or secondary education, compared to such rate 
for similar individuals who do not receive scholarship assistance 
imder this subpart; 
"(3) the extent to which it is possible to determine objectively 
that the receipt of scholarship assistance imder this subpart 
was the primary reason for an individual's choice of a teaching 
education and career; 
"(4) the extent to which such recipients comply with the 
provisions of this subpart; 
"(5) the length of time such recipients remain in teaching 
careers, compared to similar teachers who do not receive schol-
arships; 
"(6) the bsirriers to the effectiveness of the program assisted 
under this subpart; and 
"(7) the cost-effectiveness of such program in improving 
teacher quality and quantity. 
"(c) EVALUATION REPORTS.—^The Secretary shall submit such 
interim evaluation reports to the President and the Congress as 
may be appropriate, and shall submit a final report on or before 
Januaiy 1,1997. 
"(d) FUNDING.—^The Secretary shall reserve a total of not more 
th£in $1,000,000 from the amounts appropriated pursuant to the 
authority of section 530B in fiscal years 1993 through 1997 to 
C£irry out this section. 
«SEC. 530A. DESIGNATION OF SHORTAGE AREAS. 
20 USC 1104J. 
"For the purposes of this peirt, the term 'shortage gireas' means 
(1) geographic areas of the State in which there is a shortage 
of elementary and secondary school teachers, and (2) an area of 
shortage of elementary and secondary school teachers in specific 
grade levels and in specific academic, instructional, subject matter, 
and discipline classifications. Such shortage areas shall be pre-
scribed by the Secretary, in consultation with the chief State school 
officer or, in the case of nonprofit private elementary or secondary 
schools, with appropriate officials of nonprofit private schools in 
each State in accordance with this section. In csirrying out the 
provisions of this section, the Secretary shall give special consider-
ation to areas in which emergency certification of individuals in 
a State is being used to correct teacher shortages and to States 
which have retirement laws permitting early retirement. 
"SEC. 530B. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1104k. 
"There are authorized to be appropriated $26,000,000 for fiscal 
year 1993 and such simis as may be necessary for each of the 
4 succeeding fiscal years to carry out this subpart. 
106 STAT. 684 
PUBLIC LAW 102-325—JULY 23, 1992 
Establishment. 
20 use 1105. 
20 use 1105a. 
20 use 1105b. 
<<Subpart 2--Christa McAuliffe Fellowship 
Program 
'^EC. 631. DECLARATION OF PURPOSE; DESIGNATION. 
"(a) PURPOSE.—It is the purpose of this subpart to establish 
a national fellowship program for experienced and outstanding 
teachers. 
"(b) DESIGNATION.—^A recipient of a fellowship under this subpart 
shall be known as a 'Christa McAuliffe fellow*. 
«SEC. 632. PROGRAM AUTHORIZED. 
"(a) IN GENERAL.—^The Secretary is authorized to make grants, 
in accordance with the provisions of this subpart, to State edu-
cational agencies to enable such State educational agencies to— 
"(1) conduct Christa McAuliffe fellowship activities; and 
"(2) aw£u:d fellowships to Christa McAuliffe fellows in accord-
ance with the provisions of this subpart. 
"(b) AMOUNT OF GRANTS.—The amount awarded to each State 
educational agency pursuant to paragraph (1) of subsection (a) 
shall be an amount awarded on the basis of the school-age popu-
lation in the State compared to the school-age population in all 
States, except that the Secretary may adjust me aw£irds to ensure 
that such awards are of sufficient size to carry out the purposes 
of this subpeirt. 
"(c) STATE ACTIVITIES.—Each State educational agency receiving 
a grant pursuant to subsection (a) shall use not more than 3 
percent of such ^ant for administrative purposes. 
"(d) USE OF FUNDS FOR FELLOWSHIPS AND ADMINISTRATION.— 
Fimds appropriated for any fiscal year for fellowships to teachers 
under this subpart shall be used to award fellowships in accordance 
with the requirements of this subpart, except that not more than 
1 percent of such funds shall be used by the Secretary for purposes 
of administering this subpart, including activities aumorized under 
section 537(b). 
«SEC. 633. CHRISTA MCAULIFFE FELLOWSHIPS. 
"(a) AWARD DISTRIBUTION AND AMOUNT.— 
"(1) AWARD DISTRIBUTION.—Each State educational agency 
receiving a grant under this subpart shall use such mnds 
to award Christa McAuliffe fellowships to pubUc and private 
school teachers who have been employed as teachers for 8 
or more years to enable such teachers to engage in the activities 
described in subsection (b). 
"(2) AMOUNT.—Fellowships shall be in an amount equal to 
the annual ssdary the individual would earn in such individual's 
current place of emplojnnent for the award period. 
"(3) RATABLE REDUCTION.—^If an individual receives a fellow-
ship award for less than a school yeeir, such fellowship shall 
be ratably reduced to equal the salary forgone. 
"(4) DURATION.—No Christa McAuliffe fellow may receive 
an award for 2 consecutive years. 
"(5) REQUIREMENT.—Subject to the repa3mient provisions of 
section 536, each Christa McAuliffe fellow shall be required 
to return to a teaching position, in their place of emplojrment 
prior to receiving the fellowship award, for at least 2 years 
following such awcu*d. The Secretary is authorized, in extraor-
dinary circumstances, to waive or defer all or a portion of 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 685 
the service requirement, or allow fellows to fulfill their service 
requirement by going into a teaching position in another school 
or school distrid; within the State or in another State upon 
approval of the sending and receiving State. 
"(b) USE OF FELLOWSHIPS.—Each Christa McAuliffe fellowship 
may be used for— 
"(1) sabbaticals for study, research or academic improvement 
to— 
"(AXi) improve such teacher's knowledge base in an area 
of emertise;or 
**(ii) learn a new area of expertise; 
"(B) increase skills and professional ability; and 
"(C) enhance the ability of teachers to work with special 
education populations, including— 
"(i) gifted and talented children; 
"(ii) limited-English proficient children; 
"(iii) chUdren with disabilities; and 
"(iv) economically and educationally disadvantaged 
children; 
"(2)(A) consultation with or assistsuice to other school districts 
or private school systems; or 
"(B) development of special innovative programs; 
"(3) projects or partnerships that involve the business commu-
nity and me schools; 
"(4) programs that incorporate the use and the sharing of 
technologies to help students learn; or 
"(5) expanding or repUcating model programs of staff develop-
ment. 
'^EC. 634. SELECTION OF CHRISTA MCAULIFFE FELLOWS. 
"(a) IN GENERAL.—Christa McAuliffe fellows in each State shall 
be selected (in accordance with section 535) by a 7-member state-
wide panel appointed by the chief State school officer, or by an 
existing panel designated by the chief State school officer. The 
statewide panel shall be representative of school administrators, 
teachers, parents, and institutions of higher education. 
"(b) SPECL\L RULE.—Each State educational agency may choose 
to administer the program assisted under this subpart through 
a pre-existing panel which is experienced in administering similar 
programs. 
"SEC. 535. EVALUATION OF APPLICATIONS. 
"(a) 
SUBMISSION TO AND REVIEW BY STATEWIDE PANEL.—An 
applic£int for a Christa McAuUffe fellowship shall submit a proposal 
for a project in accordance with section 533(b), and shall incucate 
the extent to which the appHcant wishes to continue current teach-
ing duties. The applicant shall submit such a proposal to the local 
educational agency for comment prior to submission to the statewide 
panel (appointed imder section 534) for the State in which the 
project will be conducted. Each such application shall contain such 
information as such State educational agency may reasonably 
require. 
'Xb) CONSULTATION AND CONSIDERATION.— 
"(1) IN GENERAL.—In evaluating proposals, the statewide 
panel shall consult with the local educational agency, and shall 
consider— 
"(A) evaluations during emplo3maent as a teacher; 
20 u s e 1105c. 
20 u s e 1105d. 
106 STAT. 686 
PUBLIC LAW 102-325—JULY 23, 1992 
"(B) demonstrated commitment to teaching in the future; 
and 
"(C) intended activities during the award period; 
"(2) RECOMMENDATIONS.—^The statewide panel may request 
recommendations from teaching peers and the apphcanf 
s prin-
cipal and superintendent on the quality of the proposal, the 
benefit of such proposal to education, and any other criteria 
for awarding fellowships as are considered appropriate by such 
Regulations. 
statewide panel. 
"(3) SELECTION.—Selection of members of the statewide panel 
shall be made in accordance with reg^ations prescribed by 
the Secretary. 
"(c) 
PUBLIC 
ANNOUNCEMENT.—^Announcement of fellowship 
awards shall be made in a public ceremony. 
20USC1105e. 
«SEC. 636. FELLOWSHIP REPAYMENT PROVISIONS. 
"Repayment of the award shall be made to the Federal Govern-
ment in the case of fraud or gross noncomphance. 
20 u s e 1105f. 
"SEC. 537. SECRETARY'S RESPONSESIUTIES. 
"(a) GENERAL.—The Secretary shall— 
"(1) make awards to State educational agencies having 
applications approved imder section 538; and 
(2) in cooperation with the State educational agency, conduct 
activities which foster communication among and bring together 
Christa McAuliffe fellows including activities such as written 
commimications, meetings, or training sessions. 
"(b) INFORMATION DISSEMINATION.—The Secretary shall establish 
a clearinghouse or otherwise provide for the collection and dissemi-
nation of information on exemplary projects for improving education 
that were developed in accordance with section 533(b) of this part. 
The Secretary may utilize the National Difiusion Network in carry-
ing out the requirements of this section. 
20 u s e llOSg. 
'•SEC. 638. STATE APPLICATION. 
"(a) APPLICATION REQUIRED.—Each State educational agency 
desiring a grant imder this subpart shall submit an application 
to the Secretary at such time, in such manner, and containing 
such information as the Secretary may reasonably require. 
"(b) CONTENTS.—Each application submitted pursuant to sub-
section (a) shaU— 
"(1) provide assurances that Christa McAuliffe fellows will 
be released from teaching responsibiUties for up to one school 
year (if the fellow's proposal requires such release time) without 
jeopardizing the rights such members would have had without 
participating in the program assisted under this subpart; 
"(2) provide assurances that the State educational agency, 
or its designee, in cooperation with local educational agencies, 
shall maintain accurate records regarding the activities of 
Christa McAuUffe fellows within the State to ensure that such 
members are meeting all conditions of the fellowships provided 
pursuant to this subpart, and shall notify the Secretary imme-
diately upon a change in a Christa McAuliffe fellow's status 
rendering such fellow in violation of the conditions of the fellow-
ship; and 
"(3) provide assurances that the State educational agency 
has consulted with local educational agencies in designing and 
developing the Christa McAuliffe Fellowship program. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 687 
"SEC. 539. EVALUATION. 
"(a) IN GENERAL.— 
"(1) IN GENERAL.—The Secretary shall conduct, by grant or 
contract, an independent evaluation o
f
— 
"(A) Christa McAuliffe fellows; and 
"(B) the impact of the activities undertaken by the 
Christa McAunffe fellows on teachers, teacher research, 
curricula, staff development, improvement of programs and 
improvement of student achievement. 
"(2) COMPETITIVE BASIS.—^The grant or contract described 
in paragraph (1) shall be awarded on a competitive basis. 
"(b) CONTENTS.—The evaluation shall— 
"(1) include information on the nature of projects developed 
and implemented by Christa McAuHffe fellows; 
"(2) assess the measurable effects of such projects on the 
academic performance of the students served by such projects; 
"(3) assess the effect of the fellowship program assisted under 
this subpart on the postfellowship experiences of Christa 
McAuliffe fellows; 
"(4) identify the barriers to such program's effectiveness; 
"(5) assess the extent to which successml projects were dis-
seminated and adopted by other teachers and schools without 
further Federal assistance; and 
"(6) determine and explore ways to improve the cost-effective-
ness of such program. 
. "(c) EVALUATION REPORTS.—The Secretary shall submit such 
interim evaluation reports to the President and the Congress as 
may be appropriate, and shall submit a final report on or before 
Januaiy 1,1997. 
"(d) FUNDING.—^The Secretary shall reserve a total of not more 
than $1,000,000 from the amounts appropriated piu*suant to the 
authority of section 540 in fiscal years 1993 through 1997 to carry 
out this section. 
<^EC. 640. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $20,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years to carry out this subpart. 
"Subpart 3—^Teacher Corps 
20 use 1105h. 
Contracts. 
20 use 11051. 
*^EC. 541. TEACHER CORPS PROGRAM AUTHORIZED. 
"(a) GRANTS BY THE SECRETARY.—In any fiscal year in which 
the appropriations for this subpart do not equal or exceed 
$50,000,000, the Secretary is authorized, in accordance with the 
provisions of this subpart, to make grants, on a competitive basis, 
to State educational agencies to carry out Teacher Corps activities. 
"(b) STATE GRANT PROGRAM.—In any fiscal year in which the 
appropriations for this subpart equal or exceed $50,000,000, the 
Secretary is authorized, in accordance with the provisions of this 
subpart, to make grants to State educational agencies fi*om alloca-
tions under subsection (c) to carry out Teacher Corps activities. 
"(c) ALLOCATION.—Except as provided in subsection (a), each State 
educational agency shall be eligible to receive a grant under this 
subpart in each fiscal year that bears the same rano to the amount 
appropriated imder section 548 in that fiscal year as the school-
20 use 1106. 
106 STAT. 688 
PUBLIC LAW 102-325—JULY 23, 1992 
age population of the State bears to the school-age population 
of all States. 
"(d) TEACHER CORPS SCHOOL.—For the purpose of this subpart 
the term Teacher Corps school' means a public elementary or 
secondsiry school identified by the State educational agency as hav-
ing the highest levels of poverty and the lowest levels of student 
achievement based on a ranking of such elementary schools and 
secondary schools in the State according to the number of children 
living in poverty and the levels of student achievement. In carrying 
out the prece(fing sentence, the State educational agency shall 
identify and inform not more than 10 percent of such elementary 
schools and not more than 10 percent of such secondary schools 
in the State which have the highest levels of poverty and the 
lowest levels of student achievement. 
"(e) DESIGNATION.— 
"(1) SCHOLARSHIP.—^A scholarship awarded under this sub-
\ 
part shall be referred to as a Teacher Corps scholarship'. 
\ 
"(2) RECIPIENT.—^A recipient of a scholarship under this sub-
part shall be referred to as a Teacher Corps member'. 
20 use 1106a. 
"SEC. 542. USE OF FUNDS. 
"(a) SECRETARY.—^The Secretary shall use funds provided pursu-
ant to this subpart to— 
"(1) disseminate information nationally about the availability 
of scholarships imder this subpart; 
"(2) conduct activities, with the cooperation of the State and 
local educational agencies, which foster communication among, 
and bring together, members of the Teacher Corps, including 
activities such as written communications, meetings, or trsdning 
sessions; 
"(3) establish and conduct simimer preservice orientation pro-
grams for Teacher Corps members about to begin teaching; 
"(4) ensure that Teacher Corps members recognize the chal-
lenges of teaching in a Teacher Corps school; 
"(5) inform Teacher Corps members of Teacher Corps schools 
and faciUtate the hiring and placement of Teacher Corps mem-
bers at Teacher Corps schools; 
"(6) evaluate appHcations from and award grants to State 
educational agencies to enable such agencies to award Teacher 
Corps scholarships in accordance witii the provisions of this 
subpart; and 
"(7) collect scholarship repayments from individual Teacher 
Corps members, in accordance with the provisions of section 
546. 
"(b) STATE EDUCATIONAL AGENCY.—Each State educational 
agency receiving a grant under this subpart shall use such grant 
funds to— 
"(1) evaluate applications for Teacher Corps membership and 
award scholarships to Teacher Corps members; 
"(2) provide technical assistance to local educational agencies 
estabhshing and operating induction programs; 
"(3) ensure that Teacher Corps members understand the 
obUgation to repay the scholarships received under this subpart 
upon failure to comply with the conditions of the scholarship; 
eind 
"(4) ensure that Teacher Corps members are fulfilling the 
obligation to repay scholarships received \inder this subpart, 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 689 
and provide the Secretary with the names and addresses of 
Teacher Corps members who have not fulfilled such obligation. 
"(c) SPECIAL RULE.—^The Secretary may enter into contracts with 
or make grants to nonprofit educational organizations for— 
"(1) recruiting members of the Teacher Corps; 
"(2) establislung and conducting summer preservice training 
programs; and 
"(3) conducting activities that foster commimications among 
and bring together members of the Teacher Corps. 
"(d) RESERVATIONS.—Each State receiving a grant under this 
subpart may reserve— 
"(1) 5 percent of such grant fiinds to provide technical assist-
ance to local educational agencies and to pay administrative 
costs; and 
"(2) 5 percent of such grant funds to provide for induction 
and mentoring programs. 
"(e) SPECIAL RULE.—Each State educational agency receiving a 
grant under this subpsui; may enter into contracts with or award 
grants to nonprofit educational agencies to conduct the activities 
described in subsection (b). 
••SEC. 543. TEACHER CORPS. 
20 USC 1106b. 
"(a) SELECTION.—^The State educational agency shall select 
Teacher Corps members. 
"(b) CRITERIA.— 
"(1) IN GENERAL.—The State educational agency shall estab-
hsh criteria to select Teacher Corps members that are intended 
to— 
"(A) attract highly quaUfied individuals to teaching; and 
"(B) meet the needs of Teacher Corps schools in address-
ing teacher shortages. 
"(2) CRITERIA.—^The criteria described in paragraph (1) may 
include— 
"(A) in the case of students or recent graduates, outstand-
ing academic records, or in other cases, contributions which 
may be made by individuals working in other careers; 
and 
"(B) a demonstrated commitment to teaching or profes-
sional experience in substantive fields of expertise in which 
the State is experiencing or expects to experience teacher 
shortages. 
"(c) SPECIAL CONSIDERATION.—The State educational agency, in 
selecting Teacher Corps members, shall give special consideration 
to individuals who— 
"(1) intend to teach or provide related services to students 
with disabilities; 
"(2) intend to teach limited-English proficient students; 
"(3) intend to teach preschool age children; 
"(4) are fi-om disadvantaged backgrounds, including racial 
and ethnic minorities and individuals with disabilities; 
"(5) are members of populations that are underrepresented 
in the teaching profession or in the cxirricular areas in which 
such individuals are preparing to teach; 
"(6) intend to teach in the areas of science or mathematics, 
especially women and minorities who are underrepresented 
in such fields; or 
106 STAT. 690 
PUBLIC LAW 102-325—JULY 23, 1992 
"(7) intend to teach on Indian reservations or in Alaska 
Native villages named or certified pursuant to section 3(c) 
of the Alaska Native Claims Settlement Act, PubUc Law 92-
203, or in areas with high concentrations of Native Hawaiians. 
"(d) APPLICATION.—Each individual desiring to ptirticipate in the 
program assisted under this subpart shall submit an appUcation 
at such time, in such manner, and containing such information 
as the State educational agency may reasonably require. 
20 use 1106c. 
"SEC. 544. STATE APPUCATION. 
"In order to receive funds under this subpart, a State educational 
agency, in consxiltation with the Governor, shall submit an applica-
tion to the Secretary at such time, in such manner, and containing 
such information as the Secretary may reasonably require. Each 
such application shall— 
"(1) describe how the State educational agency shall select 
Teacher Corps members; 
"(2) identify Teacher Corps schools within the State, where 
Teacher Corps members shedl be assigned, provided that not 
more than 10 percent of all pubUc scnools m the State may 
be designated Teacher Corps schools; 
"(3) provide assurances that the State educational ag[ency, 
in cooperation with local educational agencies, shall assist in 
emplo3anent placement within such State for Teacher Corps 
members in Teacher Corps schools; 
"(4) provide assiirances that the State educational agency, 
in cooperation with local educational agencies, shall ensure 
that Teacher Corps members are paid at rates comparable 
to other entry level teachers in the school district where the 
Teacher Corps member is assigned; 
"(5) provide assurances that the local educational agencies 
in which the Teacher Corps members shall be placed shall 
establish or expand induction programs that assist Teacher 
Corps members in adjusting to the new school and community 
where such members shall teach, including working with a 
mentor teacher in the school bmlding where the Teacher Corps 
members are placed; and 
"(6) describe how the State educational agency shall monitor 
and report to the Secretary not less than annually on the 
operation of programs assisted under this subpart and on the 
compliance of individuals who receive Teacher Corps scholar-
ships with the provisions of this subpart. 
20 use 1106d. 
«SEC. 545. SCHOLARSHIPS. 
"(a) ELIGIBILITY.— 
"(1) IN GENERAL.—^An individual is eligible to receive Teacher 
Corps scholarships for a maximum of 3 years during enrollment 
in any of the following programs of study, or a combination 
thereof: 
"(A) a program of study leading to a baccalaureate degree; 
"(B) a 1- or 2-year postbaccalaureate program of study 
leading to a master's or specialist degree or a teaching 
certificate; or 
"(C) a 2-year program of study leading to an associate's 
degree in early childhood education or early childhood 
development, or a 1-year program of study leading to a 
child development associate credential. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 691 
"(2) SPECIAL RXJLES.—(A) An individual pursuing a program 
of study described in subparagraph (B) of paragrapn (1) is 
eligible to receive a Teacher Corps scholarship during any 
of the first 3 years that such individual is employed as a 
teacher to defray the costs of piu*suing such postbaccalaureate 
instruction. 
"(B) An individual in possession of a bachelor's degree, who 
wishes to enter teaching from another profession, is eligible 
to receive a Teacher Corps scholarship to enable such individual 
to receive the instruction necessary to enter the teaching profes-
sion, as determined by the State in which the individual wishes 
to teach. Such instruction may be provided while the individual 
is employed as a provisional teacher. 
"(b) LIMITATIONS ON AMOUNT AND DURATION.—Subject to sub-
section (d), each Teacher Corps member shall receive a $5,000 
scholarship for each academic year of postsecondary education, 
except that no individual shall receive scholarship assistance for 
more than 
3 vears 
of postsecondary 
education 
(including 
postbaccalaureate), as determined by the Secretary. 
"(c) 
CONSIDERATION OF AWARD IN OTHER PROGRAMS.—Each 
Teacher Corps scholarship awarded pursuant to this subpart shall 
be considered as student financial assistance in determining eligi-
biUty for student assistance under title IV. 
"(d) ASSISTANCE NOT TO EXCEED NEED.—Each Teacher Corps 
scholarship, when added to assistance received under title IV, if 
any, shall not exceed the cost of attendance, as defined in section 
472, at the institution the individual is attending. If the amoimt 
of the Teacher Corps scholarship and assistance received under 
title IV exceeds the cost of attendance, loans received under parts 
B, D, or E of such title shall be reduced by an amount equal 
to the amoimt by which the combined awards exceed the cost 
of attendance. 
"(e) CONTINUED ELIGIBILITY.—Each individual who receives a 
Teacher Corps scholarship shall continue to receive such scholsirship 
payments only during such periods that the State educational 
agency finds tnat such individual is— 
"(1) enrolled as a full-time student in an accredited post-
secondary institution; and 
"(2) maintaining satisfactory progress defined imder section 
484. 
"SEC. 546. SCHOLARSHIP CONDITIONS. 
20 USC 1106e. 
"(a) SCHOLARSHIP AGREEMENT.—^Each individual receiving a 
scholarship imder this subpart shall enter into a written agreement 
with the State educational agency which shall provide assurances 
that each such individual— 
"(1) shall pursue a course of study which meets State require-
ments for teacher preparation; 
"(2) has compileted at least 2 years of undergraduate edu-
cation at an institution of higher education; 
"(3) shall maintain satisfactory academic progress and partici-
pate in teaching-related activities while in undergraduate or 
post-baccalaureate programs; 
"(4) shall work as a teacher upon completion of such individ-
ual's education for 3 years in a Teacher Corps school, as identi-
fied by the State educational agency pursuant to section 541(d), 
except that Teacher Corps members may transfer to another 
106 STAT. 692 
PUBLIC LAW 102-325—JULY 23, 1992 
such school within the State or in another State upon approval 
of the State educational agency; 
"(5) in carrying out the obligation described in paragraph 
(4), shall meet the performance requirements of— 
**(A) the school in which such individucd teaches; and 
"(B) the local educational agency exercising administra-
tive control or direction of, or performing a service function 
for such school; 
"(6) shall repay all or part of a Teacher Corps scholarship 
received imder section 545(b) plus interest and, if applicable, 
reasonable collection fees, in compUance with regulations issued 
by the Secretary imder subsection (b), in the event that the 
conditions of this subsection are not compUed with, except 
as provided for in subsection (c); 
"(7) at least during the first year of employment, shall partici-
pate in an induction program which includes working with 
a mentor teacher selected by the local educational agency in 
which the Teacher Corps member is employed and who, to 
the extent practicable, is teaching in the same subject as the 
Teacher Corps member; and 
"(8) who is not enrolled in a program of study as set forth 
in section 545(a)(1)(C) shsdl obtain State teacher certification 
during the period of emplojonent or as soon as possible as 
State law requires. 
"(b) SCHOLARSHIP REPAYMENT.— 
"(1) IN GENERAL.—Individuals foimd by the State educational 
agency to be in noncompliance with the agreement entered 
into under subsection (a) shall be required to repay to the 
Secretary a pro rata amount of the scholarship awards received, 
plus interest at the highest rate applicable to loans imder 
part B of title IV and, where appUcable, reasonable collection 
fees, in accordance with the provisions of paragraph (3). 
"(2) EXCEPTIONS TO REPAYMENT.—An individual shall not be 
considered to be in violation of the agreement entered into 
pursuant to subsection (a) during any period in which such 
individual meets the exceptions to repayment provisions set 
forth in section 528(a)(2), 528(a)(3) or 528(b), or if the individual 
dies. 
"(3) REPAYMENT PERCENTAGES.—Each individual found by the 
Secretary to be in noncompliance with the agreement entered 
into imder subsection (a) shall be required to repay— 
"(A) 100 percent of the total amount of scholarships 
awarded imder this subpart if such individual does not 
teach pursueint to the agreement described in subsection 
(a) or teaches pursuant to such agreement for less than 
lyear; 
"(B) 67 percent of such emiount if such individual teaches 
pursuant to such agreement for at least 1 year but less 
than 2 years; and 
"(C) 34 percent of such amount if such individual teaches 
pursuant to such agreement for at least 2 years but less 
than 3 years. 
"(4) INTEREST.—If a portion of scholarship is repaid under 
this subsection in any year, the entire amount of interest on 
such portion of such scholarship which accrues for such year 
shall be repaid. 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 693 
*
*
(
5
) USE OP REPAYMENTS.—Any repayments of scholarships 
made to the Secretary pursuant to the provisions of this section 
shall be used by the Secretary to make additional grants in 
accordance with the provisions of this subpart. 
"(c) WAIVER.—^The Secretary may provide for the partial or total 
waiver or suspension of any service obUgation or repayment by 
an individual who received a Teacher Corps scholarship whenever 
compUance by such individual is impossible or would involve 
extreme hardship to such individual. 
«SEC. 647. PUBLICATION AND RECRUITMENT. 
"(a) IN GENERAL.—The Secretaiy shall— 
*
*
(
1
) pubUcize the availability of, and procedure to apply for, 
Teacher Corps scholarships, particularly among students par-
ticipating in teaching-related activities through summer teach-
ing institutes, future teacher clubs, and other teaching-related 
activities, at institutions of higher education nationwide, par-
ticularly in institutions of higher education with large minority 
enrollments, historically black colleges and universities, secona-
ary schools nationwide (especially such schools with minority 
enrollment in excess of the statewide average minority enroll-
ment), and with— 
"(A) individuals participating in programs assisted under 
subpart 4 of part A of title IV; 
"(B) individuals leaving the armed services, the Peace 
Corps, VISTA, and programs funded under the National 
and Community Service Act of 1990; 
"(C) community-based organizations working in minority 
education; and 
"(D) other agencies and entities likely to attract individ-
uals interested in entering teaching from another career; 
"(2) recruit minority students to participate in the program 
assisted imder this subpart; £ind 
"(3) recruit students with outstanding academic records to 
participate in such program. 
"(b) SPECIAL RULE.—The pubUcations required under subsection 
(a) shall describe substantive fields of expertise and geographic 
areas experiencing teacher shortages within the Nation. 
'^EC. 548. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $25,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years to carry out the provisions of this subpart. 
"PART D—INNOVATION AND RESEARCH 
"Subpart 1—National Board for Professional 
Teaching Standards 
''SEC. 661. NATIONAL BOARD FOR PROFESSIONAL TEACHING STAND-
ARDS. 
"(a) DEFINITIONS.—^For the purpose of this subpart— 
"(1) The term 'Board* means the National Board for Profes-
sional Teaching Standards. 
"(2) The term 'Committee* means the Fund for Improvement 
and Reform of Schools and Teaching Board estabUshed in sec-
Public 
information. 
Minorities. 
20 use 1106f. 
20 use 1106g. 
20 use 1107. 
106 STAT. 694 
PUBLIC LAW 102-325—JULY 23, 1992 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
tion 3231 of the Fund for the Improvement and Reform of 
Schools and Teaching Act. 
"(3) The term 'Director' means the Director of the National 
Science Foundation. 
"(b) PROGRAM AUTHORIZATION.— 
"(1) PROGRAM AUTHORIZED.—From sums appropriated pursu-
ant to the authority of subsection (k) in any fiscal year, the 
Secretary shall, in accordance with this subpart, provide finan-
cial assistance to the National Board for Professional Teaching 
St£indards, in order to pay the Federal share of the costs 
of the activities described in subsection (d). 
"(2) TERMS AND CONDITIONS.—(A) No financial assistance may 
be made available imder this subpart except upon an applica-
tion as required by subsection (e). 
"(B) No financial assistance may be made available under 
this subpart imless the Secretary determines that— 
"(i) the Board will comply with the provisions of this 
subpart; 
"(ii) the Board will use the Federal funds only for 
research and development activities in accordance with 
subsection (d) and such teacher assessment and cer-
tification procedures will be 
fi*ee 
fi*om 
racial, cultural, gen-
der or regional bias; 
"(iii) the Board— 
"(I) will widely disseminate for review and comment 
annoxmcements of specific research projects to be con-
ducted with Federal funds, including a description of 
the goals and focus of the specific project involved 
and the specific merit review procedures and evalua-
tion criteria to be used in the competitive award proc-
ess; and 
"(II) will send such announcements to the Secretary, 
the Director, the National Research Coimcil, and the 
educational research community; 
"(iv) the Secretary, pursuant to an arrangement with 
the Board, will publish the announcements described in 
clause (iii) in the Federal Register (or such other pubUca-
tion deemed appropriate by the Secretary) and in pubhca-
tions of general circulation designed to disseminate such 
annoxmcements widely to the educational research commu-
nity; 
"(v) the Board will, after offering any interested party 
an opportunity to make comment upon, and take exception 
to, the projects contained in the announcements described 
in clause (iii) for a 30-day period following pubhcation, 
and after reconsidering any project upon which comment 
is made or to which exception is taken, issue through 
the Secretary a request for proposals in the Federal Reg-
ister (or such other publication deemed appropriate by 
the Secretary) containing any revised project information; 
"(vi) the Board will make awards of Federal funds com-
petitively on the basis of merit, and, in the award process, 
the Board will select, to the extent practicable consistent 
with standards of excellence— 
"(I) a broad range of institutions associated with 
educational research and development; and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 695 
"(11) individuals who are broadly representative of 
the educational research and teaching communities 
with expertise in the specific area of research and 
development in question; 
"(vii) the Board will adopt audit practices customarily 
applied to nonprofit private organizations and will comply 
with subsection (g)(4); 
"(viii) the Board will not use Federal funds to meet 
the administrative and operating expenses of the Board; 
"(ix) the Board will submit an annual report to the Con- Reports, 
gress in accordance with the provisions of subsection (g)(1); 
and 
"(x) the Board will, upon request, disseminate to States, 
local educational agencies, or other public educational enti-
ties the results of any research or research project produced 
with funds authorized by this subpart, upon the pa3nnent 
of the cost of reproducing the appropriate material. 
"(3) AVAILABILITY OF FUNDS.—(A) Notwithstanding any other 
provision of law, funds appropriated to carry out this subpart 
shall remain available for obligation and expenditure until 
the end of the second fiscal year succeeding the fiscal year 
for which the funds were appropriated. 
"(B) No funds shall be made available to the Board after 
September 30, 1997, except as authorized by subparagraph 
(A) of this subsection. 
"(c) CONSULTATION.—^The Board shall consult at least twice 
annually with the Committee on the design and execution of its 
overall research and development strategy, including procedures 
to assure compUance with the requirements of this subpart. The 
procedures shfiJl include— 
"(1) an outline of specific research and development agenda 
and activities to be conducted with the Federal funds; and 
"(2) provisions to ensure compUance with the open com-
petition and merit review requirements of this subpart for 
proposals and projects assisted under this subpart. 
"(d) AUTHORIZED ACTIVITIES.— 
"(1) IN GENERAL.—Federal fimds received under this subpart 
may only be used for research and development activities 
directly related to the development of teacher assessment and 
certification procedures for elementary and secondary school 
teachers. 
"(2) PRIORITIES.—(A) The Board shall give priority to research 
and development activities in— 
"(i) mathematics; 
"(ii) the sciences; 
"(iii) foreign languages; and 
"(iv) Uteracy, including the abiUty to read, write and 
analyze. 
"(B) The Board shall give priority to research and develop-
ment activities for the certification of elementary and secondary 
school teachers and the need and ability of such teachers to 
teach special educational populations, including— 
(i) limited EngUsh proficient children; 
"(ii) gifted and tcilented children; 
"(iii) children with disabiUties; and 
"(iv) economically and educationally disadvantaged chil-
dren. 
106 STAT. 696 
PUBLIC LAW 102-325—JULY 23, 1992 
"(e) APPLICATION.— 
"(1) IN GENERAL.—The Board shall submit appUcations to 
the Secretary at such time and in such manner as the Secretary 
may reasonably require. Each such apphcation shall— 
"(A) describe the activities for which assistance is sought; 
and 
"(B) provide assurances that the non-Federal share of 
the cost of activities of the Board is paid from non-Federal 
sources, together with a description of the manner in which 
the Board will comply with the requirements of this sub-
paragraph. 
"(2) APPROVAL.—^The Secretary shall approve an apphcation 
unless such apphcation fails to comply with the provisions 
of this subpart. 
"(f) FEDERAL SHARE.— 
"(1) IN GENERAL.—The Secretary shall pay to the Board the 
Federal share of the costs of the activities of the Board for 
the period for which the apphcation is approved under sub-
section (e). 
"(2) AMOUNT OF FEDERAL SHARE.—The Federal share shall 
be 50 percent of the costs of the activities described in sub-
section (d). 
"(g) REPORTS AND AUDITING PROVISION.— 
"(1) NATIONAL BOARD FOR PROFESSIONAL TEACHING STAND-
ARDS REPORT.—^The Board shall submit an annual report to 
the appropriate committees of the Congress not later than 
Jime 30 of any fiscal year in which Federal funds are expended 
pursuant to this subpart. The Board shall disseminate the 
report for review and comment to the Department of Education, 
the National Science Foimdation, the National Research Coun-
cil, and the education research community. The report shall— 
"(A) include a detailed financial statement and a report 
of the audit practices described in subsection (b)(2)(B)(vii); 
"(B) include a description of the general procedures to 
assure comphance with the requirements of this subpart 
as required in subsection (d); and 
"(C) provide a comprehensive and detailed description 
of the Board's agenda, activities, and planned activities 
for the preceding and succeeding fiscal years, including— 
"(i) the Board's overall research and development 
program and activities; 
"(li) the specific research and development projects 
and activities conducted with Federal funds during 
the preceding fiscal year, including— 
"(I) a description of the goals and methodology 
of the project; 
"(II) a description and assessment of the findings 
(or status and preliminary findings if the project 
is not yet completed); 
"(III) a description of the competitive bidding 
process, the merit review procedures, and the 
evaluation criteria used to award project funds; 
and 
"(IV) a description of the Board's plans for dis-
semination of the findings described in clause (ii); 
"(iii) the specific research and development projects 
and activities planned to be conducted with Federal 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 697 
funds during the succeeding fiscal year, including the 
goals and methodologies to be used; and 
"(iv) a listing of available publications of the Board, 
including publications related to policies, standards 
and general information, research reports, and commis-
sioned papers of the Board. 
"(2) FIRST ANNUAL REPORT.—The first annual report required 
by this subsection shall include a description of the Board's 
research and development agenda for the succeeding 5-year 
period. Such first report shall include to the maximum extent 
practicable, a description of specific research and development 
projects and activities, and the goals and methodologies of 
such projects and activities. 
"(3) ADDITIONAL REPORTS.—The Secretary, the Director, and 
the National Research Council shall report to the appropriate 
committees of the Congress on the compliance of the Board 
with the requirements of this part not later than 30 days 
after the Board submits its annual report pursuant to para-
graph (1). 
"(4) AUDITING PROVISION.—The Comptroller General of the 
United States, and any of the Comptroller's authorized rep-
resentatives, shall have access, for the purpose of audit and 
examination, to any books, documents, papers, and records 
of the Bo£ird, and to any recipient of the Board, that is pertinent 
to the sums received and disbursed under this subpart. 
"(h) EVALUATION.— 
"(1) IN GENERAL.—After September 30, 1995, the Secretary 
shall reserve not more than 2 percent of the amount appro-
priated pursuant to the authority of subsection (k) to provide 
for an independent, ongoing evaluation of the research program 
of teacher assessments carried out by the Board and the fair-
ness and the accuracy of the data such evaluations produce. 
The evaluation shall include an analysis of the impact of teacher 
assessments on minority teachers. The findings of the evalua-
tion shall be submitted to the Labor and Human Resources 
Committee of the Senate and the Education and Labor Commit-
tee of the House of Representatives. 
"(2) SPECIAL RULE.—^The Secretary shall enter into a contract Ck)ntracts. 
for the performance of the evaluation described in paragraph 
(1) with a nationally recognized organization (such as the 
National Academy of Sciences or the National Academy of 
Education). 
"(i) CONSTRUCTION.—Nothing in this subpart shall be construed 
to— 
"(1) establish a preferred national curricxilum or preferred 
teaching methodology for elementary and secondary school 
instruction; 
"(2) infringe upon the rights and responsibilities of the States 
to license elementary and secondary school teachers; 
"(3) infringe upon the practice or accreditation of home school 
or private school teaching; 
"(4) provide an individual certified by the Board with a right 
of action against a State, local educational agency, or other 
pubHc educational entity for any decisions related to hiring, 
promotion, retention or dismissal; 
"(5) authorize the Board to— 
106 STAT. 698 
PUBLIC LAW 102-325—JULY 23, 1992 
Alternative 
Routes to 
Teacher 
Certification and 
Licensure Act of 
1992. 
Minorities. 
20 use 1108. 
20 use 1108a. 
20 use 1108b. 
"(A) study, create, or promulgate separate standards 
applicable to home school or private school teachers; 
(B) take any action to require home school, private 
school, or public school teachers to participate in any pro-
gram offered by the Board; or 
"(C) tsike any action that infringes in any manner on 
the right of parents to direct the education of their children; 
or 
"(6) authorize the Secretary to exercise supervision or control 
over the research program, standards, assessment practices, 
administration, or stafmig policies of the Board. 
"(j) VOLUNTARY PARTICIPATION.—Notwithstanding any other pro-
vision of this subpart, voluntary participation in certification assess-
ments by the Board shall be open to home school, private school, 
and public school teachers. 
"(k) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $20,000,000 for the period beginning October 
1, 1992, and ending September 30, 1997, to carry out the provisions 
of this subpart. 
^Subpart 2—^Alternative Routes to Teacher 
Certification and Licensure 
"SEC. 562. SHORT TITLE. 
'This subpart may be cited as the 'Alternative Routes to Teacher 
Certification and Licensure Act of 1992'. 
"SEC. 553. FINDINGS. 
"The Congress finds that— 
"(1) effective elementary and secondary schools require com-
petent teachers and strong leadership; 
"(2) school systems would benefit greatly by increasing the 
pool of qualified individuals from vmich to recruit teachers; 
"(3) many talented professionals who have demonstrated a 
high level of subject area competence outside the education 
profession may wish to pursue careers in education, but have 
not fulfilled the requirements to be certified or licensed as 
teachers; 
"(4) £dtemative routes can enable qualified individuals to 
fulfill State certification or Ucensure requirements and would 
allow school systems to utilize the expertise of such profes-
sionals and improve the pool of qualified individuals available 
to local educational agencies as teachers; and 
"(5) alternative routes to certification or Ucensure require-
ments that do not exclude qualified individuals from teaching 
solely because such individuals do not meet traditional cer-
tification or licensure requirements would allow school systems 
to take advantage of these professionals and improve the supply 
of well-qualified teachers. 
"SEC. 554. PURPOSE. 
"It is the purpose of this subpart to improve the supply of well-
qualified elementary and secondary school teachers by encouraging 
and assisting States to develop and implement programs for alter-
native routes to teacher certification or Kcensure requirements. 
Such programs shall place special emphasis on the participation 
of individuals who are members of minority groups. 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 699 
«SEC. 666. ALLOTMENTS. 
20 USC 1108c. 
"(a) ALLOTMENTS TO STATES.— 
"(1) IN GENERAL.—^From the amount appropriated to carry 
out tills subpart, the Secretary shall allot to each State the 
lesser of either the amount the State applies for under section 
556 or an amoimt that is proportional to the State's share 
of the total population of children ages five through seventeen 
in all the States (based on the most recent data available 
that is satisfactory to the Secretary). 
"(2) REALLOCATION.—If a State does not apply for its allot-
ment, or the fUll amoimt of its allotment, imder the preceding 
paragraph, the Secretary may reallocate the excess funds to 
one or more other States that demonstrate, to the satisfaction 
of the Secretary, a current need for the fimds. 
"(b) SPECIAL RULE.—Notwithstanding section 412(b) of the Gen-
eral Education Provisions Act, funds awarded under this subpart 
shall remain available for obUgation by a recipient for a period 
of two calendar years from the date of the grant. 
"SEC. 556. STATE APPLICATIONS. 
20 USC 1108d. 
"(a) IN GENERAL.—^Any State desiring to receive a grant \mder 
this subpart shaU, through the State educational agency, submit 
an application at such time, in such manner, and containing such 
information, as the Secretary may reasonably require. 
"(b) REQUIREMENTS.—Each application shall— 
"(1) describe the programs, projects, and activities to be 
undertaken; and 
"(2) contain such assurances as the Secretary considers nec-
essary, including assurances that— 
"(A) assistance provided to the State educational agency 
under this subpart will be used to supplement, and not 
to supplant, any State or local funds available for the 
development and implementation of programs to provide 
alternative routes to fulfilling teacher certification or licen-
sure requirements; 
"(B) tiie State educational agency has, in developing and 
designing the appUcation, consulted with— 
"(i) representatives of local educational agencies, 
including superintendents and school board members 
(including 
representatives 
of 
their 
professional 
organizations where apphcable); 
(ii) elementary and secondary school teachers, 
including 
representatives 
of 
their 
professional 
organizations; 
"(iii) institutions of higher education with schools 
or departments of education; 
"(iv) parents; and 
"(v) other interested organizations and individuals; 
and 
"(C) the State educational agency wiU submit to the Reports. 
Secretary, at such time as the Secretary may specify, a 
final report describing the activities carried out witii assist-
ance provided under this subpart and the results achieved. 
"(c) GEPA PROVISIONS INAPPLICABLE.—Sections 435 and 436 of 
the General Education Provisions Act, except to the extent that 
such sections relate to fiscal control and fund accoimting procedures, 
shall not apply to this subpart. 
106 STAT. 700 
PUBLIC LAW 102-325—JULY 23, 1992 
20USC1108e. 
«SEC. 5S7. USE OF FUNDS. 
"(a) USE OF FUNDS.— 
"(1) IN GENERAL.—^A State educationsd agency shall use 
assistance provided under this subpart to support programs, 
projects, or activities tiiat develop and implement new, or 
expand and improve existing, programs that enable individuals 
to move to a career in education from another occupation 
through an alternative route to teacher certification or licen-
sure. 
"(2) TYPES OP ASSISTANCE.—^A State educationed agency may 
carry out such programs, projects, or activities directly, tm-ough 
contracts, or through grants to local educational agencies, inter-
mediate educational agencies, institutions of higher education, 
or consortia of such agencies. 
**(b) USES.—Funds received imder this subpart may be used for— 
**(1) the design, development, implementation, and evaluation 
of programs that enable quahfied professionals who have dem-
onstrated a high level of subject area competence outside the 
education profession and are interested in entering the edu-
cation profession to fulfill State certification or licensure 
requirements; 
(2) the estabUshment of administrative structures necessary 
for the development and implementation of progrsmas to provide 
alternative routes to fulfilling State requirements for cer-
tification or licensure; 
"(3) training of staff, including the development of appropriate 
support programs, such as mentor programs, for teachers enter-
ing the school system through alternative routes to teacher 
certification or hcensure; 
"(4) the development of recruitment strategies; 
"(5) the development of reciprocity agreements between or 
among States for the certification or licensure of teachers; and 
"(6) other appropriate programs, projects, and activities 
designed to meet the objectives of this subpart. 
20 use 1108f. 
"SEC. 558. DEFINITION. 
"For purposes of this subpart, the term 'State' means each of 
the 50 States, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, American Samoa, the North-
em Mariana Islands, and Palau (until the Compact of Free Associa-
tion with Palau takes effect pursuant to section 101(a) of Public 
Law 99-658). 
20 u s e 1108g. 
"SEC. 559. AUTHORIZATION OF APPROPRIATIONS. 
'There are authorized to be appropriated to carry out this subpart 
$15,000,000 for fiscal year 1993. 
20 u s e 1109. 
20 u s e 1109a. 
'^Subpart 3—Class Size Demonstration Grant 
"SEC. 661. PURPOSE. 
"It is the purpose of this subpart to provide grants to local 
educational agencies to enable such agencies to determine the bene-
fits in various school settings of reducing class size on the edu-
cational performance of students and on classroom management 
and organization. 
'^EC. 562. PROGRAM AUTHORIZED. 
"(a) PROGRAM AUTHORIZED.— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 701 
**(1) IN GENERAL.—^The Secretary shall carry out a program 
of awarding grants, in accordance with the provisions of this 
subpart, to loc£d educational agencies to pay the Federal share 
of the costs of conducting demonstration projects that dem-
onstrate methods of reducing class size which mav provide 
information meaningful to other State and local educational 
agencies. 
"(2) FEDERAL SHARE.—The Federal share shall be 50 percent. 
"(b) RESERVATION.—^The Secretary may reserve not more than 
5 percent of the amount appropriated pursuant to the authoriiy 
of section 565A in each fiscal year to carry out the evaluation 
activities described in section 565. 
"(c) SELECTION CRITERIA.—The Secretary shall make grants to 
local educational agencies on the basis o
f
— 
"(1) the need and the abiHty of a local educational agency 
to reduce the class size of an elementary or secondary school 
served by such agency; 
"(2) the abihty of a local educational agency to furnish the 
non-Federal share of the costs of the demonstration project 
for which assistance is sought; 
"(3) the abiHty of a local educational agency to continue 
the project for which assistance is sought after the termination 
of Federsd financial assistance under tms subpart; and 
"(4) the degree to which a local educational agency dem-
onstrates in the appUcation submitted pursuant to section 564 
consultation in program implementation and design with par-
ents, teachers, school administrators, and local teacher 
orgmiizations, where applicable. 
"(d) PRIORITY.—In awarding grants under this subpart, the Sec- Disadvantaged, 
retary shall give priority to demonstration projects that involve Handicapped, 
at-risk students, including educationally or economicaUy dis-
advantaged students, students with disabihties, limited-English 
proficient students, and yoimg students. 
"(e) GRANTS MUST SUPPLEMENT OTHER FUNDS.—A local edu-
cational agency shall use the Federal funds received under this 
subpart to supplement and not supplant other Federal, State and 
local funds available to the local educationsd agency. 
<^EC. 563. PROGRAM REQUIREMENTS. 
20 USC 1109b. 
"(a) ANNUAL COMPETITION.—In each fiscal year, the Secretary 
shall annoimce the factors to be examined in a demonstration 
project assisted under this subpart. Such factors may include— 
"(1) the magnitude of the reduction in class size to be 
achieved; 
"(2) the level of education and the subject areas in which 
the demonstration projects shall occur; 
"(3) the form of the mstructional strategy to be demonstrated; 
and 
"(4) the duration of the project. 
"(b) 
RANDOM 
TECHNIQUES 
AND 
APPROPRIATE 
COMPARISON 
GROUPS.—^Demonstration projects assisted imder this subpart shall 
be designed to utiUze randomized techniques or appropriate com-
parison groups, where feasible. 
««EC. 664. APPUCATION. 
20 USC 1109c. 
"(a) IN GENERAL.—^In order to receive a grant under this subpart 
a local educational agency shall submit an appUcation to the Sec-
retary that is responsive to the announcement described in section 
106 STAT. 702 
PUBLIC LAW 102-325—JULY 23, 1992 
563(a), at such time, in such manner, and containing or accom-
panied by such information as the Secretary may reasonably 
require. 
"(b) DURATION.—^The Secretary shall encourage local educational 
agencies to submit applications xmder this subpart for a period 
of 3 years. 
"(c) CONTENTS.—Each application submitted pursuant to sub-
section (a) shall include— 
"(1) a description of the objectives to be attained with the 
financi£d assistance made available imder this subpeirt and 
the manner in which such financial assistance shall be used 
to reduce class size; 
"(2) a description of the steps to be taken to achieve target 
class sizes, including, where appKcable, the acquisition of addi-
tional teaching personnel and classroom space; 
"(3) a statement of the methods for the collection of data 
necessary for the evaluation of the impact of class size reduction 
programs on student achievement; 
"(4) an assurance that the local educational agency shall 
pay fi*om non-Federal sources the non-Federal share of the 
costs of the demonstration project for which assistance is 
sought; and 
"(5) such additional assursinces as the Secretary may reason-
ably require. 
"(d) SUFFICIENT SIZE AND SCOPE REQUIRED.—The Secretary shall 
only award grants under this subpart to applicants having applica-
tions which describe projects of sufficient size and scope to contrib-
ute to canying out the purposes of this subpart. 
20 use 1109d. 
"SEC. 565. EVALUATION AND DISSEMINATION. 
"(a) NATIONAL EVALUATION.—The Secretary shall conduct a 
national evaluation of the demonstration projects assisted imder 
this subpart to determine the costs incurred in achieving the reduc-
tion in class size and the effects of the reductions on outcomes, 
such as student performance in the affected subjects or grades, 
attendance, discipline, classroom organization, management, and 
teacher satisfaction and retention. 
"(b) COOPERATION.—Each local educational agency receiving a 
grant imder this subpart shall cooperate in the national evaluation 
described in subsection (a) and shall provide such information to 
the Secretary as the Secretary may reasonably require. 
"(c) REPORTS.—^The Secretary shall report to the Congress on 
the results of the evaluation conducted pursuant to subsection 
(a). 
"(d) DISSEMINATION.—The Secretary shall widely disseminate 
information about the results of the class size demonstration 
projects assisted under this subpart. 
20 use 1109e. 
"SEC. 566A. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $3,000,000 for fiscal 
year 1993, and such sums as may be necessary for each of the 
4 succeeding fiscal yecirs to carry out this subpart. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 703 
""Subpart 4—Middle School Teaching 
Demonstration Programs 
<^EC. 566. STATEMENT OF PURPOSE. 
''It is the purpose of this subpart to provide financial assistance 
to institutions of higher education which offer teacher training 
or retraining programs to develop model programs with a speciaHzed 
focus on teaching grades 6 through 9. 
<^EC. 667. DEFINITIONS. 
"As used in this subpart: 
"(1) The term 'developmentally appropriate' means a program 
that is appropriate for a child's age and all areas of an individ-
u£d child's development, including educational, phjrsical, emo-
tional, social, cognitive, and communication. 
"(2) The term 'middle school' means a school which enrolls 
students in at least two of the grades 6, 7,8, and 9. 
'^EC. 568. PROGRAM AUTHORIZED. 
"(a) IN GENERAL.—The Secretary is authorized to make grants, 
on a competitive basis, to institutions of higher education to develop 
model programs with a specialized focus on teaching grades 6 
through 9. 
"(b) SPECIAL RULE.— 
"(1) EQUITABLE DISTRIBUTION.—The Secretary shall ensure 
an equitable geographic distribution of grants awarded under 
this subpart. 
"(2) CONSIDERATION.—The Secretary shall take into consider-
ation equitable levels of funding for urban and rural areas 
in awarding grants luider this subpeirt. 
"(c) GRANT PERIOD.—Grants under this subpart may be awarded 
for a period not to exceed 3 years. 
"(d) FUNDING LIMITATION.—Grants awarded under this subpart 
may not exceed $250,000 in the first year of funding. 
•^EC. 569. APPUCATION. 
"(a) IN GENERAL.—^Each institution of higher education desiring 
a grant under this subpart shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require. 
"(b) CONTENTS.—Each appUcation submitted pursuant to sub-
section (a) shall demonstrate that— 
"(1) the applicant wiU establish and maintain a program 
of teacher training or retraining designed to offer speclEuized 
preparation for inmviduals teaching grades 6 through 9; 
"(2) the appUcant has designed a program of teacher training 
or retraining which includes— 
"(A) a study of adolescent development (including cog-
nitive, social, and emotional) with particular emphasis on 
early adolescent development; 
"(B) a study of the influence of institutions such as 
schools, families, and peer groups in the socialization of 
adolescents; 
"(C) information concerning the organization of schools 
for students in grades 6 through 9, with particular empha-
sis on developmentally appropriate school and classroom 
organization and practices; 
20 use 1110. 
20 use 1110a. 
20 use 1110b. 
20 use 1110c. 
106 STAT. 704 
PUBLIC LAW 102-325—JULY 23, 1992 
"(D) training in at least 2 subject areas and related 
instructional strate^es; 
"(E) direct experience through internships in middle 
grade schools under the guidance of teachers who dem-
onstrate exemplary classroom practices; 
"(F) strategies for the prevention and detection of high 
risk behavior, particularly drug and alcohol abuse, and 
for the enhancement of self esteem among adolescents; 
"(G) a study of effective methods eind models of present-
ing substance abuse information and education to adoles-
cent students; £ind 
"(H) methods of encouraging parental £ind commtuiity 
involvement with middle schools; and 
"(3) the program will be designed and operated with the 
active participation of classroom teachers and will include an 
in-service training component. 
20 use mod. 
"SEC. 570. REPORTS AND INFORMATION DISSEMINATION. 
"Each institution of higher education receiving a grant imder 
this subpart shall submit to the Secretsiry such reports £uid other 
information regEirding programs conducted under this subpart as 
the SecretEiry deems necessary. The Secretary shall disseminate 
such information to other institutions of higher education. State 
educational agencies, and local educational agencies. 
20 use lllOe. 
"SEC. 570A. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $5,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years to carry out the provisions of this subpart. 
**PART E—MINORITY TEACHER RECRUITMENT 
"Subpart 1—^New Teaching Careers 
20 use 1111. 
"SEC. 571. STATEMENT OF PURPOSE. 
"It is the purpose of this subpart to establish and operate new 
career programs to attract minority candidates, who are in school 
support or paraprofessional positions in shortage area schools serv-
ing disadvantaged students, to careers as certified or Ucensed teach-
ers. 
20 use lllla. 
"SEC. 572. STATE GRANT AUTHORITY; APPUCATIONS. 
"(a) AUTHORITY.— 
"(1) GRANTS BY SECRETARY.—In any fiscal year in which 
appropriations for this subpart do not equal or exceed 
$50,000,000, the Secretary is authorized, in accordance with 
this subpart, to award grants, on a competitive basis, to States 
to enable States to pay the Federal share of supporting pro-
grams that carry out the purpose of this subpart. 
"(2) STATE GRANT PROGRAM.—In any fiscal year in which 
appropriations for this subpart equal or exceed $50,000,000, 
the Secretary is authorized, in accordance with the provisions 
of this subpart, to make grants to States in accordance with 
allocations under subsection (b) to enable States to pay the 
Federal sheire of supporting progrsuns that carry out the pur-
poses of this subpart. 
"(b) ALLOCATION AMONG STATES.—Except as provided in sub-
section (a)(1), each State shall be eligible to receive a grant under 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 705 
this subpart in each fiscal year that bears as nearly as possible 
the same ratio to tiie amount appropriated under section 576C 
as the sJlocation of funds under part A of chapter 1 of title I 
of the Elementary and Secondary Education Act of 1965 in that 
State bears to the total allocation of such funds in all States, 
except that no State grant shall be less than $500,000 in any 
fiscal year. 
"(c) DURATION OF GRANT.—Each grant awarded xmder this sub-
part shall be awarded for a term of 5 years, subject to the availabil-
ity of appropriations. 
"(d) FEDERAL SHARE.—^The Federal share of each grant awarded 
under this subpart shall be 75 percent in the first year in which 
the State receives a grant, 65 percent in the second such year, 
55 percent in the third such year, 45 percent in the fourth such 
year, and 35 percent in the fifth such year. 
"(e) NON-FEDERAL SHARE.—The non-Federal share of each grant 
awarded imder this subpart may be in cash or in kind fairly 
evaluated, including planned equipment or services. 
"(f) SUBMISSION OF STATE APPLICATIONS.—In order to receive 
a grant under this subpart, a State shall submit an application 
at such time or times, in such manner, and containing such informa-
tion as the Secretary may prescribe by regulation. Such appHcation 
shall— 
"(1) contain assurances that the State will award grants 
on a competitive basis to eUgible recipients submitting applica-
tions described in section 574; 
"(2) set forth a program of activities for csirrying out the 
purposes set forth in this subpart in such detail as will enable 
the Secretary to determine the degree to which such progrsim 
will accomplish such purposes and such other policies, proce-
dures, and assurances as the Secretary may require by regula-
tion. 
"SEC. 573. AGREEMENTS. 
20 USC 1111b. 
"Each State receiving a grant under this subpart shall enter 
into an agreement with the Secretary. Each such agreement shall 
include provisions designed to ensure that— 
"(1) the State educational agency, the State higher education 
agency, or the State agency which administers subpart 4 of 
part A of title IV, relating to State student incentive grsints, 
will administer the program authorized by this subpart in 
the State; 
"(2) the State educational agency or higher education agency 
will use not more than 5 percent of the grant it receives 
for administrative expenses; 
"(3) the State educationed agency or higher education agency Records, 
will keep such records and provide such information to the 
Secretary as may be required for fiscsd audit £ind program 
evaluation, consistent with the responsibilities of the Secretary; 
and 
"(4) the State wiU establish a system for the evaluation 
of the programs assisted under this subpart. 
"SEC. 574. APPLICATION. 
20 USC 1111c. 
"(a) IN GENERAL.—^A grant vmder this subpart may be made 
only to an ehgible recipient which submits an appKcation to the 
State containing or accompanied by such information as the State 
may reasonably require. 
59-194 
O—93 
24 : QL 3 (Pt. 1) 
106 STAT. 706 
PUBLIC LAW 102-325—JULY 23, 1992 
*
*
(
b
) CONTENTS OF APPLICATION.—Each such appUcation shall— 
"(1) describe the activities and services for which assistance 
is sought; 
''(2) set forth the number of expected participants in each 
program assisted imder this subpart; 
"(3) demonstrate steps on a career ladder leading to the 
position of fully credentialed teacher, ranging from nonskilled 
entry positions, extending through intermediate subprofessional 
functions, and terminating in fall professional status as a cer-
tified teacher duly recognized by the appropriate State agency; 
"(4) contain assurances that advancement within such career 
ladders would be based on merit, but that the opportunity 
for professional growth is available to all; 
"(5) demonstrate a plan for employing permanently individ-
uals who have participated in the program at their new level 
of training, including individuals who terminate the program 
at a level below that of fully credentialed teacher; 
"(6) demonstrate a plan for bringing a sizable portion of 
the educational program and coursework to the place of the 
participant's emplo3mient; 
"(7) demonstrate a plan for providing academic credit for 
in-service training and other relevant experience as well as 
formal academic coursework; 
"(8) provide for participation of individuals who have attsiined 
various levels of education, including individuals who have 
not completed high school, with special consideration for such 
participation given to individuals already serving within the 
school system; 
''(9) provide assurances that the program assisted under this 
subpart will be available to individuals with disabilities; and 
"(10) contain such other assurances as the State may reason-
ably require. 
20USClllld. 
«SEC. 576. REQUIREMENTS. 
"(a) GENERAL REQUIREMENTS.—^An eligible recipient of a grant 
under this subpart shall require that any paraprofessional who 
receives student financial assistance imder this subpart and who 
becomes a fully certified or hcensed teacher enter into an agreement 
under which the paraprofessional shall— 
"(1) within the 10-year period after completing the post-
secondary education for which the assistance was provided, 
act as an educational professionsd or a paraprofessional in 
the local educational agency that is a consortiiun member of 
the eligible recipient providing such assistance, or, if no teach-
ing position is offered by such local educational agency, in 
a shortage area school approved by the State for a period 
of not less than one year for each full-time academic year 
or equivalent for which the assistance was received; 
"(2) provide to the State evidence of compUance with para-
graph (1); and 
"(3) repay that portion of the student financial assistance 
received under this subpart which was provided for tuition, 
plus interest and reasonable collection costs (if apphcable), 
m the event that the teacher fails to comply with the conditions 
of paragraph (1), in accordance with the regulations prescribed 
by the Secretary under section 527, except that the provisions 
of this paragraph shall not apply to anyone for whom no teach-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 707 
ing position was made available by the local educational agency 
or State, or in the circumstances provided in section 528. 
"(b) AMOUNT OF FINANCIAL ASSISTANCE.—The amount of financial 
assistance awarded under this subpart shall be reduced by the 
amoimt that the financial assistance exceeds the student's cost 
of attendance, as defined in section 472. Financial assistance 
awarded xinder this subpart shall not be reduced on the basis 
of the student's receipt of other forms of Federal student financial 
assistance but shall be taken into accoimt in determining the eligi-
bility of the student for those other forms of Federal student finan-
cial assistance. 
"SEC. 676. SPECIAL CONSIDERATION. 
"In awarding grants imder this subpart, the State shall give 
special consideration to— 
"(1) programs designed to identify, recruit, and certify— 
(A) speakers of non-Enghsh languages who have been 
trained as teachers in their home coimtry; or 
"(B) individuals already employed in a local educational 
agency; and 
"(2) eligible recipients located in shortage areas as defined 
in section 576B. 
"SEC. 576A. USE OF FUNDS. 
"Funds provided to eUgible recipients pursuant to this subpart 
may be used for— 
"(1) tuition or part or all of the costs of attendance (as 
determined imder section 472) for participants in programs 
assisted under this subpart; 
"(2) the release time of such participants; 
"(3) instructional and supportive services for such partici-
pants in such programs; and 
"(4) stipends for child care to such participants whose aca-
demic coursework takes place outside the normal workday. 
"SEC. 576B. DEFINITIONS. 
"For the purpose of this subpart— 
"(1) the term 'certified or licensed teacher' means an individ-
ual who possesses a document certifying that the individual 
has met the requirements of a State for emplo5nnent as a 
teacher in the public schools of that State (including individuals 
who have been certified as speciaUsts in preschool and early 
childhood education); 
"(2) the term 'eligible recipient* means a consortium o
f
— 
"(A) an institution of higher education, and 
"(B) one or more local educational agencies. 
"(3) the term 'paraprofessional' means an individual with 
at least a high school diploma or recognized equivalent who 
is employed in a preschool or elementary or secondary school 
under the supervision of a certified or Ucensed teacher, includ-
ing individuals employed in bilingual education, special edu-
cation, and migrant education; 
"(4) the term 'school support' means an individual who is 
employed by a local educational agency; and 
"(5) the term 'shortage area' means (A) an area the Secretary 
has designated as an area with a shortage of elementary and 
secondary school teachers, or (B) a shortage in a designated 
subject area as described in section 530A of this Act. 
20 use lllle. 
20 use llllf. 
20 use llllg. 
106 STAT. 708 
PUBLIC LAW 102-325—JULY 23, 1992 
20USCllllh. 
"SEC. 576C. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $30,000,000 for fiscal 
year 1993 and such sums as may be necessEiry for each of the 
4 succeeding fiscal years to carry out this subpart. 
''Subpart 2—^Programs to Encourage Minority 
Students to Become Teachers 
20 u s e 1112. 
«SEC. 577. STATEMENT OF PURPOSE. 
"It is the purpose of the program conducted pursuant to section 
578 to carry out activities designed to— 
"(1) improve recruitment £uid training opportunities in edu-
cation for minority individuals, including language minority 
individuals; 
"(2) increase the number of minority teachers, including lan-
guage minority teachers, in elementary and secondary schools; 
£ind 
"(3) to identify and encourage minority students in the 7th 
through the 12th grades to aspire to, and to prepare for, careers 
in elementary and secondguy school teaching. 
20 u s e 1112a. 
«SEC. 578. PARTNERSHIP GRANTS AUTHORIZED. 
"(a) AUTHORITY.—^The Secretary is authorized to make grants 
to pay the Federal share of carrying out the purposes of this 
subpart to a partnership between— 
"(1) one or more institutions of higher education which have 
a demonstrated record and special expertise in carrying out 
the purposes of this subpart; and 
"(2)(A) one or more local educational agencies; 
"(B) a State educational agency or a State higher education 
agency; or 
"(C) community-based organizations. 
"(b) FEDERAL SHARE.—The Federal share of each grant awarded 
under this section shall be 50 percent. 
"(c) NON-FEDERAL SHARE.—The non-Federal share of each grant 
awarded under this section may be in cash or kind fairly evaluated, 
including planned equipment or services. 
"(d) ADMINISTRATIVE COSTS.—^Not more than 5 percent of any 
grant awarded under this section may be used for administrative 
expenses. 
20 u s e 1112b. 
'<SEC. 579. PARTNERSHIP AGREEMENT. 
"(a) IN GENERAL.—^In order to be eUgible for a grant under section 
578, a partnership shall enter into a written partnership agreement. 
All partners shall sign the agreement. 
"(D) CONTENTS OF AGREEMENT.—^The agreement shall include— 
"(1) a listing of all participants in the partnership; 
"(2) a description of the responsibilities of each participant 
in the partner^p; and 
"(3) a listing of the resources, if any, to be contributed to 
the partnership. 
"(c) SELECTION CRITERIA.—^In making grants under section 578, 
the Secretanr shall approve applications which contain provision 
for projects designed to cany out the purposes described in section 
577 and which— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 709 
"(1) identify students who indicate an interest in entering 
the teaching profession, and provide such individuals with sup-
port programs such as— 
''(A) scholarship funds to meet expenses; 
"(B) remedial and tutoring programs; 
"(C) counseling and support services; 
"(D) academic advice and guidance in course selection 
to prepare for teacher certification; 
(E) information and advice regarding eligibility for mem-
bership in the Teacher Corps estabHshed imder subpart 
3 of part C of this title, and other financial assistance 
programs; 
"(F) teaching mentors; 
"(G) motivational activities; 
"(H) teaching skill development; 
"(I) fiiture teacher clubs; and 
"(J) instruction in test-taking skills. 
"(2) estabUsh or strengthen teacher training programs; 
"(3) estabUsh or enhance early identification/articulation part-
nership programs with secondary schools and community col-
leges; 
"(4) establish partnerships with graduate schools of education 
to foster £uid faciUtate the movement of minority students into 
post-graduate studies; 
"(5) establish programs and activities which foster and faciH-
tate the movement of students interested in pursuing teaching 
careers fi-om 2-year institutions to 4-year institutions, focusing 
particular attention on facilitating the transfer of academic 
credit; and 
"(6) improve existing assessment practices that determine 
an individual's qualifications to become a teacher. 
«SEC. 680. APPUCATION FOR TEACHER PARTNERSHIPS PROGRAM. 
20 USC 1112c. 
"(a) APPLICATION REQUIRED.—^A partnership desiring to receive 
a grant under section 578 shall submit an application to the Sec-
retary. 
"(b) CONTENTS OF APPLICATION.—The apphcation shall include— 
"(1) the written and signed partnership agreement required 
by section 579; 
"(2) set forth the individuals to be served; 
"(3) a Usting of the elementary, if applicable, and secondary 
schools of the local educational agency to be involved in the 
program assisted under this subpart; 
"(4) a description of the services and activities to be offered 
under the program assisted under this subpart; and 
"(5) such additional information and assurances as the Sec-
retary may reasonably require. 
"(c) STATE EDUCATIONAL AGENCY REVIEW.—Each application fi-om 
a partnership for a grant imder section 578 shall be forwarded 
to the appropriate State educational agency (unless the State edu-
cational agency is a member of the partnership) for review and 
comment if the State educational agency requests the opportunity 
for such a review. The State educational agency must complete 
a review of such apphcation and comment to the Secretary withhi 
30 calendar days of receipt. Failure of the State educationsd agency 
to submit comments to the Secretary shall not prejudice such 
apphcation. 
106 STAT. 710 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 1112d. 
'^EC. 680A. TEACHER PLACEMENT PROGRAM. 
"(a) GRANTS AUTHORIZED.— 
"(1) IN GENERAL.—The Secretary is authorized to make grants 
to institutions of higher education that have schools or depart-
ments of education to pay the Federal share of developing 
and carrying out programs and activities designed to— 
"(A) prepare and train students to become elementary 
and secondary school teachers; and 
"(B) to the extent practicable, place the students as teach-
ers in urban and rural pubUc or private nonprofit 
elementary or secondary schools where at least 60 percent 
of students enrolled are from minority groups. 
"(2) FEDERAL SHARE.—The Federal share of each grant 
awarded under this section shall be 50 percent. 
"(3) NON-FEDERAL SHARE.—The non-Federal share of each 
grant awarded under this section may be in cash or in kind 
fairly evaluated, including planned equipment or services. 
"(b) USE OF FUNDS.—Grants under this section may be used 
for the costs of developing and carrying out the program of teacher 
preparation, training, and placement described in subsection (a). 
"(c) APPLICATIONS.—^No grant may be made under this section 
unless an application to the Secretary is made by the institution 
of higher education at such time, in such manner, and containing 
or accompanied by such information as the Secretary may reason-
ably require. 
"(d) SPECIAL CONSIDERATION.—The Secretary is authorized, in 
making grants imder this section, to give special consideration 
to historically Black colleges and universities and to institutions 
which— 
"(1) are eligible to receive funds under part C of title X; 
and 
"(2) have enrollments of at least 50 percent minority students 
in tiieir teacher education programs. 
"(e) PERFORMANCE INCENTIVE.—In any fiscal year beginning after 
September 30, 1993, the Secretary may, based upon evaluation 
and monitoring of programs assisted under this section, increase 
the Federal share for a recipient of funds under this section for 
the succeeding fiscal year to 75 percent, if the Secretary determines 
that there is demonstrated success in the operation of the program 
assisted by such recipient. 
"(f) ADMINISTRATIVE COSTS.—^Not more than 5 percent of any 
grant awarded under this section may be used for administrative 
expenses. 
20 use 1112e. 
<<SEC. 580B. AUTHORIZATION OF APPROPRIATIONS. 
"(a) AUTHORIZATION.—There are authorized to be appropriated 
$15,000,000 for fiscal year 1993, and such sums as may be necessary 
for each of the 4 succeeding fiscal years, of which not more than 
2/3 shall be available to carry out programs under section 578 
and not less than 1/3 shall be available to carry out programs 
under section 580A. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 711 
"PART F—PROGRAMS FOR SPECIAL 
POPULATIONS 
"Subpart 1—^National Mini Corps Program 
"SEC. 581. NATIONAL MINI CORPS. 
20 USC 1113. 
"(a) PROGRAM AUTHORIZED.—^The Secretary is authorized to make 
grants to institutions of higher education to enable such institutions 
to estabUsh partnerships with local educational agencies to carry 
out the purposes of the National Mini Corps Program. 
"(b) DEFINITIONS.—As used in this subpart— 
"(1) the term 'children' means children who are ehgible to 
receive services under part A or subpart 1 of part D of chapter 
1 of title I of the Elementary and Secondary Education Act 
of 1965; and 
"(2) the term 'individual' (A) has the same meaning as the 
terms 'first generation college student' and low income individ-
ual' as defmed under section 402A(g)(2) of this Act, or (B) 
means a student enrolled in an institution of higher education 
who is the child of current or former migratory workers (includ-
ing migratory agricultureil dairy workers) or of migratory fisher-
men. 
"(c) PURPOSE OF THE PROGRAM.—It is the purpose of the National 
Mini Corps Program to— 
"(1) provide individuals who are enrolled or plan to enroll 
in an institution of higher education with advisement, training, 
and instructional services, and to encourage individuals to be 
role models for children; 
"(2) provide outreach and recruitment services to encourage 
individuals to enroll in teacher education programs; 
"(3) provide support and instructional services to individuals 
who £ire enrolled in an institution of higher education to enable 
such individuals to provide direct instructional services, which 
are coordinated with the overall educational goals of the State 
or local educational agency, to children eligible to receive serv-
ices under chapter 1 of title I of the Elementary and Secondary 
Education Act of 1965 during the regulcir school year or summer 
term. Such support and services may include— 
"(A) lessons and provision of materials that meet the 
academic needs of children in the classroom; 
"(B) supplemental instruction to reinforce the basic skills 
and concepts provided through instruction by the teacher; 
"(C) instruction in other subject areas; 
"(D) academic assistance, home visits, parental involve-
ment, parent-student advisement services, and family 
advocacy; and 
"(E) stipends for individuals who participate in the pro-
gram assisted under this subpart for at least 10 but not 
more than 15 hours per week; 
"(4) designate college coordinators at participating institu-
tions of higher education to train, supervise, and assign individ-
uals to carry out the activities of ttiis subpart in cooperation 
with State and local educational agencies in which children 
with special needs have been identified; and 
106 STAT. 712 
PUBLIC LAW 102-325—JULY 23, 1992 
"(5) support other appropriate activities related to encourag-
ing individuals to enter the teaching profession and to provide 
a link to the community. 
"(d) APPLICATION REQUIRED.—Institutions of higher education 
desiring to receive a grant under this subpart shall submit an 
application to the Secretary which shall include— 
"(1) a written psirtnership agreement with the State and 
local educational agency in which the children have been identi-
fied for participation in the activities under this subpart; 
"(2) a description of the strategies that will be employed 
to engage the commimiiy generally in the activities and pro-
grams supported by the programs under this subpart; 
"(3) a description of the process by which individuals will 
be recruited and selected to participate in the programs assisted 
imder tMs subpart; 
"(4) a description of the programs and activities which will 
be supported by the programs under this subpart; and 
"(5) such other information as the Secretary considers nec-
essary to determine the nature of the locsd needs, the quality 
of the proposed Mini Corps Program, and the capability of 
the applicant to implement the proposed Mini Coips Program. 
"(e) AWARDING OF GRANTS.—^In awarding grants under this sub-
part, the Secretary shall ensure, to the extent practicable, that— 
"(1) grants are eq^uitably distributed on a geographic basis 
throughout the Nation and among a variety of communities; 
"(2) the amount of the grant awarded is proportionate to 
the number of individuals and children who, on the basis of 
the grant application, are expected to be involved in the pro-
grams and activities supported by the National Mini Corps; 
and 
"(3) not less than 30 percent of the grants awarded under 
this subpart are awarded for programs serving migrant stu-
dents and children. 
"(f) USES OF FUNDS.—Funds provided under this part may be 
used for pleinning, implementing and operating a National Mini 
Corps Program, except that not more than 5 percent of any grant 
received imder this subpart may be used for administrative costs. 
Repo"^- 
"(g) EVALUATION.—The Secretary shall, by January 1,1996, evalu-
ate the demonstration program assisted under this part and report 
the results of such evaluation to the appropriate committees of 
the Congress. 
"(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this subpart $10,000,000 for fisceil 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years. 
^Subpart 2—^Foreign Language Instruction 
20 use 1114. 
«SEC. 686. DEMONSTRATION GRANTS FOR CRITICAL LANGUAGE AND 
AREA STUDIES. 
"(a) PROGRAM AUTHORITY.—^The Secretary is authorized to make 
demonstration grants to eligible consortia to enable such eligible 
consortia to— 
"(1) operate critical language and area studies programs; 
"(2) develop and acquire educational equipment and mate-
rials; and 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 713 
"(3) develop teacher training programs, texts, curriculum, 
and other activities designed to improve and expand the instruc-
tion of foreign languages at elementary and secondary schools 
across the Nation. 
"(b) GRANT LIMITATION.—^The Secretary shall not award a grant 
which exceeds $2,000,000 to an eligible consortium under this sec-
tion in any fiscal year, but shall award grants of sufficient size, 
scope and quaUty for a program of comprehensive instruction of 
foreign languages. 
"(c) SPECIAL RULES.— 
"(1) PRIORITY.—In awarding grants xmder this section, the 
Secretary shall give priority to eligible consortia with dem-
onstrated, proven effectiveness in the field of critical language 
and area studies and which have been in existence for at 
least 1 year prior to applying for a grant under this section. 
"(2) EQUITABLE DISTRIBUTION.—In awarding grants imder 
this section, the Secretary shall take into consideration provid-
ing an equitable geographic distribution of such grants among 
the regions of the United States. 
"(3) 
PROGRAM 
REQUIREMENT.—Each 
eligible 
consortium 
receiving a grant under this section shall include in the activi-
ties assisted pursuant to such grant, a study abroad or cultured 
exchange program. 
"(d) ELIGIBLE CONSORTIUM.— 
"(1) IN GENERAL.—For the purposes of this section, the term 
'eligible consortium' means a cooperative effort between entities 
in one or more States that must include at least 4 schools, 
of which— 
"(A) one shall be an institution of higher education; 
"(B) one shall be a secondary school with experience 
in teaching critical languages; 
"(C) one shall be a secondary school with experience 
in teaching critical languages and in which at least 25 
percent of the students are eligible to be counted under 
chapter 1 of title I of the Elementary and Secondary Edu-
cation Act of 1965; and 
"(D) one shall be a secondary school in which at least 
25 percent of the students are eUgible to be counted under 
chapter 1 of title I of the Elementary and Secondary Edu-
cation Act of 1965. 
"(2) NONPROFIT ORGANIZATIONS.—Each eUgible consortium 
described in paragraph (1) may include a nonprofit organization 
to provide services not otherwise available firom the entities 
described in paragraph (1). 
"(e) ADMINISTRATION.—Each eUgible consortixmi receiving a grant 
imder this section may use not more than 10 percent of such 
grant for administrative expenses. 
"(f) APPLICATION.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), each 
eligible consortium desiring a grant under this section shall 
submit an application to the Secretary at such time, in such 
manner and accompanied by such information as tibe Secretary 
may reasonably require. 
"(2) SPECIAL RULE.—The State educational agency or State 
higher education agency responsible for the supervision of any 
one school participating in an eligible consortium may submit 
106 STAT. 714 
PUBLIC LAW 102-325—JULY 23, 1992 
the application described in paragraph (1) on behalf of such 
eUgible consortium. 
"(g) DEFINITIONS.—^For purposes of this section, the term 'critical 
language' means each of the languages contained in the list of 
critical foreign languages designated by the Secretary pursuant 
to section 212(d) of the Education for Economic Security Act (50 
Fed. Reg. 149, 31413). 
"(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $15,000,000 for fiscal year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years 
to carry out the provisions of this section. 
20 use 1114a. 
"SEC. 587. DEVELOPMENT OF FOREIGN LANGUAGE AND CULTURE 
INSTRUCTIONAL MATERIALS. 
"(a) GRANTS AUTHORIZED.—The Secretary is authorized to provide 
one or more grants on a competitive basis to a State or local 
educational agency, an institution of higher education, a private 
nonprofit foreign language organization, a nonprofit education 
association, or a consortium thereof, to enable such entity to act 
as a resource center for— 
"(1) coordinating the development of and disseminating for-
eign language and culture instructional material, including chil-
dren's literature in foreign languages, videotapes and computer 
software, and teacher's instnictional kits relating to inter-
nationsd study; and 
"(2) encouraging the expanded use of technology in teaching 
foreign languages and cidture at the elementary school level 
and, when the needs of elementary schools have been met, 
at tiie secondary school level, with a psuticidar emphasis on 
expanding the use of technology in teaching foreign languages 
and culture at elementary and secondary schools that have 
proportionally fewer resources available for teaching foreign 
languages £md cultures, including schools in urban and rural 
areas. 
"(b) COORDINATION.—In developing materials £uid technologies 
under this section, the Secretary shall, where appropriate, make 
use of materials and technologies developed under the Star Schools 
Program Assistance Act. 
"(c) AUTHORIZATION OF APPROPRIATION.—There are authorized 
to be appropriated $4,000,000 for fiscal year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years 
to carry out the provisions of this section. 
^Subpart 3—Small State Teaching Initiative 
20 use 1115. 
«SEC. 691. MODEL PROGRAMS AND EDUCATIONAL EXCELLENCE. 
"(a) PURPOSE.—It is the purpose of this section to provide suffi-
cient fimds to small States to enable such States to develop model 
programs for educational excellence, teacher training and edu-
cational reform. 
"(b) PROGRAM AUTHORIZED.— 
"(1) AUTHORITY.—^The Secretary is authorized to make grants 
to small States in order to enable such States to make grants 
to ehgible institutions for the purpose of enhancing and improv-
ing the quality of teacher education, training, and recruitment 
in the Nation's smallest States. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 715 
"(2) EQUITABLE DISTRIBUTION.—The Secretary shall award 
grants described in paragraph (1) in equal amounts among 
small States having applications approved under subsection 
(e). 
"(c) INSTITUTIONAL USE OF FUNDS.—Eligible institutions receiving 
funds under this section may use such funds for the development 
of innovative teaching techniques and materials, preservice and 
inservice training programs, renovation of training facilities and 
construction of model classrooms. 
"(d) DEFINITIONS.— 
"(1) SMALL STATE.—^For the purposes of this section the term 
'small State' means a State the total population of which is 
less than 1,108,500 as reported in the 1990 Census of Popu-
lation and Housing. 
"(2) ELIGIBLE INSTITUTION.—^For the purposes of this section, 
the term 'eligible institution' means any institution of higher 
education (as such term is defined in section 1201(a)) that 
is located in a small State and that provides a course of study 
which prepares an individual to become a classroom teacher. 
"(e) APPLICATION.—^Any ehgible institution which desires to 
receive a grant under this section shall submit to the State an 
appHcation which— 
"(1) if the State educational agency is not administering 
the program assisted under this subpart, certifies that the 
State educational agency has participated in the development 
of the apphcation; 
"(2) provides for a process of active discussion and con-
sultation with an advisory committee convened by the State 
educational agency and the ehgible institution; and 
"(3) describes how the institution will use the funding. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—For the piuTJoses of this 
part there are authorized to be appropriated $5,000,000 for fiscal 
year 1993 and such siuns as may be necessary in each of the 
4 succeeding fiscal years. 
"Subpart 4—^Faculty Development Grants 
''SEC. 593. TRAINING GRANTS. 
20 USC 1116. 
"(a) GRANTS AUTHORIZED.—The Secretary is authorized to award 
grants to institutions of higher education to enable such institutions 
to— 
"(1) develop model programs that provide training to second-
ary school faculty to prepare students with disabihties for post-
secondary educational opportimities; and 
"(2) establish programs of faculty development for faculty 
who teach in an institution of higher education to prepare 
such faculty for the enrollment of students with disabilities 
at such institution. 
"(b) USE OF GRANTS.—^The grants described in subsection (a) 
may be used to— 
"(1) provide scholarships, including stipends and allowances, 
to faculty described in paragraph (1) or (2) of subsection (a); 
"(2) develop materials and inservice programs to assist such 
faculty in making the curriculum at an institution of higher 
education accessible to students with disabiUties; and 
106 STAT. 716 
PUBLIC LAW 102-325—JULY 23, 1992 
"(3) provide funds to support the release of such faculty 
from teaching assignments for the purpose of educating such 
faculty regarcdng the needs of students with disabiUties. 
"(c) SPECIAL RULES.—^The Secretary shedl ensure that grants 
awarded under subsection (a)(1) are used for programs that are 
in compliance with State and professionally recognized standards 
for the training of special education personnel. 
"(d) APPLICATION.—Each institution of higher education desiring 
a grant under this section shall submit an application to the Sec-
retary at such time, in such manner and accompanied by such 
information as the Secretary may reasonably require. 
"(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this subpart $5,000,000 for fiscal 
year 1993 smd such sums as may be necessary for each of the 
4 succeeding fiscal years. 
""Subpart 5—Early Childhood Education Training 
20 use 1117. 
«SEC. 596. TRAINING IN EARLY CHILDHOOD EDUCATION AND 
VIOLENCE COUNSELING. 
"(a) PROGRAM AUTHORIZED.—The Secretary shall award grants 
to institutions of higher education to enable such institutions to 
establish innovative programs to recruit and train students for 
careers in— 
"(1) early childhood development and care, or preschool pro-
grams; or 
"(2) providing counseling to yoimg children from birth to 
6 years of age who have been affected by violence and to 
adults who work with such young children. 
"(b) APPLICATION.—^An institution of higher education desiring 
a gr£int pursuant to subsection (a) shall submit an appUcation 
to the Secretary at such time, in such form and containing or 
accompanied by such information or assurances as the Secretary 
may require. Each such api)lication shall— 
"(1) describe the activities and services for which assistance 
is sought; 
"(2) contain a plan in accordance with subsection (c); 
"(3) demonstrate that such institution has the capacity to 
implement such plan; and 
"(4) provide assurances that such plan was developed in 
consultation with agencies and organizations that will assist 
the institution in carrying out such plan. 
"(c) I*LAN.—Each application described in subsection (a) shall 
contcdn a comprehensive plan for the recruitment, retention and 
tr£iining of students seeking careers in esirly childhood development 
or violence counseling. Such plan shall include a description o
f
— 
"(1) specific strategies for reaching students at secondary 
schools, community colleges, imdergraduate institutions, or 
other agencies and institutions from which such students are 
to be drawn for participation in the program, including any 
partnerships with such institutions; 
"(2) specific strategies for retaining such students in the 
program, such as summer sessions, internships, mentoring, 
and other activities; 
"(3) methods that will be used to ensure that students trained 
pursuant to the plan will find emplo3rment in early childhood 
education, development and care, or violence counseling; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 717 
"(4) the goals, objectives, and timelines to be used in assessing 
the success of the plan and of the activities assisted under 
this section; 
"(5) the curriculum and training leading to the degree or 
credential that prepares students for the careers described in 
the plan; 
"(6) the special plans, if any, to assure that students trained 
pursuant to the plan will be prepared for serving in economi-
cally disadvantaged areas; and 
"(7) sources of financial aid, to ensure that the training 
program offered pursuant to tiiis section is available to all 
giimifled students. 
SELECTION AND PRIORITIES.—In evaluating the appUcations Handicapped, 
submitted under this section, the Secretary shall prescrioe criteria 
regarding such evaluation and shall give priority in granting funds 
to institutions that— 
"(1) prepare students for work in economic£illy disadvantaged 
Eureas; 
"(2) plan to focus their recruitment, retention, and tr£dning 
efforts on disadv£mtaged students; and 
"(3) have demonstrated effectiveness in providing the type 
of training for which the institution seeks assistance under 
this section. 
"(e) DURATION AND AMOUNT.— 
"(1) DURATION.—^A grant imder this section shall be awarded 
for a period of not less than 3 years nor more than 5 years. 
"(2) AMOUNT.—^The total amount of the grant awarded under 
this section to any institution of higher education for any 1 
year shall not be less than $500,000 nor more than $1,000,000. 
'*SEC. 697. EARLY CHILDHOOD STAFF TRAINING AND PROFESSIONAL 
ENHANCEMENT. 
"(a) PROGRAM AUTHORIZED.— 
"(1) IN GENERAL.—^The Secretary shall award grants, on a 
competitive basis, to States in accordance with the provisions 
of this section. 
"(2) DURATION.—Grants imder this section shall be awarded 
for a period of 5 years. 
"(b) APPLICATION.—^A State desiring a grant pursuant to this 
section shall submit an application to the Secretary at such time, 
in such form and containing or accompanied by such information 
or assurances as the Secretary may require. 
"(c) LEAD AGENCY.— 
"(1) DESIGNATION OF LEAD AGENCY.—Tne chief executive offi-
cer of a State, in consiiltation with the State educational agency, 
desiring to receive a grant shall designate an appropriate State 
agency to act as the lead agency to— 
"(A) administer funds received under this section; 
"(B) develop a State plan pursuant to subsection (e); 
and 
"(C) coordinate the provision of services with other appro-
priate Federal, State, and local programs. 
"(2) ADVISORY COMMITTEE.—The lead agency shall estabUsh 
£in advisory committee, described in subsection (d), to assist 
in developing the plan required imder subsection (e). 
"(d) ADVISORY COMMITTEE.—Each advisory committee estabUshed 
pursuant to subsection (c)(2) shall consist of a representative of 
20 use 1117a. 
106 STAT. 718 
PUBLIC LAW 102-325—JULY 23, 1992 
the following agencies, institutions, organizations, divisions, pro-
grams or departments in the State to the extent such entities 
exist within such State: 
"(1) The lead State agency responsible for administering 
funds received under the Child Care Development and Block 
Grant Act. 
"(2) Other State agencies administering or regulating 
childcare, early childhood development or education programs. 
"(3) Institutions of higher education. 
"(4) Organizations representing early childhood development 
staff and parents. 
"(5) A local child care resource and referral agency or an 
organization representing local child care resource and referral. 
''(6) A State Head Start association. 
"(7) An organization with significant experience in training 
in the fields of early childhood development, early care and 
early education. 
"(8) State agencies or departments administering or regulat-
ing employment, job training, and commimity development pro-
grams. 
"(e) STATE PLAN.— 
"(1) IN GENERAL.—Each State desiring a grant under this 
section shall submit, through the lead agency, a plan to the 
Secretary at such time, in such manner and accompanied by 
such information as the Secretary may reasonably require. 
The Secretary shall consult with the Secretary of Health and 
Himian Services regarding the contents of such plan. 
"(2) CONTENTS.—Each plan submitted piirsuant to subsection 
(a) shall— 
"(A) identify the lead agency as described in subsection 
(c); 
"(B) assess the training offerings and content of such 
offerings, amount of training required for an early child-
hood development staff license or certificate, compensation, 
recruitment and turnover of staff, and any coordination 
of training offerings and professional growth of early child-
hood development staff in the State; 
"(C) describe the goals of the activities assisted under 
this part; and 
"(D) describe how the State shall— 
"(i) identify and maintain a career development path, 
based on a progression of roles for early chilcUiood 
development staff, with each role articulated with 
training and different levels of responsibiUty and sug-
gested compensation, in such manner as will permit 
an individu£d to qualify for a more responsible role; 
"(ii) ensure that trsdners of early childhood develop-
ment staff in the State are qualified, licensed or cer-
tified in accordance with State law; 
"(iii) describe the ways in which the State will 
encourage the coordination of training programs among 
institutions of higher education, including, if prac-
ticable, transfer of credits among institutions; 
"(iv) set forth the ways in which the State will pay 
the costs of any assessment, credentialing, certification, 
Hcensing, trsdning offering, training inventory, increase 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 719 
in staff participation in training, or other services 
assisted by a grant under this section; 
"(v) describe the ways in which the State plans to 
coordinate the various State and local agencies and 
organizations to maximize coordination of standards 
and requirements for certifications, licenses, and 
accreditations; 
"(vi) describe the ways in which the State will com-
pile and disseminate information on— 
"(I) tr£dning offerings; 
"(II) requirements for admission into courses and 
programs; 
"(III) requirements for a Hcense, certificate, cre-
dential, or degree to which such offerings may 
be applied; 
"(IV) funding sources available for such activi-
ties; and 
"(V) the cost of training offerings; and 
"(vii) describe the ways in which the State will use 
the funds received under this section and any other 
funds available to the State to carry out the activities 
described in the State plan. 
"SEC. 598. REPORT. 
20 USC 1117b. 
"Each institution of higher education or State receiving a grant 
under this subpart shall submit to the Secretary program reports 
and evaluations at such times and containing such information 
as the Secretary may require. 
"SEC. 599. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1117c. 
"(a) TRAINING IN EARLY CHILDHOOD EDUCATION AND VIOLENCE 
COUNSELING.—^To carry out activities described in section 596, there 
are authorized to be appropriated $20,000,000 for fiscal year 1993 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years. 
"(b) 
EARLY CHILDHOOD STAFF TRAINING AND PROFESSIONAL 
ENHANCEMENT.-^TO carry out activities described in section 597, 
there are authorized to be appropriated $10,000,000 for fiscal year 
1993 and such sums as may be necessary for each of the 4 succeed-
ing fiscal years.". 
(b) EXPIRATION DATE.—Effective July 1, 1995, the Alternative 
Routes to Teacher and Principal CertMcation and Licensure Act 
of 1992 (as contained in subpart 2 of part D of title V of this 20 use 1108. 
Act) is repealed. 
TITLE VI—INTERNATIONAL EDUCATION 
PROGRAMS 
SEC. 601. REVISION OF TITLE VI. 
Title VI of the Act (20 U.S.C. 1121 et seq.) is amended to read 
as foUows: 
106 STAT. 720 
PUBLIC LAW 102-325—JULY 23, 1992 
"TITLE VI—INTERNATIONAL 
EDUCATION PROGRAMS 
"PART A—INTERNATIONAL AND FOREIGN 
LANGUAGE STUDIES 
20 u s e 1121. 
«SEC. 601. FINDINGS AND PURPOSES. 
"(a) FINDINGS.—The Congress finds that— 
"(1) the well-bein^ of the United States, its economy and 
long-range security, is dependent on the education and training 
of Americ£ins in international and foreign language studies 
and on a strong research base in these areas; 
"(2) knowledge of other countries and the abihty to commu-
nicate in other Isinguages is essential to the promotion of 
mutual imderstanding and cooperation among nations; and 
"(3) present and future generations of Americans must be 
afforded tiie opportunity to develop to the fullest extent possible 
their intellectual capacities in all areas of knowledge. 
"(b) PURPOSES.—It is the purpose of this part to assist in the 
development of knowledge, international study, resources £ind 
trained personnel, to stimulate the attainment of foreign language 
acquisition and fluency, to develop a pool of international experts 
to meet national needs, and to coordinate the programs of the 
Federal Government in the areas of foreign language, area and 
other international studies, including professional intemationsil 
affairs education, and research. 
20 u s e 1122. 
«SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA 
CENTERS. 
"(a) NATIONAL LANGUAGE AND AREA CENTERS AUTHORIZED.— 
"(1) GENERAL AUTHORITY.—The Secretary is authorized— 
"(A) to make grants to institutions of higher education, 
or combinations thereof, for the purpose of establishing, 
strengthening, and operating comprehensive language and 
area centers and programs; and 
"(B) to make grants to such institutions or combinations 
for the purpose of estabUshing, strengthening, and operat-
ing a diverse network of luidergraduate language and area 
centers and programs, 
which will be national resources for teaching of any modem 
foreign language, for instruction in fields needed to provide 
fill! understanding of areas, regions, or countries in which 
such language is commonly used, for research and training 
in international studies, and the international and foreign lan-
guage aspects of professional and other fields of study, and 
for instruction and research on issues in world affairs which 
concern one or more coimtries. 
"(2) AUTHORIZED AGTIVITIES.—^Any such grant may be used 
to pay all or psirt of the cost of estabhshing or operating 
a center or progrsim, including the cost o
f
— 
"(A) faculty, staff, and student travel in foreign areas, 
regions, or coimtries; 
(B) teaching and research materials; 
"(C) curriculum planning and development; 
"(D) bringing visiting scholars and faculty to the center 
to teach or to conduct research; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 721 
"(E) establishing and maintaining linkages with overseas 
institutions of higher education and other organizations 
that may contribute to the educational objectives of this 
section for the purpose of contributing to the teaching 
and research of the center or program; and 
"(F) training and improvement of the staff, for the pur-
pose of, and subject to such conditions as the Secretary 
nnds necessary, for carrying out the objectives of this sec-
tion. 
/ ^ 
"(3) GRANTS TO MAINTAIN LIBRARY COLLECTIONS.—The Sec- 
x 
retaiy may make grants to centers described in paragraph 
(1)(A) having important library collections for the maintenance 
of such collections. 
"(4) OUTREACH GRANTS AND SUMMER INSTITUTES.—The Sec-
retary may make additional grants to centers described in 
paragraph (1)(A) for any one or combination of the following 
purposes: 
"(A) Programs of linkage or outreach between foreign 
language, area studies, and other intemation£d fields and 
professionEd schools and colleges. 
"(B) Programs of linkage or outreach with 2 and 4-year 
colleges and universities. 
"(C) Progrsuns of Unkage or outreach with departments 
or agencies of Federal and State Governments. 
"(D) Programs of linkage or outreach with the news 
media, business, professional, or trade associations. 
"(E) Summer institutes in foreign area and other inter-
national fields designed to ceirry out the programs of link-
age £ind outreach in subparagraphs (A), (B), (C), and (D) 
of this paragraph. 
"(b) STIPENDS FOR FOREIGN LANGUAGE AND AREA STUDIES.— 
"(1) GRADUATE STIPENDS.—(A) The Secretary is authorized 
to make grants to institutions of higher education or com-
binations of such institutions for the purpose of paying stipends 
to individuals undergoing advanced traming in any center or 
progreun approved by the Secretary under this part. 
"(B) Students receiving stipends described in subparagraph 
(A) shall be individuals who are engaged in an instructional 
program with stated performance goals for functional foreign 
language use or in a program developing such performance 
goals, in combination with area studies, international studies, 
or the international aspects of a professioned studies program. 
"(C) Stipends awarded to graduate level recipients may 
include allowances for dependents and for travel for research 
and study in the United States and abroad. 
"(2) DOCTORAL STIPENDS.—(A) The Secretary is authorized 
to make grants to institutions of higher education or com-
binations of such institutions for the purpose of pa5dng stipends 
to students beginning with their third year of graduate training 
in any center or program approved by the Secreteiry under 
thispart. 
"(B) Students receiving stipends described in subparagraph 
(A) shall be individuals engaged in completing advanced degree 
requirements in foreign language, foreign area studies, or other 
international fields. 
"(C) Stipends shall be for the purpose of completing degree 
requirements, such as the predissertation level studies, 
106 STAT. 722 
PUBLIC LAW 102-325—JULY 23, 1992 
preparation for dissertation research including the study of 
less commonly taught languages, dissertation research abroad, 
and dissertation writing. 
"(D) Students may receive stipends described in subpara-
graph (A) for a maximum of 4 years if such students make 
satisfactory progress toward completion of a degree program. 
"(3) FUNDING LIMITATIONS.—The Secretary is not authorized 
to make awards under paragraph (2) for any fiscal year unless 
the £imount made available under paragrapn (1) for such fiscal 
year equals or exceeds the current services equivalent of the 
level of funding during fiscal year 1992 under paragraph (1). 
"(c) SPECIAL RULE WITH RESPECT TO TRAVEL.—NO funds may 
be expended imder this part for undergraduate travel except in 
accordance with rules prescribed by the Secretary setting forth 
policies and procedures to assure that Federal funds made available 
for such travel are expended as part of a formal program of super-
vised study. 
20 use 1123. 
"SEC. 603. LANGUAGE RESOURCE CENTERS. 
"(a) LANGUAGE RESOURCES CENTERS AUTHORIZED.—The Secretary 
is authorized to make grants to and enter into contracts with 
institutions of higher education, or combinations of such institu-
tions, for the purpose of establishing, strengthening, and operating 
a small number of national language resource and training centers, 
which shall serve as resources to improve the capacity to teach 
and learn foreign languages effectively. Activities carried out by 
such centers may include— 
"(1) the conduct of research on new and improved teaching 
methods, including the use of advanced educational technology; 
"(2) the development of new teaching materials reflecting 
the use of such research in effective teaching strategies; 
"(3) the development and application of performance testing 
appropriate to an education^ setting for use as a standard 
and comparable measurement of skill levels in all languages; 
"(4) the training of teachers in the administration and 
interpretation of performance tests, the use of effective teaching 
strategies, and the use of new technologies; 
"(5) the publication of instructional materials in the less 
commonly taught languages; and 
"(6) the widespread dissemination of research results, teach-
ing materials, and improved pedagogical strategies to others 
within the postsecondeiry education community. 
"(b) CONDITIONS FOR GRANTS.—Grants imder this section shall 
be made on such conditions as the Secretary determines to be 
necessary to carry out the provisions of this section. 
20 u s e 1124. 
"SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN 
LANGUAGE PROGRAMS. 
"(a) INCENTIVES FOR THE CREATION OF UNDERGRADUATE INTER-
NATIONAL STUDIES AND FOREIGN LANGUAGE PROGRAMS.— 
"(1) AUTHORITY.—^The Secretary is authorized to make grants 
to institutions of higher education or combinations of such 
institutions to assist such institutions or combinations in plan-
ning, developing, and canying out a program to improve under-
graduate instruction in international studies and foreign lan-
guages. Such grants shall be awarded to institutions of higher 
education or combinations of such institutions seeking to create 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 723 
new programs or curricula in area studies, foreign languages, 
and other international fields. 
"(2) FEDERAL SHARE AND USE OF FUNDS.—Grants made under 
this section may be used to pay not more than 50 percent 
of the cost of projects and activities which are an integral 
part of such a program, such as— 
"(A) planning for the development and expansion of 
undergraduate programs in international studies; 
"(B) teaching, research, curriculum development, and 
other related activities; 
"(C) training of faculty members in foreign countries; 
"(D) expansion of foreign language courses; 
"(E) programs under which foreign teachers and scholars 
may visit institutions as visiting faculty; 
"(F) international education programs designed to 
develop or enhance linkages between two- and four-year 
institutions of higher education, or baccalaureate and post-
baccalaureate programs or institutions; 
"(G) the development of an international dimension in 
preservice and inservice teacher training; 
"(H) the development of undergraduate study abroad pro-
grams in locations abroad in which such study opportuni-
ties are not otherwise available or which serve students 
for whom such opportunities are not otherwise available 
and which provide courses that are closely related to on-
campus foreign language and international studies curric-
ula; and 
"(I) the integration of new study abroad opportunities 
for imdergraduate students into curricula of specific degree 
programs. 
"(3) NON-FEDERAL SHARE.—The non-Federal share of the cost 
of the programs assisted under this subsection may be provided 
either in cash or in kind. Such assistance may be composed 
of institutional and noninstitutional funds, including State and 
private contributions. 
"(4) PRIORITY.—In awarding grants imder this section, the 
Secretary shall give priority to applications from institutions 
of higher education or combinations of such institutions that 
require entering students to have successfully completed at 
least 2 years of secondary school foreign language instruction 
or that require each graduating student to earn 2 years of 
postsecondary credit in a foreign language (or have dem-
onstrated equivalent competence in the foreign language) or, 
in the case of a two-year degree granting institution, offer 
2 years of postsecondary credit in a foreign language. 
"(b) 
GRANTS TO STRENGTHEN PROGRAMS OF DEMONSTRATED 
EXCELLENCE IN UNDERGRADUATE INTERNATIONAL STUDIES AND FOR-
EIGN LANGUAGE PROGRAMS.— 
"(1) IN GENERAL.—The Secretary is authorized to make grants 
to institutions of higher education, combinations of such institu-
tions, or partnerships between nonprofit educational organiza-
tions and institutions of higher education to enable such institu-
tions of higher education, combinations of such institutions 
or partnerships to— 
"(A) strengthen programs of demonstrated excellence in 
area studies, foreign languages, and other international 
106 STAT. 724 
PUBLIC LAW 102-325—JULY 23, 1992 
fields in order to ensure the self-sustaining maintenance 
and growth of such programs; and 
''(B) enhance the capacity-building and dissemination 
functions of such programs. 
"(2) FEDERAL SHARE AND USE OF GRANT FUNDS.—Grants 
awarded imder this subsection may be used to pay not more 
than 50 percent of the cost of projects and activities which 
Eire an integral part of the programs described in paragraph 
(1), such as— 
"(A) teaching, research, curriculum development, and 
other related activities; 
"(B) strengthening imdergraduate msgors and minors 
directly related to the generation of international expertise; 
"(C) developing new foreign language courses, especially 
in languages previously not taught at such institution or 
combination of such institutions, and improving the quality 
of existing foreign language programs; 
"(D) expandinii Ubreuy and teaching resources; 
"(E) estabUshmg linkages overseas with institutions of 
higher education and organizations that contribute to the 
educational objectives of this subsection; 
"(F) developing programs designed to integrate profes-
sion^ and technical education with area studies, foreign 
languages, and other international fields; 
"(G) disseminating curricular materials and program 
designs to other educational institutions; 
"(H) integrating on-campus imdergraduate curriculum 
with study abroad and exchange programs; 
"(I) training faculty and stan in area studies, foreign 
languages, and other international fields; 
"(J) conducting siunmer institutes in foreign £irea and 
other international fields to provide faculty and curriculimi 
development, including the mtegration of professional and 
technical education with foreign area and other inter-
national studies, and to proviae foreign area and other 
international ^owledge or skills to government personnel 
or private sector professionals in international activities; 
"(K) developing study and internship abroad programs— 
"(i) in locations in which such opportunities are not 
otherwise available; or 
"(ii) which serve students for whom such opportuni-
ties are not otherwise available; and 
"(L) developing model programs to enrich or enhance 
the effectiveness of study abroad programs, including 
predeparture and post return orientation programs, 
integration of study abroad into the curriculum of the 
home institution, credit transfer, improved faculty involve-
ment, cross-disciplinary programs, student selection and 
advising services, and academic advising. 
"(3) NON-FEDERAL SHARE.—The non-Federal share of the cost 
of the programs assisted imder this subsection may be provided 
either in cash or in kind. Such assistance may be composed 
of institutional and noninstitutional fimds, including State and 
private contributions. 
"(4) EVALUATION CRITERIA AND REPORT.—AS a condition for 
the award of any grant under this subsection, the Secretary 
may establish criteria for evaluating programs and require 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 725 
an annual report which evaluates the progress and performance 
of students in such programs. 
"(c) PROGRAMS OF NATIONAL SIGNIFICANCE.—The Secretary may 
also award grants to public and private nonprofit agencies and 
organizations, including professional and scholarly associations, 
whenever the Secretary determines such grants will make an espe-
cially significant contribution to attaining the objective of this sec-
tion. 
'<SEC. 606. INTENSIVE SUMMER LANGUAGE INSTITUTES. 
20 USC 1124a. 
"(a) INTENSIVE SUMMER LANGUAGE INSTITUTES AUTHORIZED.— 
"(1) GRANTS AUTHORiZED.^The Secretary is authorized to 
make grants to institutions of higher education, or combinations 
of such institutions, for the purpose of estabhshing and conduct-
ing intensive summer language institutes. 
"(2) ELIGIBLE GRANT RECIPIENTS.—Training authorized by 
this section shall be provided through— 
"(A) institutes designed to meet the needs for intensive 
language training by advanced foreign language students; 
"(B) institutes designed to provide professional develop-
ment and improve language instruction through preservice 
and inservice training for language teachers; or 
"(C) institutes that combine the purposes of sub-
paragraphs (A) and (B). 
"(3) AUTHORIZED ACTIVITIES.—Grants made under this section 
may be used for— 
"(A) intensive training in criticsQ languages; 
"(B) training in neglected languages; and 
"(C) stipends for students and faculty attending the 
institutes authorized by this section. 
"(4) INSTRUCTIONAL PROGRAM.—Institutes supported under 
this section may provide instruction on a fiill-time or part-
time basis to supplement instruction not fully available in 
centers supported luider section 602. 
"(b) PEER REVIEW.—Grants made under this section shall be 
awarded on the basis of recommendations made by peer review 
panels composed of broadly representative professionals. 
'^EC. 606. RESEARCH; STUDIES; ANNUAL REPORT. 
20 USC 1125. 
"(a) AUTHORIZED ACTIVITIES.—^The Secretary may, directly or 
through grants or contracts, conduct research and studies which 
contribute to the purposes of this part. Such research and studies 
may include but are not limited to— 
"(1) studies and surveys to determine needs for increased 
or improved instruction m foreign language, area studies, or 
other international fields, including the demand for foreign 
language, area, and other international specialists in govern-
ment, education, and the private sector; 
"(2) studies and surveys to assess the utilization of graduates 
of programs supported imder this title by governmental, edu-
cational, £uid private sector organizations and other studies 
assessing the outcomes and effectiveness of programs so sup-
ported; 
"(3) comparative studies of the effectiveness of strategies 
to provide international capabilities at institutions of hi^er 
education; 
"(4) research on more effective methods of providing instruc-
tion and achieving competency in foreign languages; 
106 STAT. 726 
PUBLIC LAW 102-325—JULY 23, 1992 
"(5) the development and publication of specialized materials 
for use in foreign language, area studies, and other inter-
national fields, or for training foreign language, area, and other 
international specialists; and 
"(6) the application of performance tests and standards across 
aU areas of foreign language instruction and classroom use. 
"(b) ANNUAL REPORT.—^The Secretary shall prepare, publish, and 
announce an annual report listing the books and research materials 
produced with assistance imder this section. 
20 use 1125a. 
"SEC. 607. PERIODICALS AND OTHER RESEARCH MATERIALS PUB-
LISHED OUTSIDE THE UNITED STATES. 
"(a) 
PROGRAM AUTHORIZED; AUTHORIZATION OF APPROPRIA-
TIONS.— 
"(1) PROGRAM AUTHORIZED.—From the amount appropriated 
under paragraph (2), the Secretary is authorized to award 
grants to institutions of higher education, public or nonprofit 
private library institutions, or consortia of such institutions 
for the acquisition of, and provision of access to, periodicals 
and other research materials published outside the United 
States. 
"(2) AUTHORIZATION OP APPROPRIATIONS.—In addition to the 
amount authorized to be appropriated by section 610A, there 
are authorized to be appropriated $5,000,000 for fiscal year 
1993, and such sums as may be necessary for each of the 
4 succeeding fiscal years to carry out this section. 
"(b) AUTHORIZED ACTIVITIES.—Grants imder this section shall 
be used for the following purposes: 
"(1) To acquire periodicgds and other research materials pub-
hshed outside the United States which are not commonly held 
by American academic libraries and which are of scholarly 
or research importance. 
"(2) To maintain in machine-readable form current bibho-
graphic information on periodicgils and other research materials 
thus acquired, and to enter such information into one or more 
of the widely available bibliographic data bases. 
"(3) To preserve such periodicals and other research mate-
rials. 
"(4) To make such periodicals and other research materials 
widely available to researchers and scholsirs. 
"(c) APPLICATION AND PREFERENCE.— 
"(1) APPLICATION.—Each institution or consortium desiring 
a grant imder this section shall submit an appUcation to the 
Secretary at such time, in such manner, and accompanied 
by such information and assurances as the Secretary may rea-
sonably require. 
"(2) PREFERENCE.—^The Secretary shall give preference to 
grant appUcations according to the following criteria: 
"(A) The total number of library research materials in 
an institution's or consortium's collection. 
"(B) The comprehensiveness, both current and retrospec-
tive, of the institution's or consortium's collection of periodi-
cals and other research materials published outside the 
United States. 
"(C) Pubhc accessibiUty to the institution's or consor-
tium's collection of periodicals and other rese£irch materials 
published outside tne United States. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 727 
"(D) The institution's or consortium's technological 
capability to share its collection of periodicals and other 
research materials pubUshed outside the United States 
with other institutions of higher education, with public 
or nonprofit institutions, and with individual scholars. 
"(E) The institution's or consortium's budget and staff 
capability to build, maintain, and service periodicals and 
other research materisds published outside the United 
States. 
"(2) SUFFICIENT SIZE.—The Secretary shall award grants 
under this section of sufficient size to enable an institution 
or consortium to— 
"(A) substantially improve its collection of foreign periodi-
cals and other research materials pubUshed outside the 
United States; and 
"(B) contribute to a comprehensive national base of for-
eign language materials for students and scholars. 
"(d) WRITTEN AGREEMENT.— 
"(1) AGREEMENT REQUIRED.—Prior to the awarding of grants 
authorized under subsection (c), each recipient institution or 
consortium shall file a formal written agreement with the Sec-
retary which outlines their collecting responsibiUties regarding 
periodicals and other research materials published outside the 
United States and ensures public access. 
"(2) FUNDING LIMITATION.—NO funds from grants authorized 
\mder subsection (c) may be used by a recipient institution 
or consortium to acquire £ind process periodicals and other 
research materials pubUshed outside the United States other 
than that specified in the agreement filed with the Secretsiry 
under paragraph (1). 
"(e) COPYRIGHT.—Nothing in this section shaU be considered to 
amend, affect, or define the provisions of title 17, United States 
Code, relating to cop5rright. 
"SEC. 608. SELECTION OF CERTAIN GRANT RECIPIENTS. 
20 USC 1125b. 
"(a) COMPETITIVE GRANTS.—^The Secretary shaU award grants 
under section 602 competitively on the basis of criteria that sepa-
rately, but not less rigorously, evaluates the applications for com-
prehensive and undergraduate language and area centers and pro-
grams. 
"(b) SELECTION CRITERIA.—The Secretary shaU set criteria for 
grants awarded under section 602 by which a determination of 
exceUence shsQl be made to meet the differing objectives of graduate 
and undergraduate institutions. 
"(c) EQUITABLE DISTRIBUTION OF GRANTS.—The Secretary shaU, 
to the extent practicable, award grants under this part (other than 
section 602) in such manner as to achieve an equitable distribution 
of funds throughout the United States, based on the merit of a 
proposal with peer review by broadly representative professionals. 
«SEC. 609. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS. 
20 USC 1126. 
"(a) SELECTION CRITERIA.—The Secretary shaU make exceUence 
the criterion for selection of grants awarded under section 602. 
"(b) EQUITABLE DISTRIBUTION.—To the extent practicable and 
consistent with the criterion of exceUence, the Secretary shaU award 
grants imder this part (other than section 602) in such a manner 
as wUl achieve an equitable distribution of funds throughout the 
Nation, 
106 STAT. 728 
PUBLIC LAW 102-325—JULY 23, 1992 
"(c) SUPPORT FOR UNDERGRADUATE EDUCATION.—The Secretary 
shall also award grants under this part in such manner as to 
ensure that an appropriate portion of the funds appropriated for 
this part (as determined by the Secretary) are used to support 
undergraduate education. 
20 use 1127. 
'<SEC. 610. AMERICAN OVERSEAS RESEARCH CENTERS. 
"(a) CENTERS AUTHORIZED.—^The Secretary is authorized to make 
grants to and enter into contracts with any American overseas 
research center that is a consortium of institutions of higher edu-
cation (hereafter in this section referred to as a 'center') to enable 
such center to promote postgraduate research, exchsinges and area 
studies. 
"(b) USE OF GRANTS.—Grants made and contracts entered into 
pursuant to this section may be used to pay all or a portion 
of the cost of estabhshing or operating a center or program, includ-
ing the cost of faculty and staff stipends and salaries, faculty, 
staff and student travel, the operation and maintenance of overseas 
facilities, the cost of teaching and research materials, the cost 
of acquisition, maintenance and preservation of library collections, 
the cost of bringing visiting scholars and faculty to a center to 
teach or to conduct research, the cost of organizing and managing 
conferences and the cost of publication and dissemination of mate-
rial for the scholarly and general public. 
"(c) LIMITATION.—^The Secretary shall only award grants to and 
enter into contracts with centers imder this section that— 
"(1) receive more than 50 percent of their funding from public 
or private United States sources; 
"(2) have a permanent presence in the country in which 
the center is located; and 
"(3) are organizations described in section 501(c)(3) of the 
Internal Revenue Code of 1986 which are exempt from taxation 
under section 501(a) of such Code. 
20 use 1128. 
"SEC. 610A. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part 
$80,000,000 for fiscal year 1993, and such sums as may be necessary 
for the 4 succeeding fiscal years. 
**PART B—BUSINESS AND INTERNATIONAL 
EDUCATION PROGRAMS 
20 use 1130. 
"SEC. 611. FINDINGS AND PURPOSES. 
"(a) FINDINGS.—The Congress finds that^ 
"(1) the future economic welfare of the United States will 
depend substantially on increasing intemationsil skills in the 
business and educational community and creating an awareness 
among the American public of the intemationahzation of our 
economy; 
"(2) concerted efforts are necessary to engage business 
schools, lEinguage and area study programs, professional inter-
national affairs education programs, public and private sector 
organizations, and United States business in a mutually produc-
tive relationship which benefits the Nation's future economic 
interests; 
"(3) few linkages presently exist between the manpower and 
information needs of United States business and the inter-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 729 
national education, language training and research capacities 
of institutions of higher education in the United States, and 
pubUc and private organizations; and 
"(4) organizations such as world trade councils, world trade 
clubs, chambers of commerce and State departments of com-
merce are not adequately used to link universities and business 
for joint venture exploration and progreun development. 
"(b) PURPOSES.—It is the purpose of this part— 
"(1) to enhance the broad objective of this Act by increasing 
and promoting the Nation's capacity for international under-
standing and economic enterprise through the provision of suit-
able international education and training for business personnel 
in various stages of professional development; and 
"(2) to promote institutional and noninstitutional educational 
and training activities that will contribute to the abiUty of 
United States business to prosper in an international economy. 
**SEC. 612. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION. 
20 USC 1130-1. 
"(a) PROGRAM AUTHORIZED.— 
"(1) IN GENERAL.—^The Secretary is authorized to make grants 
to institutions of higher education, or combinations of such 
institutions, to pay the Federal share of the cost of planning, 
establishing and operating centers for international business 
education which— 
"(A) will be national resources for the teaching of 
improved business techniques, strategies, and methodolo-
gies which emphasize the international context in which 
business is transacted; 
"(B) will provide instruction in critical foreign languages 
and international fields needed to provide understandmg 
of the cultures and customs of United States trading part-
ners; and 
"(C) will provide research and training in the inter-
national aspects of trade, commerce, and other fields of 
study. 
"(2) SPECIAL RULE.—In addition to providing training to stu-
dents enrolled in the institution of higher education in which 
a center is located, such centers shall serve as regional 
resources to businesses proximately located by offering pro-
grams and providing resesirch designed to meet the inter-
national training needs of such businesses. Such centers shall 
also serve other faculty, students, and institutions of higher 
education located within their region. 
"(b) AUTHORIZED EXPENDITURES.—Each grant made under this 
section may be used to pay the Federal share of the cost of planning, 
establishing or operating a center, including the cost o
f
— 
"(1) faculty and staff travel in foreign areas, regions, or 
countries; 
"(2) teaching and research materials; 
"(3) curriculiun planning £ind development; 
"(4) bringing visiting scholars and faculty to the center to 
teach or to conduct research; and 
"(5) training and improvement of the staff, for the purpose 
of, and subject to such conditions as the Secretary finds nec-
essary for, carrying out the objectives of this section. 
"(c) AUTHORIZED ACTIVITIES.— 
106 STAT. 730 
PUBLIC LAW 102-325—JULY 23, 1992 
"(1) MANDATORY ACTIVITIES.—Programs and activities to be 
conducted by centers assisted under this section shall include— 
"(A) interdisciplinary programs which incorporate foreign 
language and international studies training into business, 
finance, management, communications systems, and other 
professional curricula; 
"(B) interdisciplinary programs which provide business, 
finance, management, communications systems, and other 
professional training for foreign language and international 
studies faculty and advanced degree candidates; 
"(C) evening or summer programs, such as intensive 
language programs, available to members of the business 
community and other professionals which are designed to 
develop or enhance their international skills, awareness, 
and expertise; 
"(D) collaborative programs, activities, or research involv-
ing other institutions of higher education, local educational 
agencies, professional associations, businesses, firms, or 
combinations thereof, to promote the development of inter-
national skills, awareness, and expertise among current 
and prospective members of the business community £ind 
other professionals; 
"(E) research designed to strengthen and improve the 
international aspects of business and professional education 
and to promote integrated curricula; and 
"(F) research designed to promote the international com-
petitiveness of American businesses and firms, including 
those not currently active in international trade. 
"(2) PERMISSIBLE ACTIVITIES.—Programs and activities to be 
conducted by centers assisted xinder this section may include— 
"(A) the establishment of overseas internship programs 
for students and faculty designed to provide training and 
experience in international business activities, except that 
no Federal funds provided under this section may be used 
to pay wages or stipends to any participant who is engaged 
in compensated emplo3rment as part of an internship pro-
gram; 
"(B) the establishment of linkages overseas with institu-
^ 
tions of higher education and other organizations that con-
tribute to the educational objectives of this section; 
"(C) summer institutes in international business, foreign 
area studies, and other international studies designed to 
carry out the purposes of subparagraph (A) of this para-
graph; 
"(D) the development of opportunities for business stu-
\ 
dents to study abroad in locations which are important 
to the existing Eind future economic well-being of the United 
States; 
"(E) outreach activities or consortia with business pro-
grams located at other institutions of higher education 
for the purpose of providing expertise regarding the inter-
nationalization of such programs, such as assistance in 
research, curriculum development, faculty development, or 
educational exchange programs; and 
"(F) other eligible activities prescribed by the Secretary. 
"(d) ADVISORY COUNCIL.— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 731 
"(1) ESTABLISHMENT.—In order to be eligible for assistance 
under this section, an institution of higher education, or com-
bination of such institutions, shall establish a center advisory 
council which will conduct extensive planning prior to the 
establishment of a center concerning the scope of the center's 
activities and the design of its programs. 
"(2) MEMBERSHIP ON ADVISORY COUNCIL.—The center advisory 
council shsdl include— 
"(A) one representative of an administrative department 
or office of the institution of higher education; 
"(B) one faculty representative of the business or manage-
ment school or department of such institution; 
"(C) one faculty representative of the international 
studies or foreign language school or department of such 
institution; 
"(D) one faculty representative of another professional 
school or department of such institution, as appropriate; 
"(E) one or more representatives of local or regional 
businesses or firms; 
"(F) one representative appointed by the Governor of 
the State in which the institution of higher education is 
located whose normal responsibilities include official over-
sight or involvement in State-sponsored trade-related 
activities or programs; and 
"(G) such other individueds as the institution of higher 
education deems appropriate. 
"(3) MEETINGS.—In addition to the initial planning activities 
required under subsection (d)(1), the center advisory council 
shall meet not less than once each year after the establishment 
of tiie center to assess and advise on the programs and activities 
conducted by the center. 
"(e) GRANT DURATION; FEDERAL SHARE.— 
"(1) DURATION OF GRANTS.—The Secretary shall make grants 
under this section for a minimum of 3 yesirs imless the Sec-
retary determines that the provision of grants of shorter dura-
tion is necessary to carry out the objectives of this section. 
"(2) FEDERAL SHARE.—The Federal share of the cost of plan-
ning, establishing and operating centers under this section 
shall be— 
"(A) not more than 90 percent for the first year in which 
Federal funds are received; 
"(B) not more than 70 percent for the second such year; 
and 
"(C) not more than 50 percent for the third such year 
and for each such year thereafter. 
"(3) NON-FEDERAL SHARE.—The non-Federal share of the cost 
of planning, establishing, and operating centers under this 
section may be provided either in cash or in-kind. 
"(4) WAIVER OP NON-FEDERAL SHARE.—In the case of an 
institution of higher education receiving a grant under this 
part and conducting outreach or consortia activities with 
another institution of higher education in accordance with sec-
tion 612(c)(2)(E), the Secretary may waive a portion of tiie 
requirements for the non-Federal share required in paragraph 
(2) equal to the amount provided by the institution of lugher 
education receiving such grant to such other institution of 
higher education for carrymg out such outreach or consortia 
106 STAT. 732 
PUBLIC LAW 102-325—JULY 23, 1992 
activities. Any such waiver shall be subject to such terms 
and conditions as the Secretary deems necessary for carrying 
out the purposes of this section. 
*
*
(
f
) GRANT CONDITIONS.—Grants under this section shall be made 
on such conditions as the Secretary determines to be necessary 
to carry out the objectives of this section. Such conditions shall 
include— 
"(1) evidence that the institution of higher education, or 
combination of such institutions, will conduct extensive plan-
ning prior to the estabUshment of a center concerning the 
scope of the center's activities and the design of its programs 
in accordance with subsection (d)(1); 
"(2) assurance of ongoing collaboration in the estabHshment 
and operation of the center by faculty of the business, manage-
ment, foreign language, international studies, professional 
intemationsd affairs, and other professional schools or depart-
ments, as appropriate; 
"(3) assurance that the education and training programs of 
the center will be open to students concentrating in each of 
these respective areas, as appropriate; and 
"(4) assurance that the institution of higher education, or 
combination of such institutions, will use tiie assistance pro-
vided under this section to supplement and not to supplant 
activities conducted by institutions of higher education 
described in subsection (cXl). 
20 use 1130a. 
''SEC. 613. EDUCATION AND TRAIMNG PROGRAMS. 
Contracts. 
«(a) P
R
O
G
R
A
M AUTHORIZED.—The Secretary shall make grants 
to, and enter into contracts with, institutions of higher education 
to pay the Federal share of the cost of programs designed to promote 
linkages between such institutions and the American business com-
munity engaged in international economic activity. Each program 
assisted under this section shall both enhance the international 
academic programs of institutions of higher education and provide 
appropriate services to the business community which will expand 
its capacity to engage in commerce abroad. 
"(b) AUTHORIZED ACTIVITIES.—Eligible activities to be conducted 
by institutions of higher education pursuant to grants or contracts 
awarded imder this section shall include— 
/ 
"(1) innovation and improvement in international education 
curricula to serve the needs of the business community, includ-
ing development of new programs for nontraditional, mid-
C£ireer, or part-time students; 
"(2) development of programs to inform the pubUc of increas-
ing international economic interdependence and the role of 
American business within the international economic S3rstem; 
"(3) internationalization of curricula at the jimior and commu-
nity college level, and at undergraduate and graduate schools 
of business; 
"(4) development of eirea studies programs, and interdiscipU-
nary intemationsd programs; 
"(5) estabUshment of export education programs through 
cooperative arrangements with regional and world trade centers 
and councils, and with bilateral and multilateral trade associa-
tions; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 733 
**(6) reseeirch for and development of specialized teaching 
materials, including language materials, and facilities appro-
priate to business-oriented students; 
"(7) establishment of student and faculty fellowships and 
internships for training and education in international business 
activities; 
"(8) development of opportunities for jimior business and 
other professional school faculty to acquire or strengthen inter-
national skills and perspectives; 
"(9) development of research programs on issues of common 
interest to institutions of higher education and private sector 
organizations and associations engaged in or promoting inter-
national economic activity; 
"(10) the establishment of internships overseas to enable 
foreign language students to develop their foreign language 
skills and knowledge of foreign cultures and societies; 
"(11) the establishment of linkages overseas with institutions 
of higher education and organizations that contribute to the 
educational objectives of this section; and 
"(12) summer institutes in international business, foreign 
area and other international studies designed to c£irry out 
the purposes of this section. 
"(c) APPLICATIONS.—No grant may be made and no contract may 
be entered into under this section unless an institution of higher 
education submits an application to the Secretary at such time 
and in such manner as the Secretary may reasonably require. 
Each such application shall be accompanied by a copy of the agree-
ment entered into by the institution of higher education with a 
business enterprise, trade organization or association engaged in 
international economic activity, or a combination or consortium 
of such enterprises, organizations or associations, for the purpose 
of establishing, developing, improving or expanding activities 
eligible for assistance under subsection (b) of this section. Each 
such appUcation shall contain assurances that the institution of 
higher education will use the assistance provided imder this section 
to supplement and not to supplcint activities conducted by institu-
tions of higher education described in subsection (b). 
"(d) FEDERAL SHARE.—The Federal share under this part for 
each fiscal year shall not exceed 50 percent of the cost of such 
program. 
'^EC. 614. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1130b. 
"(a) CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.—There 
are authorized to be appropriated $11,000,000 for the fiscal year 
1993 and such sums as may be necessary for each of the 4 succeed-
ing fiscal years to carry out the provisions of section 612. 
"(b) EDUCATION AND TRAINING PROGRAMS.—There are authorized 
to be appropriated $7,000,000 for fiscal year 1993, and such sums 
as may be necessary for the 4 succeecting fiscal years, to carry 
out the provisions of section 613. 
106 STAT. 734 
PUBLIC LAW 102-325—JULY 23, 1992 
**PART C—INSTITUTE FOR INTERNATIONAL 
PUBLIC POLICY 
20 u s e 1131. 
'^EC. 621. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOP-
MENT PROGRAM. 
"(a) ESTABLISHMENT.—^The Secretary is authorized to award a 
grant, on a competitive basis, to an eligible recipient to enable 
such recipient to establish an Institute for International PubHc 
PoUcy (hereafter in this part referred to as the Institute'). The 
Institute shall conduct a program to significantly increase the num-
bers of African Americans and other underrepresented minorities 
in the international service, including private international vol-
untary organizations and the foreign service of the United States. 
Such program shall include a program for such students to study 
abroad in their jimior year, fellowships for graduate study, intern-
ships, intensive academic programs such as summer institutes, 
or intensive language training. 
"(b) DEFINITION OF ELIGIBLE RECIPIENT.— 
"(1) IN GENERAL.—For the purpose of this part, the term 
'eligible recipient' means a consortium consisting of 1 or more 
of the following entities: 
"(A) An institution eligible for assistance under part B 
of title III of this Act. 
"(B) An institution of higher education which serves sub-
stantial 
numbers 
of 
African 
American 
or 
other 
underrepresented minority students. 
"(C) An institution of higher education with programs 
in training foreign service professionals. 
"(2) HOST INSTITUTION.—Each eligible recipient receiving a 
grant under this section shall designate an institution of higher 
education as the host institution for the Institute. 
"(c) APPLICATION.—Each eligible recipient desiring a grant iinder 
this section shall submit an appUcation at such time, in such 
manner, and accompanied by such information as the Secretary 
may reasonably require. 
"(d) DURATION.—Grants made pursuant to this section shall be 
awarded for a period not to exceed 5 years. 
"(e) MATCH REQUIRED.—The ehgible recipient of a grant under 
this section shall contribute to the conduct of the program supported 
by the grant an amount from non-Federal sources equal to at 
least one-fourth the amount of the grant, which contribution may 
be in cash or in kind. 
20 u s e 1131a. 
''SEC 622. JUNIOR YEAR ABROAD PROGRAM. 
"(a) PROGRAM AUTHORITY.—^The Institute shall conduct, by grant 
or contract, a junior year abroad program. The junior year abroad 
program shall be open to ehgible students at institutions of higher 
education, including historically Black colleges and universities as 
defined in section 322 of this Act, tribally controlled Indian commu-
nity colleges as defined in the Tribally Controlled Community Col-
lege Assistance Act of 1978, and other institutions of higher edu-
cation with significant minority student populations. Eligible stu-
dent expenses shall be shared by the Institute and the institution 
at which the student is in attendance. Each student may spend 
not more than 9 months abroad in a program of academic study, 
as well as social, familial and pohtical interactions designed to 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 735 
foster an understanding of and familiarity with the language, cul-
ture, economics and govemsince of the host country. 
"(b) DEFINITION OF ELIGIBLE STUDENT.—For tlie purpose of this 
section, the term 'eligible student' means a student that is— 
"(1) enrolled full-time in a baccalaureate degree program 
at an institution of higher education; and 
"(2) entering the third year of study at an institution of 
higher education which nominates such student for participa-
tion in the jimior year abroad program. 
"(c) SPECIAL RULE.—^An institution of higher education desiring 
to send a student on the junior year abroad program shall enter 
into a Memorandum of iJnderstanding with the Institute under 
which such institution of 
higher education agrees to— 
"(1) provide the requisite academic preparation for students 
participating in the junior year abroad or internship programs; 
"(2) pay one-half the cost of each student it nommates for 
participation in the junior year abroad program; and 
"(3) meet such other reqjuirements as the Secretary may 
from time to time, by regulation, reasonably require. 
«SEC. 623. MASTERS DEGREE IN INTERNATIONAL RELATIONS. 
20 USC 1131b. 
"The Institute shall provide, in cooperation with the other mem-
bers participating in the eligible recipient consortium, a program 
of study leading to a masters degree in international relations. 
The masters degree program designed by the consortia shall be 
reviewed and approved by the Secretary. The Institute may grant 
fellowships in an amount not to exceed the level of support com-
parable to that provided by the National Science Foundation grad-
uate fellowships, except such amoimt shall be adjusted as necessary 
so as not to exceed the fellow's demonstrated level of need accordiag 
to measurement of need approved by the Secretary. A fellowship 
recipient shall agree to undertake full-time study and to enter 
the international service (including work with private international 
voluntary organizations) or foreign service of the United States. 
<<SEC. 624. INTERNSHIPS. 
"The Institute shall enter into agreements with historically Black 
colleges and universities as defined in section 322 of this Act, 
tribally controlled Indian community colleges as defined in the 
Tribally Controlled Community College Assistance Act of 1978, 
other institutions of higher education with significant mmibers 
of minority students, and institutions of higher education with 
programs in training foreign service professionals, to provide aca-
demic year internships dtiring the junior and senior year and sum-
mer internships following the sophomore and jxmior academic years, 
by work placements with an international voluntary or government 
organizations or agencies, including the Agency for International 
Development, the United States Information Agency, the Inter-
national Monetary Fund, the National Security Coimcil, the 
Organization of American States, the Export-Import Bank, the 
Overseas Private Investment Corporation, the Department of State, 
Office of the United States Trade Representative, the World Bank, 
and the United Nations. 
"SEC. 626. REPORT. 
20 USC 1131d. 
"The Institute shall annually prepare a report on the activities 
of the Institute and shall submit such report to the Secretary 
of Education and the Secretary of State. 
Contracts. 
Minorities. 
Indians. 
20 USC 1131c. 
106 STAT. 736 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 1131e. 
«SEC. 626. GIFTS AND DONATIONS. 
'The Institute is authorized to receive money and other property 
donated, bequeathed, or devised to the Institute with or without 
a condition of restriction, for the purpose of providing financial 
support for the fellowships or underwriting the cost of the Junior 
Year Abroad Program. All funds or property given, devised, or 
bequeathed shall be retained in a separate account, and an account-
ing of those funds and property shall be included in the annual 
report described in section 625. 
Appropriation 
"SEC. 627. AUTHORIZATION. 
20 u ^ m f 
"There is authorized to be appropriated $10,000,000 for fiscal 
year 1993 and such sums as may he necessary for each of the 
4 succeeding fiscal years to carry out this part. 
"PART D—GENERAL PROVISIONS 
20 use 1132. 
"SEC. 631. DEFINITIONS. 
"(a) DEFINITIONS.—As used in this title— 
"(1) the term 'area studies' means a program of com-
prehensive study of the aspects of a society or societies, includ-
ing study of its history, culture, economy, politics, international 
relations and languages; 
"(2) the term 'international business' means profit-oriented 
business relationships conducted across national boundaries 
and includes activities such as the buying and selling of goods, 
investments in industries, the Hcensing of processes, patents 
and trademarks, and the supply of services; 
"(3) the term 'export education' means educating, teaching 
and training to provide general knowledge and specific skills 
pertinent to the selling of goods and services to other countries, 
including knowledge of market conditions, financial arrange-
ments, laws and procedures; 
"(4) the term 'intemationaHzation of curricula' means the 
incorporation of international or comparative perspectives in 
existing courses of study or the addition of new components 
to the curricula to provide an international context for Americsui 
business education; 
"(5) the term 'comprehensive language and area center' means 
an administrative unit of a university that contributes signifi-
cantly to the national interest in advanced research and schol-
arship, employs a critical mass of scholars in diverse disciplines 
related to a geographic concentration, offers intensive language 
training in languages of its area speciahzation, maintains 
important Ubrary collections related to the area, and makes 
training available in language and area studies to a graduate, 
postgraduate, and undergraduate clientele; and 
"(6) the term 'undergraduate language and area center' means 
an administrative unit of an institution of higher education, 
including but not Umited to 4-year colleges, that contributes 
significantly to the national interest through the education 
and training of students who matriculate into advanced \an-
guage and area studies programs, professional school programs, 
or incorporates substantial international and foreign language 
content into baccalaureate degree programs, engages in 
research, curriculum development and commimity outreach 
activities designed to broaden international and foreign Ian-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 737 
guage knowledge, employs faculty with strong language, area, 
and international studies credentials, maintains library hold-
ings, including basic reference works, journals, and works in 
translation, and makes training available predominantly to 
undergraduate students; 
"(7) the term 'critical languages' means each of the languages 
contained in the Ust of critical languages designated by tiie 
Secretary pursuant to section 212(d) of the Education for Eco-
nomic Security Act (50 Fed. Reg. 149, 31413), except that, 
in the implementation of this definition, the Secretary may 
set priorities according to the purposes of this title; and 
"(8) the term 'institution of higher education' means, in addi-
tion to institutions which meet the definition of section 1201(a) 
of this Act, institutions which meet the requirements of section 
1201(a) of this Act except that (1) they are not located in 
the United States, and (2) they apply for assistance under 
this title in consortia with institutions which meet the definition 
of 1201(a) of this Act. 
"(b) SPECIAL CONDITIONS.—All references to individuals or 
organizations, unless the context otherwise requires, mean individ-
uals who are citizens or permanent residents of the United States 
or organizations which are organized or incorporated in the United 
States. 
«SEC. 632. PRESERVATION OF PRE-1992 PROGRAMS. 
20 USC 1132-1. 
"Notwithstanding any other provision of law, amendments to 
this title establishing new programs or expanding existing programs 
enacted pursuant to the Higher Education Amendments of 1992 
shall not be funded in fiscal year 1993, or the 4 succeeding fiscal 
years, unless and until Congress enacts appropriations for programs 
xmder this title enacted prior to such Amendments at a level no 
less than the level of funding in effect for such preexisting programs 
for fiscal year 1992. 
TITLE 
VII—CONSTRUCTION, 
RECON-
STRUCTION, AND RENOVATION OF 
ACADEMIC FACILITIES 
SEC. 701. PURPOSES. 
Section 701 of the Act (20 U.S.C. 1132a) is amended— 
(1) in the matter preceding paragraph (1) of subsection (a)— 
(A) by inserting a period after "instructional instrumenta-
tion and equipment'; 
(B) by striking "if the primary purpose of such assistance 
is to enable such institutions—" in subsection (a) and 
inserting the following: "In making such grants, the Sec-
retary shall include assistance to enable institutions—"; 
(2) in subsection (a)(1)— 
(A) by striking subparagraphs (A) and (B) and inserting 
the following: 
"(A) Federal, State, and locsd laws requiring removal 
of barriers to full participation by individuals with disabil-
ities;"; 
(B) by redesignating subparagraphs (C) and (D) as sub-
paragraphs (B) and (C), respectively; and 
59-194 O—93 
25 : QL 3 (Pt. 1) 
106 STAT. 738 
PUBLIC LAW 102-325—JULY 23, 1992 
Higher 
Education 
Facilities Act 
of 1992. 
20 u s e 1132b. 
(3) in subsection (a)(4), by inserting "(including renovation 
of libraries to promote the use of new technologies and preserva-
tion of library materials)" after "hbraries". 
SEC. 702. PRIOR RIGHTS AND OBUGATIONS. 
Section 702 of the Act (20 U.S.C. 1132a-l) is amended to read 
as follows: 
«SEC. 702. PRIOR RIGHTS AND OBUGATIONS. 
"(a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary for fiscal year 
1993 and for each of the 4 succeeding fiscal yesirs to pay obligations 
incurred prior to 1987 under parts C and D of this title, as such 
parts were in effect before the effective date of the Higher Education 
Act Amendments of 1992. 
"(b) LEGAL RESPONSIBILITIES.—Except as provided in section 783, 
all entities with continuing obhgations incurred under parts A, 
B, C, and D of this title, as such parts were in effect before 
the effective date of the Higher Education Act Amendments of 
1992, shall be subject to the requirements of such part as in 
effect before the effective date of the Higher Education Act Amend-
ments of 1992.". 
SEC. 703. IMPROVEMENT OF ACADEMIC AND LIBRARY FACIUTIES. 
Part A of title VII of the Act (20 U.S.C. 1132b et seq.) is amended 
to read as follows: 
**PART A—IMPROVEMENT OF ACADEMIC AND 
LIBRARY FACILITIES 
''SEC. 711. SHORT TITLE. 
"This part may be cited as the 'Higher Education FaciUties Act 
of 1992'. 
20 u s e 1132b-l. 
''SEC. 712. FINDINGS. 
20 u s e 1132b-2. 
"The Congress finds that— 
"(1) over the past 50 years institutions of higher education 
have expanded dramatically, while at the seune tmie traditional 
sources of funding faciUties maintenance and repair have 
declined and even (usappeared in some instances; 
"(2) in order to meet the rising cost of educating students, 
resulting mainly 
fi*om 
inflation and the higher costs of research, 
many colleges and imiversities made the choice to defer ren-
ovations and improvements; 
"(3) overall, the need for capital investment by institutions 
of 
higher 
education 
has 
been 
estimated 
to 
exceed 
$60,000,000,000; 
"(4) the deterioration of faciUties has caused valuable 
research experiments and programs to be postponed, delayed 
or canceled; and 
"(5) the United States' competitive position within the world 
economy is vulnerable if tiie necessary research facilities are 
not available to provide advanced training in the fields of 
science £ind technology. 
"SEC. 713. DISTRIBUTION OF ASSISTANCE. 
"(a) COMPETITIVE OR FORMULA DISTRIBUTION.— 
PUBLIC LAW 102-325-JULY 23, 1992 
106 STAT. 739 
"(1) COMPETITIVE GRANTS.—If the amount appropriated pur-
suant to section 716 for a fiscal year is less than $50,000,000, 
then the Secretary shall award grants under this part on a 
competitive basis in accordance with subsection (h) to institu-
tions of higher education to carry out the activities described 
in section 714. 
"(2) ALLOTMENT FORMULA.— 
"(A) FORMULA.—If the amount appropriated pursuant 
to section 716 for a fiscal year is equal to or greater 
than $50,000,000, then the Secretary shall allot to each 
State higher 
education 
agency with 
an 
approved 
application— 
"(i) 50 percent of such funds on the basis of the 
population of the State compared to the population 
ofall States; and 
**(ii) 50 percent of such funds on the basis of the 
number of students attending institutions of higher 
education within the State compared to the number 
of students attending institutions of higher education 
in all States. 
"(B) USE OF FORMULA GRANTS.—Each State higher edu-
cation agency receiving an allotment pursuant to subpara-
graph (A), shall use such allotment to award grants, on 
a competitive basis, to institutions of higher education 
within the State to enable such institutions to carry out 
the activities described in section 714. 
"(C) REALLOTMENT.—Except as provided in subsection 
(f), any amount that the Secretary determines will not 
be available to a State higher education agency because 
such agency elects not to participate in the program 
assisted under this part shall be repotted to other States 
in the same manner as the original allotments were made. 
"(b) MATCHING REQUIREMENTS.— 
"(1) STATE MATCHING REQUIREMENT.— 
"(A) IN GENERAL.—In order to receive an allotment under 
subsectioij (a)(2)(A), each State higher education agency 
shall provide matching funds equal to 25 percent of tiie 
amount of any allotment received pursuant to such sub-
section. The Secretary may waive the requirements of the 
preceding sentence if the State can demonstrate to the 
satisfaction of the Secretary that such matching require-
ment would present a severe financial hardship to the 
State. 
"(B) CASH REQUIREMENT.—Each State higher education 
agency receiving funds under this part shall only provide 
matching funds pursuant to paragraph (1) in cash. 
"(2) INSTITUTIONAL MATCHING REQUIREMENT.—In order to 
receive a grant under subsection (a)(1) or (a)(2)(B), each eligible 
institution shall provide matching fUnds equal to 50 percent 
of the amount of any grant received pursuant to such sub-
section. Such matching funds may be provided by the State 
higher education agency or the institution of higher education. 
"(c) PRIORITY.—In awarding grants pursuant to subsection (a), 
the Secretary or each State higher education agency shall give 
priority to institutions of higher education that serve large numbers 
or percentages of 
minority or disadvantaged students. 
106 STAT. 740 
PUBLIC LAW 102-325—JULY 23, 1992 
"(d) EQUITABLE PARTICIPATION.—^In awarding grants pursuant 
to subsection (a), the Secretary or each State mgher education 
agency shall ensure the equitable participation of both pubUc and 
private eUgible institutions within the State. 
"(e) SPECIAL RULE.—If the Secretary determines that any eligible 
institution within a State has received, within the 2 preceding 
fiscal years, a direct, noncompetitive award of Federal funds for 
facilities construction, renovation, improvement or repair, then the 
eUgible institution shall be inehgible to receive assistance under 
thispart. 
"(t) USE FOR MAINTENANCE.—^An amount less than or equal to 
10 percent of that portion of funds awarded under this part which 
is allotted by the recipient to meet costs o
f
— 
"(1) research and instructioncQ instrumentation and equip-
ment; and 
"(2) equipment and structural changes necessary to ensure 
the proper functioning of such research or instructional 
instrumentation and equipment; 
may be allocated by the recipient for maintenance of equipment 
and changes described in psiragraphs (1) and (2). Part or all of 
this percentage may also be apphed to costs of upgrading such 
equipment and structural chsmges within 3 years of the date of 
liitial use, if the recipient deems such upgrading essential to the 
continued usefulness of such research or instructional instrumenta-
tion and equipment. 
"(g) SUPPLEMENTATION.—Grants awarded pursuant to subsection 
(a) shall be used to supplement and not supplant other Federal, 
State, and local funds available for improvement of academic and 
Ubrary facilities. 
"(h) PEER REVIEW REQUIRED.—In making grants imder subsection 
(a)(1), the Secretary shall utilize a nationsd peer review panel. 
The panel shall be broadly representative of all types and classes 
of institutions of higher education in the United States. 
20 u s e 1132b-3. 
«SEC. 714. USE OF FUNDS. 
"(a) IN GENERAL.—Institutions of higher education shall use funds 
awarded imder this peirt for any one or more of the following 
activities: 
"(1) The improvement, renovation, and repair of academic 
facilities. 
"(2) The improvement and renovation of library facilities. 
"(3) The improvement and renovation of broadcast, cable, 
and satellite interconnection equipment for use in postsecond-
ary educationcd television and radio programming, including 
interactive technology and communications. 
"(4) The construction of academic and Ubrary faciUties if 
the State determines such construction necessary. 
20 u s e 1132b-4. 
**SEC. 715. APPUCATION. 
"(a) STATE HIGHER EDUCATION AGENCY.— 
"(1) APPLICATION.—Each State higher education agency desir-
ing an allotment pursuant to section 713(a)(2)(A) shall submit 
an appUcation to the Secretary at such time, in such manner 
and accompanied by such information as the Secretary may 
reasonably require. 
"(2) CONTENTS.—Each application described in paragraph (1) 
shall— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 741 
"(A) describe the activities and services for which assist-
ance is sought; 
"(B) contain assurances that the State higher education 
agency will comply with the matching requirement 
described in section 713(bXl); 
"(C) contslin a description and the amoimt of any direct, 
noncompetitive appropriation of funds for faciHties con-
struction, renovation, improvement or repair which the 
State provides to any institution of higher education within 
the State; and 
"(D) contain such other assurances as the Secretar^r 
determines necessary to ensure compliance with the provi-
sions of this part. 
"(b) INSTITUTIONS OP HIGHER EDUCATION.— 
"(1) STATE GRANTS.— 
"(A) APPLICATION.—Each institution ot nigher education 
desiring a grant pursuant to section 713(a)(1) or 
713(a)(2)(B) shall submit an application to the Secretary 
or the State higher education agency, as appropriate, at 
such time, in such manner and accompanied by such 
information as the Secretary or such agency may reason-
ably require. 
"(B) CONTENTS.—Each appUcation described in para-
graph (1) shall— 
"(i) describe the activities and services for which 
assistance is sought; 
"(ii) contain assurances that the eligible institution 
will comply with the matching requirement described 
in section 713(b)(2); and 
"(iii) contain such other assurances as the Secretary 
or State higher education agency determines necessary 
to ensure compliance with the provisions of this part. 
"SEC. 716. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $350,000,000 for fiscal 
year 1993 and each of the 4 succeeding fiscal years to carry out 
the provisions of this part.". 
SEC. 704. MSTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL 
FINANCING. 
Part B of title VII of the Act (20 U.S.C. 1132c et seq.) is amended 
to read as follows: 
**PART B—HISTORICALLY BLACK COLLEGE 
AND UNIVERSITY CAPITAL FINANCING 
20 use 1132b-5. 
"SEC. 721. FINDINGS. 
"The Congress finds that— 
"(1) a significant part of the Federal mission in education 
has been to attain equal opportunity in higher education for 
low-income, educationally disadvantaged Americans and Afid-
can Americans; 
"(2) the Nation's historically Black colleges and xmiversities 
have played a prominent role in American history and have 
£in unparalleled record of fostering the development of African 
American youth by recognizing their potential, enhancing their 
20 use 1132c. 
106 STAT. 742 
PUBLIC LAW 102-325—JULY 23, 1992 
academic and technical skills, and honing their social and politi-
cal skills through higher education; 
"(3) the academic sind residential faciUties on the campuses 
of all historically Black colleges and universities have suffered 
from neglect, deferred maintenance and are in need of capital 
improvements in order to provide appropriate settings for learn-
ing and social development through higher education; 
(4) due to their small enrollments, limited endowments and 
other financial factors normally considered by lenders in con-
struction financing, historically Black colleges and imiversities 
often lack access to the sources of funding necessary to under-
take the necessary capital improvements through borrowing 
and bond financing; 
"(5) despite their track record of long-standing and remark-
able institutional longevity and viabiUty, historically Black col-
leges and imiversities often lack the financial resources nec-
essary to gain access to traditional sources of capital financing 
such as b£mk loans and bond financing; and 
"(6) Federal assistance to facilitate low-cost capital basis for 
historically Black colleges and universities will enable such 
colleges and universities to continue and expand their edu-
cational mission and enhance their significant role in American 
higher education. 
20 use 1132C-1. 
*%£€. 722. DEFINITIONS. 
"For the purposes of this part: 
"(1) The term 'eUgible institution' means a *part B institution' 
as that term is defined in section 322(2) of the Higher Education 
Act of 1965 (20 U.S.C. 1061(2)). 
"(2) The term losin' means a loan made to an eligible institu-
tion imder the provisions of this part and pursuant to an 
agreement with the Secretary. 
**(3) The term 'qualified bond' means any obligation issued 
by the designated bonding authority at the direction of the 
Secretary, the net proceeds of which are loaned to an eUgible 
institution for the purposes described in section 723(b). 
"(4) The term funding' means any pa3nnent under this part 
from the Secretary to the ehgible institution or its assignee 
in fulfillment of the insurance obligations of the Secretary 
pursuant to an agreement imder section 723. 
"(5) The term 'capital project' means, subject to section 724(b) 
the repair, renovation, or, in exceptional circimistances, the 
construction or acquisition, o
f
— 
*
*
(
A
) any classroom facility, library, laboratory facility, 
dormitory (including dining facilities) or other facility cus-
tomarily used by colleges and imiversities for instructional 
or research purposes or for housing students, faculty, and 
staff; 
"(B) instructional equipment, research instrumentation, 
and any capital equipment or fixture related to facilities 
described in subparagraph (A); 
"(C) any other facility, equipment or fixture which is 
essential to the mcdntaining of accreditation of the member 
institution by a nationally recognized accrediting agency 
or association; and 
"(D) any real property or interest therein imderlying 
facilities described in subparagraph (A) or (C). 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 743 
"(6) The term 'interest' includes accredited value or any other 
pajrment constituting interest on an obligation. 
"(7) The term 'outstanding*, when used with respect to bonds, 
shall not include bonds the payment of which shall have been 
provided for by the irrevocable deposit in trust of obligations 
maturing as to principal and interest in such amounts and 
at such times as will ensure the availability of sufficient moneys '> 
to make pa3maents on such bonds. 
"(8) The term 'designated bonding authority* means the pri-
vate, for-profit corporation selected by the Secretary pursuant 
to section 725(1) for the purpose of issuing taxable construction 
bonds in furtherance of the purposes of this part. 
"(9) The term 'Advisory Board' means the Advisory Board 
established by section 727 of this part. 
"SEC. 
723. 
FEDERAL 
INSURANCE 
FOR 
BONDS. 
20 
USC 
1
1
3
2
c
-
2
. 
"(a) GENERAL RULE.—Subject to the limitations in section 724, 
the Secretary is authorized to enter into insurance agreements 
to provide fuiancial insurance to guarantee the full pa3rment of 
principal and interest on qualified bonds upon the conditions set 
forth in subsections (b), (c) and (d). 
"(b) RESPONSIBILITIES OF THE DESIGNATED BONDING AUTHORITY.— 
The Secretary may not enter into an insurance agreement described 
in subsection (a) imless the Secretary designates a qualified bonding 
authority in accordance with sections 725(1) and 726 and the des-
ignated bonding authority agrees in such agreement to— 
"(1) use the proceeds of the qualified bonds, less costs of 
issuance not to exceed 2 percent of the principal amount thereof, 
to make loans to eligible institutions or for deposit into an 
escrow account for repayment of the bonds; 
"(2) provide in each loan agreement with respect to a loan 
that not less than 95 percent of the proceeds of the loan 
will be used— 
"(A) to finance the repair, renovation, and, in exceptional 
cases, construction or acquisition, of a capitsJ project; or 
"(B) to refinance an obligation the proceeds of which 
were used to finance the repair, renovation, and, in excep-
tional cases, construction or acquisition, of a capital project; 
"(3)(A) charge such interest on loans, and provide for such 
a schedule of repayments of loans, as will, upon the timely 
repayment of the loans, provide adequate and timely funds 
for the payment of principal and interest on the bonds; and 
"(B) require that any payment on a loan expected to be 
necessary to make a pa5rment of principal and interest on 
the bonds be due not less than 60 days prior to the date 
of the payment on the bonds for which such loan payment 
is expected to be needed; 
"(4) prior to the making of any loan, provide for a credit 
review of the institution receiving the loan and assure the 
Secretary that, on the basis of such credit review, it is reason-
able to anticipate that the institution receiving the loan will 
be able to repay the loan in a timely manner pursuant to 
the terms thereof; 
"(5) provide in each loan agreement with respect to a loan 
that, if a delinquency on such loan results in a funding xinder 
the insurance agreement, the institution obligated on such loan 
106 STAT. 744 
PUBLIC LAW 102-325—JULY 23, 1992 
shall repay the Secretary, upon terms to be determined by 
the Secretary, for such funding; 
"(6) assign any loans to the Secretary, upon the demand 
of the Secretary, if a delinquency on such loan has required 
a funding under the insurance agreement; 
"(7) in the event of a delinquency on a loan, engage in 
such collection efforts as the Secretary shall require for a period 
of not less than 45 days prior to requesting a funding under 
the insurance agreement; 
"(8) establish an escrow account— 
"(A) into which each eligible institution shall deposit 
10 percent of the proceeds of any loan made under this 
part; and 
*'(B) the balance of which— 
"(i) shall be available to the Secretary to pay prin-
cipgd and interest on the bonds in the event of delin-
quency in loan repayment; £ind 
"(ii) when all bonds under this psirt are retired or 
canceled, shall be divided among the eUgible institu-
tions making deposits into such account on the basis 
of the amount of each such institution's deposit; 
"(9) provide in each loan agreement with respect to a loan 
that, if a delinquency on such loan results in amounts being 
withdrawn from the escrow account to pay principal and 
interest on bonds, subsequent pajrments on such loan shall 
be available to replenish such escrow account; 
"(10) comply with the limitations set forth in section 724 
of this part; and 
"(11) make loans only to eUgible institutions under this part 
in accordance with regulations prescribed by the Secretary 
to ensure that loans are fairly allocated among as many eligible 
institutions as possible, consistent with making loans of 
amounts that will permit capital projects of sufficient size and 
scope to significantly contribute to the educational program 
of the eligible institutions. 
"(c) ADDITIONAL AGREEMENT PROVISIONS.—^Any insurance agree-
ment described in subsection (a) of this section shall provide as 
follows: 
"(1) The pajnnent of principal and interest on bonds shsill 
be insured by the Secretary until such time as such bonds 
have been retired or canceled. 
"(2) The Federal liability for delinquencies and default for 
bonds guaranteed under this part shall only become effective 
upon the exhaustion of all the funds held in the escrow accoxmt 
described in subsection (b)(8). 
"(3) The Secretary shall create a letter of credit authorizing 
the Department of the Treasury to disburse funds to the des-
ignated bonding authority or its assignee. 
"(4) The letter of credit shall be drawn upon in the amount 
determined by paragraph (5) of this subsection upon the cer-
tification of tne designated bonding authority to the Secretary 
or the Secretar^s designee that there is a delinquency on 
1 or more loans and there are insufficient funds available 
from lo£ui repajrments and the escrow accoimt to make a sched-
uled payment of principal and interest on the bonds. 
"(5) Upon receipt by the Secretary or the Secretary's desi^ee 
of the certification described in paragraph (4) of this subsection. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 745 
the designated bonding authority may draw a funding under 
the letter of credit in an amount equal to— 
"(A) the amount required to make the next scheduled 
pajonent of principal and interest on the bonds, less 
*
*
(
B
) the amount available to the designated bonding 
autiiority from loan repayments and the escrow accoimt. 
"(6) All funds provided imder the letter of credit shall be 
paid to tiie designated bonding authority within 2 business 
days following receipt of the certification described in paragraph 
(4). 
"(d) FULL FAITH AND CREDIT PROVISIONS.—Subject to section 
723(cXl) the full faith and credit of the United States is pledged 
to tile pajmaent of all funds which may be required to be paid 
under the provisions of this section. 
'^EC. 724. LIMITATIONS ON FEDERAL INSURANCE FOR BONDS ISSUED 
BY THE DESIGNATED BONDING AUTHORITY. 
"(a) LIMIT ON AMOUNT.—^At no time shall the aggregate principal 
amount of outstanding bonds insured imder this part together with 
anjr accrued unpaid interest thereon exceed $375,000,000, of 
which— 
"(1) not more than $250,000,000 shall be used for loans 
to eligible institutions that are private historically Black col-
leges and universities; and 
^'(2) not more than $125,000,000 shall be used for loans 
to eligible institutions which are historically Black public col-
leges and universities. 
For purposes of paragraphs (1) and (2), Lincoln University of Penn-
sylvania is an historically Black public institution. No mstitution 
of higher education that has received assistance under section 8 
of the Act of March 2, 1867 (20 U.S.C. 123) shall be eligible 
to receive assistance under this part. 
"(b) LIMITATION ON CREDIT AUTHORITY.—The authority of the 
Secretary to issue letters of credit and insurance imder this part 
is effective only to the extent provided in advance by appropriations 
Acts. 
"(c) RELIGIOUS ACTIVITY PROHIBITION.—NO loan may be made 
under this part for any educational program, activity or service 
related to sectarian instruction or religious worship or provided 
by a school or department of divinity or to an institution in which 
a substantial portion of its functions is subsumed in a religious 
mission. 
"(d) DISCRIMINATION PROHIBITION.—NO loan may be made to an 
institution under this part if the institution discriminates on 
account of race, color, rehgion, national origin, sex (to the extent 
provided in title IX of the Education Amendments of 1972), or 
disabling condition; except that the prohibition with respect to 
rehgion shall not apply to an institution which is controlled by 
or which is closely identified with the tenets of a particular rehgious 
organization if the application of this section would not be consistent 
with the rehgious tenets of such organization. 
«SEC. 725. AUTHORITY OF THE SECRETARY. 
"In the performance of, and with respect to, the functions vested 
in the Secretary by this part, the Secretary— 
"(1) shall, within 120 days of enactment of the Higher Edu-
cation Amendments of 1992, pubUsh in the Federal Register 
a notice and request for proposals for any private for-profit 
20 u s e 1132C-3. 
Lincoln 
University. 
20 u s e 1132C-4. 
Federal 
Register, 
publication. 
106 STAT. 746 
PUBLIC LAW 102-325—JULY 23, 1992 
organization or entity wishing to serve as the designated bond-
ing authority under this part, which notice shaU— 
"(A) specify the time and manner for submission of pro-
posals; and 
"(B) specify any information, (Qualifications, criteria, or 
standards the Secretary determmes to be necessary to 
evEduate the financial capacity and administrative capabil-
ity of any applicant to carry out the responsibilities of 
the designated bonding authority imder this part; 
"(2) may sue and be sued in any court of record of a State 
having general jurisdiction or in £iny district court of the United 
States, and such district courts shall have jurisdiction of civil 
actions arising under this part without regard to the amount 
in controversy, and any action instituted under this part with-
j out regard to the amount in controversy, and any action 
instituted under this section by or against the Secretary shall 
survive notwithstanding any change in the person occupjdng 
the office of the Secretary or any vacancy in such office; 
"(3)(A) may foreclose on Einy property and bid for and pur-
chase at any foreclosure, or any other sale, any property in 
connection with which the Secretary has been assigned a loan 
" 
pursuant to this part; and 
"(B) in the event of such an acquisition, notwithstanding 
any other provisions of law relating to the acquisition, handling, 
or disposal of real property by me United States, complete, 
administer, remodel and convert, dispose of, lease, and other-
wise deal with, such property, except that— 
"(i) such action shall not preclude any other action by 
the Secretary to recover any deficiency in the amount of 
a loan assigned to the Secretary; and 
"(ii) any such acquisition of real property shall not 
deprive any State or political subdivision thereof of its 
civil or criminal jurisdiction in and over such property 
or impair the civil rights under the State or local laws 
of the inhabitants on such property; 
"(4) may sell, exchange, or lease real or personsd property 
and securities or obUgations; and 
"(5) may include in any contract such other covenants, condi-
tions, or provisions necessary to ensure that the purposes of 
this part will be achieved. 
20 u s e 1132C-5. 
"SEC. 726. PROHIBITION. 
"No institution that receives a loan under this part shall also 
receive a grant under part A of this title or a loan under part 
D of this title. 
20 u s e 1132C-6. 
''SEC. 727. HBCU CAPITAL FINANCING ADVISORY BOARD. 
"(a) ESTABLISHMENT AND PURPOSE.—There is estabUshed within 
the Department of Education, the Historically Black College and 
Universities Capital Financing Advisory Board (hereinaftier in this 
part referred to as the 'Advisory Board') which shall provide advice 
and counsel to the Secretary and the designated bonding authority 
as to the most effective and efficient means of implementing con-
struction financing on African American college campuses, and 
advise the Congress of the United States regarding the progress 
made in implementing this part. The Advisory Board shall meet 
with the Secretary at least twice each year to advise him as to 
the capital needs of historically Black colleges and universities. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 747 
how those needs can be met through the program authorized by 
tills part, and what additional steps might be taken to improve 
the operation and implementation of the construction finsuicing 
program. 
"(b) BOARD MEMBERSHIP.— 
"(1) COMPOSITION.—The Advisory Board shall be appointed 
by the Secretary and shall be composed of 9 members as follows: 
"(A) The Secretary or the Secretary's designee. 
"(B) Three members who are presidents of private histori-
cally Black colleges or universities. 
"(C) Two members who are presidents of public histori-
cally Black colleges or universities. 
"(D) The president of the United Negro College Fund, 
Inc. 
"(E) The president of the National Association for Equal 
Opportunity in Higher Education. 
(F) The executive director of the White House Initiative 
on historically Black colleges and imiversities. 
"(2) TERMS.—The term of office of each member appointed 
imder paragraphs (1)(B) and (1)(C) shall be 3 years, except 
that^ 
"(A) of the members first appointed pursuant to para-
graphs (1)(B) and (1)(C), 2 shall be appointed for terms 
of 1 year, and 3 shall be appointed for terms of 2 years; 
"(B) members appointed to fill a vacancy occinring before 
the expiration of a term of a member shedl be appointed 
to serve the remainder of that term; and 
"(C) a member may continue to serve after the expiration 
of a term until a successor is appointed. 
"(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $50,000 for fiscal year 1993 and each of the 
4 succeeding fiscal yesirs to carry out this section. 
«SEC. 728. MINORITY BUSINESS ENTERPRISE UTILIZATION. 
"In the performance of and with respect to the Secretary's effec-
tuation of his responsibilities imder section 725(1) and to the maxi-
mum extent feasible in the implementation of the purposes of 
this part, minority business persons, including bond underwriters 
and credit enhancers, bond counsel, marketers, accountants, 
advisors, construction contractors, and managers should be uti-
Hzed.". 
SEC. 705. CONSOLIDATION OF PARTS C AND F. 
Part C of title VII of the Act (20 U.S.C. 1132d et seq.) is amended 
to read as follows: 
"PART C—LOANS FOR CONSTRUCTION, RE-
CONSTRUCTION AND RENOVATION OF ACA-
DEMIC, 
HOUSING, 
AND 
OTHER 
EDU-
CATIONAL FACILITIES 
20 use 1132C-7. 
<^EC. 731. FEDERAL ASSISTANCE IN THE FORM OF LOANS. 
"(a) AUTHORITY AND CONDITIONS FOR LOANS.—TO assist institu-
tions of higher education and higher education building agencies 
in the construction, reconstruction, or renovation of housing, under-
graduate and graduate academic facilities, and other educational 
20 use 1132d. 
106 STAT. 748 
PUBLIC LAW 102-325—JULY 23, 1992 
facilities for students and faculties, the Secretary may msike loans 
of funds to such institutions for the construction, reconstruction, 
or renovation of such facilities. No such assistance shall be provided 
unless— 
''(1) the educational institution involved is imable to secure 
the necessary funds for the construction or purchase from other 
sources upon terms and conditions equally as favorable as 
the terms and conditions applicable to loans under this title; 
and 
"(2) the Secretary finds that any such construction will be 
undertaken in an economical manner, and that any such facili-
ties are not or will not be of elaborate or extravagant design 
or materials. 
"(b) AMOUNT AND CONDITIONS OF LOANS.—A loan to institutions 
of 
higher education or higher education building agency— 
"(1) may be in an amount not exceeding the total development 
cost of 
the faciUty, as determined by the Secretary; 
"(2) shall be secured in such manner and be repaid within 
such period, not exceeding 50 years, as may be determined 
by the Secretary; and 
"(3) shall bear interest at a rate determined by the Secretary 
which shall be not more than the lower of (A) 5.5 percent 
per annimi, or (B) the total of one-quarter of 1 percent per 
annum added to the rate of interest paid by the Secretary 
on funds obtEuned from the Secretary of the Treasury. 
"(c) USE OF LOANS FOR PREVIOUSLY MADE CONTRACTS.—Any 
institution of higher education or higher education building agency 
which, prior to October 17, 1986, had contracted for housing or 
other educational faciUties may, in connection therewith, receive 
loans authorized imder this part, as the Secretary may determine. 
No such loan shall be made for any housing or other educational 
facilities, the construction of which was begun prior to enactment 
of such date, or completed prior to the ming of an application 
under this part. 
"(d) MATCHING REQUIREMENT.—The Secretary shall not make 
a loan under this part imless the Institution of higher education 
or lugher education building agency receiving such loan provides 
from non-Federal sources at least 20 percent of the development 
cost of the project for which the loan is made. 
20 use 1132d-l. 
«SEC. 732. GENERAL PROVISIONS. 
"(a) BUDGET AND ACCOUNTING.—^In the performance of, and with 
respect to, the functions, powers, and duties under this part, the 
Secretary, notwithstsmding the provisions of any other law, shall— 
"(1) prepare annually and submit a budget program as pro-
vided for wholly owned Government corporations by chapter 
91 of title 31, United States Code; and 
Records. 
"(2) maintain a set of accounts which shall be audited by 
the Comptroller General in accordance with the provisions of 
chapter 35 of title 31, United States Code, but such financial 
transactions of the Secretary, as the making of loans and vouch-
ers approved by the Secretary, in connection with such financial 
transactions shall be final and conclusive upon all officers of 
the Government. 
"(b) USE OF FUNDS.—Fimds made available to the Secretary 
pursuant to the provisions of this part shaU be deposited in a 
checking account or accounts with the Treasurer of the United 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 749 
States. Receipts and assets obtained or held by the Secretary in 
connection with the performance of functions under this part, and 
all funds available for carrying out the functions of the Secretary 
under this part (including appropriations therefor, which are hereby 
authorized), shall be available, in such amounts as may from year 
to year be authorized by the Congress, for the administrative 
expenses of the Secretary in connection with the performance of 
such functions. 
"(c) LEGAL POWERS.—In the performance of, and with respect 
to, the functions, powers, and duties under this part, the Secretary, 
notwithstanding tiie provisions of any other law, may— 
"(1) prescribe such rules and regulations as may be necessary 
to carry out the purposes of this peul;; 
"(2) sue and be sued; 
"(3) foreclose on any property or commence any action to 
protect or enforce any right conferred upon the Secretary by 
any law, contract, or other agreement, and bid for and purchase 
at any foreclosure or any other sale any property in connection 
with which the Secretary has made a loan pursuant to this 
part; 
"(4) in the event of any such acquisition, notwithstanding 
any other provision of law relating to the acquisition, handling, 
or disposal of real property by the United States, complete, 
administer, remodel and convert, dispose of, lease, and other-
wise deal with, such property, but any such acquisition of 
real property shall not deprive any State or political subdivision 
thereof of its civil or criminal jurisdiction in and over such 
property or impair the civil rights imder the State or local 
laws of the inhabitants on such property; 
"(5) sell or exchange at public or private sale, or lease, real 
or personal property, and sell or exchange any securities or 
obligations, upon such terms as the Secretary may fix; 
"(6) obtain insurance ag£iinst loss in connection with property 
and other assets held; 
"(7) subject to the specific hmitations in this part, consent 
to the modification, with respect to the rate of interest, time 
of payment of any installment of principal or interest, security, 
or any other term of any contract or agreement to which the 
Secretary is a party or which has been transferred to the 
Secretary pursuant to this part, granting to a borrower of 
a loan made before October 1, 1992, the option of repaying 
the loan at a discount computed in accordance with subsection 
(d) if the repayment is (A) made from non-Federal sources, 
(B) not derived from proceeds of obligations the income of 
which is exempt from taxation under the Internal Revenue 
Code of 1986, and (C) made on a loan that has been outstanding 
for at least 5 years; and 
"(8) include in any contract or instrument made pursuant 
to this part such other covenants, conditions, or provisions 
as may be necessary to assure that the purposes of this part 
will be achieved. 
"(d) COMPUTATION OF ALLOWABLE DISCOUNTS.—The Secretary 
shall compute the discoimt which may be offered to a borrower 
as an inducement to early repayment under subsection (c)(7) in 
an amount determined by the Secretary to be in the best financial 
interests of the Government, taking into account the jdeld on out-
106 STAT. 750 
PUBLIC LAW 102-325—JULY 23, 1992 
standing marketable obligations of the United States having matu-
rities comparable to the remaining term of such loan. 
"(e) NONDISCRIMINATION BETWEEN BORROWERS IN OFFERING DIS-
COUNTED PREPAYMENT.— 
**(1) GENERAL RULE.—^If the Secretary offers a discount as 
an inducement to early repa3mient imder subsection (c)(7), such 
offer shall be available without regard to whether the borrower 
is delinquent or in default on the loan on or before October 
1, 1992, but the Secretary shall refuse to make such offer 
to a borrower that becomes delinquent or goes into default 
after that date. 
"(2) APPLICABILITY.—The discount offered shall apply, in the 
case of a borrower that compUes with paragraph (1), to the 
entire amount outstanding on the loan (mcluding any amount 
owed with respect to payments that are overdue). 
"(f) CONTRACTS FOR SUPPLIES OR SERVICES.—Section 3709 of the 
Revised Statutes shall not apply to any contract for services or 
suppUes on account of any property acquired pursuant to this 
part if the amoimt of such contract does not exceed $1,000. 
"(g) 
APPLICABILITY OF GOVERNMENT CORPORATION CONTROL 
ACT.—^The provisions of section 9107(a) of title 31, United States 
Code, which are applicable to corporations or agencies subject to 
. chapter 91 of such title, shall also be appUcable to the activities 
of the Secretary under this part. 
"(h) WAGE RATES.—^The Secretary shall take such action as may 
be necessary to ensure that all laborers and mechanics employed 
by contractors or subcontractors on any project assisted under this 
part— 
"(1) shall be pedd wages at rates not less than those prevailing 
on the same tjrpe of work on similar construction in the imme-
diate locality as determined by the Secretary of Labor in accord-
ance with the Act of March 3, 1931 (Davis-Bacon Act), as 
amended; and 
"(2) shall be employed not more than 40 hours in any one 
week imless the employee receives wages for the employee's 
employment in excess of the hours specified above at a rate 
not less than one and one-half times tlie regular rate at which 
the employee is employed, 
but the Secretary may waive the appUcation of this subsection 
in cases or classes of cases where laborers or mechanics, not other-
wise employed at any time in the construction of such project, 
voluntarily donate their services without full compensation for the 
purpose of lowering the costs of construction and the Secretary 
determines that any amounts saved thereby are fully credited to 
the educational institution undertaking the construction. 
"(i) LIMITATION.—No loan may be made under this part for any 
facility on the c£unpus of any postsecondary educational institution 
until 5 years after the date on which a previous loan for another 
facility on such campus WEIS made unaer this part, unless the 
loan is intended to be used to construct or reconstruct a facility 
damaged as a result of a national disaster, as declared by the 
President. 
20 use 1132d-2. 
"SEC. 733. APPORTIONMENT. 
"(a) LIMITATION.—^Not more than 12.5 percent of the amount 
of the funds provided for in this part in the form of loans shall 
be made available to educational institutions within any one State. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 751 
"(b) PRIORITIES.—In awarding loans under this part, the Secretary 
shall give priority— 
"(1) to loans for renovation or reconstruction of undergraduate 
and graduate academic facilities; and 
"(2) to loans for renovation or reconstruction of older under-
graduate and graduate academic facilities that have gone with-
out major renovation or reconstruction for an extended period. 
**SEC. 734. DEFmrnONS. 
20 use 1132d-3. 
"For the purpose of this part: 
"(a) HOUSING.—^The term 'housing' means— 
"(1) new or existing structures suitable for dwelling use, 
including single-room dormitories and apartments; and 
"(2) dwelling facilities provided for rehabilitation, alteration, 
conversion, or improvement of existing structures which are 
otherwise inadequate for the proposed dwelling use. 
"(b) EDUCATIONAL INSTITUTION.—The term 'institution of higher 
education or higher education building agency means— 
"(1)(A) any educational institution which offers, or provides 
satisfactory assurance to the Secretary that it will offer within 
a reasonable time after completion of a facility for which assist-
ance is requested imder tlus part, at least a 2-year program 
acceptable for faU credit toward a baccalaureate degree (includ- 
/ 
ing any public educational institution, or any private edu-
cational institution no part of the net earnings of which inures 
to the benefit of any private shareholder or individual); or 
"(B) any public educational institution which— 
"(i) is administered by a college or university which is 
accredited by a nationally recognized accrediting agency 
or association; 
"(ii) offers technical or vocational instruction; and 
"(iii) provides residential faciUties for some or all of the 
students receiving such instruction; 
"(2) any hospital operating a school of nursing beyond the 
level of high school approved by the appropriate State authority, 
or any hospital approved for internships, by recognized author-
ity, if such hospital is either a pubUc hospital or a private 
hospital, no part of the net earnings of which inures to the 
benefit of any private shareholder or individual; 
"(3) any corporation (no part of the net earnings of which 
inures to the benefit of any private shareholder or individual)— 
"(A) established for the sole purpose of providing housing 
or other educational facilities for students or students and 
faculty of one or more institutions included in paragraph 
(1) without regard to their membership in or affiliation 
with any social, fi*atemal, or honorary society or organiza-
tion; and 
"(B) upon dissolution of which all title to any property 
purchased or built from the proceeds of any loan which 
is made under section 731 (as such section was in effect 
prior to the date of enactment of the Higher Education 
Amendments of 1992), will pass to such institution (or 
to any one or more of such institutions) unless it is shown 
to the satisfaction of the Secretary that such property 
or the proceeds fi*om its sale wiU be used for some other 
nonprofit educational purpose; 
106 STAT. 752 
PUBLIC LAW 102-325—JULY 23, 1992 
"(4) any agency, public authority, or other instrumentality 
of any State, established for the purpose of providing or financ-
ing housing or other educational facilities for students or faculty 
of any educational institution included in paragraph (1), but 
nothing in this paragraph shall require an institution included 
in paragraph (1) to obtain loans or grants through any 
instrumentality included in this paragraph; and 
"(5) any nonprofit student housing cooperative corporation 
established for the purpose of providfing housing for students 
or students and faculty of any institution included in paragraph 
(1). 
In the case of any loan made under section 731 (as such section 
was in effect prior to the date of enactment of the Higher Education 
Amendments of 1992) to a corporation described in paragraph (3) 
which was not established by the institution or institutions for 
whose students or students and faculty it would provide housing, 
or to a student housing cooperative corporation described in para-
graph (5), and in the case of any loan which is obtained from 
other sources by such a corporation, the Secretary shall require 
that the note securing such loan be cosigned by such institution 
(or by any one or more of such institutions). Where the law of 
any State in effect on the date of enactment of the Housing Act 
of 1964 prevents the institution or institutions, for whose students 
or students and faculty housing is to be provided, from cosigning 
the note, the Secretary shall require the corporation and the pro-
posed prmect to be approved by such institution (or by any one 
or more of such institutions) in lieu of such cosigning. 
"(c) U^fDERGRADUATE AND GRADUATE ACADEMIC FACILITIES.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), the 
term 'imdergraduate and graduate academic facilities' means 
structures suitable for use as classrooms, laboratories, libraries, 
and related facilities, the primary purpose of which is the 
instruction of students pursuing at least a 2-ye£ir program 
acceptable for full credit toward a baccalaureate degree, or 
for administration of the educational programs serving such 
students, of an institution of higher education, and mainte-
nance, storage, or utility facilities essential to operation of 
the foregoing facilities, as well as infirmaries or other facilities 
designed to provide primarily for outpatient care of student 
and instructional personnel. Plans for such facilities shall be 
in compliance with such standards as the Secretary may pre-
scribe or approve in order to ensure that projects assisted 
with the use of Federal funds under this part shall be, to 
the extent appropriate in view of the uses to be made of 
the facilities, accessible to and usable by individuals with dis-
abilities. 
"(2) EXCEPTIONS.—^The term 'undergraduate and graduate 
academic facilities' shall not include (A) any facility intended 
primarily for events for which admission is to be charged to 
the general public, (B) any gymnasium or other facility specially 
designed for athletic or recreational activities, other than for 
an academic course in physical education or where the Sec-
retary finds that the physical integration of such facilities with 
other imdergraduate academic faciUties included under this 
part is required to carry out the objectives of this part, (C) 
any facility used or to be used for sectarian instruction or 
as a place for religious worship, or (D) any facility which 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 753 
(although not a facility described in the preceding clause) is 
used or to be used primarily in connection with any part of 
the program of a school or department of divinity. 
"(d) DEVELOPMENT COST.—The term 'development cost' means 
costs of the construction of the housing or other educational facilities 
and the land on which it is located, including necessary site 
improvements to permit its use for housing, academic facilities, 
or other educational facilities, except that in the case of the pur-
chase of faciUties such term means the cost as approved by the 
Secretary. 
"(e) FACULTIES.—The term 'faculties' means members of the fac-
ulty and their families. 
"(f) OTHER EDUCATIONAL FACILITIES.—The term 'other edu-
cational faciUties' means (1) new or existing structures suitable 
for use as cafeterias or dining halls, student centers or student 
unions, infirmaries or other inpatient or outpatient health facilities, 
or for other essential service facihties, and (2) structures suitable 
for the above uses provided by rehabilitation, alteration, conversion, 
or improvement of existing structures which are otherwise inad-
equate for such uses. 
"SEC. 735. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part, 
$50,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years.". 
SEC. 706. REPEAL OF PARTS D, F, G, AND J. 
Parts D, F, G, and J of title VII of the Act (20 U.S.C. 1132e 
et seq., 1132g et seq., 1132h-l et seq., 1132j et seq., respectively) 
are repealed. 
SEC. 707. REDESIGNATION OF AND AMENDMENTS TO PART E. 
(a) REDESIGNATION.—Part E of title VII of the Act (20 U.S.C. 
1132f et seq.) is redesignated as part D. 
(b) AUTHORITY TO PROVIDE DIRECT INSURANCE TO HIGHER RATED 
INSTITUTIONS.—Section 752(c) of the Act (20 U.S.C. 1132f-l(c)) is 
amended by adding at the end the following new paragraph: 
"(5) Notwithstanding paragraph (1), the Corporation may 
issue primary insurance or guarantees covering the assets or 
obligations of institutions which are, without insurance or 
guarantee, listed by a nationally recognized statistical rating 
organization at or above the third highest rating of such 
organization, subject to all of the following conditions and Um-
itations: 
"(A) The proposed transaction shall have been declined 
for coverage by all unaffiliated monoline insurers that are 
authorized to write financial guarantee insurance and that, 
in the previous yesir, provided primary insurance or guaran-
tees on educational faciHty obligations. The Secretary shall 
publish by January 31 of each year a Ust of all such 
insurers. 
"(B) Within 2 business days of receiving complete docu-
mentation concerning a proposed transaction by an institu-
tion seeking insurance firom the Corporation pursuant to 
this paragraph (5), an insurer shaU offer to provide cov-
erage or execute an affidavit of declination, or its failure 
to respond shall be deemed a declination. The institution 
seeking insurance 
fi*om 
the Corporation shall file with the 
20 u s e 1132d-4. 
20 u s e 1132h 
et seq. 
106 STAT. 754 
PUBLIC LAW 102-325—JULY 23, 1992 
Corporation the affidavits from all declining insurers, as 
well as an affidavit of the institution's financial advisor 
specifically identifying the pertinent terms of the proposed 
transaction, the requested insurance coverage, and the date 
on which complete documentation concerning the proposed 
transaction was submitted to each insurer and certifying 
that such information was provided to each insurer that 
declined coverage. 
"(C) The proceeds of the assets or obligations insured 
or guaranteed by the Corporation pursuant to this para-
graph shall be used exclusively for the renovation, repair, 
replacement, or construction of academic and educational 
:' 
facilities and shall not be used for the renovation, repair, 
replacement, or construction of athletic facilities. 
(D) The aggregate par value of assets and obligations 
insured or guaranteed by the Corporation under this para-
graph (5) shall not exceed— 
"(i) $100,000,000 per year during calendar years 
1993,1994, and 1995; or 
"(ii) $150,000,000 per year during calendar years 
1996 and 1997. 
"(E) The aggregate dollar amount of transactions under 
this paragraph (5) shall not exceed— 
"(i) in calendar year 1993, 1994, or 1995, 10 percent 
of the aggregate dollar amoimt of assets and obliga-
tions directly covered by primary insurance or guaran-
tees issued by the Corporation under this section in 
such year; or 
"(ii) in calendar year 1996 or 1997, 15 percent of 
the aggregate dollar amount of assets and obUgations 
directly covered by primary insursince or guarantees 
issued by the Corporation under this section in such 
year". 
SEC. 708. REDESIGNATION OF AND AMENDMENTS TO PART H. 
(a) REDESIGNATION.—Part H of title VII of the Act (20 U.S.C. 
11321 et seq.) is redesignated as part E. 
(b) RECOVERY OF PAYMENTS.—Section 781 of the Act (20 U.S.C. 
11321) is amended by striking "part A or B of this title" each 
place such term appears and inserting "part A of this title, or 
part B of this title as such part was in effect prior to the enactment 
of the Higher Education Amendments of 1992, . 
(c) ELIMINATION OF UNNECESSARY DEFINITIONS.—Section 782 of 
20 use ii32i-i. 
the Act (20 U.S.C. 1089) is amended— 
(1) by striking paragraphs (5) and (7); and 
(2) by redesignating paragraphs (6), (8), and (9) as paragraph 
(5), (6), and (7), respectively. 
(d) FORGIVENESS OF CERTAIN LOANS.—Section 783 of the 
Act 
(20 U.S.C. 1132i-2) is amended to read as follows: 
"FORGIVENESS OF CERTAIN LOANS 
"SEC. 783. (a) FORGIVENESS AUTHORIZED.—The Secretary may 
forgive the entire balance due, or any portion thereof, on any 
loan made under part C or part F of this title (as in effect on 
the day before the date of enactment of the Higher Education 
Amendments of 1992), or under the College Housing and Academic 
Facilities Loan program, or any other federally subsidized, insured, 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 755 
or authorized loan program designed to assist institutions of higher 
education to construct academic or dormitory facilities, whenever 
the Secretary determines that— 
"(1) the institution of higher education is current in its pay-
ments to the Department or has entered into a moratorium 
agreement with the Secretary with respect to such pajmaents; 
and 
"(2) the outstanding indebtedness equals at least one-quarter 
of the annual budget for the most recent fiscal year of the 
institution of higher education seeking forgiveness of its hous-
ing loan indebtedness, exclusive of funds provided under titles 
III and rv of this Act, and in the judgment of the Secretary 
the survival of the institution of higher education is threatened. 
"(b) DEFINITION.—For the purpose of this section the term'institu-
tion of higher education' mcludes a postsecondary educational 
institution. 
"(c) APPLICATION.—Each institution of higher education req^uest-
ing forgiveness of any loan under this section shall submit an 
application to the Secretary at such time, in such manner and 
containing or accompanied by such information, as the Secretary 
may reasonably require.". 
TITLE VIII—COOPERATIVE EDUCATION 
SEC. 801. COOPERATIVE EDUCATION. 
Title VIII of the Act (20 U.S.C. 1133 et seq.) is amended to 
read as foUows: 
^TITLE VIII—COOPERATIVE EDUCATION 
"SEC. 801. STATEMENT OF PURPOSE; DEFINmON. 
20 USC 1133. 
"(a) PURPOSE.—It is the puipose of this title to award grants 
to institutions of higher education or combinations of such institu-
tions to encourage such institutions to develop and make available 
to as many of their students as possible work experience that 
will aid such students in future careers and will enable such stu-
dents to support themselves financially while in school. 
"(b) DEFINITION.—For the purpose of this title the term 'coopera-
tive education' means the provision of alternating or parallel periods 
of academic study and pubUc or private emplojnnent in order to 
, 
give students work experiences related to their academic or occupa-
tional objectives and an opportunity to eeim the funds necessary 
for continuing and completing their education. 
«SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS. 
20 USC 1133a. 
"(a) APPROPRIATIONS AUTHORIZED.—There are authorized to be 
appropriated to carry out this title $30,000,000 for fiscal year 1993 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years. 
"(b) RESERVATIONS.—Of the amounts appropriated in each fiscal 
year— 
"(1) not less than 50 percent shall be available for carrying 
out grants to institutions of higher education and combinations 
of such institutions described in section 803(a)(lXA) for coopera-
tive education under section 803; 
106 STAT. 756 
PUBLIC LAW 102-325—JULY 23, 1992 
"(2) not less than 25 percent shall be available for carrying 
out grants to institutions of higher education described in sec-
tion 803(a)(1)(B) for cooperative education under section 803; 
"(3) not to exceed 11 percent shall be available for dem-
onstration projects under paragraph (1) of section 804(a); 
"(4) not to exceed 11 percent shall be available for training 
and resource centers under paragraph (2) of section 804(a); 
and 
"(5) not to exceed 3 percent shall be available for research 
under paragraph (3) of section 804(a). 
"(c) AVAILABILITY OF APPROPRIATIONS.—Appropriations under this 
title shall not be available for the payment of compensation of 
students for employment by employers imder arrangements pursu-
£int to this title. 
20 use 1133b. 
"SEC. 803. GRANTS FOR COOPERATIVE EDUCATION. 
"(a) GRANTS AUTHORIZED.— 
"(1) IN GENERAL.—^The Secretary is authorized— 
"(A) from the amount available imder section 802(b)(1) 
in each fiscal year and in accordance with the provisions 
of this title, to make grants to institutions of higher edu-
cation or combinations of such institutions that have not 
received a grant under this paragraph in the 10-year period 
preceding the date for which a grant under this section 
is requested to pay the Federal share of the cost of plan-
ning, establishing, expanding, or canying out programs 
of cooperative education by such institutions or com-
binations of institutions; and 
"(B) from the amoxmt available under section 802(b)(2) 
in each fiscal year and in accordance with the provisions 
of this title, to make grants to institutions of higher edu-
cation that are operating an existing cooperative education 
program as determined by the Secretary to pay the cost 
of planning, establishing, expanding, or canying out pro-
grams of cooperative education by such institutions. 
"(2) PROGRAM REQUIREMENT.—Cooperative education pro-
grams assisted imder this section shall provide alternating 
or parallel periods of academic study and of public or private 
emplo5rment, giving students work experience related to their 
academic or occupational objectives and the opportunity to earn 
the funds necessary for continuing and completing their edu-
cation. 
"(3) AMOUNT OF GRANTS.—(A) The amount of each grant 
awarded pursuant to paragraph (1)(A) to any institution of 
higher education or combination of such institutions in any 
fiscal year shall not exceed $500,000. 
"(B)(i) Except as provided in clauses (ii) and (iii), the Sec-
retary shall award grants in each fiscal year to each institution 
of higher education described in paragraph (1)(B) that has 
an application approved under subsection (b) in an amount 
which bears the same ratio to the amount reserved pursuant 
to section 802(b)(2) for such fiscal year as the number of 
unduplicated students placed in cooperative education jobs dur-
ing the preceding fiscal year (other than cooperative education 
jobs imder section 804 and as determined by the Secretary) 
by such institution of higher education bears to the total num-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 757 
ber of all such students placed in such jobs during the preceding 
fiscal year by all such institutions. 
"(ii) No institution of higher education shall receive a grant 
pursuant to paragraph (1)(B) in any fiscal year in an amount 
wluch exceeds 25 percent of such institution's cooperative edu-
cation program's personnel and operating budget for the preced-
ing fiscal year. 
(iii) The minimum annual grant amoimt which an institution 
of higher education is eUgible to receive imder paragraph (1)(B) 
is $1,000 and the maximum annual grant amount is $75,000. 
"(4) LIMITATION.—^The Secretarv shall not award ^ants pur-
suant to paragraphs (1)(A) and (IXB) to the same institution 
of higher education or combination of such institution in any 
one fiscal year. 
"(5) USES.—Grants under paragraph (1)(B) shall be used 
exclusively— 
"(A) to expand the quality and participation of a coopera-
tive education program; 
"(B) for outreach in new curricular areas; and 
"(C) for outreach to potential participants including 
underrepresented and nontraditional populations. 
"(b) APPLICATIONS.—Each institution of higher education or com-
bination of such institutions desiring to receive a grant under 
this section shall submit an application to the Secretary at such 
time and in such manner as the Secretary shall prescribe. Each 
such appUcation shall— 
"(1) set forth the program or activities for which a grant 
is authorized under this section; 
"(2) specify each portion of such program or activities which 
will be performed oy a nonprofit organization or institution 
other than the applicant and the compensation to be paid 
for such performance; 
"(3) provide that the appHcant will expend during such fiscal 
year for the purpose of such program or activities not less 
tiian the amount expended for such piupose during the previous 
fiscal year; 
"(4) describe the plans which the applicant will carry out 
to assure, and contain a formal statement of the institution's 
commitment which assures, that the applicant will continue 
the cooperative education program beyond the 5-year period 
of Federal assistance described in subsection (c)(1) at a level 
which is not less than the total amoimt expended for such 
program during the first year such program was assisted under 
this section; 
"(5) provide that, in the case of an institution of higher 
education that provides a 2-year program which is acceptable 
for full credit toward a bachelor's degree, the cooperative edu-
cation program will be available to students who are certificate 
or associate degree candidates and who carry at least one-
half the normal mil-time academic workload; 
"(6) provide that the applicant will— 
"(A) make such reports as may be essential to ensure Reports, 
that the appUcant is compl3dng with the provisions of tiiis 
section, including the reports for the second and each suc-
ceeding fiscal year for which the appUcant receives a grant 
data with respect to the impact of the cooperative education 
program in the previous fiscal year, inclumng— 
106 STAT. 758 
PUBLIC LAW 102-325—JULY 23, 1992 
Records. 
Handicapped. 
Minorities. 
"(i) the number of undupKcated student applicants 
in the cooperative education program; 
"(ii) the number of undupUcated students placed in 
cooperative education jobs; 
"(iii) the number of employers who have hired 
cooperative education students; 
"(iv) the income for students derived from working 
in cooperative education jobs; and 
"(v) the increase or decrease in the number of 
unduplicated students placed in cooperative education 
jobs in each fiscal year compared to the previous fiscal 
year; and 
"(B) keep such records as are essential to ensure that 
the applicant is complying with the provisions of this title, 
including the notation of cooperative education emplo3rment 
on the student's transcript; 
"(7) describe the extent to which programs in the academic 
discipline for which the application is made have had a favor-
able reception by public and private sector employers; 
"(8) describe the extent to which the institution is committed 
to extending cooperative education on an institution-wide basis 
for all students who can benefit; 
"(9) describe the plans that the appHcant will carry out 
to evaluate the applicant's cooperative education program at 
the end of the grant period; 
"(10) provide for such fiscal control and fund accounting 
procedures as may be necessary to assure proper disbursement 
of, and accounting for. Federal funds paid to the appHcant 
under this title; 
"(11) demonstrate a commitment to serving special popu-
lations such as women, individuals with disabilities, and Afii-
can American, Mexican-American, Puerto Rican, Cuban, other 
Hispanic, American Indian, Alaska Native, Aleut, Native 
Hawaiian, 
American 
Samoem, Micronesian, 
Guamanian 
(Chamorro), and Northern Marianian students; and 
"(12) include such other information as is essential to carry 
out the provisions of this title. 
"(c) DURATION OF GRANTS; FEDERAL SHARE.— 
"(1) DURATION OF GRANTS.—No individual institution of 
higher education may receive, individually or as a participant 
in a combination of such institutions— 
"(A) a grant pursuant to subsection (a)(1)(A) for more 
than 5 fiscal years; or 
"(B) a grant pursuant to subsection (a)(1)(B) for more 
than 5 fiscal years. 
"(2) FEDERAL SHARE.—The Federal share of a grant under 
section 803(a)(1)(A) may not exceed— 
"(A) 85 percent of the cost of carrying out the program 
or activities described in the application in the first year 
the apphcant receives a grant xmder this section; 
"(B) 70 percent of such cost in the second such year; 
"(C) 55 percent of such cost in the third such year; 
"(D) 40 percent of such cost in the fourth such year; 
and 
"(E) 25 percent of such cost in the fifth such year. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 759 
"(3) SPECIAL RULE.—Any provision of law to the contrary 
notwithstandiag, the Secretary shall not waive the provisions 
of this subsection. 
"(d) MAINTENANCE OF EFFORT.—If the Secretary determines that 
a recipient of funds under this section has failed to maintain the 
fiscal effort described in subsection (b)(3), then the Secretary may 
elect not to make grant payments under tiiis section to such recipi-
ent. 
"(e) FACTORS FOR SPECIAL CONSIDERATION OF APPLICATIONS.— 
"(1) IN GENERAL.—In approving applications under this sec-
tion, the Secretary shall give specisd consideration to appHca-
tions from institutions of higher education or combinations 
of such institutions for programs which show the greatest prom-
ise of success because o
f
— 
"(A) the extent to which programs in the academic dis-
cipline with respect to which the application is made have 
had a favorable reception by public and private sector 
employers; 
"(B) the strength of the commitment of the institution 
of higher education or combination of such institutions 
to cooperative education as demonstrated by the plans and 
formalized institutional commitment statement which such 
institution or combination has made to continue the pro-
gram after the termination of Federal financial assistance, 
"(C) the extent to which the institution or combination 
is committed to extending cooperative education for all 
students who can benefit, and 
"(D) such other factors as are consistent with the pur-
poses of this section. 
"(2) ADDITIONAL SPECIAL CONSIDERATION.—The Secretary Women, 
shall also give special consideration to appHcations from institu- 
5 £ a ^ « 8 ^ 
tions of higher education or combinations of such institutions 
"^ " ^ • 
which demonstrate a commitment to serving special populations 
such as women, individuals with disabihties, and African Amer-
ican, Mexican American, Puerto Rican, Cuban, other Hispanic, 
American Indian, Alaska Native, Aleut, Native Hawaiian, 
American Samoan, Micronesian, Guamanian (Chamorro), and 
Northern Mariana students. 
'^EC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING 20 USC 1133c. 
AND RESOURCE CENTERS; AND RESEARCH. 
"(a) AUTHORIZATION.—^The Secretary is authorized, in accordance 
with the provisions of this section, to make grants and enter into 
contracts for— 
"(1) tiie conduct of demonstration projects designed to dem-
onstrate or determine the feasibility or value of innovative 
methods of cooperative education from the amounts available 
in each fiscal year imder section 802(b)(3); 
"(2) the conduct of training and resource centers designed 
to— 
"(A) train personnel in the field of cooperative education; 
"(B) improve materials used in cooperative education pro-
grams if such improvement is conducted in conjunction 
with other activities described in this paragraph; 
"(C) furnish technical assistance to institutions of higher 
education to increase the potential of the institution to 
106 STAT. 760 
PUBLIC LAW 102-325—JULY 23, 1992 
continue to conduct a cooperative education program with-
out Federal assistance; 
''(D) encourage model cooperative education programs 
which furnish education and training in occupations in 
which there is a national need; 
"(E) support partnerships under which an institution 
carrying out a comprehensive cooperative education pro-
gram joms with one or more institutions of higher education 
in order to (i) assist the institution other than the com-
prehensive cooperative education institution to develop and 
expand an existing program of cooperative education, or 
(ii) establish and improve or expand comprehensive 
cooperative education programs; and 
"(F) encourage model cooperative education programs in 
the fields of science and mathematics for women and 
minorities who are imderrepresented in such fields 
firom the amounts available in each fiscal year imder section 
802(b)(4); and 
"(3) the conduct of research relating to cooperative education, 
fi*om the amounts available in each fisced year under section 
802(b)(5). 
*
*
(
b
) ADMINISTRATIVE PROVISION.— 
"(1) IN GENERAL.—^To carry out this section, the Secretary 
may— 
"(A) make grants to or contracts with institutions of 
higher education, or combinations of such institutions; and 
(B) make grants to or contracts with other public or 
private nonprofit agencies or organizations, whenever such 
grants or contracts will make an especially significant con-
tribution to attaining the objectives of this section. 
"(2) LIMITATION.—(A) The Secretary may not use more than 
3 percent of the amount appropriated to carry out this section 
in each fiscal year to enter into contracts described in paragraph 
(IXA). 
"(B) The Secretary may use not more than 3 percent of 
the amount appropriated to carry out this section in each 
fiscal year to enter into contracts described in paragraph (1)(B). 
"(c) SUPPLEMENT NOT SUPPLANT.—^A recipient of a grant or con-
tract under this section may use the fiinds provided only so as 
to supplement and, to the extent possible, increase the level of 
fiinds that woiild, in the absence of such funds, be made available 
firom non-Federal sources to csirry out the activities supported by 
such grant or contract, and in no case to supplant such fiinds 
from non-Federal sources.". 
TITLE IX—GRADUATE PROGRAMS 
SEC. 901. GRADUATE PROGRAMS. 
Title IX of the Act (20 U.S.C. 1134 et seq.) is amended to read 
as follows: 
*^TITLE EX—GRADUATE PROGRAMS 
20 use 1134. 
''SEC. 901. PURPOSE AND ADMINISTRATIVE PROVISIONS. 
"(a) PURPOSE.—It is the purpose of this title to— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 761 
"(1) foster and support graduate and professional education; 
"(2) provide incentives £ind support for United States citizens 
to complete doctoral degree programs leading to academic 
careers, especially women and students from imderrepresented 
groups; and 
"(3) provide support for students from underrepresented 
groups to complete masters and professional degree programs. 
"(b) ADMINISTRATIVE PROVISIONS.— 
"(1) COORDINATED ADMINISTRATION.—In carrying out the pur-
poses of this title, the Secretary shall provide for coordinated 
administration and regulation of graduate programs under this 
title to ensure that the programs are carried out in a manner 
most compatible with academic practices. 
"(2) HIRING AUTHORITY.—For purposes of carrying out this 
title, the Secreteiry shall appoint, without regard to the provi-
sions of title 5 of the United States Code governing appoint-
ments in the competitive service, such administrative and tech-
nical employees, with the appropriate educational background, 
as shall be needed to assist in the administration of such 
part. Such employees shall be paid without regard to the provi-
sions of chapter 51 £uid subchapter III of chapter 53 of such 
title relating to classification and General Schedule pay rates. 
"(3) USE FOR RELIGIOUS PURPOSES PROHIBITED.—NO fellowship 
shall be awarded under this title for study at a school or 
department of divinity. 
**PART A—GRANTS TO INSTITUTIONS AND CON-
SORTIA TO ENCOURAGE WOMEN AND MI-
NORITY 
PARTICIPATION 
IN 
GRADUATE 
EDUCATION 
"SEC. 911. GRANTS AUTHORIZED. 
"The Secretary shall make grants to institutions of higher edu-
cation and consortia of such institutions to enable such institutions 
and consortia— 
"(1) to identify talented imdergraduate students who— 
"(A) demonstrate financial need; and 
"(B) 
are 
individuals 
from 
minority 
groups 
underrepresented in graduate education or are women 
underrepresented in fields of study in graduate education 
such as the fields of science and mathematics; and 
"(2) to provide such students with an opportunity to partici-
pate in a progrsmi of research and scholarly activities at such 
institutions or consortia designed to provide such students with 
effective preparation for graduate study in such fields or related 
fields. 
"SEC. 912. SUBMISSION AND CONTENTS OF APPLICATION. 
"(a) REQUIRED INFORMATION.—Each institution of higher edu-
cation or consortium desiring assistance under this part shall sub-
mit an application to the Secretary in such form and containing 
such information as the Secretary may by regulation prescribe. 
Each such application shgdl provide information regarding— 
"(1) the program of study, to take the form of summer 
research internships, seminars, and other educational experi-
ences; 
20 use 1134a. 
20 u s e 1134b. 
106 STAT. 762 
PUBLIC LAW 102-325—JULY 23, 1992 
"(2) the institution's or consortium's plan for identifying and 
recruiting talented women and minority undergraduates, espe-
cially those interested in entering fields in which such women 
and minority undergraduates are underrepresented; 
"(3) the participation of faculty in the program and a detailed 
description of the research in which students will be involved; 
"(4) a plan for the evaluation of the effectiveness of the 
program; £ind 
"(5) such other assurances and information as the Secretary 
may require by regulation. 
"(b) SELECTION REQUIREMENTS.—In making awsirds to institutions 
and consortia— 
"(1) the Secretary shall consider the qusdity of the research 
in which students will be involved as well as the recruitment 
program and program of study; and 
"(2) the Secretary shall ensure an equitable geographic dis-
tribution among public and private institutions of higher edu-
cation and consortia. 
20 use 1134c. 
"SEC. 913. USE OF FUNDS. 
"Awards made to institutions or consortia under this part shall 
be used exclusively to provide direct fellowship aid which may 
include need-based stipends, room and board costs, transportation 
costs, £uid tuition for courses for which credit is given by the 
institution or consortium as approved by the Secretary. 
20 u s e 1134C-1. 
"SEC. 914. INFORMATION COLLECTION. 
"In order to assist institutions of higher education or consortia 
to identify talented women and minority undergraduates for grad-
uate study, institutions or consortia receiving awards vmder this 
part shall provide to the Secretary such information as the Secretary 
determines is necessary to carry out this section. With respect 
to students participating in a summer internship under this part, 
the Secretary shall collect information submitted by such institu-
tions or consortia, such as the students' names, addresses, and 
institutions attended for undergraduate study. The Secretary shall, 
subject to the authorization of each student, make the information 
available to institutions of higher education or consortia offering 
graduate programs seeking to identify talented women and minority 
undergraduates for graduate study. 
20 u s e 1134C-2. 
"SEC. 915. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part 
$25,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years. 
Minorities. 
Women. 
20 u s e 1134d. 
"PART B—PATRICLA ROBERTS HARRIS 
FELLOWSHIP PROGRAM 
"SEC. 921. STATEMENT OF PURPOSE; DESIGNATION. 
"(a) PURPOSE.—It is the purpose of this part to provide, through 
institutions of higher education, a program of grsuits to assist 
in making available the benefits of master's level, professional, 
and doctoral education programs to individuals from minority 
groups and women who are xmderrepresented in such programs. 
"(b) DESIGNATION.—Each recipient of such an award under this 
part shall be known as a 'Patricia Roberts Harris Graduate Fellow'. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 763 
<
<
S
£
C
. 922. PROGRAM AUTHORIZED. 
20 USC 1134e. 
"(a) GRANTS B
Y SECRETARY.— 
"(1) IN GENERAL.—^The Secretary shall make grants to institu-
tions of higher education to enable such institutions to make 
grants in accordance with the provisions of this part. 
"(2) RESERVATIONS.—The Secretary shall reserve— 
"(A) 50 percent of the amount appropriated pursuant 
to the authority of section 924 to award grants to institu-
tions of higher education to enable sucn institutions to 
make awards for master's level and professional study; 
and 
"(B) 50 percent of such amoimt to award grants to such 
institutions to enable such institutions to make awards 
for doctor^ study. 
"(b) DISTRIBUTION A
N
D AMOUNTS OF GRANTS.— 
"(1) EQUITABLE DISTRIBUTION.—In making such grants the 
Secretary shall, to the maximum extent feasible, ensure an 
equitable geographic distribution of awards and an equitable 
distribution among eligible pubUc and independent institutions 
of higher education. 
"(2) REALLOTMENT.—^Whenever the Secretary determines that 
an institution of higher education is unable to use all of the 
amounts available to it under this part, the Secretary shall, 
on such dates during each fiscal year as the Secretary may 
fix, reallot such amounts not needed to institutions which can 
use the grants authorized by this psut. 
"(c) APPLICATIONS.^-Any eligible institution of higher education 
offering a program of postbaccalaureate study leading to a master's 
level, professional, or doctoral degree may apply for grants under 
this part. Each such institution may make an application to the 
Secretary at such time, in such manner, and containing or accom-
p£uiied Dv such information as the Secretary may reasonably 
require. Such application may be made on behalf of professional 
schools, academic departments, or similar organizational imits 
within such institution meeting the requirements of this subsection, 
including interdisciplinary or interdepartmental programs. 
"(d) SELECTION OF APPLICATIONS.—In making grants to institu-
tions of higher education, the Secretary shall— 
"(1) take into accoimt present and projected needs for highly 
trained individuals in academic career fields of high national 
priority; 
"(2) consider the need to prepare a larger number of women 
and individuals fi*om minority groups, especially fi"om among 
such groups which have been traditionally underrepresented 
in professional and academic c£u*eers requiring master's level, 
professional, or doctoral degrees, but nothing contained in this 
paragraph shall be interpreted to require any institution to 
grant preference or disparate treatment to the members of 
one minority group on account of an imbalance which may 
exist with respect to the total number or percentage of individ-
uals of such group participating in or receiving the benefits 
of the program authorized in this section, in comparison with 
the total number or percentage of individu£ds of such group 
in any community. State, section, or other area; 
"(3) take into account the need to expand access by women 
and minority groups to careers heretofore lacking adequate 
representation of 
women and minority groups; and 
106 STAT. 764 
PUBLIC LAW 102-325—JULY 23, 1992 
•— 
"(4) take into account the success of the appUcant in providing 
students with access to careers in which women and minority 
groups are underrepresented. 
"(e) PRIORITIES FOR FELLOWSHIPS.—The Secretary shall assure 
that, in making grants under this part, a priority for aw£irds is 
accorded to— 
"(1) individuals from minority groups and women who are 
pursuing master's level or professional study in fields in which 
they are underrepresented; 
"(2) individuals from minority groups and women who are 
pursuing master's level study leading to careers that serve 
the public interest; and 
"(3) 
women 
and 
individuals 
from 
traditionally 
underrepresented groups undertaking doctoral study, including 
those interested in entering the fields of science and mathe-
matics. 
"(f) INSTITUTIONAL PAYMENTS.—The Secretary shall (in addition 
to stipends paid to individuals under this part) pay to the institution 
of higher education, for each individual awarded a fellowship imder 
this part at such institution, $9,000 with respect to such awsirds 
made for the academic year 1993-1994, to be adjusted annually 
thereafter in accordance with inflation as determined by the Depart-
ment of Labor's Consumer Price Index for the previous calendar 
year. 
20USC1134f 
'^EC. 923. AWARD OF FELLOWSHIPS. 
"(a) AWARDS.—^The Secretary shall make pa3mients to institutions 
of higher education for the purpose of paying stipends to individuals 
who are awarded fellowships under this part. The stipends the 
Secretary may establish shall reflect the purpose of this program 
to encourage students to imdertsdce master's level, professional, 
and doctoral study as described in this part. In the case of an 
individual who receives such individual's first stipend imder this 
part in academic year 1993-1994 or any succeeding academic year, 
such stipend shall be set at a level of support equal to that provided 
by the National Science Foundation graduate fellowships, except 
such amoimt shall be adjusted as necessary so as not to exceed 
the fellow's demonstrated level of need according to measurements 
of need approved by the Secretary. 
"(b) REQUIREMENTS FOR AWARDS.— 
"(1) 
MASTER'S 
OR PROFESSIONAL DEGREE.—No student 
enrolled in graduate study leading to a master's or professional 
degree shall receive an award except during periods in which 
such student is mainteiining satisfactory progress in, and devot-
ing essentially full time to study or research (including acting 
as a teaching assistant or resesirch assistant as may be required 
as a condition to award a degree), in the field in which such 
fellowship was awsirded and is not engaging in gainful employ-
ment, other than part-time employment by the institution of 
higher education involved in teaching, research, or similar 
activities, approved by the Secretary. Such period shall not 
exceed the normal period for completing the program in which 
the student is enrolled or a total of 3 years, whichever is 
less, except that the Secretary may provide by regulation for 
the granting of such fellowships for a period of study not 
to exceed one 12-month period, in addition to the 3-year period 
for study or research set forth in this section, under special 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 765 
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. 
"(2) DOCTORAL DEGREE.—No student enrolled in graduate 
study leading to a doctoral deg^ree shall receive an award under 
this part except during periods in which such student is 
maintaining satisfactory progress in, and devoting essentially 
full time to study, research (inclu(Ung acting as a teaching 
assistant or research assistant as may be required as a condi-
tion to award a degree), or dissertetion work in the field in 
which such fellowship was awarded and is not engaging in 
gainful employment, other than part-time employment by the 
institution of higher education involved in teaching, research, 
or similar activities, approved by the Secretary. 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 1 year of support for dissertation work provided that 
the student has attained satisfactory progress prior to the 
dissertation stage. The institution shall provide 2 years of sup-
port for each student, including at least 1 year of supervised 
teaching, following the 2 years of predissertation support under 
this part. 
^^EC. 924. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1134g. 
'There are authorized to be appropriated $60,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years to CEury out this part. 
"PART C^JACOB K. JAVITS FELLOWSfflP 
PROGRAM 
«SEC. 931. AWARD OF JACOB K. JAVITS FELLOWSHIPS. 
20 USC 1134h. 
"(a) AUTHORITY AND TIMING OF AWARDS.—The Secretary is 
authorized to award fellowships in accordance with the provisions 
of this part for graduate study in the arts, himianities, and social 
sciences by studente of superior abihty selected on the basis of 
demonstrated achievement and exceptional promise. All funds 
appropriated in a fiscal year shall be obUgated and expended to 
the students for fellowships for use in the academic year beginning 
after July 1 of the fiscal year for which the funds were appropriated. 
The fellowships shall be awarded for only 1 academic year of study 
and shall be renewable for a period not to exceed 4 years of 
study. 
"(b) DESIGNATION OF FELLOWS.—Students receiving awards under 
this part shaU be known as 'Jacob K. Javits Fellows*. 
"(c) INTERRUPTIONS OF STUDY.—The institution of higher edu-
cation may allow a fellowship recipient to interrupt periods of 
study for a period not to exceed 12 months for the purpose of 
work, travel, or independent study away from the campus, if such 
independent study is supportive of the fellowship recipient's aca-
demic program and shall continue payments for those 12-month 
periods during which the student is pursuing travel or independent 
study supportive of the recipient's academic program. 
106 STAT. 766 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 11341. 
«SEC. 932. ALLOCATION OF FELLOWSHIPS. 
Establishment. 
,,, . __ 
T» 
"(a) FELLOWSHIP BOARD.— 
"(1) APPOINTMENT.—The Secretary shall appoint a Jacob K. 
Javits Fellows Program Fellowship Board (hereinafter in this 
part referred to as the 'Board') consisting of 9 individuals 
representative of both pubUc and private institutions of higher 
education who are especially qualified to serve on the Board. 
In making appointments, the Secretary shall give due consider-
ation to the appointment of individuals who are highly 
respected in the academic community. The Secretary shall 
assure that individuals appointed to the Board are broadly 
knowledgeable about and have experience in doctoral education 
in arts, humanities, and social sciences. 
"(2) DUTIES.—The Board shall— 
"(A) estabhsh general policies for the program established 
by this part and oversee its operation; 
"(B) estabhsh general criteria for the distribution of fel-
lowships among eligible academic fields identified by the 
Board; 
"(C) appoint panels of academic scholars with distin-
guished backgrounds in the arts, humanities, and social 
sciences for the purpose of selecting fellows; and 
Reports. 
"(D) prepare and submit to the Congress at least once 
in every 3-year period a report on any modifications in 
the program that the Board determines are appropriate. 
"(3) CONSULTATIONS.—In canying out its responsibilities, the 
Board shall consult on a regular basis with representatives 
of the National Science Foundation, the National Endowment 
for the Humanities, the National Endowment for the Arts, 
and representatives of institutions of higher education and 
associations of such institution, learned societies, and profes-
sional organizations. 
"(4) TERM.—^The term of office of each member of the Board 
shall be 4 years, except that any member appointed to fill 
a vacancy shall serve for the remainder of the term for which 
tiie predecessor of the member was appointed. No member 
may serve for a period in excess of 6 years. 
"(5) INITIAL MEETING; VACANCY.—The Secretary shall call the 
first meeting of the Board, at which the first order of business 
shall be the election of a Chairperson and a Vice Chairperson, 
who shall serve until 1 year after the date of their appointment. 
Thereafter each officer shall be elected for a term of 2 years. 
In case a vacancy occurs in either office, the Board shall elect 
an individual fi*om among the members of the Board to fill 
such vacancy. 
"(6) QUORUM; ADDITIONAL MEETINGS.—(A) A majority of the 
members of the Board shall constitute a quonmi. 
"(B) The Board shsdl meet at least once a year or more 
frequently, as may be necessary, to carry out its responsibiUties. 
"(7) COMPENSATION.—Members of the Board, while serving 
on the business of the Bocird, shall be entitled to receive com-
pensation at rates fixed by the Secretary, but not exceeding 
the rate of basic pay payable for level IV of the Executive 
Schedule, including traveltime, and while so serving away firom 
their homes or regular places of business, they may be allowed 
travel expenses, including per diem in lieu of subsistence, as 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 767 
authorized by section 5703 of title 5, United States Code, for 
persons in (Jovemment service employed intermittently. 
"(b) USE OP SELECTION PANELS.—The recipients of fellowships 
shall be selected in each designated field from among all appUcants 
nationwide in each field by distinguished panels appointed by the 
Board to make such selections imder criteria established by the 
Board, The nimiber of recipients in each field in each year shall 
not exceed the number of fellows allocated to that field for that 
year by the Board. 
"(c) FELLOWSHIP PORTABILITY.—Each recipient shall be entitled 
to use the fellowship in a doctoral program at any accredited 
institution of higher education in which tne recipient may decide 
to enroU. 
**SEC. 933. STIPENDS. 
20 USC 1134j. 
"(a) AWARD BY SECRETARY.—The Secretary shall pay to individ-
uals awarded fellowships under this part such stipends as the 
Secretary may estabUsh, reflecting the purpose of this program 
to encourage highly talented students to luidertake graduate study 
as described in this part. In the case of an individual who receives 
such individual's first stipend under this part in academic year 
1993-1994 or any succeeding academic year, such stipend shall 
be set at a level of support equal to that provided by the National 
Science Foimdation graduate fellowships, except such amount shall 
be adjusted as necessary so as not to exceed the fellow's dem-
onstrated level of need according to measurements of need approved 
by tiie Secretary. 
"(b) INSTITUTIONAL PAYMENTS.— 
"(1) IN GENERAL.—The Secretary shall (in addition to the 
stipends paid to individuals under subsection (a)) pay to the 
institution of higher education, for each individual awarded 
a fellowship for pursuing a course at such institution, $9,000 
with respect to such awards made for the academic year 1993-
1994, to be adjusted annually thereafter in accordance with 
inflation as determined by the Department of Labor's Consumer 
Price Index for the previous calendar year, except that such 
amount charged to a fellowship recipient and collected firom 
such recipient for tuition and other expenses required by the 
institution as part of the recipient's instructional program shall 
be deducted from the payment to the institution under this 
subsection. 
"(2) SPECIAL RULES.—(A) Beginning March 1, 1992, any 
appHcant for a fellowship under this pa^rt who has been notified 
in writing by the Secretary that such applicant has been 
selected to receive such a fellowship and is subsequently noti-
fied that the fellowship award has been withckawn, shall 
receive such fellowship imless the Secretary subsequently 
makes a determination that such applicant submitted iraudu-
lent information on the application. 
"(B) Subject to the availability of appropriations, amounts 
payable to an institution by the Secretary pursuant to this 
subsection shall not be reduced for any purpose other than 
the purposes specified under paragraph (1). 
*«SEC. 934. FELLOWSHIP CONDITIONS. 
20 USC 1134k. 
"(a) REQUIREMENTS FOR RECEIPT.—An individual awarded a fel-
lowship imder the provisions of this part shall continue to receive 
payments provided in section 933 only during such periods as 
106 STAT. 768 
PUBLIC LAW 102-325—JULY 23,1992 
the Secretary finds that such individual is maintaining satisfactory 
proficiency in, and devoting essentially fiill time to, study or 
research in the field in which such fellowship was awarded, in 
an institution of higher education, and is not engaging in gainfiil 
emplo3anent other than part-time employment by such institution 
in teaching, research, or similar activities, approved by the Sec-
retary. 
"(b) REPORTS FROM RECIPIENTS.—The Secretary is authorized 
to require reports containing such information in such form and 
filed at such times as the Secretaiy determines necessaiy fi'om 
any person awarded a fellowship under tiie provisions of this part. 
The reports shall be accompanied by a certificate firom an appro-
priate ofi&cial at the institution of higher education, library, arcmve, 
or other research center approved oy the Secretary, stating that 
such individual is making satisfactory progress in, and is devoting 
essentially fiiU time to the program for which the fellowship was 
awarded. 
20 use 1134k-l. 
•«£€. 935. AUTHORIZATION OF APPROPRIATIONS. 
'There are authorized to be appropriated $30,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years to carry out this part. 
"PART D—GRADUATE ASSISTANCE IN AREAS 
OF NATIONAL NEED 
20 u s e 1134/. 
••SEC. 941. PURPOSE. 
"In order to sustain and enhsmce the capacity for teaching and 
research in areas of national need, it is me purpose of the pjart 
to provide, through academic departments and programs of institu-
tions of higher education, a fellowship program to assist graduate 
students of superior abihty who demonstrate financieJ need. 
20 u s e 1134m. 
«SEC. 942. GRANTS TO ACADEMIC DEPARTMENTS AND PROGRAMS OF 
INSTITUTIONS. 
"(a) GRANT AUTHORITY.— 
"(1) IN GENERAL.—^The Secretary shall make grants to aca-
demic departments and programs and other academic imits 
of institutions of higher education that provide courses of study 
leading to a graduate degree in order to enable such institutions 
to provide assistance to graduate students in accordance with 
this part. 
"(2) ADDITIONAL GRANTS.—The Secretary may also make 
grants to such departments and programs and to other units 
of institutions of higher education granting graduate degrees 
which submit ^'oint proposals involving nondegree granting 
institutions which have formal arrangements for the supi)ort 
of doctoral dissertation research with degree-granting institu-
tions. Nondegree granting institutions eUgible for awards as 
part of such joint proposes include amr organization which— 
"(A) is described in section 501(c)(3) of the Interned Reve-
nue Code of 1986, and is exempt fi*om tax under section 
501(a) of such Code; 
"(B) is organized and operated substantially to conduct 
scientific and cultural research and graduate training pro-
grams; 
"(C) is not a private foimdation; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 769 
"(D) has academic personnel for instruction and counsel-
ing who meet the standards of the institution of higher 
education in which the students are enrolled; and 
"(E) has necessary research resources not otherwise read-
ily available in such institutions to such students. 
"(b) AWARD AND DURATION OF GRANTS.— 
"(1) AWARDS.—^The principal criterion for the allocation of 
awards shall be the relative quality of the graduate programs 
presented in competing applications. Consistent with an alloca-
tion of awards based on qucdity of competing applications, 
the Secretary shall, in making such grants, promote an equi-
table geographic distribution among eligible public and private 
institutions of higher education. 
"(2) DURATION.—^The Secretary shall approve a grant recipi-
ent under tiiis part for a 3-year period. From the sums appro-
priated under tiiis part for any fiscal year, the Secretary shall 
not make a grant to any academic department or program 
of an institution of higher education of less than $100,000 
or greater tiian $750,000 per fiscal year. 
"(3) REALLOTMENT.—^Whenever tiie Secretary determines that 
an academic department or program of an institution of higher 
education is unable to use all of the amounts available to 
it under this part, the Secretary shall, on such dates during 
each fiscal year as the Secretary may fix, reallot the amounts 
not needed to academic departments and programs of institu-
tions which can use the grants authorized by tWs part. 
"(c) PREFERENCE T
O CONTINUING GRANT RECIPIENTS.— 
"(1) IN GENERAL.—^The Secretary shall make new grant 
awards under this part only to the extent that each previous 
grant recipient has received continued funding in accordance 
with subsection (b)(2). 
"(2) RATABLE REDUCTION.—TO the extent that appropriations 
under this part are insufiicient to comply with paragraph (1), 
available funds shall be distributed by ratably reducing the 
amounts required to be awarded by subsection (b)(2). 
««£€. 943. INSTITUnONAL ELIGIBILITY. 
20 USC 1134n. 
"(a) ELIGIBILITY CRITERIA.—^Any academic department or program 
of an institution of higher education that offers a program of 
postbaccalaureate study leading to a graduate degree in an area 
of national need (as designated under subsection (b)) may apply 
for a grant under this part. No department or program shall be 
eUgible for a grant unless the program of postbaccalaureate study 
has been in existence for at least 4 years at the time of appUcation 
for assistance imder this part. 
"(b) DESIGNATION OF AREAS OF NATIONAL NEED.—After con-
sultation with the National Science Foundation, the National Acad-
emy of Sciences, the National Endowments for the Arts and the 
Humanities, and other appropriate Federal and nonprofit agencies 
and organizations, the Secretary shall designate areas of national 
need, such as mathematics, biology, physics, chemistry, engineering, 
geosciences, computer science, or foreign languages or area studies. 
In making such designations, the Secretary shall take into accoimt 
the extent to which the interest is compelling and the extent to 
which other Federal programs support postbaccalaureate study in 
the area concerned. 
-194 O—93 
26 : QL 3 (Pt. 1) 
106 STAT. 770 
PUBLIC LAW 102-325—JULY 23, 1992 
20USC1134O. 
"SEC. 944. CRITERIA FOR APPLICATIONS. 
"(a) SELECTION OF APPLICATIONS.—The Secretary shall make 
grants to academic departments and programs of institutions of 
higher education on the basis of applications submitted in accord-
ance with subsection (b). AppUcations shaU be ranked on program 
quality by geographically balanced review panels of nationally rec-
ognized scholars. To the extent possible (consistent with other provi-
sions of this section), the Secretary shall make awards that are 
consistent with recommendations of the review panels. 
"(b) CONTENTS OF APPLICATIONS.—^An academic department or 
program of an institution of higher education, in its application 
for a grant, shall— 
"(1) describe the current academic program of the applicant 
for which the grant is sought; 
"(2) provide assurances that the applicant will provide, from 
other non-Federal funds, for the purposes of the fellowship 
program under this part an amount equal to at least 25 percent 
of the amount of the grant received under this part; 
"(3) set forth poUcies and procedures to assure that, in making 
fellowship awards imder this part the institution will seek 
talented students from traditionally underrepresented back-
grounds, as determined by the Secretary; 
"(4) set forth poUcies and procedures to assure that, in making 
fellowship awards under this part, the institution will make 
awards to individuals who— 
"(A) have financial need, as determined under criteria 
developed by the institution; 
"(B) have excellent academic records in their previous 
programs of study; 
"(C) plan teaching or research careers; and 
"(D) plan to pursue the highest possible degree available 
in their course of study; 
"(5) set forth poUcies and procedures to ensure that Federal 
fimds made available imder this part for any fiscal year will 
be used to supplement and, to the extent practical, increase 
the frmds that would otherwise be made available for the 
purpose of this part and in no case to supplant those funds; 
"(6) provide assurances that, in the event that funds made 
available to the academic department or program under this 
part are insufficient to provide the assistance due a student 
under the commitment entered into between the academic 
department or program and the student, the academic depart-
ment or program will endeavor, from any funds available to 
it, to fulfill the commitment to the student; 
"(7) provide that the appUcant will comply with the limita-
tions set forth in section 945; 
"(8) provide assurances that the academic department will 
provide at least 1 year of supervised training in instruction 
for students; and 
"(9) include such other information as the Secretary may 
prescribe. 
20USC1134p. 
' ^ E C . 945. AWARDS TO GRADUATE STUDENTS. 
"(a) COMMITMENTS TO GRADUATE STUDENTS.— 
"(1) IN GENERAL.—^An academic department or program of 
an institution of higher education shall make commitments 
to graduate students (including students pursuing a doctoral 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 771 
degree after having completed a master's degree program at 
an institution of higher education) at any point in their grad-
uate study to provide stipends for the lengtii of time necessary 
for a student to complete the course of graduate study, but 
in no case longer than 5 years. 
"(2) SPECIAL RULE.—^No such commitments shall be made 
to students imder this part unless the academic department 
or program has determined adequate funds are available to 
fulfill the commitment either 
fi*om 
funds received or anticipated 
under this part, or from institutional funds. 
"(b) AMOUNT OP STIPENDS.—The Secretary shall make payments 
to institutions of higher education for the purpose of paying stipends 
to individuals who are awarded fellowships under this part. The 
stipends the Secretary establishes shall reflect the purpose of this 
program to encourage higWy talented students to undertake grad-
uate study as described in this part. In the case of an individual 
who receives such individual's first stipend under this part in 
academic year 1993-1994 or any succeeding academic year, such 
stipend shall be set at a level of support equal to that provided 
by the National Science Foundation graduate fellowships, except 
such amoimt shall be adjusted as necessary so as not to exceed 
the fellow's demonstrated level of need according to measurements 
of need approved by the Secretary. 
"(c) SUPPLEMENTATION RULE.—Notwithstanding the provisions of 
section 944(b)(6), any non-Federal funds provided to a student in 
accordance with section 944(b)(2) by the academic department or 
program of an institution of higher education for tuition and fees 
under subsection (a), may be used to supplement stipends awarded 
under this part. 
"(d) ACADEMIC PROGRESS REQUIRED.—Notwithstanding the provi-
sions of subsection (a), no student shall receive an award— 
"(1) except during periods in which such student is maintain-
ing satisfactory progress in, and devoting essentially full time 
to, study or research in the field in which such fellowship 
was awarded, or 
"(2) if the student is engaging in gainful employment other 
than part-time employment involved in teaching, research, or 
similar activities determined by the institution to be in support 
of the student's progress towards a degree. 
"SEC. 946. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION. 
20 USC 1134q. 
"(a) PAYMENTS AUTHORIZED.—The Secretary shall (in addition 
to stipends paid to individuals under this subpart) pay to the 
institution of higher education, for each individual awarded a fellow-
ship at such institution, $9,000 with respect to such awards made 
for the academic year 1993-1994, to be adjusted annually thereafter 
in accordance with inflation as determined by the Department 
of Labor's Consumer Price Index for the previous calendar year. 
"(b) USE FOR OVERHEAD PROHIBITED.—Funds made available pur-
suant to this part may not be used for the general operational 
overhead of the academic department or program. 
"SEC. 947. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1134q-l. 
"There are authorized to be appropriated $40,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of tiie 
4 succeeding fiscal years to carry out this part. 
106 STAT. 772 
PUBLIC LAW 102-325—JULY 23, 1992 
**PART E—FACULTY DEVELOPMENT 
FELLOWSfflP PROGRAM 
Minorities. 
'^EC. 9S1. FELLOWSHIPS AUTHORIZED. 
90 T T
Q
T
^ 11 QAv* 
**(a) FELLOWSHIP PROGRAM AUTHORIZATION.—The Secretary shall 
make grants to institutions of higher education or consortia of 
such institutions and nonprofit organizations associated with 
institutions of higher education, with a demonstrated record of 
enhancing the access of individuals fi'om underrepresented groups 
including African Americans, Asian Americans, Hispanic Ameri-
cans, Native Americans, and Native Hawaiians, to enable such 
institutions or consortia to— 
"(1) identify talented faculty from underrepresented groups 
who wish to— 
"(A) continue in the higher education professorate and 
obtain a doctoral degree; or 
"(B) participate in faculty professional development pro-
grams specifically designed to advance the careers of 
underrepresented minorities; 
"(2) identify talented baccalaureate degree recipients fi*om 
underrepresented groups who have financial need and who 
wish to obtain a doctoral degree and enter the higher education 
professorate; and 
"(3) provide the individuals described in paragraphs (1) and 
(2) wiui a fellowship to assist such students in obtaining a 
doctoral degree or to peirticipate in a faculty development pro-
gram. 
"(b) GEOGRAPHIC DISTRIBUTION.—In awsirding grants pursuant 
to subsection (a), the Secretary shall ensure— 
"(1) an equitable geographic distribution of such gremts; and 
"(2) that both pubUc sind private institutions of higher edu-
cation are fairly represented among the grant recipients. 
*
*
(
c
) SPECIAL RULE.— 
"(1) EQUITABLE DISTRIBUTION.—Each institution of higher 
education or consortium receiving a grant under this part shall 
ensure that during the period of the grant there is an equitable 
distribution 
of 
fellowships 
under 
this 
part 
among 
underrepresented groups. 
"(2) CfoNSTRUCTiON.—^Nothing in this section shall be inter-
preted to require any institution of higher education or consor-
tiimi to grant preference or disparate treatment to the members 
of one group on account of an imbalance which may exist 
with respect to the toted number or percentage of individuals 
of such group participating in or receiving the benefits of the 
progr£un authorized in this part, in comparison with the total 
number or percentage of individuals of such group in any 
community, state, section, or other area. 
"(d) WAIVER BY THE SECRETARY.—The Secretary may waive all 
or any portion of the requirement under subsection (b) upon applica-
tion of any institution which is eUgible for fimds imder title III 
of this Act, pursuant to criteria established by the Secreteuy by 
regulation. 
"(e) SELECTION REQUIREMENTS.—In awarding grants under sub-
section (a), the Secretary shall give priority to applications describ-
ing programs that— 
"(1) provide to each fellowship recipient— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 773 
"(A) a tuition waiver; and 
"(B)(i) a minimum $2,000 stipend; or 
"(ii) additional financial support in conjimction with 
teaching or research activities that are part of such recipi-
ent's doctoraJ program; 
"(2) provide additional financial support to each fellowship 
recipient from non-Federal resources, either in cash or in kind, 
such as contributions firom the business community and civic 
orgsinizations; 
(3) emphasize courses of study leading to the doctoral 
degrees in disciplines where minorities are underrepresented; 
and 
"(4) describe steps to ensure that a fellowship recipient will 
teach at an institution of higher education where minority 
xindergraduate students are likely to benefit firom the edu-
cational experience and academic achievement of such recipient. 
"(f) DESIGNATION.—Students receiving fellowship awards under 
this part shall be known as 'Faculty Development Fellows'. 
"SEC. 952. FELLOWSHIPS. 
"Each institution of higher education or consortium receiving 
a grant imder this part shall award fellowships in an amount 
equal to the amount awarded to National Science Foimdation grad-
uate fellowship recipients for that year, or an amount based on 
the financial need of the recipient (as determined by the institution 
in accordance with measurements of need approved by the Sec-
retary) whichever is less. 
"SEC. 953. APPLICATION. 
"(a) APPLICATION REQUIRED.—Each institution of higher education 
or consortium desiring a grant under this part shsQl submit an 
apphcation to the Secretary at such time, in such manner and 
containing such information as the Secretary may by regulation 
reasonably require. 
"(b) CONTENTS.—Each application submitted pursuant to sub-
section (a) shall contain— 
"(1) the institution of higher education's or consortium's plan 
for identifying and recruiting faculty and baccalaureate degree 
recipients who may participate in the program assisted under 
this part; 
"(2) a description of the program or programs of doctoral 
study that the institution of higher education or consortium 
plans to offer in the institution's doctor£Q program; 
"(3) the institution of higher education s or consortium's plan 
for using minority facility and other faculty as advisors and 
academic resources in support of the program assisted under 
this part; 
"(4) a description of other resources of the institution of 
higher education or consortium, including tuition waivers, 
assistantships or financial aid other than loans, that such 
institution or consortium shall make available to fellowship 
recipients; 
"(5) a description of the method such institution or consortiimi 
shall use to determine a student's financial need; 
"(6) the names of those undergraduate institutions which 
are historically or predominantly black colleges and universities 
or other institutions with significant enrollments of African 
Americans, Asian Americans, Hispanic Americans, Native 
20 use 1134r-l. 
20 use 1134r-2. 
106 STAT. 774 
PUBLIC LAW 102-325—JULY 23, 1992 
Hawaiians, Pacific Islanders, and Native Americans which have 
agreed to cooperate with the apphcant institution to carry 
out the purposes of this part; and 
"(7) such other assurances and information as the Secretary 
may reasonably require by regulation. 
20 use 1134r-3. 
"SEC. 954. FELLOWSHIP AGREEMENT. 
"Each recipient of a fellowship imder this part shall enter into 
an agreement with the institution of higher education or consortium 
awarding such fellowship under which the fellowship recipient 
shall— 
"(1) in the case of a fellowship recipient described in section 
951(a)(1), within a 5-year period after completing the doctoral 
degree for which the fellowship under this part was awarded, 
teach, for a period of not less than 1 year for each year for 
which financial assistance under this part was received, in 
a public or private nonprofit institution of higher education 
that has a significant minority enrollment; 
"(2) in the case of a fellowship recipient described in section 
951(a)(2), within a 5-year period after completing the doctoral 
degree for which the fellowship under this part was awarded, 
teach, for a period of not less than 1 year for each year for 
which financial assistance under this part was received, in 
a public or private nonprofit institution of higher education; 
Regulations. 
"(3) agree to provide the Secretary with evidence of compli-
£ince, determined pursuant to regulations issued by the Sec-
retsiry, with the provisions of paragraph (1) or (2); and 
"(4) repay all or part of the fellowship received, plus interest, 
and if applicable reasonable collection fees, under regulations 
issued by the Secretary, in the event the conditions of para-
graph (1) or (2) are not complied with, except as provided 
in section 956. 
"SEC. 955. FELLOWSHIP REPAYMENT PROVISIONS. 
"A recipient of a fellowship under this part found by the Secretary 
to be in noncompKance with the agreement entered into imder 
section 954(1) or 954(2) shall be required to repay a pro rata 
amount of such fellowship assistance received, plus interest (but 
in no event at an interest rate higher than the rate applicable 
to loans in the applicable period under part B of title IV) and, 
where applicable, reasonable collection fees, on a schedule and 
at a rate of interest to be prescribed by the Secretary by regulations 
issued pursuant to this part. 
20 use 1134r-5. 
"SEC. 956. EXCEPTIONS TO REPAYMENT PROVISIONS. 
"(a) DEFERRAL DURING CERTAIN PERIODS.—A recipient shall not 
be considered in violation of the agreement entered into pursuant 
to section 954 (1) or (2) during any period in which the recipient— 
"(1) is pursuing a full-time course of study related to the 
field of teaching at an eligible institution; 
"(2) is serving, not in excess of 3 years, as a member of 
the armed services of the United States; 
"(3) is temporarily totally disabled for a period of time not 
to exceed 3 years as established by sworn affidavit of a qualified 
physician; 
"(4) is imable to secure emplo5nnent for a period not to 
exceed 12 months by reason of the care required by a spouse 
who is disabled; 
20 use 1134r-4. 
Regulations. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 775 
"(5) is seeking and unable to find fiill-time employment for 
a single period not to exceed 12 months; 
"(6) is engaged in full-time emplojonent as a teacher in a 
public or private nonprofit preschool, elementary or secondary 
school, or a public or private nonprofit preschool, education 
program; or 
"(7) satisfies the provisions of additional repayment excep-
tions that may be prescribed by the Secretary in regulations 
issued pursuant to this part. 
"(b) FORGIVENESS IF PERMANENTLY TOTALLY DISABLED.—A recipi-
ent shall be excused fi*om repa3anent of any fellowship assistance 
received under this part if the recipient becomes permanently totally 
disabled as established by sworn affidavit of a qualified physician. 
"SEC. 957. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part 
$25,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years. 
"PART F—ASSISTANCE FOR TRAINING IN THE 
LEGAL PROFESSION 
20 u s e 1134r-6. 
Minorities. 
Contracts. 
'^EC. 961. PROGRAM REQUIREMENTS. 
"(a) PROGRAM AUTHORITY.—^The Secretary shall carry out a pro-
gram to assist minority, low-income, or educationally disadvEuitaged 
college graduates to successfully pursue a law degree and service 
in the legal profession through an annual grant or contract with 
the Council on Legsd Education Opportunity (hereinafter CLEO). 
A grant or contract under this part shall permit CLEO to use 
up to 6 percent of the fiinds provided for administrative costs 
of the grant or contract. 
"(b) SERVICES AUTHORIZED.—^A legal training project vmder this 
part may provide the following services: 
"(1) Assistance and counseling in gaining admission to accred-
ited law schools. 
"(2) A 6-week intensive summer program designed to prepare 
minority, low-income or educationally disadvantaged individ-
uals for the successfiil completion of legal studies. 
"(3) An academic-year program of tutorial services, academic 
advice and coimselmg designed to assist eligible participants 
successfully complete their legal training, which may include— 
"(A) instruction in reading, legal research, legal writing 
skills and problem analysis; 
"(B) academic advice and assistance in course selection; 
"(C) advisement about financing their legal education 
and available student financisd aid; 
"(D) personal and professional coxmseling relative to 
career edtematives in the legal profession and bar examina-
tion preparation; and 
"(E) any other activity consistent with subpsiragraphs 
(A) through (D) which furthers tiie objectives of this part 
which the Secretary may, by regulation, reasonably require. 
"(c) USE OF FUNDS.—^The Secretary shall by grant or contract 
on a biennial basis, with the Council on Legal Education Oppor-
timity, cover all or part of the cost o
f
— 
20 use 1134s. 
106 STAT. 776 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 1134t. 
20 use 1134u. 
"(1) publicizing the existence and availability of program 
funds to assist minority, low-income, and educationally dis-
advantaged individuals to pursue a legal education; 
"(2) selecting minority, low-income and educationeilly dis-
advantaged individuals for training for the legal profession; 
"(3) facilitating the entry of such individuals into law schools 
at institutions of higher education for the purpose of pursuing 
a legal education; 
"(4) selecting from among all quaHfied appUcants, which shall 
provide the services authorized by section 9.61(b) (2) or (3); 
"(5) ev£duatin^ the qusdity, impact £ind continuing feasibility 
of the programs implemented imder section 961(b); 
"(6) providing, through the institutions, agencies, and 
organizations selected under paragraph (4), for not more than 
6 months prior to entry of such individuals upon their course 
of training for the legal profession, or following entry, training 
designed to assist them to complete successfufly such training 
for the legal profession; 
"(7) paying such stipends (including allowances for psirtici-
pant travel and for their dependents) as the Secretary may 
determine for such individuals for any such period of prelimi-
nary training for the legal profession during which such individ-
uals maintain satisfactory academic progress toward the J.D. 
or LL.B. degree, as determined by the respective institution; 
and 
**(8) pa5dng for administrative activities of the institutions 
of higher education, agencies, or organizations which receive 
subgrants or contracts under paragraph (6), or with which 
such contracts are tsntered into, to the extent that such activi-
ties are for the purpose of furthering the activities described 
in paragraphs (1) through (7). 
"SEC. 962. AUTHOMZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part 
$7,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years. 
**PART G—LAW SCHOOL CLINICAL 
EXPERIENCE PROGRAMS 
"SEC. 971. PROGRAM AUTHORIZED. 
"(a) GRANT AND CONTRACT PURPOSES.—The Secretary is author-
ized to enter into grants or contracts with accredited law schools 
in the States for the purpose of paying not to exceed 90 percent 
of the costs of continuing, expanding, or establishing programs 
in such schools to provide clinical experience to students in the 
practice of law, which includes any form of law student work 
involving performance in the role of a lawyer exercising legal skills 
and roles such as those of an advocate, counselor, negotiator, inves-
tigator, and ethical practitioner, whether h^ way of the provision 
of representation of or services to an identifiable client in actual 
cases or situations (subject to existing State or local limitations 
upon such provision) or by way of simulation of such provision 
through appropriate exercises. Preference shall be given to those 
programs providing legal experience in the preparation and trial 
of actual cases, including administrative cases and the settlement 
of controversies outside the courtroom. The cases and situations 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 777 
handled in actuality or by simulation may encompass any one 
or more of the following: 
"(1) Judicial, administrative, executive, or legislative proceed-
ings, including the full range of preparation therefor. 
"(2) Office or house counsel problems. 
**(3) Factual investigation, empirical research, or policy or 
legal analysis. 
"(b) USE OF FUNDS.—Such costs may include necessary expendi-
tures incurred for— 
"(1) planning; 
"(2) training of faculty members and salary for additional 
faculty members; 
"(3) travel and per diem for faculty and students; 
"(4) reasonable stipends for students for work in the pubUc 
service performed as part of any such program at a time other 
than during the regular academic year; 
"(5) equipment and library resources; 
"(6) involving practicing lawyers in the process of training 
law students to perform as lawyers; and 
"(7) such other items as are allowed pursuant to regulations 
issued by the Secretary. 
"(c) LIMITATIONS ON AMOUNTS.—No law school may receive more 
than $250,000 in any fiscal year pursuant to this part, no p£irt 
of which may be used to pay for indirect costs or charges. 
"(d) DEFINITION.—For the purpose of this part, the term 'accred-
ited law school' means any law school which is accredited by a 
nationally recognized accrediting agency or association approved 
by the Secretary for this purpose, including any combination or 
consortium of such schools. 
"SEC. 972. APPUCATIONS. 
"(a) REQUIREMENTS.—^A grant or contract authorized by this part 
may be made by the Secretary upon appUcation which— 
"(1) is made at such time or times and contains such informa-
tion as the Secretary may prescribe; 
"(2) provides for such fiscal control and fimd accoimting proce-
dures as may be necessary to assure proper disbursement of 
and accoimting for Federsd funds paid to the appUcant imder 
this part; and 
"(3) provides for making such reports, in such form and 
containing such information as the Secretary may require to 
carry out fiinctions under this part, and for keeping such 
records and for affording such access thereto as the Secretary 
may find necessary to assure the correctness and verification 
of such reports. 
"(b) DISTRIBUTION OF GRANTS AND CONTRACTS.—The Secretary 
shall allocate grants or contracts imder this part in such manner 
as will provide an equitable distribution of such grants or contracts 
throughout the United States among law schools which show prom-
ise of being able to use funds effectively for the purposes of this 
part. 
"SEC. 973. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part 
$10,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years.". 
20 use 1134v. 
20 use 1134w. 
106 STAT. 778 
PUBLIC LAW 102-325—JULY 23, 1992 
TITLE X^^OSTSECONDARY 
IMPROVEMENT PROGRAMS 
SEC. 1001. FUND FOR THE mPROVEMENT OF POSTSECONDARY EDU-
CATION. 
Part A of title X of the Act (20 U.S.C. 1135 et seq.) is amended 
to read as follows: 
**PART A—FUND FOR THE IMPROVEMENT OF 
POSTSECONDARY EDUCATION 
**Subpart 1—^Program Authority 
20 use 1135. 
"SEC. 1001. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDU-
CATION. 
"(a) AUTHORITY.—The Secretary is authorized to make grants 
to, or enter into contracts with, institutions of higher education 
or combinations of such institutions and other pubUc and private 
nonprofit institutions and agencies, to enable such institutions and 
combinations of such institutions to improve postsecondary edu-
cation opportimities by— 
"(1) encouraging the reform, innovation, and improvement 
of postsecondary education, and providing equal educational 
opportunity for all; 
(2) the creation of institutions and progrsuns involving new 
paths to career and professional training, and new combinations 
of academic and experiential learning; 
"(3) the establisnment of institutions and programs based 
on the technology of commimications; 
"(4) the carrying out in postsecondary educational institutions 
of changes in internal structure and operations designed to 
clarify institutional priorities and purposes; 
"(5) the design and introduction of cost-effective methods 
of instruction and operation; 
"(6) the introduction of institutional reforms designed to 
expand individual opportunities for entering and reentering 
institutions and pursuing programs of study tailored to individ-
ual needs; 
"(7) the introduction of reforms in graduate education, in 
the structure of academic professions, and in the recruitment 
and retention of faculties; and 
"(8) the creation of new institutions and programs for examin-
ing and awarding credentieQs to individuals, and the introduc-
tion of reforms in current institutional practices related thereto. 
"(b) PLANNING GRANTS.—^The Secretary is authorized to make 
planning grants to institutions of higher education for the develop-
ment and testing of innovative techniques in postsecondary edu-
cation. Such grants shall not exceed $20,000. 
20 use 1135a. 
<«EC. 1002. NATIONAL BOARD OF THE FUND FOR THE IMPROVEMENT 
OF POSTSECONDARY EDUCATION. 
"(a) ESTABLISHMENT.—There is established a National Board of 
the Fund for the Improvement of Postsecondary Education (here-
after in this part referred to as the *Board*). The Board shall 
consist of 15 members appointed by the Secretary for overlapping 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 779 
3-year terms. A majority of the Board shall constitute a quorum. 
Any member of the Board who has served for 6 consecutive years 
shall thereafter be ineligible for appointment to the Board during 
a 2-ye£ir period following the expiration of such sixth year. 
"(b) MEMBERSHIP.— 
"(1) IN GENERAL.—^The Secretary shall designate one of the 
memlDers of the Board as Chairperson of the Board. A majority 
of the members of the Board shall be public interest rep-
resentatives, including students, and a minority shall be edu-
cational representatives. All members selected shall be individ-
uals able to contribute an important perspective on priorities 
for improvement in postsecondary education and strategies of 
educational and institutional change. 
"(2) APPOINTMENT OF DIRECTOR.—The Secretary shall appoint 
the Director of the Fund for the Improvement of Postsecondary 
Education (hereafter in this part referred to as the 'Director'). 
"(c) DUTIES.—The Board shall— 
"(1) advise the Secretary and the Director on priorities for 
the improvement of postsecondary education and make such 
recommendations as the Board may deem appropriate for the 
improvement of postsecondary education and for the evaluation, 
dissemination, and adaptation of demonstrated improvements 
in postsecondary educational practice; 
"(2) advise the Secretary and the Director on the operation 
of the Fund for the Improvement of Postsecondary Education, 
including advice on planning documents, guideUnes, and proce-
dures for grant competitions prepared by the Fund; and 
"(3) meet at the call of the Chairperson, except that the 
Board shall meet whenever one-third or more of the members 
request in writing that a meeting be held. 
"(d) INFORMATION AND ASSISTANCE.—The Director shall make 
available to the Board such information and assistance as may 
be necessary to enable the Bosird to carry out its functions. 
"SEC. 1003. ADAQNISTRATIVE PROVISIONS. 
"(a) TECHNICAL EMPLOYEES.—The Secretary may appoint, for 
terms not to exceed 3 years, without regard to the provisions 
of title 5 of the United States Code governing appointments in 
the competitive service, not more than 5 technical employees to 
administer this subpart who may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of such 
title relating to classification and General Schedule pay rates. 
"(b) PROCEDURES.—The Director shall estabUsh procedures for 
reviewing and evaluating grants and contracts made or entered 
into under this subpart. Procedures for reviewing grant apphcations 
or contracts for financial assistance imder this section may not 
be subject to any review outside of officials responsible for the 
administration of the Fimd for the Improvement of Postsecondary 
Education. 
«SEC. 1004. AUTHORIZATION OF APPROPRIATIONS. 
"(a) IN GENERAL.—^There are authorized to be appropriated to 
carry out this part (except for section 1001(b)) $20,000,000 for 
fiscal year 1993 and such sums as may be necessary for each 
of the 4 succeeding fiscal years. 
"(b) PLANNING GRANTS.—^There are authorized to be appropriated 
to carry out section 1001(b) $1,000,000 for fiscal year 1993 and 
20 use 1135a-l. 
20 use 1135a-2. 
106 STAT. 780 
PUBLIC LAW 102-325—JULY 23, 1992 
such sums as may be necessary for each of the 4 succeeding fiscal 
years. 
^Subpart 2—Special Projects in Areas of National 
Need 
20 use 1135a-ll. "SEC. 1011. SPECIAL PROJECTS. 
"(a) GRANT AUTHORITY.—^The Director is authorized to make 
grants to institutions of higher education, or consortia thereof, 
and such other public agencies and nonprofit organizations as the 
Director deems necessary for innovative projects concerning one 
or more areas of particular national need identified by the Director. 
"(b) APPLICATION.—No grant shall be made under this part imless 
an application is made at such time, in such manner, and contains 
or is accompanied by such information as the Secretary may require. 
"(c) AREAS OF NATIONAL NEED.—^Areas of national need shall 
initially include, but shall not be limited to, the following: 
"(1) International exchanges. 
"(2) Campus climate and culture. 
"(3) Ev£duation and dissemination. 
"(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this part $5,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years.". 
SEC. 1002. AMENDMENTS TO PART B. 
(a) MINORITY SCIENCE IMPROVEMENT PROGRAMS.—Section 1021(b) 
of the Act (20 U.S.C. 1135b(b)) is amended by inserting ", particu-
larly minority women," after "ethnic minorities". 
(b) MULTIAGENCY STUDY.—Section 1024 of the Act (20 U.S.C. 
1135b-3) is amended to read as follows: 
"MULTIAGENCY STUDY OF MINORITY SCIENCE PROGRAMS 
Reports. 
"SEC. 1024. The Secretary, in cooperation with the heads of other 
departments and agencies that operate programs similar in pur-
poses to the Minority Science Improvement Program which seek 
to increase minority participation and representation in scientific 
fields, shall submit a report to the President and Congress sum-
marizing and evaluating such programs by January 1,1996.". 
(c) SCIENCE AND ENGINEERING ACCESS.—Section 1033(5) of the 
Act (20 U.S.C. 1135c-2(5)) is amended by inserting ", particularly 
minority women," after "minority students". 
(d) CONSULTATION.—Section 1043 of the Act (20 U.S.C. 1135d-
2) is amended by inserting "and consult" after "cooperate". 
(e) ADVISORY PROVISIONS.—Section 1045 of the Act (20 U.S.C. 
1135d-4) is repealed. 
(f) REAUTHORIZATION OF PART B.—Section 1047 of the Act 
(20 
U.S.C. 1135d-6) is amended to read as follows: 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 1047. (a) AUTHORIZATIONS.—There are authorized to be 
appropriated to carry out the purposes of this part, $10,000,000 
for fiscal year 1993 and such sums as may be necessary for each 
of 
the 4 succeeding 
fisc£d 
years. 
"(b) APPROPRIATION LIMITATION.—For any fiscal year, 50 percent 
of the fiinds appropriated for this part shall be allocated for the 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 781 
purpose of section 1021, 33.33 percent for the purpose of section 
1031, and 16.67 percent for the purpose of section 1032.". 
SEC. 1003. WOMEN AND MZNORTTIES SCIENCE AND ENGINEERING OUT-
REACH DEMONSTRATION PROGRAM. 
Part C of title X of the Act (20 U.S.C. 1135e et seq.) is amended 
to read as follows: 
"PART C—WOMEN AND MINORITIES SCIENCE 
AND 
ENGINEERING 
OUTREACH 
DEM-
ONSTRATION PROGRAM 
"SEC. 1061. PURPOSE. 
"It is the purpose of this part to provide greuits to institutions 
working in partnership with elementary and secondary schools 
to establish outreach programs for female and minority elementsuy 
and secondary school students to increase the participation of those 
students in science and engineering imdergraduate and graduate 
degree programs. 
«SEC. 1062. PROGRAM AUTHORIZED. 
"The Secretguy shall, in accordance with the provision of this 
part, award grants to eligible institutions to enable such eligible 
institutions to pay the Federal share of the costs of canying out 
a program that is designed to enhance, coordinate, develop, and 
expand programs and initiatives which identify and encourage 
female and minority elementary and secondary school students 
to pursue higher education in preparation for careers in science 
£uid engineering. 
«SEC. 1063. ELIGIBLE INSTITUTIONS. 
"(a) DEFINITION.—For the purpose of this part the term 'eligible 
institution' means an institution of higher education which— 
"(1) has science and engineering programs; 
"(2) has female and minority enrollment and retention rates 
signific£uitly higher than the national averages of such rates, 
but does not meet the definition of 'minority institution' set 
forth in section 1046(3); 
"(3) demonstrates its ability to conduct outreach activities 
in science and engineering to female and minority students 
at the elementary and secondary school levels; 
"(4) incorporates the use of advanced telecommimications 
equipment, including fiber optics and interactive video systems, 
to improve the development of intermod^ programs targeted 
toward female and minority students; 
"(5) enters into a partnership agreement with a local edu-
cational agency and at least 1 loc^ business or industry; and 
"(6) describes in the application submitted pursuant to section 
1065 the duties of each partner entering into the partnership 
agreement described in paragraph (5). 
"(b) LIMITATION.—^The Secretary shall award at least 40 percent 
of the total funds made available under this section in any fiscal 
year to eligible institutions located in any of the Nation's ten 
largest metropolitan statistical areas. 
20 use 1135e. 
20 use 1135e-l. 
20 u s e 1135e-2. 
106 STAT. 782 
PUBLIC LAW 102-325—JULY 23, 1992 
20 u s e 1135e-3. 
"SEC. 1064. AMOUNT, DURATION, AND USE OF FUNDS. 
"(a) AMOUNT AND DURATION OF GRANTS.—Grants under this part 
shall be provided in an amount which is not less than $500,000 
in a single fiscal year, and shall be continued for a period not 
to exceed 5 fiscal years. 
"(b) USE OF GRANTS.—Grants provided under this section may 
be used for— 
"(1) the operation and administration of outreach programs 
to elementary and secondary school students; 
"(2) faculty development programs in support of outreach 
programs; 
"(3) curriculum development in support of the outreach pro-
grams; 
/ 
"(4) disseminating information about the outreach programs 
to elementary £ind secondary schools and institutions of higher 
education; 
"(5) supporting cooperative efforts with elementary and sec-
ondary schools, community groups, business £ind industry, and 
other education-related groups, to expand the scope of the out-
reach programs; and 
"(6) establishing infirastructure necessary to operate pro-
grams, specifically including telecommimications equipment 
providing distance learning capabilities. 
20 u s e 1135e-4. 
"SEC. 1065. APPLICATION. 
"To receive a grant under this part, an eligible institution shall 
submit an application at such time, in such manner, and containing 
or accompanied by such information, as the Secretary may reason-
ably require. Each such application shall contain a description 
of the goals of the activities to be assisted. 
20 u s e 1135e-5. 
"SEC. 1066. EVALUATION. 
"(a) INDEPENDENT ANNUAL EVALUATION.—The Secretary shall 
provide for the annual independent evaluation of activities assisted 
under this part to determine their effectiveness in providing— 
"(1) the operation and administration of outreach programs 
to elementary and secondary school students; 
"(2) faculty development programs in support of outreach 
programs; 
- 
"(3) curriculum development in support of the outreach pro-
grams; 
"(4) disseminating information about the outreach programs 
to elementary and secondary schools and institutions of higher 
education; 
"(5) supporting cooperative efforts with elementary and sec-
ondary schools, commimity groups, business and industry, and 
other education-related groups, to expand the scope of outreach 
programs; and 
"(6) establishing infi-astructure necessary to operate pro-
grams, specifically including telecommunications equipment 
providing distance learning capabilities. 
"(b) EVALUATIONS.— 
"(1) CONDUCT AND CRITERIA.—Each evaluation described in 
subsection (a) shall be conducted by individuals not directly 
involved in the administration of the activities assisted under 
this part. Such independent evaluators and the program 
administrators shall jointly develop evaluation criteria which 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 783 
provide for appropriate analysis of the factors described in 
subsection (a). When possible, each evaluation shall include 
comparisons with appropriate control groups, 
"(2) PROGRAM EFFECTIVENESS.—In order to determine the 
effectiveness of assistance provided imder this pcirt in achieving 
the goals stated in the application described in section 1065, 
each evaluation described in subsection (a) shall contain objec-
tive measures of such goals and, where feasible, shall obtain 
the specific views of participants about the activities assisted 
under this part. 
"(c) REPORT TO CONGRESS AND DISSEMINATION.—The Secretary 
shall prepare and submit to the Congress a review and summary 
of the results of the evaluations described in subsection (a) not 
later than September 30,1997. 
''SEC. 1067. FEDERAL SHARE. 
"The Federsd share of the costs of activities assisted under this 
part shall be 90 percent of the costs of such activities in the 
first year an eligible institution receives a grant under this part, 
80 percent of such cost in the second such year, 70 percent of 
such cost in the third such year, 60 percent of such cost in the 
fourth such yesir, and 50 percent of such costs in the fifth such 
year. The remaining funds shsJl be provided fi-om non-Federal 
sources. 
"SEC. 1068. SUPPLEMENT NOT SUPPLANT. 
"An eligible institution may use funds received under this part 
only so as to supplement and, to the extent practicable, increase 
the level of funds that would be available 
fi*om 
non-Federal sources 
for the activities described in section 1064(b) and in no case may 
such funds be so used as to supplant such fiinds fi:om such non-
Federal sources. 
"SEC. 1069. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out this part, 
$10,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years. Not more than 3 percent 
of the amoimt appropriated for thiis part in any fiscal year may 
be used for purposes of section 1066.". 
SEC. 1004. DWIGHT D. EISENHOWER LEADERSHIP PROGRAM. 
Title X of the Act (20 U.S.C. 1135 et seq.) is amended by adding 
at the end the following new part: 
"PART D—DWIGHT D. EISENHOWER 
LEADERSHIP PROGRAM 
"SEC. 1181. SHORT TITLE; ESTABUSHMENT OF THE PROGRAM. 
"(a) SHORT TITLE.—This part may be cited as the 'Dwight D. 
Eisenhower Leadership Development Act of 1992'. 
"(b) ESTABLISHMENT OF PROGRAM.— 
"(1) IN GENERAL.—^The Secretary shall establish a program 
to be known as the 'Dwight D. Eisenhower Leadership Develop-
ment Program'. 
"(2) SPECIAL RULE.—^The program assisted under this part 
shsdl be established in comunction with institutions of higher 
education which are speciaUy prepared to undertake the devel-
20 use 1135e-6. 
20 u s e 1135e-7. 
20 u s e 1135e-8. 
Dwight D. 
Eisenhower 
Leadership 
Development 
Act of 1992. 
20 u s e 1135f. 
106 STAT. 784 
PUBLIC LAW 102-325—JULY 23, 1992 
opment of new generations of leaders in the areas of national 
and international affairs. 
"(c) FUNCTIONS OF THE PROGRAM.—The functions of the program 
assisted under this part shall include— 
"(1) stimulating £ind supporting the development of leadership 
skills among new generations of American college students; 
"(2) directing a national program that identifies, recruits, 
inspires, and educates outstanding young men and women 
regarding leadership roles in a wide variety of fields in both 
the pubUc and private sectors; 
"(3) offering opportunities for young American leaders who 
meet the requirements of section 484(a) of this Act and who 
are broadly representative of the population of the United 
States to benefit from internships in national and international 
organizations, with special attention being given to establishing 
such opportunities in developing countries; 
"(4) developing curriculum for secondary and postsecondary 
education; 
"(5) developing a prototype for understanding and teaching 
critical leadership skills to young Americans and encouraging 
institutions of higher education to establish similar leadership 
programs throughout the United States and abroad; and 
"(6) stimulating the theoretical and practical study of leader-
ship and leadership development to develop both a better under-
standing of leadership and improved methods to teach critical 
skills to young adults. 
"(d) OPERATION OF THE PROGRAM.—The Secretary is authorized 
to make grants to or enter into cooperative agreements, contracts, 
or leases with institutions of higher education (as defined in section 
1201 of this title) or with nonprofit private organizations in con-
sortia with such institutions to operate the program assisted under 
this part. 
"(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $10,000,000 for fiscal year 1993 and such sums 
as may be necessarv for each of the 4 succeeding fiscal years 
to carry out this part. . 
TITLE XI—COMMUNITY SERVICE 
PROGRAMS 
SEC. 1101. URBAN COMMUNITY SERVICE. 
Title XI of the Act (20 U.S.C. 1136 et seq.) is amended to read 
as follows: 
**TITLE XI—COMMUNITY SERVICE 
PROGRAMS 
"PART A—URBAN COMMUNITY SERVICE 
20 use 1136. 
"SEC. 1101. FINDINGS. 
**The Congress finds that— 
"(1) the Nation's urban centers are facing increasingly press-
ing problems and needs in the areas of economic development, 
commimity infi-astructure and service, social poUcy, public 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 785 
health, housing, crime, education, environmental concerns, 
planning and work force preparation; 
"(2) there are, in the Nation's urban institutions, people with 
underutilized skills, knowledge, and experience who are capable 
of providing a vast range of services toward the amelioration 
of the problems described in paragraph (1); 
"(3) the skills, knowledge and experience in these urban 
institutions, if applied in a systematic and sustained manner, 
can make a significant contribution to the solution of such 
problems; and 
"(4) the application of such skills, knowledge and experience 
is hindered by the limited funds available to redirect attention 
to solutions to such urban problems. 
"SEC. 1102. PURPOSE; PROGRAM AUTHORIZED. 
20 USC 1136a. 
"(a) PURPOSE.—It is the purpose of this part to provide incentives 
to urban academic institutions to enable such institutions to work 
with private and civic organizations to devise and implement solu-
tions to pressing and severe problems in their communities. 
"(b) PROGRAM AUTHORIZED.—The Secretary is authorized to carry 
out a program of providing assistance to eUgible institutions to 
enable such institutions to carry out the activities described in 
section 1104 in accordance with the provisions of this part. 
"SEC. 1103. APPUCATION FOR URBAN COMMUNITY SERVICE GRANTS. 
20 USC 1136b. 
"(a) APPLICATION.— 
"(1) IN GENERAL.—^An eUgible institution seeking assistance 
under this part shall submit to the Secretary an application 
at such time, in such form, and containing or accompguiied 
by such information and assurances as the Secretary may 
require by regulation. 
"(2) CONTENTS.—Each application submitted pursuant to 
paragraph (1) shall— 
"(A) describe the activities eind services for which assist-
ance is sought; and 
"(B) include a plan that is agreed to by the members 
of a consortium that includes, in addition to the eligible 
institution, one or more of the following entities: 
"(i) A commiinity college, 
"(ii) An urban school system, 
"(iii) A local government, 
"(iv) A business or other employer, 
"(v) A nonprofit institution. 
"(3) WAIVER.—The Secretary may waive the consortium 
requirements described in paragraph (2) for any applicant who 
can demonstrate to the satisfaction of the Secretary that the 
apphc£int has devised an integrated and coordinated plan which 
meets the purpose of this part. 
"(b) PRIORITY IN SELECTION OF APPLICATIONS.—The Secretary 
shall give priority to applications that propose to conduct joint 
projects supported by other local. State, and Federal programs. 
"(c) SELECTION PROCEDURES.—The Secretary shall, by regulation, Regulations, 
develop a formal procedure for the submission of applications under 
^ ^ ^ ^ j . 
this part and shaU publish in the Federal Register an announcement ^Swication. 
of that procedure and the availability of funds under this part. 
106 STAT. 786 
PUBLIC LAW 102-325—JULY 23, 1992 
20 use 1136c. 
"SEC. 1104. ALLOWABLE ACTIVITIES. 
"Funds made available under this part shall be used to support 
planning, applied resesirch, training, resource exchanges or tech-
nology transfers, the delivery of services, or other activities the 
purpose of which is to design and implement programs to assist 
urbgin commimities to meet and address their pressing and severe 
problems, such as the following: 
"(1) Work force preparation. 
"(2) Urban poverty and the alleviation of such poverty. 
"(3) Health care, including delivery and access. 
"(4) Underperforming school systems and students. 
"(5) Problems faced by the elderly and individuals with dis-
abilities in urban settings. 
"(6) Problems faced by families and children. 
"(7) Campus and commimity crime prevehtion, including 
enhanced security and safety awareness measures as well as 
coordinated programs addressing the root causes of crime. 
"(8) Urban housing. 
"(9) Urban infrastructure. 
"(10) Economic development. 
"(11) Urban environmental concerns. 
"(12) Other problem areas which participants in the consor-
tium described in section 1103(a)(2)(B) concur are of high prior-
ity in the urban area. 
"(13)(A) Problems faced by individuals with disabilities 
regarding accessibility to institutions of higher education and 
other public £ind private community faciUties. 
"(B) Amelioration of existing attitudinal barriers that prevent 
full inclusion by individuals with disabilities with their commu-
nity. 
20USC1136d. 
"SEC. 1105. PEER REVIEW. 
"The Secretary shall designate a peer review panel to review 
appUcations submitted under this psirt and make recommendations 
for funding to the Secretsiry. In selecting the peer review panel, 
the Secretary may consult with other appropriate Cabinet-level 
officials and with non-Federal organizations, to ensure that the 
panel will be geographically balanced and be composed of rep-
resentatives from public and private institutions of higher edu-
cation, labor, business, State and local government, who have exper-
tise in urban community service or in education. 
20USC1136e. 
"SEC. 1106. DISBURSEMENT OF FUNDS. 
"(a) MuLTiYEAR AVAILABILITY.—Subject to the availability of 
appropriations, grants imder this part may be made on a multiyear 
basis, except that no institution, individually or as a participant 
in a consortium of such institutions, may receive a grant for more 
than 5 years. 
"(b) EQUITABLE GEOGRAPHIC DISTRIBUTION.—The Secretary shall 
award grants under this part in a manner that achieves equitable 
geographic distribution of such grants. 
"(c) MATCHING REQUIREMENT.—^An applicant under this part and 
the local governments associated with its application shall contrib-
ute to the conduct of the program supported by the grant an 
amount from non-Federal funds equal to at least one-fourth of 
the amount of the grant, which contribution may be in cash or 
in kind. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 787 
•*SEC. 1107. DESIGNATION OF URBAN GRANT INSTITUTIONS. 
20 USC 1136f. 
'The Secretary shall publish a list of eUgible institutions under 
this part and shall designate these institutions of higher education 
as *Urban Grant Institutions'. The Secretary shall establish a 
national network of Urban Grant Institutions so that the results 
of individual projects achieved in one metropoUtan area can then 
be generalized, disseminated, replicated and applied throughout 
the Nation. 
*«EC. 1108. DEFINITIONS. 
20 USC 1136g. 
''As used in this part: 
"(1) URBAN AREA.—The term 'urban area' means a metropoli-
tan statistical area having a population of not less than 350,000, 
or two contiguous metropoUtan statistical areas having a popu-
lation of not less than 350,000, or, in any State which does 
not have a metropolitan statistical area which has such a 
population, the entity of the State haviug an agreement or 
submitting an appUcation under section 1103, or, if no such 
entity has an agreement, the Secretary shall designate one 
urban area for the purposes of this part. 
"(2) ELIGIBLE INSTITUTION.—The term 'eUgible institution' 
means— 
"(A) a nonprofit mimicipal university, estabUshed by the 
governing body of the city in which it is located, and 
operating as of the date of enactment of the Higher Edu-
cation Amendments of 1992 under that authority; or 
"(B) an institution of higher education, or a consortium 
of such institutions any one of which meets all of the 
requirements of this paragraph, which— 
"(i) is located in an urban area; 
"(ii) draws a substantial portion of its imdergraduate 
students 
fi*om 
the urban area in which such institution 
is located, or from contiguous areas; 
"(iii) carries out programs to make postsecondary 
educational opportunities more accessible to residents 
of such urban area, or contiguous areas; 
"(iv) has the present capacity to provide resources 
responsive to the needs and priorities of such urban 
area and contiguous areas; 
*
*
(
v
) offers a range of professional, technical, or grad-
uate programs sufficient to sustain the capacity of 
such institution to provide such resources; and 
"(vi) has demonstrated and sustained a sense of 
responsibility to such urban area and contiguous areas 
and the people of such areas. 
«SEC. 1109. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 1136h. 
"There are authorized to be appropriated $20,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of tJie 
4 succeeding fiscal years to carry out the provisions of this part. 
106 STAT. 788 
PUBLIC LAW 102-325—JULY 23, 1992 
"PART B—INNOVATIVE PROJECTS 
"Subpart 1—Innovative Projects for Community 
Service 
20 u s e 1137. 
"SEC. 1121. STATEMENT OF PURPOSE. 
"It is the purpose of this subpart to support innovative projects 
in order to encourage student participation in community service 
projects, including hteracy projects. 
20 u s e 1137a. 
"SEC. 1122. INNOVATIVE PROJECTS FOR COMMUNITY SERVICE. 
"(a) PROGRAM AUTHORIZED.— 
"(1) IN GENERAL.—^The Secretary is authorized, in accordsince 
with the provisions of this subpart, to make grants to and 
enter into contracts with institutions of higher education 
(including combinations of such institutions) and with such 
other public agencies and nonprofit private organizations as 
the Secretary deems necessary for innovative projects designed 
to carry out the purpose of this subpart. 
"(2) PROJECTS.—The projects described in paragraph (1) 
may— 
"(A) support research regarding the effects of student 
community service organizations; 
"(B) provide assistance to student organizations that 
work with commimity service organizations; 
"(C) support linkages between youth corps as defined 
in section 101(30) of the National and Community Service 
Act of 1990 and institutions of higher education; and 
"(D) support innovative student service programs. 
"(b) APPLICATIONS.—No grant may be made and no contract may 
be entered into imder this section unless an application is made 
at such time, in such manner, and containing or accompanied 
by such information as the Secretary may require, 
"(c) APPLICABLE PROCEDURES.— 
"(1) PROCEDURES.—^No application may be approved under 
subsection (b) unless the National Board of uie Fund for 
Improvement of Postsecondary Education, under procedures 
established by the Director of such Fund, approves the applica-
tion. 
"(2) SPECIAL RULE.—The provisions of section 1003(b) shall 
apply to grants made under this subpart. 
"(d) DEFINITION.—For the purpose of this subpart, the term 'com-
munity service' means planned, supervised services designed to 
improve the quality of life for community residents, pcirticularly 
community residents with low income, or to assist in the solution 
of particular problems related to the needs of such residents. 
''Subpart 2—Student Literacy Corps and Student 
Mentoring Corps 
20 u s e 1138. 
"SEC. 1141. PURPOSE. 
"It is the purpose of this subpart to provide financial assistance 
to institutions of higher education to promote the development 
of literacy corps programs and mentoring corps programs to be 
operated by institutions of higher education in public community 
agencies in the communities in which such institutions are located. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 789 
•«EC. 1142. LITERACY CORPS PROGRAM AND MENTORING CORPS PRO- 20 USC 1138a. 
GRAM. 
"(a) GENERAL AUTHORITY.—From the amount appropriated for 
this subpart pursuant to section 1151 for any fiscal year, the Sec-
retary is authorized, in accordance with the provisions of this sub-
part, to make grants to institutions of higher education for not 
more than 4 years to pay the Federal share of the cost of carrying 
out a student literacy corps program or a student mentoring corps 
program. 
"(h) LIMITATION.—^An institution of higher education shall only 
receive 1 grant under this subpart in each fiscal year. 
"(c) 
CONTINUATION OF LITERACY OR MENTORING PROGRAM.— 
Grants under this section are renewable upon application by the 
institution of higher education in accordance wim section 1144. 
"(d) FEDERAL SHARE.— 
"(1) IN GENERAL.—The Federal share of carrying out a student 
literacy corps program or a student mentoring corps program 
under this subpart shall be— 
"(A) not more than 100 percent for an initial grant to 
an institution of higher education; and 
"(B) not more than 75 percent for a grant renewed under 
subsection (c). 
"(2) NON-FEDERAL SHARE.—The non-Federal share of carrying 
out a student literacy corps or a student mentoring corps pro-
gram imder this subpart may be paid from any non-Federal 
sources. 
**SEC. 1143. USES OF FUNDS. 
20 USC 1138b. 
"(a) IN GENERAL.—Funds made available under this subpart may 
be used for— 
"(1) grants to institutions of higher education for— 
(A) the costs of participation of institutions of higher 
education in the student Uteracy corps program or student 
mentoring corps program for which assistance is sought; 
and 
"(B) stipends for student coordinators engaged in the 
student Uteracy corps program or student mentoring corps 
program for which assistance is sought; and 
"(2) technical assistance, collection and dissemination of 
information, and evaluation in accordance with section 1145. 
"(b) LIMITATIONS.—No grant under this subpart to an institution 
of higher education may exceed $100,000. No institution of higher 
education may expend more than $35,000 of a grant made under 
this subpart in the first year in which the institution receives 
such a grant. 
•«EC. 1144. APPUCATIONS. 
20 USC 1138c. 
"(a) APPLICATION REQUIRED.—^Each institution of higher education 
desiring to receive a grant under this subpart shall submit an 
appHcation to the Secretary, at such time, in such manner, and 
containing or accompanied by such information as the Secretsuy 
may reasonably require. 
"(b) CONTENTS OF APPLICATION.— 
"(1) LITERACY CORPS.—Each appUcation to conduct a student 
literacy corps program imder this subpart shall— 
"(A) contain assurances that the institution will use the 
grant in accordance with section 1143; 
106 STAT. 790 
PUBLIC LAW 102-325—JULY 23, 1992 
"(B) contain adequate assurances that— 
"(i) the institution has estabUshed 1 or more courses 
of instruction for academic credit which are designed 
to combine the training of undergraduate students in 
various academic departments such as social sciences, 
economics, and education with experience as tutors; 
"(ii) such individuals will be required, as a condition 
of receiving credit in such course, to perform, for each 
credit, not less than 2 hours a week, of voluntary, 
uncompensated service during the academic term in 
a public community agency as a tutor in such agenc^s 
educational or literacy program; 
"(iii) such tutoring service will be supplementary 
to tiie existing instructional services, offered in a struc-
tured classroom setting, and furnished under the 
supervision of qualified personnel; and 
"(iv) the institution will locate such tutoring services 
in one or more public community agencies wWch serve 
educationally or economically disadvantaged individ-
uals, and will give priority in providing tutoring serv-
ices to— 
"(I) educationally disadvantaged students receiv-
ing services imder chapter 1 of title I of the 
Elementary and Secondary Education Act of 1965; 
"(II) students with disabihties; and 
"(III) illiterate parents of educationally or eco-
nomically disadvantaged elementary school stu-
dents, with special emphasis on single-parent 
households; and 
"(C) demonstrate that the institution of higher education 
has participated, prior to applying for a grant under this 
subpart, in community service activities, including the con-
duct of a cooperative education program; and 
"(D) contain such other assurcuices as the Secretary may 
reasonably require. 
"(2) MENTORING CORPS.—Each appUcation to conduct a stu-
dent mentoring corps program under this subpart shall— 
"(A) contain assurances that the institution will use the 
grant in accordance with section 1144; 
"(B) contain adequate assurances that— 
"(i) the institution has estabUshed 1 or more courses 
of instruction for academic credit which are designed 
to combine the training of undergraduate students of 
various academic dep£ui;ments with experience as men-
tors; 
"(ii) such individuals will be required, as a condition 
of receiving credit in such course, to perform not less 
than 60 hours of voluntary, uncompensated service 
during the academic term as a mentor to economically 
disadvantaged children and youth; 
"(iii) such mentoring will be complimentary to the 
existing instructional services offered in a structured 
classroom setting, and will include structured and 
informal activities geared towards improving the aca-
demic, social and emotional development of children 
* 
in the programs; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 791 
**(iv) the institution will locate public community 
agencies or elementsiry or secondary schools which 
serve educationally or economically disadvEinta^ed 
youth and will give priority in providing mentoring 
services to economically disadvantaged children and 
youth through community-based organizations or 
elementary or secondary schools; 
"(C) demonstrate that the institution of higher education 
has participated, prior to applying for a grant under this 
subpart, in community service activities, including the con-
duct of a cooperative education program; and 
"(D) contain such other assurances as the Secretary may 
reasonably require. 
"(c) WAIVER.— 
"(1) IN GENERAL.—^The Secretary may, upon request of an 
institution of higher education which does not meet the require-
ments of subsection (b)(1)(C) or (b)(2)(C), grant a waiver of 
the requirement under such paragraph if the institution of 
higher education provides assurances that— 
"(A) the institution of higher education has conducted 
smother significant program which involves community out-
reach £md service; or 
"(B) its failure to engage in community service-related 
programs or activities prior to making appUcation imder 
this subpart will not impede the ability of the institution 
to engage in the outreach efforts necessary to csirry out 
the requirements of this subpart. 
"(2) SPECIAL RULE.—^An institution of higher education may 
apply for a waiver as psirt of the appUcation described in 
subsection (b). 
"(d) CARRYOVER OF FUNDS.—Notwithstanding smy other provision 
of law, in any fiscal year in which funds are appropriated under 
this subpart but not expended by the end of such fiscal year, 
at least 75 percent of such funds shall remain available in the 
succeeding fiscal year to carry out this subpart. 
••SEC. 1145. TECHNICAL ASSISTANCE AND COORDINATION CONTRACT. 20 USC 1138d. 
"To the extent that fimds are available therefor pursuant to 
section 1151, the Secretary may, directly or by way of grant, con-
tract, or other arrangement— 
"(1) provide technical assistance to grant recipients under 
this subpart; 
"(2) collect and disseminate information with respect to pro-
grams assisted under this subpart; and 
"(3) evaluate such programs and issue reports on the results 
of such evaluations. 
**SEC. 1146. DEFINITIONS. 
20 USC 1138e. 
"For the purpose of this subpart— 
"(1) INSTITUTION OF HIGHER EDUCATION.—The term 'institu-
tion of higher education', in the case of an institution of higher 
education with a branch campus, means, at the election of 
the institution— 
"(A) a branch campus of the institution; or 
"(B) the institution. 
"(2) PUBLIC COMMUNITY AGENCY.—The term 'pubUc commu-
nity agency* means an established community agency with an 
established program of instruction such as elementary and 
106 STAT. 792 
PUBLIC LAW 102-325—JULY 23, 1992 
secondary schools, Head Start centers, prisons, agencies serving 
youtii, and agencies serving individuals with disabilities, includ-
ing disabled veterans. 
^'Subpart 3—Authorization of Appropriations 
20 use 1139. 
«SEC. 1161. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated $15,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of the 
4 succeeding fiscal years of which, for any such fiscal yesir— 
"(1) not more than one-third shaJl be available to carry out 
subpart 1; and 
"(2) not less than two-thirds shall be available to carry out 
subp£irt 2". 
TITLE XII—GENERAL PROVISIONS AND 
DEMONSTRATION PROGRAMS 
SEC. 1201. DEFINITIONS. 
Section 1201 of the Act (20 U.S.C. 1141) is amended— 
(1) in subsection (a)^ 
(A) in the first sentence, by striking ", or if not so 
accredited" through "institution so accredited"; and 
(B) in the last sentence— 
(i) by inserting *
*
, pursuant to subpart 3 of part 
H," after "determines"; and 
(ii) by inserting "the education or" after "quality 
of; 
(2) by striking subsections (d) through (k) and inserting the 
following: 
"(d) The term 'secondary school' has the same meaning given 
that term under section 1471(21) of the Elementary and Secondary 
Education Act of 1965. 
"(e) The term 'Secretarsr* means the Secretary of Education. 
"(f) The term local educational agency* has the same meaning 
given that term under section 1471(12) of the Elementary and 
Secondary Education Act of 1965. 
"(g) The term 'State educational agency* has the same meaning 
given that term under section 1471(23) of the Elementary and 
Secondary Education Act of 1965. 
"(h) The term 'State higher education agency* means the officer 
or agency primarily responsible for the State supervision of higher 
education. 
"(i) The term 'elementary school' has the same meaning given 
that term under section 1471(8) of the Elementeiry and Secondary 
Education Act of 1965. 
"(j) The term 'combination of institutions of higher education' 
means a group of institutions of higher education that have entered 
into a cooperative arrangement for the purpose of carrying out 
a common objective, or a public or private nonprofit agency, 
organization, or institution designated or created by a group of 
institutions of higher education for the purpose of canying out 
a common objective on their behalf. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 793 
**(k) The term 'gifted and talented children* has the same meaning 
given that term imder section 4103(1) of the Elementary and Sec-
ondary Education Act of 1965."; and 
(3) by adding at the end the following new subsections: 
"(n) The term '(fisability* has the same meaning given that term 
under section 3(2) of the Americans With Disabilities Act of 1990 
(42 U.S.C. 12102(2)). 
"(o) The term 'special education teacher' means teachers who 
teach children with disabiUties as defined in the Individuals With 
Disabilities Education Act. 
"(p) The term 'service-learning' has the same meaning given 
that term under section 101(22) of the National and Community 
Service Act of 1990.". 
SEC. 1202. ANTIDISCRIMINATION. 
Section 1202 of the Act (20 U.S.C. 1142) is amended— 
(1) by inserting "(a) IN GENERAL.—" after "SEC. 1202."; and 
(2) by adding at the end the following: 
"(b) LIMITATIONS ON STATUTORY CONSTRUCTION.—Nothing in this 
Act shall be construed to limit the rights or responsibilities of 
any individual under the Americans With Disabilities Act of 1990, 
the Rehabilitation Act of 1973, or any other law.". 
SEC. 1203. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL 
QUALITY AND INTEGRITY. 
Section 1205 of the Act (20 U.S.C. 1145) is amended to read 
as follows: 
"SEC. 1205. COMMITTEE ON INSTITUTIONAL QUALITY AND INTEGRITY. 
"(a) ESTABLISHMENT.—There is established in the Department 
a Committee on Institutional Quahty and Integrity (hereeifter in 
this section referred to as the 'Committee'), which shall be composed 
of 15 members appointed by the Secretary from among individuals 
who are representatives of, or knowledgeable concerning, education 
and training beyond secondary education, including representatives 
of all sectors and types of institutions of higher education (as 
defined in section 481(a)), to assess the process of eUgibihty and 
certification of such institutions imder title IV of tWs Act and 
the provision of financial aid under title IV of this Act. The Sec-
retary may gJso appoint to the Committee representatives of the 
general public serving on the National Advisory Committee on 
Accreditation and Institutional Eligibility (as such Committee was 
in existence on the date of enactment of the Higher Education 
Amendments of 1992). 
"(b) TERMS OF MEMBERS.—^Terms of office of each member of 
the Committee shall be 3 years, except that— 
"(1) of the members first appointed to the Committee the 
Secretary shall designate— 
"(A) 5 such members to serve for a term of 1 year; 
"(B) 5 such members to serve for a term of 2 years; 
and 
"(C) 5 such members to serve for a term of 3 years; 
and 
"(2) any member appointed to fill in a vacancy occurring 
prior to the expiration of the term for which tiie member's 
predecessor was appointed shall be appointed for the remainder 
of such term. 
"(c) FUNCTIONS.—The Committee shall— 
106 STAT. 794 
PUBLIC LAW 102-325—JULY 23, 1992 
V 
"(1) advise the Secretary with respect to establishment and 
••'^: enforcement of the standards of accrediting agencies or associa-
tions under subpart 2 of part H; 
"(2) advise the Secretary with respect to the recognition of 
3 
a specific accrediting agency or association; 
(3) advise the Secretary with respect to the preparation 
and pubHcation of the Hst of nationally recognized accrediting 
agencies and associations; 
"(4) develop and recommend to the Secretary stsindards and 
criteria for specific categories of vocational training institutions 
and institutions of higher education for which there are no 
recognized accrediting agencies, associations, or State agencies, 
in order to establish the eligibility of such institutions on an 
interim basis for participation in federally funded programs; 
"(5) advise the Secretary with respect to the eligibility and 
certification process for institutions of higher education under 
title IV of this Act, together with recommendations for improve-
^ 
ments in such process; 
"(6) advise the Secretary with respect to the functions of 
the Secretary under subpart 1 of part H, relating to State 
institutional integrity standards; 
"(7) advise the Secretary with respect to the relationship 
between— 
"(A) accreditation of institutions of higher education and 
the certification and eligibility of such institutions; and 
"(B) State licensing responsibilities with respect to such 
institutions; and 
"(8) carry out such other advisory functions relating to 
accreditation and institutional eligibility as the Secretary may 
prescribe. 
"(d) MEETING PROCEDURES.—The Committee shall meet not less 
than twice each year at the call of the Chairperson. The date 
of, and agenda for, each meeting of the Committee shall be submit-
ted in advance to the Secretary for approval. A representative 
of the Secretary shall be present at all meetings of the Committee. 
"(e) REPORT.—^The Committee shall, not later than November 
30 of each year, make an annual report through the Secretary 
to the Congress. The annual report shall contain— 
"(1) a list of the members of the Committee and their 
addresses; 
"(2) a list of the functions of the Committee; 
"(3) a list of dates and places of each meeting during the 
preceding fiscal year; and 
"(4) a 
summary 
of the 
activities, 
findings 
and 
rec-
ommendations made by the Committee during me preceding 
fiscal year. 
"(f) TERMINATION.—Subject to section 448(b) of the General Edu-
cation Provision Act, the National Advisory Committee on Accredita-
tion and Institutional Eligibility shall continue to exist imtil Sep-
tember 30,1998.". 
SEC. 1204. DISCLOSURE OF FOREIGN GIFTS AND FOREIGN OWNERSHIP. 
Title XII of the Act (20 U.S.C. 1141 et seq.) is amended by 
inserting after section 1208 the following section: 
20USC1145d. 
«SEC. 1209. DISCLOSURES OF FOREIGN GIFTS. 
"(a) DISCLOSURE REPORT.—Whenever £uiy institution is owned 
or controlled by a foreign source or receives a gift fi-om or enters 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 795 
into a contract with a foreign source, the value of which is $250,000 
or more, considered alone or in combination with all other gifts 
from or contracts with that foreign source within a calendar year, 
the institution shall file a disclosure report with the Secretary 
on January 31 or July 31, whichever is sooner. 
"(b) CONTENTS OF REPORT.—Each report to the Secretary required 
by this Act shall contain: 
"(1) For gifts received from or contracts entered into with 
a foreign source other than a foreign government, the aggregate 
dollar amoimt of such gifts and contracts attributable to a 
particular country. The country to which a gift is attributable 
is the country of citizenship, or if imknown, the principal resi-
dence for a foreign source who is a natural person, and the 
^ 
country of incorporation, or if unknown, the principal place 
of business, for a foreign source which is a legsd entity. 
"(2) For gifts received from or contracts entered into with 
a foreign government, the aggregate amount of such gifts and 
contracts received from each foreign government. 
"(3) In the case of an institution which is owned or controlled 
by a foreign source, the identity of the foreign source, the 
date on wluch the foreign source assumed ownership or control, 
and any changes in program or structure resulting from the 
change in ownership or control. 
"(c) ADDITIONAL DISCLOSURES FOR RESTRICTED AND CONDITIONAL 
GIFTS.—Notwithstanding the provisions of subsection (b), whenever 
any institution receives a restricted or conditional gift or contract 
from a foreign source, the institution shall disclose: 
"(1) For such gifts received from or contracts entered into 
with a foreign source other than a foreign government, the 
amoimt, the date, and a description of such conditions or restric-
tions. ITie report shall also disclose the coimtry of citizenship, 
or if unknown, the principal residence for a foreign source 
which is a natural person, and the countiy of incorporation, 
or if unknown, the principal place of business for a foreign 
source which is a legal entity. 
"(2) For gifts received from or contracts entered into with 
a foreign government, the amoimt, the date, a description of 
such conditions or restrictions, and the name of the foreign 
government. 
"(d) RELATION T
O OTHER REPORTING REQUIREMENTS.— 
"(1) STATE REQUIREMENTS.—If an institution described under 
subsection (a) is within a State which has enacted requirements 
for public disclosure of gifts from or contracts with a foreign 
source that are substantially similar to the requirements of 
this section, a copy of the disclosure report filed witii the 
State may be filed with the Secreteiry in lieu of a report required 
under subsection (a). The State in which the institution is 
located shall provide to the Secretary such assurances as the 
Secretary may require to establish that the institution has 
met the requirements for public disclosure under State law 
if the State report is filed. 
"(2) USE OF OTHER FEDERAL REPORTS.—If an institution 
receives a gift from, or enters into a contract with, a foreign 
source, where any other department, agency, or bureau of the 
Executive Branch requires a report containing requirements 
substantially similar to those required imder mis Act, a copy 
106 STAT. 796 
PUBLIC LAW 102-325—JULY 23, 1992 
of this report may be filed with the Secretary in Heu of a 
report required under subsection (a). 
"(e) FUBLic INSPECTION.—^All disclosure reports required by this 
Act shall be pubUc records open to inspection and copjdng during 
business hours. 
"(f) ENFORCEMENT.— 
"(1) COURT ORDERS.—^Whenever it appears that an institution 
has failed to comply with the requirements of this section, 
including any rule or regulation promulgated thereimder, a 
civil action may be brought in an appropriate district court 
of the United States, or the appropriate United States court 
of any territory or other place subject to the jurisdiction of 
the United States, to request such court to compel compliance 
with the requirements of the Act. 
"(2) COSTS.—-For knowing or willful failure to comply with 
the requirements of this section, including any rule or regula-
tion promulgated thereimder, an institution shall pay to the 
Treasury of the United States the full costs to the United 
States of obtaining compliance, including all associated costs 
of investigation and enforcement. 
"(g) REGULATIONS.—^The Secretary may promulgate regulations 
to carry out the ministerial duties imposed on the Secretary by 
this section. 
"(h) DEFINITIONS.—For the purpose of this section— 
"(1) the term 'contract' means any agreement for the acquisi-
tion by purchase, lease, or barter of property or services by 
the foreign source, for the direct benefit or use of either of 
the parties; 
"(2) the term 'foreign source' means— 
"(A) a foreign government, including an agency of a for-
eign government; 
; 
"(B) a legal entity, governmental or otherwise, created 
solely imder the laws of a foreign state or states; 
**(C) an individual who is not a citizen or a national 
of the United States or a trust territory or protectorate 
thereof; and 
"(D) £in agent, including a subsidiary or affiliate of a 
foreign legal entity, acting on behalf of a foreign source; 
"(3) the term 'gift' means any gift of money or property; 
"(4) the term 'institution* means any institution, pubhc or 
private, or, if a multicampus institution, any single campus 
of such institution, in any State which— 
"(A) is legally authorized within such State to provide 
a program of education beyond secondary school; 
"(B) provides a program for which it awards a bachelor's 
' ' 
degree (or provides not less than a 2-year program which 
is acceptable for full credit toward such a degree) or more 
advanced degrees; Eind 
"(C) is accredited by a nationally recognized accrediting 
agency or association and to which institution FedersQ 
financial assistance is extended (directly or indirectly 
through another entity or person), or which institution 
receives support from the extension of Federal financial 
assistance to any of its subimits; and 
"(5) the term 'restricted or conditional gift or contract' means 
any endowment, gift, grant, contract, award, present, or prop-
erty of any kind which includes provisions regarding (A) the 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 797 
employment, assignment, or termination of faculty; (B) the 
establishment of departments, centers, research or lecture pro-
grams, or new faculty positions; (C) the selection or admission 
of students; or (D) the award of grants, loans, scholarships, 
fellowshii)s, or otiier forms of financial aid restricted to students 
of a specified country, religion, sex, ethnic origin, or politicsd 
opinion.". 
TITLE XIII—INDIAN HIGHER 
EDUCATION PROGRAMS 
PART A—TRIBALLY CONTROLLED COMMUNITY 
COLLEGES 
SEC. 1301. REAUTHORIZATION OF THE TRIBALLY CONTROLLED COM-
MUNITY COLLEGES ACT. 
(a) GENERAL AUTHORIZATION.—Section 110(a) of the Tribally Con-
trolled Community College Assistance Act of 1978 (hereafter in 
this section referred to as the "Act") (25 U.S.C. 1810(a)) is amended 
to read as follows: 
"SEC. 110. (a)(1) There is authorized to be appropriated, for the 
purpose of carrying out section 105, $3,200,000 for fiscal year 1993 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years. 
"(2) There is authorized to be appropriated for the purpose of 
canying out section 107, $30,000,000 for fiscal year 1993 and such 
sums as may be necessary for each of the 4 succeeding fiscal 
years. 
"(3) There is authorized to be appropriated for the purpose of 
canying out sections 112(b) and 113, $10,000,000 for fiscal year 
1993 and such sums as may be necessary for each of the 4 succeed-
ing fiscal years. 
(4) Funds appropriated pursuant to the authorizations under 
this section for the fiscal year 1993 and for each of the succeeding 
4 fiscal years shall be transferred by the Secretary of the Treasury 
through the most esroeditious method available, with each of the 
Tribally Controlled Community Colleges being designated as its 
own certifying agen<^.". 
(b) E
N
D
O
W
M
E
N
T GRANTS.—Section 306(a) of the Act (25 U.S.C. 
1836(a)) is amended to read as follows: 
"SEC 306. (a) There are authorized to be appropriated to carry 
out the provisions of this title, $10,000,000 for fiscal year 1993 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years.". 
(c) ECONOMIC DEVELOPMENT.—Section 403 of the Act (25 U.S.C. 
1852) is amended to read as follows: 
' « E C . 403. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated for grants under this 
title, $2,000,000 for fiscal year 1993 and such sums as may be 
necessary for each of the 4 succeeding 
fisced 
years.". 
(d) NAVAJO COMMUNITY COLLEGES.—Section 5(aXl) of the Navajo 
Community College Act of 1978 (25 U.S.C. 640c-l(a)(l)) is amended 
to read as follows: 
"SEC 5. (a)(1) For the purpose of making construction grants 
under this Act, there are authorized to be appropriated $2,000,000 
106 STAT. 798 
PUBLIC LAW 102-325—JULY 23, 1992 
for fiscal year 1993 and such sums as may be necessary for each 
of the 4 succeeding 
fiscal 
years.". 
PART B—HIGHER EDUCATION TRIBAL GRANT 
AUTHORIZATION ACT 
25 u s e 3301. 
SEC. 1311. SHORT TITLE. 
This part may be cited as the "Higher Education Tribal Grant 
Authorization Act". 
25 u s e 3302. 
SEC. 1312. FINDINGS. 
The Congress finds that— 
(1) there are increasing numbers of Indian students quaUfy-
ing for postsecondary education, and there are increasing num-
bers desiring to go to postsecondary institutions; 
(2) the needs of these students far outpace the resources 
avgdlable currently; 
^ 
(3) Indian tribes have shown an increasing interest in admin-
istering programs serving these individuals and making deci-
sions on these programs reflecting their determinations of the 
tribal and human needs; 
(4) the contracting process under the Indian Self-Determina-
tion and Education .^sistance Act has provided a mechanism 
for the majority of the tribes to assume control over this pro-
gram 
fi*om 
the Bureau of Indian Affairs; 
(5) however, inherent limitations in the contracting philoso-
phy and mechsmism, coupled with cimibersome administrative 
procedures developed by the.Bureau of Indian Affairs have 
effectively limited the efficiency and effectiveness of these pro-
grams; 
(6) the provision of these services in the most effective and 
efficient form possible is necessary for tribes, the country, and 
the individuals to be served; and 
(7) these services are part of the Federal Government's con-
tinuing trust responsibility to provide education services to 
American Indian and Alaska Natives. 
^ 
25 u s e 3303. 
SEC. 1313. PROGRAM AUTHORITY. 
(a) IN GENERAL.—^The Secretary shall, 
fi*om 
the amounts appro-
priated for the purpose of supporting higher education grants for 
Indian students under the authority of the Act of November 2, 
1921, popularly known as the Snyder Act (25 U.S.C. 13), make 
grants to Indian tribes in accordance with the requirements of 
this part to permit those tribes to provide financial assistance 
to individual Indian students for the cost of attendance at institu-
tions of higher education. 
(b) LIMITATION ON SECRETARY'S AUTHORITY.—The Secretary shall 
not place any restrictions on the use of fiinds provided to an 
Indian tribe under this part that is not expressly authorized by 
this part. 
(c) EFFECT O
N FEDERAL RESPONSIBILITIES.—The provisions of this 
part shall not affect any trust responsibiUties of the Federal Govern-
ment. 
(d) No TERMINATION FOR ADMINISTRATIVE CONVENIENCE.—Grants 
provided under this part may not be terminated, modified, sus-
pended, or reduced only for the convenience of the administering 
agency. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 799 
SEC. 1314. QUALIFICATION FOR GRANTS TO TRIBES. 
25 USC 3304. 
(a) CONTRACTING TRIBES.—Any Indian tribe that obtains funds 
for educational purposes similar to those authorized in this psirt 
pursuant to contract under the Indian Self-Determination and Edu-
cation Assistance Act may quahfy for a grant under this part 
by submitting to the Secretary a notice of intent to administer 
a student assistance program vmder section 1313. Such notice shall 
be effective for the fiscal year following the fiscal year in which 
it is submitted, except that if such notice is submitted during 
the last 90 days of a fiscal year such notice shall be effective 
the second fiscal year following the fiscal year in which it is submit-
ted, unless the Secretary waives this limitation. 
(b) NONCONTRACTING TRIBES.—Any Indian tribe that is not 
ehgible to qualify for a grant imder this part by filing a notice 
under subsection (a) may quahfy for such a grant by filing an 
apphcation for such a grant. Such application shall be submitted 
imder guidelines for programs under the Indian Self-Determination 
and Education Assistance Act, as in effect on January 1, 1991, 
and shall be reviewed xmder the standards, practices, and proce-
dures applicable to applications to contract under such Act as 
in effect on the date the application is received, except that— 
(1) if the tribe is not notified that its application has been 
disapproved within 180 days after it is filed with the Secretary, 
the application shall be deemed to be approved; 
(2) if the application is disapproved, the Secretary shedl pro-
vide technical assistance to the tribe for purposes of correcting 
deficiencies in the application; 
(3) the Secretary shall designate an office or official to receive 
such applications, and shall toll the 180-day period described 
in paragraph (1) from the date of receipt by such office or 
official; and 
(4) applications shall be approved for the fiscal year following 
the fiscal year in which submitted, unless the Secretary waives 
the limitation of this paragraph. 
(c) TERMINATION OF GRANTS.— 
(1) CONTINUING ELIGIBILITY PRESUMED.—An Indian tribe 
which has qualified under subsection (a) or (b) for a grant 
under this part for any fiscal year shall continue to be eligible 
for such a grant for each succeeding fiscal year vmless the 
Secretary revokes such eligibility for a cause described in para-
graph (2). 
(2) CAUSES FOR LOSS OF ELIGIBILITY.—The Secretary may 
revoke the ehgibiUty of an Indian tribe for a grant under 
this part if such tribe— 
(A) fails to submit to the Bureau an annual financial 
statement that reports revenues and expenditures deter-
mined by use of an accounting system, established by tiie 
tribe, that compUes with generally accepted accounting 
principles; 
(B) fails to submit to the Bureau an annual program 
description, stating the number of students served, and 
containing such mformation concerning such students, 
their educational programs and progress, and the financial 
assistance distributed to such students as the Secretary 
may require by regulation; 
106 STAT. 800 
PUBLIC LAW 102-325—JULY 23, 1992 
(C) fails to submit to the Secretary a biennial financial 
audit conducted in accordsince with chapter 75 of title 
31, United States Code; or 
(D) fails, in an evaluation of its financial assistance pro-
gram conducted by an impartigd third party entity, to com-
ply with standards under this part relating to (i) eligible 
students, programs, or institutions of higher education, 
(ii) satisfactory progress, or (iii) allowable administrative 
costs; as determined imder contracts applicable to programs 
to provide financial assistance to individual Indian students 
for the cost of attendance at institutions of higher education 
administered by Indian tribes under the Indian Self-Deter-
mination and Education Assistance Act £ind in effect on 
January 20,1991. 
(3) PROCEDURES FOR REVOCATION OF ELIGIBILITY.—The Sec-
retary shall not revoke the eligibihty of an Indian tribe for 
a greint under this part except— 
(A) after notice in writing to the tribe of the cause and 
opportunity to the tribe to correct; 
(B) providing technical assistance to the tribe in making 
such corrections; and 
(C) after hearing and appeals conducted under the same 
rules and regulations that apply to similar termination 
actions under the Indian Self-Determination and Education 
Assistance Act. 
25 use 3305. 
SEC. 1315. ALLOCATION OF GRANT FUNDS. 
(a) ALLOCATION OF FUNDS.— 
(1) IN GENERAL.—^The Secretary shall continue to determine 
the amount of progrsma fiinds to be received by each grantee 
under this part by the same method used for determining 
such distribution in fiscal year 1991 for tribally-administerea 
and Bureau-administered programs of grants to individual 
Indians to defi*ay postsecondary expenses. 
(2) .^MINISTRATIVE COSTS.—In addition to the amount deter-
mined xmder paragraph (1), a grantee which has exercised 
the option given in section 1314(a) to administer the program 
under a grant shall receive an amount for administrative costs 
determined pursuant to the method used by the grantee during 
the preceding contract period. All other grantees shall receive 
an amoimt for administrative costs determined pursuant to 
the regulations governing such determinations under the Indian 
Self Determination and Education Assistance Act, as in effect 
at the time of application to grants being made. 
(3) SINGLE GRANT; SEPARATE ACCOUNTS.—Each grantee shall 
receive only one grant during any fiscal year, which shall 
include both of the amounts under paragraphs (1) and (2). 
Each grantee shall maintedn this grant in a separate account. 
(b) USE OF FUNDS.—Fimds provided by grants under this part 
shall be used— 
(1) to make grants to individual Indian students to meet, 
on the basis of need, any educational expense of attendance 
in a postsecondary education program (as determined under 
the contracts applying to the postsecondary education program 
administered by tribes under the Indian Self Determination 
and Education Assistance Act (Public Law 93-638)), to the 
extent that such expense is not met fi'om other sources or 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 801 
cannot be defrayed through the action of any State, Federal, 
or municipal Act, except that nothing in this subsection shall 
be interpreted as requiring any priority in consideration of 
resources; and 
(2) costs of administering the program under this part, except 
that no more may be spent on administration of such program 
than is generated by tiie method for administrative cost com-
putation specified in section 1315(aX2). 
SEC. 1316. LIMITATIONS ON USE OF FUNDS. 
25 USC 3306. 
(a) USE FOR RELIGIOUS PURPOSES.—None of the funds made avail-
able under this part may be used for study at any school or depart-
ment of divinity or for any religious worship or sectarian activity. 
(b) INTEREST ON FUNDS.—No interest or other income on any 
funds made available under this part shall be used for any purpose 
other than those for which such fimds may be used. 
(c) PAYMENTS.— 
(1) IN GENERAL.—^Except as otherwise provided in this sub-
section, the Secretary shall make pa3anents to grantees under 
this part in two payments— 
(A) one payment to be made no later than October 1 
of each fiscal year in an amoimt equal to one-half the 
amount paid during the preceding fiscal year to the grantee 
or a contractor that has elected to have the provisions 
of this part apply, and 
(B) tibe second payment consisting of the remainder to 
which the grantee or contractor is entitled for the fiscal 
year to be made by no later than Janu£iry 1 of the fiscal 
year. 
(2) NEW GRANTEES.—For any tribe for which no pa3nnent 
was made under this part in the preceding fiscal year, full 
pajrment of the amount computed for each fiscal year shall 
be made by January 1 of the fiscal year. 
(d) INVESTMENT OF FUNDS.— 
(1) TREATMENT AS TRIBAL PROPERTY.—Notwithstanding any 
other provision of law, any interest or investment income that 
accrues on any funds provided under this part after such funds 
are paid to the Indian tribe or tribal orgsinization and before 
such funds are e3q>ended for the purpose for which such funds 
were provided under this part shaU be the property of the 
Indian tribe or tribal organization and shall not be taJsen into 
account by any officer or employee of the Federal (Jovemment 
in determining whether to provide assistance, or the amount 
of assistance, imder any provision of Federal law. 
(2) INVESTMENT REQUIREMENTS.—Funds provided under this 
part may be— 
(A) invested by the Indian tribe or tribal organization 
only in obligations of the United States or in obligations 
or secxirities that are guaranteed or insured by the United 
States, or 
(B) deposited only into accounts that are insured by 
an agency or instrumentaUty of the United States. 
(e) RECOVERIES.—For the purposes of under recovery and over 
recovery determinations by any Federal agency for any other funds, 
from whatever source derived, funds received under this part shall 
not be taken into consideration. 
59-194 O—93 
27 : QL 3 (Pt. 1) 
106 STAT. 802 
PUBLIC LAW 102-325—JULY 23, 1992 
25 use 3307. 
SEC. 1317. ADMINISTRATIVE PROVISIONS. 
(a) BIENNIAL REPORT.—^The Secretary shall submit a biennial 
report to the Congress on the programs established under this 
psui;. Such report shall include— 
(1) a description of significant administrative actions taken 
by the Secretary under tWs part; 
(2) the niunber of grants made under the authority of this 
part; 
(3) the number of appUcations denied for such grants and 
the reasons therefor; 
(4) the remedial actions taken to enable apphcants to be 
approved; 
(5) the number of students served, by tribe; 
(6) statistics on the academic pursuits of the students pro-
vided assistance under this part and the average amoimt of 
assistance provided; and 
(7) such additional information as the Secretary considers 
sigi^cant. 
(b) ROLE OF THE DIRECTOR,—^AppUcations for grants imder this 
part, and all appUcation modifications, shall be reviewed and 
approved by personnel imder the direction and control of the Direc-
tor of the Office of Indian Education Programs. Required reports 
shall be submitted to education personnel imder the direction and 
control of the Director of such Office. 
(c) APPLICATION OF INDIAN SELF-DETERMINATION AND EDUCATION 
ASSISTANCE ACT.—All provisions of sections 5, 6, 7, 105, 109, and 
110 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450c et seq.), except those provisions pertaining 
to indirect costs and length of contract, shall apply to grants pro-
vided imder this part. 
(d) REGULATIONS.—^The Secretary is authorized to issue regula-
tions relating to the discharge of duties specifically assigned to 
the Secretary by this part. In all other matters relating to the 
details of planning, development, implementing, and evaluating 
grants under this part, the Secretary shall not issue regulations. 
Regulations issued pursuant to this part shall not have the standing 
of a Federal statute for the purposes of 
judicial review. 
(e) RETROCESSION.—^Whenever an Indian tribe requests ret-
rocession of any program for which assistance is provided under 
this part, such retrocession shall become effective upon a date 
specified by the Secretary not more than 120 days after the date 
on which the tribe requests the retrocession, or such later date 
as may be mutually agreed upon by the Secretary and the tribe. 
If such a program is retroceded, tiie Secretary shall provide to 
any Indian tribe served by such program at least the same quantity 
£uid quality of services that would have been provided under such 
program at the level of funding provided under this part prior 
to the retrocession. The tribal governing body requesting the ret-
rocession shall specify whether the retrocession shall be to a con-
tract administered by the tribe, or a tribal entity, under the author-
ity of the Indian Self-Determination Act or to a Bureau adminis-
tered program. 
(f) DEFINITIONS.—For the purposes of this part: 
(1) The term "Secretary" means the Secretary of the Interior. 
(2) The terms "Indian" and "Indian tribe" have the same 
meaning given those terms in sections 4 (d) and (e), respectively. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 803 
of the Indian Self Determination and Education Assistance 
Act (P.L. 93-638, 20 U.S.C. 450b). 
PART C—CRITICAL NEEDS FOR TRIBAL 
Critical Needs 
for Tribal 
DEVELOPMENT ACT 
Development 
Act. 
SEC. 1321. SHORT TITLE. 
25 USC 3321. 
This part may be cited as the "Critical Needs for Tribal Develop-
ment Act". 
SEC. 1322. DEFINITIONS. 
25 USC 3322. 
As used in this part: 
(1) The term "federally funded higher education assistance" 
means any grant assistance provided to an Indian student 
from funds made available for such purpose by contract or 
grant to an Indian tribe from amounts appropriated under 
the authority of the Act of November 2, 1921, popularly known 
as the Snyder Act (25 U.S.C. 13). 
(2) The term "eligible Indian tribe or tribsil organization" 
means any Indian taibe or tribal organization that qualifies 
to administer federally funded higher education assistance 
under a contract pursuant to the Indian Self-Determination 
and Education Assistance Act or under a grant pursuant to 
the Higher Education Tribal Grant Authorization Act. 
(3) The term "Indian" has the meaning given such term 
in section 4(d) of the Indian Self Determination and Education 
Assistance Act (PubUc Law 93-638, 20 U.S.C. 450b). 
SEC. 1323. SERVICE CONDITIONS PERMITTED. 
25 USC 3323. 
(a) IN GENERAL.—^An eligible Indian tribe or tribal organization 
may, in accordance with the requirements of this part, require 
any applicant for federally funded higher education assistance, as 
a condition of receipt of such assistance, to enter into a critical 
area service agreement in accordance with section 1324. 
(b) CRITICAL AREA DESIGNATION.—Any ehgible Indian tribe or 
tribal organization that intends to require critical area service 
agreements shall, by a formal action of the tribal council or its 
delegate, designate particular occupational areas as critical areas 
for the economic or human development needs of the tribe or 
its members. The tribe or organization shall notify the Secretary 
of the Interior in writing of such designated critical areas. Such 
designations shall be appUcable to federsuly funded higher education 
assistance for any fiscal year following the fiscal year in which 
the designation is made until such designation is withdrawn by 
the tribe or organization by formal action. The tribe or organization 
shall notify the Secretary of the Interior in writing of any des-
ignations that are withdrawn. 
SEC. 1324. CRITICAL AREA SERVICE AGREEMENTS. 
25 USC 3324. 
(a) TERMS OF AGREEMENTS.—^A critical area service agreement 
shaU be an agreement between an Indian student who receives 
or who shall receive federally funded higher education assistance 
£ind £in Indian tribe or tribal organization providing such assistance 
in which the student agrees— 
(1) to undertake a course of study at an eligible institution 
(as that term is defined in section 435(a) of tine Higher Edu-
cation Act of 1965) in an area of critical need, as determined 
106 STAT. 804 
PUBLIC LAW 102-325—JULY 23, 1992 
iinder section 1323, and to pursue that course of study to 
its completion; and 
(2)(A) to perform, for each academic year for which the stu-
dent receives federally funded higher education assistance 
under a critical area service agreement, one cedendar year 
of service to the tribe or organization in an occupation that 
is in a critical area designated by the tribe pursuant to section 
1322(b), commencing not later than 6 months after the student 
ceases to carry at an institution of higher education at least 
one-half the normal full-time academic workload as determined 
by the institution; or 
(B) to repay such assistance to the Secretary, together with 
interest thereon at a rate prescribed by the Secretary by regula-
tion, in monthly or quarterly installments over not more thein 
5 years. 
(b) SERVICE LIMITATIONS AND CONDITIONS.—The tribe or tribal 
organization shall agree that a student performing services under 
a critical area service agreement— 
(1) shall be provided compensation, benefits, and working 
conditions at the same level and to the same extent as any 
other employee working a similar length of time and doing 
the same type of work; 
(2) may oe treated as providing services to the tribe or 
organization if the student provides services for members of 
the tribe or organization that are approved by the tribe or 
organization and agreed to by the student even though such 
services are performed while the student is employed by a 
Federal, State, or local agency or instrumentality or by a non-
profit or for-profit private institution or organization; and 
(3) may obtain the benefits of a waiver or suspension in 
accordance with the requirements of subsection (c). 
(c) WAIVER AND SUSPENSION OP SERVICE AGREEMENT.— 
(1) WAIVER.—^An Indian tribe or tribal organization may, 
by formal action, waive the service agreement of an Indian 
student for just cause, as determined in accordance with regida-
tions prescribed by the Secretary. The tribe or organization 
shall notify the Secretary in writing of any waiver granted 
imder this subsection. 
(2) SUSPENSION.—^The obligation of a student to perform serv-
ices under a critical area service agreement— 
(A) shall be suspended for not more than 18 months 
if, at the request of the student, the tribe or organization 
determines that there are no employment opportunities 
available in any critical service sirea; eind 
(B) shall be suspended if the student ceases to attend 
an institution of higher education as a consequence of 
an institutional determination of unsatisfactory perform-
ance. 
If, at the end of a period of suspension under subparagraph 
(A), there are stUl no emplo3nnent opportunities available in 
any critical service area, the student's obligations under the 
e^eement shall terminate. A suspension under subparagraph 
(B) shall be reviewed by the tribe or organization annually, 
but may be continued indefinitely. 
Regulations. 
(d) PRO RATA REDUCTION FOR PARTIAL SERVICES.—The Secretary 
shall, by regulation, provide for the pro rata reduction of repayment 
obligations under subsection (aX2) ui the case of any student who 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 805 
partialljr completes the service obligation of that student under 
subsectaon (a)(2)(A). 
(e) CERTIFICATION OF SERVICE.—An Indian tribe or tribal 
organization receiving services under a critical area service 
agreement— 
(1) shall establish procedures for monitoring and evaluating 
the provisions of this part, and provide a copy of such proce-
dures to the Secretary and to each individual providing services 
under a critical area service agreement; 
(2) shall annually certify to the Secretary the identities of 
the individuals performing service under such agreements; and 
(3) shall annually certify to the Secretary the amount of 
service performed, and the amount remaining to be performed, 
by each such individual under such agreements. 
SEC. 1326. GENERAL PROVISIONS. 
25 USC 3325. 
(a) APPLICATION OF EXISTING PROCEDURES.—Except as provided 
in subsection (b), the requirements relating to student eligibility, 
needs analysis, and determination of eligibility for the program 
to be attended regularly incorporated by reference into contracts 
under the Indian Self-Determination and Education Assistance Act 
for tribal operation of higher education grant programs prior to 
January 1,1991, shall apply, 
(b) ADDITIONAL, EXCESS, AND INCREMENTAL COSTS.—The tribe 
or tribal organization may establish in writing, subject to the review 
of the Secretary, procedures for determining additional, excess, 
or inducement costs to be associated with grants for critical area 
service agreements. 
PART D—BVSTITUTE OF AMERICAN INDIAN 
NATIVE CULTURE AND ARTS DEVELOPMENT 
SEC. 1331. INSTITUTE OF AMERICAN INDIAN NATIVE CULTURE AND 
ARTS DEVELOPMENT. 
(a) BOARD OF DIRECTORS.—Section 1505 of the American Indian, 
Alaska Native, and Native Hawaiian Culture and Art Development 
Act (20 U.S.C. 4412) is amended— 
(1) in subsection (a)(1)(A)— 
(A) by striking "The voting" and inserting "Subject to 
the provisions of subsection (i), the voting"; and 
(B) by inserting before the period at the end thereof 
a comma and the following: "and diverse fields of expertise, 
including finance, law, fine arts, and higher education 
administration"; 
(2) bv redesignating paragraph (3) of subsection (a) as para-
graph (4); 
(3) by inserting after paragraph (2) of subsection (a) the 
following new paragraph: 
"(3) 'Hie President shall carry out the activities described 
in subparagraphs (B) and (C) of paragraph (2) through the 
Board. The Board may make recommendations based upon 
the nominations received, may make recommendations of its 
own, and may review and make comments to the President 
or the President's appointed stsiff on individuals being consid-
ered by the President for whom no nominations have been 
received."; and 
(4) by striking subsection (i) and inserting the following: 
106 STAT. 806 
PUBLIC LAW 102-325-JULY 23, 1992 
"(i) APPOINTMENT EXCEPTION FOR CONTINUITY.— 
"(1) In order to maintain the stability and continuity of 
the Board, the Board shall have the power to recommend 
the continuation of members on the Board pursuant to the 
provisions of this subsection. When the Board makes such 
a recommendation, the Chairman of the Board shall transmit 
the recommendation to the President no later than 75 days 
prior to the expiration of 
the term of 
the member. 
"(2) If the President has not transmitted to the Senate a 
nomination to fill the position of a member covered by such 
a recommendation withm 60 days from the date that the mem-
ber's term emires, the member shall be deemed to have been 
reappointed for another fuU term to the Board, with all the 
appropriate rights and responsibilities. 
(3) This subsection shall not be construed to permit less 
than 7 members of the Board to be Indians. If an extension 
of a term under paragraph (2) would result in less than 7 
members being Indians, me term of the member covered by 
paragraph (2) shall be deemed to expire 60 days after the 
date upon which it would have been deemed to expire without 
the operation of this subsection, except that the provisions 
of subsection (b)(4), relating to continuation of service pending 
replacement, shall continue to apply.". 
(b) GENERAL POWERS OF BOARD.—Section 1507 of the American 
In(han, Alaska Native, and Native Hawaiian Culture and Art Devel-
opment Act (20 U.S.C. 4414) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (3) through (13) as para-
grsmhs (4) through (14), respectively; 
(B) by striking paragraph (2) and inserting the following: 
"(2) to make agreements and contracts with persons, Indian 
tribes, and private or governmental entities and to make pay-
ments or advance pa5nnents imder such agreements or contract 
without regard to section 3324 of title 31, United States Code; 
"(3) any other provision of law to the contrary not-
withstanding, to enter into joint development ventures with 
pubUc or private commercial or noncommercial entities for 
development of facilities to meet the plan required under section 
1519, if the ventures are related to and nirther the mission 
of the Institute;"; and 
(C) by striking paragraph (13) (as redesignated in sub-
paragraph (A)) and inserting the following: 
"(13) to use any funds or property received by the Institute 
to carry out the purpose of this title, including the authority 
to designate on an annual basis a portion, not to exceed 10 
percent, of the funds appropriated pursuant to section 1531 
for investment, without regard to any other provision of law 
regarding investment or disposition of federally appropriated 
funds, on a short-term basis for the purpose of maximizing 
3deld and liqmdity of such funds; and"; and 
(2) in subsection (c), by stnking "may be expended" and 
inserting "shall be expended". 
(c) STAFF OF INSTITUTE.—Section 1509(b)(2) of the American 
Indian, Alaska Native, and Native Hawaiian Culture and Art Devel-
opment Act (20 U.S.C. 4416(bX2)) is amended to read as follows: 
^ 
"(2) The President of the Institute shall fix the basic com-
pensation for officers and employees of the Institute at rates 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 807 
comparable to the rates in effect under the General Schedule 
for individuals with comparable qualifications and positions, 
to whom chapter 51 of title 5, United States Code apphes. 
If the Board determines that such action is necessary for pur-
poses of recruitment or retention of officers or employees nec-
essary to tiie functions of the Institute, the Board is authorized, 
by formal action, to estabUsh a rate of, or a range for, basic 
• 
compensation that is comparable to the rate of compensation 
paid to officers or employees having similar duties and respon-
sibilities in other institutions of higher education.". 
(d) FUNCTIONS OF INSTITUTE.—Section 1510(b) of the American 
Indian, Alaska Native, and Native Hawaiian Culture and Art Devel-
opment Act (20 U.S.C. 4417(b)) is amended to read as follows: 
"(b) ADMINISTRATIVE ENTITIES.— 
"(1) The Board shedl be responsible for establishing the poli-
cies and internal org£inization that relate to the control and 
monitoring of all subdivisions, administrative entities, and 
departments of the Institute. 
"(2) The specific responsibiHties of each subdivision, entity, 
and department of the Institute £
u
*
e solely within the discretion 
of the Board, or its designee. 
"(3) The Board shall estabUsh, within the Institute, depart-
ments for the study of culture and arts and for research and 
exchange, and a museum. The Board shall estabUsh the areas 
of competency for the departments created imder this para-
graph, which may include (but are not limited to) Departments 
of Arts and Sciences, Visual Arts, Performing Arts, Language, 
Literature and Museology and a learning resources center, pro-
grams of institutional support and development, research pro-
grams, feUowship programs, seminars, pubUcations, scholar-
in-residence programs and inter-institutional programs of 
cooperation at national and international levels.". 
(e) INDIAN PREFERENCE.—Section 1511(a) of the American Indian, 
Alaska Native, and Native Hawaiian Culture and Art Development 
Act (20 U.S.C. 4418(a)) is amended by inserting "develop a poUcy 
or policies for the Institute to" after "is authorized to". 
(f) TRANSFER OF FUNCTIONS.—Section 1514 of the American 
Indian, Alaska Native, and Native Hawaiian Culture and Art Devel-
opment Act (20 U.S.C. 4421) is amended— 
(1) in subsection (b)(1), by striking "All personnel" and insert-
ing "Subject to subsection (d), all personnel"; and 
(2) in subsection (d)(2), by striking "monetary damage" and 
inserting "monetary damages". 
(g) REPORTS.—Section 1515(b) of the American Indian, Alaska 
Native, and Native Hawaiian Culture and Art Development Act 
(20 U.S.C. 4422(b)) is amended— 
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) through (4) as paragraphs 
(1) through (3). 
(h) HEADQUARTERS.—Section 1516 of the American Indian, Alaska 
Native, and Native Hawaiian Culture and Art Development Act 
(20 U.S.C. 4423) is amended— 
(1) by striking "The site of the Institute of American Indian 
Arts, at"; and 
(2) by striking "the Secretary" and inserting "the Board". 
106 STAT. 808 
PUBLIC LAW 102-325—JULY 23, 1992 
(i) COMPLIANCE WITH OTHER ACTS.—Section 1517 of the American 
Indisin, Alaska Native, and Native Hawaiian Culture and Art Devel-
opment Act (20 U.S.C. 4424) is amended— 
(1) by redesignating the text of subsection (c) as paragraph 
(1) of such subsection; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) The Institute shall not be subject to any provision of 
law requiring that non-Federal funds or other moneys be used 
in part to fiind any grant, contract, cooperative agreement, 
or project as a condition to the application for, or receipt of. 
Federal assistance. This subsection shall not be construed to 
effect in a negative fashion the review, prioritization, or accept-
ance of any application or proposal for such a program, soHcited 
or unsolicited.", 
(j) ENDOWMENT PROGRAM.—Section 1518 of the American Indian, 
Alaska Native, and Native Hawaiian Culture and Art Development 
Act (20 U.S.C. 4425) is amended— 
(1) in subsection (a)(3)— 
(A) by striking "the date of enactment of this Act" and 
inserting "November 29,1990"; and 
(B) by inserting after the last sentence the following 
new sentence: "All funds transferred to the Institute by 
the Secretary of the Treasury after June 2, 1988, shall 
be deemed to have been properly transferred as of the 
date of enactment of the Higher Education Amendments 
of 1992."; 
(2) in subsection (b)(4), by inserting ", non-Federal govern-
mental," after "any private"; and 
(3) in subsection (c)— 
(A) by redesignating paragraph (3) as paragraph (4); 
and 
(B) by inserting after paragraph (2) the following new 
paragraph: 
"(3) Any amounts deposited in a trust ftmd authorized imder 
subsection (a) may be used to secure loans procured for the 
purposes of constructing or improving Institute faciUties.". 
(k) PROVISION OF FACILITIES.—Part A of the American Indian, 
Alaska Native, and Native Hawaiian Cultxire and Art Development 
Act (20 U.S.C. 4411 et seq.) is amended by adding at the end 
the following new section: 
20 use 4426. 
«SEC. 1519. PROVISION OF FACILITIES. 
"(a) PLAN.—^The Board shall prepare a master plan on the short-
and long-term faciUties needs of the Institute. The master plan 
shall include evaluation of all facets of existing Institute programs, 
including support activities and programs and facilities, llie master 
plan shall include impact projections for the Institute's move to 
a new campus site. This master plan shall evaluate development 
and construction requirements (based on a growth plan approved 
by the Board), including (but not limited to) items such as infra-
structure and site analysis, development of a phased plan with 
architectural and engineering studies, cost projections, landscaping, 
and related studies which cover all facets of the Institute's programs 
and planned functions. 
"(b) DEADLINE FOR TRANSMITTAL.—The plan required by this sub-
section shall be transmitted to Congress no later than 18 months 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 809 
after the date of enactment of this provision. Such plan shall 
include a prioritization of needs, as determined by the Board.". 
PART E—TRIBAL DEVELOPMENT STUDENT 
ASSISTANCE REVOLVING LOAN PROGRAM 
SEC. 1341. SHORT TITLE. 
This part may be cited as the "Tribal Development Student Assist-
ance Act". 
SEC. 1342. FINDINGS; PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) a substantial number of Indian students have partially 
completed their degrees in postsecondary education, but have 
been unable, for a number of reasons, to complete the degrees; 
(2) in at least some measure these students have been sup-
E
orted by tribal funds or grants of Federal monies administered 
y the Bureau of Indian Affairs or tribes; 
(3) the inability of the students to complete these degrees 
has led to a hardship for the students and a loss of a potential 
pool of talent to the tribes or tribal orgEinizations which origi-
nally financed, at least in part, these efforts; 
(4) this loss has crippled tribal efforts in the areas of economic 
and social development; 
(5) this failiu*e to complete the postsecondary schooling has 
led to economic loss to the tribes and the Federal Government 
which could be remedied by completion of the courses of study; 
and 
(6) a program to identify students with a level of postsecond-
ary completion short of the fulfillment of graduation require-
ments and to encourage them to complete tiiese requirements, 
including provision of resources, wiU benefit the students, the 
tribes, and the Federal Government. 
(b) PURPOSES.—^The purposes of this part are— 
(1) to establish a revolving loan program to be administered 
by a tribe or tribal organization for the purposes of increasing 
the number of college graduates available to work in tribal 
businesses, tribal government, and tribal services such as 
schools and hospitals; 
(2) to conduct research to assess the situational and edu-
cational barriers to participation in postsecondary education; 
and 
(3) to encourage development, through grants, of a model 
which provides, in addition to loans, transitional and follow-
up services needed to encourage persistence in postsecondary 
education. 
SEC. 1343. REVOLVING FUND. 
(a) RECEIPT, INVESTMENT, AND ACCOUNTING.— 
(1) TRIBES AND TRIBAL ORGANIZATIONS.—Funds received 
under a grant under this part or recovered under the provisions 
of section 1346(a)(2)(B) shall be identified and accounted for 
separately fi*om any other tribal or Federal funds received 
fi*om the Federal Government. All fimds in tiiis accoimt shall 
be used for the purposes of this part. 
(2) FINANCIAL PROCEDURES.—The Secretary of the Interior 
is responsible for estabUshing, by regulations, such require-
Tribal 
Development 
Student 
Assistance Act. 
25 u s e 3331. 
25 u s e 3332. 
25 u s e 3333. 
Regulations. 
106 STAT. 810 
PUBLIC LAW 102-325—JULY 23, 1992 
ments for receipt, investment and accounting of funds under 
subsection (b) as shall safeguard and financial interests of 
the Federal Grovemment. 
(b) INVESTMENT.—Funds provided under this part or recovered 
by the tribe or tribal organization under the provisions of section 
1346(a)(2)(B) shall be— 
(1) invested by the Indian tribe or tribal organization only 
in obligations of the United States or in obligations or securities 
that are guaranteed or insured by the United States, or 
(2) deposited only in accounts that are insured by an agency 
or instrumentaUty of the United States. 
(c) TREATMENT OP INCOME.—Notwithstanding any other provision 
of law, any interest or investment income mat accrues on any 
funds covered under this provision after such funds have been 
distributed to a tribe or tribeil organization and before such funds 
are distributed for tiie purposes of making loans vmder this part 
shall be the property of the tribe or tribal organization and shall 
not be taken into account by any officer or employee of the Federal 
Grovemment in determining whether to provide assistance, or the 
amount of assistance, under any provision of Federal law. 
25 u s e 3334. 
SEC. 1344. EUGEBLE RECIPIENTS. 
(a) TRIBES AND TRTOAL ORGANIZATIONS.—The Secretary of the 
Interior (hereafter in this part referred to as the "Secretary*) shall 
make grants, in accordance with the requirements of this part, 
to— 
(1) tribes or multitribal organizations not serviced by current 
federally funded postsecond^uy institutions authorized for eco-
nomic development grants; and 
(2) tribes or multitribal organizations which lack sufficient 
numbers of professionally trained tribal members to support 
estabUshed or ongoing economic development initiatives. 
(b) STUDENTS.—^Any tribe or tribal organization that receives 
funds under subsection (a) shedl make such funds available by 
losin, under terms and conditions consistent with section 1345, 
to Indian students who have successfully completed 30 hours of 
postsecondary education and who are eligible for readmission to 
a postsecondary institution. 
25 u s e 3335. 
SEC. 1346. TERMS OF LOANS. 
(a) IN GENERAL.—^A loan under this part to an Indian student 
shall— 
(1) be subject to repajnnent over a period of not more than 
5 years; 
(2) not bear interest; 
(3) be subject to forgiveness for services to the tribe in accord-
ance with section 1346; and 
(4) contain such additional terms and conditions as the initial 
loan agreement between the tribe or tribal organization and 
student may prescribe in writing. 
(b) COST OF ATTENDANCE.—Calculation of the cost of attendance 
for the student must include all costs as determined by the tribe 
for the purposes of 
fulfilling the policy of this part. 
(c) /J)DITIONAL REQUIREMENTS.—^Any student seeking a loan 
under this part shall apply for and accept the maximum financial 
aid available from other sources. However, for purposes of determin-
ing eUgibiUty, loans provided under this program may not be consid-
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 811 
ered in needs ansdysis under any other Federal law, and may 
not penalize students in determining eligibility for other funds. 
SEC. 1346. SERVICE FULFILLMENT AND CONDITIONS; REPAYMENTS; 25 USC 3336. 
WAIVERS. 
(a) SERVICE AGREEMENT REQUIRED.— 
(1) IN GENERAL.—Prior to receipt of a loan imder this part, 
the tribe or tribal organization and the eligible recipient shall 
enter into a written agreement, subject to the conditions of 
this section, which commits the recipient— 
(A) to perform, for each academic year for which the 
student receives assistance imder this part one cedendar 
year of service to the tribe or organization in an occupation 
related to the course of study pursued and an economic 
or social development plan developed by the tribe or tribal 
organization, commencing not later than 6 months after 
the student ceases to carry at an institution of higher 
education at least one-half the normal full-time academic 
workload as determined by the institution; or 
(B) to repay to the tribe or tribal organization the full 
amoimt of the loan, in monthly or qu^erly installments 
over not more than 5 years. 
(2) REPORT REQUIREMENT.—Funds recovered pursuant to 
paragraph (1)(B) shall be reported annually to the Secretary 
and invested in the accoimt estabhshed imder section 1343. 
(b) SERVICE LIMITATIONS AND CONDITIONS.—The tribe or tribal 
organization shall agree that a student performing services under 
this part— 
(1) shall be provided compensation, benefits, and working 
conditions at the same level and to the same extent as any 
other employee working a similar length of time and doing 
the same type of work; 
(2) may be treated as providing services to the tribe or 
organization if the student provides services for members of 
the tribe or organization that are approved by the tribe or 
organization and agreed to by the student even though such 
services are performed while the student is employed by a 
Federal, State, or local agency or instrumentality or by a non-
profit or for-profit private institution or organization; and 
(3) may obtain the benefits of a waiver or suspension in 
accordance with the requirements of subsection (c). 
(c) WAIVER AND SUSPENSION OF SERVICE AGREEMENT.— 
(1) WAIVER.—^An Indian tribe or tribal organization may, 
by formal action, waive the service agreement of an Indian 
student for just cause, as determined in accordance with regula-
tions prescribed by the Secretary. The tribe or organization 
shsdl notify the Secretary in writing of any waiver granted 
imder this subsection. 
(2) SUSPENSION.—The obligation of a student to perform serv-
ices imder this part— 
(A) shall be suspended for not more than 18 months 
if, at the request of the student, the tribe or organization 
determines that there are no emplojmient opportunities 
available in any applicable area; and 
(B) shall be suspended if the student ceases to attend 
an institution of higher education as a consequence of 
106 STAT. 812 
PUBLIC LAW 102-325—JULY 23, 1992 
an institutional determination of unsatisfactory perform-
ance. 
If, at the end of a period of suspension under subparagraph 
(A), there are still no emplojmaent opportunities available which 
fulfill the requirements of this part, the student's obligations 
under the agreement shall terminate. A suspension imder sub-
paragraph (B) shall be reviewed by the tribe or organization 
annually, but may be continued indefinitely. 
Regulations. 
(d) PRO R
A
T
A REDUCTION FOR PARTIAL SERVICES.—The Secretary 
shall, by regulation, provide for the pro rata reduction of repayment 
obligations under subsection (a)(2XB) in the case of any student 
who peirtially completes the service obligation of that student under 
subsection (a)(2)(A). 
(e) CERTIFICATION OF SERVICE.—An Indian tribe or tribal 
organization receiving services under this part— 
(1) shall estabUsh procedures for monitoring and evaluating 
the provisions of this part, and provide a copy of such proce-
dures to the Secretary and to each individual providing services 
under a critical area service agreement; 
(2) shsill annually certify to the Secretary the identities of 
the individuals performing service imder such agreements; and 
(3) shaU annually certify to the Secretary the amount of 
service performed, and the amount remaining to be performed, 
by each such individual under such agreements. 
25 use 3337. 
SEC. 1347. ADMINISTRATION. 
(a) REGULATIONS.—^The Secretary shall establish, by regulation, 
an application process containing such requirements as the Sec-
retary deems necessary for piirposes of making grants to eUgible 
entities under this part, provi(Ung that the Secretary shaU take 
into accoimt in reviewing applications under this part the number 
of students with partial completion identified by the applicant, 
relative to the total number of the members of tribe which would 
be benefited by provision of services under section 1346, and shaU 
attempt to achieve geographic and demographic diversity in grants 
made imder this part. 
(b) GRANT PROCEDURES.— 
(1) IN GENERAL.—Subject to the availability of funds and 
acceptable applications, the Secretary shall make 5 grants to 
tribes or tribal organizations for purposes of this part, each 
grant to be for a period of 4 years. 
(2) ADMINISTRATIVE COSTS.—^The amount of administrative 
costs associated with grants irnder this part shall be negotiated 
by the Secretary witii the successfiil applicants and made a 
part of the grant agreement. 
(c) DEFINITIONS.—For the purposes of this part, the terms 
"Indian", "Indian tribe", "Secretary", and "tribal organizations" have 
the same meanings given such terms in sections 4 (d), (e), (i), 
and (1), respectively, of the Indian Self Determination and Education 
Assistance Act (P.L. 93-638, 20 U.S.C. 450b). 
25 u s e 3338. 
SEC. 1348. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out this part, 
$2,000,000 for fiscal year 1993 and such sums as may be necessary 
for each of 
the 4 succeeding fiscal years. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 813 
PART F—AMERICAN INDIAN POSTSECONDARY 
ECONOMIC DEVELOPMENT SCHOLARSfflP 
SEC. 1361. AMERICAN INDIAN POSTSECONDARY ECONOMIC DEVELOP- 25 USC 3351. 
MENT SCHOLARSHIP. 
(a) PROGRAM AUTHORIZED.—The Secretary of Education is author-
ized to make grants, in accordance with the provisions of this 
part, to federally recognized Indian tribes which lack suf&cient 
numbers of professionaUy trained tribal members to support estab-
Ushed or ongoing economic development initiatives. Priority shall 
be given to tribes which are not served by federally funded post-
secondary institutions. The purpose of such grants is to enable 
such tribes to make scholarships available to tribal members to 
assist such members to pursue courses of study leading to an 
undergraduate or postbaccalaureate degree in order to provide pro-
fessionally trained tribal members to support such economic devel-
opment initiatives on Indian reservations. 
(b) DESIGNATION.—^A scholarship awarded under this part shall 
be referred to as an "American Indian Post-Secondary Economic 
Development Scholarship" (heresifter referred to in this part as 
"scholarship"). 
SEC. 1362. INDIAN SCHOLARSHIPS. 
25 USC 3352. 
(a) SELECTION.—Each Indian tribe receiving a grant pursuant 
to this part for the purpose of providing scholarships shall select 
tribal members eligible to receive such scholarships. In determining 
grant recipients the Secreteiry of Education shall consider— 
(1) geographic distribution of grants; and 
(2) a tribal economic plan which demonstrates how individual 
recipients shall benefit the economic conditions of the tribe. 
(b) CRITERIA.—Each Indian tribe, in consultation with the Sec-
retary of Education, shall give preference to select, as those tribal 
members eligible to receive such scholarships, tribal members who 
have successfully completed at least 30 hours of postsecondeiry 
education and who are eligible for readmission to a postsecondary 
institution. 
SEC. 1363. SCHOLARSHIP CONDITIONS. 
25 USC 3353. 
(a) SCHOLARSHIP AGREEMENT.—Each tribal member receiving a 
scholarship imder this pgirt shall enter into £ui agreement, satisfec-
tory to the Secretary of Education and the tribal government award-
ing such scholarship, imder which such member agrees— 
(1) to utilize the proceeds of such scholarship to pursue 
a course of study which meets the requirements of the edu-
cational institution in which the student is enrolled for an 
imdergraduate or postbaccalaureate degree; 
(2) upon the acquisition of such degree, to work, one yeeir 
for each yeeir of financial assistance under this part, on the 
Indian reservation in employment related to the course of study 
pursued which will support economic development initiatives 
on such reservation; and 
(3) to maintain satisfactory academic progress, as determined 
in accordance with section 484(c) of the Higher Education Act 
of 1965, while in an xindergraduate or postbaccalaureate pro-
gram. 
106 STAT. 814 
PUBLIC LAW 102-325—JULY 23, 1992 
(b) REPAYMENTS.—Each tribal member found by the Secretary 
of Education to be in noncompliance with the agreement pursuant 
to subsection (a)(2) shall be required to repay— 
(1) 100 percent of the total emaount of scholarships awarded 
under this p£urt if such tribal member does not work pursuant 
to such agreement; or 
(2) a pro rata portion of the total amount of scholarships 
awarded under this part, as determined by the Secretary of 
Education, if such tribal member worked pursuant to such 
agreement but less than the time period required thereunder. 
(c) WAIVER A
N
D SUSPENSION OF SERVICE AGREEMENT.— 
(1) WAIVER.—^A federally recognized Indian tribe may, by 
formal action, waive the service agreement of a tribal member 
for just cause, as determined in accordance with regulations 
prescribed by the Secretary. The tribe shall notify the Secretary 
in writing of any waiver granted under this subsection. 
(2) SUSPENSION.—^The obUgation of a tribal member to per-
form services under this part— 
(A) shall be suspended for not more than 18 months 
if, at the request of the tribal member, the tribe determines 
that there are no employment opportunities available in 
any appUcable area; and 
(B) shall be suspended if the tribal member ceases to 
attend an institution of higher education as a consequence 
of an institutional determination of unsatisfactory perform-
ance. 
If, at the end of a period of suspension under subparagraph 
(A), there are still no employment opportunities available which 
AilfiU the requirements of this part, the tribal member's obliga-
tions under tiie agreement shall terminate. A suspension under 
subparagraph (B) shall be reviewed by the tribe annually, 
but may be continued indefinitely. 
(d) DISCLAIMER.—^No scholarship awarded pursuant to this part 
shall be considered in determining eligibility for student £issistance 
under title IV of the Higher Education Act of 1965. 
(e) LIMITATION.—^Any tribal member selected by an Indian tribe 
to receive a scholarship \mder this part shall be eUgible to receive 
a $10,000 scholarship for each academic year of postsecondary 
education, except that no such member shaU receive scholarship 
assistance under this part for more than 4 years of postsecondary 
education (including postbaccalaureate). 
(f) COST OF ATTENDANCE.—Calculation of the cost of attendance 
for the tribal member shall include all costs as determined by 
the tribe for the purposes of fulfilling the poUcy of this part. 
(g) ADDITIONAL REQUIREMENTS.—^Any tribal member seeking a 
loan under this part shall apply for and accept the maximum 
financial aid available firom other sources. However, for purposes 
of determining eligibiUty, loans provided under this program may 
not be considered in needs analysis under any other Federal law, 
and may not penalize tribal members in determining eligibility 
for other funds. 
(h) APPLICATIONS FOR ASSISTANCE.—^Any federally recognized 
Indian tribe desiring a grant under this part shad submit an 
appUcation to the Secretary of Education at such time, in such 
manner, and containing such information as the Secretary may 
reasonably require. Each such appUcation shall— 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 815 
(1) describe the shortages on the reservation of such Indian 
tribe of professionally trained tribal members necesssiry to sup-
port economic development initiatives on such reservation; 
(2) provide assurances that the Indian tribe will assist in 
employment placement on the reservation of tribal members 
receiving scholarship assistance under this part; and 
(3) provide assurances that any tribal member performing 
work pursuant to this peui; will be provided compensation, 
benefits, and working conditions at the same level £md to the 
same extent as any other employee working a similar length 
of time and doing the same type of work. 
SEC. 1364. REPORT. 
25 USC 3354. 
Each federally recognized Indian tribe receiving a grant pursuant 
to this part shall annually report to the Secretary concerning the 
administration of such grant, including the identities of any individ-
ual receiving a scholarship pursuant to this part, and of any individ-
ual performing service pursuant to his or her commitment imder 
this part. 
SEC. 1365. AUTHORIZATION OF APPROPRIATIONS. 
25 USC 3355. 
For the purpose of carrying out the provisions of this part, there 
are authorized to be appropriated $2,000,000 for fiscal year 1993 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years. 
PART G—AMERICAN INDIAN TEACHER 
TRAINING 
SEC. 1371. AMERICAN INDIAN TEACHER TRAINING. 
20 USC 3371. 
(a) INSTITUTIONAL SUPPORT.— 
(1) IN GENERAL.—The Secretary of Education is authorized 
to award grants to tribally controlled postsecondary, vocational 
and technical institutions for the purposes o
f
— 
(A) developing teacher training programs; 
(B) building articulation agreements between such 
institutions and other institutions of higher education as 
defined in section 1201(a) of the Higher Education Act 
of 1965; and 
(C) basic strengthening of tribally controlled community 
colleges, as defined in section 2(aX4) of the Tribally Con-
trolled Commimity Colleges Act (P.L. 95-471, 25 U.S.C. 
1801). 
(2) USE OF GRANTS.—Grants awarded imder this subsection 
shall be for the purpose of providing upper division course 
work, transfer programs, articulation agreements (simUar to 
those under part D of title I of the Higher Education Act 
of 1965) with other accredited institutions, telecommunications 
programs or other mechanisms which directly support the train-
ing of 
American Indian teachers. 
(b) STUDENT SUPPORT GRANTS.— 
(1) IN GENERAL.—^The Secretary of Education is authorized 
to award grants to institutions that have developed teacher 
training programs imder subsection (a) for the purpose of pro-
viding financial and programmatic support to American Indian 
students seeking to participate in such institutions' teacher 
training programs. 
106 STAT. 816 
PUBLIC LAW 102-325—JULY 23, 1992 
* 
(2) USE OF GRANTS.—Institutions receiving grants under this 
section shall require recipients of grants under this subsection 
to serve as teachers in an Indian community for 1 year for 
each year of scholarship support received. 
(3) ELIGIBILITY.—Students eligible to receive support grants 
shall include those who have completed at least 30 hours of 
postsecondary education and who intend to pursue a 4-year 
degree. 
(4) WORK REQUIREMENT.—Students who fail to satisfy the 
requirements of paragraph (2) shall be required to repay a 
pro rata portion of the total amount of scholarships awarded 
vmder this part if the student worked for less than tne required 
time period described in such paragraph. 
(c) SCHOLARSHIPS.— 
(1) AUTHORITY.—:The Secretary of Education is authorized 
to provide scholarship assistance to American Indian students 
who seek to become teachers and who— 
(A) agree to serve as teachers in an Indian community 
for 1 year for each year of scholarship support received, 
and 
(B) have completed at least 30 hours of postsecondary 
education. 
(2) WORK REQUIREMENT.—Students who fail to satisfy the 
requirements of paragraph (1) shall be required to repay a 
pro rata portion of the total amount of scholarships awarded 
under this psirt if the student worked for less than the required 
time period described in paragraph (1)(B). 
(d) DEFINITION.—For purposes of this part, the term "Indian" 
has the same meaning given such term in section 4(d) of the 
Indian Self Determination and Education Assistance Act (P.L. 93-
638, 20 U.S.C. 450b). 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $5,000,000 for fiscsQ year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years 
to carry out this part. 
TITLE XIV—STUDIES AND 
COMMISSIONS 
PART A—STUDIES BY THE DEPARTMENT OF 
EDUCATION 
20 use 1071 
SEC. 1401. STUDY OF ROLE OF GUARANTY AGENCIES. 
(a) STUDY.—^The Secretary of Education shall review the role 
of guaranty agencies within the Federal Family Education Loan 
Progr£im by examining the administrative and financial operations 
of such agencies and the relationships between guaranty agencies 
and State governments. 
(b) REPORT.—^The Secretary of Education shall report to the Con-
gress within 1 year of the date of enactment of this Act on the 
study described in subsection (a). Such report shall consider and 
make recommendations concerning— 
(1) increasing the role of guaranty agencies in oversight smd 
licensing of proprietary trade schools under the Federcd Family 
Education Loan Program; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 817 
(2) strengthening Federal disincentives for high default rate 
portfolios; 
(3) consolidating guaranty agencies regionally or otherwise; 
(4) eliminating the role of guaranty agencies within the Fed-
eral Family Education Loan ftogram; and 
(5) the compensation of chief executive officers and manage-
rial staffs of guaranty agencies. 
SEC. 1402. STUDY OF STATUTORY PROTECTIONS. 
Reports. 
The Secretary of Education shall report to the Confess within 
180 days of the date of enactment of the Higher Education Amend-
ments of 1992 on the advisabiUty of statutorily protecting officials 
of accrediting agencies involved in the performance of legitimate 
Federal Family Education Loan Program activities. 
SEC. 1403. STUDY OF FRAUD-BASED DEFENSES. 
20 USC 1080 
(a) STUDY.—^The Secretary shall conduct a study of the impact 
of fraud-based defenses on the Federal Family Education Loan 
Program. Such study shall include— 
(1) an analysis of statutory, regulatory, and case law regard-
ing the use of fraud-based defenses against repayment of such 
loans; 
(2) an estimate of the total number of borrowers filing for 
relief from repajnnent of such lo£ins using a fraud-based defense 
and amount of such loan principal involved; 
(3) an estimate of such loan principal reUeved annually 
through fraud-based defenses; 
(4) an evaluation of the importance of a fraud-based defense 
to the protection of borrowers of such loans; and 
(5) an evaluation of the effects of the availability of a fraud-
based defense on the accessibility of Stafford loans by geo-
graphical area and by t3rpe of postsecondary institution. 
(b) DATE.—^The study described in subsection (a) shall be com-
pleted not later than 18 months after the date of enactment of 
this Act. 
(c) REPORT.— 
(1) IN GENERAL.—^The Secretary shall submit a report to 
the Congress on the study described in subsection (a) that 
makes specific recommendations for legislative options that 
may be needed to address the rights of borrowers with respect 
to the availabiUty of fraud-based defenses imder the Federal 
Family Education Loan Program without jeopardizing the par-
ticipation of lenders or the solvency of guaranty agencies 
required to msdntain the integrity of such progrsun. 
(2) DATE.—^The report described in paragraph (1) shall be 
completed not later than 19 months after the date of enactment 
of this Act. 
SEC. 1404. D
A
T
A ON NONTRADITIONAL STUDENTS. 
20 USC1221e 
(a) STUDY REQUIRED.—The Secretary of Education shall conduct ''°^" 
a 2-year study regarding the types of programs available for, and 
determine the success or failure of such programs in, increasing 
the accessibiUty for nontraditional students to postsecondary edu-
cation. The study shall be conducted through the Office of Edu-
cational Research and Improvement. 
(b)PURPOSE.—The purpose of the study shall be— 
(1) to appraise the adequacies £ind deficiencies of current 
student financial aid information resources and services and 
106 STAT. 818 
PUBLIC LAW 102-325—JULY 23, 1992 
evaluate the effectiveness of these programs as they pertain 
to the nontraditional student; 
(2) to investigate the availabiKty of grants and loans £ind 
other financial assistance to nontraditional students (including 
independent students and part-time students); 
(3) to assess the availability of supportive services for the 
nontraditional students including (but not limited to) counsel-
ing, child care services, campus health center services, and 
library services; 
(4) to make recommendations on how the Department of 
Education can maintain an effective data base regarding non-
traditional students that will include— 
(A) a yearly coimt of the number of students who are 
nontraditional and breakdown of the institutions they are 
attending; 
(B) the number of nontraditional students who work 
and go to school; 
(C) the extent of participation in Federal student aid 
programs; 
(D) the amoiuit of immet costs of postsecondary education 
for nontraditional students; and 
(E) trends over the last decade regeirding participation 
of nontraditional students in title IV programs. 
(c) REPORT.—^The Secretary of Education shall submit an interim 
report to the Committee on Education and Labor of the House 
of Representatives and the Committee on Labor and Humsin 
Resources of the Senate within 1 year after the date of enactment 
of this section and submit a final report 2 years after such date 
of enactment. 
SEC. 1405. STUDY OF FEDERAL BENEFIT COORDINATION. 
(a) IN GENERAL.—The Secretary of Education shall conduct a 
study to evaluate the coordination of Federal student financial 
assistance programs under title IV of the Higher Education Act 
of 1965 with other programs funded in whole or in part with 
Federal funds, giving particular attention to— 
(1) the effect of receipt of program assistance under title 
rv of the Higher Education Act of 1965 on students eligible 
for other programs funded in whole or in part with Federal 
funds, including reduction or denial of such other program 
funds; and 
(2) the attendance cost elements funded in whole or in part 
by programs luider title IV of the Higher Education Act of 
1965 for students eligible for other Federal progrgons and the 
inclusion of room or board costs in such attendance costs. 
(b) REPORT.—The Secretary of Education shall prepare and sub-
mit to the appropriate committees of the Congress a report on 
the study conducted pursuant to subsection (a) not later than 3 
years after the date of enactment of this Act, together with such 
recommendations as the Secretary of Education deems appropriate. 
Disadvantaged. 
SEC. 1406. NATIONAL SURVEY OF FACTORS ASSOCIATED WITH PAR-
TICIPATION. 
(a) AUTHORITY OF THE SECRETARY OF EDUCATION.—In order to 
assure improved and accurate data on the participation of at-risk 
students in postsecondary education, the Secretary of Education, 
acting through the National Center for Educational Statistics, shall 
conduct a special purpose survey on a biennial basis of factors 
20 use 1070 
note. 
Handicapped. 
Minorities. 
20 use 1221e-l 
note. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 819 
associated with participation of low-income, disadvantaged, non-
EngUsh language background, disabled, and minority students, 
including (but not limited to) African American, Native Americans, 
Native Hawaiians, major Hispanic subgroups, and Asian students 
from disadvantaged backgrounds in various tj^es of postsecondary 
education. The survey data shall permit comparisons with other 
groups that have characteristically participated at higher rates 
than at-risk students. 
(b) DEVELOPMENT OF THE SURVEY.—The Secretary of Education 
shall consult with the Congress and the elementary and secondary 
and higher education commxmity in developing such an annual 
survey. Tlie survey shall include, but not be hmited to— 
(1) academic preparation of groups at key points in the 
elementary and secondary education process; 
(2) rates of academic progress and graduation from high 
school; 
(3) participation in postsecondary education by type and con-
trol of institution and by program of study; 
(4) persistence rates in postsecondeiry programs, or, in the 
case of short-term programs, completion rates; and 
(5) average student financisd assistance awarded to groups, 
including Federal, State, and other assistance. 
(c) REPORT TO CONGRESS.—The Secretary of Education shall 
report relevant data and conclusions from the survey to Congress 
on an annual basis, including comparisons of important factors 
for at-risk and other relevant populations. 
(d) DEVELOPMENT OF PLAN.—In the event of significant findings 
related to underparticipation rates of at-risk and other students, 
the Secretary of Education shall submit a plan containing policies 
and program modifications for ensuring the participation of at-
risk students. The plan shall indicate the modifications the Sec-
retary will make to increase participation, including, but not limited 
to, increasing information and training, and recommending other 
relevant changes to the programs under this title. 
(e) PANEL SURVEY O
N INCOME DYNAMICS.— 
(1) IN GENERAL.—The Secretary of Education, acting through 
the National Center for Education Statistics, shall make an 
interagency agreement with the National Science Foundation 
to provide for additional questions and an appropriate sample 
size as part of an existing panel study of income dyneunics 
to provide information on Qie educational processes and other 
developmental behavior of Hispanic, black, and non-Hispanic 
white children and their short-term £uid long-term con-
sequences. 
(2) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated $900,000 for fiscal year 1993 and such 
sums for each of the 4 succeeding fiscal years to carry out 
this subsection. 
SEC. 1407. EVALUATION OF TUITION GUARANTY PROGRAMS. 
20 USC 1070a-21 
(a) PURPOSE.—^The purposes of this section are— 
(1) to require the Secretary of Education to determine the 
effectiveness of programs for disadvantaged elementary and 
secondary school students that offer gusirantees for postsecond-
ary education; and 
(2) to identify ways to encourage the business community 
to participate in such programs. 
106 STAT. 820 
PUBLIC LAW 102-325—JULY 23, 1992 
(b) CONDUCT OF STUDY.— 
(1) IN GENERAL.—^The Secretary of Education shall evaluate 
the efifectiveness of programs for disadvantaged children that, 
in exchange for the child's commitment to achieving a satisfac-
tory elementary and secondary education, promise the child 
the financial resources needed to pursue a postsecondary edu-
cation. 
(2) CONTENT.—^The Secretary of Education shall study a sam-
ple of the types of programs available, and (A) determine the 
success or failure of such programs in increasing the access 
and entry of disadvantaged students into postsecondary edu-
cation, (B) identify the most successful programs and the causes 
for success, and (C) determine the responsibiHties of sponsors 
oftheprogrcuns. 
(3) PROGRAMS STUDIED.—The progrcims studied shall include 
a guaremtee of postsecondary education for students currently 
in elementary or secondary grade levels. The programs may 
include supportive services, mentoring, study slalls, and coun-
seling to students participating in the program. 
(c) DISSEMINATION.—^The Secretary of Education shall disseminate 
the findings through appropriate agencies and organizations includ-
ing associations of businesses. 
(d) SUBMISSION OF REPORT.—The Secretary of Education shall 
submit an interim report regarding the study by June 30, 1996, 
and a final report regarding the study by January 1, 1997, to 
the Committee on Education and Labor of the House of Rep-
resentatives and the Committee on Labor and Human Resources 
of the Senate. 
20 use 1134 
SEC. 1408. EWORMATION ON GRADUATE EDUCATION. 
(a) ASSESSMENT REQUIRED.—The Secretary of Education shall 
conduct a study which will provide an assessment of the information 
currently collected on graduate education and will identify what 
additional information should be generated to guide the Department 
of Education in defining and executing its role in the support 
of graduate education. 
(b) SUBJECT OP ASSESSMENT.—^The assessment required by sub-
section (a) shall include the assessment of the total amount of 
Federal, State, private, foimdation, and institutional fellowships, 
assistantships, loans, or any other forms of financisd assistance 
to all graduate students, including both American and foreign stu-
dents; and how these amoimts are distributed by race, by sex, 
to nontraditional students, and to students with disabiUties. In 
addition, the assessment sheill determine the number of graduate 
students, cross-referenced by race, sex, and nationeil origin, psirt-
time, fiiU-time, independent versus dependent status, and individ-
u£ds with disabilities who enrolled and completed all requirements 
for the degrees master of arts, master of science, master in business 
administration, doctor of philosophy, doctor of education, juris doc-
tor, medical doctor, doctor in veterinary medicine, and doctor of 
dental science. 
(c) CONSULTATION.—In conducting such study, the Secretary of 
Education shall consult with other agencies and organizations 
involved in graduate education pohcy, including the Congressional 
Office of Technology Assessment, the President's Office of Science 
and Technology Policy, the National Science Foundation and the 
other Federal agencies supporting academic research and graduate 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 821 
education, the National Academy of Sciences and other pubhc and 
private organizations which participate in the formulation and 
unplementation of national graduate education policies and pro-
grams. 
(d) DATE FOR COMPLETION.—The study shall be completed within 
2 years of the date of enactment of this Act. 
SEC. 1409. STUDY OF ENVIRONMENTAL HAZARDS IN INSTITUTIONS 
20 USC 1132a 
OF HIGHER EDUCATION. 
"o*®-
(a) STUDY AUTHORIZED.—The Secretary of Education, in coopera-
tion witih the Administrator of the Environmental Protection 
Agency, is authorized to conduct a studv of the extent to which 
asbestos, lead in drinking water, or radon gas pose a threat to 
the health and safety of students and employees of institutions 
of higher education. 
(b) SURVEY REQUIRED.—Such study shall include a survey of 
a representative sample of institutions of higher education in order 
to assess how widespread such hazards are. A sufficient number 
of institutions shsJl be sampled and tested in order to provide 
reasonable estimates on— 
(1) the number of institutions which contain friable asbestos 
(as defined in the Asbestos Hazard Emergency Response Act) 
and how many students and employees may be exposed to 
unsafe levels of asbestos fibers, 
(2) the number of institutions that have rooms which contain 
more than 4 picocuries/liter of radon, and 
(3) the number of institutions which contain water foimtains 
or faucets or water coolers which discharge water with more 
than 10 parts per billion of lead. 
(c) CONSULTATION.—In designing and ceinying out such study, 
the Secretary shall consult with associations representing institu-
tions of higher education, faculty, and other employees. 
(d) REPORT ON STUDY.—The Secretary of Education shall submit 
a report with the results of the assessment, including the informa-
tion required by subsection (b), £dong with recommendations by 
the Secretary reearding what actions, if any. Congress and the 
Administration should take to ensure that environmental health 
hazards, if any, are eliminated. The report shall be presented to 
Congress not later than July 1,1995. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $3,000,000 in fiscal year 1994 for the purposes 
of carrying out this section. 
SEC. 1410. STUDY OF CIVILIAN AVIATION TRAINING PROGRAMS. 
20 USC 1221-1 
(a) FINDINGS.—The Congress finds that^ 
"°*®' 
(1) the role of the militaiy as a source of supply of trained 
pilots and mechanics and other personnel for commercial avia-
tion is severely reduced; 
(2) approximately 50 percent of the 52,000 commercial pilots 
currently flying will retire by the year 2000 and an additional 
8,000 to 10,000 pilots will be needed by then; 
(3) there is significant underrepresentation of minorities and 
women currently working in the aviation industry and Afiican 
Americans constitute less than 1 percent of pilots with the 
Nation's scheduled air cahiers; 
(4) there is a substantial projected increase of minorities 
and women as a proportion of the workforce by the year 2000; 
and 
106 STAT. 822 
PUBLIC LAW 102-325—JULY 23, 1992 
(5) there is need for a comprehensive study of future human 
resources needs for the air transportation industry, including 
a thorough investigation of recruitment, aviation training out-
side the miUtary context, financial and otiier incentives and 
disincentives which sififect the flow of people, and especially 
minorities and women, into the industry. 
(b) STUDY REQUIRED.—The Secretary of Education shall enter 
into appropriate arrangements with the National Academy of 
Sciences Commission on Behavioral and Social Sciences and Edu-
cation to study civilian aviation training programs needed to satisfy 
the workforce requirements of the commercial aviation industry 
in the year 2000 and beyond. The specific concerns to be addressed 
by the study shall include— 
(1) the avenues for civilians to enter the aviation industry, 
(2) the characteristics of current training and the match 
with skiU requirements in the workplace, and 
(3) the impediments and incentives for minorities emd women 
to enter the aviation industry (such as a lack of role models, 
cost of schooling and flight time, the underutiHzation of histori-
cally black colleges and universities in the educational training 
process, and institutional barriers). 
(c) INTERIM REPORT.—^The Secretary of Education shaU request 
that the National Academy of Sciences Commission on Behavioral 
and Social Sciences and Education submit an interim report to 
the Secretary and the Congress within 1 year after the date of 
enactment of this Act, and the study shaU be completed within 
2 years of the date of enactment of this Act. 
SEC. 1411. REPORT ON THE USE OF PELL GRANTS BY PRISONERS. 
(a) REPORT REQUIRED.—^The Secretary of Education shall submit 
to the Congress a report on the use of PeU Grants by prisoners. 
Such report shall contain a statement o
f
— 
(1) the nimiber of 
prisoners receiving Pell Grants; 
(2) the average amoimt of the PeU Grants awarded to pris-
oners; 
(3) the average length of Pell Grant subsidized study for 
prisoners; 
(4) the graduation or success rate of prisoners receiving Pell 
Grants; 
(5) an analysis of whether prisoners' lack of income has 
made them more successful in obtaining Pell Grants over other 
low-income citizens who are not incarcerated; 
(6) an analysis of whether prisoners lack of income provides 
them with £in advantage in receiving Pell Grants; and 
(7) the Secretary's recommendations for making the program 
more equitable with regard to awards to prisoners in relation 
to other applicants. 
(b) DEADLINE FOR SUBMISSION.—The report required by sub-
section (a) shall be submitted not later than 6 months after the 
date of enactment of this Act. 
20 use 1101 
SEC. 1412. NATIONAL JOB BANK FOR TEACHER RECRUITMENT. 
(a) FEASIBILITY STUDY.—The Secretary of Education is authorized 
to conduct a study on the feasibility o
f
— 
(1) estabHshing a clearinghouse to operate a national teacher 
job bank; or 
(2) establishing regional clearinghouses to operate regional 
teacher job banks. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 823 
(b) NATIONAL TEACHER JOB BANK DEMONSTRATION.— 
(1) PROGRAM AUTHORIZED.—The Secretary of Education is 
authorized to contract with one or more State entities, nonprofit 
organizations, or institutions of higher education to estabUsh 
a national or regional teacher job bank clearinghouse which 
shall— 
(A) assist local educational agencies and private schools 
in locating qualified applicants for teaching-related posi-
tions; and 
(B) help individuals in locating teaching-related jobs or 
the training necessaiy to enter the teaching profession 
or the field of early childhood or preschool education. 
(2) APPLICATION REQUIRED.—Each entity desiring to enter 
into a contract with the Secretary of Education for the establish-
ment of a teacher job bank clearinghouse shall submit an 
application to the Secretaiy at such time, in such manner 
and accompanied by such information as the Secretary may 
reasonably require. Each such application shall include— 
(A) a demonstration of the applicant's capacity to effi-
ciently and effectively handle a large volimie of inquiries 
from employers and potential employees; 
(B) a demonstration of support fi*om local educational 
agencies and private schools and institutions of higher 
education that are likely to use the services provided by 
the teacher job bank clearinghouse; and 
(C) a demonstration of ability to provide prospective 
teachers with information, either directly or by contract 
with another entity, regarding the certification and licen-
sure requirements of each state which is served by a 
clearinghouse and information regarding procedures for 
assisting out-of-State teachers to meet State certification 
requirements. 
(3) RuoRlTY.—^The Secretary shall give priority to applica-
tions submitted pursuant to paragraph (2) which— 
(A) demonstrate the ability to serve a region of the United 
States and involve the cooperation of several State edu-
cational £igencies and institutions of higher education; or 
(B) demonstrate an ability to address shortages of teach-
ers, such as teachers fi-om minority groups, special edu-
cation teachers, bilingual teachers, or individuals planning 
to teach in subject areas, geographical areas, or types of 
schools with shortages. 
(c) USE OP FUNDS.—Each entity, organization, or institution 
receiving fiinds imder this section may use such funds to— 
(1) develop, in consultation with local education agencies 
and other appropriate entities, standardized initial appucation 
forms for teaching jobs and related positions, and standardized 
forms and procedures for announcing available teaching posi-
tions; 
(2) coordinate and assist State and local teacher recruitment 
efforts; 
(3) publish and disseminate information about opportunities 
for teacher employment and teacher training; 
(4) maintain a system for matching available teachers with 
job openings for which they are qualified and for trackmg 
the supply of teachers and the demsind for teachers among 
the States; 
106 STAT. 824 
PUBLIC LAW 102-325—JULY 23, 1992 
National 
Independent 
Collies and 
Universities 
Discovery 
Act. 
20 u s e 1221-1 
note. 
(5) encoiirage the development of programs to recruit and 
train minorities and individuals wim disabilities to become 
teachers; 
(6) assist employers in checking the backgroimd of appliceints; 
(7) publicize the availability of scholarships, loans, and other 
programs t^at assist individusds wishing to pursue a teaching 
career; 
(8) assist employers in the development of effective teacher 
recruitment programs; 
(9) assist in developing reciproced agreements on teacher 
certification among States; and 
(10) conduct such other activities and services necessary to 
canying out the purposes of this section in accordance with 
the provisions of this section. 
(d) DEFINITION.—For the purposes of this section, the term 
'l^eacher'' includes elemental and secondary school classroom 
teachers, and preschool and early childhood education speciaUsts. 
(e) AUTHORIZATION.—There are authorized to be appropriated 
$2,000,000 for fiscsd year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years to carry out this section. 
PART B—NATIONAL COMMISSION ON 
INDEPENDENT HIGHER EDUCATION 
SEC. 1421. SHORT TITLE. 
This part may be cited as the **National Independent Colleges 
and Universities Discovery Act". 
SEC. 1422. FHWn^GS. 
The Congress finds that— 
(1) me quality and scope of higher education in our Nation 
is without argument the finest in the world, and a distinguish-
ing feature of our Nation's system of higher education is its 
strong and diverse nonprofit independent sector; 
(2) independent colleges and universities are as diverse as 
the Nation itself and include traditional Uberal arts institutions, 
major research universities, church- and faith-related colleges, 
colleges and imiversities primarily attended by minorities, wom-
en's colleges, junior colleges, and schools of law, medicine, 
engineering, business and other professions; 
(3) the diversity of independent colleges and universities 
offers students a choice in the type of educational e^erience 
that will best serve such students interests, needs and aspira-
tions; 
(4) independent colleges and universities enroll 21 percent 
of all students in the United States, award 33 percent of all 
bachelor's degrees in the United States, 42 percent of £dl such 
master's degrees, 36 percent of all such doctoral degrees, and 
59 percent of all such professional degrees; 
(5) a majority of all undergraduate students attending 
independent colleges and universities receive some form of 
financial assistance, and such independent colleges and univer-
sities provide such fineincial assistance fi-om their own 
resources; 
(6) independent colleges and universities are deeply involved 
in himdreds of partnerships with elementary and secondary 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 825 
schools, and such partnerships are largely funded by such col-
leges and universities; 
(7) independent colleges and universities have been an 
extraordinary example of private-public partnerships, with such 
colleges and universities operating in the public interest to 
provide a pubhc good; 
(8) less than 20 percent of the revenue of independent colleges 
and universities comes from governmental funds, most of which 
is in the form of Federal and State financial aid; 
(9) decreases in Federal and State support for student finan-
cial aid progrsuns has placed at risk the option of choosing 
an independent college or university for an increasing number 
of students; 
(10) whereas at the turn of the twentieth century 80 percent 
of the students enrolled in higher education in the United 
States were enrolled in independent colleges and universities, 
such percentage has now declined to 21 percent, and further 
erosions place at risk the option of choosing an independent 
college or university for students and parents; and 
(11) the entire sector of independent colleges and universities 
and the important contributions such sector makes to our 
Nation is at risk and deserves national policy attention. 
SEC. 1423. PURPOSE. 
It is the purpose of this part to estabUsh a National Commission 
on Independent Higher Education. 
SEC. 1424. NATIONAL COMMISSION ON INDEPENDENT HIGHER EDU-
CATION. 
(a) ESTABLISHMENT.—^There is established as an independent 
agency in the executive branch a commission to be known as the 
National Commission on Independent Higher Education (hereafter 
in this part referred to as the "Commission"). 
(b) MEMBERSHIP.— 
(1) COMPOSITION.—^The Commission shall be composed of 9 
members, 3 of whom shall be appointed by the President, 
2 of whom shall be appointed by the Speaker of the House 
of Representatives, 1 of whom shadl be appointed by the Minor-
ity Leader of the House of Representatives, 2 of whom shall 
be appointed by the Majority Leader of the Senate, and 1 
of wnom shall be appointed by the Minority Leader of the 
Senate. 
(2) EXPERTISE REQUIREMENT.—The members of the Commis-
sion shall consist of individuals with expertise and experience 
in independent higher education, including expertise in national 
tax policy, individuals with expertise in State higher education 
finance, individuals with expertise in Federal financial aid pro-
grams, individuals with expertise in issues of student and fac-
ulty diversity, and individuals with expertise in graduate edu-
cation and research. 
(3) DATE.—^The members of the Commission shall be 
appointed not later than 6 months after the date of enactment 
of this Act. 
(c) PERIOD OF APPOINTMENT; VACANCIES.—Members of the Com-
mission shall be appointed for the life of the Commission. Any 
vacancy in the Commission shall not affect its powers, but shall 
be filled in the same manner as the original appointment. 
106 STAT. 826 
PUBLIC LAW 102-325-JULY 23, 1992 
(d) MEETINGS.—^The Commission shall meet at the call of the 
Chairman. 
(e) QUORUM.—Six of the members of the Commission shall con-
stitute a quorum, but a lesser number of members may hold hear-
ings. 
(f) CHAIRPERSON.—^The Commission shall select a Chairperson 
from among its members. 
SEC. 1426. DUTIES OF THE COMMISSION. 
The Commission shall— 
(1) develop a factual base for understanding the status of 
independent colleges and imiversities, their contributions to 
pubhc priorities, and the effects of national higher education 
policies on the independent nonprofit sector; 
(2) review the issuance of Federal regulations regarding 
independent colleges and imiversities, and suggest means by 
whicn independent colleges and universities can be held 
accoimtable for use of public resources without inappropriate 
intrusion into institutional autonomy; and 
(3) address the relation between FedersJ and State poUcies 
on independent colleges and imiversities, particularly with 
respect to student access and choice, finance, institutional sub-
sidies, and institutional accoimtabiUty. 
SEC. 1426. REPORT AND RECOMMENDATIONS. 
(a) INTERIM REPORT.—The Commission shall submit an interim 
report to the President and the Congress on the Commission's 
activities and findings within 18 months of the date of enactment 
of this Act. 
(b) FINAL REPORT.— 
(1) IN GENERAL.—^The Commission shall submit a final report 
to the President and the Congress on the Commission's activi-
ties and findirigs within 3 years of the date of enactment 
of this Act. 
(2) RECOMMENDATION.—^The report described in paragraph 
(1) shall contain a recommendation regarding the establishment 
of a national poHcy on independent colleges and universities 
appropriate to meeting the Nation's higher educational goals 
in the twenty-first century. 
SEC. 1427. POWERS OF THE COMMISSION. 
(a) HEARINGS.—^The Commission may hold such hearings, sit 
and act at such times and places, take such testimony, and receive 
such evidence as the Commission considers advisable to carry out 
the purposes of this part. 
(b) INFORMATION FROM FEDERAL AGENCIES.—The Commission 
may secure directly from anjr Federal department or agency such 
information as the Commission considers necessary to carry out 
the provisions of this part. Upon request of the Chairperson of 
the Commission, the head of such department or agency shall 
fiimish such information to the Commission. 
(c) GIFTS.—^The Commission may accept in the name of the United 
States grants, gifts, and bequests of money for immediate disburse-
ment in furtherance of the functions of the Commission. Such 
grants, gifts, and bequests, after acceptance by the Commission, 
shall be paid by the donor or representative of the donor to the 
Treasurer of the United States, whose receipts shall be their acquit-
tance. The Treasurer of the United States shall enter such grants. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 827 
gifts, and bequest in a special account to the credit of the Commis-
sion for the purposes specified. 
(d) AUTHORIZATION OP APPROPRIATIONS.—There are authorized 
to be appropriated $1,000,000 to carry out this part for fiscal 
year 1993 and each succeeding fiscal year. Amounts appropriated 
under this subsection are authorized to remain available until 
expended, or until the Commission is terminated, whichever occurs 
furst. 
SEC. 1428. COMMISSION PERSONNEL MATTERS. 
(a) TRAVEL EXPENSES.—From amounts appropriated under section 
1427(d), the members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code, while away from their homes or 
regular places of business in the performance of services for the 
Commission. 
(b) DETAIL OP GOVERNMENT EMPLOYEES.—Any Federal Govern-
ment employee may be detailed to the Commission without 
reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege. 
(c) STAFP.— 
(1) IN GENERAL.—^The Chairperson of the Commission may, 
without regard to the civil service laws and regulations, appoint 
and terminate an executive director and not more than 2 staff 
members to enable the Commission to perform its duties. The 
employment of an executive director shall be subject to con-
firmation by the Commission. 
(2) COMPENSATION.—^The Chairperson of the Commission may 
fix the compensation of the executive director and not more 
than 2 staff members without regard to the provisions of chap-
ter 51 and subchapter III of diapter 53 of title 5, United 
States Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay for the executive 
director and such staff may not exceed the rate payable for 
level 15 of the General Schedule classified under section 5107 
of such title. 
SEC. 1429. TERMINATION OF THE COMMISSION. 
The Commission shall terminate 3 years after the date of enact-
ment of this Act. 
PART C—NATIONAL COMMISSION ON THE 
20 use 1221-1 
COST OF HIGHER EDUCATION 
SEC. 1441. ESTABLISHMENT OF COMMISSION. 
There is established a Commission to be known as the 'National 
Commission on the Cost of Higher Education** (hereafter in tiiis 
part referred to as the "Commission"). 
SEC. 1442. MEMBERSHIP OF COMMISSION. 
(a) APPOINTMENT.—-The Commission shall be composed of 12 
members as follows: 
(1) Four citizens of the United States appointed by the Presi-
dent. 
(2) Two Senators appointed by the Mtgority Leader of the 
Senate, of 
which— 
106 STAT. 828 
PUBLIC LAW 102-325—JULY 23, 1992 
(A) one shall be a member of the Committee on Labor 
and Human Resources of the Senate; and 
(B) one shall be a member of the Committee on Appro-
priations of the Senate. 
(3) Two Senators appointed by the Minority Leader of the 
Senate, of 
which— 
(A) one shall be a member of the Committee on Labor 
and Human Resources of the Senate; £uid 
(B) one shall be a member of the Committee on Appro-
priations of the Senate. 
(4) Two Members of the House of Representatives appointed 
by the Speaker of the House of Representatives, of which— 
(A) one shall be a member of the Committee on Education 
and Labor of the House of Representatives; and 
(B) one shedl be a member of the Committee on Appro-
priations of the House of Representatives. 
(5) Two Members of the House of Representatives appointed 
by tile Minority Leader of the House of Representatives, of 
which— 
(A) one shall be a member of the Committee on Education 
and Labor of the House of Representatives; and 
(B) one shall be a member of the Committee on Appro-
priations of the House of Representatives. 
(b) ADDITIONAL QUALIFICATIONS.— 
(1) PRESIDENTIAL APPOINTEES.—^An individual appointed 
under subsection (aXD may not be an officer or an employee 
of the Executive Branch. 
(2) CITIZENS.—Individuals who are not Members of the Con-
gress and are appointed under subsection (a)(1) shall be individ-
uals who— 
(A) have extensive knowledge of higher education and 
its financing and who are leaders of the education commu-
nity, distinguished academics. State or local government 
officials, students, parents of college students, members 
of the business community, or other individuals with dis-
tinctive qualifications or experience; and 
(B) are not officers or employees of the United States. 
(c) CHAIRPERSON AND VICE CHAIRPERSON.—The members of the 
Commission shall elect a Ch£iirman and a Vice Chairperson. In 
the absence of the Chairperson, the Vice Chairperson will assume 
the duties of the Chairperson. 
(d) QUORUM.—^A majority of the members of the Commission 
shall constitute a quorum for the transaction of business. 
(e) APPOINTMENTS.—^All appointments imder subsection (a) shall 
be made within 3 months after the date of enactment of this 
Act. 
(f) VOTING.—^Each member of the Commission shall be entitled 
to one vote, which shall be equal to the vote of every other member 
of the Commission. 
(g) VACANCIES.—^Any vacancy on the Commission shcdl not affect 
its powers, but shall be filled in the manner in which the original 
appointment was made. 
(h) PROHIBITION OF ADDITIONAL PAY.—Members of the Commis-
sion shall receive no additional pay, allowances, or benefits by 
reason of their service on the Commission. Members appointed 
fi-om among private citizens of the United States may be allowed 
travel expenses, including per diem, in lieu of subsistence, as 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 829 
authorized by law for persons serving intermittently in the govern-
ment service to the extent funds are available for such expenses. 
SEC. 1443. FUNCTIONS OF COMMISSION. 
(a) SPECIFIC FINDINGS AND RECOMMENDATIONS.—The Commission 
shall study and make fjndings and specific recommendations regard-
ing the following: 
(1) The increase in tuition costs compared with other commod-
ities and services as well as methods of reducing increased 
tuition costs. 
(2) Trends in college and imiversity administrative costs as 
well as o^er costs and means of reducing such increased costs. 
(3) The development of a standardized annual report that 
colleges and imiversities shall distribute which details the 
administrative costs, instructional costs and capital costs of 
such colleges and universities. 
(4) The extent to which Federal, State and local regulations 
contribute to increased tuition costs and the increase in the 
cost of 
higher education. 
(5) The establishment of a mechanism for a more timely 
and widespread distribution of data on tuition trends and other 
costs of operating colleges and universities. 
(6) The extent to which the lack of student financial assist-
ance programs has contributed to increased tuition costs. 
(7) Other related topics determined to be appropriate by 
the Commission. 
(b) FINAL REPORT.— 
(1) IN GENERAL.—Subject to paragraph (2), the Commission 
shall submit to the President and to the Congress not later 
than September 1,1994, a report which shall contain a detailed 
statement of the findinp^s and conclusions of the Commission, 
including the Commission's recommendations for administra-
tive and legislative action that the Commission considers advis-
able. 
(2) MAJORITY VOTE REQUIRED FOR RECOMMENDATIONS.—Any 
recommendation described in paragraph (1) shall be made by 
the Commission to the President and to the Congress only 
if such recommendation is adopted by a majority vote of the 
members of 
the Commission who are present and voting. 
SEC. 1444. POWERS OF COMMISSION. 
(a) HEARINGS.—^The Commission may, for the purpose of carrjdng 
out this part, hold such hearings and sit and act at such times 
and places, as the Commission mayfind advisable. 
(b) RULES AND REGULATIONS.—The Commission may adopt such 
rules and regulations as may be necessary to estabUsh the Cfommis-
sion's procedures and to govern the manner of the Commission's 
operations, organization, and personnel. 
(c) ASSISTANCE FROM FEDERAL AGENCIES.— 
(1) INFORMATION.—^The Commission may request from the 
head of any Federal agency or instrumentality such information 
as the Commission may require for the purpose of this part. 
Each such agency or instrumentality shall, to the extent per-
mitted by law and subject to the exceptions set forth in section 
552 of title 5, United States Code (commonly referred to as 
the Freedom of Information Act), furnish such information to 
the Commission, upon request made by the Chedrperson of 
the Commission. 
106 STAT. 830 
PUBLIC LAW 102-325—JULY 23, 1992 
(2) FACILITIES AND SERVICES, PERSONNEL DETAIL AUTHOR-
IZED.—Upon request of the Chairperson of the Commission, 
the head of any Federal agency or instrumentaHty shall, to 
the extent possible and subject to the discretion of such head— 
(A) make any of the facilities and services of such agency 
or instrumentality available to the Commission; and 
(B) detail any of the personnel of such agency or 
instrumentaUty to the Commission, on a nonreimbursable 
basis, to assist the Commission in canying out the Commis-
sion's duties under this part, except that any expenses 
of the Commission incurred under this subparagraph shall 
be subject to the limitation on total expenses set forth 
in section 1445(b). 
(d) MAILS.—The Commission may use the United States mails 
in the same manner and under the same conditions as other Federal 
agencies. 
(e) CONTRACTING.—The Commission, to such extent and in such 
amoimts as are provided in appropriation Acts, may enter into 
contracts with State agencies, private firms, institutions, and 
individuals for the purpose of conducting research or surveys nec-
essary to enable the Commission to discharge the Commission's 
duties imder this part, subject to the limitation on total expenses 
set forth in section 1445(b). 
(f) STAFF.—Subject to such rules and regulations as may be 
adopted by the Commission, the Chairperson of the Commission 
(subject to the limitation on total expenses set forth in section 
1445(b)) shall have the power to appoint, terminate, and fix the 
compensation (without regard to the provisions of title 5, United 
States Code, governing appointments in the competitive service, 
and without regard to the provisions of chapter 51 £uid subchapter 
III of chapter 53 of such title, or of any other provision, or of 
any other provision of law, relating to the number, classification, 
and General Schedule rates) of an Executive Director, and of such 
additional staff as the Chairperson deems advisable to assist the 
Commission, at rates not to exceed a rate equal to the maximum 
rate for level IV of the Executive Schedule under section 5332 
of such title. 
(g) ADVISORY COMMITTEE.—^The Commission shall be considered 
an advisory committee within the meaning of the Federal Advisory 
Committee Act (5 U.S.C. App.) and shall be independent from 
the Executive Branch. 
SEC. 1446. EXPENSES OF COMMISSION. 
(a) IN GENERAL.—^Any expenses of the Commission shall be paid 
fi*om such fimds as may be available to the Secretary of the Treas-
ury. 
(b) LIMITATION.—The total expenses of the Commission shall not 
exceed $2,000,000. 
(c) GAO AUDIT.—Prior to the termination of the Commission 
pursuant to section 1446, the Comptroller General of the United 
States shall conduct an audit of the financial books £ind records 
of the Commission to determine that the limitation on expenses 
has been met, and shall include the Comptroller (Jeneral's deter-
mination in an opinion to be included in the report of the Commis-
sion. 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 831 
SEC. 1446. TERMINATION OF COMMISSION. 
The Commission shall cease to exist on the date that is 90 
days after the date on which the Commission submits its final 
report in accordance with section 1443(b). 
TITLE XV—RELATED PROGRAMS AND 
AMENDMENTS TO OTHER LAWS 
PART A—NATIONAL CENTER FOR THE 
WORKPLACE 
SEC. 1611. PUBPOSE; DESIGNATION. 
29 USC 2401. 
It is the purpose of this part to address the problems created 
by the simultaneous convergence of broad economic, social, cultural, 
political, and technological changes in the workplace tiirough a 
national center admimstered by the Department of Labor that 
will join together workplace experts 
firom 
America's best institutions 
of higher education with experts 
fi*om 
the public and private sectors 
to conduct research, share information, and propose remedies. 
SEC. 1512. ESTABLISHMENT. 
29 USC 2402. 
(a) ESTABLISHMENT.— — 
(1) IN GENERAL.—^There is authorized to be estabUshed the 
National Center for the Workplace (hereafter in this part 
referred to as the "Center") tiirough competitive grant or con-
tract between the Secretary of Labor and an eUgible recipient. 
(2) MATCHING FUNDS.—^In order to receive the grant described 
in paragraph (1) an eligible entity shall provide matching funds 
from non-Federal sources equ£U to 25 percent of the funds 
received pursuant to such grant. 
(b) ELIGIBLE RECIPIENT.—^An eligible recipient shall be a consor-
tium of institutions of higher education in the United States. The 
consortium shaU represent a diversity of views on and an expertise 
in the field of emplojmient policy, and shall be represented and 
coordinated by a host institution of higher education that meets 
all of the following criteria: 
(1) Broad collective knowledge of and demonstrable experi-
ence in the wide range of emplo3rment and workplace issues. 
(2) A faculty that, collectively, demonstrates a nonpartisan 
research and policy perspective joining the several relevant 
workplace disciplines (labor economics, industrial relations, col-
lective bargaining, human resource management, sociology, psy-
chology, and law) in a multidisciplinary approach to workplace 
issues. 
(3) Established credibility and working relationships with 
employers, unions, and government agencies on a national 
scale, and established means of providing education and tech-
nical assistance to each of the above groups that include pub-
Ucations, state-of-the-art electronic and video technology, and 
distinguished extension/outreach programs operating on a 
national and international level. 
(c) REPORT.—^The Center shall annually report to the Congress, 
tile Secretaiy of Education, and the Secretary of Labor on the 
activities of me Center. 
106 STAT. 832 
PUBLIC LAW 102-325-JULY 23, 1992 
29 use 2403. 
SEC. 1613. USE OF FUNDS. 
(a) CENTER ACTIVITIES.—Payments made under this part may 
be used to establish and operate the Center, to bring together 
m^'or LQdependent researchers from the Center's member-institu-
tions focused on the most significant workplace problems with the 
aim of analysis and synthesis of policy implications and dissemina-
tion of findings, and to support the following activities: 
(1) The coordination and funding of research activities of 
the Center's member-institutions for collaborative collection and 
evaluation of data on changes and trends in the workplace 
and ID the labor force, on established and emerging public 
policy issues, on the economic and occupational structures, and 
on work organizations and emplojrment conditions. 
(2) The analysis of the public policy implications of social 
and demographic changes in the United States as they relate 
to the workplace. 
(3) The conduct of seminars for Federal and State policy-
makers on policy implications of the Center's findings. Such 
seminars shall be held not more frequently than once each 
year. In addition, the Center shall utilize electronic technology, 
such as computer networks and video conferencing, to convey 
the cumulative value of the Center's activities from year to 
year and to foster continuous exchange of ideas and informa-
tion. 
(4) The conduct of a National Conference on employment 
policy not more frequently than once each year for the leaders 
of business and organized labor in the United States designed 
to convey the cumulative value of the Center's activities and 
to foster an exchange of ideas and information. 
(5) The nonpartisan evsduation of the economic and social 
implications of national and international workplace and 
emplojmient issues. 
(6) The provision of ready access to the Center's collective 
expertise for policy ofScieils in the Federal and State govern-
ments and representatives of private and pubUc sector organiza-
tions through meetings, publications, specied reports, video con-
ferences, electronic mail and computer networks, and other 
means to share up-to-date information on workplace and 
employment issues, practices, and innovations, the most 
promising options, and guidance in management of the change 
process. 
(7) The development of programs, curricula, and instructional 
materials for colleges, universities, and other educational 
institutions designed to impart the knowledge and skills 
required to promote innovations in the design of work and 
employment conditions that enhance organizational perform-
ance and meet worker needs. 
(8) The development and administration of a national reposi-
tory of information on key workplace issues that can be readily 
accessed by the pubUc and private sector. 
(b) FELLOWSHIPS.—Grant fimds awarded under this title may 
also be used to provide graduate assistantships and fellowships 
at the Center to encourage graduate study of the field of employ-
ment policy and to encourage graduate resecu'ch in areas that 
are seen as critical to national competitiveness. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 833 
SEC. 1614. GIFTS AND DONATIONS. 
20 USC 2404. 
The Center is authorized to receive money and other property 
donated, bequeathed, or devised to the Center with or without 
a condition of restriction, for the purpose of furthering the activities 
of the Center. All funds or property given, devised, or bequeathed 
shall be retained in a separate account, and an accounting of 
those funds and property shall be included in the annual report 
submitted pursuant to section 1512(c). 
SEC. 1515. AUTHORIZATION. 
20 USC 2405. 
(a) IN GENERAL.—^There are authorized to be appropriated 
$2,500,000 for fiscal year 1993 and such sums as may be necessary 
for each of the 4 succeeding fiscal years to carry out this part. 
(b) AVAILABILITY.—Funds appropriated pursuant to the authority 
of subsection (a) shall remain available until expended. 
PART B—NATIONAL CLEARINGHOUSE FOR 
POSTSECONDARY EDUCATION MATERIALS 
SEC. 1521. NATIONAL CLEARINGHOUSE FOR POSTSECONDARY EDU- 20 USC 1452 
CATION MATERIALS. 
note. 
(a) PURPOSE.—^The piirpose of this section is to coordinate the 
production and distribution of educational materials in an accessible 
form, especially audio and digital text production, to college and 
university based print-disabled populations. 
(b) PROGRAM AUTHORITY.— 
(1) IN GENERAL.—^The Secretary of Education is authorized 
to award a grant or contract to pay the Federal share of 
the cost of establishing a National Clearinghouse for Post-
secondary Education Materials (hereafter in this part referred 
to as the "Clearinghouse") to coordinate the production and 
distribution of educational materials, in an accessible form, 
including audio and digital, for students with disabilities. 
(2) AWARD BASIS.—The grant or contract awarded pursuant 
to paragraph (1) shall be made on a competitive beisis. 
(3) DURATION.—The grant or contract awarded under this 
section shall be awarded for a period of 3 years. 
(c) USE OP FUNDS.—The grant or contract awarded under this 
section shall be used to— 
(1) catalog in computer-readable form postsecondary edu-
cation materials; 
(2) identify college campus-based services producing taped 
texts whose technical and reader quaUty make them eUgible 
for inclusion in the Clearinghouse and share its quality control 
standards with campus-based student support services offices 
serving students with disabilities; 
(3) promote data conversion and programming to allow the 
electronic exchange of bibliographic information between exist-
ing on line systems; 
(4) encourage outreach efforts that will educate print-disabled 
individuals, as defined by section 652(dX2) of the Individuals 
With Disabilities Education Act, educators, schools, and agen-
cies about the Clearinghouse's activities; 
(5) upgrade existing computer systems at the Clearinghouse; 
(6) coordinate with identifiable and existing data bases con-
taining postsecondary education materials, including the pro-
59-194 O—93 
28 : QL 3 (Pt. 1) 
106 STAT. 834 
PUBLIC LAW 102-325—JULY 23, 1992 
grams authorized under section 652(d) of the Individuals With 
Disabilities Act; and 
(7) develop and share national guidelines and standards for 
the production of audio and digital text materials. 
(d) FEDERAL SHARE LIMITATION.—The Federal share under this 
section may not be more than— 
(1) 80 percent of the total cost of the program in the first 
year; 
(2) 60 percent of the total cost of the program in the second 
year; ana 
(3) 50 percent of the total cost of the program in the third 
year. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for the purpose of this section, $1,000,000 for 
fiscal year 1993 and such sums as may be necessary for each 
of the nscal years 1994 and 1995. 
PART C—SCHOOL-BASED DECISIONMAKERS 
20 use 1101 
SEC. 1631. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL-
note. 
BASED DECISIONMAKERS DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—^The Secretary of Education is authorized to 
make grants to local education agencies, in consortia with one 
or more institutions of higher education, to estabUsh programs 
to provide training and technical assistance to school-based 
decisionmakers in local education agencies implementing S3rstem-
wide reform. 
(b) APPLICATION.—^To be eU^ble to receive a training and tech-
nical assistance demonstration grant imder this section, consortia 
shall submit an application to me Secretary of Education in such 
form and containing or accompanied by such information as the 
Secretaiy may require. A copy of the appUcation shall also be 
sent to the State educational agency for notincation purposes. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $1,000,000 for fiscal year 1993 and such sums 
as may oe necessary for fiscal yeeirs 1994 and 1995. 
PART D—GRANTS FOR SEXUAL OFFENSES 
EDUCATION 
20 use 1145h. 
SEC. 1641. GRANTS FOR CAMPUS SEXUAL OFFENSES EDUCATION. 
(a) GRANTS AUTHORIZED.— 
(1) IN GENERAL.—^The Secretary of Education (hereafter in 
this part referred to as the "Secretai^) is authorized to make 
grants to or enter into contracts with institutions of higher 
education or consortia of such institutions to enable such 
institution to carry out sexual offenses education and preven-
tion programs under this section. 
Contracts. 
(2) AwARD BASIS.—^The Secretary shall award grants and 
contracts under this section on a competitive basis. 
(3) EQUITABLE PARTICIPATION.—The Secretary shall make 
every effort to ensure the equitable participation of private 
and public institutions of higher education and to ensure the 
equitable geographic participation of such institutions in the 
activities assisted under this part. 
(4) PRIORITY.—In the award of grants and contracts imder 
this section, the Secretary shall give priority to institutions 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 835 
of higher education or consortia of such institutions that show 
the greatest need for the sums reauested. 
(b) GENERAL SE3CUAL OFFENSES PREVENTION AND EDUCATION 
GRANTS.—Funds provided under this part may be used for the 
following purposes: 
(1) To provide training for campus security and college per-
sonnel, including campus disciplinary or judicial boards, that 
address the issues of sexual ofTenses. 
(2) To develop, disseminate, or implement campus security 
and student disciplinary poUcies to prevent and discipline sex-
ual offense crimes. 
(3) To develop, enlarge, or strengthen support services pro-
grams including medical or p^chological counseling to assist 
victims* recovery from sexual onense crimes. 
(4) To create, disseminate, or otherwise provide assistance 
and information about victims' options on and off campus to 
bring disciplinary or other legal action. 
(5) To implement, operate, or improve sexual offense edu-
cation and prevention programs, including programs making 
use of peer-to-peer education. 
(c) MODEL GRANTS.—^Not less than 25 percent of the funds appro-
priated for this section in any fiscal year shall be available for 
grants or contracts for model demonstration programs which wiU 
be coordinated with local rape crisis centers for the development 
and implementation of quality rape prevention and education curric-
ula and for local programs to provide services to student sexual 
offense victims. 
(d) ELIGIBILITY.—No institution of higher education or consortium 
of such institutions shall be eUgible to be awarded a grant or 
contract under this section imless— 
(1) its student code of conduct, or other written poUcy govem-
iog student behavior explicitly prohibits all forms of sexual 
onenses; 
(2) it has in effect and implements a written poUcy requiring 
the disclosure to the victim of any sexual offense of me outcome 
of any investigation by campus poUce or campus disciplinary 
proceedings brought pursuant to the victim's complaint against 
the alleged perpetrator of the sexual offense, except that noth-
ing in this section shall be interpreted to authorize disclosure 
to any person other than the victim; and 
(3) the Secretary shall give priority to those appUcants who 
do not have an estabUshed campus education program regard-
ing sexual offenses. 
(e) APPLICATIONS.— 
(1) IN GENERAL.—^In order to be eligible to be awarded a 
grant or contract under this section for any fiscal year, an 
institution of higher education or consortium of such institu-
tions shall submit an appUcation to the Secretary at such 
time and in such manner as the Secretaiy shcdl prescribe. 
(2) CONTENTS.—Each application submitted under paragraph 
(1) shall— 
(A) set forth the activities and programs to be carried 
out with funds granted under this part; 
(B) contain an estimate of the cost for the establishment 
and operation of such programs; 
(C) explain how the program intends to address the 
issue of sexual offenses; 
106 STAT. 836 
PUBLIC LAW 102-325—JULY 23, 1992 
(D) provide assurances that the Federal funds made 
available under this section shall be used to supplement 
and, to the extent practical, to increase the level of funds 
that would, in the absence of such Federal funds, be made 
available by the applicant for the purpose described in 
this part, emd in no case to supplant such funds; and 
(E) include such other information and assurances as 
the Secretary reasonably determines to be necessary. 
(f) GRANTEE REPORTING.—Upon completion of the grant or con-
tract period under this section, the grantee institution or consortium 
of such institutions shall file a performance report with the Sec-
retary explaining the activities ceirried out together with an assess-
ment of the effectiveness of those activities in achieving the pur-
poses of this section. The Secretary shall suspend fundmg for an 
approved application if an applicant fails to submit an annual 
performance report. 
(g) DEFINITIONS.—For purposes of this part, the term "sexual 
offenses educational and prevention" includes programs that provide 
education seminars, peer-to-peer counseling, operation of hotlines, 
self-defense courses, the preparation of informational materials, 
and any other effort to increase campus awareness of the facts 
about, or to help prevent, sexual offenses. 
(h) GENERAL TERMS AND CONDITIONS.— 
(1) REGULATIONS.—Not later than 90 days after the date 
of enactment of this section, the Secret£iry shall publish pro-
posed regulations implementing this section. Not later man 
150 days after such date, the Secretary shall publish final 
regulations implementing this section. 
(2) REPORTS TO CONGRESS.—Not later than 180 days after 
the end of each fiscal year for which grants or contracts are 
awarded under this section, the Secretary shall submit to the 
committees of the House of Representatives and the Senate 
responsible for issues relating to higher education and to crime, 
a report that includes— 
(A) the £unoimt of grants or contracts awarded under 
this section; 
(B) a summary of the purposes for which those grants 
or contracts were awarded and an evaluation of their 
progress; and 
(C) a copy of each grantee report filed pursuant to sub-
section (f) of this section. 
(i) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of carry-
ing out this psirt, there are authorized to be appropriated 
$10,000,000 for the fiscal year 1993 and such sums as may be 
necessary for each of 
the 4 succeeding fiscal years. 
PART E—OLYMPIC SCHOLARSHIPS 
20 use 1070 
SEC. 1643. OLYMPIC SCHOLARSHIPS. 
(a) SCHOLARSHIPS AUTHORIZED.— 
(1) IN GENERAL.—^The Secretary of Education is authorized 
to provide financial assistance to the United States Ohrmpic 
Education Center or the United States Olympic Training Center 
to enable such centers to provide financial assistance to athletes 
who £
U
*
e training at such centers and are pursuing postsecond-
ary education at institutions of higher education (as such term 
PUBLIC LAW 102-325—JULY 23,1992 
106 STAT. 837 
is defined in section 481(a) of the Higher Education Act of 
1965). 
(2) AWARD DETERMINATION.—The amount of financial assist-
ance provided to athletes described in paragraph (1) shall be 
determined in accordance with such athlete's financial need 
as determined in accordance with part F of title IV of the 
Higher Education Act of 1965. 
(b) ELIGIBILITY.—The Secretary of Education shall ensure that 
financial assistance provided under this part is available to both 
fiiU-time and part-time students who are athletes at centers 
describe(Hn subsection (a). 
(c) APPLICATION.—^Each center desiring financial assistance under 
this section shall submit an application to the Secretary of Edu-
cation at such time, in such manner and accompanied by such 
information as the Secretary may reasonably require. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $5,000,000 for fiscal year 1993 and such sums 
as may oe necessary for each of the 4 succeeding fiscal years 
to carry out this section. 
PART F—NEED-BASED AID 
SEC. 1544. AUTHORITY TO AWARD NEED-BASED AID. 
20 USC 1088 
(a) EFFECT ON PENDING CASES PROHIBITED.—Nothing in this 
section shall in any way be construed to affect any antitrust litiga-
tion pending on the date of enactment of this Act. 
(b) IN GENERAL.—Except as provided in subsections (a), (c), and 
(e), institutions of higher education may— 
(1) voluntarily agree with any other institution of higher 
education to award financial aid not awarded under the Higher 
Education Act of 1965 to students attending those institutions 
only on the basis of demonstrated financial need for such aid; 
and 
(2) discuss and volimtarily adopt defined principles of profes-
sional judgment for determming student financial need for aid 
not awarded under the Higher Education Act of 1965. 
(c) EXCEPTION.—Institutions of higher education shall not discuss 
or agree with each other on the prosi)ective financial aid award 
to a specific common applicant for financial £dd. 
(d) RELATED MATTER.—^No inference of unlawful contract, com-
bination, or conspiracy shall be drawn 
fi-om 
the fact that institutions 
of higher education engage in conduct authorized by this section. 
(e) SUNSET PROVISION.—^This section shcill expire on September 
30,1994. 
PART 
G—ADVANCED 
PLACEMENT 
FEE 
PAYMENT PROGRAM 
SEC. 154S. ADVANCED PLACEMENT FEE PAYMENT PROGRAM. 
20 USC lOTOa-ll 
(a) PROGRAM ESTABLISHED.—The Secretary of Education is "
°
*
®
" 
authorized to make grants to States to enable the States to 
reimburse individuals to cover part or all of the cost of advance 
placement test fees, to low-income individuals who— 
(1) are enrolled in an advanced placement class; and 
(2) plan to take an advanced placement test. 
(b) INFORMATION DISSEMINATION.—The State educational agency 
shall disseminate information on the availability of test fee pay-
106 STAT. 838 
PUBLIC LAW 102-325—JULY 23, 1992 
ments under this section to eligible individuals through secondary 
school teachers and guidemce counselors. 
(c) REQUIREMENTS FOR APPROVAL OF APPLICATIONS.—In approving 
applications for grants the Secretary of Education shall— 
(1) require that each such application contain a description 
of the advance placement test fees the State will pay on behalf 
of individual students; 
(2) require an assurance that any fiinds received under this 
section shall only be used to pay advanced placement test 
fees; and 
(3) contain such information as the Secretary may require 
to demonstrate that the State will ensure that the student 
is eligible for payments under this section, including the docu-
mentation required by chapter 1 of subpart 2 of part A of 
title IV of the Higher Education Act of 1965. 
(d) SUPPLEMENTATION OF FUNDING.—Funds provided under this 
section shall be used to supplement and not supplant other Federal, 
State, and local or private funds available to assist low-income 
individuals in pajdng for advanced placement testing. 
(e) REGULATIONS.—^The Secretary of Education shaU prescribe 
such regulations as are necessary to carry out this section. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $3,600,000 for fiscal year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years 
to carry out the provisions of this section. 
(g) DEFINITION.—^As used in this section: 
(1) ADVANCED PLACEMENT TEST.—The term "advanced place-
ment test" includes only an advanced placement test approved 
by the Secretary of Education for the purposes of this section. 
(2) LOW-INCOME INDIVIDUAL.—The term **low-income individ-
ual'' h
£
U
3 the meaning given the term in section 402A(g)(2) 
of the Higher Education Act of 1965. 
PART 
H—AMENDMENTS 
TO 
OTHER 
LAWS 
SEC. 1651. HIGHER EDUCATION TECHNICAL AMENDMENTS. 
Subsection (c) of section 3 of the Higher Education Technical 
20^usc 1091a 
Amendments of 1991 (Public Law 102-26) is amended by striking 
'that are brought before November 15,1992". 
SEC. 1S62. LIBRARY OF CONGRESS ACCESS TO D
A
T
A 
Section 406(dX4)(H) of the General Education Provisions Act (20 
U.S.C. 1221e-l(d)(4)(H)) is amended by— 
(1) inserting "and the Librarian of Congress" after ''Comptrol-
ler General of the United States"; and 
(2) inserting "and the Library of Congress" after "the (Jeneral 
Accounting Office". 
SEC. 1663. LIAISON FOR COMMUNITY COLLEGES. 
(a) LIAISON.—Section 202 of the Department of Education 
Organization Act (20 U.S.C. 3412) is amended by adding at the 
end the following new subsection: 
"(iXl) There shall be in the Department a Liaison for Community 
and Junior Colleges, who shall be an officer of the Department 
appointed by the Secretanr. 
(2) The Secretary shcul appoint, not later than 6 months after 
the date of enactment of the Higher Education Amendments of 
note. 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 839 
1992, as the Liaison for Community and Junior Colleges a person 
who— 
"(A) has attained an associate degree from a community 
or junior college; or 
"(B) has been employed in a community or jvmior college 
setting for not less than 5 years. 
"(3) The Liaison for Community and Junior Colleges shall— 
"(A) serve as principal advisor to the Secretary on matters 
affecting community and junior colleges; 
"(B) provide guidance to programs within the Department 
dealing with functions affecting community and junior colleges; 
and 
"(C) work with the Federed Interagency Committee on Edu-
cation to improve coordination o
f
— 
"(i) tiie outreach programs in the numerous Federal 
departments £ind agencies that administer education and 
job training programs; 
"(ii) collaborative business education partnerships; and 
"(iii) education programs located in, and regarding, rural 
areas.". 
(b) EXECUTIVE SCHEDULE.—Section 5315 of title 5, United States 
Code, is amended by adding at the end the following new item: 
"Liaison for Commimity and Junior Colleges, Department 
of Education". 
SEC. 1654. UNITED STATES INSTITUTE OF PEACE. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Subsection (a) of section 
1710 of the United States Institute of Peace Act (22 U.S.C. 4609(a)) 
is amended to read as follows: 
"(a) AUTHORIZATION OF APPROPRIATIONS.— 
"(1) IN GENERAL.—^For the purpose of carrying out this title, 
there are authorized to be appropriated $15,000,000 for fiscal 
year 1993 and such sums as may be necessary for each of 
the 4 succeeding fiscal years. 
"(2) AVAILABILITY.—Funds appropriated pursusint to the 
autiiority of paragraph (1) shall remain available until 
expended.". 
(b) SPARK M. MATSUNAGA SCHOLARS PROGRAM.—Subsection (b) 
of section 1705 of the United States Institute of Peace Act (22 
U.S.C. 4604(b)) is amended— 
(1) by striking "and" at the end of paragraph (8); 
(2) by striking the period at the end of paragraph (9) and 
inserting a semicolon and "and"; and 
(3) by adding at the end ihe following new paragraph: 
"(10) establish the Spark M. Matsunaga Scholars Program, 
which shall include the provision of scholarships and edu-
cational programs in international peace and conflict manage-
ment and related fields for outstanding secondary school stu-
dents and the provision of scholarships to outstanding under-
graduate students, with program pcutidpants and recipients 
of such scholarships to be known as 'Spark M. Matsunaga 
Scholars'.". 
(c) CONTRACTS AND PRIVATE GIFTS AND CONTRIBUTIONS.—Sub-
section (h) of section 1705 of the United States Institute of Peace 
Act (22 U.S.C. 4604(h)) is amended— 
(1) by amending paragraph (2) to read as follows: 
106 STAT. 840 
PUBLIC LAW 102-325—JULY 23, 1992 
"(2) The Institute and the legal entity^ described in section 
1704(c) may not accept any girt, contnbution or ^ant from 
a foreign government, any agency or instrumentahty of such 
government, any intemationcu organization, or any corporation 
or other legal entity in which natilral persons who are nationals 
of a foreign country own, directly or indirectly, more than 
50 percent of the outstanding capital stock or omer beneficial 
interest in such legal entity."; and 
(2) iQ paragrapn (3) by striking "individual." and inserting 
*^dividual, except such Institute or legal entity may accept 
such a gift or contribution to— 
*
X
A
) purchase, lease for purcheise, or otherwise acquire, 
construct, improve, furnish, or maintain a suitable perma-
nent headquarters, any related faciUty, or any site or sites 
for such facilities for the Institute and the legal entity 
described in section 1704(c); or 
"(B) provide progreim-related hospitality, including such 
hospitality connected with the presentation of the Spark 
M. Matsunaga Medal of Peace.". 
SEC. 1666. LAW ENFORCEMENT UNTT RECORDS. 
(a) I N GENERAL.—Clause (ii) of section 438(a)(4XB) of the General 
Education Provisions Act (20 U.S.C. 1232g(aX4)(B)(ii)) is amended 
to read as follows: 
"(ii) records maintained by a law enforcement unit of the 
educational agency or institfution that were created by that 
law enforcement unit for the purpose of law enforcement.". 
20 use i232g 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
"°*®- 
take effect on the date of enactment of this Act. 
SEC. 1666. EXCELLENCE IN MATHEMATICS, SCIENCE AND ENGINEER-
ING EDUCATION ACT OF 1990. 
(a) AUTHORIZATION OF APPROPRIATION FOR THE NATIONAL SCIENCE 
SCHOLARS PROGRAM.—Subsection (b)ofsection 601 of the Excellence 
in Mathematics, Science, and Engineering Act of 1990 (20 U.S.C. 
5381(b)) is amended to read as follows: 
"(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $10,000,000 for fiscal year 1993 and such sums 
as may be necessary for each of the 4 succeeding fiscal years 
for awards to Nationsd Science Scholars.". 
(b) NATIONAL ACADEMY OF SCIENCE, SPACE, AND TECHNOLOGY.— 
Section 621 of the Excellence in Mathematics, Science and Engineer-
ing Education Act of 1990 (20 U.S.C. 5411) is amended— 
(1) in subsection (b), by amending paragraph (2) to read 
as follows: 
"(2) FUNCTION.—The Advisory Board shall develop an exam 
for secondary students testing knowledge in science, mathe-
matics, and engineering, or shall select an exam from among 
existing national exams, and shall annually administer sucn 
exam."; 
/ 
(2) by striking subsections (a), (e). and (f); 
(3) by redesignating subsection (c) as subsection (d); 
(4) by inserting after subsection (b), the following new sub-
section: 
/ 
"(c) RESULTS OF EXAM.—Tl^ Advisory Board shall annually certify 
the top 10 scorers in each congressional district on the exam devel-
oped or selected imder subsection (bX2), and award to the top 
scorer in each district a scholarship imder this section."; 
PUBLIC LAW 102-325—JULY 23, 1992 
106 STAT. 841 
(5) in subsection (d)(1), as so redesignated by paragraph 
(3) of this section, by striking "subsection (n)" and inserting 
in Ueu thereof "subsection (1)"; 
(6) in subsection (d)(2), as so redesignated by paragraph 
(3) of this section, by striking "subsection (h)" and inserting 
in Ueu thereof "subsection (f)"; 
(7) in subsection (d)(3), as so redesignated by paragraph 
(3) of this section— 
(A) by striking "subsection (h)" and inserting in Ueu 
thereof "subsection (f)"; and 
(B) by inserting "such additional" after "maximum of 
3"; 
(8) by redesignating subsections (g) through (o) as subsections 
(e) through (m), respectively; 
(9) in subsection (f)(2), as so redesignated by paragraph (8) 
of this section, by striking "subsection (f)" and inserting in 
Heu thereof "subsection (d)(3)"; £ind 
(10) in subsection (m), as so redesignated by paragraph (8) 
of this section, by striking "$2,200,000 for fiscal year 1991" 
and inserting in heu thereof "$2,200,000 for fiscal year 1993 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years". 
SEC. 1557. NATIONAL AND COMMUNITY SERVICE ACT OF 1990. 
Peiragraph (1) of section 146(b) of the National and Community 
Service Act of 1990 (42 U.S.C. 12576(b)(1)) is amended by striking 
"that is equal in value to $2,500 for each year of service that 
such participant provides to the program" and inserting "for each 
year of service that such participant provides to the program, which 
benefit shall be equal in value to $2,500 for each such year, and 
which benefit shall be adjusted to match any increases in the 
maximum Pell Grant as provided by the annual appropriation". 
SEC. 1658. OMNIBUS BUDGET RECONCILIATION ACT OF 1990. 
Section 3008 of the Omnibus Reconciliation Act of 1990 is n use 362 note. 
repealed. 
SEC. 1559. SPECIAL PROJECTS FOR 2-YEAR SCHOOLS. 
Subsection (f) of section 788 of the Public Health Service Act 
(20 U.S.C. 295g-8(f)) is amended to read as follows: 
42 use 295g-8. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $316,203 for each of the fiscal years 1993, 
1994,1995, and 1996 to carry out subsection (a).". 
PART I—BUY AMERICA 
SEC. 1561. SENSE OF CONGRESS. 
It is the sense of the Congress that a recipient (including a 
nation, individual, group, or organization) of any form of student 
assistance or other Federal assistance \uider the Act should, in 
106 STAT. 842 
PUBLIC LAW 102-325—JULY 23, 1992 
expanding that assistance, purchase American-made equipment and 
products. 
Approved July 23, 1992. 
LEGISLATIVE HISTORY—S. 1150 (H.R. 3553): 
HOUSE REPORTS: Nos. 102-147 accompanying H.R. 3553 (Comm. on Education and 
Labor) and 102-630 (Ctomm. of Conference). 
SENATE REPORTS: No. 102-204 (Comm. on Labor and Human Resources). 
CONGRESSIONAL RECORD, Vol. 138 (1992): 
Feb. 20, 21, considered and passed Senate. 
Mar. 25,26, H.R. 3553 considered and passed House; S. 1150, amended, passed in 
lieu. 
June 30, Senate agreed to conference report. 
. 
July 8, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 28 (1992): 
July 23, Presidential remarks and statement.