[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1167 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1167

  To amend the Higher Education Act of 1965 to prevent an institution 
  from participating in the Pell Grant program if the institution is 
   ineligible for participation in the Federal Stafford Loan program 
                     because of high default rates.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 1993

  Mr. Gordon introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
  To amend the Higher Education Act of 1965 to prevent an institution 
  from participating in the Pell Grant program if the institution is 
   ineligible for participation in the Federal Stafford Loan program 
                     because of high default rates.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEFAULT RATE INELIGIBILITY FOR PELL GRANT PROGRAM.

    Section 481(a) of the Higher Education Act of 1965 (20 U.S.C. 
1088a) is amended by adding at the end the following new paragraph:
    ``(7) An institution may not qualify as an institution of higher 
education for purposes of the Pell Grant program under subpart 1 of 
part A of this title if such institution is ineligible to participate 
in a loan program under part B of this title as a result of a default 
rate determination under section 435(a).''.

SEC. 2. EFFECTIVE DATE.

    The amendment made by this Act shall apply with respect to periods 
of enrollment beginning on or after the date of enactment of this Act.

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