[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3376 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3376

   To make certain technical and conforming amendments to the Higher 
                         Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 27, 1993

 Mr. Ford of Michigan (for himself, Mr. Goodling, Mr. Clay, Mr. Petri, 
 Mr. Miller of California, Mr. Gunderson, Mr. Murphy, Mr. Cunningham, 
 Mr. Kildee, Mr. Williams, Mr. Martinez, Mr. Sawyer, Mr. Payne of New 
Jersey, Mrs. Unsoeld, Mr. Andrews of New Jersey, Mr. Scott, Mr. Romero-
Barcelo, Mr. de Lugo, and Mr. Underwood) introduced the following bill; 
       which was referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
   To make certain technical and conforming amendments to the Higher 
                         Education Act of 1965.

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

SECTION 1. SHORT TITLE; REFERENCES EFFECTIVE DATES.

    (a) Short Title.--This Act may be cited as the ``Higher Education 
Technical Amendments of 1993''.
    (b) References.--References in this Act to ``the Act'' are 
references to the Higher Education Act of 1965.
    (c) Effective Dates.--Except as otherwise provided therein, the 
amendments made by this Act shall be effective as if such amendments 
were included in The Higher Education Amendments of 1992 (Public Law 
102-325).

SEC. 2. TECHNICAL AMENDMENTS.

    (a) Amendments to Titles I, II, and III of the Act.--The Act is 
amended--
            (1) in section 103(b)(2), by increasing the indentation of 
        subparagraphs (A) through (E) by two em spaces;
            (2) in section 104(b)(5)(C), by striking ``subpart'' and 
        inserting ``part'';
            (3) in section 241(a)(2)(B), by striking ``information 
        service'' and inserting ``information science'';
            (4) in section 301(a)(2), by striking the comma after 
        ``planning'';
            (5) in section 312(c)(2), by inserting ``the'' before 
        ``second fiscal year'' the second place it appears;
            (6) in section 316(c), by striking ``Such programs may 
        include--'' and inserting the following:
            ``(2) Examples of authorized activities.--Such program may 
        include--'';
            (7) by reducing by two em spaces the indentation of each of 
        the following provisions: sections 323(b)(3), 331(a)(2)(D), and 
        331(b)(5);
            (8) in section 326(e)(2)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (9) in section 331(b)(2), by reducing the indentation of 
        subparagraphs (B) and (C) by four em spaces; and
            (10) in section 331(b)(5), by striking ``an endowment'' and 
        inserting ``An endowment''.
    (b) Amendments to Part A of Title IV of the Act.--Part A of title 
IV of the Act is amended--
            (1) in section 401(a)(1), by striking the last sentence;
            (2) in section 401(b)(6), in the matter preceding 
        subparagraph (A), by striking ``single 12-month period'' and 
        inserting ``single award year'';
            (3) in section 401(b)(6)(A), by striking ``a 
        baccalaureate'' and inserting ``an associate or 
        baccalaureate'';
            (4) in section 401(b)(6)(B), by striking ``a bachelor's'' 
        and inserting ``an associate or baccalaureate'';
            (5) in section 401(b)(8)(A), by striking ``(determined in 
        accordance with regulations issued by the Secretary)'';
            (6) in section 401(i), by striking ``part D of title V'' 
        and inserting ``subtitle D of title V'';
            (7) in section 402A(b), by striking paragraph (2) and 
        inserting the following:
            ``(2) Duration.--Grants or contracts made under this 
        chapter shall be awarded for a period of 4 years, except that--
                    ``(A) the Secretary shall award such grants or 
                contracts for 5 years to applicants whose peer review 
                scores were in the highest 10 percent of scores of all 
                applicants receiving grants or contracts in each 
                program competition for the same award year; and
                    ``(B) grants made under section 402G shall be 
                awarded for a period of 2 years.'';
            (8) in section 402A(c)(1), by inserting before the period 
        the following ``, except that in the case of the programs 
        authorized in sections 402E and 402G, the level of 
        consideration given to prior experience shall be the same as 
        the level of consideration given this factor in the other 
        programs authorized in this chapter'';
            (9) in section 402A(c)(2)(A), by inserting ``with respect 
        to grants made under section 402G, and'' after ``Except'';
            (10) in section 402A, by amending subsection (e) to read as 
        follows:
    ``(e) Documentation of Status as a Low-Income Individual.--(1) 
Except in the case of an independent student, as defined in section 
480(d), documentation of an individual's status pursuant to subsection 
(g)(2) shall be made by providing the Secretary with--
            ``(A) a signed statement from the individual's parent or 
        legal guardian;
            ``(B) verification from another governmental source;
            ``(C) a signed financial aid application; or
            ``(D) a signed United States or Puerto Rico income tax 
        return.
    ``(2) In the case of an independent student, as defined in section 
480(d), documentation of an individual's status pursuant to subsection 
(g)(2) shall be made by providing the Secretary with--
            ``(A) a signed statement from the individual;
            ``(B) verification from another governmental source;
            ``(C) a signed financial aid application; or
            ``(D) a signed United States or Puerto Rico income tax 
        return.'';
            (11) in section 402C(c), by striking ``and foreign'' and 
        inserting ``foreign'';
            (12) in section 402D(c)(2), by striking ``either'';
            (13) in section 404A(1), by striking ``high-school'' and 
        inserting ``high school'';
            (14) in section 404B(a)(1)--
                    (A) by striking ``section 403C'' and inserting 
                ``section 404D''; and
                    (B) by striking ``section 403D'' and inserting 
                ``section 404C'';
            (15) in section 404B(a)(2), by inserting ``shall'' after 
        ``paragraph (1)'';
            (16) in section 404C(b)(3)(A), by striking ``grades 12'' 
        and inserting ``grade 12'';
            (17) in section 404C(b)(3)(D)(i), by striking ``section 
        401D of this subpart'' and inserting ``section 402D'';
            (18) in section 404C(b)(3)(D)(ii), by striking ``section 
        401D of this part'' and inserting ``section 402D'';
            (19) in section 404D(d)(3), by striking ``program of 
        instruction'' and inserting ``program of undergraduate 
        instruction'';
            (20) in section 404D(d)(4), by striking ``the'' the first 
        place it appears;
            (21) in section 404E(c), by striking ``tuition'' and 
        inserting ``financial'';
            (22) in section 404F(a), by striking ``under this section 
        shall biannually'' and inserting ``under this chapter shall 
        biennially'';
            (23) in section 404F(c), by striking ``biannually'' and 
        inserting ``biennially'';
            (24) in section 404G, by striking ``an appropriation'' and 
        inserting ``to be appropriated'';
            (25) in section 409A(1), by striking ``private financial'' 
        and inserting ``private student financial'';
            (26) in section 413C(d)--
                    (A) by striking ``, a reasonable proportion of the 
                institution's allocation shall be made available to 
                such students, except that'' and inserting ``and''; and
                    (B) by striking ``5 percent of the need'' and 
                inserting ``5 percent of the total financial need'';
            (27) in section 413D(d)(3)(C), by striking ``three-fourths 
        in the Pell Grant family size offset'' and inserting ``150 
        percent of the difference between the income protection 
        allowance for a family of five with one in college and the 
        income protection allowance for a family of six with one in 
        college'';
            (28) in section 415C(b)(7), by striking the period at the 
        end and inserting a semicolon;
            (29) in section 419C(b)--
                    (A) by striking ``for a period of not more than 4 
                years for the first 4 years of study'' and inserting 
                ``for a period of not less than 1 or more than 4 years 
                during the first 4 years of study''; and
                    (B) by adding at the end the following:
``The State educational agency administering the program in a State 
shall have discretion to determine the period of the award (within the 
limits specified in the preceding sentence), except that--
            ``(1) if the amount appropriated for this subpart for any 
        fiscal year exceeds the amount appropriated for fiscal year 
        1993, the Secretary shall identify to each State educational 
        agency the number of scholarships available to that State under 
        section 419D(b) that are attributable to such excess; and
            ``(2) the State educational agency shall award not less 
        than that number of scholarships for a period of 4 years.'';
            (30) in section 419D, by adding at the end the following 
        new subsection:
    ``(d) Consolidation by Insular Areas Prohibited.--Notwithstanding 
section 501 of Public Law 95-1134 (48 U.S.C. 1469a), funds allocated 
under this part to an Insular Area described in that section shall be 
deemed to be direct payments to classes of individuals, and the Insular 
Area may not consolidate such funds with other funds received by the 
Insular Area from any department or agency of the United States 
Government.''; and
            (31) in section 419G(b), by striking ``the District of 
        Columbia, the Commonwealth of Puerto Rico,''.
    (c) Amendments to Part B of Title IV of the Act.--Part B of title 
IV of the Act is amended--
            (1) in section 422(c)(7), by striking the semicolon at the 
        end of subparagraph (B) and inserting a period;
            (2) in section 425(a)(1)(A)--
                    (A) by striking clauses (ii) and (iii) and 
                inserting the following:
                            ``(ii) in the case of a student at an 
                        eligible institution who has successfully 
                        completed such first year but has not 
                        successfully completed the remainder of a 
                        program of undergraduate education--
                                    ``(I) $3,500; or
                                    ``(II) if such student is enrolled 
                                in a program of undergraduate 
                                education, the remainder of which is 
                                less than one academic year, the 
                                maximum annual loan amount that such 
                                student may receive may not exceed the 
                                amount that bears the same ratio to the 
                                amount specified in subclause (I) as 
                                such remainder measured in semester, 
                                trimester, quarter, or clock hours 
                                bears to one academic year;
                            ``(iii) in the case of a student at an 
                        eligible institution who has successfully 
                        completed the first and second years of a 
                        program of undergraduate education but has not 
                        successfully completed the remainder of such 
                        program--
                                    ``(I) $5,500; or
                                    ``(II) if such student is enrolled 
                                in a program of undergraduate 
                                education, the remainder of which is 
                                less than one academic year, the 
                                maximum annual loan amount that such 
                                student may receive may not exceed the 
                                amount that bears the same ratio to the 
                                amount specified in subclause (I) as 
                                such remainder measured in semester, 
                                trimester, quarter, or clock hours 
                                bears to one academic year;'' and
                    (B) by striking the semicolon at the end of clause 
                (iv) and inserting a period;
            (3) in section 425(a)(1), by inserting at the end thereof 
        the following:
            ``(C) For the purpose of subparagraph (A), the number of 
        years that a student has completed in a program of 
        undergraduate education shall include any prior enrollment in 
        an eligible program of undergraduate education for which the 
        student was awarded an associate or baccalaureate degree, if 
        such degree is required by the institution for admission to the 
        program in which the student is enrolled.'';
            (4) in section 427(a)(2)(C)(i), by inserting ``section'' 
        before ``428B or 428C'';
            (5) in section 427A(e)(1), by striking ``under this part,'' 
        and inserting ``under section 427, 428, or 428H of this 
        part,'';
            (6) in section 427A(i)(1), by amending subparagraph (B) to 
        read as follows:
                    ``(B)(i) during any period in which a student is 
                eligible to have interest payments paid on his or her 
                behalf by the Government 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.'';
            (7) in section 427A(i)(2)(B), by striking out ``outstanding 
        principal balance'' and inserting in lieu thereof ``average 
        daily principal balance'';
            (8) in section 427A(i)(4)(B), by striking out ``outstanding 
        principal balance'' and inserting in lieu thereof ``average 
        daily principal balance'';
            (9) in section 427A(i)(5)--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraphs (2) and (4)'';
                    (B) by striking ``principle'' and inserting 
                ``principal''; and
                    (C) by inserting before the period at the end of 
                the second sentence the following: ``, but the excess 
                interest shall be calculated and credited to the 
                Secretary'';
            (10) in section 427A(i), by adding at the end the following 
        new paragraph:
            ``(7) Conversion to variable rate.--(A) Subject to 
        subparagraphs (B) and (C), a lender or holder may convert the 
        interest rate on a loan made pursuant to section 428 or 428H 
        that is subject to the provisions of this subsection to a 
        variable rate which is adjusted quarterly. The applicable rate 
        of interest for such loans for each 3-month period beginning on 
        January 1, April 1, July 1, or October 1, shall be determined 
        on the first day of the month preceding such 3-month period, 
        and shall be equal to (i) the bond equivalent rate of the 91-
        day Treasury bill auctioned at the final auction held prior to 
        the first day of the month preceding such 3-month period; plus 
        (ii) 3.25 percent if the first disbursement of the loan 
        occurred prior to July 23, 1992, or 3.10 percent if the first 
        disbursement of the loan occurred on or after July 23, 1992.
            ``(B) A lender or holder shall notify the borrower within 
        30 days of the conversion of the loan to a variable interest 
        rate.
            ``(C) The interest rate on a loan converted to a variable 
        rate pursuant to this paragraph shall not exceed the maximum 
        interest rate applicable to the loan prior to such conversion.
            ``(D) Loans on which the interest rate is converted in 
        accordance with subparagraph (A) shall not be subject to any 
        other provisions of this subsection.'';
            (11) in section 428(a)(2)(C)(i), by striking the period at 
        the end and inserting ``; and'';
            (12) in section 428(a)(2)(E), by inserting ``or 428H'' 
        after ``428A'';
            (13) in section 428(a)(3)(A)(v)--
                    (A) in subclause (I), by striking out ``before the 
                first disbursement of the loan; or'' and inserting 
                ``before the loan is first delivered to the borrower; 
                or''; and
                    (B) in subclause (II), by striking out ``before the 
                first disbursement of the loan'' and inserting ``before 
                the loan is first delivered to the borrower'';
            (14) in section 428(b)(1)(A)--
                    (A) by striking clauses (ii) and (iii) and 
                inserting the following:
                            ``(ii) in the case of a student at an 
                        eligible institution who has successfully 
                        completed such first year but has not 
                        successfully completed the remainder of a 
                        program of undergraduate education--
                                    ``(I) $3,500; or
                                    ``(II) if such student is enrolled 
                                in a program of undergraduate 
                                education, the remainder of which is 
                                less than one academic year, the 
                                maximum annual loan amount that such 
                                student may receive may not exceed the 
                                amount that bears the same ratio to the 
                                amount specified in subclause (I) as 
                                such remainder measured in semester, 
                                trimester, quarter, or clock hours 
                                bears to one academic year;
                            ``(iii) in the case of a student at an 
                        eligible institution who has successfully 
                        completed the first and second years of a 
                        program of undergraduate education but has not 
                        successfully completed the remainder of such 
                        program--
                                    ``(I) $5,500; or
                                    ``(II) if such student is enrolled 
                                in a program of undergraduate 
                                education, the remainder of which is 
                                less than one academic year, the 
                                maximum annual loan amount that such 
                                student may receive may not exceed the 
                                amount that bears the same ratio to the 
                                amount specified in subclause (I) as 
                                such remainder measured in semester, 
                                trimester, quarter, or clock hours 
                                bears to one academic year;'';
                    (B) by redesignating clause (iv) as clause (v); and
                    (C) by inserting after clause (iii) the following:
                            ``(iv) in the case of a student who has 
                        received an associate or baccalaureate degree 
                        and is enrolled in an eligible program for 
                        which the institution requires such degree for 
                        admission, the number of years that a student 
                        has completed in a program of undergraduate 
                        education shall, for the purposes of clauses 
                        (ii) and (iii), include any prior enrollment in 
                        the eligible program of undergraduate education 
                        for which the student was awarded such degree; 
                        and'';
            (15) in section 428(b)(1)(B), by striking the matter 
        following clause (ii) and inserting the following:
                ``except that the Secretary may increase the limit 
                applicable to students who are pursuing programs which 
                the Secretary determines are exceptionally 
                expensive;'';
            (16) in section 428(b)(1), by amending subparagraph (N) to 
        read as follows:
                    ``(N) provides that funds borrowed by a student--
                            ``(i) are disbursed to the institution by 
                        check or other means that is payable to, and 
                        requires the endorsement or other certification 
                        by, such student, unless such student requests 
                        that the check be endorsed, or the funds 
                        transfer authorized, pursuant to an authorized 
                        power-of-attorney; and
                            ``(ii) are, at the request of the student, 
                        disbursed directly to the student by the means 
                        described in clause (i), in the case of a 
                        student who is studying 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 or at an 
                        eligible foreign institution;'';
            (17) in section 428(b)(1)(U)--
                    (A) by striking ``this clause;'' and inserting 
                ``this clause''; and
                    (B) by inserting a comma after ``emergency action'' 
                each place it appears;
            (18) in section 428(b)(1), by striking subparagraph (V);
            (19) in section 428(b)(2)(F)(i), by striking ``each to 
        provide a separate notice'' and inserting ''either jointly or 
        separately to provide a notice'';
            (20) in section 428(b)(2)(F)(ii), by striking 
        ``transferor'' and inserting ``transferee'';
            (21) in section 428(b)(2)(F)(ii)(I), by striking ``to 
        another holder'';
            (22) in section 428(b)(2)(F)(ii)(II), by striking ``such 
        other'' and inserting ``the new'';
            (23) in section 428(b), by striking paragraph (7) and 
        inserting the following:
            ``(7) Repayment period.--(A) In the case of a loan made 
        under section 427 or 428, the repayment period shall exclude 
        any period of authorized deferment or forbearance and shall 
        begin--
                    ``(i) the day after 6 months after the date the 
                student ceases to carry at least one-half the normal 
                full-time academic workload (as determined by the 
                institution); or
                    ``(ii) on an earlier date if the borrower requests 
                and is granted a repayment schedule that provides for 
                repayment to commence at an earlier date.
            ``(B) In the case of a loan made under section 428H, the 
        repayment period shall exclude any period of authorized 
        deferment or forbearance, and--
                    ``(i) if such loan is made to a borrower that has 
                borrowed a loan made under section 427 or 428 for the 
                same period of instruction--
                            ``(I) interest shall begin to accrue or be 
                        paid by the borrower on the day the loan is 
                        disbursed, or, if the loan is disbursed in 
                        multiple installments, on the day of the last 
                        such disbursement; and
                            ``(II) the repayment period with respect to 
                        principal begins in accordance with 
                        subparagraph (A); and
                    ``(ii) if such loan is made to any other borrower, 
                the repayment or accrual of interest shall begin as 
                described in clause (i)(I), but the borrower shall be 
                required to elect whether the repayment of principal 
                shall begin as described in clause (i)(II), or on the 
                day immediately after the student ceases to carry at 
                least one-half the normal full-time academic workload 
                (as determined by the institution).
            ``(C) In the case of a loan made under section 428A, 428B, 
        or 428C, the repayment period shall begin on the day the loan 
        is disbursed, 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.'';
            (24) in section 428(b), by adding at the end thereof the 
        following new paragraph:
            ``(8) Means of disbursement of loan proceeds.--Nothing in 
        this title shall be interpreted to prohibit the disbursement of 
        loan proceeds by means other than by check or to allow the 
        Secretary to require checks to be made co-payable to the 
        institution and the borrower.'';
            (25) in section 428(c)(1)(A), by striking the last sentence 
        and inserting the following: ``A guaranty agency shall file a 
        claim for reimbursement with respect to losses under this 
        subsection within 45 days after the guaranty agency discharges 
        its insurance obligation on the loan.'';
            (26) in section 428(c)(2)(G), by striking ``demonstrates'' 
        and inserting ``certifies'';
            (27) in section 428(c)(3), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) shall contain provisions providing that--
                            ``(i) upon written request, a lender shall 
                        grant a borrower forbearance, renewable at 12-
                        month intervals, on terms agreed to in writing 
                        by the parties to the loan with the approval of 
                        the insurer, and otherwise consistent with the 
                        regulations of the Secretary, if the borrower--
                                    ``(I) is serving in a medical or 
                                dental internship or residency program, 
                                the successful completion of which is 
                                required to begin professional practice 
                                or service, or is serving in a medical 
                                or dental internship or residency 
                                program leading to a degree or 
                                certificate awarded by an institution 
                                of higher education, a hospital, or a 
                                health care facility that offers 
                                postgraduate training, provided that if 
                                the borrower qualifies for a deferment 
                                under section 427(a)(2)(C)(vii) or 
                                subparagraph (M)(vii) of this paragraph 
                                as in effect prior to the enactment of 
                                the Higher Education Amendments of 
                                1992, or section 427(a)(2)(C) or 
                                subparagraph (M) of this paragraph as 
                                amended by such amendments, the 
                                borrower has exhausted his or her 
                                eligibility for such deferment; or
                                    ``(II) has a debt burden under this 
                                title that equals or exceeds 20 percent 
                                of income;
                            ``(ii) the length of the forbearance 
                        granted by the lender--
                                    ``(I) under clause (i)(I) shall 
                                equal the length of time remaining in 
                                the borrower's medical or dental 
                                internship or residency program, if the 
                                borrower is not eligible to receive a 
                                deferment described in such clause, or 
                                such length of time remaining in the 
                                program after the borrower has 
                                exhausted his or her eligibility for 
                                such deferment; or
                                    ``(II) under clause (i)(II) shall 
                                not exceed 3 years; and
                            ``(iii) no administrative or other fee may 
                        be charged in connection with the granting of a 
                        forbearance under clause (i), and no adverse 
                        information regarding a borrower may be 
                        reported to a credit bureau organization solely 
                        because of the granting of such forbearance;'';
            (28) in section 428(e)(2)(A)--
                    (A) by striking ``(i)'';
                    (B) by striking ``(I)'' and inserting ``(i)''; and
                    (C) by striking ``(II)'' and inserting ``(ii)'';
            (29) in section 428(j)(2), in the matter preceding 
        subparagraph (A), by striking ``lender of last resort'' and 
        inserting ``lender-of-last-resort'';
            (30) in section 428A(b)(1), by striking subparagraph (B) 
        and inserting the following:
                    ``(B) In the case of a student at an eligible 
                institution who has successfully completed such first 
                and second years but has not successfully completed the 
                remainder of a program of undergraduate education--
                            ``(i) $5,500; or
                            ``(ii) if such student is enrolled in a 
                        program of undergraduate education, the 
                        remainder of which is less than one academic 
                        year, the maximum annual loan amount that such 
                        student may receive may not exceed the amount 
                        that bears the same ratio to the amount 
                        specified in subclause (I) as such remainder 
                        measured in semester, trimester, quarter, or 
                        clock hours bears to one academic year.'';
            (31) in section 428A(b)(1)--
                    (A) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (B) by inserting after subparagraph (B) the 
                following:
                    ``(C) For the purposes of this paragraph, the 
                number of years that a student has completed in a 
                program of undergraduate education shall include any 
                prior enrollment in an eligible program of 
                undergraduate education for which the student was 
                awarded an associate or baccalaureate degree, if such 
                degree is required by the institution for admission to 
                the program in which the student is enrolled.'';
            (32) in section 428A(b)(3)(B)(i), by striking ``section 
        428'' and inserting ``sections 428 and 428H'';
            (33) in section 428A(c)(1), by striking ``sections 427 or 
        428(b)'' and inserting ``section 427 or 428(b)'';
            (34) in section 428B(c)(2), by striking ``borrower.'' and 
        inserting ``borrower, and sent to such institution.'';
            (35) in section 428C(a)(3)(A), by striking ``delinquent or 
        defaulted borrower who will reenter repayment through loan 
        consolidation'' and inserting ``defaulted borrower who has made 
        arrangements to repay the obligation on the defaulted loans 
        satisfactory to the holders of the defaulted loan'';
            (36) in section 428C(a)(4)(A), by striking ``, except for 
        loans made to parent borrowers under section 428B as in effect 
        prior to the enactment of the Higher Education Amendments of 
        1986'';
            (37) in section 428C(a)(4)(C), by striking ``part C'' and 
        inserting ``part A'';
            (38) in section 428C(c)(2)(A)(vi), by inserting a period 
        after ``30 years'';
            (39) in section 428C(c)(3)(A), by inserting ``be an 
        amount'' before ``equal to'';
            (40) in section 428F(a)(2)--
                    (A) by striking ``this paragraph'' and inserting 
                ``paragraph (1) of this subsection''; and
                    (B) by striking ``this section'' and inserting 
                ``this subsection'';
            (41) in section 428F(a)(4), by striking ``this paragraph'' 
        and inserting ``paragraph (1) of this subsection'';
            (42) in section 428F(b), by adding at the end thereof the 
        following new sentence: ``A borrower may only obtain the 
        benefit of this subsection with respect to renewed eligibility 
        once.'';
            (43) in section 428G(c)(3), by striking ``disbursed'' and 
        inserting ``disbursed by the lender'';
            (44) in section 428H(d)(2), by striking subparagraph (B) 
        and inserting the following:
                    ``(B) in the case of a student at an eligible 
                institution who has successfully completed such first 
                and second years but has not successfully completed the 
                remainder of a program of undergraduate education, 
                $5,000.'';
            (45) in section 428H(e)(1), by striking ``shall commence 6 
        months after the month in which the student ceases to carry at 
        least one-half the normal full-time workload as determined by 
        the institution.'' and inserting ``shall begin as described in 
        section 428(b)(7)(B).'';
            (46) in section 428H(e)(4), by striking ``427A(e)'' and 
        inserting ``427A'';
            (47) in section 428H, by redesignating subsection (l) as 
        subsection (h);
            (48) in section 428I(g), by striking ``the Federal False 
        Claims Act'' and inserting ``section 3729 of title 31, United 
        States Code,'';
            (49) in section 428J(b)(1), by striking ``sections 428A, 
        428B, or 428C'' and inserting ``section 428A, 428B, or 428C'';
            (50) in section 428J(b)(1)(B), by striking ``agrees in 
        writing to volunteer for service'' and inserting ``serves as a 
        full-time volunteer'';
            (51) in section 428J(c)(1), by striking ``academic year'' 
        each place it appears and inserting ``year of service'';
            (52) in the heading for section 428J(d), by striking ``of 
        Eligibility'' and inserting ``to Eligible'';
            (53) in section 428J, by amending subsection (e) to read as 
        follows:
    ``(e) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        repayment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        reasonably require. Loan repayment under this section shall be 
        on a first-come, first-served basis and subject to the 
        availability of appropriations.
            ``(2) Conditions.--An eligible individual may apply for 
        repayment after completing each year of qualifying service. The 
        borrower shall receive forbearance while engaged in qualifying 
        service.'';
            (54) in section 430A(f)(1), by striking the comma at the 
        end and inserting a semicolon;
            (55) in section 432(m)(2)--
                    (A) by striking ``deferment form'' and inserting 
                ``deferment forms''; and
                    (B) by striking ``a common deferment reporting 
                form'' and inserting ``common deferment reporting 
                forms'';
            (56) in section 433(b), in the matter preceding paragraph 
        (1), by striking ``60 days'' and inserting ``30 days'';
            (57) in section 433(e), by striking ``section 428A, 428B,'' 
        and inserting ``sections 428A, 428B,'';
            (58) in section 435(d)(2)(D), by striking ``lender; and'' 
        and inserting ``lender;'';
            (59) in section 435(d)(2), by increasing the indentation of 
        the matter following subparagraph (F) by two em spaces;
            (60) in section 435(d)(3), by striking ``435(o)'' and 
        inserting ``435(m)'';
            (61) in section 435(m)(1)(A), by striking ``428 or 428A'' 
        and inserting ``428, 428A, or 428H,'';
            (62) in section 435(m)(2)(D)--
                    (A) by inserting ``(or the portion of a loan made 
                under section 428C that is used to repay a loan made 
                under section 428A)'' after ``section 428A'' the first 
                place it appears; and
                    (B) by inserting ``(or a loan made under section 
                428C a portion of which is used to repay a loan made 
                under section 428A)'' after ``section 428A'' the second 
                place it appears;
            (63) in section 437, by amending subsection (b) to read as 
        follows:
    ``(b) Payment of Claims on Loans in Bankruptcy.--The Secretary 
shall pay to the holder of a loan described in section 428(a)(1)(A) or 
(B) or section 428A, 428B, 428C, or 428H, the amount of the unpaid 
balance of principal and interest owed on such loan--
            ``(1) when the borrower files for relief under chapter 12 
        or 13 of title 11, United States Code;
            ``(2) when the borrower who has filed for relief under 
        chapter 7 or 11 of such title commences an action for a 
        determination of dischargeability under section 523(a)(8)(B) of 
        such title; or
            ``(3) for loans described in section 523(a)(8)(A) of such 
        title, when the borrower files for relief under chapter 7 or 11 
        of such title.''.
            (64) in section 437(c)(1)--
                    (A) by striking ``If a student borrower'' and 
                inserting ``If a borrower'';
                    (B) by striking ``under this part is unable'' and 
                inserting ``under this part and the student borrower, 
                or the student on whose behalf a parent borrowed, is 
                unable''; and
                    (C) by striking ``in which the borrower is 
                enrolled'' and inserting ``in which such student is 
                enrolled''; and
            (65) in section 437(c)(4), by adding at the end thereof the 
        following sentence: ``The amount of a loan, and interest on a 
        loan, which is canceled under this subsection shall be treated 
        the same as loans under section 465(a)(5) of this title.''
            (66) in section 437A(a), in the matter preceding paragraph 
        (1), by striking ``, to the extent of funds appropriated under 
        subsection (d)'';
            (67) in section 437A(c)(2), by inserting a period at the 
        end;
            (68) in section 437A, by striking subsection (e); and
            (69) in section 439(r)(12), by striking ``section 522'' and 
        inserting ``section 552''.
    (d) Amendment to Part C of Title IV of the Act.--Part C of title IV 
of the Act is amended--
            (1) in section 442(d)(4)(C), by striking ``three-fourths in 
        the Pell Grant family size offset'' and inserting ``150 percent 
        of the difference between the income protection allowance for a 
        family of five with one in college and the income protection 
        allowance for a family of six with one in college'';
            (2) in section 442(e)--
                    (A) by inserting ``(1)'' after the subsection 
                heading; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) If, under paragraph (1) of this subsection, an institution 
returns more than 10 percent of its allocation, the institution's 
allocation for the next fiscal year shall be reduced by the amount 
returned. The Secretary may waive this paragraph for a specific 
institution if the Secretary finds that enforcing this paragraph would 
be contrary to the interest of the program.'';
            (3) in section 443(b)(2)(A), by striking ``institution;'' 
        and inserting ``institution; and'';
            (4) in section 443(b), by amending paragraph (5) to read as 
        follows:
            ``(5) provide that the Federal share of the compensation of 
        students employed in the work-study program in accordance with 
        the agreement shall not exceed 75 percent for academic year 
        1993-1994 and succeeding academic years, except that the 
        Federal share may exceed such amounts of compensation if the 
        Secretary determines, pursuant to regulations promulgated by 
        the Secretary establishing objective criteria for such 
        determinations, that a Federal share in excess of such amounts 
        is required in furtherance of the purpose of this part;''; and
            (5) in section 443(b)(8), by striking subparagraphs (A), 
        (B), and (C) and inserting the following:
                    ``(A) that are only on campus and that--
                            ``(i) to the maximum extent practicable, 
                        complement and reinforce the education programs 
                        or vocational goals of such students; and
                            ``(ii) furnish student services that are 
                        directly related to the student's education, as 
                        determined by the Secretary pursuant to 
                        regulations, except that no student shall be 
                        employed in any position that would involve the 
                        solicitation of other potential students to 
                        enroll in the school; or
                    ``(B) in community service in accordance with 
                paragraph (2)(A) of this subsection;''.
    (e) Amendments to Part E of Title IV of the Act.--Part E of title 
IV of the Act is amended--
            (1) in section 462(a)(2)(D), by striking ``if the 
        institution which has'' and inserting ``if the institution 
        has'';
            (2) in section 462(d)(4)(C), by striking ``three-fourths in 
        the Pell Grant family size offset'' and inserting ``150 percent 
        of the difference between the income protection allowance for a 
        family of five with one in college and the income protection 
        allowance for a family of six with one in college'';
            (3) in section 462(e), by reducing the indentation of 
        paragraph (2) by two em spaces;
            (4) in section 462(h)(4), by reducing the indentation of 
        subparagraph (B) by two em spaces;
            (5) in section 463(a)(2)(B)(i)(II), by striking ``7.5 
        percent'' and inserting ``7.5 percent for award year 1993-1994 
        and has a cohort default rate which does not exceed 15 percent 
        for award year 1994-1995 or for any succeeding award year'';
            (6) in section 463(c)(4), by striking ``shall disclose'' 
        and inserting ``shall at least annually disclose'';
            (7) in section 463, by adding at the end the following new 
        subsections:
    ``(d) Limitation on Use of Interest Bearing Accounts.--In carrying 
out the provisions of subsection (a)(10), the Secretary may not require 
that any collection agency, collection attorney, or loan servicer 
collecting loans made under this part deposit amounts collected on such 
loans in interest bearing accounts, unless such agency, attorney, or 
servicer holds such amounts for more than 45 days.
    ``(e) Special Due Diligence Rule.--In carrying out the provisions 
of subsection (a)(5) relating to due diligence, the Secretary shall 
make every effort to ensure that institutions of higher education may 
use Internal Revenue Service skip-tracing collection procedures on 
loans made under this part.'';
            (8) in section 463A, by striking subsections (d) and (e);
            (9) in section 464(c)(2)(B) by striking ``repayment or'' 
        and inserting ``repayment of'';
            (10) in section 464(c)(6), by striking ``Fullbright'' and 
        inserting ``Fulbright'';
            (11) in section 464(e), by striking ``principle'' and 
        inserting ``principal'';
            (12) in section 465(a)(2)(D), by striking ``services'' and 
        inserting ``service'';
            (13) in section 465(a)(2)(F), by striking ``or'' at the 
        end;
            (14) in section 465(a), by reducing the indentation of 
        paragraph (6) by 2 em spaces; and
            (15) in section 466(c), by reducing the indentation of 
        paragraph (2) by two em spaces.
    (f) Amendments to Part F of Title IV of the Act.--Part F of title 
IV of the Act is amended--
            (1) in the table contained in sections 475(c)(4) and 
        477(b)(4), by inserting ``$'' before ``9,510'';
            (2) in section 475(f)(3)--
                    (A) by striking ``Income in the case of a parent'' 
                and inserting ``If a parent'';
                    (B) by striking ``(1) of this subsection, or a 
                parent'' and inserting ``(1) of this subsection, or if 
                a parent''; and
                    (C) by striking ``is determined as follows: The 
                income'' and inserting ``the income'';
            (3) in section 475(g)(1)(B), by inserting a close 
        parentheses after ``paragraph (2)'';
            (4) in the table contained in section 475(g)(3), by adding 
        a last row that is identical to the last row of the table 
        contained in section 476(b)(2);
            (5) in section 476, by adding at the end thereof the 
        following new subsection:
    ``(d) Computations in Case of Separation, Divorce, or Death.--In 
the case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's contribution from income or assets.'';
            (6) in section 477 by adding at the end thereof the 
        following new subsection:
    ``(e) Computations in Case of Separation, Divorce, or Death.--In 
the case of a student who is divorced or separated, or whose spouse has 
died, the spouse's income and assets shall not be considered in 
determining the family's available income or assets.'';
            (7) in section 478--
                    (A) by striking ``1992-1993'' each place it appears 
                and inserting ``1993-1994''; and
                    (B) in subsection (c)(1), by striking ``1992'' and 
                inserting ``1993'';
            (8) in section 478(h), by striking ``Bureau of Labor 
        Standards'' and inserting ``Bureau of Labor Statistics'';
            (9) in section 479(a)(1), by inserting ``of'' after 
        ``(c)'';
            (10) in section 479(b)(1)(B)(i)--
                    (A) by inserting ``(and the student's spouse, if 
                any)'' after ``student'' each time it appears; and
                    (B) by striking ``such'';
            (11) in section 479(b)(2), by striking ``five elements'' 
        and inserting ``six elements'';
            (12) in section 479(b)(2)(E), by striking the semicolon and 
        inserting a comma;
            (13) in section 480(c)(2), by striking ``Title'' each place 
        it appears and inserting ``United States Code, title'';
            (14) in section 480(d)(2), by inserting ``or was a ward of 
        the court until the individual reached the age of 18'' prior to 
        the semicolon; and
            (15) in section 480, by adding at the end the following new 
        subsections:
    ``(k) Dependents.--(1) Except as otherwise provided, the term 
`dependent of the parent' means the student, dependent children of the 
student's parents, including those children who are deemed to be 
dependent students when applying for aid under this title, and other 
persons who live with and receive more than one-half of their support 
from the parent and will continue to receive more than half of their 
support from the parent during the award year.
    ``(2) Except as otherwise provided, the term `dependent of the 
student' means the student's dependent children and other persons 
(except the student's spouse) who live with and receive more than one-
half of their support from the student and will continue to receive 
more than half of their support from the student during the award year.
    ``(l) Family Size.--(1) In determining family size in the case of a 
dependent student--
            ``(A) if the parents are not divorced or separated, family 
        members include the student's parents, and the dependents of 
        the student's parents including the student;
            ``(B) if the parents are divorced or separated, family 
        members include the parent whose income is included in 
        computing available income and that parent's dependents, 
        including the student; and
            ``(C) if the parents are divorced and the parent whose 
        income is so included is remarried, or if the parent was a 
        widow or widower who has remarried, family members also 
        include, in addition to those individuals referred to in 
        subparagraph (B), the new spouse and any dependents of the new 
        spouse if that spouse's income is included in determining the 
        parents' adjusted available income.
    ``(2) In determining family size in the case of an independent 
student--
            ``(A) family members include the student, the student's 
        spouse, and the dependents of the student; and
            ``(B) if the student is divorced or separated, family 
        members do not include the spouse (or ex-spouse), but do 
        include the student and the student's dependents.
    ``(m) Business Assets.--The term `business assets' means property 
that is used in the operation of a trade or business, including real 
estate, inventories, buildings, machinery, and other equipment, 
patents, franchise rights, and copyrights.''.
    (g) Amendments to Part G of Title IV of the Act.--Part G of title 
IV of the Act is amended--
            (1) in section 481(a)(3)(B), by inserting before the 
        semicolon the following: ``, except that the Secretary, at the 
        request of such institution, may waive the applicability of 
        this subparagraph to such institution for good cause, as 
        determined by the Secretary'';
            (2) in section 481(a)(3)(D)--
                    (A) by striking ``are admitted pursuant to section 
                484(d)'' and inserting ``do not have a high school 
                diploma or its recognized equivalent''; and
                    (B) by inserting before the period the following: 
                ``, except that the Secretary may waive the limitation 
                contained in this subparagraph if a nonprofit 
                institution demonstrates to the satisfaction of the 
                Secretary that it exceeds such limitation because it 
                serves, through contracts with Federal, State, or local 
                government agencies, significant numbers of students 
                who do not have a high school diploma or its recognized 
                equivalent'';
            (3) in section 481(a)(4), by amending subparagraph (A) to 
        read as follows:
                    ``(A) the institution, or an affiliate of the 
                institution that has the power, by contract or 
                ownership interest, to direct or cause the direction of 
                the management or policies of the institution, has 
                filed for bankruptcy;'';
            (4) in section 481(d), by amending paragraph (2) to read as 
        follows:
    ``(2) For the purpose of any program under this title, the term 
`academic year' shall require a minimum of 30 weeks of instructional 
time, and, with respect to an undergraduate course of study, shall 
require that during such minimum period of instructional time a full-
time student is expected to complete at least 24 semester or trimester 
hours or 36 quarter hours at an institution that measures program 
length in credit hours, or at least 900 clock hours at an institution 
that measures program length in clock hours.'';
            (5) in section 481(e) by striking paragraph (2) and 
        inserting the following:
    ``(2)(A) A program is an eligible program for purposes of part B of 
this title if it is a program of at least 300 clock hours of 
instruction, but less than 600 clock hours of instruction, offered 
during a minimum of 10 weeks, that--
            ``(i) has a completion rate of at least 70 percent, as 
        determined in accordance with the regulations of the Secretary;
            ``(ii) has a placement rate of at least 70 percent, as 
        determined in accordance with the regulations of the Secretary; 
        and
            ``(iii) satisfies such further criteria as the Secretary 
        may prescribe by regulation.
    ``(B) In the case of a program being determined eligible for the 
first time under this paragraph, such determination shall be made by 
the Secretary before such program is considered to have satisfied the 
requirements of this paragraph.'';
            (6) in section 481(f), by striking ``State'' and inserting 
        ``individual, or any State,'';
            (7) in section 482(c), by adding at the end the following 
        new sentence: ``For award year 1994-95, this subsection will 
        not apply to regulatory changes affecting parts B, G, and H of 
        this title.'';
            (8) in section 483(a)(1), by striking ``section 411(d)'' 
        and inserting ``section 401(d)'';
            (9) in section 483(a)(2), by inserting at the end the 
        following new sentence: ``No data collected on a form for which 
        a fee is charged shall be used to complete the form prescribed 
        under paragraph (1).'';
            (10) in section 483(a)(3), by inserting at the end the 
        following sentence: ``Entities designated by institutions of 
        higher education or States to receive such data shall be 
        subject to all requirements of this section, unless such 
        requirements are waived by the Secretary.'';
            (11) in section 483(f), by striking ``address, social 
        security number,'' and inserting ``address or employer's 
        address, social security number or employer identification 
        number,'';
            (12) in section 484(a)(4)(B), by striking the semicolon and 
        inserting the following: ``(or if the student is ineligible for 
        or unable to obtain a social security number, such student's 
        identification number); and '';
            (13) in section 484(a)(5), by striking ``in the United 
        States for other than a temporary purpose and able to provide 
        evidence from the Immigration and Naturalization Service of his 
        or her intent to become a permanent resident'' and inserting 
        ``able to provide evidence from the Immigration and 
        Naturalization Service that he or she is in the United States 
        for other than a temporary purpose with the intention of 
        becoming a citizen or permanent resident'';
            (14) in section 484(b)(2)--
                    (A) in subparagraph (A), by striking ``and'';
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; and''; and
                    (C) after subparagraph (B), by inserting:
                    ``(C) has applied for a loan under section 428H, if 
                eligible.'';
            (15) in section 484(b)(3), by striking ``part B'' and 
        inserting ``part B or D'';
            (16) in section 484, by striking subsection (f);
            (17) in section 484(g), by inserting a comma after ``Part 
        D'' each place it appears;
            (18) in section 484(h)(4)(B), by striking ``constitutes'' 
        and inserting ``constitute'';
            (19) in section 484(i)(2)--
                    (A) by striking ``(h)(4)(A)(ii)'' and inserting 
                ``(h)(4)(A)(i)''; and
                    (B) by striking ``documentation,'' and inserting 
                ``documentation, or'';
            (20) in section 484(i)(3)--
                    (A) by striking ``(h)(4)(B)(ii)'' and inserting 
                ``(h)(4)(B)(i)''; and
                    (B) by striking ``, or'' and inserting a period;
            (21) in section 484(i), by striking paragraph (4);
            (22) in section 484(n), by striking ``part B, C,'' and 
        inserting ``parts B, C,'';
            (23) in section 484(q)(2), by striking ``a correct social 
        security number'' and inserting ``documented evidence of a 
        social security number that is determined by the institution to 
        be correct'';
            (24) in section 484B(a), by striking ``grant, loan, or work 
        assistance'' and inserting ``grant or loan assistance'';
            (25) in section 484B(b)(3), by striking ``subsection (d)'' 
        and inserting ``subsection (c)'';
            (26) in section 485(a)(1)(F)(iv), by inserting ``under'' 
        after ``awards'';
            (27) in section 485(a)(1)(F)(viii), by striking the period;
            (28) in section 485(a)(1)(F), by striking clause (vi) and 
        redesignating clauses (vii) and (viii) as clauses (vi) and 
        (vii), respectively;
            (29) in section 485(a)(1)(L), by inserting a comma after 
        ``full-time'';
            (30) in section 485(a)(3), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) shall, for any academic year beginning more 
                than 270 days after the Secretary first prescribes 
                final regulations pursuant to such subparagraph (L), be 
                made available to current and prospective students 
                prior to enrolling or entering into any financial 
                obligation;'';
            (31) in paragraphs (1)(A) and (2)(A) of section 485(b), by 
        striking ``under parts'' and inserting ``under part'';
            (32) in section 485(e), by adding at the end the following 
        new paragraph:
    ``(9) This subsection shall not be effective until the first July 1 
that follows, by more than 270 days, the date on which the Secretary 
first prescribes final regulations pursuant to this subsection. The 
reports required by this subsection shall be due on that July 1 and 
each succeeding July 1 and shall cover the 1-year period ending June 30 
of the preceding year.'';
            (33) in section 485B(a)--
                    (A) by striking ``part E'' and inserting ``parts D 
                and E''; and
                    (B) by striking the second period at the end of the 
                third sentence;
            (34) in section 485B(a)(4), by striking ``part E'' and 
        inserting ``parts D and E'';
            (35) in section 485B(c), by striking ``part B or part E'' 
        and inserting ``part B, D, or E'';
            (36) in section 485B(e), by striking ``under this part'' 
        each place it appears and inserting ``under this title'';
            (37) in section 487(a)(2), by striking ``, or for 
        completing or handling the Federal Student Assistance Report'';
            (38) in section 487(c)(1)(F), by striking ``eligibility for 
        any program under this title of any otherwise eligible 
        institution,'' and inserting ``participation in any program 
        under this title of an eligible institution,'';
            (39) in section 489(a), by striking ``484(c)'' and 
        inserting ``484(h)''; and
            (40) in section 491(h)(1), by striking ``subtitle III'' and 
        inserting ``subchapter III''.
    (h) Amendments to Part H of Title IV of the Act.--Part H of title 
IV of the Act is amended--
            (1) in section 494C(a), by striking the first and second 
        sentences and inserting the following: ``The Secretary shall 
        review all eligible institutions of higher education in a State 
        to determine if any such institution meets any of the criteria 
        in subsection (b). If any such institution meets one or more of 
        such criteria, the Secretary shall inform the State in which 
        such institution is located that the institution has met such 
        criteria, and the State shall review the institution pursuant 
        to the standards in subsection (d). The Secretary may determine 
        that a State need not review an institution if such institution 
        only meets the criterion in subsection (b)(10), such 
        institution was previously reviewed by the State under 
        subsection (d), and the State determined in such previous 
        review that the institution did not violate any of the 
        standards in subsection (d).'';
            (2) in section 494C(i), by striking ``sections 428 or 487'' 
        and inserting ``section 428 or 487'';
            (3) in section 496(a)(2)(A)(i), by inserting ``of 
        institutions'' after ``membership'';
            (4) in section 496(a)(3)(A), by striking ``subparagraph 
        (A)'' and inserting ``subparagraph (A)(i)'';
            (5) in section 496(a)(5)--
                    (A) by striking the period at the end of 
                subparagraph (L) and inserting a semicolon; and
                    (B) by inserting after subparagraph (L) the 
                following:
``except that subparagraphs (G), (H), (I), (J), and (L) shall not apply 
to agencies or associations described in paragraph (2)(A)(ii) of this 
subsection;'';
            (6) in section 496(c), by striking ``for the purpose of 
        this title'' and inserting ``as a reliable authority as to the 
        quality of education or training offered by an institution 
        seeking to participate in the programs authorized under this 
        title'';
            (7) in section 496(l)(2)--
                    (A) by striking ``institutution'' and inserting 
                ``institution''; and
                    (B) by striking ``association leading to the 
                suspension'' and inserting ``association, described in 
                paragraph (2)(A)(i), (2)(B), or (2)(C) of subsection 
                (a) of this section, leading to the suspension'';
            (8) in section 496(n)(1), by amending subparagraph (B) to 
        read as follows:
            ``(B) site visits, including unannounced site visits as 
        appropriate, at accrediting agencies and associations, and, at 
        the Secretary's discretion, at representative member 
        institutions.'';
            (9) in section 498(c)(3), by amending subparagraph (C) to 
        read as follows:
            ``(C) such institution establishes to the satisfaction of 
        the Secretary, with the support of a report of an independent 
        certified public accountant prepared under generally accepted 
        accounting principles (except as provided herein), that the 
        institution has sufficient resources (which shall include, as a 
        current asset, the equity in land, buildings, and other 
        facilities owned and occupied by such institution and used to 
        provide the education and training services described in such 
        institution's official publications and statements) to ensure 
        against precipitous closure, including the ability to meet all 
        of its financial obligations, including refunds of 
        institutional charges and repayments to the Secretary for 
        liabilities and debts incurred in programs administered by the 
        Secretary; or'';
            (10) in section 498(f), by inserting after the second 
        sentence the following: ``The Secretary may establish 
        priorities by which institutions are to receive site visits, 
        and may coordinate such visits with site visits by States, 
        guaranty agencies, and accrediting bodies in order to eliminate 
        duplication, and reduce administrative burden.'';
            (11) in section 498(h)(1)(B), by amending clause (iii) to 
        read as follows:
                    ``(iii) the Secretary determines that an 
                institution that seeks to renew its certification is, 
                in the judgment of the Secretary, in an administrative 
                or financial condition that may jeopardize its ability 
                to perform its financial responsibilities under a 
                program participation agreement.'';
            (12) in section 498(h)(3), by striking ``the Secretary may 
        terminate''; and inserting ``the Secretary may, after providing 
        the institution an opportunity to show that the institution 
        meets those responsibilities, terminate'';
            (13) in section 498, by amending subsection (i)(1) to read 
        as follows:
    ``(i) Treatment of Changes of Ownership.--(1) An eligible 
institution of higher education that has had a change in ownership 
resulting in a change of control shall not qualify to participate in 
programs under this title after the change in control (except as 
provided in paragraph (3)) unless it establishes that it meets the 
requirements of section 481 (other than the requirements in subsections 
(b)(5) and (c)(3)) and this section after such change in control.'';
            (14) in section 498(i)(3), by amending subparagraph (A) to 
        read as follows:
            ``(A) the sale or transfer, upon the death of an owner of 
        an institution, of the ownership interest of the deceased in 
        that institution to a family member or to a person holding an 
        ownership interest in that institution; or'';
            (15) in section 498(j), by amending subsection (j)(1) to 
        read as follows:
    ``(j) Treatment of Branches.--(1) A branch of an eligible 
institution of higher education, as defined pursuant to regulations of 
the Secretary, must be certified under this subpart before it may 
participate as part of such institution in a program under this title, 
except that such branch shall not be required to meet the requirements 
of sections 481(b)(5) and 481(c)(3) prior to seeking such 
certification. Such branch is required to be in existence at least 2 
years prior to seeking certification as a main campus or free-standing 
institution.''; and
            (16) in section 498A(e), by striking ``Act,'' and inserting 
        ``Act''.
    (i) Amendments to Titles V Through XII of the Act.--The Act is 
amended--
            (1) in section 505(b)(2)(D)(iii), by striking the period 
        and inserting a semicolon;
            (2) in section 525, by striking subsection (c) and 
        inserting the following:
    ``(c) Waivers.--For purposes of giving special consideration under 
section 523(d), a State may waive the criteria contained in the first 
sentence of subsection (b) for up to 25 percent of individuals 
receiving Paul Douglas Teacher Scholarships on or after July 1, 
1993.'';
            (3) in the first sentence of section 530A--
                    (A) by striking ``means'' and inserting ``is 
                determined both during a scholar's education and when 
                the scholar begins teaching and means''; and
                    (B) by striking ``elementary and secondary school 
                teachers'' each place it appears and inserting 
                ``preschool, elementary, and secondary school 
                teachers'';
            (4) in section 535(b)(1)(C), by striking the semicolon and 
        inserting a period;
            (5) in section 537(a), by inserting ``In'' before 
        ``General'';
            (6) in section 545(d), by striking ``parts B, D,'' and 
        inserting ``part B, D,'';
            (7) in section 580B, by striking ``(a) Authorization.--'';
            (8) in section 581(b)(2), by striking ``402A(g)(2)'' and 
        inserting ``402A(g)'';
            (9) in section 597(d)(1), by striking ``Development and'' 
        and inserting ``and Development'';
            (10) in section 602(a)(3), by striking ``(1)(A)'' and 
        inserting ``(1)'';
            (11) in section 602(a)(4), by striking ``(1)(A)'' and 
        inserting ``(1)'';
            (12) in section 603(a), by striking ``Resources'' and 
        inserting ``Resource'';
            (13) in section 607(c), by redesignating the last paragraph 
        as paragraph (3);
            (14) in section 714, by striking ``(a) In General.--'';
            (15) in section 715(b)--
                    (A) by striking ``(1) State grants.--'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2);
                    (C) in paragraph (2) (as so redesignated) by 
                redesignating clauses (i), (ii), and (iii) as 
                subparagraphs (A), (B), and (C), respectively; and
                    (D) by reducing the indentation of such paragraphs 
                (1) and (2) (as so redesignated) by two em spaces;
            (16) in section 725--
                    (A) by redesignating paragraphs (2) through (5) as 
                subparagraphs (3) through (6), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) shall require that the first loans for capital 
        projects authorized under section 723 be made no later than 
        March 31, 1994, and that the provisions of part B be 
        administered under the Education Department General 
        Administrative Regulations (EDGAR), if final regulations have 
        not been completed by that date to implement the provisions of 
        part B;''
            (17) in section 726, by inserting a period after ``title'' 
        the first time it appears and striking the remainder of the 
        sentence;
            (18) in section 731(a), by striking ``faculties,'' and 
        inserting ``faculty,'';
            (19) in section 731(c), by striking ``enactment of'';
            (20) in section 734(e)--
                    (A) by striking ``Faculties'' and inserting 
                ``Faculty''; and
                    (B) by striking ``faculties'' and inserting 
                ``faculty'';
            (21) in section 781(b), by striking ``Education Amendments 
        of 1992,'' and inserting ``Education Amendments of 1992'';
            (22) in section 782(1)(A), by striking ``outpatient care of 
        student'' and inserting ``outpatient care of students'';
            (23) in the matter preceding paragraph (1) of section 
        802(b), by inserting after ``fiscal year'' the following: ``the 
        Secretary shall reserve such amount as is necessary to make 
        continuing awards to institutions of higher education that 
        were, on the date of enactment of the Higher Education 
        Amendments of 1992, operating an existing cooperative education 
        program under a multiyear project award and to continue to pay 
        to such institutions the Federal share in effect on the day 
        before such date of enactment. Of the remainder of the amount 
        appropriated in such fiscal year'';
            (24) in section 803(b)(6)(A), by striking out ``data'';
            (25) in section 803(e)(2)--
                    (A) by striking ``Mexican American'' and inserting 
                ``Mexican-American''; and
                    (B) by striking ``Mariana'' and inserting 
                ``Marianian'';
            (26) in section 901(b)(2), by striking ``such part'' and 
        inserting ``such title'';
            (27) in section 922, by striking subsection (f) and 
        inserting the following:
    ``(f) Institutional Payments.--(1) The Secretary shall pay to the 
institution of higher education, for each individual awarded a 
fellowship under this part at such institution, an institutional 
allowance. Except as provided in paragraph (2), such allowance shall 
be--
            ``(A) $6,000 annually with respect to individuals who first 
        received fellowships under this part prior to academic year 
        1993-1994;
            ``(B) with respect to individuals who first receive 
        fellowships during or after academic year 1993-1994--
                    ``(i) $9,000 for the academic year 1993-1994;
                    ``(ii) for succeeding academic years, $9,000 
                adjusted annually thereafter in accordance with 
                inflation as determined by the Department of Labor's 
                Consumer Price Index for the previous calendar year.
    ``(2) The institutional allowance paid under paragraph (1) shall be 
reduced by the amount the institution charges and collects from a 
fellowship recipient for tuition and other expenses as part of the 
recipient's instructional program.'';
            (28) in the second sentence of section 923(b)(1), by 
        striking ``granting of such fellowships'' and all that follows 
        through ``set forth in this section,'' and inserting ``granting 
        of such fellowships for an additional period of study not to 
        exceed one 12-month period,'';
            (29) in section 923(b)(2), by striking out the second and 
        third sentences and inserting the following: ``Such period 
        shall not exceed a total of 3 years, consisting of not more 
        than 2 years of support for study or research, and not more 
        than 1 year of support for dissertation work provided that the 
        student has attained satisfactory progress prior to the 
        dissertation stage, except that the Secretary may provide by 
        regulation for the granting of such fellowships for an 
        additional period of study not to exceed one 12-month period, 
        under special circumstances which the Secretary determines 
        would most effectively serve the purposes of this part. The 
        Secretary shall make a determination to provide such 12-month 
        extension of an award to an individual fellowship recipient for 
        study or research upon review of an application for such 
        extension by the recipient. The institution shall provide 2 
        years of support for each student following the years of 
        Federal predissertation support under this part. Any student 
        receiving an award for graduate study leading to a doctoral 
        degree shall receive at least 1 year of supervised training in 
        instruction during his or her doctoral program.'';
            (30) in section 923(b), by adding at the end the following 
        new paragraph:
            ``(3) Continuation of awards under prior law.--
        Notwithstanding any other provision of law, in the case of an 
        individual who was awarded a multiyear fellowship under this 
        part before the date of enactment of the Higher Education 
        Amendments of 1992, awards to such individual for the remainder 
        of such fellowship may, at the discretion of the institution of 
        higher education attended by such individual, be subject to the 
        requirements of this subsection as in effect prior to such date 
        of enactment. The institution shall be required to exercise 
        such discretion at the time that its application to the 
        Secretary for a grant under this part, and the amount of any 
        such grant, are being considered by the Secretary.'';
            (31) in section 924, by adding at the end thereof the 
        following new sentence: ``Notwithstanding any other provision 
        of law, the Secretary may use funds appropriated pursuant to 
        this section for fiscal year 1994 to make continuation awards 
        under section 923(b)(3) to individuals who would have been 
        eligible for such awards in fiscal year 1993 if such section 
        had been in effect.'';
            (32) in section 931(a), by inserting after the first 
        sentence the following new sentence: ``These fellowships shall 
        be awarded to students intending to pursue a doctoral degree, 
        except that fellowships may be granted to students pursuing a 
        master's degree in those fields in which the master's degree is 
        commonly accepted as the appropriate degree for a tenured-track 
        faculty position in a baccalaureate degree-granting 
        institution.'';
            (33) in the third sentence of section 932(a)(1), by 
        striking ``doctoral'' and inserting ``graduate'';
            (34) in section 932(c), by striking ``doctoral'' and 
        inserting ``graduate'';
            (35) in section 933(b), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--(A) 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 under this part at such institution, an 
        institutional allowance. Except as provided in subparagraph 
        (B), such allowance shall be--
                    ``(i) $6,000 annually with respect to individuals 
                who first received fellowships under this part prior to 
                academic year 1993-1994;
                    ``(ii) with respect to individuals who first 
                receive fellowships during or after academic year 1993-
                1994--
                            ``(I) $9,000 for the academic year 1993-
                        1994;
                            ``(II) for succeeding academic years, 
                        $9,000 adjusted annually thereafter in 
                        accordance with inflation as determined by the 
                        Department of Labor's Consumer Price Index for 
                        the previous calendar year.
            ``(B) The institutional allowance paid under subparagraph 
        (A) shall be reduced by the amount the institution charges and 
        collects from a fellowship recipient for tuition and other 
        expenses as part of the recipient's instructional program.'';
            (36) in section 941, by striking ``the part'' and inserting 
        ``this part'';
            (37) in section 943(b), by striking ``foreign languages or 
        area studies'' and inserting ``foreign languages and area 
        studies'';
            (38) in section 945, by striking subsection (c) and 
        inserting the following:
    ``(c) Treatment of Institutional Payments.--An institution of 
higher education that makes institutional payments for tuition and fees 
on behalf of individuals supported by fellowships under this part in 
amounts that exceed the institutional payments made by the Secretary 
pursuant to section 946(a) may count such payments toward the amounts 
the institution is required to provide pursuant to section 
944(b)(2).'';
            (39) in section 946, by striking subsection (a) and 
        inserting the following:
    ``(f) Institutional Payments.--(1) 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 under 
this part at such institution, an institutional allowance. Except as 
provided in paragraph (2), such allowance shall be--
            ``(A) $6,000 annually with respect to individuals who first 
        received fellowships under this part prior to academic year 
        1993-1994;
            ``(B) with respect to individuals who first receive 
        fellowships during or after academic year 1993-1994--
                    ``(i) $9,000 for the academic year 1993-1994;
                    ``(ii) for succeeding academic years, $9,000 
                adjusted annually thereafter in accordance with 
                inflation as determined by the Department of Labor's 
                Consumer Price Index for the previous calendar year.
    ``(2) The institutional allowance paid under paragraph (1) shall be 
reduced by the amount the institution charges and collects from a 
fellowship recipient for tuition and other expenses as part of the 
recipient's instructional program.'';
            (40) in section 951(a), in the matter preceding paragraph 
        (1), by inserting ``Pacific Islanders,'' after ``Native 
        Americans,'';
            (41) in section 1004(a), by striking ``part'' and inserting 
        ``subpart'';
            (42) in section 1011(d), by striking ``part'' and inserting 
        ``subpart'';
            (43) in part D of title X, by redesignating section 1181 as 
        section 1081;
            (44) in section 1081(d) (as so redesignated) by inserting a 
        comma after ``this title)'' and after ``such institutions'';
            (45) in section 1142(d)(2), by inserting ``program'' after 
        ``literacy corps'';
            (46) in section 1201(a), by striking ``subpart 3 of part 
        H,'' and inserting ``subpart 2 of part H of title IV of this 
        Act,'';
            (47) by amending section 1204 to read as follows:

     ``treatment of territories and territorial student assistance

    ``Sec. 1204. (a) The Secretary is required to waive the eligibility 
criteria of any postsecondary education program administered by the 
Department where such criteria do not take into account the unique 
circumstances in Guam, the Virgin Islands, American Samoa, the Republic 
of Palau, the Commonwealth of the Northern Mariana Islands, and the 
freely associated states.
    ``(b) Notwithstanding any other provision of law, an institution of 
higher education that is located in any of the freely associated 
states, rather than a State, shall be eligible, if otherwise qualified, 
for assistance under chapter 1 of subpart 2 of part A of title IV of 
this Act.'';
            (48) in section 1205, in the section heading, by inserting 
        ``national advisory'' before ``committee'';
            (49) in section 1205(a), by inserting ``National Advisory'' 
        before ``Committee'' the first place it appears;
            (50) in paragraphs (1) and (6) of section 1205(c), by 
        inserting ``of title IV of this Act'' after ``part H'';
            (51) in section 1205(f), by striking ``Accreditation and 
        Institutional Eligibility'' and inserting ``Institutional 
        Quality and Integrity'';
            (52) in section 1209(f)(1), by striking ``the Act'' and 
        inserting ``this Act'';
            (53) in title XII, by redesignating section 1211 (as added 
        by section 6231 of the Omnibus Trade and Competitiveness Act of 
        1988) as section 1212; and
            (54) in section 1212(e)(2) (as so redesignated), by 
        inserting close quotation marks after ``facilities'' the first 
        place it appears.
    (j) Amendments to the 1992 Amendments.--The Higher Education 
Amendments of 1992 is amended--
            (1) in section 401(d)(2)(A), by inserting ``the first place 
        it appears'' before ``the following:'';
            (2) in section 425(d)(1)--
                    (A) by inserting ``the second sentence of'' after 
                ``(1) in''; and
                    (B) by striking ``in the second sentence'';
            (3) in section 425(d)(4)--
                    (A) by inserting ``the second sentence of'' after 
                ``(4) in''; and
                    (B) by striking ``in the second sentence'';
            (4) in section 426(c), by striking ``new subsections'' and 
        inserting ``new subsection'';
            (5) in section 432(a)(3), by striking ``427(a)(2)(C) and 
        428(b)(1)(M)'' and inserting ``427(a)(2)(C), 428(b)(1)(M), and 
        428B(d)(1)'';
            (6) in section 432(a)--
                    (A) by redesignating paragraphs (13), (14), and 
                (15), as paragraphs (14), (15), and (16), respectively; 
                and
                    (B) by inserting immediately after paragraph (12) 
                the following new paragraph:
            ``(13) that the changes made to subsections (a) and (c) of 
        section 435, as they relate to the elimination of vocational 
        schools from the definition of an eligible institution and to 
        the repeal of the definition of a vocational school, shall be 
        effective as of the effective date of final regulations 
        implementing section 481(e)(2)(A) of the Act;'';
            (7) in section 446, by striking subsection (c);
            (8) in section 465(a), by amending paragraph (1) to read as 
        follows:
            ``(1) in subparagraph (A), by striking `and such 
        determination' and all that follows through `such chapter 
        1';'';
            (9) in section 484, by inserting after subsection (h) the 
        following new subsection:
    ``(i) Effective Date.--The amendments made by subsection (g) with 
respect to the addition of subsection (n) shall be effective on and 
after December 1, 1987.'';
            (10) in section 486(a)(3), by striking ``section 1'' and 
        inserting ``section 103'';
            (11) in section 498--
                    (A) by redesignating paragraphs (3), (4), (5), (6), 
                and (7) as paragraphs (4), (5), (6), (7), and (8), 
                respectively;
                    (B) by inserting immediately after paragraph (2) 
                the following new paragraph:
            ``(3) the changes made to section 481(b) and (c), relating 
        to the references to an eligible program, shall be effective as 
        of the effective date of final regulations implementing section 
        481(e)(2)(A) of the Act;''; and
                    (C) by amending paragraph (4) (as redesignated by 
                subparagraph (A)) to read as follows:
            ``(4) section 481(e), as added by such amendments, relating 
        to the definition of an eligible program, shall be effective as 
        of the effective date of final regulations implementing 
        paragraph (2)(A) of such section;'';
            (12) in section 1409(b)(1), by striking ``the Asbestos 
        Hazard Emergency Response Act'' and inserting ``section 202 of 
        the Toxic Substances Control Act (15 U.S.C. 2642)'';
            (13) in section 1422(9), by striking ``has placed'' and 
        inserting ``have placed'';
            (14) in section 1442(c), by striking ``Chairman'' and 
        inserting ``Chairperson'';
            (15) in section 1541(g), by striking ``educational'' and 
        inserting ``education''; and
            (16) in section 1554(a)(1), by striking ``4'' and inserting 
        ``6''.
    (k) Amendment to the 1986 Amendment.--Section 1507(a)(12) of the 
Higher Education Amendments of 1986 is amended by striking the period 
and inserting a semicolon.
    (l) Accreditation Through Transfer of Credit.--(1) An institution 
of higher education which satisfied the requirements of section 
1201(a)(5)(B) of the Act prior to the enactment of the Higher Education 
Amendments of 1992, shall be considered to meet the requirements of 
section 1201(a)(5) of the Act if--
            (A) within 60 days after the date of enactment of the 
        Higher Education Technical Amendments of 1993, such institution 
        has applied for accreditation by a nationally recognized 
        accrediting agency or association which the Secretary 
        determines, pursuant to subpart 2 of part H of title IV of the 
        Act, to be a reliable authority as to the quality of education 
        or training offered; and
            (B) within 2 years of the date of enactment of the Higher 
        Education Technical Amendments of 1993, such institution is 
        accredited by such an accrediting agency or association or, if 
        not so accredited, has been granted preaccreditation status by 
        such an agency or association that has been recognized by the 
        Secretary for the granting of preaccreditation status, and the 
        Secretary has determined that there is satisfactory assurance 
        that the institution will meet the accreditation standards of 
        such an agency or association within a reasonable time.
    (2) Paragraph (1) of this subsection shall be effective July 23, 
1992.

                                 <all>

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