[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1882 Reported in Senate (RS)]
Calendar No. 354
105th CONGRESS
2d Session
S. 1882
[Report No. 105-181]
_______________________________________________________________________
A BILL
To reauthorize the Higher Education Act of 1965, and for other
purposes.
_______________________________________________________________________
May 4, 1998
Reported with an amendment
Calendar No. 354
105th CONGRESS
2d Session
S. 1882
[Report No. 105-181]
To reauthorize the Higher Education Act of 1965, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 30, 1998
Mr. Jeffords (for himself, Mr. Kennedy, Mr. Coats, Mr. Dodd, Ms.
Collins, and Mr. DeWine) introduced the following bill; which was read
twice and referred to the Committee on Labor and Human Resources
May 4, 1998
Reported by Mr. Jeffords, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To reauthorize the Higher Education Act of 1965, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Higher Education Amendments
of 1998''.</DELETED>
<DELETED>SEC. 2. REFERENCES.</DELETED>
<DELETED> Except as otherwise expressly provided, whenever in this
Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.).</DELETED>
<DELETED>TITLE I--GENERAL PROVISIONS</DELETED>
<DELETED>SEC. 101. GENERAL PROVISIONS.</DELETED>
<DELETED> (a) Repeal; Transfer and Redesignation.--The Act (20
U.S.C. 1001 et seq.) is amended--</DELETED>
<DELETED> (1) by repealing title I (20 U.S.C. 1001 et
seq.);</DELETED>
<DELETED> (2) by repealing sections 1203, 1206, 1211, and
1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f);</DELETED>
<DELETED> (3) by striking the heading for title XII (20
U.S.C. 1141 et seq.);</DELETED>
<DELETED> (4) by inserting before title III (20 U.S.C. 1051
et seq.) the following:</DELETED>
<DELETED>``TITLE I--GENERAL PROVISIONS'';</DELETED>
<DELETED> (5) by transferring sections 1201, 1202, 1204 (as
renumbered by Public Law 90-575), 1204 (as added by Public Law
96-374), 1205, 1207, 1208, 1209, 1210, and 1213 (20 U.S.C.
1141, 1142, 1144, 1144a, 1145, 1145b, 1145c, 1145d, 1145d-1,
and 1145g) to follow the heading for title I (as inserted by
paragraph (4)); and</DELETED>
<DELETED> (6) by redesignating sections 1201, 1202, 1204 (as
renumbered by Public Law 90-575), 1204 (as added by Public Law
96-374), 1205, 1207, 1208, 1209, 1210, and 1213 as sections
101, 102, 103, 104, 105, 106, 107, 108, 109, and 110,
respectively.</DELETED>
<DELETED>SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.</DELETED>
<DELETED> Section 103 (as redesignated by section 101(a)(6)) (20
U.S.C. 1144) is amended by striking ``(b)''.</DELETED>
<DELETED>SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY
AND INTEGRITY.</DELETED>
<DELETED> Section 105 (as redesignated by section 101(a)(6)) (20
U.S.C. 1145) is amended--</DELETED>
<DELETED> (1) by striking the last sentence of subsection
(a);</DELETED>
<DELETED> (2) by redesignating subsections (c) through (f)
as subsections (d) through (g), respectively;</DELETED>
<DELETED> (3) by inserting after subsection (b) the
following:</DELETED>
<DELETED> ``(c) Public Notice.--The Secretary shall--</DELETED>
<DELETED> ``(1) annually publish in the Federal Register a
list containing the name of each member of the Committee and
the date of the expiration of the term of office of the member;
and</DELETED>
<DELETED> ``(2) publicly solicit nominations for each vacant
position or expiring term of office on the
Committee.'';</DELETED>
<DELETED> (4) in subsection (d) (as redesignated by
paragraph (2))--</DELETED>
<DELETED> (A) by striking paragraph (6);
and</DELETED>
<DELETED> (B) by redesignating paragraphs (7) and
(8) as paragraphs (6) and (7), respectively;
and</DELETED>
<DELETED> (5) in subsection (g) (as redesignated by
paragraph (2)), by striking ``1998'' and inserting
``2004''.</DELETED>
<DELETED>SEC. 104. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF
PAYMENTS.</DELETED>
<DELETED> Title I (20 U.S.C. 1001 et seq.) is amended by adding
after section 110 (as redesignated by section 101(a)(6)) the
following:</DELETED>
<DELETED>``SEC. 111. PRIOR RIGHTS AND OBLIGATIONS.</DELETED>
<DELETED> ``(a) Authorization of Appropriations.--</DELETED>
<DELETED> ``(1) Pre-1987 parts c and d of title vii.--There
are authorized to be appropriated such sums as may be necessary
for fiscal year 1999 and for each of the 4 succeeding fiscal
years to pay obligations incurred prior to 1987 under parts C
and D of title VII, as such parts were in effect before the
effective date of the Higher Education Amendments of
1992.</DELETED>
<DELETED> ``(2) Post-1992 and pre-1998 part c of title
vii.--There are authorized to be appropriated such sums as may
be necessary for fiscal year 1999 and for each of the 4 succeeding
fiscal years to pay obligations incurred prior to the date of enactment
of the Higher Education Amendments of 1998 under part C of title VII,
as such part was in effect during the period--</DELETED>
<DELETED> ``(A) after the effective date of the
Higher Education Amendments of 1992; and</DELETED>
<DELETED> ``(B) prior to the date of enactment of
the Higher Education Amendments of 1998.</DELETED>
<DELETED> ``(b) Legal Responsibilities.--</DELETED>
<DELETED> ``(1) Pre-1987 title vii.--All entities with
continuing obligations incurred under parts A, B, C, and D of
title VII, as such parts were in effect before the effective
date of the Higher Education Amendments of 1992, shall be
subject to the requirements of such part as in effect before
the effective date of the Higher Education Amendments of
1992.</DELETED>
<DELETED> ``(2) Post-1992 and pre-1998 part c of title
vii.--All entities with continuing obligations incurred under
part C of title VII, as such part was in effect during the
period--</DELETED>
<DELETED> ``(A) after the effective date of the
Higher Education Amendments of 1992; and</DELETED>
<DELETED> ``(B) prior to the date of enactment of
the Higher Education Amendments of 1998,</DELETED>
<DELETED>shall be subject to the requirements of such part as
such part was in effect during such period.</DELETED>
<DELETED>``SEC. 112. RECOVERY OF PAYMENTS.</DELETED>
<DELETED> ``(a) Public Benefit.--Congress declares that, if a
facility constructed with the aid of a grant under part A of title VII
as such part A was in effect prior to the date of enactment of the
Higher Education Amendments of 1998, or part B of such title as such
part B was in effect prior to the date of enactment of the Higher
Education Amendments of 1992, is used as an academic facility for 20
years following completion of such construction, the public benefit
accruing to the United States will equal in value the amount of the
grant. The period of 20 years after completion of such construction
shall therefore be deemed to be the period of Federal interest in such
facility for the purposes of such title as so in effect.</DELETED>
<DELETED> ``(b) Recovery Upon Cessation of Public Benefit.--If,
within 20 years after completion of construction of an academic
facility which has been constructed, in part with a grant under part A
of title VII as such part A was in effect prior to the date of
enactment of the Higher Education Amendments of 1998, or part B of
title VII as such part B was in effect prior to the date of enactment
of the Higher Education Amendments of 1992--</DELETED>
<DELETED> ``(1) the applicant under such parts as so in
effect (or the applicant's successor in title or possession)
ceases or fails to be a public or nonprofit institution,
or</DELETED>
<DELETED> ``(2) the facility ceases to be used as an
academic facility, or the facility is used as a facility
excluded from the term `academic facility' (as such term was
defined under title VII, as so in effect), unless the Secretary
determines that there is good cause for releasing the
institution from its obligation,</DELETED>
<DELETED>the United States shall be entitled to recover from such
applicant (or successor) an amount which bears to the value of the
facility at that time (or so much thereof as constituted an approved
project or projects) the same ratio as the amount of Federal grant bore
to the cost of the facility financed with the aid of such grant. The
value shall be determined by agreement of the parties or by action
brought in the United States district court for the district in which
such facility is situated.</DELETED>
<DELETED> ``(c) Prohibition on Use for Religion.--Notwithstanding
the provisions of subsections (a) and (b), no project assisted with
funds under title VII (as in effect prior to the date of enactment of
the Higher Education Amendments of 1998) shall ever be used for
religious worship or a sectarian activity or for a school or department
of divinity.''.</DELETED>
<DELETED>SEC. 105. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>
<DELETED> (a) Conforming Amendments Correcting References to Section
1201.--</DELETED>
<DELETED> (1) Agriculture.--</DELETED>
<DELETED> (A) Student internship programs.--Section
922 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 2279c) is amended--</DELETED>
<DELETED> (i) in subsection (a)(1)(B)--
</DELETED>
<DELETED> (I) by striking ``1201''
and inserting ``101''; and</DELETED>
<DELETED> (II) by striking ``(20
U.S.C. 1141)''; and</DELETED>
<DELETED> (ii) in subsection (b)(1)--
</DELETED>
<DELETED> (I) by striking ``1201''
and inserting ``101''; and</DELETED>
<DELETED> (II) by striking ``(20
U.S.C. 1141)''.</DELETED>
<DELETED> (B) Agricultural sciences education.--
Section 1417(h)(1)(A) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3152(h)(1)(A)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (2) Armed forces.--</DELETED>
<DELETED> (A) Science and mathematics education
improvement program.--Section 2193(c)(1) of title 10,
United States Code, is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (B) Support of science, mathematics, and
engineering education.--Section 2199(2) of title 10,
United States Code, is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (C) Allowable costs under defense
contracts.--Section 841(c)(2) of the National Defense
Authorization Act for fiscal year 1994 (10 U.S.C. 2324
note) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (D) Environmental restoration
institutional grants for training dislocated defense
workers and young adults.--Section 1333(i)(3) of the
National Defense Authorization Act for fiscal year 1994
(10 U.S.C. 2701 note) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (E) Environmental education opportunities
program.--Section 1334(k)(3) of the National Defense
Authorization Act for fiscal year 1994 (10 U.S.C. 2701
note) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (F) Environmental scholarship and
fellowship programs.--Section 4451(b)(1) of the
National Defense Authorization Act for 1993 (10 U.S.C.
2701 note) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (3) Application of antitrust laws to award of
need-based educational aid.--Section 568(c)(3) of the Improving
America's Schools Act of 1994 (15 U.S.C. 1 note) is amended--
</DELETED>
<DELETED> (A) by striking ``1201(a)'' and inserting
``101(a)''; and</DELETED>
<DELETED> (B) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (4) Restrictions on former officers, employees,
and elected officials of the executive and legislative
branches.--Section 207(j)(2)(B) of title 18, United States
Code, is amended by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (5) Education.--</DELETED>
<DELETED> (A) Higher education amendments of 1992.--
Section 1(c) of the Higher Education Amendments of 1992
(20 U.S.C. 1001 note) is amended by striking ``1201''
and inserting ``101''.</DELETED>
<DELETED> (B) Part f definitions.--Section 481 of
the Higher Education Act of 1965 (20 U.S.C. 1088) is
amended--</DELETED>
<DELETED> (i) in subsection (a)--</DELETED>
<DELETED> (I) in the matter
preceding paragraph (1)(A), by striking
``1201(a)'' and inserting
``101(a)'';</DELETED>
<DELETED> (II) in paragraph (1)(C),
by striking ``1201(a)'' and inserting
``101(a)'';</DELETED>
<DELETED> (III) in the first
sentence of the matter preceding clause
(i) of paragraph (2)(A), by striking
``1201(a)'' and inserting ``101(a)'';
and</DELETED>
<DELETED> (IV) in the matter
following paragraph (2)(B)(ii), by
striking ``1201(a)'' and inserting
``101(a)'';</DELETED>
<DELETED> (ii) in subsection (b)--</DELETED>
<DELETED> (I) in the first
sentence--</DELETED>
<DELETED> (aa) in paragraph
(2), by striking ``1201(a)''
and inserting ``101(a)'';
and</DELETED>
<DELETED> (bb) in paragraph
(3), by striking ``1201(a)''
and inserting ``101(a)'';
and</DELETED>
<DELETED> (II) in the second
sentence, by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (iii) in subsection (c)--
</DELETED>
<DELETED> (I) in the first sentence,
by striking ``1201(a)'' and inserting
``101(a)''; and</DELETED>
<DELETED> (II) in the second
sentence, by striking ``1201(a)'' and
inserting ``101(a)''.</DELETED>
<DELETED> (C) Treatment of branches.--Section
498(j)(2) of the Higher Education Act of 1965 (20
U.S.C. 1099c(j)(2)) is amended by striking
``1201(a)(2)'' and inserting ``101(a)(2)''.</DELETED>
<DELETED> (D) Small state teaching initiative.--
Section 591(d)(2) of the Higher Education Act of 1965
(20 U.S.C. 1115(d)(2)) is amended by striking
``1201(a)'' and inserting ``101(a)''.</DELETED>
<DELETED> (E) International education programs.--
Section 631(a)(8) of the Higher Education Act of 1965
(20 U.S.C. 1132(a)(8)) is amended by striking
``1201(a)'' each place it appears and inserting
``101(a)''.</DELETED>
<DELETED> (F) Dwight d. eisenhower leadership
program.--Section 1081(d) of the Higher Education Act
of 1965 (20 U.S.C. 1135f(d)) is amended by striking
``1201'' and inserting ``101''.</DELETED>
<DELETED> (G) Disclosure requirements.--Section
429(d)(2)(B)(ii) of the General Education Provisions
Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is amended by
striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (H) Harry s. truman scholarships.--Section
3(4) of the Harry S. Truman Memorial Scholarship Act
(20 U.S.C. 2002(4)) is amended by striking ``1201(a)''
and inserting ``101(a)''.</DELETED>
<DELETED> (I) Tech-prep education.--Section
347(2)(A) of the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2394e(2)(A)) is
amended by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (J) Education for economic security.--
Section 3(6) of the Education for Economic Security Act
(20 U.S.C. 3902(6)) is amended by striking ``1201(a)''
and inserting ``101(a)''.</DELETED>
<DELETED> (K) James madison memorial fellowships.--
Section 815 of the James Madison Memorial Fellowship
Act (20 U.S.C. 4514) is amended--</DELETED>
<DELETED> (i) in paragraph (3), by striking
``1201(a)'' and inserting ``101(a)'';
and</DELETED>
<DELETED> (ii) in paragraph (4), by striking
``1201(d) of the Higher Education Act of 1965''
and inserting ``14101 of the Elementary and
Secondary Education Act of 1965''.</DELETED>
<DELETED> (L) Barry goldwater scholarships.--Section
1403(4) of the Barry Goldwater Scholarship and
Excellence in Education Act (20 U.S.C. 4702(4)) is
amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (M) Morris k. udall scholarships.--Section
4(6) of the Morris K. Udall Scholarship and Excellence
in National Environmental and Native American Public
Policy Act of 1992 (20 U.S.C. 5602(6)) is amended by
striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (N) Bilingual education, and language
enhancement and acquisition.--Section 7501(4) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7601(4)) is amended by striking ``1201(a)'' and
inserting ``101(a)''.</DELETED>
<DELETED> (O) General definitions.--Section
14101(17) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 8801(17)) is amended by striking
``1201(a)'' and inserting ``101(a)''.</DELETED>
<DELETED> (P) National education statistics.--
Section 402(c)(3) of the National Education Statistics
Act of 1994 (20 U.S.C. 9001(c)(3)) is amended by
striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (6) Foreign relations.--</DELETED>
<DELETED> (A) Environment and sustainable
development exchange program.--Section 240(d) of the
Foreign Relations Authorization Act, Fiscal Years 1994
and 1995 (22 U.S.C. 2452 note) is amended by striking
``1201(a)'' and inserting ``101(a)''.</DELETED>
<DELETED> (B) Samantha smith memorial exchange
program.--Section 112(a)(8) of the Mutual Educational
and Cultural Exchange Act of 1961 (22 U.S.C.
2460(a)(8)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (C) Soviet-eastern european training.--
Section 803(1) of the Soviet-Eastern European Research
and Training Act of 1983 (22 U.S.C. 4502(1)) is amended
by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (D) Developing country scholarships.--
Section 603(d) of the Foreign Relations Authorization
Act, Fiscal Years 1986 and 1987 (22 U.S.C. 4703(d)) is
amended by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (7) Indians.--</DELETED>
<DELETED> (A) Snyder act.--The last paragraph of
section 410 of the Act entitled ``An Act authorizing
appropriations and expenditures for the administration
of Indian Affairs, and for other purposes'', approved
November 2, 1921 (25 U.S.C. 13) (commonly known as the
Snyder Act) is amended by striking ``1201'' and
inserting ``101''.</DELETED>
<DELETED> (B) Tribally controlled community college
assistance.--Section 2(a)(5) of the Tribally Controlled
Community College Assistance Act (25 U.S.C. 1801(a)(5))
is amended by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (C) Construction of new facilities.--
Section 113(b)(2) of the Tribally Controlled Community
College Assistance Act (25 U.S.C. 1813(b)(2)) is
amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (D) American indian teacher training.--
Section 1371(a)(1)(B) of the Higher Education
Amendments of 1992 (25 U.S.C. 3371(a)(1)(B)) is amended
by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (8) Labor.--</DELETED>
<DELETED> (A) Rehabilitation definitions.--Section
7(32) of the Rehabilitation Act of 1973 (29 U.S.C.
706(32)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (B) State plans.--Section
101(a)(7)(A)(iv)(II) of the Rehabilitation Act of 1973
(29 U.S.C. 721(a)(7)(A)(iv)(II)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (C) JTPA definitions.--Section 4(12) of
the Job Training Partnership Act (29 U.S.C. 1503(12))
is amended by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (D) Tuition charges.--Section 141(d)(3)(B)
of the Job Training Partnership Act (29 U.S.C.
1551(d)(3)(B)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (9) Surface mining control.--Section 701(32) of
the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1291(32)) is amended by striking ``1201(a)'' and
inserting ``101(a)''.</DELETED>
<DELETED> (10) Pollution prevention.--Section 112(a)(1) of
the Federal Water Pollution Control Act (33 U.S.C. 1262(a)(1))
is amended by striking ``1201'' and inserting
``101''.</DELETED>
<DELETED> (11) Postal service.--Section 3626(b)(3) of title
39, United States Code, is amended--</DELETED>
<DELETED> (A) by striking ``1201(a)'' and inserting
``101(a)''; and</DELETED>
<DELETED> (B) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (12) Block grants to states.--Section
404(h)(5)(A)(i) of the Social Security Act (42 U.S.C.
604(h)(5)(A)(i)) is amended--</DELETED>
<DELETED> (A) by striking ``1201(a)'' and inserting
``101(a)''; and</DELETED>
<DELETED> (B) by striking ``(20 U.S.C. 1088(a)(1) or
1141(a))''.</DELETED>
<DELETED> (13) Public health and welfare.--</DELETED>
<DELETED> (A) Scientific and technical education.--
Section 3(g) of the Scientific and Advanced-Technology
Act of 1992 (42 U.S.C. 1862i(g)) is amended--</DELETED>
<DELETED> (i) in paragraph (2)--</DELETED>
<DELETED> (I) by striking
``1201(a)'' and inserting ``101(a)'';
and</DELETED>
<DELETED> (II) by striking ``(20
U.S.C. 1141(a))''; and</DELETED>
<DELETED> (ii) in paragraph (3)--</DELETED>
<DELETED> (I) by striking
``1201(a)'' and inserting ``101(a)'';
and</DELETED>
<DELETED> (II) by striking ``(20
U.S.C. 1141(a))''.</DELETED>
<DELETED> (B) Older americans.--Section 102(32) of
the Older Americans Act of 1965 (42 U.S.C. 3002(32)) is
amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (C) Justice system improvement.--Section
901(17) of the Omnibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3791(17)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (D) Energy technology commercialization
services program.--Section 362(f)(5)(A) of the Energy
Policy and Conservation Act (42 U.S.C. 6322(f)(5)(A))
is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (E) Environmental restoration and waste
management.--Section 3132(b)(1) of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (42
U.S.C. 7274e(b)(1)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (F) Head start.--Section 649(c)(3) of the
Head Start Act (42 U.S.C. 9844(c)(3)) is amended--
</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (G) State dependent care development
grants.--Section 670G(5) of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9877(5))
is amended by striking ``1201(a)'' and inserting
``101(a)''.</DELETED>
<DELETED> (H) Instructional activities for low-
income youth.--The matter preceding subparagraph (A) of
section 682(b)(1) of the Community Services Block Grant
Act (42 U.S.C. 9910c(b)(1)) is amended by striking
``1201(a)'' and inserting ``101(a)''.</DELETED>
<DELETED> (I) Drug abuse education.--Section 3601(7)
of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7))
is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (J) National and community service.--
Section 101(13) of the National and Community Service
Act of 1990 (42 U.S.C. 12511(13)) is amended--
</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (K) Civilian community corps.--Section
166(6) of the National and Community Service Act of
1990 (42 U.S.C. 12626(6)) is amended--</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (L) Community schools youth services and
supervision grant program.--The definition of public
school in section 30401(b) of the Community Schools
Youth Services and Supervision Grant Program Act of
1994 (42 U.S.C. 13791(b)) is amended--</DELETED>
<DELETED> (i) by striking ``1201'' each
place it appears and inserting ``101'';
and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(i))''.</DELETED>
<DELETED> (M) Police corps.--The definition of
institution of higher education in section 200103 of
the Police Corps Act (42 U.S.C. 14092) is amended--
</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (N) Law enforcement scholarship program.--
The definition of institution of higher education in
section 200202 of the Law Enforcement Scholarship and
Recruitment Act (42 U.S.C. 14111) is amended--
</DELETED>
<DELETED> (i) by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (ii) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (14) Telecommunications.--Section 223(h)(4) of the
Telecommunications Act of 1934 (47 U.S.C. 223(h)(4)) is
amended--</DELETED>
<DELETED> (A) by striking ``1201'' and inserting
``101''; and</DELETED>
<DELETED> (B) by striking ``(20 U.S.C.
1141)''.</DELETED>
<DELETED> (15) War and national defense.--Section 808(3) of
the David L. Boren National Security Education Act of 1991 (50
U.S.C. 1908(3)) is amended--</DELETED>
<DELETED> (A) by striking ``1201(a)'' and inserting
``101(a)''; and</DELETED>
<DELETED> (B) by striking ``(20 U.S.C.
1141(a))''.</DELETED>
<DELETED> (b) Cross References.--The Act (20 U.S.C. 1001 et seq.) is
amended--</DELETED>
<DELETED> (1) in section 402A(c)(2) (20 U.S.C. 1070a-
11(c)(2)), by striking ``1210'' and inserting
``110'';</DELETED>
<DELETED> (2) in section 481 (20 U.S.C. 1088)--</DELETED>
<DELETED> (A) in subsection (a)--</DELETED>
<DELETED> (i) in paragraph (1)--</DELETED>
<DELETED> (I) in the matter
preceding subparagraph (A), by striking
``1201(a)'' and inserting ``101(a)'';
and</DELETED>
<DELETED> (II) in subparagraph (C),
by striking ``1201(a)'' and inserting
``101(a)''; and</DELETED>
<DELETED> (ii) in paragraph (2)--</DELETED>
<DELETED> (I) in the matter
preceding clause (i) of subparagraph
(A), by striking ``1201(a)'' and
inserting ``101(a)''; and</DELETED>
<DELETED> (II) in the matter
following clause (ii) of subparagraph
(B), by striking ``1201(a)'' and
inserting ``101(a)'';</DELETED>
<DELETED> (B) in subsection (b), by striking
``1201(a)'' each place the term appears and inserting
``101(a)''; and</DELETED>
<DELETED> (C) in subsection (c), by striking
``1201(a)'' each place the term appears and inserting
``101(a)'';</DELETED>
<DELETED> (3) in section 485(f)(1)(I) (20 U.S.C.
1092(f)(1)(I)), by striking ``1213'' and inserting
``111'';</DELETED>
<DELETED> (4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)),
by striking ``1201(a)(2)'' and inserting
``101(a)(2)'';</DELETED>
<DELETED> (5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)),
by striking ``1201(a)'' and inserting ``101(a)'';</DELETED>
<DELETED> (6) in section 631(a)(8) (20 U.S.C. 1132(a)(8))--
</DELETED>
<DELETED> (A) by striking ``section 1201(a)'' each
place the term appears and inserting ``section
101(a)''; and</DELETED>
<DELETED> (B) by striking ``of 1201(a)'' and
inserting ``of section 101(a)''; and</DELETED>
<DELETED> (7) in section 1081(d) (20 U.S.C. 1135f(d)), by
striking ``1201'' and inserting ``101(a)''.</DELETED>
<DELETED>TITLE II--IMPROVING TEACHER QUALITY</DELETED>
<DELETED>SEC. 201. IMPROVING TEACHER QUALITY.</DELETED>
<DELETED> The Act (20 U.S.C. 1001) is amended by inserting after
section 112 (as added by section 104) the following:</DELETED>
<DELETED>``TITLE II--IMPROVING TEACHER QUALITY</DELETED>
<DELETED>``SEC. 201. PURPOSES.</DELETED>
<DELETED> ``The purpose of this title is to--</DELETED>
<DELETED> ``(1) improve student achievement;</DELETED>
<DELETED> ``(2) improve the quality of the current and
future teaching force by improving the preparation of
prospective teachers and enhancing professional development
activities; and</DELETED>
<DELETED> ``(3) hold institutions of higher education
accountable for preparing teachers who have the necessary
teaching skills and are highly competent in the academic
content areas in which the teachers plan to teach, including
training in the effective uses of technologies in the
classroom.</DELETED>
<DELETED>``PART A--TEACHER QUALITY</DELETED>
<DELETED>``Subpart 1--Teacher Quality Enhancement Grants</DELETED>
<DELETED>``SEC. 211. GRANTS AUTHORIZED.</DELETED>
<DELETED> ``(a) In General.--The Secretary is authorized to award
grants to States to enable the States to carry out the activities
described in section 212. Each grant may be awarded for a period of not
more than 5 years.</DELETED>
<DELETED> ``(b) State Designation.--</DELETED>
<DELETED> ``(1) In general.--A State desiring a grant under
this subpart shall, consistent with State law, designate the
chief individual or entity in the State responsible for the
State supervision of education, to administer the activities
assisted under this subpart.</DELETED>
<DELETED> ``(2) Consultation.--The individual or entity
designated under paragraph (1) shall consult with the Governor,
State board of education, or State educational agency, as
appropriate.</DELETED>
<DELETED> ``(3) Construction.--Nothing in this subpart shall
be construed to negate or supersede the legal authority under
State law of any State agency, State entity, or State public
official over programs that are under the jurisdiction of the
agency, entity, or official.</DELETED>
<DELETED> ``(c) Matching Requirement.--Each State receiving a grant
under this subpart shall provide, from non-Federal sources, an amount
equal to </DELETED>\<DELETED>1/2</DELETED>\ <DELETED>of the amount of
the grant, in cash or in kind, to carry out the activities supported
through the grant.</DELETED>
<DELETED>``SEC. 212. USE OF FUNDS.</DELETED>
<DELETED> ``A State that receives a grant under this subpart shall
use the grant funds to reform teacher preparation requirements, and to
ensure that current and future teachers possess the necessary teaching
skills and academic content knowledge in the subject areas in which the
teachers are assigned to teach, by carrying out 1 or more of the
following activities:</DELETED>
<DELETED> ``(1) Reforms.--Implementing reforms that hold
institutions of higher education with teacher preparation
programs accountable for preparing teachers who are highly
competent in the academic content areas in which the teachers
plan to teach, which may include the use of rigorous subject
matter competency tests and the requirement that a teacher have
an academic major in the subject area, or related discipline,
in which the teacher plans to teach.</DELETED>
<DELETED> ``(2) Certification or licensure requirements.--
Reforming teacher certification or licensure requirements to
ensure that new teachers have the necessary teaching skills and
academic content knowledge in the subject areas in which
teachers are assigned to teach.</DELETED>
<DELETED> ``(3) Alternatives to traditional preparation for
teaching.--Providing prospective teachers alternatives to
traditional preparation for teaching through programs at
colleges of arts and sciences or at nonprofit
organizations.</DELETED>
<DELETED> ``(4) Alternative routes.--Funding programs that
establish, expand, or improve alternative routes to State
certification for highly qualified individuals from other
occupations and recent college graduates with records of
academic distinction, including support during the initial
teaching experience.</DELETED>
<DELETED> ``(5) Recruitment; pay; removal.--Developing and
implementing effective mechanisms to ensure that schools are
able to effectively recruit highly qualified teachers, to
financially reward those teachers and principals whose students
have made significant progress toward high academic
performance, such as through performance-based compensation
systems and access to ongoing professional development
opportunities for teachers and administrators, and to remove
teachers who are not qualified.</DELETED>
<DELETED> ``(6) Innovative efforts.--Development and
implementation of innovative efforts aimed at reducing the
shortage of highly qualified teachers in high poverty urban and
rural areas, that may include the recruitment of highly
qualified individuals from other occupations through
alternative certification programs.</DELETED>
<DELETED> ``(7) Social promotion.--Development and
implementation of efforts to address the problem of social
promotion and to prepare teachers to effectively address the
issues raised by ending the practice of social
promotion.</DELETED>
<DELETED>``SEC. 213. COMPETITIVE AWARDS.</DELETED>
<DELETED> ``(a) Annual Awards; Competitive Basis.--The Secretary
shall award grants under this subpart annually and on a competitive
basis.</DELETED>
<DELETED> ``(b) Peer Review Panel.--The Secretary shall provide the
applications submitted by States under section 214 to a peer review
panel for evaluation. With respect to each application, the peer review
panel shall initially recommend the application for funding or for
disapproval.</DELETED>
<DELETED> ``(c) Priority.--In recommending applications for funding
to the Secretary, the panel shall give priority to applications from
States that describe activities that--</DELETED>
<DELETED> ``(1) include innovative reforms to hold
institutions of higher education with teacher preparation
programs accountable for preparing teachers who are highly
competent in the academic content areas in which the teachers
plan to teach; and</DELETED>
<DELETED> ``(2) involve the development of innovative
efforts aimed at reducing the shortage of highly qualified
teachers in high poverty urban and rural areas.</DELETED>
<DELETED>``SEC. 214. APPLICATIONS.</DELETED>
<DELETED> ``(a) In General.--Each State desiring a grant under this
subpart shall submit an application to the Secretary at such time, in
such manner and accompanied by such information as the Secretary may
require.</DELETED>
<DELETED> ``(b) Content of Applications.--Such application shall
include a description of how the State intends to use funds provided
under this subpart.</DELETED>
<DELETED>``Subpart 2--Teacher Training Partnerships Grants</DELETED>
<DELETED>``SEC. 221. GRANTS AUTHORIZED.</DELETED>
<DELETED> ``(a) In General.--The Secretary is authorized to award
grants to teacher training partnerships to enable the partnerships to
carry out the activities described in section 222. Each grant may be
awarded for a period of not more than 5 years.</DELETED>
<DELETED> ``(b) Teacher Training Partnerships.--For the purpose of
this part the term `teacher training partnership' means a partnership
that--</DELETED>
<DELETED> ``(1) shall include a school of arts and sciences,
a school or program of education, a local educational agency,
and a kindergarten through grade 12 school; and</DELETED>
<DELETED> ``(2) may include a State educational agency, a
pre-kindergarten program, a nonprofit group, a business, or a
teacher organization.</DELETED>
<DELETED> ``(c) Priority.--</DELETED>
<DELETED> ``(1) In general.--In awarding grants under this
subpart the Secretary shall give priority to partnerships
that--</DELETED>
<DELETED> ``(A) involve businesses; or</DELETED>
<DELETED> ``(B) include a high need local
educational agency, elementary school or secondary
school.</DELETED>
<DELETED> ``(2) High need.--A local educational agency,
elementary school or secondary school shall be considered high
need for purposes of paragraph (1)(B) if the agency or school
serves an area within a State in which there is--</DELETED>
<DELETED> ``(A) a large number of individuals from
families with incomes below the poverty line;</DELETED>
<DELETED> ``(B) a high percentage of teachers not
teaching in the content area in which the teachers were
trained to teach; or</DELETED>
<DELETED> ``(C) a high teacher turnover.</DELETED>
<DELETED> ``(d) Consideration.--In awarding grants under this
subpart the Secretary will take into consideration--</DELETED>
<DELETED> ``(1) providing an equitable geographic
distribution of the grants throughout the United States;
and</DELETED>
<DELETED> ``(2) the proposed project's potential for
creating improvement and positive change.</DELETED>
<DELETED> ``(e) Matching Funds.--Each partnership receiving a grant
under this subpart shall provide, from sources other than this subpart,
an amount equal to 25 percent of the grant in the first year, 35
percent in the second such year, and 50 percent in each succeeding such
year, of the amount of the grant, in cash or in kind, to carry out the
activities supported by the grant.</DELETED>
<DELETED> ``(f) One-Time Award.--A partnership may receive a grant
under this section only once.</DELETED>
<DELETED>``SEC. 222. USE OF FUNDS.</DELETED>
<DELETED> ``(a) In General.--Grant funds under this part shall be
used to--</DELETED>
<DELETED> ``(1) coordinate with the activities of the
Governor, State board of education, and State educational
agency, as appropriate;</DELETED>
<DELETED> ``(2) provide sustained and high quality
preservice clinical experiences including the mentoring of
prospective teachers by veteran teachers;</DELETED>
<DELETED> ``(3) work with a school of arts and sciences to
provide increased academic study in a proposed teaching
specialty area, through activities such as--</DELETED>
<DELETED> ``(A) restructuring curriculum;</DELETED>
<DELETED> ``(B) changing core course
requirements;</DELETED>
<DELETED> ``(C) increasing liberal arts
focus;</DELETED>
<DELETED> ``(D) providing preparation for board
certification; and</DELETED>
<DELETED> ``(E) assessing and improving alternative
certification, including mentoring and induction
support;</DELETED>
<DELETED> ``(4) substantially increasing interaction and 2-
way collaboration between--</DELETED>
<DELETED> ``(A) faculty at institutions of higher
education; and</DELETED>
<DELETED> ``(B) new and experienced teachers,
principals, and other administrators at elementary
schools or secondary schools;</DELETED>
<DELETED> ``(5) prepare teachers to use technology
effectively in the classroom;</DELETED>
<DELETED> ``(6) integrate reliable research-based teaching
methods into the curriculum;</DELETED>
<DELETED> ``(7) broadly disseminate information on effective
practices used by the partnership; and</DELETED>
<DELETED> ``(8) provide support, including preparation time,
for interaction between faculty at an institution of higher
education and classroom teachers.</DELETED>
<DELETED> ``(b) Special Rule.--No individual member of a partnership
shall retain more than 50 percent of the funds made available to the
partnership under this subpart.</DELETED>
<DELETED>``SEC. 223. APPLICATIONS.</DELETED>
<DELETED> ``Each teacher training partnership desiring a grant under
this subpart shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary
may require. Each such application shall--</DELETED>
<DELETED> ``(1) describe the composition of the partnership
and the involvement of each partner in the development of the
application;</DELETED>
<DELETED> ``(2) contain a needs assessment that includes an
analysis of the needs of all the partners with respect to
teaching and learning;</DELETED>
<DELETED> ``(3) contain a resource assessment that
includes--</DELETED>
<DELETED> ``(A) an analysis of resources available
to the partnership;</DELETED>
<DELETED> ``(B) a description of the intended use of
the grant funds;</DELETED>
<DELETED> ``(C) a description of how the partnership
will coordinate with other teacher training or
professional development programs, including Federal,
State, local, private, and other programs;</DELETED>
<DELETED> ``(D) a description of how the activities
assisted under this subpart are consistent with
educational reform activities that promote student
achievement; and</DELETED>
<DELETED> ``(E) a description of the commitment of
the resources of the partnership to the activities
assisted under this subpart, including financial
support, faculty participation, and time
commitments;</DELETED>
<DELETED> ``(4) describe how the partnership will include
the participation of the schools, colleges, or departments of
arts and sciences within an institution of higher education to
ensure the integration of teaching techniques and content in
teaching preparation;</DELETED>
<DELETED> ``(5) describe how the partnership will
restructure and improve teaching, teacher training, and
development programs, and how such systemic changes will
contribute to increased student achievement;</DELETED>
<DELETED> ``(6) describe how the partnership will prepare
teachers to work with diverse student populations, including
individuals with disabilities and limited English proficient
individuals;</DELETED>
<DELETED> ``(7) describe how the partnership will prepare
teachers to use technology;</DELETED>
<DELETED> ``(8) contain a dissemination plan regarding
knowledge and information with respect to effective teaching
practices, and a description of how such knowledge and
information will be implemented in elementary schools or
secondary schools as well as institutions of higher
education;</DELETED>
<DELETED> ``(9) describe the commitment of the partnership
to continue the activities assisted under this subpart without
grant funds provided under this subpart; and</DELETED>
<DELETED> ``(10) describe how the partnership will involve
and include parents in the reform process.</DELETED>
<DELETED>``Subpart 3--General Provisions</DELETED>
<DELETED>``SEC. 231. ACCOUNTABILITY AND EVALUATION.</DELETED>
<DELETED> ``(a) Teacher Quality Enhancement Grants.--</DELETED>
<DELETED> ``(1) Accountability report.--A State that
receives a grant under subpart 1 shall submit an annual
accountability report to the Secretary, the Committee on Labor
and Human Resources of the Senate, and the Committee on
Education and the Workforce of the House of Representatives.
Such report shall include a description of the degree to which
the State, in using funds provided under subpart 1, has made
substantial progress in meeting the following goals:</DELETED>
<DELETED> ``(A) Student achievement.--Increasing
student achievement for all students, as measured by
increased graduation rates, decreased dropout rates, or
higher scores on local, State or other
assessments.</DELETED>
<DELETED> ``(B) Raising standards.--Raising the
State academic standards required to enter the teaching
profession, including, where appropriate, incentives to
incorporate the requirement of an academic major in the
subject, or related discipline, in which the teacher
plans to teach.</DELETED>
<DELETED> ``(C) Initial certification or
licensure.--Increasing success in the passage rate for
initial State teacher certification or licensure, or
increasing numbers of highly qualified individuals
being certified or licensed as teachers through
alternative programs.</DELETED>
<DELETED> ``(D) Core academic subjects.--Increasing
the percentage of classes taught in core academic
subject areas by teachers highly competent in those
subject areas.</DELETED>
<DELETED> ``(E) Decreasing shortages for
professional development.--Decreasing shortages of
qualified teachers in poor urban and rural
areas.</DELETED>
<DELETED> ``(F) Increasing opportunities.--
Increasing opportunities for enhanced and ongoing
professional development that improves the academic
content knowledge of teachers in the subject areas in
which the teachers are certified to teach or in which
the teachers are working toward certification to
teach.</DELETED>
<DELETED> ``(G) Technology integration.--Increasing
the number of teachers prepared to integrate technology
in the classroom.</DELETED>
<DELETED> ``(2) Teacher qualifications provided to parent
upon request.--Any local educational agency that benefits from
the activities assisted under subpart 1 shall make available,
upon request and in an understandable and uniform format, to
any parent of a student attending any school served by the
local educational agency, information regarding the
qualifications of the student's classroom teacher with regard
to the subject matter in which the teacher provides
instruction. The local educational agency shall inform parents
that the parents are entitled to receive the information upon
request.</DELETED>
<DELETED> ``(b) Teacher Training Partnership Evaluation Plan.--Each
teacher training partnership receiving a grant under subpart 2 shall
establish an evaluation plan that includes strong performance
objectives established in negotiation with the Secretary at the time of
the grant award. The plan shall include objectives and measures for--
</DELETED>
<DELETED> ``(1) increased student achievement for all
students as measured by increased graduation rates, decreased
dropout rates, or higher scores on local, State, or other
assessments for a year compared to student achievement as
determined by the rates or scores, as the case may be, for the
year prior to the year for which a grant under this part is
received;</DELETED>
<DELETED> ``(2) increased teacher retention in the first 3
years of a teacher's career;</DELETED>
<DELETED> ``(3) increased success in the passage rate for
initial State certification or licensure of teachers;</DELETED>
<DELETED> ``(4) increased number of academic courses taken
in core subject areas;</DELETED>
<DELETED> ``(5) increased integration of technology in
teacher preparation and in classroom instruction;</DELETED>
<DELETED> ``(6) restructuring or change of methodology
courses to reflect best practices learned from elementary
schools, secondary schools or other entities;</DELETED>
<DELETED> ``(7) increased dissemination of information about
effective teaching strategies and practices; and</DELETED>
<DELETED> ``(8) other effects of increased integration among
members of the partnership.</DELETED>
<DELETED>``SEC. 232. REVOCATION OF GRANT.</DELETED>
<DELETED> ``Each State or teacher training partnership receiving a
grant under this part shall report annually on progress toward meeting
the purposes of this part, and the goals, objectives and measures
described in section 231. If the Secretary, after consultation with the
peer review panel described in section 213(b) determines that the State
or partnership is not making substantial progress in meeting the
purposes, goals, objectives and measures, as appropriate, by the end of
the second year of the grant, the grant shall not be continued for the
third year of the grant.</DELETED>
<DELETED>``SEC. 233. EVALUATION AND DISSEMINATION.</DELETED>
<DELETED> ``The Secretary shall evaluate the activities funded under
this part and report the Secretary's findings to the Committee on Labor
and Human Resources of the Senate and the Committee on Education and
the Workforce of the House of Representatives. The Secretary shall
broadly disseminate successful practices developed by the States and
teacher training partnerships under this part, and shall broadly
disseminate information regarding such practices so developed that were
found to be ineffective.</DELETED>
<DELETED>``SEC. 234. INTERNATIONAL STUDY AND REPORT.</DELETED>
<DELETED> ``(a) Study.--The Secretary shall conduct a study through
the National Center for Education Statistics regarding the ways
teachers are trained and the extent to which teachers in the United
States and other comparable countries are teaching in areas other than
the teachers' field of study or expertise. The study will examine
specific fields and will outline the nature and extent of the problem
of out-of-field teaching in the United States and in other countries
that are considered comparable to the United States. The study shall
include, at a minimum, all the countries that participated in the Third
International Mathematics and Science Study (TIMSS).</DELETED>
<DELETED> ``(b) Report.--The Secretary shall report to Congress
regarding the results of the study described in subsection
(a).</DELETED>
<DELETED>``SEC. 235. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> ``There are authorized to be appropriated to carry out
this part $300,000,000 for fiscal year 1999 and such sums as necessary
for each of the 4 succeeding fiscal years, of which--</DELETED>
<DELETED> ``(1) 50 percent shall be available for each
fiscal year to carry out subpart 1; and</DELETED>
<DELETED> ``(2) 50 percent shall be available for each
fiscal year to carry out subpart 2.</DELETED>
<DELETED>``PART B--RECRUITING NEW TEACHERS FOR UNDERSERVED
AREAS</DELETED>
<DELETED>``SEC. 251. STATEMENT OF PURPOSE.</DELETED>
<DELETED> ``It is the purpose of this part to--</DELETED>
<DELETED> ``(1) provide scholarships and, as necessary,
support services for students with high potential to become
effective teachers, particularly minority students;</DELETED>
<DELETED> ``(2) increase the quality and number of new
teachers nationally; and</DELETED>
<DELETED> ``(3) increase the ability of schools in
underserved areas to recruit a qualified teaching
staff.</DELETED>
<DELETED>``SEC. 252. DEFINITIONS.</DELETED>
<DELETED> ``In this part--</DELETED>
<DELETED> ``(1) Eligible partnership.--</DELETED>
<DELETED> ``(A) In general.--The term `eligible
partnership' means a partnership consisting of--
</DELETED>
<DELETED> ``(i) an institution of higher
education that awards baccalaureate degrees and
prepares teachers for their initial entry into
the teaching profession; and</DELETED>
<DELETED> ``(ii) one or more local
educational agencies that serve underserved
areas.</DELETED>
<DELETED> ``(B) Additional partners.--Such a
partnership may also include--</DELETED>
<DELETED> ``(i) 2-year institutions of
higher education that operate teacher
preparation programs and maintain articulation
agreements, with the institutions of higher
education that award baccalaureate degrees for
the transfer of credits in teacher
preparation;</DELETED>
<DELETED> ``(ii) State agencies that have
responsibility for policies related to teacher
preparation and teacher certification or
licensure; and</DELETED>
<DELETED> ``(iii) other public and private,
nonprofit agencies and organizations that
serve, or are located in, communities served by
the local educational agencies in the
partnership, and that have an interest in
teacher recruitment, preparation, and
induction.</DELETED>
<DELETED> ``(2) Support services.--The term `support
services' means--</DELETED>
<DELETED> ``(A) academic advice and
counseling;</DELETED>
<DELETED> ``(B) tutorial services;</DELETED>
<DELETED> ``(C) mentoring; and</DELETED>
<DELETED> ``(D) child care and transportation, if
funding for those services cannot be arranged from
other sources.</DELETED>
<DELETED> ``(3) Underserved area.--The term `underserved
area' means--</DELETED>
<DELETED> ``(A) the area served by the 3 local
educational agencies in the State that have the highest
numbers of children, ages 5 through 17, from families
below the poverty level (based on data satisfactory to
the Secretary); and</DELETED>
<DELETED> ``(B) the area served by any other local
educational agency in which the percentage of such
children is at least 20 percent, or the number of such
children is at least 10,000.</DELETED>
<DELETED>``SEC. 253. GRANT AUTHORITY AND CONDITIONS.</DELETED>
<DELETED> ``(a) Grants Authorized.--</DELETED>
<DELETED> ``(1) Grants.--</DELETED>
<DELETED> ``(A) In general.--From amounts
appropriated under section 262 the Secretary shall
award grants, on a competitive basis, to eligible
partnerships to enable the eligible partnerships to pay
the Federal share of the cost of carrying out the
activities described in section 255.</DELETED>
<DELETED> ``(B) Duration.--Each grant awarded under
subparagraph (A) shall be awarded for a period not to
exceed 5 years.</DELETED>
<DELETED> ``(2) Continuing eligibility; review of
progress.--The Secretary shall--</DELETED>
<DELETED> ``(A) continue to make grant payments for
the second and succeeding years of a grant awarded
under this part, only after determining that the
eligible partnership is making satisfactory progress in
carrying out the activities under the grant;
and</DELETED>
<DELETED> ``(B) conduct an intensive review of the
eligible partnerships's progress under the grant, with
the assistance of outside experts, before making grant
payments for the fourth year of the grant.</DELETED>
<DELETED> ``(3) Maximum number.--No eligible partnership may
receive more than 2 grants under this subsection.</DELETED>
<DELETED> ``(b) Matching Requirement.--</DELETED>
<DELETED> ``(1) Federal share.--The Federal share of the
cost of activities carried out under a grant made under
subsection (a) shall not exceed--</DELETED>
<DELETED> ``(A) 70 percent of the cost in the first
year of the grant;</DELETED>
<DELETED> ``(B) 60 percent in the second
year;</DELETED>
<DELETED> ``(C) 60 percent in the third
year;</DELETED>
<DELETED> ``(D) 50 percent in the fourth year;
and</DELETED>
<DELETED> ``(E) 50 percent in the fifth year and any
succeeding year (including each year of the second
grant, if any).</DELETED>
<DELETED> ``(2) Non-federal share.--The non-Federal share of
activities carried out with a grant under subsection (a) may be
provided in cash or in kind, fairly evaluated, and may be
obtained from any non-Federal public or private
source.</DELETED>
<DELETED> ``(c) Planning Grants.--</DELETED>
<DELETED> ``(1) In general.--The Secretary may award
planning grants to eligible partnerships that are not ready to
implement programs under subsection (a).</DELETED>
<DELETED> ``(2) Duration.--Each planning grant shall be for
a period of not more than 1 year, which shall be in addition to
the period of any grant under subsection (a).</DELETED>
<DELETED> ``(3) Requirement.--Any recipient of a planning
grant under this subsection that wishes to receive a grant
under subsection (a)(1) shall separately apply for a grant
under that subsection.</DELETED>
<DELETED>``SEC. 254. GRANT APPLICATIONS.</DELETED>
<DELETED> ``(a) Applications Required.--Any eligible partnership
desiring to receive a grant under this part shall submit an application
to the Secretary at such time, in such form, and containing such
information as the Secretary may require.</DELETED>
<DELETED> ``(b) Application Contents.--Each application for a grant
under section 253(a) shall include--</DELETED>
<DELETED> ``(1) a designation of the institution or agency,
within the eligible partnership, that will serve as the fiscal
agent for the grant;</DELETED>
<DELETED> ``(2) information on the quality of the teacher
preparation program of the institution of higher education
participating in the eligible partnership and how the eligible
partnership will ensure, through improvements in the eligible
partnership's teacher preparation practices or other
appropriate strategies, that scholarship recipients will
receive high-quality preparation;</DELETED>
<DELETED> ``(3) a description of the assessment the members
of the eligible partnership have undertaken--</DELETED>
<DELETED> ``(A) to determine--</DELETED>
<DELETED> ``(i) the most critical needs of
the local educational agencies, particularly
the needs of schools in high-poverty areas, for
new teachers (which may include teachers in
particular subject areas or at certain grade
levels); and</DELETED>
<DELETED> ``(ii) how the project carried out
under the grant will address those needs;
and</DELETED>
<DELETED> ``(B) that reflects the input of all
significant entities in the community (including
organizations representing teachers and parents) that
have an interest in teacher recruitment, preparation,
and induction;</DELETED>
<DELETED> ``(4) a description of the project the eligible
partnership will carry out with the grant, including
information regarding--</DELETED>
<DELETED> ``(A) the recruitment and outreach efforts
the eligible partnership will undertake to publicize
the availability of scholarships and other assistance
under the program;</DELETED>
<DELETED> ``(B)(i) the number and types of students
that the eligible partnership will serve under the
program, which may include education paraprofessionals
seeking to achieve full teacher certification or
licensure; teachers whom the partner local educational
agencies have hired under emergency certification or
licensure procedures; or former military personnel,
mid-career professionals, or AmeriCorps or Peace Corps
volunteers, who desire to enter teaching; and</DELETED>
<DELETED> ``(ii) the criteria that the eligible
partnership will use in selecting the students,
including criteria to determine whether individuals
have the capacity to benefit from the program, complete
teacher certification requirements, and become
effective teachers;</DELETED>
<DELETED> ``(C) the activities the eligible
partnership will carry out under the grant, including a
description of, and justification for, any support
services the institution of higher education
participating in the eligible partnership will offer to
participating students;</DELETED>
<DELETED> ``(D) the number and funding range of the
scholarships the institution will provide to students;
and</DELETED>
<DELETED> ``(E) the procedures the institution will
establish for entering into, and enforcing, agreements
with scholarship recipients regarding the recipients'
fulfillment of the service commitment described in
section 259;</DELETED>
<DELETED> ``(5) a description of how the institution will
use funds provided under the grant only--</DELETED>
<DELETED> ``(A) to increase the number of students--
</DELETED>
<DELETED> ``(i) with high potential to be
effective teachers;</DELETED>
<DELETED> ``(ii) participating in the
institution's teacher preparation programs;
or</DELETED>
<DELETED> ``(iii) in the particular type or
types of preparation programs that the grant
will support; or</DELETED>
<DELETED> ``(B) to increase the number of graduates,
who are minority individuals, with high potential to be
effective teachers;</DELETED>
<DELETED> ``(6) a description of the commitments, by the
local educational agencies participating in the partnership, to
hire qualified scholarship recipients in the schools served by
the agencies and in the subject areas or grade levels for which
the scholarship recipients will be trained, and a description
of the actions the participating institution of higher
education, the participating local educational agencies, and
the other partners will take to facilitate the successful
transition of the recipients into teaching; and</DELETED>
<DELETED> ``(7) a description of the eligible partnership's
plan for institutionalizing the activities the partnership is
carrying out under this part, so that the activities will
continue once Federal funding ceases.</DELETED>
<DELETED>``SEC. 255. USES OF FUNDS.</DELETED>
<DELETED> ``(a) In General.--Each eligible partnership receiving a
grant under section 523(a) shall use the grant funds for the
following:</DELETED>
<DELETED> ``(1) Scholarships.--Scholarships to help students
pay the costs of tuition, room, board, and other expenses of
completing a teacher preparation program.</DELETED>
<DELETED> ``(2) Support services.--Support services, if
needed to enable scholarship recipients to complete
postsecondary education programs.</DELETED>
<DELETED> ``(3) Followup services.--Followup services
provided to former scholarship recipients during the
recipients' first 3 years of teaching.</DELETED>
<DELETED> ``(4) Payments.--Payments to partner local
educational agencies, if needed to enable the agencies to
permit paraprofessional staff to participate in teacher
preparation programs (such as the cost of release time for the
staff).</DELETED>
<DELETED> ``(5) Additional courses.--If appropriate, and if
no other funds are available for, paying the costs of
additional courses taken by former scholarship recipients
during the recipients' initial 3 years of teaching.</DELETED>
<DELETED> ``(b) Planning Grants.--A recipient of a planning grant
under section 253(c) shall use the grant funds for the costs of
planning for the implementation of a grant under section
253(a).</DELETED>
<DELETED>``SEC. 256. SELECTION OF APPLICANTS.</DELETED>
<DELETED> ``(a) Peer Review.--The Secretary, using a peer review
process, shall select eligible partnerships to receive funding under
this part on the basis of--</DELETED>
<DELETED> ``(1) the quality of the teacher preparation
program offered by the institution participating in the
partnership;</DELETED>
<DELETED> ``(2) the quality of the program carried out under
the application; and</DELETED>
<DELETED> ``(3) the capacity of the partnership to carry out
the grant successfully.</DELETED>
<DELETED> ``(b) Criteria.--</DELETED>
<DELETED> ``(1) In general.--In awarding grants under
section 253(a), the Secretary shall seek to ensure that--
</DELETED>
<DELETED> ``(A) in the aggregate, eligible
partnerships carry out a variety of approaches to
preparing new teachers; and</DELETED>
<DELETED> ``(B) there is an equitable geographic
distribution of the grants.</DELETED>
<DELETED> ``(2) Special consideration.--In addition to
complying with paragraph (1), the Secretary shall give special
consideration to--</DELETED>
<DELETED> ``(A) applications most likely to result
in the preparation of increased numbers of individuals
with high potential for effective teaching who are
minority individuals; and</DELETED>
<DELETED> ``(B) applications from partnerships that
have as members of the partnerships historically Black
colleges and universities, Hispanic-serving
institutions, and Tribal Colleges and
Universities.</DELETED>
<DELETED> ``(c) Second Five-Year Grants.--In selecting eligible
partnerships to receive second year grant payments under this part, the
Secretary shall give a preference to eligible partnerships whose
projects have resulted in--</DELETED>
<DELETED> ``(1) the placement and retention of a substantial
number of high-quality graduates in teaching positions in
underserved, high-poverty schools;</DELETED>
<DELETED> ``(2) the adoption of effective programs that meet
the teacher preparation needs of high-poverty urban and rural
areas; and</DELETED>
<DELETED> ``(3) effective partnerships with elementary
schools and secondary schools that are supporting improvements
in student achievement.</DELETED>
<DELETED>``SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELATION TO
OTHER ASSISTANCE.</DELETED>
<DELETED> ``(a) Duration of Assistance.--No individual may receive
scholarship assistance under this part--</DELETED>
<DELETED> ``(1) for more than 5 years of postsecondary
education; and</DELETED>
<DELETED> ``(2) unless that individual satisfies the
requirements of section 484(a)(5).</DELETED>
<DELETED> ``(b) Amount of Assistance.--No individual may receive a
scholarship awarded under this part that exceeds the cost of
attendance, as defined in section 472, at the institution of higher
education the individual is attending.</DELETED>
<DELETED> ``(c) Relation to Other Assistance.--A scholarship awarded
under this part--</DELETED>
<DELETED> ``(1) shall not be reduced on the basis of the
individual's receipt of other forms of Federal student
financial assistance; and</DELETED>
<DELETED> ``(2) shall be regarded as other financial
assistance available to the student, within the meaning of
sections 471(3) and 480(j)(1), in determining the student's
eligibility for grant, loan, or work assistance under title
IV.</DELETED>
<DELETED>``SEC. 258. SCHOLARSHIP CONDITIONS.</DELETED>
<DELETED> ``(a) In General.--A recipient of a scholarship under this
part shall continue to receive the scholarship assistance only as long
as the recipient is--</DELETED>
<DELETED> ``(1) enrolled as a full-time student and pursuing
a course of study leading to teacher certification, unless the
recipient is working in a public school (as a paraprofessional,
or as a teacher under emergency credentials) while
participating in the program; and</DELETED>
<DELETED> ``(2) maintaining satisfactory progress as
determined by the institution of higher education participating
in the partnership.</DELETED>
<DELETED> ``(b) Special Rule.--Each eligible partnership shall
modify the application of section 257(a)(1) and of subsection (a)(1) to
the extent necessary to accommodate the rights of individuals with
disabilities under section 504 of the Rehabilitation Act of
1973.</DELETED>
<DELETED>``SEC. 259. SERVICE REQUIREMENTS.</DELETED>
<DELETED> ``(a) Requirement.--Each eligible partnership receiving a
grant under this part shall enter into an agreement, with each student
to whom the partnership awards a scholarship under this part, providing
that a scholarship recipient who completes a teacher preparation
program under this part shall, within 7 years of completing that
program, teach full-time for at least 5 years in a high-poverty school
in an underserved geographic area or repay the amount of the
scholarship, under the terms and conditions established by the
Secretary.</DELETED>
<DELETED> ``(b) Regulations.--The Secretary shall prescribe
regulations relating to the requirements of subsection (a), including
any provisions for waiver of those requirements.</DELETED>
<DELETED>``SEC. 260. EVALUATION.</DELETED>
<DELETED> ``The Secretary shall provide for an evaluation of the
program carried out under this part, which shall asses such issues as--
</DELETED>
<DELETED> ``(1) whether institutions participating in the
eligible partnerships are successful in preparing scholarship
recipients to teach to high State and local
standards;</DELETED>
<DELETED> ``(2) whether scholarship recipients are
successful in completing teacher preparation programs, becoming
fully certified teachers, and obtaining teaching positions in
underserved areas, and whether the recipients continue teaching
in those areas over a period of years;</DELETED>
<DELETED> ``(3) the national impact of the program in
assisting local educational agencies in underserved areas to
recruit, prepare, and retain diverse, high-quality teachers in
the areas in which the agencies have the greatest
needs;</DELETED>
<DELETED> ``(4) the long-term impact of the grants on
teacher preparation programs conducted by institutions of
higher education participating in the eligible partnership and
on the institutions' relationships with their partner local
educational agencies and other members of the partnership;
and</DELETED>
<DELETED> ``(5) the relative effectiveness of different
approaches for preparing new teachers to teach in underserved
areas, including their effectiveness in preparing new teachers
to teach to high content and performance standards.</DELETED>
<DELETED>``SEC. 261. NATIONAL ACTIVITIES.</DELETED>
<DELETED> ``The Secretary may reserve not more than 5 percent of the
funds appropriated for this part for any fiscal year for--</DELETED>
<DELETED> ``(1) peer review of applications;</DELETED>
<DELETED> ``(2) conducting the evaluation required under
section 260; and</DELETED>
<DELETED> ``(3) technical assistance.</DELETED>
<DELETED>``SEC. 262. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> ``There are authorized to be appropriated to carry out
this part $37,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.''.</DELETED>
<DELETED>TITLE III--INSTITUTIONAL AID</DELETED>
<DELETED>SEC. 301. TRANSFERS AND REDESIGNATIONS.</DELETED>
<DELETED> (a) In General.--Title III (20 U.S.C. 1051 et seq.) is
amended--</DELETED>
<DELETED> (1) by redesignating part D as part F;</DELETED>
<DELETED> (2) by redesignating sections 351, 352, 353, 354,
356, 357, 358, and 360 (20 U.S.C. 1066, 1067, 1068, 1069,
1069b, 1069c, 1069d, and 1069f) as sections 391, 392, 393, 394,
395, 396, 397, and 398, respectively;</DELETED>
<DELETED> (3) by transferring part B of title VII (20 U.S.C.
1132c et seq.) to title III to follow part C of title III (20
U.S.C. 1065 et seq.), and redesignating such part B as part
D;</DELETED>
<DELETED> (4) by redesignating sections 721 through 728 (20
U.S.C. 1132c and 1132c-7) as sections 341 through 348,
respectively;</DELETED>
<DELETED> (5) by transferring subparts 1 and 3 of part B of
title X (20 U.S.C. 1135b et seq. and 1135d et seq.) to title
III to follow part D of title III (as redesignated by paragraph
(3)), and redesignating such subpart 3 as subpart 2;</DELETED>
<DELETED> (6) by inserting after part D of title III (as
redesignated by paragraph (3)) the following:</DELETED>
<DELETED>``PART E--MINORITY SCIENCE IMPROVEMENT PROGRAM'';</DELETED>
<DELETED> (7) by redesignating sections 1021 through 1024
(20 U.S.C. 1135b and 1135b-3), and sections 1041, 1042, 1043,
1044, 1046, and 1047 (20 U.S.C. 1135d, 1135d-1, 1135d-2, 1135d-
3, 1135d-5, and 1135d-6) as sections 351 through 354, and
sections 361, 362, 363, 364, 365, and 366, respectively;
and</DELETED>
<DELETED> (8) by repealing section 366 (as redesignated by
paragraph (7)) (20 U.S.C. 1135d-6).</DELETED>
<DELETED> (b) Conforming Amendment.--Section 361 (as redesignated by
subsection (a)(7)) (20 U.S.C. 1135d) is amended--</DELETED>
<DELETED> (1) in paragraph (1), by inserting ``and'' after
the semicolon;</DELETED>
<DELETED> (2) in paragraph (2), by striking ``; and'' and
inserting a period; and</DELETED>
<DELETED> (3) by striking paragraph (3).</DELETED>
<DELETED> (c) Cross References.--Title III (20 U.S.C. 1051 et seq.)
is amended--</DELETED>
<DELETED> (1) in section 311(b) (20 U.S.C. 1057(b)), by
striking ``360(a)(1)'' and inserting ``398(a)(1)'';</DELETED>
<DELETED> (2) in section 312 (20 U.S.C. 1058)--</DELETED>
<DELETED> (A) in subsection (b)(1)(B), by striking
``352(b)'' and inserting ``392(b)''; and</DELETED>
<DELETED> (B) in subsection (c)(2), by striking
``352(a)'' and inserting ``392(a)'';</DELETED>
<DELETED> (3) in section 313(b) (20 U.S.C. 1059(b)), by
striking ``354(a)(1)'' and inserting ``394(a)(1)'';</DELETED>
<DELETED> (4) in section 342 (as redesignated by subsection
(a)(4)) (20 U.S.C. 1132c-1)--</DELETED>
<DELETED> (A) in paragraph (3), by striking
``723(b)'' and inserting ``343(b)'';</DELETED>
<DELETED> (B) in paragraph (4), by striking ``723''
and inserting ``343'';</DELETED>
<DELETED> (C) in the matter preceding subparagraph
(A) of paragraph (5), by striking ``724(b)'' and
inserting ``344(b)'';</DELETED>
<DELETED> (D) in paragraph (8), by striking
``725(1)'' and inserting ``345(1)''; and</DELETED>
<DELETED> (E) in paragraph (9), by striking ``727''
and inserting ``347'';</DELETED>
<DELETED> (5) in section 343 (as redesignated by subsection
(a)(4)) (20 U.S.C. 1132c-2)--</DELETED>
<DELETED> (A) in subsection (a), by striking ``724''
and inserting ``344''; and</DELETED>
<DELETED> (B) in subsection (b)--</DELETED>
<DELETED> (i) in the matter preceding
paragraph (1), by striking ``725(1) and 726''
and inserting ``345(1) and 346'';</DELETED>
<DELETED> (ii) in paragraph (10), by
striking ``724'' and inserting ``344'';
and</DELETED>
<DELETED> (iii) in subsection (d), by
striking ``723(c)(1)'' and inserting
``343(c)(1)'';</DELETED>
<DELETED> (6) in section 345(2) (as redesignated by
subsection (a)(4)) (20 U.S.C. 1132c-4(2)), by striking ``723''
and inserting ``343'';</DELETED>
<DELETED> (7) in section 348 (as redesignated by subsection
(a)(4)) (20 U.S.C. 1132c-7), by striking ``725(1)'' and
inserting ``345(1)'';</DELETED>
<DELETED> (8) in section 353(a) (as redesignated by
subsection (a)(7)) (20 U.S.C. 1135b-2(a))--</DELETED>
<DELETED> (A) in paragraph (1), by striking
``1046(6)'' and inserting ``365(6)'';</DELETED>
<DELETED> (B) in paragraph (2), by striking
``1046(7)'' and inserting ``365(7)'';</DELETED>
<DELETED> (C) in paragraph (3), by striking
``1046(8)'' and inserting ``365(8)''; and</DELETED>
<DELETED> (D) in paragraph (4), by striking
``1046(9)'' and inserting ``365(9)'';</DELETED>
<DELETED> (9) in section 361(1) (as redesignated by
subsection (a)(7)) (20 U.S.C. 1135d(1)), by striking
``1046(3)'' and inserting ``365(3)'';</DELETED>
<DELETED> (10) in section 362(a) (as redesignated by
subsection (a)(7)) (20 U.S.C. 1135d-1(a))--</DELETED>
<DELETED> (A) in the matter preceding paragraph (1),
by striking ``1041'' and inserting ``361'';
and</DELETED>
<DELETED> (B) in paragraph (1), by striking
``1021(b)'' and inserting ``351(b)''; and</DELETED>
<DELETED> (11) in section 391(b)(6) (as redesignated by
subsection (a)(2)), by striking ``357'' and inserting
``396''.</DELETED>
<DELETED>SEC. 302. FINDINGS.</DELETED>
<DELETED> Section 301(a) (20 U.S.C. 1051(a)) is amended--</DELETED>
<DELETED> (1) by redesignating paragraphs (3) through (7) as
paragraphs (4) through (8), respectively; and</DELETED>
<DELETED> (2) by inserting after paragraph (2) the
following:</DELETED>
<DELETED> ``(3) in order to be competitive and provide a
high-quality education for all, institutions of higher
education should improve their technological capacity and make
effective use of technology;''.</DELETED>
<DELETED>SEC. 303. STRENGTHENING INSTITUTIONS.</DELETED>
<DELETED> (a) Grants.--Section 311 (20 U.S.C. 1057) is amended--
</DELETED>
<DELETED> (1) in subsection (b)(3)(D), by inserting ``,
including high technology equipment,'' after ``equipment'';
and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(c) Endowment Fund.--</DELETED>
<DELETED> ``(1) In general.--An eligible institution may use
not more than 20 percent of the grant funds provided under this
part to establish or increase an endowment fund at such
institution.</DELETED>
<DELETED> ``(2) Matching requirement.--In order to be
eligible to use grant funds in accordance with paragraph (1),
the eligible institution shall provide matching funds, in an
amount equal to the Federal funds used in accordance with
paragraph (1), for the establishment or increase of the
endowment fund.</DELETED>
<DELETED> ``(3) Comparability.--The provisions of part C,
regarding the establishment or increase of an endowment fund,
that the Secretary determines are not inconsistent with this
subsection, shall apply to funds used under paragraph
(1).''.</DELETED>
<DELETED> (b) Duration of Grant.--Section 313 (20 U.S.C. 1059) is
amended by adding at the end the following:</DELETED>
<DELETED> ``(d) Wait-Out-Period.--Each eligible institution that
received a grant under this part for a 5-year period shall not be
eligible to receive an additional grant under this part until 2 years
after the date on which the 5-year grant period
terminates.''.</DELETED>
<DELETED> (c) Hispanic-Serving Institutions.--Section 316 (20 U.S.C.
1059c) is amended--</DELETED>
<DELETED> (1) in subsection (b)(1), by amending subparagraph
(C) to read as follows:</DELETED>
<DELETED> ``(C) provides assurances that not less
than 50 percent of the institution's Hispanic students
are low-income individuals who are first generation
college students;'';</DELETED>
<DELETED> (2) in subsection (c), by adding at the end the
following:</DELETED>
<DELETED> ``(3) Endowment fund.--</DELETED>
<DELETED> ``(A) In general.--A Hispanic-serving
institution may use not more than 20 percent of the
grant funds provided under this part to establish or
increase an endowment fund at the
institution.</DELETED>
<DELETED> ``(B) Matching requirement.--In order to
be eligible to use grant funds in accordance with
subparagraph (A), the Hispanic-serving institution
shall provide matching funds, in an amount equal to the
Federal funds used in accordance with paragraph (1),
for the establishment or increase of the endowment
fund.</DELETED>
<DELETED> ``(C) Comparability.--The provisions of
part C regarding the establishment or increase of an
endowment fund, that the Secretary determines are not
inconsistent with this paragraph, shall apply to funds
used under subparagraph (A).''; and</DELETED>
<DELETED> (3) in subsection (d)(3)--</DELETED>
<DELETED> (A) by inserting ``or community-based
organization'' after ``educational agency'';
and</DELETED>
<DELETED> (B) by inserting ``or organization'' after
``such agency''.</DELETED>
<DELETED>SEC. 304. STRENGTHENING HBCU'S.</DELETED>
<DELETED> (a) Grants.--Section 323 (20 U.S.C. 1062) is amended--
</DELETED>
<DELETED> (1) by redesignating subsection (b) as subsection
(c); and</DELETED>
<DELETED> (2) by inserting after subsection (a) the
following:</DELETED>
<DELETED> ``(b) Endowment Fund.--</DELETED>
<DELETED> ``(1) In general.--An institution may use not more
than 20 percent of the grant funds provided under this part to
establish or increase an endowment fund at the
institution.</DELETED>
<DELETED> ``(2) Matching requirement.--In order to be
eligible to use grant funds in accordance with paragraph (1),
the eligible institution shall provide matching funds, in an
amount equal to the Federal funds used in accordance with
paragraph (1), for the establishment or increase of the
endowment fund.</DELETED>
<DELETED> ``(3) Comparability.--The provisions of part C
regarding the establishment or increase of an endowment fund,
that the Secretary determines are not inconsistent with this
subsection, shall apply to funds used under paragraph
(1).''.</DELETED>
<DELETED> (b) Professional or Graduate Institutions.--Section 326
(20 U.S.C. 1063b) is amended--</DELETED>
<DELETED> (1) in subsection (a), by adding at the end of
paragraph (2) the following: ``If a grant of less than $500,000
is made under this section, matching funds provided from non-
Federal sources are not required. If a grant equal to or in
excess of $500,000 is made under this section, matching funds
provided from non-Federal sources are required only with
respect to the amount of the grant that exceeds $500,000.'';
and</DELETED>
<DELETED> (2) in subsection (e)(1)--</DELETED>
<DELETED> (A) in subparagraph (E), by inserting ``,
and any Tuskegee University qualified graduate
program'' before the semicolon;</DELETED>
<DELETED> (B) in subparagraph (F), by inserting ``,
and any Xavier University qualified graduate program''
before the semicolon;</DELETED>
<DELETED> (C) in subparagraph (G), by inserting ``,
and any Southern University qualified graduate
program'' before the semicolon;</DELETED>
<DELETED> (D) in subparagraph (H), by inserting ``,
and any Texas Southern University qualified graduate
program'' before the semicolon;</DELETED>
<DELETED> (E) in subparagraph (I), by inserting ``,
and any Florida A&M University qualified graduate
program'' before the semicolon; and</DELETED>
<DELETED> (F) in subparagraph (J), by inserting ``,
and any North Carolina Central University qualified
graduate program'' before the semicolon.</DELETED>
<DELETED>SEC. 305. ENDOWMENT CHALLENGE GRANTS.</DELETED>
<DELETED> Paragraph (2) of section 331(b) (20 U.S.C. 1065(b)) is
amended by striking subparagraphs (B) and (C) and inserting the
following:</DELETED>
<DELETED> ``(B) The Secretary may make a grant under this part to an
eligible institution in any fiscal year in which the amount
appropriated to carry out this part is less than $15,000,000, if the
institution--</DELETED>
<DELETED> ``(i) applies for a grant in an amount not
exceeding $500,000; and</DELETED>
<DELETED> ``(ii) has deposited in its endowment fund
established under this section an amount which is equal to
</DELETED>\<DELETED>1/2</DELETED>\ <DELETED>of the amount of
such grant.</DELETED>
<DELETED> ``(C) An eligible institution of higher education that is
awarded a grant under subparagraph (B) shall not be eligible to receive
an additional grant under subparagraph (B) until 10 years after the
date on which the grant period terminates.''.</DELETED>
<DELETED>SEC. 306. HBCU CAPITAL FINANCING.</DELETED>
<DELETED> (a) Definition.--Section 342(5) (as redesignated by
section 301(a)(4)) (20 U.S.C. 1132c-1(5)) is amended--</DELETED>
<DELETED> (1) by redesignating subparagraphs (B), (C), and
(D) as subparagraphs (C), (F), and (G);</DELETED>
<DELETED> (2) by inserting after subparagraph (A) the
following:</DELETED>
<DELETED> ``(B) a facility for the administration of
an educational program, or a student center or student
union, except that not more than 5 percent of the loan
proceeds provided under this part may be used for the
facility, center or union if the facility, center or
union is owned, leased, managed, or operated by a
private business, that, in return for such use, makes a
payment to the eligible institution;'';</DELETED>
<DELETED> (3) by inserting after subparagraph (C) (as
redesignated by paragraph (1)) the following:</DELETED>
<DELETED> ``(D) a maintenance, storage, or utility
facility that is essential to the operation of a
facility, a library, a dormitory, equipment,
instrumentation, a fixture, real property or an
interest therein, described in this
paragraph;</DELETED>
<DELETED> ``(E) a facility designed to provide
primarily outpatient health care for students or
faculty;''; and</DELETED>
<DELETED> (4) in subparagraph (G) (as redesignated by
paragraph (2)), by striking ``(C)'' and inserting
``(F)''.</DELETED>
<DELETED> (b) Full Faith and Credit.--Section 343 (as redesignated
by section 301(a)(4)) (20 U.S.C. 1132c-2) is amended by adding at the
end the following:</DELETED>
<DELETED> ``(e) Notwithstanding any other provision of law, the
Secretary may sell a qualified bond guaranteed under this part to any
party that offers terms that the Secretary determines are in the best
interest of the eligible institution.''.</DELETED>
<DELETED>SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT
PROGRAM.</DELETED>
<DELETED> Section 365(4) (as redesignated by section 301(a)(7)) (20
U.S.C. 1135d-5(4)) is amended by inserting ``behavioral,'' after
``physical,''.</DELETED>
<DELETED>SEC. 308. GENERAL PROVISIONS.</DELETED>
<DELETED> (a) Applications.--Paragraph (1) of section 391(b) (as
redesignated by section 301(a)(2)) (20 U.S.C. 1066(b)) is amended by
inserting ``, D or E'' after ``part C''.</DELETED>
<DELETED> (b) Application Review Process.--Section 393 (as
redesignated by section 301(a)(2)) (20 U.S.C. 1068) is amended by
adding at the end the following:</DELETED>
<DELETED> ``(d) Exclusion.--The provisions of this section shall not
apply to applications submitted under part D.''.</DELETED>
<DELETED> (c) Waivers.--Paragraph (2) of section 395(b) (as
redesignated by section 301(a)(2)) (20 U.S.C. 1069b(b)) is amended by
striking ``title II, IV, VII, or VIII'' and inserting ``part D, title
IV, or title VIII''.</DELETED>
<DELETED> (d) Authorization of Appropriations.--Section 398(a) (as
redesignated by section 301(a)(2)) (20 U.S.C. 1069f) is amended--
</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) in subparagraph (A), by striking
``1993'' and inserting ``1999''; and</DELETED>
<DELETED> (B) in subparagraph (B)--</DELETED>
<DELETED> (i) in clause (i), by striking
``1993'' and inserting ``1999'';</DELETED>
<DELETED> (ii) by striking clause (ii);
and</DELETED>
<DELETED> (iii) by striking ``(B)(i) There''
and inserting ``(B) There'';</DELETED>
<DELETED> (2) in paragraph (2)--</DELETED>
<DELETED> (A) in subparagraph (A), by striking
``1993'' and inserting ``1999''; and</DELETED>
<DELETED> (B) in subparagraph (B), by striking
``$20,000,000 for fiscal year 1993'' and inserting
``$30,000,000 for fiscal year 1999'';</DELETED>
<DELETED> (3) in paragraph (3), by striking ``$50,000,000
for fiscal year 1993'' and inserting ``$10,000,000 for fiscal
year 1999''; and</DELETED>
<DELETED> (4) by adding at the end the following:</DELETED>
<DELETED> ``(4) Part d.--There are authorized to be
appropriated to carry out part D, $110,000 for fiscal year
1999, and such sums as may be necessary for each of the 4
succeeding fiscal years.</DELETED>
<DELETED> ``(5) Part e.--There are authorized to be
appropriated to carry out part E, $10,000,000 for fiscal year
1999, and such sums as may be necessary for each of the 4
succeeding fiscal years.''.</DELETED>
<DELETED>TITLE IV--STUDENT ASSISTANCE</DELETED>
<DELETED>PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF
HIGHER EDUCATION</DELETED>
<DELETED>SEC. 411. REPEALS AND REDESIGNATIONS.</DELETED>
<DELETED> Title IV (20 U.S.C. 1070 et seq.) is amended--</DELETED>
<DELETED> (1) in part A (20 U.S.C. 1070 et seq.)--</DELETED>
<DELETED> (A) in subpart 2 (20 U.S.C. 1070a-11), by
repealing chapters 3 through 8 (20 U.S.C. 1070a-31 et
seq. and 1070a-81 et seq.); and</DELETED>
<DELETED> (B) by repealing subpart 8 (20 U.S.C.
1070f); and</DELETED>
<DELETED> (2) in part H (20 U.S.C. 1099a et seq.)--
</DELETED>
<DELETED> (A) by repealing subpart 1 (20 U.S.C.
1099a et seq.); and</DELETED>
<DELETED> (B) by redesignating subparts 2 and 3 (20
U.S.C. 1099b et seq. and 1099c et seq.) as subparts 1
and 2, respectively.</DELETED>
<DELETED>SEC. 412. FEDERAL PELL GRANTS.</DELETED>
<DELETED> (a) Amendment to Subpart Heading.--The heading for subpart
1 of part A of title IV (20 U.S.C. 1070a et seq.) is amended by
striking ``Basic Educational Opportunity Grants'' and inserting
``Federal Pell Grants''.</DELETED>
<DELETED> (b) Federal Pell Grants.--Section 401 (20 U.S.C. 1070a) is
amended--</DELETED>
<DELETED> (1) in the section heading, by striking ``basic
educational opportunity grants'' and inserting ``federal pell
grants'';</DELETED>
<DELETED> (2) in subsection (a)(1)--</DELETED>
<DELETED> (A) in the first sentence, by striking
``shall, during the period beginning July 1, 1972, and
ending September 30, 1998,'' and inserting ``, for each
fiscal year through fiscal year 2004, shall'';
and</DELETED>
<DELETED> (B) in the second sentence, by inserting
``until such time as the Secretary determines and
publishes in the Federal Register with an opportunity
for comment, an alternative payment system that
provides payments to institutions in an accurate and
timely manner,'' after ``pay eligible
students'';</DELETED>
<DELETED> (3) in subsection (b)--</DELETED>
<DELETED> (A) in paragraph (2)(A), by striking
clauses (i) through (v), and inserting the
following:</DELETED>
<DELETED> ``(i) $5,000 for academic year
1999-2000;</DELETED>
<DELETED> ``(ii) $5,200 for academic year
2000-2001;</DELETED>
<DELETED> ``(iii) $5,400 for academic year
2001-2002;</DELETED>
<DELETED> ``(iv) $5,600 for academic year
2002-2003; and</DELETED>
<DELETED> ``(v) $5,800 for academic year
2003-2004.'';</DELETED>
<DELETED> (B) by amending paragraph (3) to read as
follows:</DELETED>
<DELETED> ``(3) For any academic year for which an
appropriation Act provides a maximum basic grant in an amount
in excess of $2,400, the amount of a student's basic grant
shall equal $2,400 plus--</DELETED>
<DELETED> ``(A) one-half of the amount by which such
maximum basic grant exceeds $2,400; plus</DELETED>
<DELETED> ``(B) the lesser of--</DELETED>
<DELETED> ``(i) the remaining one-half of
such excess; or</DELETED>
<DELETED> ``(ii) the sum of the student's
tuition, fees, and if the student has dependent
care expenses (as described in section 472(8)
or disability-related expenses (as described in
section 472(9)), an allowance determined by the
institution for such expenses.''; and</DELETED>
<DELETED> (C) in paragraph (5), by striking ``$400,
except'' and all that follows through ``grant of $400''
and insert ``$200''; and</DELETED>
<DELETED> (4) in subsection (c)--</DELETED>
<DELETED> (A) by amending paragraph (1) to read as
follows: ``(1)(A) Except as provided in subparagraph
(B), the period during which a student may receive a
basic grant shall be the period, required for the
completion of the first undergraduate baccalaureate
course of study pursued by the student at the
institution at which the student is in attendance, that
does not exceed 150 percent of the period normally
required by a full-time student (or the equivalent
period, in the case of a part-time student) to complete
the course of study at the institution, as determined
by the institution.</DELETED>
<DELETED> ``(B) A student may receive basic grants
under this subpart for a period that exceeds the period
described in subparagraph (A) to the extent the
institution in which the student is enrolled determines
necessary to accommodate the rights of students with
disabilities under section 504 of the Rehabilitation
Act of 1973.''; and</DELETED>
<DELETED> (B) in paragraph (2)--</DELETED>
<DELETED> (i) by striking ``Nothing'' and
inserting ``(A) Except as provided in
subparagraph (B), nothing'';</DELETED>
<DELETED> (ii) by striking ``or, in the
case'' and all that follows through ``or
skills''; and</DELETED>
<DELETED> (iii) by adding at the end the
following:</DELETED>
<DELETED> ``(B)(i) A student may receive a basic
grant to attend English language instruction that is a
separate course of instruction only if--</DELETED>
<DELETED> ``(I) students enrolled in such a
course are required to take an independently
administered standardized test of English
language proficiency upon completion of the
course; and</DELETED>
<DELETED> ``(II) not less than a minimum
percentage of such students achieve a passing
score on that test.</DELETED>
<DELETED> ``(ii) The Secretary shall promulgate
regulations that specify 1 or more standardized tests
of English proficiency, the minimum percentage of
students who must achieve a passing score on the tests,
and such other requirements as the Secretary determines
are necessary to implement clause (i).''.</DELETED>
<DELETED>SEC. 413. TRIO PROGRAMS.</DELETED>
<DELETED> (a) Program Authority.--Section 402A (20 U.S.C. 1070a-11)
is amended--</DELETED>
<DELETED> (1) in subsection (b)(3)--</DELETED>
<DELETED> (A) in subparagraph (A), by striking
``$170,000 for fiscal year 1993'' and inserting
``$190,000 for each fiscal year'';</DELETED>
<DELETED> (B) in subparagraph (B), by striking
``$180,000 for fiscal year 1994'' and inserting
``$200,000 for each fiscal year''; and</DELETED>
<DELETED> (C) in subparagraph (C), by striking
``$190,000 for fiscal year 1995'' and inserting
``$210,000 for each fiscal year'';</DELETED>
<DELETED> (2) in subsection (c)(6), by amending the last
sentence to read as follows: ``The Secretary shall permit a
Director of a program assisted under this chapter to also
administer 1 or more additional programs for disadvantaged
students operated by the sponsoring entity regardless of the
funding source of such additional program.''; and</DELETED>
<DELETED> (3) in subsection (f), by striking ``$650,000,000
for fiscal year 1993'' and inserting ``$700,000,000 for fiscal
year 1999''.</DELETED>
<DELETED> (b) Talent Search.--Section 402B(b)(5) (20 U.S.C. 1070a-
12(b)(5)) is amended by inserting ``, or activities designed to
acquaint individuals from disadvantaged backgrounds with careers in
which the individuals are particularly underrepresented'' before the
semicolon.</DELETED>
<DELETED> (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is
amended--</DELETED>
<DELETED> (1) in subsection (b)--</DELETED>
<DELETED> (A) in paragraph (9), by striking ``and''
after the semicolon;</DELETED>
<DELETED> (B) by redesignating paragraph (10) as
paragraph (11);</DELETED>
<DELETED> (C) by inserting after paragraph (9) the
following:</DELETED>
<DELETED> ``(10) work-study positions where youth
participating in the project are exposed to careers requiring a
postsecondary degree; and''; and</DELETED>
<DELETED> (D) in paragraph (11) (as redesignated by
subparagraph (B)), by striking ``(9)'' and inserting
``(10)''; and</DELETED>
<DELETED> (2) in subsection (e), by striking ``and not in
excess of $40 per month during the remaining period of the
year.'' and inserting ``except that youth participating in a
work-study position under subsection (b)(10) may be paid a
stipend of $300 per month during June, July, and August. Youths
participating in a project proposed to be carried out under any
application may be paid stipends not in excess of $40 per month
during the remaining period of the year.''.</DELETED>
<DELETED> (d) Student Support Services.--Paragraph (6) of section
402D(c) (20 U.S.C. 1070a-14(c)(6)) is amended to read as
follows:</DELETED>
<DELETED> ``(6) consider, in addition to such other criteria
as the Secretary may prescribe, the institution's effort, and
where applicable past history, in--</DELETED>
<DELETED> ``(A) providing sufficient financial
assistance to meet the full financial need of each
student at the institution; and</DELETED>
<DELETED> ``(B) maintaining the loan burden of each
such student at a manageable level.''.</DELETED>
<DELETED> (e) Evaluation and Dissemination.--Section 402H (20 U.S.C.
1070a-18) is amended to read as follows:</DELETED>
<DELETED>``SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT
AND DISSEMINATION PARTNERSHIP PROJECTS.</DELETED>
<DELETED> ``(a) Evaluations.--</DELETED>
<DELETED> ``(1) In general.--For the purpose of improving
the effectiveness of the programs and projects assisted under
this subpart, the Secretary may make grants to or enter into
contracts with institutions of higher education and other
public and private institutions and organizations to evaluate
the effectiveness of the programs and projects assisted under
this subpart.</DELETED>
<DELETED> ``(2) Practices.--The evaluations described in
paragraph (1) shall identify institutional, community, and
program or project practices that are particularly effective in
enhancing the access of low-income individuals and first-
generation college students to postsecondary education, the
preparation of the individuals and students for postsecondary
education, and the success of the individuals and students in
postsecondary education.</DELETED>
<DELETED> ``(b) Grants.--The Secretary may award grants to
institutions of higher education or other private and public
institutions and organizations, that are carrying out a program or
project assisted under this subpart prior to the date of enactment of
the Higher Education Amendments of 1998, to enable the institutions and
organizations to expand and leverage the success of such programs or
projects by working in partnership with other institutions, community-
based organizations, or combinations of such institutions and
organizations, that are not receiving assistance under this subpart and
are serving low-income students and first generation college students,
in order to--</DELETED>
<DELETED> ``(1) disseminate and replicate best practices of
programs or projects assisted under this subpart; and</DELETED>
<DELETED> ``(2) provide technical assistance regarding
programs and projects assisted under this subpart.</DELETED>
<DELETED> ``(c) Results.--In order to improve overall program or
project effectiveness, the results of evaluations and grants described
in this section shall be disseminated by the Secretary to similar
programs or projects assisted under this subpart, as well as other
individuals concerned with postsecondary access for and retention of
low-income individuals and first-generation college
students.''.</DELETED>
<DELETED>SEC. 414. NATIONAL EARLY INTERVENTION SCHOLARSHIP AND
PARTNERSHIP PROGRAM.</DELETED>
<DELETED> Section 404G (20 U.S.C. 1070a-27) is amended by striking
``1993'' and inserting ``1999''.</DELETED>
<DELETED>SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY
GRANTS.</DELETED>
<DELETED> (a) Authorization of Appropriations.--Section 413A(b) (20
U.S.C. 1070b) is amended by striking ``$675,000,000 for fiscal year
1993'' and inserting ``$700,000,000 for fiscal year 1999''.</DELETED>
<DELETED> (b) Use of Funds for Less-Than-Full-Time Students.--
Subsection (d) of section 413C (20 U.S.C. 1070b-2) is amended to read
as follows:</DELETED>
<DELETED> ``(d) Use of Funds for Less-Than-Full-Time Students.--If
the institution's allocation under this subpart is directly or
indirectly based in part on the financial need demonstrated by students
who are independent students or attending the institution on less than
a full-time basis, a reasonable proportion of the allocation shall be
made available to such students.''.</DELETED>
<DELETED> (c) Carryover, Carryback, and Reallocation.--Subpart 3 of
part A of title IV (20 U.S.C. 1070b et seq.) is amended by adding at
the end the following:</DELETED>
<DELETED>``SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCATION.</DELETED>
<DELETED> ``(a) Carryover Authority.--Of the sums made available to
an eligible institution under this subpart for a fiscal year, not more
than 10 percent may, at the discretion of the institution, remain
available for expenditure during the succeeding fiscal year to carry
out the program under this subpart.</DELETED>
<DELETED> ``(b) Carryback Authority.--Of the sums made available to
an eligible institution under this subpart for a fiscal year, not more
than 10 percent may, at the discretion of the institution, be used by
the institution for expenditure for the fiscal year preceding the
fiscal year for which the sums were appropriated.</DELETED>
<DELETED> ``(c) Reallocation.--Any of the sums made available to an
eligible institution under this subpart for a fiscal year that are not
needed by the institution to award supplemental grants during that
fiscal year, that the institution does not wish to use during the
succeeding fiscal year as authorized in subsection (a), and that the
institution does not wish to use for the preceding fiscal year as
authorized in subsection (b), shall be made available to the Secretary
for reallocation under section 413D(e) until the end of the second
fiscal year after the fiscal year for which such sums were
appropriated.''.</DELETED>
<DELETED>SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP
PROGRAM.</DELETED>
<DELETED> (a) Authorization of Appropriations.--Section 415A(b) (20
U.S.C. 1070c(b)) is amended--</DELETED>
<DELETED> (1) in paragraph (1), by striking ``1993'' and
inserting ``1999'';</DELETED>
<DELETED> (2) by redesignating paragraph (2) as paragraph
(3); and</DELETED>
<DELETED> (3) by inserting after paragraph (1) the
following:</DELETED>
<DELETED> ``(2) Reservation.--For any fiscal year for which
the amount appropriated under paragraph (1) exceeds
$35,000,000, the excess shall be available to carry out section
415E.''.</DELETED>
<DELETED> (b) Special Leveraging Educational Assistance Partnership
Program.--Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is
amended--</DELETED>
<DELETED> (1) by redesignating section 415E as
415F;</DELETED>
<DELETED> (2) by inserting after section 415D the
following:</DELETED>
<DELETED>``SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE
PARTNERSHIP PROGRAM.</DELETED>
<DELETED> ``(a) In General.--From amounts reserved under section
415A(b)(2) for each fiscal year, the Secretary shall--</DELETED>
<DELETED> ``(1) make allotments among States in the same
manner as the Secretary makes allotments among States under
section 415B; and</DELETED>
<DELETED> ``(2) award grants to States, from allotments
under paragraph (1), to enable the States to pay the Federal
share of the cost of the authorized activities described in
subsection (c).</DELETED>
<DELETED> ``(b) Applicability Rule.--The provisions of this subpart
which are not inconsistent with this section shall apply to the program
authorized by this section.</DELETED>
<DELETED> ``(c) Authorized Activities.--Each State receiving a grant
under this section may use the grant funds for--</DELETED>
<DELETED> ``(1) increasing the dollar amount of grants
awarded under section 415B to eligible students who demonstrate
financial need;</DELETED>
<DELETED> ``(2) carrying out transition programs from
secondary school to postsecondary education for eligible
students who demonstrate financial need;</DELETED>
<DELETED> ``(3) making funds available for community service
work-study activities for eligible students who demonstrate
financial need;</DELETED>
<DELETED> ``(4) creating a postsecondary scholarship program
for eligible students who demonstrate financial need and wish
to enter teaching;</DELETED>
<DELETED> ``(5) creating a scholarship program for eligible
students who demonstrate financial need and wish to enter a
program of study leading to a degree in mathematics, computer
science, or engineering;</DELETED>
<DELETED> ``(6) carrying out early intervention programs,
mentoring programs, and career education programs for eligible
students who demonstrate financial need; and</DELETED>
<DELETED> ``(7) awarding merit or academic scholarships to
eligible students who demonstrate financial need.</DELETED>
<DELETED> ``(d) Maintenance of Effort Requirement.--Each State
receiving a grant under this section for a fiscal year shall provide
the Secretary an assurance that the aggregate amount expended per
student or the aggregate expenditures by the State, from funds derived
from non-Federal sources, for the authorized activities described in
subsection (c) for the preceding fiscal year were not less than the
amount expended per student or the aggregate expenditures by the State
for the activities for the second preceding fiscal year.</DELETED>
<DELETED> ``(e) Federal Share.--The Federal share of the cost of the
authorized activities described in subsection (c) for any fiscal year
shall be 33</DELETED>\<DELETED>1/3</DELETED>\ <DELETED>percent.'';
and</DELETED>
<DELETED> (3) by adding at the end the following:</DELETED>
<DELETED>``SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE
AGREEMENTS.</DELETED>
<DELETED> ``(a) In General.--Any State that desires to receive
assistance under this subpart shall enter into an agreement with the
Secretary pursuant to subsection (b) setting forth the terms and
conditions for the relationship between the Federal Government and that
State for the purposes set forth under this subpart.</DELETED>
<DELETED> ``(b) Contents.--</DELETED>
<DELETED> ``(1) In general.--Such agreement shall consist of
assurances by the State, including a description of the means
to be used by the State to fulfill the assurances, that--
</DELETED>
<DELETED> ``(A) the State will provide for such
methods of administration as are necessary for the
proper and efficient administration of the program
under this subpart in keeping with the purposes set
forth under this subpart;</DELETED>
<DELETED> ``(B) the State will provide for such
fiscal control and fund accounting procedures as may be
necessary to ensure proper disbursement of, and
accounting for, Federal funds paid to the State under
this subpart;</DELETED>
<DELETED> ``(C) the State will follow policies and
practices of administration that will ensure that non-
Federal funds will not be supplanted by Federal funds,
and that equitable and appropriate criteria will be
used in evaluation of applications or proposals for
grants under this subpart; and</DELETED>
<DELETED> ``(D) the State has a comprehensive
planning or policy formulation process that--</DELETED>
<DELETED> ``(i) considers the relation
between State administration of the program
under this subpart, and administration of
similar State programs or processes;</DELETED>
<DELETED> ``(ii) encourages State policies
designed to consider effects on declining
enrollments on all sectors of postsecondary
education in the State;</DELETED>
<DELETED> ``(iii) considers the
postsecondary education needs of unserved and
underserved individuals within the State,
including individuals beyond the traditional
college age;</DELETED>
<DELETED> ``(iv) considers the resources of
institutions, organizations, or agencies (both
public and private) within the State capable of
providing postsecondary educational
opportunities in the State; and</DELETED>
<DELETED> ``(v) provides for direct,
equitable, and active participation in the
comprehensive planning or policy formulation
process or processes of representatives of
institutions of higher education (including
community colleges, proprietary institutions,
and independent colleges and universities),
students, other providers of postsecondary
education services, and the general public in
the State.</DELETED>
<DELETED> ``(2) Special rule.--Participation under paragraph
(1)(D)(v) shall, consistent with State law, be achieved through
membership on State planning commissions, State advisory
councils, or other State entities established by the State to
conduct federally assisted comprehensive planning or policy
formulation.</DELETED>
<DELETED> ``(c) Special Rule.--The information and assurances
provided by a State in accordance with subparagraphs (A), (B), and (C)
of subsection (b)(1), and regulations issued by the Secretary related
directly to such assurances, shall be satisfactory for the purposes of,
and shall be considered in lieu of, any comparable requirements for
information and assurances in any program under this subpart.</DELETED>
<DELETED> ``(d) Agreement Duration; Compliance.--</DELETED>
<DELETED> ``(1) Agreement duration.--An agreement of a State
shall remain in effect subject to modification as changes in
information or circumstances require.</DELETED>
<DELETED> ``(2) Compliance.--Whenever the Secretary, after
reasonable notice and opportunity for a hearing has been given
to the State, finds that there is a failure to comply
substantially with the assurances required in subparagraph (A),
(B), or (C) of subsection (b)(1), the Secretary shall notify
the State that the State is no longer eligible to participate
in the program under this subpart until the Secretary is
satisfied that there is no longer any such failure to
comply.</DELETED>
<DELETED> ``(e) Special Rules.--</DELETED>
<DELETED> ``(1) Entities entering into agreements.--For the
purpose of this section, the selection of the State entity or
entities authorized to act on behalf of the State for the
purpose of entering into an agreement with the Secretary shall
be in accordance with the State law of each individual State
with respect to the authority to make legal agreements between
the State and the Federal Government.</DELETED>
<DELETED> ``(2) Construction.--</DELETED>
<DELETED> ``(A) State structure.--Nothing in this
section shall be construed to authorize the Secretary
to require any State to adopt, as a condition for
entering into an agreement, or for participation in a
program under this subpart, a specific State
organizational structure for achieving participation in
the planning, or administration of programs, or for
statewide planning, coordination, governing,
regulating, or administering of postsecondary education
agencies, institutions, or programs in the
State.</DELETED>
<DELETED> ``(B) State authority.--Nothing in this
section shall be construed as a limitation on the
authority of any State to adopt a State organizational
structure for postsecondary education agencies,
institutions, or programs that is appropriate to the
needs, traditions, and circumstances of that State, or
as a limitation on the authority of a State entering
into an agreement pursuant to this section to modify
the State organizational structure at any time
subsequent to entering into such an
agreement.''.</DELETED>
<DELETED> (c) Technical and Conforming Amendments.--</DELETED>
<DELETED> (1) Purpose.--Subsection (a) of section 415A (20
U.S.C. 1070c(a)) is amended to read as follows:</DELETED>
<DELETED> ``(a) Purpose of Subpart.--It is the purpose of this
subpart to make incentive grants available to States to assist States
in--</DELETED>
<DELETED> ``(1) providing grants to--</DELETED>
<DELETED> ``(A) eligible students attending
institutions of higher education or participating in
programs of study abroad that are approved for credit
by institutions of higher education at which such
students are enrolled; and</DELETED>
<DELETED> ``(B) eligible students for campus-based
community service work-study; and</DELETED>
<DELETED> ``(2) carrying out the activities described in
section 415F.''.</DELETED>
<DELETED> (2) Allotment.--Section 415B(a)(1) (20 U.S.C.
1070c-1(a)(1)) is amended by inserting ``and not reserved under
section 415A(b)(2)'' after ``415A(b)(1)''.</DELETED>
<DELETED>SEC. 417. HEP AND CAMP.</DELETED>
<DELETED> Section 418A(g) (20 U.S.C. 1070d-2(g)) is amended--
</DELETED>
<DELETED> (1) in paragraph (1), by striking ``$15,000,000
for fiscal year 1993'' and inserting ``$25,000,000 for fiscal
year 1999''; and</DELETED>
<DELETED> (2) in paragraph (2), by striking ``$5,000,000 for
fiscal year 1993'' and inserting ``$10,000,000 for fiscal year
1999''.</DELETED>
<DELETED>SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.</DELETED>
<DELETED> Section 419K (20 U.S.C. 1070d-41) is amended by striking
``$10,000,000 for fiscal year 1993'' and inserting ``$45,000,000 for
fiscal year 1999''.</DELETED>
<DELETED>SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.</DELETED>
<DELETED> Part A of title IV (20 U.S.C. 1070 et seq.) is amended by
inserting after subpart 6 (20 U.S.C. 1070d-31 et seq.) the
following:</DELETED>
<DELETED>``Subpart 7--Child Care Access Means Parents in
School</DELETED>
<DELETED>``SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN
SCHOOL.</DELETED>
<DELETED> ``(a) Purpose.--The purpose of this section is to support
the participation of low-income parents in postsecondary education
through the provision of campus-based child care services.</DELETED>
<DELETED> ``(b) Program Authorized.--</DELETED>
<DELETED> ``(1) Authority.--The Secretary may award grants
to institutions of higher education to assist the institutions
in providing campus-based child care services to low-income
students.</DELETED>
<DELETED> ``(2) Amount of grants.--</DELETED>
<DELETED> ``(A) In general.--The amount of a grant
awarded to an institution of higher education under
this section for a fiscal year shall not exceed 1
percent of the total amount of all Federal Pell Grant
funds awarded to students enrolled at the institution
of higher education for the preceding fiscal
year.</DELETED>
<DELETED> ``(B) Minimum.--A grant under this section
shall be awarded in an amount that is not less than
$10,000.</DELETED>
<DELETED> ``(3) Duration; renewal; and payments.--</DELETED>
<DELETED> ``(A) Duration.--The Secretary shall award
a grant under this section for a period of 3
years.</DELETED>
<DELETED> ``(B) Renewal.--A grant under this section
may be renewed for a period of 3 years.</DELETED>
<DELETED> ``(C) Payments.--Subject to subsection
(d)(2), the Secretary shall make annual grant payments
under this section.</DELETED>
<DELETED> ``(4) Eligible institutions.--An institution of
higher education shall be eligible to receive a grant under
this section for a fiscal year if the total amount of all
Federal Pell Grant funds awarded to students enrolled at the
institution of higher education for the preceding fiscal year
equals or exceeds $350,000.</DELETED>
<DELETED> ``(5) Use of funds.--Grant funds under this
section shall be used by an institution of higher education to
support or establish a campus-based child care program serving
the needs of low-income students enrolled at the institution of
higher education.</DELETED>
<DELETED> ``(6) Construction.--Nothing in this section shall
be construed to prohibit an institution of higher education
that receives grant funds under this section from serving the
child care needs of the community served by the
institution.</DELETED>
<DELETED> ``(7) Definition of low-income student.--For the
purpose of this section, the term ``low-income student'' means
a student who is eligible to receive a Federal Pell Grant for
the fiscal year for which the determination is made.</DELETED>
<DELETED> ``(c) Applications.--An institution of higher education
desiring a grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may require. Each application shall--
</DELETED>
<DELETED> ``(1) demonstrate that the institution is an
eligible institution described in subsection (b)(4);</DELETED>
<DELETED> ``(2) specify the amount of funds
requested;</DELETED>
<DELETED> ``(3) demonstrate the need of low-income students
at the institution for campus-based child care services by
including in the application student demographics and other
relevant data;</DELETED>
<DELETED> ``(4) contain a description of the activities to
be assisted, including whether the grant funds will support an
existing child care program or a new child care
program;</DELETED>
<DELETED> ``(5) identify the resources the institution will
draw upon to support the child care program and the
participation of low-income students in the program, such as
accessing social services funding, using student activity fees
to help pay the costs of child care, using resources obtained
by meeting the needs of parents who are not low-income
students, and accessing foundation, corporate or other
institutional support, and demonstrate that the use of the
resources will not result in increases in student
tuition;</DELETED>
<DELETED> ``(6) contain an assurance that the institution
will meet the child care needs of low-income students through
the provision of services, or through a contract for the
provision of services;</DELETED>
<DELETED> ``(7) in the case of an institution seeking
assistance for a new child care program--</DELETED>
<DELETED> ``(A) provide a timeline, covering the
period from receipt of the grant through the provision
of the child care services, delineating the specific
steps the institution will take to achieve the goal of
providing low-income students with child care
services;</DELETED>
<DELETED> ``(B) specify any measures the institution
will take to assist low-income students with child care
during the period before the institution provides child
care services; and</DELETED>
<DELETED> ``(C) include a plan for identifying
resources needed for the child care services, including
space in which to provide child care services, and
technical assistance if necessary;</DELETED>
<DELETED> ``(8) contain an assurance that any child care
facility assisted under this section will meet the applicable
State or local government licensing, certification, approval,
or registration requirements; and</DELETED>
<DELETED> ``(9) contain a plan for any child care facility
assisted under this section to become accredited within 3 years
of the date the institution first receives assistance under
this section.</DELETED>
<DELETED> ``(d) Reporting Requirements; Continuing Eligibility.--
</DELETED>
<DELETED> ``(1) Reporting requirements.--</DELETED>
<DELETED> ``(A) Reports.--Each institution of higher
education receiving a grant under this section shall
report to the Secretary 18 months, and 36 months, after
receiving the first grant payment under this
section.</DELETED>
<DELETED> ``(B) Contents.--The report shall
include--</DELETED>
<DELETED> ``(i) data on the population
served under this section;</DELETED>
<DELETED> ``(ii) information on campus and
community resources and funding used to help
low-income students access child care
services;</DELETED>
<DELETED> ``(iii) information on progress
made toward accreditation of any child care
facility; and</DELETED>
<DELETED> ``(iv) information on the impact
of the grant on the quality, availability, and
affordability of campus-based child care
services.</DELETED>
<DELETED> ``(2) Continuing eligibility.--The Secretary shall
make the third annual grant payment under this section to an
institution of higher education only if the Secretary
determines, on the basis of the 18-month report submitted under
paragraph (1), that the institution is making a good faith
effort to ensure that low-income students at the institution
have access to affordable, quality child care
services.</DELETED>
<DELETED> ``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section $60,000,000 for
fiscal year 1999 and such sums as may be necessary for each of the 4
succeeding fiscal years.''.</DELETED>
<DELETED>PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM</DELETED>
<DELETED>SEC. 421. ADVANCES FOR RESERVE FUNDS.</DELETED>
<DELETED> Section 422 (20 U.S.C. 1072) is amended--</DELETED>
<DELETED> (1) in subsection (c)--</DELETED>
<DELETED> (A) in paragraph (6)(B)(i), by striking
``written'' and inserting ``written, electronic'';
and</DELETED>
<DELETED> (B) in paragraph (7)(A), by striking
``during the transition from the Federal Family
Education Loan Program under this part to the Federal
Direct Student Loan Program under part D of this
title'';</DELETED>
<DELETED> (2) in the matter preceding subparagraph (A) of
subsection (g)(1), by striking ``or the program authorized by
part D of this title'' each place the term appears;
and</DELETED>
<DELETED> (3) by adding at the end the following:</DELETED>
<DELETED> ``(i) Additional Recall of Reserves.--</DELETED>
<DELETED> ``(1) In general.--Notwithstanding any other
provision of law and subject to paragraph (4), the Secretary
shall recall $40,000,000 for each of the fiscal years 1999,
2000, 2001, 2002, and 2003 from reserve funds held in the
Federal Student Loan Reserve Funds established under section
422A by guaranty agencies.</DELETED>
<DELETED> ``(2) Deposit.--Funds recalled by the Secretary
under this subsection shall be deposited in the
Treasury.</DELETED>
<DELETED> ``(3) Required share.--The Secretary shall require
each guaranty agency to return reserve funds under paragraph
(1) annually on the basis of </DELETED>\<DELETED>1/5</DELETED>\
<DELETED>of the agency's required share. For purposes of this
paragraph, a guaranty agency's required share shall be
determined as follows:</DELETED>
<DELETED> ``(A) Equal percentage.--The Secretary
shall require each guaranty agency to return an equal
percentage reduction in the amount of reserve funds
held by the agency on September 30, 1996.</DELETED>
<DELETED> ``(B) Calculation.--The equal percentage
reduction shall be the percentage obtained by
dividing--</DELETED>
<DELETED> ``(i) $200,000,000, by</DELETED>
<DELETED> ``(ii) the total amount of all
guaranty agencies' reserve funds held on
September 30, 1996.</DELETED>
<DELETED> ``(4) Offset of required shares.--If any guaranty
agency returns to the Secretary any reserve funds in excess of
the amount required under this subsection or subsection (h),
the total amount required to be returned under paragraph (1)
shall be reduced by the amount of such excess reserve funds
returned.</DELETED>
<DELETED> ``(5) Definition of reserve funds.--The term
`reserve funds' when used with respect to a guaranty agency--
</DELETED>
<DELETED> ``(A) includes any reserve funds in cash
or liquid assets held by the guaranty agency, or held
by, or under the control of, any other entity;
and</DELETED>
<DELETED> ``(B) does not include buildings,
equipment, or other nonliquid assets.''.</DELETED>
<DELETED>SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND.</DELETED>
<DELETED> Part B of title IV (20 U.S.C. 1071 et seq.) is amended by
inserting after section 422 (20 U.S.C. 1072) the following:</DELETED>
<DELETED>``SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.</DELETED>
<DELETED> ``(a) Establishment.--Each guaranty agency shall, not
later than 45 days after the date of enactment of this section, deposit
all funds, securities, and other liquid assets contained in the reserve
fund established pursuant to section 422 into a Federal Student Loan
Reserve Fund (in this section referred to as the `Federal Fund'), in an
account of a type selected by the agency, with the approval of the
Secretary.</DELETED>
<DELETED> ``(b) Investment of Funds.--Funds transferred to the
Federal Fund shall be invested in obligations issued or guaranteed by
the United States or a State, or in other similarly low-risk securities
selected by the guaranty agency, with the approval of the Secretary.
Earnings from the Federal Fund shall be the sole property of the
Federal Government.</DELETED>
<DELETED> ``(c) Additional Deposits.--After the establishment of the
Federal Fund, a guaranty agency shall deposit into the Federal Fund--
</DELETED>
<DELETED> ``(1) all amounts received from the Secretary as
payment of reinsurance on loans pursuant to section
428(c)(1);</DELETED>
<DELETED> ``(2) from amounts collected on behalf of the
obligation of a defaulted borrower, a percentage amount equal
to the complement of the reinsurance percentage in effect when
payment under the guaranty agreement was made with respect to
the defaulted loan pursuant to section 428(c)(6)(A)(i);
and</DELETED>
<DELETED> ``(3) the amount of the insurance premium
collected from borrowers pursuant to section
428(b)(1)(H).</DELETED>
<DELETED> ``(d) Uses of Funds.--Subject to subsection (f), the
Federal Fund may only be used by a guaranty agency--</DELETED>
<DELETED> ``(1) to pay lender claims pursuant to sections
428(b)(1)(G), 428(j), 437, and 439(q); and</DELETED>
<DELETED> ``(2) to pay into the Agency Operating Fund
established pursuant to section 422B a default prevention fee
in accordance with section 428(l).</DELETED>
<DELETED> ``(e) Ownership of Federal Fund.--The Federal Fund
administered by the guaranty agency, regardless of who holds or
controls the reserve funds or assets, and any nonliquid assets that
were purchased with Federal reserve funds, shall be considered to be
the property of the United States to be used in the operation of the
program authorized by this part, as provided in subsection (d). The
Secretary may direct a guaranty agency, or such agency's officers or
directors, to cease any activity involving expenditure, use, or
transfer of the Federal Fund administered by the guaranty agency that
the Secretary determines is a misapplication, misuse, or improper
expenditure of such funds or assets.</DELETED>
<DELETED> ``(f) Transition.--</DELETED>
<DELETED> ``(1) In general.--In order to establish the
Agency Operating Fund established by section 422B, each agency
may transfer not more than 180 days cash expenses for normal
operating expenses, as a working capital reserve as defined in
Office of Management and Budget Circular A-87 (Cost Accounting
Standards) for use in the performance of the agency's duties
under this part. Such transfers may occur during the first 3
years following the establishment of the Agency Operating Fund,
except that no agency may transfer in excess of 40 percent of
the Federal Fund balance to the agency's Agency Operating Fund
during any fiscal year. In determining the amount necessary for
transfer, the agency shall assure that sufficient funds remain
in the Federal Fund to pay lender claims within the required
time periods and to meet the reserve funds recall requirements
of subsection (b).</DELETED>
<DELETED> ``(2) Repayment provisions.--Each guaranty agency
shall begin repayment of sums transferred pursuant to this
subsection not later than 3 years after the establishment of
the Agency Operating Fund, and shall repay all sums transferred
not later than 5 years from the date of the establishment of
the Agency Operating Fund. The guaranty agency shall provide to
the Secretary a schedule for repayment of the sums transferred
and an annual financial analysis demonstrating the agency's
ability to comply with the schedule and repay all outstanding
sums transferred.</DELETED>
<DELETED> ``(3) Prohibition.--If a guaranty agency transfers
funds from the Federal Fund in accordance with this section,
and fails to make scheduled repayments to the Federal Fund, the
agency may not receive any other funds under this part until
the Secretary determines that the agency has made such
repayments.</DELETED>
<DELETED> ``(4) Waiver.--The Secretary may waive the
requirements of paragraph (3) for a guaranty agency described
in such paragraph if the Secretary determines there are
extenuating circumstances beyond the control of the agency that
justify such a waiver.</DELETED>
<DELETED> ``(5) Investment of federal funds.--Funds
transferred from the Federal Fund to the Agency Operating Fund
for operating expenses shall be invested in obligations issued
or guaranteed by the United States or a State, or in other
similarly low-risk securities selected by the guaranty agency,
with the approval of the Secretary.</DELETED>
<DELETED> ``(6) Special rule.--In applying the minimum
reserve level required by section 428(c)(9)(A), the Secretary
shall include all amounts owed to the Federal Fund by the
guaranty agency in the calculation.''.</DELETED>
<DELETED>SEC. 423. AGENCY OPERATING FUND.</DELETED>
<DELETED> Part B of title IV (20 U.S.C. 1071 et seq.) is amended
further by inserting after section 422A (as added by section 422) the
following:</DELETED>
<DELETED>``SEC. 422B. AGENCY OPERATING FUND.</DELETED>
<DELETED> ``(a) Establishment.--Each guaranty agency shall, not
later than 45 days after the date of enactment of this section,
establish a fund designated as the Agency Operating Fund (in this
section referred to as the `Operating Fund').</DELETED>
<DELETED> ``(b) Investment of Funds.--Funds deposited into the
Operating Fund, with the exception of funds transferred from the
Federal Student Loan Reserve Fund pursuant to section 422A(f), shall be
invested at the discretion of the guaranty agency.</DELETED>
<DELETED> ``(c) Additional Deposits.--After the establishment of the
Operating Fund, the guaranty agency shall deposit into the Operating
Fund--</DELETED>
<DELETED> ``(1) the loan processing and issuance fee paid by
the Secretary pursuant to section 428(f);</DELETED>
<DELETED> ``(2) the portfolio maintenance fee paid by the
Secretary in accordance with section 458;</DELETED>
<DELETED> ``(3) the default prevention fee paid in
accordance with section 428(l); and</DELETED>
<DELETED> ``(4) amounts remaining pursuant to section
428(c)(6)(A)(ii) from collection on defaulted loans held by the
agency, after payment of the Secretary's equitable share,
excluding amounts deposited in the Federal Student Loan Reserve
Fund pursuant to section 422A(c)(2).</DELETED>
<DELETED> ``(d) Uses of Funds.--</DELETED>
<DELETED> ``(1) In general.--Funds in the Operating Fund
shall be used for application processing, loan disbursement,
enrollment and repayment status management, default prevention
activities (including those described in section 422(h)(8),
default collection activities, school and lender training,
compliance monitoring, and other student financial aid related
activities as determined by the Secretary.</DELETED>
<DELETED> ``(2) Special rule.--The guaranty agency may, in
the agency's discretion, transfer funds from the Operating Fund
to the Federal Student Loan Reserve Fund for use pursuant to
section 422A. Such transfer shall be irrevocable, and any funds
so transferred shall become the sole property of the United
States.</DELETED>
<DELETED> ``(3) Definitions.--For purposes of this
subsection:</DELETED>
<DELETED> ``(A) Default collection activities.--The
term `default collection activities' means activities
of a guaranty agency that are directly related to the
collection of the loan on which a default claim has
been paid to the participating lender, including the
attributable compensation of collection personnel (and
in the case of personnel who perform several functions
for such an agency only the portion of the compensation
attributable to the collection activity), attorney's
fees, fees paid to collection agencies, postage,
equipment, supplies, telephone, and similar
charges.</DELETED>
<DELETED> ``(B) Default prevention activities.--The
term `default prevention activities' means activities
of a guaranty agency, including those described in
section 422(h)(8), that are directly related to
providing collection assistance to the lender on a
delinquent loan, prior to the loan's being in a default
status, including the attributable compensation of
appropriate personnel (and in the case of personnel who
perform several functions for such an agency only the
portion of compensation attributable to the default
prevention activity), fees paid to locate a missing
borrower, postage, equipment, supplies, telephone, and
similar charges.</DELETED>
<DELETED> ``(C) Enrollment and repayment status
management.--The term `enrollment and repayment status
management' means activities of a guaranty agency that
are directly related to ascertaining the student's
enrollment status, including prompt notification to the
lender of such status, an audit of the note or written
agreement to determine if the provisions of that note
or agreement are consistent with the records of the
guaranty agency as to the principal amount of the loan
guaranteed, and an examination of the note or agreement
to assure that the repayment provisions are consistent
with the provisions of this title.</DELETED>
<DELETED> ``(e) Ownership of Operating Fund.--The Operating Fund,
with the exception of funds transferred from the Federal Student Loan
Reserve Fund in accordance with section 422A(f), shall be considered to
be the property of the guaranty agency. The Secretary may not regulate
the uses or expenditure of moneys in the Operating Fund, but the
Secretary may require such necessary reports and audits as provided in
section 428(b)(2). However, during any period in which funds are owed
to the Federal Student Loan Reserve Fund as a result of transfer under
422A(f), moneys in the Operating Fund may only be used for expenses
related to the student loan programs authorized under this
part.</DELETED>
<DELETED> ``(f) Authority of Secretary To Dispose of Nonliquid
Assets.--The Secretary may allow a guaranty agency to purchase
nonliquid assets of the agency originally acquired with student loan
reserve funds, except that an agency may not purchase any nonliquid
assets during any period in which funds are owed to the Federal Student
Loan Reserve Fund as a result of a transfer under section 422A(f). The
purchase amount shall be available for expenditure under section
458.''.</DELETED>
<DELETED>SEC. 424. APPLICABLE INTEREST RATES.</DELETED>
<DELETED> (a) Applicable Interest Rates.--</DELETED>
<DELETED> (1) Amendment.--Section 427A (20 U.S.C. 1077a et
seq.) is amended to read as follows:</DELETED>
<DELETED>``SEC. 427A. APPLICABLE INTEREST RATES.</DELETED>
<DELETED> ``(a) Interest Rates for New Loans On or After July 1,
1998.--</DELETED>
<DELETED> ``(1) In general.--Subject to paragraph (2), with
respect to any loan made, insured, or guaranteed under this
part (other than a loan made pursuant to section 428B or 428C)
for which the first disbursement is made on or after July 1,
1998, the applicable rate of interest shall, during any 12-
month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--</DELETED>
<DELETED> ``(A) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction held
prior to such June 1; plus</DELETED>
<DELETED> ``(B) 2.3 percent,</DELETED>
<DELETED>except that such rate shall not exceed 8.25
percent.</DELETED>
<DELETED> ``(2) In school and grace period rules.--With
respect to any loan under this part (other than a loan made
pursuant to section 428B or 428C) for which the first
disbursement is made on or after July 1, 1998, the applicable
rate of interest for interest which accrues--</DELETED>
<DELETED> ``(A) prior to the beginning of the
repayment period of the loan; or</DELETED>
<DELETED> ``(B) during the period in which principal
need not be paid (whether or not such principal is in
fact paid) by reason of a provision described in
section 428(b)(1)(M) or 427(a)(2)(C),</DELETED>
<DELETED>shall be determined under paragraph (1) by
substituting `1.7 percent' for `2.3 percent'.</DELETED>
<DELETED> ``(3) PLUS loans.--With respect to any loan under
section 428B for which the first disbursement is made on or
after July 1, 1998, the applicable rate of interest shall be
determined under paragraph (1)--</DELETED>
<DELETED> ``(A) by substituting `3.1 percent' for
`2.3 percent'; and</DELETED>
<DELETED> ``(B) by substituting `9.0 percent' for
`8.25 percent'.</DELETED>
<DELETED> ``(b) Lesser Rates Permitted.--Nothing in this section or
section 428C shall be construed to prohibit a lender from charging a
borrower interest at a rate less than the rate which is applicable
under this part.</DELETED>
<DELETED> ``(c) Consultation.--The Secretary shall determine the
applicable rate of interest under this section after consultation with
the Secretary of the Treasury and shall publish such rate in the
Federal Register as soon as practicable after the date of
determination.''.</DELETED>
<DELETED> (2) Conforming amendment.--Section 428B(d)(4) (20
U.S.C. 1078-2(d)(4)) is amended by striking ``section 427A(c)''
and inserting ``section 427A(a)(3)''.</DELETED>
<DELETED> (b) Special Allowances.--</DELETED>
<DELETED> (1) Amendment.--Section 438(b)(2)(F) (20 U.S.C.
1087-1(b)(2)(F)) is amended to read as follows:</DELETED>
<DELETED> ``(F) Loans disbursed after july 1, 1998.--
</DELETED>
<DELETED> ``(i) In general.--Subject to paragraph
(4) and clauses (ii), (iii), and (iv) of this
subparagraph, the special allowance paid pursuant to
this subsection on loans for which the first
disbursement is made on or after July 1, 1998, shall be
computed--</DELETED>
<DELETED> ``(I) by determining the average
of the bond equivalent rates of 91-day Treasury
bills auctioned for such 3-month
period;</DELETED>
<DELETED> ``(II) by subtracting the
applicable interest rates on such loans from
such average bond equivalent rate;</DELETED>
<DELETED> ``(III) by adding 2.8 percent to
the resultant percent; and</DELETED>
<DELETED> ``(IV) by dividing the resultant
percent by 4.</DELETED>
<DELETED> ``(ii) In school and grace period.--In the
case of any loan for which the first disbursement is
made on or after July 1, 1998, and for which the
applicable rate of interest is described in section
427A(a)(2), clause (i)(III) of this subparagraph shall
be applied by substituting `2.2 percent' for `2.8
percent'.</DELETED>
<DELETED> ``(iii) PLUS loans.--In the case of any
loan for which the first disbursement is made on or
after July 1, 1998, and for which the applicable rate
of interest is described in section 427A(a)(3), clause
(i)(III) of this subparagraph shall be applied by
substituting `3.1 percent' for `2.8 percent', subject
to clause (iv) of this subparagraph.</DELETED>
<DELETED> ``(iv) Limitation on special allowances
for plus loans.--In the case of loans disbursed on or
after July 1, 1998, for which the interest rate is
determined under section 427A(a)(3), a special
allowance shall not be paid for a loan made under
section 428B unless the rate determined for any 12-
month period under section 427A(a)(3) exceeds 9
percent.''.</DELETED>
<DELETED> (2) Conforming amendment.--Section
438(b)(2)(C)(ii) is amended by striking ``In the case'' and
inserting ``Subject to subparagraph (F), in the
case''.</DELETED>
<DELETED> (c) Effective Date.--The amendments made by this section
shall apply with respect to any loan made, insured, or guaranteed under
part B of title IV of the Higher Education Act of 1965 for which the
first disbursement is made on or after July 1, 1998.</DELETED>
<DELETED>SEC. 425. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST
COSTS.</DELETED>
<DELETED> (a) Federal Interest Subsidies.--Section 428(a) (20 U.S.C.
1078(a)) is amended--</DELETED>
<DELETED> (1) in paragraph (2)--</DELETED>
<DELETED> (A) in subparagraph (A)--</DELETED>
<DELETED> (i) in clause (i), by striking
subclauses (I), (II), and (III) and inserting
the following:</DELETED>
<DELETED> ``(I) sets forth the loan amount
for which the student shows financial need;
and</DELETED>
<DELETED> ``(II) sets forth a schedule for
disbursement of the proceeds of the loan in
installments, consistent with the requirements
of section 428G; and''; and</DELETED>
<DELETED> (ii) by amending clause (ii) to
read as follows:</DELETED>
<DELETED> ``(ii) meets the requirements of
subparagraph (B); and'';</DELETED>
<DELETED> (B) by amending subparagraph (B) to read
as follows:</DELETED>
<DELETED> ``(B) For the purpose of clause (ii) of
subparagraph (A), a student shall qualify for a portion of an
interest payment under paragraph (1) (and a loan amount
pursuant to section 428H) if the eligible institution has
determined and documented the student's amount of need for a
loan based on the student's estimated cost of attendance,
estimated financial assistance, and, for the purpose of an
interest payment pursuant to this section, the expected family
contribution (as determined under part F), subject to the
provisions of subparagraph (D).''; and</DELETED>
<DELETED> (C) by amending subparagraph (C) to read
as follows:</DELETED>
<DELETED> ``(C) For the purpose of subparagraph (B) and this
paragraph--</DELETED>
<DELETED> ``(i) a student's cost of attendance shall
be determined under section 472;</DELETED>
<DELETED> ``(ii) a student's estimated financial
assistance means, for the period for which the loan is
sought, the amount of assistance such student will
receive under subpart 1 of part A (as determined in
accordance with section 484(b)), subpart 3 of part A,
parts C and E, and any veterans' education benefits
paid because of enrollment in a postsecondary education
institution, including veterans' education benefits (as
defined in section 480(c)), plus other scholarship,
grant, or loan assistance; and</DELETED>
<DELETED> ``(iii) the determination of need and of
the amount of a loan by an eligible institution under
subparagraph (B) with respect to a student shall, with
the exception of loans made under section 428H, be
calculated in accordance with part F.''; and</DELETED>
<DELETED> (2) in paragraph (3)(A)(v)--</DELETED>
<DELETED> (A) in subclause (I), by inserting ``by
the institution'' after ``disbursement''; and</DELETED>
<DELETED> (B) in clause (II), by inserting ``by the
institution'' after ``disbursement''.</DELETED>
<DELETED> (b) Insurance Program Agreements.--Section 428(b) (20
U.S.C. 1078(b)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) in subparagraph (A)--</DELETED>
<DELETED> (i) in the matter preceding clause
(i), by inserting ``, as defined in section
481(d)(2),'' after ``academic year'';</DELETED>
<DELETED> (ii) in clause (iv), by striking
``and'' after the semicolon;</DELETED>
<DELETED> (iii) in clause (v), by inserting
``and'' after the semicolon; and</DELETED>
<DELETED> (iv) by inserting before the
matter following clause (v) the
following:</DELETED>
<DELETED> ``(vi) in the case of a student
enrolled in coursework specified in sections
484(b)(3)(B) and 484(b)(4)(B)--</DELETED>
<DELETED> ``(I) $2,625 for
coursework necessary for enrollment in
an undergraduate degree or certificate
program, and $5,500 for coursework
necessary for enrollment in a graduate
or professional degree or certification
program; and</DELETED>
<DELETED> ``(II) $5,500 for
coursework necessary for a professional
credential or certification from a
State required for employment as a
teacher in an elementary or secondary
school;'';</DELETED>
<DELETED> (B) by amending subparagraph (E) to read
as follows:</DELETED>
<DELETED> ``(E) subject to subparagraphs (D) and
(L), and except as provided by subparagraph (M),
provides that--</DELETED>
<DELETED> ``(i) not more than 6 months prior
to the date on which the borrower's first
payment is due, the lender shall offer the
borrower of a loan made, insured, or guaranteed
under this section or section 428H, the option
of repaying the loan in accordance with a
graduated, income-sensitive, or extended
repayment schedule (as described in paragraph
(9)) established by the lender in accordance
with regulations provided by the Secretary;
and</DELETED>
<DELETED> ``(ii) repayment of loans shall be
in installments in accordance with the
repayment plan selected under paragraph (9) and
commencing at the beginning of the repayment
period determined under paragraph
(7)'';</DELETED>
<DELETED> (C) in subparagraph (L)(i), by inserting
``except as otherwise provided by a repayment plan
selected by the borrower under clause (ii) or (iii) of
paragraph (9)(A),'' before ``during any'';
and</DELETED>
<DELETED> (D) in subparagraph (U)(iii)(I), by
inserting ``that originates or holds more than
$5,000,000 in loans made under this title for any
fiscal year,'' before ``at least once a year'';
and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(9) Repayment plans.--</DELETED>
<DELETED> ``(A) Design and selection.--In accordance
with regulations promulgated by the Secretary, the
lender shall offer a borrower of a loan made under this
part the plans described in this subparagraph for
repayment of such loan, including principal and
interest thereon. Except as provided in paragraph
(1)(L)(i), no plan may require a borrower to repay a
loan in less than 5 years. The borrower may choose
from--</DELETED>
<DELETED> ``(i) a standard repayment plan,
with a fixed annual repayment amount paid over
a fixed period of time, not to exceed 10
years;</DELETED>
<DELETED> ``(ii) a graduated repayment plan
paid over a fixed period of time, not to exceed
10 years;</DELETED>
<DELETED> ``(iii) an income-sensitive
repayment plan, with income-sensitive repayment
amounts paid over a fixed period of time, not
to exceed 10 years, except that the borrower's
scheduled payments shall not be less than the
amount of interest due; and</DELETED>
<DELETED> ``(iv) for first-time borrowers on
or after the date of enactment of the Higher
Education Amendments of 1998 with outstanding
loans under this part totaling more than
$30,000, an extended repayment plan, with a
fixed annual or graduated repayment amount paid
over an extended period of time, not to exceed
25 years, except that the borrower shall repay
annually a minimum amount determined in
accordance with paragraph (2)(L).</DELETED>
<DELETED> ``(B) Lender selection of option if
borrower does not select.--If a borrower of a loan made
under this part does not select a repayment plan
described in subparagraph (A), the lender shall provide
the borrower with a repayment plan described in
subparagraph (A)(i).</DELETED>
<DELETED> ``(C) Changes in selection.--The borrower
of a loan made under this part may change the
borrower's selection of a repayment plan under
subparagraph (B), as the case may be, under such
conditions as may be prescribed by the Secretary in
regulation.</DELETED>
<DELETED> ``(D) Acceleration permitted.--Under any
of the plans described in this paragraph, the borrower
shall be entitled to accelerate, without penalty,
repayment on the borrower's loans under this
part.''.</DELETED>
<DELETED> (c) Guaranty Agreements for Reimbursing Losses.--Section
428(c) (20 U.S.C. 1078(c)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) in the fourth sentence of subparagraph
(A), by striking ``as reimbursement under this
subsection shall be equal to 98 percent'' and inserting
``as reimbursement for loans for which the first
disbursement is made on or after the date of enactment
of the Higher Education Amendments of 1998 shall be
equal to 95 percent'';</DELETED>
<DELETED> (B) in subparagraph (B)--</DELETED>
<DELETED> (i) in clause (i), by striking
``88 percent of the amount of such excess'' and
inserting ``85 percent of the amount of such
excess for loans for which the first
disbursement is made on or after the date of
enactment of the Higher Education Amendments of
1998''; and</DELETED>
<DELETED> (ii) in clause (ii), by striking
``78 percent of the amount of such excess'' and
inserting ``75 percent of the amount of such
excess for loans for which the first
disbursement is made on or after the date of
enactment of the Higher Education Amendments of
1998'';</DELETED>
<DELETED> (C) in subparagraph (E)--</DELETED>
<DELETED> (i) in clause (i), by striking
``98 percent'' and inserting ``95
percent'';</DELETED>
<DELETED> (ii) in clause (ii), by striking
``88 percent'' and inserting ``85 percent'';
and</DELETED>
<DELETED> (iii) in clause (iii), by striking
``78 percent'' and inserting ``75 percent'';
and</DELETED>
<DELETED> (D) in subparagraph (F)--</DELETED>
<DELETED> (i) in clause (i), by striking
``98 percent'' and inserting ``95 percent'';
and</DELETED>
<DELETED> (ii) in clause (ii), by striking
``88 percent'' and inserting ``85
percent'';</DELETED>
<DELETED> (2) in paragraph (3)--</DELETED>
<DELETED> (A) in subparagraph (A)(i), by inserting
``or electronic'' after ``written'';</DELETED>
<DELETED> (B) in subparagraph (B), by striking
``and'' after the semicolon;</DELETED>
<DELETED> (C) in subparagraph (C), by striking the
period and inserting ``; and''; and</DELETED>
<DELETED> (D) by inserting before the matter
following subparagraph (C) the following:</DELETED>
<DELETED> ``(D) shall contain provisions that
specify that forbearance for a period not to exceed 60
days may be granted if the lender determines that such
a suspension of collection activity is warranted
following a borrower's request for forbearance in order
to collect or process appropriate supporting
documentation related to the request, and that during
such period interest shall not be
capitalized.'';</DELETED>
<DELETED> (3) by amending paragraph (6) to read as
follows:</DELETED>
<DELETED> ``(6) Secretary's equitable share.--For the
purpose of paragraph (2)(D), the Secretary's equitable share of
payments made by the borrower shall be that portion of the
payments remaining after the guaranty agency with which the
Secretary has an agreement under this subsection has deducted
from such payments--</DELETED>
<DELETED> ``(A) a percentage amount equal to the
complement of the reinsurance percentage in effect when
payment in effect when payment under the guaranty
agreement was made with respect to the loan;
and</DELETED>
<DELETED> ``(B) an amount equal to 24 percent of
such payments for use in accordance with section
422B.'';</DELETED>
<DELETED> (4) in paragraph (8)--</DELETED>
<DELETED> (A) by striking ``(A) If'' and inserting
``If''; and</DELETED>
<DELETED> (B) by striking subparagraph (B);
and</DELETED>
<DELETED> (5) in paragraph (9)--</DELETED>
<DELETED> (A) in subparagraph (A), by striking
``maintain a current minimum reserve level of at least
.5 percent'' and inserting ``maintain in the agency's
Federal Student Loan Reserve Fund established under
section 422A a current minimum reserve level of at
least 0.25 percent'';</DELETED>
<DELETED> (B) in subparagraph (C)--</DELETED>
<DELETED> (i) by striking ``80 percent'' and
inserting ``78 percent'';</DELETED>
<DELETED> (ii) by striking ``, as
appropriate,''; and</DELETED>
<DELETED> (iii) by striking ``30 working''
and inserting ``45 working'';</DELETED>
<DELETED> (C) in subparagraph (E)--</DELETED>
<DELETED> (i) in clause (iv), by inserting
``or'' after the semicolon;</DELETED>
<DELETED> (ii) in clause (v), by striking
``; or'' and inserting a period; and</DELETED>
<DELETED> (iii) by striking clause
(vi);</DELETED>
<DELETED> (D) in subparagraph (F), by amending
clause (vii) to read as follows:</DELETED>
<DELETED> ``(vii) take any other action the
Secretary determines necessary to avoid disruption of
the student loan program, to ensure the
continued availability of loans made under this part to residents of
each State in which the guaranty agency did business, to ensure the
full honoring of all guarantees issued by the guaranty agency prior to
the Secretary's assumption of the functions of such agency, and to
ensure the proper servicing of loans guaranteed by the guaranty agency
prior to the Secretary's assumption of the functions of such agency.'';
and</DELETED>
<DELETED> (E) in subparagraph (K), by striking ``and
the progress of the transition from the loan programs
under this part to the direct student loan programs
under part D of this title''.</DELETED>
<DELETED> (d) Payment for Lender Referral Services.--Subsection (e)
of section 428 (20 U.S.C. 1078) is repealed.</DELETED>
<DELETED> (e) Payment of Certain Costs.--Subsection (f) of section
428 (20 U.S.C. 1078) is amended to read as follows:</DELETED>
<DELETED> ``(f) Payments of Certain Costs.--</DELETED>
<DELETED> ``(1) Payment for certain activities.--</DELETED>
<DELETED> ``(A) In general.--The Secretary, for
loans originated on or after October 1, 1998, and in
accordance with the provisions of this paragraph, shall
pay to each guaranty agency, a loan processing and
issuance fee equal to 0.65 percent of the total
principal amount of the loans on which insurance was
issued under this part during such fiscal year by such
agency.</DELETED>
<DELETED> ``(B) Payment.--The payment required by
subparagraph (A) shall be paid on a quarterly basis.
The guaranty agency shall be deemed to have a
contractual right against the United States to receive
payments according to the provisions of this
subparagraph. Payments shall be made promptly and
without administrative delay to any guaranty agency
submitting an accurate and complete application
therefore under this subparagraph.''.</DELETED>
<DELETED> (f) Lenders-of-Last-Resort.--Paragraph (3) of section
428(j) (20 U.S.C. 1078(j)) is amended--</DELETED>
<DELETED> (1) in the paragraph heading, by striking ``during
transition to direct lending''; and</DELETED>
<DELETED> (2) in subparagraph (A), by striking ``during the
transition from the Federal Family Education Loan Program under
this part to the Federal Direct Student Loan Program under part
D of this title'';</DELETED>
<DELETED> (g) Default Aversion Assistance.--Subsection (l) of
section 428 (20 U.S.C. 1078) is amended to read as follows:</DELETED>
<DELETED> ``(l) Default Aversion Assistance.--</DELETED>
<DELETED> ``(1) Assistance required.--Upon receipt of a
proper request from the lender not earlier than the 60th nor
later than the 90th day of delinquency, a guaranty agency
having an agreement with the Secretary under subsection (c)
shall engage in default aversion activities designed to prevent
the default by a borrower on a loan covered by such
agreement.</DELETED>
<DELETED> ``(2) Default prevention fee required.--</DELETED>
<DELETED> ``(A) In general.--A guaranty agency, in
accordance with the provisions of this paragraph, may
transfer from the Federal Student Loan Reserve Fund to
the Agency Operating Fund a default prevention fee.
Such fee shall be paid for any loan on which a claim
for default has not been presented that the guaranty
agency successfully brings into current repayment
status on or before the 210th day after the loan
becomes 60 days delinquent.</DELETED>
<DELETED> ``(B) Amount.--The default prevention fee
shall be equal to 1 percent of the total unpaid
principal and accrued interest on the loan calculated
at the time the request is submitted by the lender.
Such fee shall not be paid more than once on any loan
for which the guaranty agency averts the default unless
the borrower remained current in payments for at least 24 months prior
to the subsequent delinquency. A guaranty agency may transfer such fees
earned under this subsection not more frequently than
monthly.</DELETED>
<DELETED> ``(C) Definition of current repayment
status.--For the purpose of this paragraph, the term
`current repayment status' means that the borrower is
not delinquent, in any respect, in the payment of
principal and interest on the loan at the time the
guaranty agency qualifies for the default prevention
fee.''.</DELETED>
<DELETED> (h) State Share of Default Costs.--Subsection (n) of
section 428 (20 U.S.C. 1078) is repealed.</DELETED>
<DELETED>SEC. 426. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY
AGENCIES.</DELETED>
<DELETED> Part B of title IV (20 U.S.C. 1071 et seq.) is amended by
inserting after section 428 (20 U.S.C. 1078) the following:</DELETED>
<DELETED>``SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY
AGENCIES.</DELETED>
<DELETED> ``(a) Voluntary Agreements.--</DELETED>
<DELETED> ``(1) Authority.--The Secretary may enter into a
voluntary, flexible agreement, subject to paragraph (2), with
guaranty agencies under this section, in lieu of agreements
with a guaranty agency under subsections (b) and (c) of section
428. The Secretary may waive or modify any requirement under
such subsections, except that the Secretary may not waive any
statutory requirement pertaining to the terms and conditions
attached to student loans, default claim payments made to
lenders, or the prohibitions on inducements contained in
section 428(b)(3).</DELETED>
<DELETED> ``(2) Eligibility.--During fiscal years 1999,
2000, and 2001, the Secretary may enter into a voluntary,
flexible agreement with not more than 6 guaranty agencies that
had 1 or more agreements with the Secretary under subsections
(b) and (c) of section 428 as of the day before the date of
enactment of the Higher Education Amendments of 1998. Beginning
in fiscal year 2002, any guaranty agency or consortium thereof
may enter into a similar agreement with the
Secretary.</DELETED>
<DELETED> ``(3) Report required.--Not later than September
30, 2001, the Secretary shall report to the Committee on Labor
and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives
regarding the impact that the voluntary flexible agreements
have had upon program integrity, program and cost efficiencies,
and the availability and delivery of student financial aid.
Such report shall include--</DELETED>
<DELETED> ``(A) a description of each voluntary
flexible agreement and the performance goals
established by the Secretary for each
agreement;</DELETED>
<DELETED> ``(B) a list of participating guaranty
agencies and the specific statutory or regulatory
waivers provided to each guaranty agency;</DELETED>
<DELETED> ``(C) a description of the standards by
which each agency's performance under the agency's
voluntary flexible agreement was assessed and the
degree to which each agency achieved the performance
standards; and</DELETED>
<DELETED> ``(D) an analysis of the fees paid by the
Secretary, and the costs and efficiencies achieved
under each voluntary agreement.</DELETED>
<DELETED> ``(b) Terms of Agreement.--An agreement between the
Secretary and a guaranty agency under this section--</DELETED>
<DELETED> ``(1) shall be developed by the Secretary, in
consultation with the guaranty agency, on a case-by case
basis;</DELETED>
<DELETED> ``(2) may be secured by the parties;</DELETED>
<DELETED> ``(3) may include provisions--</DELETED>
<DELETED> ``(A) specifying the responsibilities of
the guaranty agency under the agreement, such as--
</DELETED>
<DELETED> ``(i) administering the issuance
of insurance on loans made under this part on
behalf of the Secretary;</DELETED>
<DELETED> ``(ii) monitoring insurance
commitments made under this part;</DELETED>
<DELETED> ``(iii) default aversion
activities;</DELETED>
<DELETED> ``(iv) review of default claims
made by lenders;</DELETED>
<DELETED> ``(v) payment of default
claims;</DELETED>
<DELETED> ``(vi) collection of defaulted
loans;</DELETED>
<DELETED> ``(vii) adoption of internal
systems of accounting and auditing that are
acceptable to the Secretary, and reporting the
result thereof to the Secretary in a timely
manner, and on an accurate, and auditable
basis;</DELETED>
<DELETED> ``(viii) timely and accurate
collection and reporting of such other data as
the Secretary may require to carry out the
purposes of the programs under this
title;</DELETED>
<DELETED> ``(ix) monitoring of institutions
and lenders participating in the program under
this part;</DELETED>
<DELETED> ``(x) the performance of other
program functions by the guaranty agency or the
agency's affiliates; and</DELETED>
<DELETED> ``(xi) informational outreach to
schools and students in support of access to
higher education;</DELETED>
<DELETED> ``(B) regarding the fees the Secretary
shall pay, in lieu of revenues that the guaranty agency
may otherwise receive under this part, to the guaranty
agency under the agreement, and other funds that the
guaranty agency may receive or retain under the
agreement, except that in no case may the cost to the
Secretary of the agreement, as reasonably projected by
the Secretary, exceed the cost to the Secretary, as
similarly projected, in the absence of the
agreement;</DELETED>
<DELETED> ``(C) regarding the use of net revenues,
as described in the agreement under this section, for
such other activities in support of postsecondary
education as may be agreed to by the Secretary and the
guaranty agency;</DELETED>
<DELETED> ``(D) regarding the standards by which the
guaranty agency's performance of the agency's
responsibilities under the agreement will be assessed,
and the consequences for a guaranty agency's failure to
achieve a specified level of performance on one or more
performance standards;</DELETED>
<DELETED> ``(E) regarding the circumstances in which
a guaranty agency's agreement under this section may be
ended in advance of the agency's expiration
date;</DELETED>
<DELETED> ``(F) regarding such other businesses,
previously purchased or developed with reserve funds,
that relate to the program under this part and in which
the Secretary permits the guaranty agency to engage;
and</DELETED>
<DELETED> ``(G) such other provisions as the
Secretary may determine to be necessary to protect the
United States from the risk of unreasonable loss and to
promote the purposes of this part; and</DELETED>
<DELETED> ``(4) shall provide for uniform lender
participation with the guaranty agency under the terms of the
agreement.</DELETED>
<DELETED> ``(c) Termination.--At the expiration or early termination
of an agreement under this section, the Secretary shall reinstate the
guaranty agency's prior agreements under subsections (b) and (c) of
section 428, subject only to such additional requirements as the
Secretary determines to be necessary in order to ensure the efficient
transfer of responsibilities between the agreement under this section
and the agreements under subsections (b) and (c) of section 428, and
including the guaranty agency's compliance with reserve requirements
under sections 422 and 428.''.</DELETED>
<DELETED>SEC. 427. FEDERAL PLUS LOANS.</DELETED>
<DELETED> Section 428B (20 U.S.C. 1078-2) is amended--</DELETED>
<DELETED> (1) by amending subsection (a) to read as
follows:</DELETED>
<DELETED> ``(a) Authority To Borrow.--</DELETED>
<DELETED> ``(1) Authority and eligibility.--Parents of a
dependent student shall be eligible to borrow funds under this
section in amounts specified in subsection (b), if--</DELETED>
<DELETED> ``(A) the parents do not have an adverse
credit history as determined pursuant to regulations
promulgated by the Secretary; and</DELETED>
<DELETED> ``(B) the parents meet such other
eligibility criteria as the Secretary may establish by
regulation, after consultation with guaranty agencies,
eligible lenders, and other organizations involved in
student financial assistance.</DELETED>
<DELETED> ``(2) Terms, conditions, and benefits.--Except as
provided in subsections (c), (d), and (e), loans made under
this section shall have the same terms, conditions, and
benefits as all other loans made under this part.</DELETED>
<DELETED> ``(3) Special rule.--Whenever necessary to carry
out the provisions of this section, the terms ``student'' and
``borrower'' as used in this part shall include a parent
borrower under this section.''; and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(f) Verification of Immigration Status and Social
Security Number.--A parent who wishes to borrow funds under this
section shall be subject to verification of the parent's--</DELETED>
<DELETED> ``(1) immigration status in the same manner as
immigration status is verified for students under section
484(g); and</DELETED>
<DELETED> ``(2) social security number in the same manner as
social security numbers are verified for students under section
484(p).''.</DELETED>
<DELETED>SEC. 428. FEDERAL CONSOLIDATION LOANS.</DELETED>
<DELETED> Section 428C(a)(3) (20 U.S.C. 1078-3(a)(3)) is amended--
</DELETED>
<DELETED> (1) by amending subparagraph (A) to read as
follows: ``(A) For the purpose of this section, the term
`eligible borrower' means a borrower who--</DELETED>
<DELETED> ``(i) is not subject to a judgment secured
through litigation or an order for wage garnishment
under section 488A; or</DELETED>
<DELETED> ``(ii) at the time of application for a
consolidation loan--</DELETED>
<DELETED> ``(I) is in repayment
status;</DELETED>
<DELETED> ``(II) is in a grace period
preceding repayment; or</DELETED>
<DELETED> ``(III) is a defaulted borrower
who has made arrangements to repay the
obligation on the defaulted loans satisfactory
to the holders of the defaulted loans.'';
and</DELETED>
<DELETED> (2) in subparagraph (B)(i)--</DELETED>
<DELETED> (A) in subclause (I), by striking ``and''
after the semicolon;</DELETED>
<DELETED> (B) by redesignating subclause (II) as
subclause (III);</DELETED>
<DELETED> (C) by inserting after subclause (I) the
following:</DELETED>
<DELETED> ``(II) with respect to eligible student
loans received prior to the date of consolidation that
the borrower may wish to include with eligible loans
specified in subclause (I) in a later consolidation
loan; and''; and</DELETED>
<DELETED> (D) in subclause (III) (as redesignated by
subparagraph (B)--</DELETED>
<DELETED> (i) by striking ``that loans'' and
inserting ``with respect to loans'';
and</DELETED>
<DELETED> (ii) by inserting ``that'' before
``may be added''.</DELETED>
<DELETED>SEC. 429. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT
LOANS.</DELETED>
<DELETED> Section 428G (20 U.S.C. 1078G) is amended--</DELETED>
<DELETED> (1) in subsection (a)(1), by striking ``The
proceeds'' and inserting ``Except for a loan made for the final
period of enrollment, that is less than an academic year, in a
student's baccalaureate program of study, at an institution
with a cohort default rate (as calculated under section 435(m))
that is 5 percent or less, the proceeds''; and</DELETED>
<DELETED> (2) in subsection (b)(1), by striking ``The
first'' and inserting ``Except for a loan made to a student
borrower entering an institution with a cohort default rate (as
calculated under section 435(m)) of less than 5 percent, the
first''.</DELETED>
<DELETED>SEC. 430. DEFAULT REDUCTION PROGRAM.</DELETED>
<DELETED> The heading for subsection (b) of section 428F (20 U.S.C.
1078-6) is amended by striking ``Special Rule'' and inserting
``Satisfactory Repayment Arrangements To Renew Eligibility''.</DELETED>
<DELETED>SEC. 431. UNSUBSIDIZED LOANS.</DELETED>
<DELETED> Section 428H (20 U.S.C. 1078-8) is amended--</DELETED>
<DELETED> (1) by amending subsection (b) to read as
follows:</DELETED>
<DELETED> ``(b) Eligible Borrowers.--Any student meeting the
requirements for student eligibility under section 484 (including
graduate and professional students as defined in regulations
promulgated by the Secretary) shall be entitled to borrow an
unsubsidized Stafford loan if the eligible institution at which the
student has been accepted for enrollment, or at which the student is in
attendance, has--</DELETED>
<DELETED> ``(1) determined and documented the student's need
for the loan based on the student's estimated cost of
attendance (as determined under section 472) and the student's
estimated financial assistance, including a loan which
qualifies for interest subsidy payments under section 428;
and</DELETED>
<DELETED> ``(2) provided the lender a statement--</DELETED>
<DELETED> ``(A) certifying the eligibility of the
student to receive a loan under this section and the
amount of the loan for which such student is eligible,
in accordance with subsection (c); and</DELETED>
<DELETED> ``(B) setting forth a schedule for
disbursement of the proceeds of the loan in
installments, consistent with the requirements of
section 428G.'';</DELETED>
<DELETED> (2) in subsection (d)--</DELETED>
<DELETED> (A) in paragraph (2)--</DELETED>
<DELETED> (i) in the matter preceding
subparagraph (A)--</DELETED>
<DELETED> (I) by inserting ``, as
defined in section 481(d)(2),'' after
``academic year''; and</DELETED>
<DELETED> (II) by striking ``or in
any period of 7 consecutive months,
whichever is longer,'';</DELETED>
<DELETED> (ii) in subparagraph (C), by
inserting ``and'' after the semicolon;
and</DELETED>
<DELETED> (iii) by inserting before the
matter following subparagraph (C) the
following:</DELETED>
<DELETED> ``(D) in the case of a student enrolled in
coursework specified in sections 484(b)(3)(B) and
484(b)(4)(B)--</DELETED>
<DELETED> ``(i) $4,000 for coursework
necessary for enrollment in an undergraduate
degree or certificate program, and $5,000 for
coursework necessary for enrollment in a
graduate or professional program; and</DELETED>
<DELETED> ``(ii) $5,000 for coursework
necessary for a professional credential or
certification from a State required for
employment as a teacher in an elementary or
secondary school;''; and</DELETED>
<DELETED> (B) in paragraph (3), by adding at the end
the following: ``The maximum aggregate amount shall not
include interest capitalized from an in-school
period.''; and</DELETED>
<DELETED> (3) in subsection (e)(6), by striking ``10 year
repayment period under section 428(b)(1)(D)'' and inserting
``repayment period under section 428(b)(9)''.</DELETED>
<DELETED>SEC. 432. LOAN FORGIVENESS FOR TEACHERS.</DELETED>
<DELETED> Section 428J (20 U.S.C. 1078-10) is amended to read as
follows:</DELETED>
<DELETED>``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.</DELETED>
<DELETED> ``(a) Statement of Purpose.--It is the purpose of this
section to encourage individuals to enter and continue in the teaching
profession.</DELETED>
<DELETED> ``(b) Program Authorized.--The Secretary is authorized to
carry out a program, through the holder of the loan, of assuming the
obligation to repay a loan made under section 428 that is eligible for
interest subsidy, for any new borrower on or after the date of
enactment of the Higher Education Amendments of 1998, who--</DELETED>
<DELETED> ``(1) has been employed as a full-time teacher for
3 consecutive complete school years--</DELETED>
<DELETED> ``(A) in a school that qualifies under
section 465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such schools;</DELETED>
<DELETED> ``(B) if employed as a secondary school
teacher, is teaching a subject area that is relevant to
the borrower's academic major as certified by the chief
administrative officer of the public or nonprofit
private secondary school in which the borrower is
employed; and</DELETED>
<DELETED> ``(C) if employed as an elementary school
teacher, has demonstrated, in accordance with State
teacher certification or licensing requirements and as
certified by the chief administrative officer of the
public or nonprofit private elementary school in which
the borrower is employed, knowledge and teaching skills
in reading, writing, mathematics and other areas of the
elementary school curriculum; and</DELETED>
<DELETED> ``(2) is not in default on a loan for which the
borrower seeks forgiveness.</DELETED>
<DELETED> ``(c) Regulations.--The Secretary is authorized to issue
such regulations as may be necessary to carry out the provisions of
this section.</DELETED>
<DELETED> ``(d) Loan Repayment During Continuing Teaching Service.--
</DELETED>
<DELETED> ``(1) In general.--The Secretary shall assume the
obligation to repay through reimbursement to the holder--
</DELETED>
<DELETED> ``(A) 30 percent of the total outstanding
amount and applicable interest of subsidized Federal
Stafford loans owed by the student borrower after the
completion of the fourth or fifth complete school year
of service described in subsection (b);</DELETED>
<DELETED> ``(B) 40 percent of such total amount
after the completion of the sixth complete school year
of such service; and</DELETED>
<DELETED> ``(C) a total amount for any borrower that
shall not exceed $10,000.</DELETED>
<DELETED> ``(2) Construction.--Nothing in this section shall
be construed to authorize any refunding of any repayment of a
loan.</DELETED>
<DELETED> ``(e) List.--If the list of schools in which a teacher may
perform service pursuant to subsection (b) is not available before May
1 of any year, the Secretary may use the list for the year preceding
the year for which the determination is made to make such service
determination.</DELETED>
<DELETED> ``(f) Continued Eligibility.--Any teacher who performs
service in a school that--</DELETED>
<DELETED> ``(1) meets the requirements of subsection
(b)(1)(A) in any year during such service; and</DELETED>
<DELETED> ``(2) in a subsequent year fails to meet the
requirements of such subsection, may continue to teach in such
school and shall be eligible for loan forgiveness pursuant to
subsection (b).''.</DELETED>
<DELETED>SEC. 433. COMMON FORMS AND FORMATS.</DELETED>
<DELETED> Section 432(m)(1) (20 U.S.C. 1082(m)(1)) is amended--
</DELETED>
<DELETED> (1) in subparagraph (A), by striking ``a common
application form and promissory note'' and inserting ``common
application forms and promissory notes, or multiyear promissory
notes,'';</DELETED>
<DELETED> (2) by striking subparagraph (C);</DELETED>
<DELETED> (3) by redesignating subparagraph (D) as
subparagraph (C); and</DELETED>
<DELETED> (4) in subparagraph (C) (as redesignated by
paragraph (3))--</DELETED>
<DELETED> (A) by inserting ``, application and
other'' after ``electronic''; and</DELETED>
<DELETED> (B) by adding at the end the following:
``Guaranty agencies, borrowers, and lenders may use
electronically printed versions of common forms
approved for use by the Secretary.''.</DELETED>
<DELETED>SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE
LENDERS.</DELETED>
<DELETED> Section 433 (20 U.S.C. 1083) is amended--</DELETED>
<DELETED> (1) in subsection (a), by amending the matter
preceding paragraph (1) to read as follows:</DELETED>
<DELETED> ``(a) Required Disclosure Before Disbursement.--Each
eligible lender shall, at or prior to the time such lender disburses a
loan that is insured or guaranteed under this part (other than a loan
made under section 428C), provide thorough and accurate loan
information on such loan to the borrower. Any disclosure required by
this subsection may be made by an eligible lender by written or
electronic means, including as part of the application material
provided to the borrower, as part of the promissory note evidencing the
loan, or on a separate written form provided to the borrower. Each
lender shall provide a telephone number, and may provide an electronic
address, to each borrower through which additional loan information can
be obtained. The disclosure shall include--''; and</DELETED>
<DELETED> (2) in subsection (b), by amending the matter
preceding paragraph (1) to read as follows:</DELETED>
<DELETED> ``(b) Required Disclosure Before Repayment.--Each eligible
lender shall, at or prior to the start of the repayment period of the
student borrower on loans made, insured, or guaranteed under this part,
disclose to the borrower by written or electronic means the information
required under this subsection. Each eligible lender shall provide a
telephone number, and may provide an electronic address, to each
borrower through which additional loan information can be obtained. For
any loan made, insured, or guaranteed under this part, other than a
loan made under section 428B or 428C, such disclosure required by this
subsection shall be made not less than 30 days nor more than 240 days
before the first payment on the loan is due from the borrower. The
disclosure shall include--''.</DELETED>
<DELETED>SEC. 435. DEFINITIONS.</DELETED>
<DELETED> (a) Eligible Institution.--Section 435(a) (20 U.S.C.
1085(a)) is amended--</DELETED>
<DELETED> (1) in paragraph (2)--</DELETED>
<DELETED> (A) by adding after the matter following
subparagraph (A)(ii) the following:</DELETED>
<DELETED>``If an institution continues to participate in a
program under this part, and the institution's appeal of the
loss of eligibility is unsuccessful, the institution shall be
required to pay to the Secretary an amount equal to the amount
of interest, special allowance, reinsurance, and any related
payments made by the Secretary (or which the Secretary is
obligated to make) with respect to loans made under this part
to students attending, or planning to attend, that institution
during the pendency of such appeal. In order to continue to
participate during an appeal under this paragraph, the
institution shall provide a letter of credit in favor of the
Secretary or other third-party financial guarantees
satisfactory to the Secretary in an amount determined by the
Secretary to be sufficient to satisfy the institution's
potential liability on such loans under the preceding
sentence.''; and</DELETED>
<DELETED> (B) by amending subparagraph (C) to read
as follows:</DELETED>
<DELETED> ``(C)(i) This paragraph shall not apply to any
institution described in clause (ii), and any such institution
that exceeds the threshold percentage in subparagraph (A)(ii)
for 2 consecutive years shall submit to the Secretary a default
management plan satisfactory to the Secretary and containing
criteria designed, in accordance with the regulations of the
Secretary, to demonstrate continuous improvement by the
institution in the institution's cohort default rate. If the
institution fails to submit the required plan, or to satisfy
the criteria in the plan, the institution shall be subject to a
loss of eligibility in accordance with this paragraph, except
as the Secretary may otherwise specify in
regulations.</DELETED>
<DELETED> ``(ii) An institution referred to in clause (i)
is--</DELETED>
<DELETED> ``(I) a part B institution within the
meaning of section 322(2);</DELETED>
<DELETED> ``(II) a tribally controlled community
college within the meaning of section 2(a)(4) of the
Tribally Controlled Community College Assistance Act of
1978; or</DELETED>
<DELETED> ``(III) a Navajo Community College under
the Navajo Community College Act.'';</DELETED>
<DELETED> (2) in the matter following subparagraph (C)--
</DELETED>
<DELETED> (A) by inserting ``for a reasonable period
of time, not to exceed 30 days,'' after ``access'';
and</DELETED>
<DELETED> (B) by striking ``of the affected guaranty
agencies and loan servicers for a reasonable period of
time, not to exceed 30 days'' and inserting ``used by a
guaranty agency in determining whether to pay a claim
on a defaulted loan''; and</DELETED>
<DELETED> (3) by adding at the end the following:</DELETED>
<DELETED> ``(4) Participation rate index.--</DELETED>
<DELETED> ``(A) In general.--An institution that
demonstrates to the Secretary that the institution's
participation rate index is equal to or less than
0.0375 for any of the 3 applicable participation rate
indices shall not be subject to paragraph (2). The
participation rate index shall be determined by
multiplying the institution's cohort default rate for
loans under part B or D, or weighted average cohort
rate for loans under parts B and D, by the percentage
of the institution's regular students, enrolled on at
least a half-time basis, who received a loan made under
part B or D for a 12-month period ending during the 6
months immediately preceding the fiscal year for which
the cohort of borrowers used to calculate the
institution's cohort default rate is
determined.</DELETED>
<DELETED> ``(B) Data.--An institution shall provide
the Secretary with sufficient data to determine the
institution's participation rate index within 30 days
after receiving an initial notification of the
institution's draft cohort default rate.</DELETED>
<DELETED> ``(C) Notification.--Prior to publication
of a final cohort default rate for an institution that
provides the data described in subparagraph (B), the
Secretary shall notify the institution of the
institution's compliance or noncompliance with
subparagraph (A).''.</DELETED>
<DELETED> (b) Cohort Default Rate.--Section 435(m)(1)(B) (20 U.S.C.
1085(m)(1)(B)) is amended by striking ``insurance, and, in considering
appeals with respect to cohort default rates pursuant to subsection
(a)(3), exclude'' and inserting ``insurance. In considering appeals
with respect to cohort default rates pursuant to subsection (a)(3), the
Secretary shall exclude, from the calculation of the number of students
who entered repayment and from the calculation of the number of
students who default,''.</DELETED>
<DELETED>SEC. 436. DELEGATION OF FUNCTIONS.</DELETED>
<DELETED> Section 436 (20 U.S.C. 1086) is amended to read as
follows:</DELETED>
<DELETED>``SEC. 436. DELEGATION OF FUNCTIONS.</DELETED>
<DELETED> ``(a) In General.--An eligible lender or guaranty agency
that contracts with another entity to perform any of the lender's or
agency's functions under this title, or otherwise delegates the
performance of such functions to such other entity--</DELETED>
<DELETED> ``(1) shall not be relieved of the lender's or
agency's duty to comply with the requirements of this title;
and</DELETED>
<DELETED> ``(2) shall monitor the activities of such other
entity for compliance with such requirements.</DELETED>
<DELETED> ``(b) Special Rule.--A lender that holds a loan made under
part B in the lender's capacity as a trustee is responsible for
complying with all statutory and regulatory requirements imposed on any
other holder of a loan made under this part.''.</DELETED>
<DELETED>SEC. 437. SPECIAL ALLOWANCES.</DELETED>
<DELETED> (a) Amendments.--Section 438 (20 U.S.C. 1087-1) is
amended--</DELETED>
<DELETED> (1) in subsection (c), by amending paragraph (1)
to read as follows:</DELETED>
<DELETED> ``(1) Deduction from interest and special
allowance subsidies.--(A) Notwithstanding subsection (b), the
Secretary shall collect the amount the lender is authorized to
charge as an origination fee in accordance with paragraph (2)
of this subsection--</DELETED>
<DELETED> ``(i) by reducing the total amount of
interest and special allowance payable under section
428(a)(3)(A) and subsection (b) of this section,
respectively, to any holder; or</DELETED>
<DELETED> ``(ii) directly from the holder of the
loan, if the lender fails or is not required to bill
the Secretary for interest and special allowance or
withdraws from the program with unpaid loan origination
fees.</DELETED>
<DELETED> ``(B) If the Secretary collects the origination
fee under this subsection through the reduction of interest and
special allowance, and the total amount of interest and special
allowance payable under section 428(a)(3)(A) and subsection (b)
of this section, respectively, is less than the amount the
lender was authorized to charge borrowers for origination fees
in that quarter, the Secretary shall deduct the excess amount
from the subsequent quarters' payments until the total amount
has been deducted.'';</DELETED>
<DELETED> (2) in subsection (d), by amending paragraph (1)
to read as follows:</DELETED>
<DELETED> ``(1) Deduction from interest and special
allowance subsidies.--</DELETED>
<DELETED> ``(A) In general.--Notwithstanding
subsection (b), the Secretary shall collect a loan fee
in an amount determined in accordance with paragraph
(2)--</DELETED>
<DELETED> ``(i) by reducing the total amount
of interest and special allowance payable under
section 428(a)(3)(A) and subsection (b),
respectively, to any holder of a loan;
or</DELETED>
<DELETED> ``(ii) directly from the holder of
the loan, if the lender--</DELETED>
<DELETED> ``(I) fails or is not
required to bill the Secretary for
interest and special allowance
payments; or</DELETED>
<DELETED> ``(II) withdraws from the
program with unpaid loan
fees.</DELETED>
<DELETED> ``(B) Special rule.--If the Secretary
collects loan fees under this subsection through the
reduction of interest and special allowance payments,
and the total amount of interest and special allowance
payable under section 428(a)(3)(A) and subsection (b),
respectively, is less than the amount of such loan
fees, then the Secretary shall deduct the amount of the
loan fee balance from the amount of interest and
special allowance payments that would otherwise be
payable, in subsequent quarterly increments until the
balance has been deducted.''; and</DELETED>
<DELETED> (3) in subsection (e)--</DELETED>
<DELETED> (A) by striking paragraphs (1) and (2);
and</DELETED>
<DELETED> (B) by redesignating paragraphs (3) and
(4) as paragraphs (1) and (2), respectively.</DELETED>
<DELETED> (b) Conforming Amendment.--Section 432(f)(1)(D) is amended
by striking ``required to file a plan for doing business under section
438(d)'' and inserting ``that meets the requirements of section
438(e)''.</DELETED>
<DELETED>SEC. 438. STUDY OF MARKET-BASED MECHANISMS FOR DETERMINING
STUDENT LOAN INTEREST RATES.</DELETED>
<DELETED> (a) Study Required.--</DELETED>
<DELETED> (1) In general.--The Secretary of the Treasury
shall conduct a study of the feasibility of employing market-
based mechanisms, including some form of auction, for
determining student loan interest rates under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). The
study shall include--</DELETED>
<DELETED> (A) analysis of the potential impact of
the mechanisms on the delivery of student financial
aid;</DELETED>
<DELETED> (B) analysis of the implications of the
mechanisms with respect to student and institutional
access to student loan capital;</DELETED>
<DELETED> (C) analysis of the potential impact of
the mechanisms on the costs of the programs under such
title for students and the Federal Government;
and</DELETED>
<DELETED> (D) a plan for structuring and
implementing the mechanisms in such a manner that
ensures the cost-effective availability of student
loans for students and their families.</DELETED>
<DELETED> (b) Consultation.--In conducting the study described in
paragraph (1), the Secretary shall consult with lenders, secondary
markets, guaranty agencies, institutions of higher education, student
loan borrowers, and other participants in the student loan programs
under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.).</DELETED>
<DELETED> (c) Report to Congress.--The Secretary of the Treasury
shall report to the Committee on Labor and Human Resources of the
Senate, and the Committee on Education and the Workforce of the House
of Representatives not later than September 30, 1999, regarding the
results of the study described in subsection (a).</DELETED>
<DELETED>PART C--FEDERAL WORK-STUDY PROGRAMS</DELETED>
<DELETED>SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY
SERVICES.</DELETED>
<DELETED> Section 441 (20 U.S.C. 2751) is amended--</DELETED>
<DELETED> (1) in subsection (b), by striking ``$800,000,000
for fiscal year 1993'' and inserting ``$900,000,000 for fiscal
year 1999''; and</DELETED>
<DELETED> (2) in subsection (c)--</DELETED>
<DELETED> (A) in paragraph (1), by inserting
``(including child care services provided on campus)''
after ``child care''; and</DELETED>
<DELETED> (B) in paragraph (3), by inserting ``,
including students with disabilities who are enrolled
at the institution'' before the semicolon.</DELETED>
<DELETED>SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.</DELETED>
<DELETED> Section 443(b) (20 U.S.C. 2753(b)) is amended--</DELETED>
<DELETED> (1) by amending paragraph (3) to read as
follows:</DELETED>
<DELETED> ``(3) provide that in the selection of students
for employment under such work-study program, only students who
demonstrate financial need in accordance with part F of this
title and meet the requirements of section 484 will be
assisted, except that if the institution's grant under this
part is directly or indirectly based in part on the financial
need demonstrated by students who are (A) attending the
institution on less than a full-time basis, or (B) independent
students, a reasonable portion of the allocation shall be made
available to such students;'';</DELETED>
<DELETED> (2) in paragraph (5)--</DELETED>
<DELETED> (A) by striking ``provide that'' and
inserting ``(A) provide that'';</DELETED>
<DELETED> (B) by striking ``1993-1994'' and
inserting ``1999-2000'';</DELETED>
<DELETED> (C) by inserting ``and'' after the
semicolon; and</DELETED>
<DELETED> (D) by adding at the end the
following:</DELETED>
<DELETED> ``(B) provide that the Federal share of the
compensation of students employed in community service shall
not exceed 90 percent;''; and</DELETED>
<DELETED> (3) in paragraph (6), by striking ``, and to
make'' and all that follows through ``such
employment''.</DELETED>
<DELETED>SEC. 443. WORK COLLEGES.</DELETED>
<DELETED> Section 448 (20 U.S.C. 2756b) is amended--</DELETED>
<DELETED> (1) in subsection (b)(2)--</DELETED>
<DELETED> (A) in subparagraph (C), by striking
``and'' after the semicolon;</DELETED>
<DELETED> (B) in subparagraph (D)(ii), by striking
the period and inserting a semicolon; and</DELETED>
<DELETED> (C) by adding at the end the
following:</DELETED>
<DELETED> ``(E) coordinate and carry out joint
projects and activities to promote work service
learning; and</DELETED>
<DELETED> ``(F) carry out a comprehensive,
longitudinal study of student academic progress and
academic and career outcomes, relative to student self-
sufficiency in financing their higher education,
repayment of student loans, continued community
service, kind and quality of service performed, and
career choice and community service selected after
graduation.''; and</DELETED>
<DELETED> (2) in subsection (f), by striking ``$5,000,000
for fiscal year 1993'' and inserting ``$7,000,000 for fiscal
year 1999''.</DELETED>
<DELETED>PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM</DELETED>
<DELETED>SEC. 451. SELECTION OF INSTITUTIONS.</DELETED>
<DELETED> Section 453(c) (20 U.S.C. 1087c(c)) is amended--</DELETED>
<DELETED> (1) in paragraph (2)--</DELETED>
<DELETED> (A) in the paragraph heading, by striking
``Transition'';</DELETED>
<DELETED> (B) by striking subparagraph (E);
and</DELETED>
<DELETED> (C) by redesignating subparagraphs (F),
(G), and (H) as subparagraphs (E), (F), and (G),
respectively; and</DELETED>
<DELETED> (2) in paragraph (3)--</DELETED>
<DELETED> (A) in the paragraph heading, by striking
``After transition''; and</DELETED>
<DELETED> (B) by striking ``For academic year 1995-
1996 and subsequent academic years, the'' and inserting
``The''.</DELETED>
<DELETED>SEC. 452. TERMS AND CONDITIONS.</DELETED>
<DELETED> (a) Interest Rates.--Section 455(b) (20 U.S.C. 1087e(b))
is amended to read as follows:</DELETED>
<DELETED> ``(b) Interest Rate.--</DELETED>
<DELETED> ``(1) Rates for fdsl and fdusl.--For Federal
Direct Stafford/Ford Loans and Federal Direct Unsubsidized
Stafford/Ford Loans for which the first disbursement is made on
or after July 1, 1998, the applicable rate of interest shall,
during any 12-month period beginning on July 1 and ending on
June 30, be determined on the preceding June 1 and be equal
to--</DELETED>
<DELETED> ``(A) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction held
prior to such June 1; plus</DELETED>
<DELETED> ``(B) 2.3 percent,</DELETED>
<DELETED>except that such rate shall not exceed 8.25
percent.</DELETED>
<DELETED> ``(2) In school and grace period rules.--With
respect to any Federal Direct Stafford/Ford Loan or Federal
Direct Unsubsidized Stafford/Ford Loan for which the first
disbursement is made on or after July 1, 1995, the applicable
rate of interest for interest which accrues--</DELETED>
<DELETED> ``(A) prior to the beginning of the
repayment period of the loan; or</DELETED>
<DELETED> ``(B) during the period in which principal
need not be paid (whether or not such principal is in
fact paid) by reason of a provision described in
section 428(b)(1)(M) or 427(a)(2)(C),</DELETED>
<DELETED>shall be determined under paragraph (1) by
substituting `1.7 percent' for `2.3 percent'.</DELETED>
<DELETED> ``(3) PLUS loans.--With respect to Federal Direct
PLUS Loan for which the first disbursement is made on or after
July 1, 1998, the applicable rate of interest shall be
determined under paragraph (1)--</DELETED>
<DELETED> ``(A) by substituting `3.1 percent' for
`2.3 percent'; and</DELETED>
<DELETED> ``(B) by substituting `9.0 percent' for
`8.25 percent'.</DELETED>
<DELETED> ``(4) Publication.--The Secretary shall determine
the applicable rates of interest under this subsection after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as
practicable after the date of determination.''.</DELETED>
<DELETED> (b) Effective Date.--The amendments made by this section
shall apply with respect to any loan made under part D of title IV of
the Higher Education Act of 1965 for which the first disbursement is
made on or after July 1, 1998.</DELETED>
<DELETED>SEC. 453. CONTRACTS.</DELETED>
<DELETED> Section 456(b) (20 U.S.C. 1087f(b)) is amended--</DELETED>
<DELETED> (1) in paragraph (3), by inserting ``and'' after
the semicolon;</DELETED>
<DELETED> (2) by striking paragraph (4); and</DELETED>
<DELETED> (3) by redesignating paragraph (5) as paragraph
(4).</DELETED>
<DELETED>SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES.</DELETED>
<DELETED> Section 458 (20 U.S.C. 1087h) is amended--</DELETED>
<DELETED> (1) by amending subsection (a) to read as
follows:</DELETED>
<DELETED> ``(a) Administrative Expenses.--</DELETED>
<DELETED> ``(1) In general.--Each fiscal year there shall be
available to the Secretary, from funds not otherwise
appropriated, funds to be obligated for--</DELETED>
<DELETED> ``(A) administrative costs under this part
and part B, including the costs of the direct student
loan programs under this part; and</DELETED>
<DELETED> ``(B) account maintenance fees payable to
guaranty agencies under part B and calculated in
accordance with paragraph (2), not to exceed (from such
funds not otherwise appropriated) $626,000,000 in
fiscal year 1999, $726,000,000 in fiscal year 2000,
$770,000,000 in fiscal year 2001, $780,000,000 in
fiscal year 2002, and $795,000,000 in fiscal year
2003.</DELETED>
<DELETED> ``(2) Account maintenance fees.--Account
maintenance fees under subparagraph (B) shall be paid quarterly
and deposited in the Agency Operating Fund established under
section 422B.</DELETED>
<DELETED> ``(3) Carryover.--The Secretary may carry over
funds made available under this section to a subsequent fiscal
year.''; and</DELETED>
<DELETED> (2) by amending subsection (b) to read as
follows:</DELETED>
<DELETED> ``(b) Calculation Basis.--Account maintenance fees payable
to guaranty agencies under paragraph (1)(B) shall be calculated--
</DELETED>
<DELETED> ``(1) for fiscal years 1999 and 2000, on the basis
of 0.12 percent of the original principal amount of outstanding
loans on which insurance was issued under part B; and</DELETED>
<DELETED> ``(2) for fiscal year 2001, 2002, and 2003, on the
basis of 0.10 percent of the original principal amount of
outstanding loans on which insurance was issued under part
B.''.</DELETED>
<DELETED>SEC. 455. LOAN CANCELLATION FOR TEACHERS.</DELETED>
<DELETED> Part D of title IV (20 U.S.C. 1087a et seq.) is amended by
adding at the end the following:</DELETED>
<DELETED>``SEC. 459. LOAN CANCELLATION FOR TEACHERS.</DELETED>
<DELETED> ``(a) Statement of Purpose.--It is the purpose of this
section to encourage individuals to enter and continue in the teaching
profession.</DELETED>
<DELETED> ``(b) Program Authorized.--The Secretary is authorized to
carry out a program of canceling the obligation to repay a Federal
Direct Stafford/Ford Loan made under this part that is eligible for an
interest subsidy, for any new borrower on or after the date of
enactment of the Higher Education Amendments of 1998, who--</DELETED>
<DELETED> ``(1) has been employed as a full-time teacher for
3 consecutive complete school years--</DELETED>
<DELETED> ``(A) in a school that qualifies under
section 465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such schools;</DELETED>
<DELETED> ``(B) if employed as a secondary school
teacher, is teaching a subject area that is relevant to
the borrower's academic major as certified by the chief
administrative officer of the public or non-profit
private secondary school in which the borrower is
employed; and</DELETED>
<DELETED> ``(C) if employed as an elementary school
teacher, has demonstrated, in accordance with State
teacher certification or licensing requirements and as
certified by the chief administrative officer of the
public or nonprofit private elementary school in which
the borrower is employed, knowledge and teaching skills
in reading, writing, mathematics and other areas of the
elementary school curriculum; and</DELETED>
<DELETED> ``(2) is not in default on a loan for which the
borrower seeks forgiveness.</DELETED>
<DELETED> ``(c) Regulations.--The Secretary is authorized to issue
such regulations as may be necessary to carry out the provisions of
this section.</DELETED>
<DELETED> ``(d) Loan Cancellation During Continuing Teaching
Service.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall cancel the
obligation to repay--</DELETED>
<DELETED> ``(A) 30 percent of the total outstanding
amount and applicable interest of subsidized Federal
Direct Stafford/Ford loans owed by the student borrower
after the completion of the fourth or fifth complete
school year of service described in subsection
(b);</DELETED>
<DELETED> ``(B) 40 percent of such total amount
after the completion of the sixth complete school year
of such service; and</DELETED>
<DELETED> ``(C) a total amount for any borrower that
shall not exceed $ 10,000.</DELETED>
<DELETED> ``(2) Construction.--Nothing in this section shall
be construed to authorize any refunding of any canceled
loan.</DELETED>
<DELETED> ``(e) List.--If the list of schools in which a teacher may
perform service pursuant to subsection (b) is not available before May
1 of any year, the Secretary may use the list for the year preceding
the year for which the determination is made to make such service
determination.</DELETED>
<DELETED> ``(f) Continued Eligibility.--Any teacher who performs
service in a school that--</DELETED>
<DELETED> ``(1) meets the requirements of subsection
(b)(1)(A) in any year during such service; and</DELETED>
<DELETED> ``(2) in a subsequent year fails to meet the
requirements of such subsection, may continue to teach in such
school and shall be eligible for loan cancellation pursuant to
subsection (b).''.</DELETED>
<DELETED>PART E--FEDERAL PERKINS LOANS</DELETED>
<DELETED>SEC. 461. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> Subsection (b) of section 461 (20 U.S.C. 1087aa) is
amended by striking ``1993'' and inserting ``1999''.</DELETED>
<DELETED>SEC. 462. ALLOCATION OF FUNDS.</DELETED>
<DELETED> (a) Amendments.--Section 462 (20 U.S.C. 1087bb) is
amended--</DELETED>
<DELETED> (1) in the matter preceding subparagraph (A) of
subsection (d)(3), by striking ``the Secretary, for'' and all
that follows through ``years,'';</DELETED>
<DELETED> (2) by amending subsection (f) to read as
follows:</DELETED>
<DELETED> ``(f) Default Penalties.--</DELETED>
<DELETED> ``(1) In general.--For fiscal year 1998 and any
succeeding fiscal year, any institution with a cohort default
rate (as defined under subsection (h)) that equals or exceeds
25 percent shall have a default penalty of zero.</DELETED>
<DELETED> ``(2) Ineligibility.--</DELETED>
<DELETED> ``(A) In general.--For fiscal year 1998
and any succeeding fiscal year, any institution with a
cohort default rate (as defined in subsection (h)) that
equals or exceeds 50 percent for each of the 3 most
recent years for which data are available shall not be
eligible to participate in a program under this part
for the fiscal year for which the determination is made
and the 2 succeeding fiscal years, unless, within 30
days of receiving notification from the Secretary of
the loss of eligibility under this paragraph, the
institution appeals the loss of eligibility to the
Secretary. The Secretary shall issue a decision on any
such appeal within 45 days after the submission of the
appeal. Such decision may permit the institution to
continue to participate in a program under this part
if--</DELETED>
<DELETED> ``(i) the institution demonstrates
to the satisfaction of the Secretary that the
Secretary's calculation of the institution's
cohort default rate is not accurate, and that
recalculation would reduce the institution's
cohort default rate for any of the 3 fiscal
years below 50 percent; or</DELETED>
<DELETED> ``(ii) there are, in the judgment
of the Secretary, exceptional mitigating
circumstances such as a small number of
borrowers entering repayment, that would make
the application of this subparagraph
inequitable.</DELETED>
<DELETED> ``(B) Continued participation.--During an
appeal under subparagraph (A), the Secretary may permit
the institution to continue to participate in a program
under this part.</DELETED>
<DELETED> ``(C) Definition.--For the purposes of
subparagraph (A), the term `loss of eligibility' shall
be defined as the mandatory liquidation of an
institution's student loan fund, and assignment of the
institution's outstanding loan portfolio to the
Secretary.'';</DELETED>
<DELETED> (3) by amending paragraph (1) of subsection (g) to
read as follows: ``(1) For award year 1998 and subsequent
years, the maximum cohort default rate is 25 percent.'';
and</DELETED>
<DELETED> (4) in subsection (h)--</DELETED>
<DELETED> (A) in the subsection heading, by striking
``Definitions of Default Rate and'' and inserting
``Definition of'';</DELETED>
<DELETED> (B) by striking paragraphs (1) and
(2);</DELETED>
<DELETED> (C) by redesignating paragraphs (3) and
(4) as paragraphs (1) and (2), respectively;</DELETED>
<DELETED> (D) in paragraph (1) (as redesignated by
subparagraph (C)--</DELETED>
<DELETED> (i) by striking subparagraph (B);
and</DELETED>
<DELETED> (ii) by redesignating
subparagraphs (C) through (G) as subparagraphs
(B) through (F), respectively; and</DELETED>
<DELETED> (E) in the matter preceding subparagraph
(A) of paragraph (2) (as redesignated by subparagraph
(C)), by striking ``A loan'' and inserting ``For
purposes of calculating the cohort default rate under
this subsection, a loan''.</DELETED>
<DELETED> (b) Conforming Amendments.--Section 462 (20 U.S.C. 1087bb)
is amended--</DELETED>
<DELETED> (1) in the matter following paragraphs (1)(B) and
(2)(D)(ii) of subsection (a), by inserting ``cohort'' before
``default'' each place the term appears;</DELETED>
<DELETED> (2) in the matter following paragraphs (2)(B) and
(3)(C) of subsection (c), by inserting ``cohort'' before
``default'' each place the term appears;</DELETED>
<DELETED> (3) in subsection (e)(2), by inserting ``cohort''
before ``default''; and</DELETED>
<DELETED> (4) in subsection (h)(1)(F) (as redesignated by
subparagraphs (C) and (D)(ii) of subsection (a)(4)), by
inserting ``cohort'' before ``default''.</DELETED>
<DELETED>SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER
EDUCATION.</DELETED>
<DELETED> Section 463 (20 U.S.C. 1087cc) is amended--</DELETED>
<DELETED> (1) by amending subparagraph (B) of subsection
(a)(2) to read as follows:</DELETED>
<DELETED> ``(B) a capital contribution by an
institution in an amount equal to one-third of the
Federal capital contributions described in subparagraph
(A);'';</DELETED>
<DELETED> (2) in subsection (c)--</DELETED>
<DELETED> (A) in paragraph (2)--</DELETED>
<DELETED> (i) in the matter preceding
subparagraph (A), by striking ``by the
Secretary'' and all that follows through ``of--
'' and inserting ``by the Secretary or an
institution, as the case may be, to such
organizations, with respect to any loan held by
the Secretary or the institution, respectively,
of--'';</DELETED>
<DELETED> (ii) by amending subparagraph (A)
to read as follows:</DELETED>
<DELETED> ``(A) the date of disbursement and the
amount of such loans made to any borrower under this
part at the time of disbursement of the
loan;'';</DELETED>
<DELETED> (iii) in subparagraph (B)--
</DELETED>
<DELETED> (I) by inserting ``the
repayment and'' after ``concerning'';
and</DELETED>
<DELETED> (II) by striking ``any
defaulted'' and inserting ``such'';
and</DELETED>
<DELETED> (iv) in subparagraph (C), by
inserting ``, or upon cancellation or discharge
of the borrower's obligation on the loan for
any reason'' before the period;</DELETED>
<DELETED> (B) in paragraph (3)--</DELETED>
<DELETED> (i) in the matter preceding
subparagraph (A), by striking ``until--'' and
inserting ``until the loan is paid in full.'';
and</DELETED>
<DELETED> (ii) by striking subparagraphs (A)
and (B); and</DELETED>
<DELETED> (C) by amending paragraph (4) to read as
follows:</DELETED>
<DELETED> ``(4)(A) Except as provided in subparagraph (B),
an institution of higher education, after consultation with the
Secretary and pursuant to the agreements entered into under
paragraph (1), shall disclose at least annually to any credit
bureau organization with which the Secretary has such an
agreement the information set forth in paragraph (2), and shall
disclose promptly to such credit bureau organization any
changes to the information previously disclosed.</DELETED>
<DELETED> ``(B) The Secretary may promulgate regulations
establishing criteria under which an institution of higher
education may cease reporting the information described in
paragraph (2) before a loan is paid in full.''.</DELETED>
<DELETED>SEC. 464. TERMS OF LOANS.</DELETED>
<DELETED> Section 464 (20 U.S.C. 1087dd) is amended--</DELETED>
<DELETED> (1) in subsection (a), by amending paragraph (2)
to read as follows:</DELETED>
<DELETED> ``(2)(A) Except as provided in paragraph (4), the
total of loans made to a student in any academic year or its
equivalent by an institution of higher education from a loan
fund established pursuant to an agreement under this part shall
not exceed--</DELETED>
<DELETED> ``(i) $4,000, in the case of a student who
has not successfully completed a program of
undergraduate education; or</DELETED>
<DELETED> ``(ii) $6,000, in the case of a graduate
or professional student (as defined in regulations
issued by the Secretary).</DELETED>
<DELETED> ``(B) Except as provided in paragraph (4), the
aggregate of the loans for all years made to a student by
institutions of higher education from loan funds established
pursuant to agreements under this part may not exceed--
</DELETED>
<DELETED> ``(i) $40,000, in the case of any graduate
or professional student (as defined by regulations
issued by the Secretary, and including any loans from
such funds made to such person before such person
became a graduate or professional student);</DELETED>
<DELETED> ``(ii) $20,000, in the case of a student
who has successfully completed 2 years of a program of
education leading to a bachelor's degree but who has
not completed the work necessary for such a degree
(determined under regulations issued by the Secretary,
and including any loans from such funds made to such
person before such person became such a student);
and</DELETED>
<DELETED> ``(iii) $8,000, in the case of any other
student.</DELETED>
<DELETED> ``(C)(i) The total of loans made to a student
described in clause (ii) in any academic year or its equivalent
by an institution of higher education from loan funds
established pursuant to agreements under this part may not
exceed--</DELETED>
<DELETED> ``(I) $8,000 for each of the third and
fourth years of the program of instruction leading to a
bachelor's degree; or</DELETED>
<DELETED> ``(II) $10,000 for the first year of
graduate study (as defined in regulations issued by the
Secretary).</DELETED>
<DELETED> ``(ii) A student referred to in clause (i) is any
student--</DELETED>
<DELETED> ``(I) who is a junior in a program of
instruction leading to a bachelor's degree;</DELETED>
<DELETED> ``(II) who states in writing that the
student will pursue a course of study to become an
elementary or secondary school teacher; and</DELETED>
<DELETED> ``(III) who states in writing that the
student intends to become a full-time teacher in a
school which meets the requirements of section
465(a)(2)(A).</DELETED>
<DELETED> ``(iii) Each institution shall provide a report to
the Secretary annually containing the number of loans under
this subparagraph that are made, the amount of each loan, and
whether students benefiting from the higher loan limits met the
requirements for receiving those loans.</DELETED>
<DELETED> ``(iv) If 3 years after the date of enactment of
the Higher Education Amendments of 1998, the Secretary
determines that an institution has engaged in a pattern of
abuse of this subparagraph, the Secretary may reduce or
terminate the institution's Federal capital
contribution.'';</DELETED>
<DELETED> (2) in subsection (b), by amending paragraph (2)
to read as follows:</DELETED>
<DELETED> ``(2) If the institution's capital contribution
under section 462 is directly or indirectly based in part on
the financial need demonstrated by students who are (A)
attending the institution less than full time; or (B)
independent students, a reasonable portion of the loans made
from the institution's student loan fund containing the
contribution shall be made available to such
students.'';</DELETED>
<DELETED> (3) in subsection (c)(1)--</DELETED>
<DELETED> (A) in subparagraph (D), by striking ``(i)
3 percent'' and all that follows through ``or
(iii)'';</DELETED>
<DELETED> (B) by redesignating subparagraphs (H) and
(I) as subparagraphs (I) and (J), respectively;
and</DELETED>
<DELETED> (C) by inserting after subparagraph (G)
the following:</DELETED>
<DELETED> ``(H) shall provide that, in the case of a
loan made on or after July 1, 1999, the loan shall be
considered in default (except as otherwise provided in
section 462(h)) if the borrower of a loan made under
this part fails to make an installment payment when
due, or to meet any other term of the promissory note
or written repayment agreement, and such failure
persists for--</DELETED>
<DELETED> ``(i) 180 days in the case of a
loan that is repayable in monthly installments;
or</DELETED>
<DELETED> ``(ii) 240 days in the case of a
loan that is repayable in less frequent
installments;''; and</DELETED>
<DELETED> (4) by adding at the end the following:</DELETED>
<DELETED> ``(g) Discharge.--</DELETED>
<DELETED> ``(1) In general.--If a student borrower who
received a loan made under this part on or after January 1,
1986, is unable to complete the program in which such student
is enrolled due to the closure of the institution, then the
Secretary shall discharge the borrower's liability on the loan
(including the interest and collection fees) by repaying the
amount owed on the loan and shall subsequently pursue any claim
available to such borrower against the institution and the
institution's affiliates and principals, or settle the loan
obligation pursuant to the financial responsibility standards
described in section 498(c).</DELETED>
<DELETED> ``(2) Assignment.--A borrower whose loan has been
discharged pursuant to this subsection shall be deemed to have
assigned to the United States the right to a loan refund in an
amount that does not exceed the amount discharged against the
institution and the institution's affiliates and
principals.</DELETED>
<DELETED> ``(3) Eligibility for additional assistance.--The
period during which a student was unable to complete a course
of study due to the closing of the institution shall not be
considered for purposes of calculating the student's period of
eligibility for additional assistance under this
title.</DELETED>
<DELETED> ``(4) Special rule.--A borrower whose loan has
been discharged pursuant to this subsection shall not be
precluded, because of that discharge, from receiving additional
grant, loan, or work assistance under this title for which the
borrower would be otherwise eligible (but for the default on
the discharged loan). The amount discharged under this
subsection shall not be considered income for purposes of the
Internal Revenue Code of 1986.</DELETED>
<DELETED> ``(5) Reporting.--The Secretary or institution, as
the case may be, shall report to credit bureaus with respect to
loans that have been discharged pursuant to this
subsection.</DELETED>
<DELETED> ``(h) Rehabilitation of Loans.--</DELETED>
<DELETED> ``(1) Rehabilitation.--</DELETED>
<DELETED> ``(A) In general.--If the borrower of a
loan made under this part who has defaulted on the loan
makes 12 ontime, consecutive, monthly payments of
amounts owed on the loan, as determined by the
institution, the loan shall be considered
rehabilitated, and the institution that made that loan
(or the Secretary, in the case of a loan held by the
Secretary) shall instruct any credit bureau
organization or credit reporting agency to which the
default was reported to remove the default from the
borrower's credit history.</DELETED>
<DELETED> ``(B) Comparable conditions.--As long as
the borrower continues to make scheduled repayments on
a loan rehabilitated under this paragraph, the rehabilitated loan shall
be subject to the same terms and conditions, and qualify for the same
benefits and privileges, as other loans made under this part.</DELETED>
<DELETED> ``(C) Additional assistance.--The borrower
of a rehabilitated loan shall not be precluded by
section 484 from receiving additional grant, loan, or
work assistance under this title (for which the
borrower is otherwise eligible) on the basis of
defaulting on the loan prior to such
rehabilitation.</DELETED>
<DELETED> ``(D) Limitations.--A borrower only once
may obtain the benefit of this paragraph with respect
to rehabilitating a loan under this part.</DELETED>
<DELETED> ``(2) Restoration of eligibility.--If the borrower
of a loan made under this part who has defaulted on that loan
makes 6 ontime, consecutive, monthly payments of amounts owed
on such loan, the borrower's eligibility for grant, loan, or
work assistance under this title shall be restored. A borrower
only once may obtain the benefit of this paragraph with respect
to restored eligibility.</DELETED>
<DELETED> ``(i) Incentive Repayment Program.--</DELETED>
<DELETED> ``(1) In general.--Each institution of higher
education may establish, with the approval of the Secretary, an
incentive repayment program designed to reduce default and to
replenish student loan funds established under this part. Each
such incentive repayment program may--</DELETED>
<DELETED> ``(A) offer a reduction of the interest
rate on a loan on which the borrower has made 48
consecutive monthly repayments, but in no event may the
rate be reduced by more than 1 percent;</DELETED>
<DELETED> ``(B) provide for a discount on the
balance owed on a loan on which the borrower pays the
principal and interest in full prior to the end of the
applicable repayment period, but in no event may the
discount exceed 5 percent of the unpaid principal
balance due on the loan at the time the early repayment
is made; and</DELETED>
<DELETED> ``(C) include such other incentive
repayment options as the institution determines will
carry out the objectives of this subsection.</DELETED>
<DELETED> ``(2) Limitation.--No incentive repayment option
under an incentive repayment program authorized by this
subsection may be paid for with Federal funds, including any
Federal funds from the student loan fund, nor can an incentive
repayment option be paid for with institutional funds from the
student loan fund.''.</DELETED>
<DELETED>SEC. 465. DISTRIBUTION OF ASSETS FROM STUDENT LOAN
FUNDS.</DELETED>
<DELETED> Section 466 (20 U.S.C. 1087ff) is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in the matter preceding paragraph
(1)--</DELETED>
<DELETED> (i) by striking ``1996'' and
inserting ``2003''; and</DELETED>
<DELETED> (ii) by striking ``1997'' and
inserting ``2004''; and</DELETED>
<DELETED> (B) in paragraph (1), by striking ``1996''
and inserting ``2003'';</DELETED>
<DELETED> (2) in subsection (b)--</DELETED>
<DELETED> (A) by striking ``2005'' and inserting
``2012''; and</DELETED>
<DELETED> (B) by striking ``1996'' and inserting
``2003''; and</DELETED>
<DELETED> (3) in subsection (c), by striking ``1997'' and
inserting ``2004''.</DELETED>
<DELETED>SEC. 466. PERKINS REVOLVING FUND.</DELETED>
<DELETED> (a) Repeal.--Section 467 (20 U.S.C. 1087gg) is
repealed.</DELETED>
<DELETED> (b) Transfer of Balance.--Any funds in the Perkins
Revolving Loan Fund on the date of enactment of this Act shall be
transferred to and deposited in the Treasury.</DELETED>
<DELETED>PART F--NEED ANALYSIS</DELETED>
<DELETED>SEC. 471. COST OF ATTENDANCE.</DELETED>
<DELETED> Section 472 (20 U.S.C. 1087ll) is amended--</DELETED>
<DELETED> (1) in paragraph (3)--</DELETED>
<DELETED> (A) in subparagraph (A), by striking ``of
not less than $1,500'' and inserting ``determined by
the institution''; and</DELETED>
<DELETED> (B) in subparagraph (C), by striking ``,
except that the amount may not be less than $2,500'';
and</DELETED>
<DELETED> (2) in paragraph (11), by striking ``placed'' and
inserting ``engaged''.</DELETED>
<DELETED>SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT
STUDENTS.</DELETED>
<DELETED> Section 475 (20 U.S.C. 1087oo) is amended--</DELETED>
<DELETED> (1) in subsection (g)--</DELETED>
<DELETED> (A) in paragraph (2)--</DELETED>
<DELETED> (i) in subparagraph (D)--
</DELETED>
<DELETED> (I) by striking ``$1,750''
and inserting ``$2,200''; and</DELETED>
<DELETED> (II) by striking ``and''
after the semicolon;</DELETED>
<DELETED> (ii) in subparagraph (E), by
striking the period and inserting ``; and'';
and</DELETED>
<DELETED> (iii) by adding at the end the
following:</DELETED>
<DELETED> ``(F) an allowance for parents' negative
available income, determined in accordance with
paragraph (6).''; and</DELETED>
<DELETED> (B) by adding at the end the
following:</DELETED>
<DELETED> ``(6) Allowance for parents' negative available
income.--The allowance for parents' negative available income
is the negative amount, if any, remaining after all allowances
have been subtracted from parents' total income under
subsection (c)(1).''; and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(j) Adjustments to Students Contribution for Enrollment
Periods of Less Than Nine Months.--For periods of enrollment of less
than 9 months, the student's contribution from adjusted available
income (as determined under subsection (g)) is determined, for purposes
other than subpart 2 of part A, by dividing the amount determined under
such subsection by 9, and multiplying the result by the number of
months in the period of enrollment.''.</DELETED>
<DELETED>SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT
DEPENDENTS OTHER THAN A SPOUSE.</DELETED>
<DELETED> Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv))
is amended--</DELETED>
<DELETED> (1) in subclause (I), by striking ``$3,000'' and
inserting ``$4,250'';</DELETED>
<DELETED> (2) in subclause (II), by striking ``$3,000'' and
inserting ``$4,250''; and</DELETED>
<DELETED> (3) in subclause (III), by striking ``$6,000'' and
inserting ``$7,250''.</DELETED>
<DELETED>SEC. 474. REGULATIONS; UPDATED TABLES AND AMOUNTS.</DELETED>
<DELETED> Section 478(b) (20 U.S.C. 1087rr(b)) is amended--
</DELETED>
<DELETED> (1) by striking ``For each academic year'' and
inserting the following:</DELETED>
<DELETED> ``(1) Revised tables.--For each academic year'';
and</DELETED>
<DELETED> (2) by adding at the end the following new
paragraph:</DELETED>
<DELETED> ``(2) Revised amounts.--For each academic year
after academic year 1997-1998, the Secretary shall publish in
the Federal Register revised income protection allowances for
the purpose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). Such
revised allowances shall be developed by increasing each of the
dollar amounts contained in such section by a percentage equal
to the estimated percentage increase in the Consumer Price
Index (as determined by the Secretary) between December 1996
and the December next preceding the beginning of such academic
year, and rounding the result to the nearest $10.''.</DELETED>
<DELETED>SEC. 475. REFUSAL OR ADJUSTMENT OF LOAN
CERTIFICATIONS.</DELETED>
<DELETED> Subsection (c) of section 479A (20 U.S.C. 1087tt) is
amended to read as follows:</DELETED>
<DELETED> ``(c) Refusal or Adjustment of Loan Certifications.--An
eligible institution may refuse to certify a statement that permits a
student to receive a loan under part B, or refuse to make a loan under
part D, or may certify a loan amount or make a loan that is less than
the student's determination of need (as determined under this part), if
the reason for the action is documented and provided in written form to
the student. No eligible institution shall discriminate against any
borrower or applicant in obtaining a loan on the basis of race,
national origin, religion, sex, marital status, age, or disability
status.''.</DELETED>
<DELETED>PART G--GENERAL PROVISIONS</DELETED>
<DELETED>SEC. 481. MASTER CALENDAR.</DELETED>
<DELETED> Section 482 (20 U.S.C. 1089) is amended--</DELETED>
<DELETED> (1) in subsection (a), by adding at the end the
following:</DELETED>
<DELETED> ``(3) To the extent feasible, the Secretary shall
notify eligible institutions and vendors by December 1 prior to
the start of an award year of minimal hardware and software
requirements necessary to administer programs under this
title.''; and</DELETED>
<DELETED> (2) by amending subsection (c) to read as
follows:</DELETED>
<DELETED> ``(c) Delay of Effective Date of Late Publications.--(1)
Except as provided in paragraph (2), any regulatory changes initiated
by the Secretary affecting the programs under this title that have not
been published in final form by November 1 prior to the start of the
award year shall not become effective until the beginning of the second
award year after such November 1 date.</DELETED>
<DELETED> ``(2)(A) The Secretary may designate any regulatory
provision that affects the programs under this title and is published
in final form after November 1 as one that an entity subject to the
provision may, in the entity's discretion, choose to implement prior to
the effective date described in paragraph (1). The Secretary may
specify in the designation when, and under what conditions, an entity
may implement the provision prior to that effective date. The Secretary
shall publish any designation under this subparagraph in the Federal
Register.</DELETED>
<DELETED> ``(B) If an entity chooses to implement a regulatory
provision prior to the effective date described in paragraph (1), as
permitted by subparagraph (A), the provision shall be effective with
respect to that entity in accordance with the terms of the Secretary's
designation.''.</DELETED>
<DELETED>SEC. 482. FORMS AND REGULATIONS.</DELETED>
<DELETED> Section 483 (20 U.S.C. 1090) is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in the subsection heading, by striking
``Form'' and inserting ``Form Development'';</DELETED>
<DELETED> (B) by amending paragraph (1) to read as
follows:</DELETED>
<DELETED> ``(1) Single form requirements.--The Secretary, in
cooperation with representatives of agencies and organizations
involved in student financial assistance, shall produce,
distribute, and process free of charge a common financial
reporting form (which shall include electronic versions of the
form) to be used--</DELETED>
<DELETED> ``(A) to determine the need (including the
expected family contribution and, if appropriate, cost
of attendance) and eligibility of a student for
financial assistance under parts A, C, D, and E; and</DELETED>
<DELETED> ``(B) to determine the need (including the
expected family contribution and cost of attendance) of
a student for the purposes of part B.</DELETED>
<DELETED> ``(2) State data items.--The Secretary shall
include on the form developed under this subsection such data
items, selected in consultation with the States to assist the
States in awarding State student financial assistance, as the
Secretary determines are appropriate for inclusion.</DELETED>
<DELETED> ``(3) Parent's social security number.--The
Secretary shall include on the form developed under this
paragraph space for the social security number of parents of
dependent students seeking financial assistance under this
title.</DELETED>
<DELETED> ``(4) Use.--The Secretary shall require that the
form developed under this paragraph be used for the purpose of
collecting eligibility and other data for purposes of part B,
including the applicant's choice of lender.''; and</DELETED>
<DELETED> (C) in paragraph (3)--</DELETED>
<DELETED> (i) by striking ``Institutions of
higher education and States shall receive'' and
inserting ``The Secretary shall provide'';
and</DELETED>
<DELETED> (ii) by striking ``by the
Secretary''; and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(g) Payment for Data.--The Secretary may pay such
charges as the Secretary determines are necessary to obtain data that
the Secretary considers essential to the efficient administration of
the programs under this title.</DELETED>
<DELETED> ``(h) Multiyear Promissory Note.--The Secretary shall
require, for loans made under this title for periods of enrollment
beginning on or after July 1, 2000, the use of a promissory note
applicable to more than 1 academic year, or more than 1 type of loan
made under this title. Prior to implementing this subsection, the
Secretary shall develop and test such a promissory note on a limited or
pilot basis.''.</DELETED>
<DELETED>SEC. 483. STUDENT ELIGIBILITY.</DELETED>
<DELETED> Section 484 (20 U.S.C. 1091) is amended--</DELETED>
<DELETED> (1) in subsection (d)--</DELETED>
<DELETED> (A) in the matter preceding paragraph (1),
by striking ``either''; and</DELETED>
<DELETED> (B) by adding at the end the
following:</DELETED>
<DELETED> ``(3) The student has completed a high school
education in a home school setting and has met any State
requirements with respect to such education in a home school
setting.''; and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(q) Verification of IRS Return Information.--The
Secretary shall verify the information reported by all applicants for
assistance on the form prescribed under section 483 with the return
information (as defined in section 6103 of the Internal Revenue Code of
1986) available to the Secretary of the Treasury. Notwithstanding
section 6103 of such Code the Secretary of the Treasury shall provide
the return information to the Secretary. In the case of a dependent
student the return information shall include the return information of
the parent of the student. The form prescribed by the Secretary under
section 483 shall contain a prominent notice of the verification of the
information and a warning to all the applicants of the penalties for
misrepresentation, with respect to the information, under the United
States Code.</DELETED>
<DELETED>SEC. 484. INSTITUTIONAL REFUNDS.</DELETED>
<DELETED> Section 484B (20 U.S.C. 1091b) is amended--</DELETED>
<DELETED> (1) in subsection (b)--</DELETED>
<DELETED> (A) in paragraph (1), by inserting ``or''
after the semicolon;</DELETED>
<DELETED> (B) by striking paragraph (2);
and</DELETED>
<DELETED> (C) by redesignating paragraph (3) as
paragraph (2); and</DELETED>
<DELETED> (2) in subsection (c)--</DELETED>
<DELETED> (A) in paragraph (1), by striking ``last
day of attendance by the student'' and inserting ``day
the student withdrew'';</DELETED>
<DELETED> (B) in subparagraph (A) of paragraph (2),
by striking ``last recorded day of attendance by the
student'' and inserting ``day the student withdrew'';
and</DELETED>
<DELETED> (C) by adding at the end the
following:</DELETED>
<DELETED> ``(3) For the purpose of this section, the term
`day a student withdrew'--</DELETED>
<DELETED> ``(A) is the date that was the last
recorded day of attendance by the student; or</DELETED>
<DELETED> ``(B) in instances where attendance is not
recorded, is the date on which--</DELETED>
<DELETED> ``(i) the student began the
withdrawal process prescribed by the
institution; or</DELETED>
<DELETED> ``(ii) the student otherwise
provided notification to the institution of the
intent to withdraw.''.</DELETED>
<DELETED>SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION
FOR STUDENTS.</DELETED>
<DELETED> (a) Information Dissemination Activities.--Section 485(a)
(20 U.S.C. 1092(a)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) in the second sentence, by striking
``and mailings, to all current'' and inserting ``,
mailings, and electronic media, to all enrolled'';
and</DELETED>
<DELETED> (B) by inserting after the second sentence
the following: ``Each eligible institution annually
shall provide to all students enrolled at the
institution, a list of the information that is required
by this section, together with a statement of the
procedures required to obtain the
information.'';</DELETED>
<DELETED> (2) in paragraph (2), by inserting ``an
application for'' after ``concerning''; and</DELETED>
<DELETED> (3) in paragraph (3)--</DELETED>
<DELETED> (A) in the matter preceding subparagraph
(A)--</DELETED>
<DELETED> (i) by inserting ``(graduation
rates)'' after ``this subsection'';
and</DELETED>
<DELETED> (ii) by inserting ``(student
right-to-know)'' after ``subsection (e)'';
and</DELETED>
<DELETED> (B) by amending subparagraph (A) to read
as follows:</DELETED>
<DELETED> ``(A) shall be made available by July 1
each year to current and prospective students prior to
enrolling or entering into any financial obligation;
and''.</DELETED>
<DELETED> (b) Exit Counseling for Borrowers.--Section 485(b) (20
U.S.C. 1092(b)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)(A), by striking
``(individually or in groups)''; and</DELETED>
<DELETED> (2) in paragraph (2), by adding at the end the
following:</DELETED>
<DELETED> ``(C) Nothing in this subsection shall be construed to
prohibit an institution of higher education from utilizing electronic
means to provide personalized exit counseling.''.</DELETED>
<DELETED> (c) Disclosures Required With Respect to Athletically
Related Student Aid.--Section 485(e) (20 U.S.C. 1092(e)) is amended--
</DELETED>
<DELETED> (1) by amending paragraph (2) to read as
follows:</DELETED>
<DELETED> ``(2) When an institution described in paragraph
(1) offers a potential student athlete athletically related
student aid, such institution shall provide to the student, the
student's parents, the student's guidance counselor, and the
student's coach the information contained in the report
submitted by such institution pursuant to paragraph (1). If the
institution is a member of a national collegiate athletic
association that compiles graduation rate data on behalf of its
member institutions, that the Secretary determines is
substantially comparable to the information described in the
previous sentence, the distribution of the compilation to all
secondary schools shall fulfill the responsibility of the
institution to provide the information to a prospective student
athlete's guidance counselor and coach.''; and</DELETED>
<DELETED> (2) by amending paragraph (9) to read as
follows:</DELETED>
<DELETED> ``(9) The reports required by this subsection
shall be due each July 1 and shall cover the 1-year period
ending August 31 of the preceding year.''.</DELETED>
<DELETED> (d) Disclosure of Campus Security Policy and Campus Crime
Statistics.--Section 485(f) (20 U.S.C. 1092(f)) is amended--</DELETED>
<DELETED> (1) by amending subparagraph (F) of paragraph (1)
to read as follows:</DELETED>
<DELETED> ``(F) Statistics concerning the occurrence
on campus, during the most recent calendar year, and
during the 2 preceding calendar years for which data
are available--</DELETED>
<DELETED> ``(i) of the following criminal
offenses reported to campus security
authorities or local police agencies--
</DELETED>
<DELETED> ``(I) homicide, including
murder or nonnegligent manslaughter or
negligent manslaughter;</DELETED>
<DELETED> ``(II) sex offenses,
forcible or nonforcible;</DELETED>
<DELETED> ``(III) robbery;</DELETED>
<DELETED> ``(IV) aggravated
assault;</DELETED>
<DELETED> ``(V) burglary;</DELETED>
<DELETED> ``(VI) motor vehicle
theft; and</DELETED>
<DELETED> ``(VII) arson;</DELETED>
<DELETED> ``(ii) of the crimes described in
subclauses (I) through (VII), and vandalism and
simple assault, that manifest evidence of
prejudice based on actual or perceived race,
gender, religion, sexual orientation,
ethnicity, or disability that are reported to
campus security authorities or local police
agencies, which data shall be collected and
reported according to category of
prejudice.'';</DELETED>
<DELETED> (2) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;</DELETED>
<DELETED> (3) by inserting after paragraph (3) the
following:</DELETED>
<DELETED> ``(4)(A) Each institution participating in any
program under this title which maintains either a police or
security department of any kind shall make, keep, and maintain
a daily log, written in a form that can be easily understood,
recording all crimes reported to such police or security
department, including--</DELETED>
<DELETED> ``(i) the nature, date, time, and general
location of each crime; and</DELETED>
<DELETED> ``(ii) the disposition of the complaint,
if known.</DELETED>
<DELETED> ``(B)(i) All entries that are required pursuant to
this paragraph shall, except where disclosure of such
information is prohibited by law or such disclosure would
jeopardize the confidentiality of the victim, be open to public
inspection within 2 business days of the initial report being
made to the department or a campus security
authority.</DELETED>
<DELETED> ``(ii) If new information about an entry into a
log becomes available to a police or security department, then
the new information shall be recorded in the log not later than
2 business days after the information becomes available to the
police or security department.</DELETED>
<DELETED> ``(iii) Where there is clear and convincing
evidence that the release of such information would jeopardize
an ongoing criminal investigation or the safety of an
individual, cause a suspect to flee or evade detection, or
result in the destruction of evidence, such information may be
withheld until that damage is no longer likely to occur from
the release of such information.</DELETED>
<DELETED> ``(iv) Notwithstanding clause (iii), an
institution of higher education shall record all criminal
incidents occurring on campus and shall make the reports open
to public inspection not later than 2 business days after the
requirements of clause (iii) are met.'';</DELETED>
<DELETED> (4) in paragraph (7) (as redesignated by
subparagraph (B)), by inserting at the end the following:
``Such statistics shall not identify victims of crimes or
persons accused of crimes, except as permitted by State or
local law.''; and</DELETED>
<DELETED> (5) by adding at the end the following:</DELETED>
<DELETED> ``(9) Study.--</DELETED>
<DELETED> ``(A) In general.--The Secretary, in
consultation with the Attorney General, shall provide
for a national study to examine procedures undertaken
after an institution of higher education receives a
report of sexual assault.</DELETED>
<DELETED> ``(B) Report.--The study required by
subparagraph (A) shall include an analysis of--
</DELETED>
<DELETED> ``(i) the existence and
publication of the institution of higher
education's and State's definition of sexual
assault;</DELETED>
<DELETED> ``(ii) the existence and
publication of the institution's policy for
campus sexual assaults;</DELETED>
<DELETED> ``(iii) the individuals to whom
reports of sexual assault are given most often
and--</DELETED>
<DELETED> ``(I) how the individuals
are trained to respond to the reports;
and</DELETED>
<DELETED> ``(II) the extent to which
the individuals are trained;</DELETED>
<DELETED> ``(iv) the reporting options that
are articulated to the victim or victims of the
sexual assault regarding--</DELETED>
<DELETED> ``(I) on-campus reporting
and procedure options; and</DELETED>
<DELETED> ``(II) off-campus
reporting and procedure
options;</DELETED>
<DELETED> ``(v) the resources available for
victims' safety, support, medical health, and
confidentiality, including--</DELETED>
<DELETED> ``(I) how well the
resources are articulated both
specifically to the victim of sexual
assault and generally to the campus at
large; and</DELETED>
<DELETED> ``(II) the security of the
resources in terms of confidentiality
or reputation;</DELETED>
<DELETED> ``(vi) policies and practices that
may prevent or discourage the reporting of
campus sexual assaults to local crime
authorities, or that may otherwise obstruct
justice or interfere with the prosecution of
perpetrators of campus sexual
assaults;</DELETED>
<DELETED> ``(vii) policies and practices
found successful in aiding the report and any
ensuing investigation or prosecution of a
campus sexual assault;</DELETED>
<DELETED> ``(viii) the on-campus procedures
for investigation and disciplining the
perpetrator of a sexual assault, including--
</DELETED>
<DELETED> ``(I) the format for
collecting evidence; and</DELETED>
<DELETED> ``(II) the format of the
investigation and disciplinary
proceeding, including the faculty
responsible for running the
disciplinary procedure and the persons
allowed to attend the disciplinary
procedure; and</DELETED>
<DELETED> ``(ix) types of punishment for
offenders, including--</DELETED>
<DELETED> ``(I) whether the case is
directed outside for further
punishment; and</DELETED>
<DELETED> ``(II) how the institution
punishes perpetrators.</DELETED>
<DELETED> ``(C) Submission of report.--The report
required by subparagraph (B) shall be submitted to
Congress not later than September 1, 1999.</DELETED>
<DELETED> ``(D) Definition.--For purposes of this
section, the term `campus sexual assaults' means sexual
assaults occurring at institutions of higher education
and sexual assaults committed against or by students or
employees of such institutions.</DELETED>
<DELETED> ``(E) Authorization of appropriations.--
There is authorized to be appropriated to carry out
this section $1,000,000 for fiscal year
1999.''.</DELETED>
<DELETED> (e) Data Required.--Section 485(g) (20 U.S.C. 1092(g)) is
amended--</DELETED>
<DELETED> (1) in paragraph (1), by adding at the end the
following:</DELETED>
<DELETED> ``(I)(i) The total revenues, and the
revenues from football, men's basketball, women's
basketball, all other men's sports combined, and all
other women's sports combined, derived by the
institution from the institution's intercollegiate
athletics activities.</DELETED>
<DELETED> ``(ii) For the purpose of clause (i)
revenues from intercollegiate athletics activities
allocable to a sport shall include, without limitation,
gate receipts, broadcast revenues, appearance
guarantees and options, concessions and advertising,
except that revenues such as student activities fees or
alumni contributions not so allocable shall be included
in the calculation of total revenues only.</DELETED>
<DELETED> ``(J)(i) The total expenses, and the
expenses attributable to football, men's basketball,
women's basketball, all other men's sports combined and
all other women's sports combined, made by the
institution for the institution's intercollegiate
athletics activities.</DELETED>
<DELETED> ``(ii) For the purpose of clause (i)
expenses for intercollegiate athletics activities
allocable to a sport shall include without limitation
grants-in-aid, salaries, travel, equipment, and
supplies, except that expenses such as general and
administrative overhead not so allocable shall be
included in the calculation of total expenses
only.</DELETED>
<DELETED> ``(K) A statement of any reduction that
will, or is likely to, occur during the ensuing 4
academic years in the number of athletes that will be
permitted to participate in any collegiate sport, or in
the financial resources that the institution will make
available for any such sport, and the reasons for any
such reduction, to the extent the reduction is known at
the time of the preparation of the report.'';
and</DELETED>
<DELETED> (2) by striking paragraph (5).''.</DELETED>
<DELETED> (f) GEPA Amendment.--Section 444(a)(4)(B) of the General
Education Provisions Act (20 U.S.C. 1232g(a)(4)(B)) is amended--
</DELETED>
<DELETED> (1) by redesignating clauses (iii) and (iv) as
clauses (iv) and (v), respectively; and</DELETED>
<DELETED> (2) by inserting after clause (ii) the
following:</DELETED>
<DELETED> ``(iii) records that are
maintained by local police or campus security
officers of an educational agency or
institution about--</DELETED>
<DELETED> ``(I) individuals who have
been found guilty of, or have pled
guilty to, committing or participating
in any criminal activity as defined in
Federal, State, or local law that has
occurred while the individual was a
student in attendance, including audit
or noncredit, at an educational
institution; and</DELETED>
<DELETED> ``(II) findings of guilt
of criminal misconduct and related
sanctions from any previously attended
educational agencies or institutions
where such records were created on or
after September 1, 1999, and that are
maintained by the institution currently
or most recently attended by the
individual;''.</DELETED>
<DELETED>SEC. 486. NATIONAL STUDENT LOAN DATA BANK SYSTEM.</DELETED>
<DELETED> Section 485B (20 U.S.C. 1092b) is amended by adding at the
end the following:</DELETED>
<DELETED> ``(h) Student Status Confirmation Report.--In order to
reduce unnecessary paperwork and to increase the efficient
administration, the Secretary shall assure that borrowers under part E
are included in the Student Status Confirmation Report in the same
manner as borrowers under parts B and D.''.</DELETED>
<DELETED>SEC. 487. TRAINING IN FINANCIAL AID SERVICES.</DELETED>
<DELETED> Section 486 (20 U.S.C. 1093) is amended to read as
follows:</DELETED>
<DELETED>``SEC. 486. INFORMATION ON THE COSTS OF HIGHER
EDUCATION.</DELETED>
<DELETED> ``(a) In General.--For the purpose of providing
comparative information to families about the costs of higher
education--</DELETED>
<DELETED> ``(1) the National Center for Education Statistics
shall--</DELETED>
<DELETED> ``(A) develop a standard definition for
the following data elements:</DELETED>
<DELETED> ``(i) Tuition and fees.</DELETED>
<DELETED> ``(ii) Total cost of attendance,
including costs such as housing, books,
supplies, and transportation.</DELETED>
<DELETED> ``(iii) Average amount of
financial assistance received by a student who
attends an institution of higher education, in
terms of the following:</DELETED>
<DELETED> ``(I) Grants and
loans.</DELETED>
<DELETED> ``(II) Institutional and
other assistance.</DELETED>
<DELETED> ``(iv) Percentage of students
receiving student financial assistance, in
terms of the following:</DELETED>
<DELETED> ``(I) Grants and
loans.</DELETED>
<DELETED> ``(II) Institutional and
other assistance;</DELETED>
<DELETED> ``(B) report the definitions to each
institution of higher education and the Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House
of Representatives not later than 90 days after the
date of enactment of the Higher Education Amendments of
1998;</DELETED>
<DELETED> ``(C) collect information regarding the
data elements described in subparagraph (A) with
respect to all institutions of higher education, and
make available the information each year in a timely
fashion through the integrated postsecondary education
data system, beginning with the information from the
1999-2000 academic year;</DELETED>
<DELETED> ``(D) provide the public notice when the
information described in subparagraph (C) is available
for public inspection; and</DELETED>
<DELETED> ``(E) publish in a timely fashion a report
after the third year of collection of the information
described in subparagraph (C) that compares the
information described in subparagraph (C)
longitudinally by institution, which information shall
be presented in a form that is easily understandable,
including clear definitions of the data elements
described in subparagraph (A), to allow parents and
students to make informed decisions about attending
college; and</DELETED>
<DELETED> ``(2) institutions of higher education shall
provide information regarding each data element described in
paragraph (1)(A) to the National Center for Education
Statistics by March 1 of each year, beginning in the year
2000.</DELETED>
<DELETED> ``(b) Study.--</DELETED>
<DELETED> ``(1) In general.--In consultation with the Bureau
of Labor Statistics, the National Center for Education
Statistics shall conduct a national study of expenditures at
institutions of higher education. Such study shall include
information about--</DELETED>
<DELETED> ``(A) expenditures for--</DELETED>
<DELETED> ``(i) faculty salaries and
benefits;</DELETED>
<DELETED> ``(ii) administrative salaries,
benefits, and expenses;</DELETED>
<DELETED> ``(iii) academic support
services;</DELETED>
<DELETED> ``(iv) research;</DELETED>
<DELETED> ``(v) construction; and</DELETED>
<DELETED> ``(vi) technology;</DELETED>
<DELETED> ``(B) how such expenditures change over
time; and</DELETED>
<DELETED> ``(C) how such expenditures relate to
college costs.</DELETED>
<DELETED> ``(2) Final report.--The National Center for
Education Statistics shall submit a report regarding the
findings of the study required by paragraph (1) to the
Committee on Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House of
Representatives not later than September 30, 2001.</DELETED>
<DELETED> ``(c) Higher Education Market Basket.--In consultation
with the Bureau of Labor Statistics, the National Center for Education
Statistics shall develop a Higher Education Market Basket that
identifies the items that comprise the costs of higher education. The
National Center for Education Statistics shall provide a report on the
basket to the Committee on Labor and Human Resources of the Senate and
the Committee on Education and the Workforce of the House of
Representatives not later than September 30, 2002.''.</DELETED>
<DELETED>SEC. 488. PROGRAM PARTICIPATION AGREEMENTS.</DELETED>
<DELETED> Section 487 (20 U.S.C. 1094) is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in paragraph (3)--</DELETED>
<DELETED> (i) by striking subparagraph (B);
and</DELETED>
<DELETED> (ii) by redesignating
subparagraphs (C) and (D) as subparagraphs (B)
and (C), respectively;</DELETED>
<DELETED> (B) in paragraph (9), by striking ``part
B'' and inserting ``part B or D'';</DELETED>
<DELETED> (C) in paragraph (14)--</DELETED>
<DELETED> (i) in subparagraph (A), by
striking ``part B'' and inserting ``part B or
D''; and</DELETED>
<DELETED> (ii) in subparagraph (B)--
</DELETED>
<DELETED> (I) by inserting ``for-
profit'' after ``Any'';</DELETED>
<DELETED> (II) by striking ``and any
eligible institution which'' and
inserting ``or''; and</DELETED>
<DELETED> (III) by striking ``part
B'' and inserting ``part B or
D'';</DELETED>
<DELETED> (D) in paragraph (15), by striking ``State
review entities'' and inserting ``the State agencies'';
and</DELETED>
<DELETED> (E) by amending paragraph (21) to read as
follows:</DELETED>
<DELETED> ``(21) The institution will meet the requirements
established by the Secretary and accrediting agencies or
associations, and will provide evidence to the Secretary that
the institution has the authority to operate within a State.'';
and</DELETED>
<DELETED> (2) in subsection (c)--</DELETED>
<DELETED> (A) in paragraph (1)(A)(i), by striking
``State review entities referred to in'' and inserting
``appropriate State agency notifying the Secretary
under'';</DELETED>
<DELETED> (B) in paragraph (4), by striking ``,
after consultation with each State review entity
designated under subpart 1 of part H,''; and</DELETED>
<DELETED> (C) in paragraph (5), by striking ``State
review entities designated'' and inserting ``State
agencies notifying the Secretary''.</DELETED>
<DELETED>SEC. 489. REGULATORY RELIEF AND IMPROVEMENT.</DELETED>
<DELETED> Section 487A (20 U.S.C. 1094a) is amended to read as
follows:</DELETED>
<DELETED>``SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.</DELETED>
<DELETED> ``(a) Quality Assurance Program.--</DELETED>
<DELETED> ``(1) In general.--The Secretary is authorized to
select institutions for voluntary participation in a Quality
Assurance Program that provides participating institutions with
an alternative management approach through which individual
schools develop and implement their own comprehensive systems,
including processing and disbursement of student financial aid,
verification of student financial aid application data, and
entrance and exit interviews, thereby enhancing program
integrity within the student aid delivery system. The Quality
Assurance Program authorized by this section shall be based on
criteria that include demonstrated institutional performance,
as determined by the Secretary, and shall take into
consideration current quality assurance goals, as determined by
the Secretary.</DELETED>
<DELETED> ``(2) Waiver.--The Secretary is authorized to
waive for any institution participating in the Quality
Assurance Program any regulations dealing with reporting or
verification requirements in this title that are addressed by
the institution's alternative management system, and may
substitute such quality assurance reporting as the Secretary
determines necessary to ensure accountability and compliance
with the purposes of the programs under this title.</DELETED>
<DELETED> ``(3) Determination.--The Secretary is authorized
to determine--</DELETED>
<DELETED> ``(A) when an institution that is unable
to administer the Quality Assurance Program shall be
removed from such program; and</DELETED>
<DELETED> ``(B) when institutions desiring to cease
participation in such program will be required to
complete the current award year under the requirements
of the Quality Assurance Program.</DELETED>
<DELETED> ``(4) Review and evaluation.--The Secretary shall
review and evaluate the Quality Assurance Program conducted by
each participating institution and, on the basis of that
evaluation, make recommendations regarding amendments to this
Act that will streamline the administration and enhance the
integrity of Federal student assistance programs. Such
recommendations shall be submitted to the Committee on Labor
and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives.</DELETED>
<DELETED> ``(b) Regulatory Improvement and Streamlining
Experiments.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall review and
evaluate the experience of institutions participating as
experimental sites during the period of 1993 through 1998 under
this section (as such section was in effect on the day before
the date of enactment of the Higher Education Amendments of
1998), and shall submit a report based on this review and
evaluation to the Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce of the
House of Representatives not later than 6 months after the
enactment of the Higher Education Amendments of 1998. Such
report shall include--</DELETED>
<DELETED> ``(A) a list of participating institutions
and the specific statutory or regulatory waivers
granted to each institution;</DELETED>
<DELETED> ``(B) the findings and conclusions reached
regarding each of the experiments conducted;
and</DELETED>
<DELETED> ``(C) recommendations for amendments to
improve and streamline this Act, based on the results
of the experiment.</DELETED>
<DELETED> ``(2) Selection.--</DELETED>
<DELETED> ``(A) In general.--The Secretary is
authorized to select a limited number of institutions
for voluntary participation as experimental sites to
provide recommendations to the Secretary on the impact
and effectiveness of proposed regulations or new
management initiatives, except that additional
institutions may not be selected by the Secretary until
the report required by subsection (b)(1) has been
submitted to Congress.</DELETED>
<DELETED> ``(B) Consultation.--Prior to approving
any additional experimental sites, the Secretary shall
consult with the Committee on Labor and Human Resources
of the Senate and the Committee on Education and the
Workforce of the House of Representatives and shall
provide--</DELETED>
<DELETED> ``(i) a list of institutions
proposed for participation in the experiment
and the specific statutory or regulatory
waivers proposed to be granted to each
institution;</DELETED>
<DELETED> ``(ii) the objectives to be
achieved through the experiment; and</DELETED>
<DELETED> ``(iii) the period of time over
which the experiment is to be
conducted.</DELETED>
<DELETED> ``(C) Waivers.--The Secretary is
authorized to waive, for any institution participating
as an experimental site under subparagraph (A), any
requirements in this title, or regulations prescribed
under this title, that will bias experimental
results.</DELETED>
<DELETED> ``(c) Definitions.--For purposes of this section, the term
`current award year' is defined as the award year during which the
participating institution indicates the institution's intention to
cease participation.''.</DELETED>
<DELETED>SEC. 489A. DISTANCE EDUCATION DEMONSTRATION
PROGRAMS.</DELETED>
<DELETED> Part G (20 U.S.C. 1088 et seq.) is amended by inserting
after section 487B (20 U.S.C. 1094a) the following:</DELETED>
<DELETED>``SEC. 487C. DISTANCE EDUCATION DEMONSTRATION
PROGRAMS.</DELETED>
<DELETED> ``(a) Purpose.--It is the purpose of this section--
</DELETED>
<DELETED> ``(1) to allow demonstration programs that are
strictly monitored by the Department to test the quality and
viability of expanded distance education programs currently
restricted under this Act;</DELETED>
<DELETED> ``(2) to help determine the specific statutory and
regulatory requirements which should be altered to provide
greater access to high quality distance education programs;
and</DELETED>
<DELETED> ``(3) to help determine the appropriate level of
Federal assistance for students enrolled in distance education
programs.</DELETED>
<DELETED> ``(b) Demonstration Programs Authorized.--</DELETED>
<DELETED> ``(1) In general.--The Secretary, in accordance
with the provisions of subsection (d), is authorized to select
institutions of higher education or consortia of such
institutions for voluntary participation in a Distance
Education Demonstration Program that provides participating
institutions with the ability to offer distance education
programs that do not meet all or a portion of the sections or
regulations described in paragraph (2).</DELETED>
<DELETED> ``(2) Waivers.--The Secretary is authorized to
waive, for any institution or consortia participating in a
Distance Education Demonstration Program, 1 or more of the
requirements of section 472(5) as the section relates to
computer costs, sections 472(10), 481(a)(3)(A), 481(a)(3)(B),
484(l)(1), or 1 or more of the regulations prescribed for
distance education under part F or G.</DELETED>
<DELETED> ``(3) Special rule.--An institution of higher
education, as defined in section 481(a), is eligible to
participate in the demonstration program authorized under this
section if such institution awards a degree, except that--
</DELETED>
<DELETED> ``(A) such institutions that are described
in section 481(a)(1)(C) shall not be eligible to
participate; and</DELETED>
<DELETED> ``(B) subject to subparagraph (A), such
institutions that meet the requirements of subsection
(a) of section 481, other than the requirements of
paragraph (3)(A) or (3)(B) of such subsection, shall be
eligible to participate.</DELETED>
<DELETED> ``(c) Application.--</DELETED>
<DELETED> ``(1) In general.--Each institution or consortia
of institutions desiring to participate in a demonstration
program under this section shall submit an application to the
Secretary at such time and in such manner as the Secretary may
require.</DELETED>
<DELETED> ``(2) Contents.--Each application shall include--
</DELETED>
<DELETED> ``(A) a description of the institution or
consortium's consultation with a recognized accrediting
agency or association with respect to quality
assurances for the distance education programs to be
offered;</DELETED>
<DELETED> ``(B) a description of the statutory and
regulatory requirements described in subsection (b)(2)
for which a waiver is sought and the reasons for which
the waiver is sought;</DELETED>
<DELETED> ``(C) a description of the distance
education programs to be offered;</DELETED>
<DELETED> ``(D) a description of the students to
whom distance education programs will be
offered;</DELETED>
<DELETED> ``(E) an assurance that the institution or
consortium will offer full cooperation with the ongoing
evaluations of the demonstration program provided for
in this section; and</DELETED>
<DELETED> ``(F) such other information as the
Secretary may require.</DELETED>
<DELETED> ``(d) Selection.--The Secretary is authorized to select
not more than 5 institutions or consortia to participate in the initial
year of the demonstration program authorized under this section. If
expansion of the demonstration program can be supported on the basis of
the evaluations conducted pursuant to subsections (f) and (g), the
Secretary may select not more than 10 additional institutions or
consortia, taking into account the number and quality of applications
received and the Department's capacity to oversee and monitor each
demonstration program. To the extent feasible, the Secretary shall
select a representative sample of institutions for participation. In
selecting institutions for participation, the Secretary shall take into
consideration the institution's financial and administrative capability
and the type of program or programs being offered via distance
education course offerings.</DELETED>
<DELETED> ``(e) Notification.--The Secretary shall make available to
the public and to the Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce of the House of
Representatives a list of institutions or consortia selected to
participate in the demonstration program authorized by this section.
Such notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution or consortia
and a description of the distance education courses to be
offered.</DELETED>
<DELETED> ``(f) Evaluations and Reports.--</DELETED>
<DELETED> ``(1) Evaluation.--The Secretary, on an annual
basis, shall evaluate the demonstration programs authorized
under this section. Such evaluations shall specifically
review--</DELETED>
<DELETED> ``(A) the number and types of students
participating in the programs being offered, including
the progress of participating students toward
recognized associate, bachelor's, or graduate degrees,
and the degree to which participation in such programs
increased;</DELETED>
<DELETED> ``(B) issues related to student financial
assistance for distance education; and</DELETED>
<DELETED> ``(C) the extent to which statutory or
regulatory requirements not waived under the
demonstration program present difficulties for students
or institutions.</DELETED>
<DELETED> ``(2) Policy analysis.--In addition, the Secretary
shall review current policies and identify those policies which
present impediments to the development and use of distance
learning and other nontraditional methods of expanding access
to education.</DELETED>
<DELETED> ``(3) Reports.--</DELETED>
<DELETED> ``(A) In general.--Within 18 months of the
initiation of the demonstration program, the Secretary
shall report to the Committee on Labor and Human
Resources of the Senate and and the Committee on
Education and the Workforce of the House of Representatives with
respect to--</DELETED>
<DELETED> ``(i) the evaluations of the
demonstration programs authorized under this
section; and</DELETED>
<DELETED> ``(ii) any proposed statutory
changes designed to enhance the use of distance
education.</DELETED>
<DELETED> ``(B) Additional reports.--The Secretary
shall provide additional reports to the Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House
of Representatives on an annual basis regarding the
demonstration programs authorized under this
section.</DELETED>
<DELETED> ``(g) Independent Evaluation.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall enter into
a contract with the National Academy of Sciences to study the
quality of and student learning outcomes in distance education
programs. Such study shall include--</DELETED>
<DELETED> ``(A) identification of the elements by
which quality in distance education can be assessed,
such as subject matter, interactivity, and student
outcomes; and</DELETED>
<DELETED> ``(B) identification of the types of
students which can most benefit from distance education
in areas such as access to higher education,
persistence, and graduation.</DELETED>
<DELETED> ``(2) Scope.--Such study shall include distance
education programs offered by the institutions or consortia
participating in the demonstration program authorized by this
section, as well as the distance education programs offered by
other institutions.</DELETED>
<DELETED> ``(3) Interim and final reports.--The Secretary
shall request that the National Academy of Sciences submit an
interim report to the Secretary, the Committee on Labor and
Human Resources of the Senate, and the Committee on Education
and the Workforce of the House of Representatives not later
than December 31, 2000, and a final report not later than
December 31, 2002, regarding the study.</DELETED>
<DELETED> ``(4) Funding.--The Secretary shall make available
not more than $1,000,000 for the study required by this
subsection.</DELETED>
<DELETED> ``(h) Oversight.--In conducting the demonstration program
authorized under this section, the Secretary shall, on a continuing
basis--</DELETED>
<DELETED> ``(1) assure compliance of institutions or
consortia with the requirements of this title (other than the
sections and regulations that are waived under subsection
(b)(2));</DELETED>
<DELETED> ``(2) provide technical assistance;</DELETED>
<DELETED> ``(3) monitor fluctuations in the student
population enrolled in the participating institutions or
consortia; and</DELETED>
<DELETED> ``(4) consult with appropriate accrediting
agencies or associations and appropriate State regulatory
authorities.</DELETED>
<DELETED> ``(i) Definition.--For the purpose of this section, the
term `distance learning' means an educational process that is
characterized by the separation, in time or place, between instructor
and student. Distance learning may include courses offered principally
through the use of--</DELETED>
<DELETED> ``(1) television, audio, or computer transmission,
such as open broadcast, closed circuit, cable, microwave, or
satellite transmission;</DELETED>
<DELETED> ``(2) audio or computer conferencing;</DELETED>
<DELETED> ``(3) video cassettes or discs; or</DELETED>
<DELETED> ``(4) correspondence.''.</DELETED>
<DELETED>SEC. 489B. ADVISORY COMMITTEE ON STUDENT FINANCIAL
ASSISTANCE.</DELETED>
<DELETED> Section 491 (20 U.S.C. 1098) is amended--</DELETED>
<DELETED> (1) in subsection (b)--</DELETED>
<DELETED> (A) in the second sentence, by striking
``and expenditures'' and inserting ``, expenditures and
staffing levels''; and</DELETED>
<DELETED> (B) by inserting after the third sentence
the following: ``Reports, publications, and other
documents, including such reports, publications, and
documents in electronic form, shall not be subject to
review by the Secretary.'';</DELETED>
<DELETED> (2) in subsection (e)--</DELETED>
<DELETED> (A) by redesignating paragraphs (3), (4),
and (5), as paragraphs (4), (5), and (6), respectively;
and</DELETED>
<DELETED> (B) by inserting after paragraph (2) the
following:</DELETED>
<DELETED> ``(3) No officers or full-time employees of the
Federal Government shall serve as members of the Advisory
Committee.'';</DELETED>
<DELETED> (3) in subsection (g), by striking ``(1) Members''
and all that follows through ``of the United States may'' and
inserting ``Members of the Advisory Committee may'';</DELETED>
<DELETED> (4) in subsection (h)(1)--</DELETED>
<DELETED> (A) by inserting ``determined'' after ``as
may be''; and</DELETED>
<DELETED> (B) by adding at the end the following:
``The Advisory Committee may appoint not more than 1
full-time equivalent, nonpermanent, consultant without
regard to the provisions of title 5, United States
Code. The Advisory Committee shall not be required by
the Secretary to reduce personnel to meet agency
personnel reduction goals.'';</DELETED>
<DELETED> (5) in subsection (i), by striking ``$750,000''
and inserting ``$800,000'';</DELETED>
<DELETED> (6) by amending subsection (j) to read as
follows:</DELETED>
<DELETED> ``(j) Special Analyses and Activities.--The Advisory
Committee shall--</DELETED>
<DELETED> ``(1) monitor and evaluate the modernization of
student financial aid systems and delivery processes, including
the implementation of a performance-based organization within
the Department, and report to Congress regarding such
modernization on not less than an annual basis, including
recommendations for improvement;</DELETED>
<DELETED> ``(2) assess the adequacy of current methods for
disseminating information about programs under this title and
recommend improvements, as appropriate, regarding early needs
assessment and information for first-year secondary school
students;</DELETED>
<DELETED> ``(3) assess and make recommendations concerning
the feasibility and degree of use of appropriate technology in
the application for, and delivery and management of, financial
assistance under this title, as well as policies that promote
use of such technology to reduce cost and enhance service and
program integrity, including electronic application and
reapplication, just-in-time delivery of funds, reporting of
disbursements and reconciliation;</DELETED>
<DELETED> ``(4) assess the implications of distance learning
on student eligibility and other requirements for financial
assistance under this title, and make recommendations that will
enhance access to postsecondary education through distance
learning while maintaining access, through on-campus
instruction at eligible institutions, and program integrity;
and</DELETED>
<DELETED> ``(5) make recommendations to the Secretary
regarding redundant or outdated provisions of and regulations
under this Act, consistent with the Secretary's requirements
under section 498A(b)(3).'';</DELETED>
<DELETED> (7) in subsection (k), by striking ``1998'' and
inserting ``2004''; and</DELETED>
<DELETED> (8) by repealing subsection (l).</DELETED>
<DELETED>SEC. 489C. REGIONAL MEETINGS AND NEGOTIATED
RULEMAKING.</DELETED>
<DELETED> Section 492 (20 U.S.C. 1098a) is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in paragraph (1)--</DELETED>
<DELETED> (i) by inserting ``, after the
enactment of each Act to reauthorize this Act
that contains an amendment to this title,''
after ``The Secretary''; and</DELETED>
<DELETED> (ii) by inserting ``D,'' after
``B,''; and</DELETED>
<DELETED> (B) in paragraph (2)--</DELETED>
<DELETED> (i) by inserting ``D,'' after
``B,''; and</DELETED>
<DELETED> (ii) by striking ``1992'' and
inserting ``1998, and for the implementation of
this title as amended by each Act to
reauthorize this Act enacted after the date of
enactment of the Higher Education Amendments of
1998 that contains an amendment to this
title''; and</DELETED>
<DELETED> (2) in subsection (b)--</DELETED>
<DELETED> (A) by striking ``After'' and inserting
the following:</DELETED>
<DELETED> ``(1) In general.--After'';</DELETED>
<DELETED> (B) in paragraph (1) (as redesignated by
subparagraph (A))--</DELETED>
<DELETED> (i) by inserting ``D,'' after
``B,''; and</DELETED>
<DELETED> (ii) by striking ``1992'' and
inserting ``1998, and for the implementation of
this title as amended by each Act to
reauthorize this Act enacted after the date of
enactment of the Higher Education Amendments of
1998 that contains an amendment to this
title,''; and</DELETED>
<DELETED> (C) by adding at the end the
following:</DELETED>
<DELETED> ``(2) Expansion of negotiated rulemaking in
student loan programs.--All regulations pertaining to the
student assistance programs in parts B, D, G, and H, that are
promulgated after the date of enactment of this paragraph,
shall be subject to the negotiated rulemaking process, unless
the Secretary determines that exceptional circumstances exist
making negotiated rulemaking impractical with respect to given
regulations and publishes the basis for such determination in
the Federal Register at the same time as the proposed
regulations in questions are first published. All published
proposed regulations shall conform, unless impracticable, to
agreements resulting from such negotiated rulemaking. Such
negotiated rulemaking shall be conducted in accordance with the
provisions of paragraph (1).''.</DELETED>
<DELETED>PART H--PROGRAM INTEGRITY TRIAD</DELETED>
<DELETED>SEC. 491. STATE ROLE AND RESPONSIBILITIES.</DELETED>
<DELETED> Subpart 1 of part H of title IV (20 U.S.C. 1099a et seq.)
is amended to read as follows:</DELETED>
<DELETED>``Subpart 1--State Role</DELETED>
<DELETED>``SEC. 495. STATE RESPONSIBILITIES.</DELETED>
<DELETED> ``(a) State Responsibilities.--As part of the integrity
program authorized by this part, each State, through 1 State agency or
several State agencies selected by the State, shall--</DELETED>
<DELETED> ``(1) furnish the Secretary, upon request,
information with respect to the process for licensing or other
authorization for institutions of higher education to operate
within the State;</DELETED>
<DELETED> ``(2) notify the Secretary promptly whenever the
State revokes a license or other authority to operate an
institution of higher education; and</DELETED>
<DELETED> ``(3) notify the Secretary promptly whenever the
State has credible evidence that an institution of higher
education within the State--</DELETED>
<DELETED> ``(A) has committed fraud in the
administration of the student assistance programs
authorized by this title; or</DELETED>
<DELETED> ``(B) has substantially violated a
provision of this title.</DELETED>
<DELETED> ``(b) Institutional Responsibility.--Each institution of
higher education shall provide evidence to the Secretary that the
institution has authority to operate within a State at the time the
institution is certified under subpart 3.''.</DELETED>
<DELETED>SEC. 492. ACCREDITING AGENCY RECOGNITION.</DELETED>
<DELETED> (a) Amendments to Headings.--Subpart 2 of part H of title
IV (20 U.S.C. 1099b et seq.) is amended--</DELETED>
<DELETED> (1) in the subpart heading, by striking
``Approval'' and inserting ``Recognition''; and</DELETED>
<DELETED> (2) in the heading for section 496, by striking
``approval'' and inserting ``recognition''.</DELETED>
<DELETED> (b) Recognition of Accrediting Agency or Association.--
Section 496 (20 U.S.C. 1099b) is amended--</DELETED>
<DELETED> (1) in the heading for subsection (a), by striking
``Standards'' and inserting ``Criteria'';</DELETED>
<DELETED> (2) in subsection (a)--</DELETED>
<DELETED> (A) in the matter preceding paragraph (1),
by striking ``standards'' each place the term appears
and inserting ``criteria'';</DELETED>
<DELETED> (B) in paragraph (4)--</DELETED>
<DELETED> (i) by striking ``at the
institution'' and inserting ``offered by the
institution''; and</DELETED>
<DELETED> (ii) by inserting ``, including
distance education courses or programs,'' after
``higher education''; and</DELETED>
<DELETED> (C) in paragraph (5)--</DELETED>
<DELETED> (i) by striking subparagraph
(I);</DELETED>
<DELETED> (ii) by redesignating
subparagraphs (A) through (H) as subparagraphs
(B) through (I), respectively;</DELETED>
<DELETED> (iii) by inserting before
subparagraph (B) the following:</DELETED>
<DELETED> ``(A) success with respect to student
achievement in relation to the institution's mission,
including, as appropriate, consideration of course
completion, State licensing examination, and job
placement rates;'';</DELETED>
<DELETED> (iv) in subparagraph (I) (as
redesignated by clause (ii)), by striking ``in
clock hours or credit hours''; and</DELETED>
<DELETED> (v) in subparagraph (L)--
</DELETED>
<DELETED> (I) by inserting ``record
of'' before ``compliance'';</DELETED>
<DELETED> (II) by striking ``Act,
including any'' and inserting ``Act
based on the'';</DELETED>
<DELETED> (III) by inserting ``any''
after ``reviews, and''; and</DELETED>
<DELETED> (IV) in the matter
following subparagraph (L), by striking
``(G),'';</DELETED>
<DELETED> (3) by amending paragraph (1) of subsection (l) to
read as follows: ``(1)(A)(i) If the Secretary determines that
an accrediting agency or association has failed to apply
effectively the standards in this section, or is otherwise not
in compliance with the requirements of this section, the
Secretary shall--</DELETED>
<DELETED> ``(I) after notice and opportunity for a
hearing, limit, suspend, or terminate the approval of
the agency or association; or</DELETED>
<DELETED> ``(II) require the agency or association
to take appropriate action to bring the agency or
association into compliance with such requirements
within a timeframe specified by the Secretary, except
that--</DELETED>
<DELETED> ``(aa) such timeframe shall not
exceed 12 months unless the Secretary extends
such period for good cause; and</DELETED>
<DELETED> ``(bb) if the agency or
association fails to bring the agency or
association into compliance within such
timeframe, the Secretary shall, after notice
and opportunity for a hearing, limit, suspend,
or terminate the approval of the agency or
association.''; and</DELETED>
<DELETED> (4) in subsection (n)(3), by adding at the end the
following: ``When the Secretary decides to recognize an
accrediting agency or association, the Secretary shall
determine the agency or association's scope of recognition. If
the agency or association reviews institutions offering
distance education courses or programs and the Secretary
determines that the agency or association meets the
requirements of this section, then the agency shall be
recognized and the scope of recognition shall include
accreditation of institutions offering distance education
courses or programs.''.</DELETED>
<DELETED>SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.</DELETED>
<DELETED> (a) Single Application Form.--Section 498(b) (20 U.S.C.
1099c(b)) is amended--</DELETED>
<DELETED> (1) in paragraph (1), by striking ``and
capability'' and inserting ``financial responsibility, and
administrative capability'';</DELETED>
<DELETED> (2) by amending paragraph (3) to read as
follows:</DELETED>
<DELETED> ``(3) requires--</DELETED>
<DELETED> ``(A) a description of the third party
servicers of an institution of higher education;
and</DELETED>
<DELETED> ``(B) the institution to maintain a copy
of any contract with a financial aid service provider
or loan servicer, and provide a copy of any such
contract to the Secretary upon request;'';</DELETED>
<DELETED> (3) in paragraph (4), by striking the period and
inserting ``; and''; and</DELETED>
<DELETED> (4) by adding at the end the following:</DELETED>
<DELETED> ``(5) provides, at the option of the institution,
for participation in 1 or more of the programs under part
B.''.</DELETED>
<DELETED> (b) Financial Responsibility Standards.--Section 498(c)
(20 U.S.C. 1099c(c)) is amended--</DELETED>
<DELETED> (1) in paragraph (2), by striking ``with respect
to operating losses, net worth, asset to liabilities ratios, or
operating fund deficits'' and inserting ``regarding ratios that
demonstrate financial responsibility,'';</DELETED>
<DELETED> (2) in paragraph (3)(A), by striking ``Secretary
third party'' and all that follows through ``payable to the
Secretary'' and inserting ``Secretary any third party
guarantees, which the Secretary determines are reasonable,
that''; and</DELETED>
<DELETED> (3) in paragraph (4)--</DELETED>
<DELETED> (A) in the matter preceding subparagraph
(A), by striking ``ratio of current assets to current
liabilities'' and inserting ``criteria''; and</DELETED>
<DELETED> (B) in subparagraph (C), by striking
``current operating ratio requirement'' and inserting
``criteria''.</DELETED>
<DELETED> (c) Financial Guarantees From Owners.--Section 498(e) (20
U.S.C. 1099c(e)) is amended--</DELETED>
<DELETED> (1) in the subsection heading, by inserting ``of
For-Profit Institutions'' after ``Owners'';</DELETED>
<DELETED> (2) in paragraph (1)(A), by inserting ``from an''
and inserting ``from a for-profit'';</DELETED>
<DELETED> (3) in paragraph (2)--</DELETED>
<DELETED> (A) in the matter preceding clause (i) of
subparagraph (A), by inserting ``for-profit'' after
``or more'';</DELETED>
<DELETED> (B) in subparagraph (B), by inserting
``for-profit'' after ``or more''; and</DELETED>
<DELETED> (4) in paragraph (3), by striking ``operation of,
an institution or'' and inserting ``operation of, a for-profit
institution or the''.</DELETED>
<DELETED> (d) Applications and Site Visits.--Section 498(f) (20
U.S.C. 1099c(f)) is amended--</DELETED>
<DELETED> (1) in the subsection heading by striking ``; Site
Visits and Fees'' and inserting ``and Site Visits'';</DELETED>
<DELETED> (2) in the second sentence, by striking ``shall''
and inserting ``may'';</DELETED>
<DELETED> (3) in the third sentence, strike ``may'' and
insert ``shall''; and</DELETED>
<DELETED> (4) by striking the fourth sentence.</DELETED>
<DELETED> (e) Time Limitations on, and Renewal of, Eligibility.--
Subsection (g) of section 498 (20 U.S.C. 1099c) is amended to read as
follows:</DELETED>
<DELETED> ``(g) Time Limitations on, and Renewal of, Eligibility.--
</DELETED>
<DELETED> ``(1) General rule.--After the expiration of the
certification of any institution under the schedule prescribed
under this section (as in effect prior to the enactment of the
Higher Education Act Amendments of 1998), or upon request for
initial certification from an institution not previously
certified, the Secretary may certify the eligibility for the
purposes of any program authorized under this title of each
such institution for a period not to exceed 6 years.</DELETED>
<DELETED> ``(2) Notification.--The Secretary shall notify
each institution of higher education not later than 6 months
prior to the date of the expiration of the institution's
certification.</DELETED>
<DELETED> ``(3) Institutions outside the united states.--The
Secretary shall promulgate regulations regarding the
recertification requirements applicable to an institution of
higher education outside of the United States that meets the
requirements of section 481(a)(1)(C) and received less than
$500,000 in funds under part B for the most recent year for
which data are available.</DELETED>
<DELETED> (f) Provisional Certification.--Section 498(h) (20 U.S.C.
1099c(h)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)(B)(ii), by striking ``an
eligible'' and inserting ``a for-profit eligible'';
and</DELETED>
<DELETED> (2) in paragraph (2), by striking ``the approval''
and inserting ``the recognition''.</DELETED>
<DELETED> (g) Treatment of Changes of Ownership.--Section 498(i) (20
U.S.C. 1099c(i)) is amended--</DELETED>
<DELETED> (1) in the subsection heading, by inserting ``of
For-Profit Institutions'' after ``Ownership''; and</DELETED>
<DELETED> (2) in paragraph (2)--</DELETED>
<DELETED> (A) in subparagraph (A), by inserting
``for-profit'' before ``institution'';</DELETED>
<DELETED> (B) in subparagraph (C), by striking
``two'' and inserting ``a for-profit institution with
one'';</DELETED>
<DELETED> (C) in subparagraph (D), by inserting
``for-profit'' before ``institutions'';</DELETED>
<DELETED> (D) in subparagraph (E), by inserting
``for-profit'' before ``institutions''; and</DELETED>
<DELETED> (E) in subparagraph (F), by inserting
``for-profit'' before ``institution''.</DELETED>
<DELETED> (h) Treatment of Branches.--The second sentence of section
498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by inserting ``after the
branch is certified by the Secretary as a branch campus participating
in a program under title IV,'' after ``2 years''.</DELETED>
<DELETED>SEC. 494. PROGRAM REVIEW AND DATA.</DELETED>
<DELETED> Section 498A (20 U.S.C. 1099c-1) is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in paragraph (2)--</DELETED>
<DELETED> (i) in the matter preceding
subparagraph (A), by striking ``may'' and
inserting ``shall'';</DELETED>
<DELETED> (ii) by amending subparagraph (C)
to read as follows:</DELETED>
<DELETED> ``(C) institutions with a significant
fluctuation in Federal Stafford Loan volume, Federal
Direct Stafford/Ford Loan volume, or Federal Pell Grant
award volume, or any combination thereof, in the year
for which the determination is made, compared to the
year prior to such year, that are not accounted for by
changes in the Federal Stafford Loan program, the
Federal Direct Stafford/Ford Loan program, or the Pell
Grant program, or any combination thereof;'';</DELETED>
<DELETED> (iii) by amending subparagraph (D)
to read as follows:</DELETED>
<DELETED> ``(D) institutions reported to have
deficiencies or financial aid problems by the State
licensing or authorizing agency, or by the appropriate
accrediting agency or association;'';</DELETED>
<DELETED> (iv) in subparagraph (E), by
inserting ``and'' after the semicolon;
and</DELETED>
<DELETED> (v) by striking subparagraphs (F)
and (G), and inserting the following:</DELETED>
<DELETED> ``(F) such other institutions that the
Secretary determines may pose a significant risk of
failure to comply with the administrative capability or
financial responsibility provisions of this title;
and''; and</DELETED>
<DELETED> (B) in paragraph (3)(A), by inserting
``relevant'' after ``all''; and</DELETED>
<DELETED> (2) by amending subsection (b) to read as
follows:</DELETED>
<DELETED> ``(b) Special Administrative Rules.--</DELETED>
<DELETED> ``(1) In general.--In carrying out paragraphs (1)
and (2) of subsection (a) and any other relevant provisions of
this title, the Secretary shall--</DELETED>
<DELETED> ``(A) establish guidelines designed to
ensure uniformity of practice in the conduct of program
reviews of institutions of higher education;</DELETED>
<DELETED> ``(B) make available to each institution
participating in programs authorized under this title
complete copies of all review guidelines and procedures
used in program reviews;</DELETED>
<DELETED> ``(C) permit the institution to correct or
cure an administrative, accounting, or recordkeeping
error if the error is not part of a pattern of error
and there is no evidence of fraud or misconduct related
to the error;</DELETED>
<DELETED> ``(D) base any civil penalty assessed
against an institution of higher education resulting
from a program review or audit on the gravity of the
violation, failure, or misrepresentation; and</DELETED>
<DELETED> ``(E) inform the appropriate State and
accrediting agency or association whenever the
Secretary takes action against an institution of higher
education under this section, section 498, or section
432.</DELETED>
<DELETED> ``(2) Uniformity of application of regulations.--
The Secretary shall review the regulations of the Department
and the application of such regulations to ensure the
uniformity of interpretation and application of the
regulations.</DELETED>
<DELETED> ``(3) Nonduplication and coordination.--The
Secretary shall establish a process for ensuring that
eligibility and compliance issues, such as institutional audit,
program review, and recertification, are considered
simultaneously, and shall establish a process for identifying
unnecessary duplication of reporting and related regulatory
requirements. In developing such processes, the Secretary shall
consult with relevant representatives of institutions
participating in the programs authorized by this
title.''.</DELETED>
<DELETED>PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT
FINANCIAL ASSISTANCE</DELETED>
<DELETED>SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF
FEDERAL STUDENT FINANCIAL ASSISTANCE.</DELETED>
<DELETED> Title IV (20 U.S.C. 1070 et seq.) is amended by adding at
the end the following:</DELETED>
<DELETED>``PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT
FINANCIAL ASSISTANCE</DELETED>
<DELETED>``SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF
FEDERAL STUDENT FINANCIAL ASSISTANCE.</DELETED>
<DELETED> ``(a) Establishment.--The Secretary shall establish in the
Department a performance-based organization (hereafter in this part
referred to as the `PBO') to administer various functions relating to
student financial assistance programs authorized under this
title.</DELETED>
<DELETED> ``(b) Oversight and Authority.--</DELETED>
<DELETED> ``(1) Policy oversight and direction.--The
Secretary shall maintain responsibility for the policy relating
to functions managed by the PBO, and the PBO shall remain
subject to the Secretary's oversight and direction.</DELETED>
<DELETED> ``(2) Audits and review.--The PBO shall be subject
to the usual and customary Federal audit procedures and to
review by the Inspector General of the Department.</DELETED>
<DELETED> ``(3) Changes.--</DELETED>
<DELETED> ``(A) In general.--The Secretary and the
Chief Operating Officer shall consult concerning the
effects of policy, market, or other changes on the
ability of the PBO to achieve the goals and objectives
established in the performance plan described in
subsection (e).</DELETED>
<DELETED> ``(B) Revisions to agreement.--The
Secretary and the Chief Operating Officer may revise
the annual performance agreement described in
subsection (f)(2) in light of policy, market, or other
changes that occur after the Secretary and the PBO
enter into the agreement.</DELETED>
<DELETED> ``(c) Purposes of PBO.--The purposes of the PBO are--
</DELETED>
<DELETED> ``(1) to improve service to students and other
participants in the student financial assistance programs
authorized under this title, including making those programs
more understandable to students and their parents;</DELETED>
<DELETED> ``(2) to reduce the costs of administering those
programs;</DELETED>
<DELETED> ``(3) to increase the accountability of the
officials responsible for administering those
programs;</DELETED>
<DELETED> ``(4) to provide greater flexibility in the
administration of those programs;</DELETED>
<DELETED> ``(5) to improve and integrate the information and
delivery systems that support those programs; and</DELETED>
<DELETED> ``(6) to develop and maintain a student financial
assistance system that contains complete, accurate, and timely
data to ensure program integrity.</DELETED>
<DELETED> ``(d) Functions.--</DELETED>
<DELETED> ``(1) In general.--Subject to subsection (b) of
this section, the PBO shall be responsible for administration
of the information and financial systems that support student
financial assistance programs authorized under this title,
including--</DELETED>
<DELETED> ``(A) collecting, processing, and
transmitting applicant data to students, institutions,
and authorized third parties, as provided for in
section 483;</DELETED>
<DELETED> ``(B) contracting for the information and
financial systems supporting student financial
assistance programs under this title;</DELETED>
<DELETED> ``(C) developing technical specifications
for software and systems that support those programs;
and</DELETED>
<DELETED> ``(D) providing all customer service,
training, and user support related to systems that
support those programs.</DELETED>
<DELETED> ``(2) Additional functions.--The Secretary may
allocate to the PBO such additional functions as the Secretary
determines necessary or appropriate to achieve the purposes of
the PBO.</DELETED>
<DELETED> ``(e) Performance Plan and Report.--</DELETED>
<DELETED> ``(1) Performance plan.--</DELETED>
<DELETED> ``(A) In general.--Each year, the
Secretary and Chief Operating Officer shall agree on,
and make available to the public, a performance plan
for the PBO for the succeeding 5 years that establishes
measurable goals and objectives for the
organization.</DELETED>
<DELETED> ``(B) Consultation.--In developing the 5-
year performance plan, the Secretary and the Chief
Operating Officer shall consult with students,
institutions of higher education, Congress, lenders,
and other interested parties not less than 30 days
prior to the implementation of the performance
plan.</DELETED>
<DELETED> ``(C) Areas.--The plan shall address the
PBO's responsibilities in the following
areas:</DELETED>
<DELETED> ``(i) Improving service.--
Improving service to students and other
participants in student financial aid programs
authorized under this title, including making
those programs more understandable to students
and their parents.</DELETED>
<DELETED> ``(ii) Reducing costs.--Reducing
the costs of administering those
programs.</DELETED>
<DELETED> ``(iii) Improvement and
integration of support systems.--Improving and
integrating the information and delivery
systems that support those programs.</DELETED>
<DELETED> ``(iv) Delivery and information
system.--Developing an open, common, and
integrated delivery and information system for
programs authorized under this title.</DELETED>
<DELETED> ``(v) Other areas.--Any other
areas identified by the Secretary.</DELETED>
<DELETED> ``(2) Annual report.--Each year, the Chief
Operating Officer shall prepare and submit to Congress, through
the Secretary, an annual report on the performance of the PBO,
including an evaluation of the extent to which the PBO met the
goals and objectives contained in the 5-year performance plan
described in paragraph (1) for the preceding year.</DELETED>
<DELETED> ``(f) Chief Operating Officer.--</DELETED>
<DELETED> ``(1) Appointment.--</DELETED>
<DELETED> ``(A) In general.--The management of the
PBO shall be vested in a Chief Operating Officer who
shall be appointed by the Secretary to a term of not
less than 3 and not more than 5 years and compensated
without regard to chapters 33, 51, and 53 of title 5,
United States Code.</DELETED>
<DELETED> ``(B) Basis.--The appointment shall be
made on the basis of demonstrated ability in management
and experience in information technology or financial
services, without regard to political affiliation or
activity.</DELETED>
<DELETED> ``(C) Reappointment.--The Secretary may
reappoint the Chief Operating Officer to subsequent
terms of not less than 3 and not more than 5 years, so
long as the performance of the Chief Operating Officer,
as set forth in the performance agreement described in
paragraph (2), is satisfactory.</DELETED>
<DELETED> ``(2) Performance agreement.--</DELETED>
<DELETED> ``(A) In general.--Each year, the
Secretary and the Chief Operating Officer shall enter
into an annual performance agreement, that shall set
forth measurable organization and individual goals for
the Chief Operating Officer.</DELETED>
<DELETED> ``(B) Transmittal.--The final agreement
shall be transmitted to the Committee on Education and
the Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate,
and made publicly available.</DELETED>
<DELETED> ``(3) Compensation.--</DELETED>
<DELETED> ``(A) In general.--The Chief Operating
Officer is authorized to be paid at an annual rate of
basic pay not to exceed the maximum rate of basic pay
for the Senior Executive Service under section 5382 of
title 5, United States Code, including any applicable
locality-based comparability payment that may be
authorized under section 5304(h)(2)(C) of such
title.</DELETED>
<DELETED> ``(B) Bonus.--In addition, the Chief
Operating Officer may receive a bonus in an amount that
does not exceed 50 percent of such annual rate of basic
pay, based upon the Secretary's evaluation of the Chief
Operating Officer's performance in relation to the
goals set forth in the performance agreement described
in paragraph (2).</DELETED>
<DELETED> ``(C) Payment.--Payment of a bonus under
this subparagraph (B) may be made to the Chief
Operating Officer only to the extent that such payment
does not cause the Chief Operating Officer's total
aggregate compensation in a calendar year to equal or
exceed the amount of the President's salary under
section 102 of title 3, United States Code.</DELETED>
<DELETED> ``(4) Removal.--The Chief Operating Officer shall
be removable--</DELETED>
<DELETED> ``(A) by the President; or</DELETED>
<DELETED> ``(B) by the Secretary for misconduct or
failure to meet the goals set forth in the performance
agreement described in paragraph (2).</DELETED>
<DELETED> ``(g) Senior Management.--</DELETED>
<DELETED> ``(1) Appointment.--</DELETED>
<DELETED> ``(A) In general.--The Chief Operating
Officer may appoint such senior managers as that
officer determines necessary without regard to the
provisions of title 5, United States Code, governing
appointments in the competitive service.</DELETED>
<DELETED> ``(B) Compensation.--The senior managers
described in subparagraph (A) may be paid without
regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to
classification and General Schedule pay
rates.</DELETED>
<DELETED> ``(2) Performance agreement.--Each year, the Chief
Operating Officer and each senior manager appointed under this
subsection shall enter into an annual performance agreement
that sets forth measurable organization and individual
goals.</DELETED>
<DELETED> ``(3) Compensation.--</DELETED>
<DELETED> ``(A) In general.--A senior manager
appointed under this subsection may be paid at an
annual rate of basic pay of not more than the maximum
rate of basic pay for the Senior Executive Service
under section 5382 of title 5, United States Code,
including any applicable locality-based comparability
payment that may be authorized under section
5304(h)(2)(C) of such title 5.</DELETED>
<DELETED> ``(B) Bonus.--In addition, a senior
manager may receive a bonus in an amount such that the
manager's total annual compensation does not exceed 125
percent of the maximum rate of basic pay for the Senior
Executive Service, including any applicable locality-
based comparability payment, based upon the Chief
Operating Officer's evaluation of the manager's
performance in relation to the goals set forth in the
performance agreement described in paragraph
(2).</DELETED>
<DELETED> ``(4) Removal.--A senior manager shall be
removable by the Secretary or by the Chief Operating
Officer.</DELETED>
<DELETED> ``(h) Authorization of Appropriations.--The Secretary
shall allocate from funds made available under section 458 such funds
as are appropriate to the functions assumed by the PBO. In addition,
there are authorized to be appropriated such sums as may be necessary
to carry out the purposes of this section, including transition
costs.''.</DELETED>
<DELETED>TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT
PROGRAMS</DELETED>
<DELETED>SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.</DELETED>
<DELETED> (a) In General.--Title V (20 U.S.C. 1101 et seq.) is
amended--</DELETED>
<DELETED> (1) by amending the title heading to read as
follows:</DELETED>
<DELETED>``TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT
PROGRAMS'';</DELETED>
<DELETED> (2) by repealing parts A, B, C, D, E, and F of
title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104 et seq.,
1107 et seq., 1111 et seq., and 1113 et seq.);</DELETED>
<DELETED> (3) by transferring part C of title IX, part D of
title IX, part A of title XI, and part A of title X (20 U.S.C.
1134h et seq., 1134l et seq., 1136 et seq., and 1135 et seq.)
to title V and redesignating such parts as parts A, B, C, and
D, respectively;</DELETED>
<DELETED> (4) by redesignating sections 931 through 935 (20
U.S.C. 1134h et seq. and 1134k-1 et seq.) as sections 511
through 515, respectively;</DELETED>
<DELETED> (5) by redesignating sections 941 through 947 (20
U.S.C. 1134l and 1134q-1) as section 521 through 527,
respectively;</DELETED>
<DELETED> (6) by redesignating sections 1101 through 1109
(20 U.S.C. 1136 through 1136h) as sections 531 through 539,
respectively; and</DELETED>
<DELETED> (7) by redesignating sections 1001, 1002, 1003,
1004, and 1011 (20 U.S.C. 1135, 1135a-1, 1135a-2, 1135a-3, and
1135a-11) as sections 541, 542, 543, 544, and 551,
respectively.</DELETED>
<DELETED> (b) Cross Reference Conforming Amendments.--</DELETED>
<DELETED> (1) Jacob k. javits fellowship program.--Section
514(a) (as redesignated by subsection (a)(4)) (20 U.S.C.
1134k(a)) is amended by striking ``933'' and inserting
``513''.</DELETED>
<DELETED> (2) Graduate assistance in areas of national
need.--Part B of title V (as redesignated by paragraphs (3) and
(5) of subsection (a)) (20 U.S.C. 1134l et seq.) is amended--
</DELETED>
<DELETED> (A) in section 524(b)(7) (as redesignated
by subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by
striking ``945'' and inserting ``525''; and</DELETED>
<DELETED> (B) in section 525(c) (as redesignated by
subsection (a)(5)) (20 U.S.C. 1134p(c))--</DELETED>
<DELETED> (i) by striking ``946(a)'' and
inserting ``526(a)''; and</DELETED>
<DELETED> (ii) by striking ``944(b)(2)'' and
inserting ``524(b)(2)''.</DELETED>
<DELETED> (3) Urban and community service.--Part C of title
V (as redesignated by paragraphs (3) and (6) of subsection (a))
(20 U.S.C. 1136 et seq.) is amended--</DELETED>
<DELETED> (A) in section 532(b) (20 U.S.C.
1136a(b)), by striking ``1104'' and inserting
``534'';</DELETED>
<DELETED> (B) in section 534(12) (20 U.S.C.
1136c(12)), by striking ``1103(a)(2)(B)'' and inserting
``533(a)(2)(B)''; and</DELETED>
<DELETED> (C) in section 538(1) (20 U.S.C.
1136g(1)), by striking ``1103'' and inserting
``533''.</DELETED>
<DELETED> (4) FIPSE.--Subsections (b) and (c) of section 544
(as redesignated by subsection (a)(7)) (20 U.S.C. 1135a-3) each
are amended by striking ``1001(b)'' and inserting
``541(b)''.</DELETED>
<DELETED>SEC. 502. PURPOSE.</DELETED>
<DELETED> Section 500 (20 U.S.C. 1101) is amended to read as
follows:</DELETED>
<DELETED>``SEC. 500. PURPOSE.</DELETED>
<DELETED> ``It is the purpose of this title--</DELETED>
<DELETED> ``(1) to authorize national graduate fellowship
programs--</DELETED>
<DELETED> ``(A) in order to attract students of
superior ability and achievement, exceptional promise,
and demonstrated financial need, into high-quality
graduate programs and provide the students with the
financial support necessary to complete advanced
degrees; and</DELETED>
<DELETED> ``(B) that are designed to--</DELETED>
<DELETED> ``(i) sustain and enhance the
capacity for graduate education in areas of
national need; and</DELETED>
<DELETED> ``(ii) encourage talented students
to pursue scholarly careers in the humanities,
social sciences, and the arts; and</DELETED>
<DELETED> ``(2) to promote postsecondary
programs.''.</DELETED>
<DELETED>PART A--JACOB K. JAVITS FELLOWSHIP PROGRAM</DELETED>
<DELETED>SEC. 511. AWARD OF FELLOWSHIPS.</DELETED>
<DELETED> (a) Award of Jacob K. Javits Fellowships.--Section 511 (as
redesignated by section 501(4)) is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in the first sentence, by inserting
``, financial need,'' after ``demonstrated
achievement'';</DELETED>
<DELETED> (B) in the second sentence--</DELETED>
<DELETED> (i) by striking ``students
intending'' and inserting ``students who are
eligible to receive any grant, loan, or work
assistance pursuant to section 484 and
intend''; and</DELETED>
<DELETED> (ii) by striking ``commonly
accepted'' and all that follows through
``degree-granting institution'' and inserting
``the terminal highest degree awarded in the
area of study''; and</DELETED>
<DELETED> (C) in the third sentence, by inserting
``following the fiscal year'' after ``July 1 of the
fiscal year''; and</DELETED>
<DELETED> (2) by adding at the end the following:</DELETED>
<DELETED> ``(d) Process and Timing of Competition.--The Secretary
shall make applications for fellowships under this part available not
later than October 1 of the academic year preceding the academic year
for which fellowships will be awarded, and shall announce the
recipients of fellowships under this section not later than March 1 of
the academic year preceding the academic year for which the fellowships
are awarded.</DELETED>
<DELETED> ``(e) Authority To Contract.--The Secretary is authorized
to enter into a contract with a nongovernmental agency to administer
the program assisted under this part if the Secretary determines that
entering into the contract is an efficient means of carrying out the
program.''.</DELETED>
<DELETED> (b) Allocation of Fellowships.--Section 512 (as
redesignated by section 501(4)) (20 U.S.C. 1134i) is amended--
</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in the third sentence of paragraph
(1), by striking ``knowledgeable about and have
experience'' and inserting ``representative of a range
of disciplines''; and</DELETED>
<DELETED> (B) in paragraph (2)--</DELETED>
<DELETED> (i) by amending subparagraph (B)
to read as follows:</DELETED>
<DELETED> ``(B) establish general criteria for the
award of fellowships in academic fields identified by
the Board, or, in the event that the Secretary enters
into a contract with a nongovernmental entity to
administer the program assisted under this part, by
such nongovernmental entity;''; and</DELETED>
<DELETED> (ii) in subparagraph (C), by
inserting ``except that, in the event that the
Secretary enters into a contract with a
nongovernmental entity to administer the
program, such panels may be appointed by such
nongovernmental entity'' before the semicolon;
and</DELETED>
<DELETED> (2) in the first sentence of subsection (b), by
inserting ``except that in the event that the Secretary enters
into a contract with a nongovernmental entity to administer the
program, such panels may be appointed by such nongovernmental
entity'' before the period.</DELETED>
<DELETED> (c) Stipends.--Section 513 (as redesignated by section
501(4)) (20 U.S.C. 1134j) is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) by striking ``1993-1994'' and
inserting ``1999-2000''; and</DELETED>
<DELETED> (B) by striking ``according to
measurements of need approved by the Secretary'' and
inserting ``determined in accordance with part F of
title IV''; and</DELETED>
<DELETED> (2) in subsection (b)(1)(A)--</DELETED>
<DELETED> (A) in clause (i)--</DELETED>
<DELETED> (i) by striking ``$6,000'' and
inserting ``$10,000''; and</DELETED>
<DELETED> (ii) by striking ``1993-1994'' and
inserting ``1999-2000''; and</DELETED>
<DELETED> (B) in clause (ii)--</DELETED>
<DELETED> (i) in the matter preceding
subclause (I), by striking ``1993-1994'' and
inserting ``1999-2000'';</DELETED>
<DELETED> (ii) in subclause (I), by striking
``$9,000 for the academic year 1993-1994'' and
inserting ``$10,000 for the academic year 1999-
2000''; and</DELETED>
<DELETED> (iii) in subclause (II), by
striking ``$9,000'' and inserting
``$10,000''.</DELETED>
<DELETED> (d) Authorization of Appropriations.--Section 515 (as
redesignated by section 501(4)) (20 U.S.C. 1134k-1) is amended by
striking ``1993'' and inserting ``1999''.</DELETED>
<DELETED>PART B--GRADUATE ASSISTANCE IN AREAS OF NATIONAL
NEED</DELETED>
<DELETED>SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL
NEED.</DELETED>
<DELETED> (a) Designation of Areas of National Need.--Subsection (b)
of section 523 (as redesignated by section 501(5)) (20 U.S.C. 1134n) is
amended to read as follows:</DELETED>
<DELETED> ``(b) Designation of Areas of National Need.--After
consultation with the National Science Foundation, the National Academy
of Sciences, and other appropriate Federal and nonprofit agencies and
organizations, the Secretary shall designate areas of national need. In
making such designations, the Secretary shall take into consideration--
</DELETED>
<DELETED> ``(1) the extent to which the national interest in
the area is compelling;</DELETED>
<DELETED> ``(2) the extent to which other Federal programs
support postbaccalaureate study in the area concerned;
and</DELETED>
<DELETED> ``(3) an assessment of how the program may achieve
the most significant impact with available
resources.''.</DELETED>
<DELETED> (b) Content of Applications.--Section 524(b) (as
redesignated by section 501(5)) (20 U.S.C. 1134o(b)) is amended--
</DELETED>
<DELETED> (1) in paragraph (2)--</DELETED>
<DELETED> (A) by striking ``funds'' and inserting
``sources''; and</DELETED>
<DELETED> (B) by inserting ``, which contribution
may be in cash or in kind, fairly valued'' before the
semicolon;</DELETED>
<DELETED> (2) by redesignating paragraphs (4) through (9) as
paragraphs (5) through (10), respectively;</DELETED>
<DELETED> (3) by inserting after paragraph (3) the
following:</DELETED>
<DELETED> ``(4) describe the number, types, and amounts of
the fellowships that the applicant intends to offer with grant
funds provided under this part;'' and</DELETED>
<DELETED> (4) in paragraph (5)(A) (as redesignated by
paragraph (2)), by striking ``criteria developed by the
institution'' and inserting ``part F of title IV''.</DELETED>
<DELETED> (c) Awards.--Section 525 (as redesignated by section
501(5)) (20 U.S.C. 1134p) is amended--</DELETED>
<DELETED> (1) in the third sentence of subsection (b)--
</DELETED>
<DELETED> (A) by striking ``1993-1994'' and
inserting ``1999-2000''; and</DELETED>
<DELETED> (B) by striking ``according to
measurements of need approved by the Secretary'' and
inserting ``determined in accordance with part F of
title IV''; and</DELETED>
<DELETED> (2) in subsection (c), by striking ``such
payments'' and inserting ``such excess''.</DELETED>
<DELETED> (d) Institutional Payments.--Section 526(a)(1) (as
redesignated by section 501(5)) (20 U.S.C. 1134q(a)(1)) is amended--
</DELETED>
<DELETED> (1) in subparagraph (A)--</DELETED>
<DELETED> (A) by striking ``$6,000 annually'' and
inserting ``$10,000 for each academic year,'';
and</DELETED>
<DELETED> (B) by striking ``1993-1994'' and
inserting ``1999-2000''; and</DELETED>
<DELETED> (2) in subparagraph (B)--</DELETED>
<DELETED> (A) in the matter preceding clause (i), by
striking ``1993-1994'' and inserting ``1999-
2000'';</DELETED>
<DELETED> (B) in clause (i), by striking ``$9,000
for the academic year 1993-1994'' and inserting
``$10,000 for the academic year 1999-2000'';
and</DELETED>
<DELETED> (C) in clause (ii), by striking ``$9,000''
and inserting ``$10,000''.</DELETED>
<DELETED> (e) Authorization of Appropriations.--Section 527 (as
redesignated by section 501(5)) (20 U.S.C. 1134q-1) is amended by
striking ``$40,000,000 for fiscal year 1993'' and inserting
``$30,000,000 for fiscal year 1999''.</DELETED>
<DELETED>PART C--URBAN COMMUNITY SERVICE</DELETED>
<DELETED>SEC. 531. URBAN COMMUNITY SERVICE.</DELETED>
<DELETED> (a) Priority.--Section 533(b) (as redesignated by section
501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding at the end the
following: ``In addition, the Secretary shall give priority to eligible
institutions submitting applications that demonstrate the eligible
institution's commitment to urban community service.''.</DELETED>
<DELETED> (b) Authorization of Appropriations.--Section 539 (as
redesignated by section 501(a)(6)) (20 U.S.C. 1136h) is amended by
striking ``1993'' and inserting ``1999''.</DELETED>
<DELETED>PART D--FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION</DELETED>
<DELETED>SEC. 541. FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION.</DELETED>
<DELETED> (a) Authority.--Section 541(a) (as redesignated by section
501(a)(7)) (20 U.S.C. 1135(a)) is amended--</DELETED>
<DELETED> (1) in the matter preceding paragraph (1)--
</DELETED>
<DELETED> (A) by striking ``or combinations of such
institutions'' and inserting ``, combinations of such
institutions,''; and</DELETED>
<DELETED> (B) by striking ``institutions and
combinations of such institutions'' and inserting
``institutions, combinations, and agencies'';
and</DELETED>
<DELETED> (2) in paragraph (2)--</DELETED>
<DELETED> (A) by striking ``and programs involving
new'' and inserting ``, programs and joint efforts
involving''; and</DELETED>
<DELETED> (B) by striking ``new combinations'' and
inserting ``combinations''.</DELETED>
<DELETED> (b) Technical Employees.--Section 543(a) (as redesignated
by section 501(a)(7)) (20 U.S.C. 1135a-2(a)) is amended by striking ``5
technical'' and inserting ``7 technical''.</DELETED>
<DELETED> (c) Authorization of Appropriations.--Section 544 (as
redesignated by section 501(a)(7)) (20 U.S.C. 1135a-3) is amended--
</DELETED>
<DELETED> (1) in subsection (a), by striking ``$20,000,000
for fiscal year 1993'' and inserting ``$26,000,000 for fiscal
year 1999''; and</DELETED>
<DELETED> (2) in subsection (b), by striking ``1993'' and
inserting ``1999''.</DELETED>
<DELETED> (d) Areas of National Need.--</DELETED>
<DELETED> (1) Areas.--Section 551(c) (as redesignated by
section 501(a)(7)) (20 U.S.C. 1135a-11(c)) is amended--
</DELETED>
<DELETED> (A) in paragraph (2), by striking ``Campus
climate and culture'' and inserting ``Institutional
restructuring to improve learning and promote cost
efficiencies'';</DELETED>
<DELETED> (B) in paragraph (3), by inserting ``of
model programs'' after ``dissemination''; and</DELETED>
<DELETED> (C) by adding at the end the
following:</DELETED>
<DELETED> ``(4) Articulation between 2-year and 4-year
institutions of higher education, including developing
innovative methods for ensuring the successful transfer of
students from 2-year to 4-year institutions of higher
education.''.</DELETED>
<DELETED> (2) Authorization of appropriations.--Section
551(d) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-
11(d)) is amended by striking ``1993'' and inserting
``1999''.</DELETED>
<DELETED>PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH
DISABILITIES; GENERAL PROVISIONS</DELETED>
<DELETED>SEC. 551. HIGHER EDUCATION ACCESS FOR STUDENTS WITH
DISABILITIES; GENERAL PROVISIONS.</DELETED>
<DELETED> Title V (20 U.S.C. 1101 et seq.) is amended further by
adding at the end the following:</DELETED>
<DELETED>``PART F--HIGHER EDUCATION ACCESS FOR STUDENTS WITH
DISABILITIES</DELETED>
<DELETED>``SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS WITH
DISABILITIES.</DELETED>
<DELETED> ``(a) Purpose.--It is the purpose of this part--</DELETED>
<DELETED> ``(1) to support the development of model programs
to provide technical assistance or training, and professional
development, for faculty and administrators in institutions of
higher education, as defined in section 481(a), to provide the faculty
and administrators with the skills and assistance to teach effectively
students with disabilities; and</DELETED>
<DELETED> ``(2) to ensure effective evaluation and
dissemination of such model programs.</DELETED>
<DELETED> ``(b) Grants Authorized.--</DELETED>
<DELETED> ``(1) In general.--The Secretary is authorized to
award grants to institutions of higher education to carry out
the purposes of this part.</DELETED>
<DELETED> ``(2) Model programs.--To the extent feasible, the
model programs developed under this part shall be developed for
a range of types and sizes of institutions of higher
education.</DELETED>
<DELETED> ``(3) Geographic distribution.--In awarding grants
under this part, the Secretary shall consider--</DELETED>
<DELETED> ``(A) providing an equitable geographic
distribution of such grants; and</DELETED>
<DELETED> ``(B) distributing such grants to urban
and rural areas.</DELETED>
<DELETED> ``(4) Approaches.--The Secretary shall award
grants under this part for a range of approaches to providing
support to faculty and administrators, such as in-service
training, professional development, customized and general
technical assistance, workshops, summer institutes, distance
learning and the use of educational technology.</DELETED>
<DELETED> ``(c) Dissemination of Grants.--The Secretary may award
grants to institutions of higher education that have demonstrated
exceptional programs for students with disabilities under this part in
order to disseminate those programs.</DELETED>
<DELETED> ``(d) Applications.--Each institution of higher education
desiring a grant under this part shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may require. Each such application shall
include--</DELETED>
<DELETED> ``(1) a plan to assess the needs of the
institution of higher education in order to meet the purposes
of this part, in consultation with a broad range of persons
within that institution; and</DELETED>
<DELETED> ``(2) a plan for coordinating with or
collaborating with the office within the institution that
provides services to students with disabilities, and the equal
opportunity office within the institution, if the offices
exist.</DELETED>
<DELETED> ``(e) Use of Funds.--Any institution of higher education
receiving a grant under this part--</DELETED>
<DELETED> ``(1) shall use the grant funds to--</DELETED>
<DELETED> ``(A) meet the purposes of this section;
and</DELETED>
<DELETED> ``(B) ensure that projects assisted under
this part include components for model development,
demonstration, evaluation, and dissemination to other
institutions of higher education; and</DELETED>
<DELETED> ``(2) may include, to the extent practicable,
graduate teaching assistants in the services provided under the
grant.</DELETED>
<DELETED> ``(f) Grant Awards.--The Secretary shall award grants
under this part for a period of 3 years.</DELETED>
<DELETED> ``(g) Construction.--Nothing in this section shall be
construed to impose any additional duty, obligation, or responsibility
on an institution of higher education, or on the institution's
administrators, faculty, or staff, in addition to the requirements of
section 504 of the Rehabilitation Act of 1973 and the Americans with
Disabilities Act of 1990.</DELETED>
<DELETED> ``(h) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section $10,000,000 for
fiscal year 1999 and such sums as may be necessary for each of the 4
succeeding fiscal years.</DELETED>
<DELETED>``PART G--GENERAL PROVISIONS</DELETED>
<DELETED>``SEC. 581. ADMINISTRATIVE PROVISIONS FOR PARTS A AND
B.</DELETED>
<DELETED> ``(a) Coordinated Administration.--In carrying out the
purpose described in section 500(1), the Secretary shall provide for
coordinated administration and regulation of graduate programs assisted
under parts A and B with other Federal programs providing assistance
for graduate education in order to minimize duplication and improve
efficiency to ensure that the programs are carried out in a manner most
compatible with academic practices and with the standard timetables for
applications for, and notifications of acceptance to, graduate
programs.</DELETED>
<DELETED> ``(b) Hiring Authority.--For purposes of carrying out
parts A and B, the Secretary shall appoint, without regard to the
provisions of title 5, United States Code, that govern appointments in
the competitive service, such administrative and technical employees,
with the appropriate educational background, as shall be needed to
assist in the administration of such parts. The employees shall be paid
without regard to the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and General
Schedule pay rates.</DELETED>
<DELETED> ``(c) Use for Religious Purposes Prohibited.--No
institutional payment or allowance under section 513(b) or 526 shall be
paid to a school or department of divinity as a result of the award of
a fellowship under part A or B, respectively, to an individual who is
studying for a religious vocation.</DELETED>
<DELETED> ``(d) Evaluation.--The Secretary shall evaluate the
success of assistance provided to individuals under part A or B with
respect to graduating from their degree programs, and placement in
faculty and professional positions.</DELETED>
<DELETED> ``(e) Continuation Awards.--The Secretary, using funds
appropriated to carry out parts A and B, and before awarding any
assistance under such parts to a recipient that did not receive
assistance under part C or D of title IX (as such parts were in effect
prior to the date of enactment of the Higher Education Amendments of
1998) shall continue to provide funding to recipients of assistance
under such part C or D (as so in effect), as the case may be, pursuant
to any multiyear award of such assistance.''.</DELETED>
<DELETED>TITLE VI--INTERNATIONAL EDUCATION PROGRAMS</DELETED>
<DELETED>SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE
STUDIES.</DELETED>
<DELETED> Part A of title VI (20 U.S.C. 1121 et seq.) is amended to
read as follows:</DELETED>
<DELETED>``PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES</DELETED>
<DELETED>``SEC. 601. FINDINGS AND PURPOSES.</DELETED>
<DELETED> ``(a) Findings.--The Congress finds that--</DELETED>
<DELETED> ``(1) the well-being of the United States, its
economy and long-range security, is dependent on the education
and training of Americans in international and foreign language
studies and on a strong research base in these areas;</DELETED>
<DELETED> ``(2) knowledge of other countries and the ability
to communicate in other languages is essential to the promotion
of mutual understanding and cooperation among nations;
and</DELETED>
<DELETED> ``(3) systematic efforts are necessary to enhance
the capacity of institutions of higher education in the United
States for--</DELETED>
<DELETED> ``(A) producing graduates with
international and foreign language expertise and
knowledge; and</DELETED>
<DELETED> ``(B) research regarding such expertise
and knowledge.</DELETED>
<DELETED> ``(b) Purposes.--It is the purpose of this part--
</DELETED>
<DELETED> ``(1) to assist in the development of knowledge,
international study, resources and trained personnel;</DELETED>
<DELETED> ``(2) to stimulate the attainment of foreign
language acquisition and fluency;</DELETED>
<DELETED> ``(3) to develop a pool of international experts
to meet national needs; and</DELETED>
<DELETED> ``(4) to coordinate the programs of the Federal
Government in the areas of foreign language, area and other
international studies, including professional international
affairs education, and research.</DELETED>
<DELETED>``SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA
CENTERS AND PROGRAMS.</DELETED>
<DELETED> ``(a) National Language and Area Centers and Programs
Authorized.--</DELETED>
<DELETED> ``(1) Centers and programs.--</DELETED>
<DELETED> ``(A) In general.--The Secretary is
authorized--</DELETED>
<DELETED> ``(i) to make grants to
institutions of higher education, or
combinations thereof, for the purpose of
establishing, strengthening, and operating
comprehensive language and area centers and
programs; and</DELETED>
<DELETED> ``(ii) to make grants to such
institutions or combinations for the purpose of
establishing, strengthening, and operating a
diverse network of undergraduate language and
area centers and programs.</DELETED>
<DELETED> ``(B) National resources.--The centers and
programs referred to in paragraph (1) shall be national
resources for--</DELETED>
<DELETED> ``(i) teaching of any modern
foreign language;</DELETED>
<DELETED> ``(ii) instruction in fields
needed to provide full understanding of areas,
regions, or countries in which such language is
commonly used;</DELETED>
<DELETED> ``(iii) research and training in
international studies, and the international
and foreign language aspects of professional
and other fields of study; and</DELETED>
<DELETED> ``(iv) instruction and research on
issues in world affairs which concern one or
more countries.</DELETED>
<DELETED> ``(2) Authorized activities.--Any such grant may
be used to pay all or part of the cost of establishing or
operating a center or program, including the cost of--
</DELETED>
<DELETED> ``(A) faculty, staff, and student travel
in foreign areas, regions, or countries;</DELETED>
<DELETED> ``(B) teaching and research
materials;</DELETED>
<DELETED> ``(C) curriculum planning and
development;</DELETED>
<DELETED> ``(D) bringing visiting scholars and
faculty to the center to teach or to conduct
research;</DELETED>
<DELETED> ``(E) establishing and maintaining
linkages with overseas institutions of higher education
and other organizations that may contribute to the
teaching and research of the center or program;
and</DELETED>
<DELETED> ``(F) training and improvement of the
staff, for the purpose of, and subject to such
conditions as the Secretary finds necessary for,
carrying out this section.</DELETED>
<DELETED> ``(3) Grants to maintain library collections.--The
Secretary may make grants to centers described in paragraph (1)
having important library collections, as determined by the
Secretary, for the maintenance of such collections.</DELETED>
<DELETED> ``(4) Outreach grants and summer institutes.--The
Secretary may make additional grants to centers described in
paragraph (1) for any one or more of the following
purposes:</DELETED>
<DELETED> ``(A) Programs of linkage or outreach
between foreign language, area studies, and other
international fields and professional schools and
colleges.</DELETED>
<DELETED> ``(B) Programs of linkage or outreach with
2-year and 4-year colleges and universities.</DELETED>
<DELETED> ``(C) Programs of linkage or outreach with
departments or agencies of Federal and State
Governments.</DELETED>
<DELETED> ``(D) Programs of linkage or outreach with
the news media, business, professional, or trade
associations.</DELETED>
<DELETED> ``(E) Summer institutes in foreign area,
foreign language, and other international fields
designed to carry out the programs of linkage and
outreach in subparagraphs (A), (B), (C), and
(D).</DELETED>
<DELETED> ``(b) Stipends for Foreign Language and Area Studies.--
</DELETED>
<DELETED> ``(1) In general.--The Secretary is authorized to
make grants to institutions of higher education or combinations
of such institutions for the purpose of paying stipends to
individuals undergoing advanced training in any center or
program approved by the Secretary.</DELETED>
<DELETED> ``(2) Requirements.--Students receiving stipends
described in paragraph (1) shall be individuals who are engaged
in an instructional program with stated performance goals for
functional foreign language use or in a program developing such
performance goals, in combination with area studies,
international studies, or the international aspects of a
professional studies program.</DELETED>
<DELETED> ``(3) Allowances.--Stipends awarded to graduate
level recipients may include allowances for dependents and for
travel for research and study in the United States and
abroad.</DELETED>
<DELETED> ``(c) Special Rule With Respect to Travel.--No funds may
be expended under this part for undergraduate travel except in
accordance with rules prescribed by the Secretary setting forth
policies and procedures to assure that Federal funds made available for
such travel are expended as part of a formal program of supervised
study.</DELETED>
<DELETED>``SEC. 603. LANGUAGE RESOURCE CENTERS.</DELETED>
<DELETED> ``(a) Language Resource Centers Authorized.--The Secretary
is authorized to make grants to and enter into contracts with
institutions of higher education, or combinations of such institutions,
for the purpose of establishing, strengthening, and operating a small
number of national language resource and training centers, which shall
serve as resources to improve the capacity to teach and learn foreign
languages effectively.</DELETED>
<DELETED> ``(b) Authorized Activities.--The activities carried out
by the centers described in subsection (a)--</DELETED>
<DELETED> ``(1) shall include effective dissemination
efforts, whenever appropriate; and</DELETED>
<DELETED> ``(2) may include--</DELETED>
<DELETED> ``(A) the conduct and dissemination of
research on new and improved teaching methods,
including the use of advanced educational
technology;</DELETED>
<DELETED> ``(B) the development and dissemination of
new teaching materials reflecting the use of such
research in effective teaching strategies;</DELETED>
<DELETED> ``(C) the development, application, and
dissemination of performance testing appropriate to an
educational setting for use as a standard and
comparable measurement of skill levels in all
languages;</DELETED>
<DELETED> ``(D) the training of teachers in the
administration and interpretation of performance tests,
the use of effective teaching strategies, and the use
of new technologies;</DELETED>
<DELETED> ``(E) the publication and dissemination to
individuals and organizations in the foreign language
field of instructional materials in the less commonly
taught languages;</DELETED>
<DELETED> ``(F) the development and dissemination of
materials designed to serve as a resource for foreign
language teachers at the elementary and secondary
school levels; and</DELETED>
<DELETED> ``(G) the operation of intensive summer
language institutes to train advanced foreign language
students, provide professional development, and improve
language instruction through preservice and inservice
language training for teachers.</DELETED>
<DELETED> ``(c) Conditions for Grants.--Grants under this section
shall be made on such conditions as the Secretary determines to be
necessary to carry out the provisions of this section.</DELETED>
<DELETED>``SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN
LANGUAGE PROGRAMS.</DELETED>
<DELETED> ``(a) Incentives for the Creation of New Programs and the
Strengthening of Existing Programs in Undergraduate International
Studies and Foreign Languages.--</DELETED>
<DELETED> ``(1) Authority.--The Secretary is authorized to
make grants to institutions of higher education, combinations
of such institutions, or partnerships between nonprofit
educational institutions and institutions of higher education,
to assist such institutions, combinations or partnerships in
planning, developing, and carrying out programs to improve
undergraduate instruction in international studies and foreign
languages. Such grants shall be awarded to institutions,
combinations or partnerships seeking to create new programs or
to strengthen existing programs in area studies, foreign
languages, and other international fields.</DELETED>
<DELETED> ``(2) Federal share and use of funds.--Grants made
under this section may be used to pay not more than 50 percent
of the cost of projects and activities which are an integral
part of such a program, such as--</DELETED>
<DELETED> ``(A) planning for the development and
expansion of undergraduate programs in international
studies and foreign languages;</DELETED>
<DELETED> ``(B) teaching, research, curriculum
development, faculty training in the United States or
abroad, and other related activities, including the
expansion of library and teaching resources;</DELETED>
<DELETED> ``(C) expansion of opportunities for
learning foreign languages, including less commonly
taught languages;</DELETED>
<DELETED> ``(D) programs under which foreign
teachers and scholars may visit institutions as
visiting faculty;</DELETED>
<DELETED> ``(E) programs designed to develop or
enhance linkages between 2-year and 4-year institutions
of higher education, or baccalaureate and post-
baccalaureate programs or institutions;</DELETED>
<DELETED> ``(F) the development of undergraduate
study abroad programs in locations abroad in which such
study opportunities are not otherwise available and the
integration of these programs into specific on-campus
degree programs;</DELETED>
<DELETED> ``(G) the development of model programs to
enhance the effectiveness of study abroad, including
predeparture and post return programs;</DELETED>
<DELETED> ``(H) the development of programs designed
to integrate professional and technical education with
area studies, foreign languages, and other
international fields;</DELETED>
<DELETED> ``(I) the conduct of summer institutes in
foreign area, foreign language, and other international
fields for purposes that are consistent with the
projects and activities described in this subsection;
and</DELETED>
<DELETED> ``(J) the development of partnerships
between institutions of higher education and the
private sector, government, and elementary and
secondary education institutions to enhance
international knowledge.</DELETED>
<DELETED> ``(3) Non-federal share.--The non-Federal share of
the cost of the programs assisted under this subsection may be
provided either in cash or in kind. Such assistance may be
composed of institutional and noninstitutional funds, including
State, private sector, corporation, or foundation
contributions.</DELETED>
<DELETED> ``(4) Priority.--In awarding grants under this
section, the Secretary shall give priority to applications from
institutions of higher education, combinations or partnerships
that require entering students to have successfully completed
at least 2 years of secondary school foreign language
instruction or that require each graduating student to earn 2
years of postsecondary credit in a foreign language (or have
demonstrated equivalent competence in the foreign language) or,
in the case of a 2-year degree granting institution, offer 2
years of postsecondary credit in a foreign language.</DELETED>
<DELETED> ``(5) Grant conditions.--Grants under this
subsection shall be made on such conditions as the Secretary
determines to be necessary to carry out this
subsection.</DELETED>
<DELETED> ``(6) Application.--Each application for
assistance under this subsection shall include--</DELETED>
<DELETED> ``(A) evidence that the applicant has
conducted extensive planning prior to submitting the
application;</DELETED>
<DELETED> ``(B) an assurance that the faculty and
administrators of all relevant departments and programs
served by the applicant are involved in ongoing
collaboration with regard to achieving the stated
objectives of the application;</DELETED>
<DELETED> ``(C) an assurance that students at the
applicant institutions, as appropriate, will have equal
access to, and derive benefits from, the program
assisted under this subsection; and</DELETED>
<DELETED> ``(D) an assurance that each institution,
combination or partnership will use the Federal
assistance provided under this subsection to supplement
and not supplant funds expended by the institution,
prior to the receipt of the Federal assistance, for
programs to improve undergraduate instruction in
international studies and foreign languages.</DELETED>
<DELETED> ``(7) Evaluation.--The Secretary may establish
requirements for program evaluations and require grant
recipients to submit annual reports that evaluate the progress
and performance of students participating in programs assisted
under this subsection.</DELETED>
<DELETED> ``(b) Programs of National Significance.--The Secretary
may also award grants to public and private nonprofit agencies and
organizations, including professional and scholarly associations,
whenever the Secretary determines such grants will make an especially
significant contribution to improving undergraduate international
studies and foreign language programs.</DELETED>
<DELETED>``SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.</DELETED>
<DELETED> ``(a) Authorized Activities.--The Secretary may, directly
or through grants or contracts, conduct research and studies that
contribute to achieving the purposes of this part. Such research and
studies may include--</DELETED>
<DELETED> ``(1) studies and surveys to determine needs for
increased or improved instruction in foreign language, area
studies, or other international fields, including the demand
for foreign language, area, and other international specialists
in government, education, and the private sector;</DELETED>
<DELETED> ``(2) studies and surveys to assess the
utilization of graduates of programs supported under this title
by governmental, educational, and private sector organizations
and other studies assessing the outcomes and effectiveness of
programs so supported;</DELETED>
<DELETED> ``(3) evaluation of the extent to which programs
assisted under this title that address national needs would not
otherwise be offered;</DELETED>
<DELETED> ``(4) comparative studies of the effectiveness of
strategies to provide international capabilities at
institutions of higher education;</DELETED>
<DELETED> ``(5) research on more effective methods of
providing instruction and achieving competency in foreign
languages;</DELETED>
<DELETED> ``(6) the development and publication of
specialized materials for use in foreign language, area
studies, and other international fields, or for training
foreign language, area, and other international
specialists;</DELETED>
<DELETED> ``(7) studies and evaluations of effective
practices in the dissemination of international information,
materials, research, teaching strategies, and testing
techniques throughout the education community, including
elementary and secondary schools; and</DELETED>
<DELETED> ``(8) the application of performance tests and
standards across all areas of foreign language instruction and
classroom use.</DELETED>
<DELETED> ``(b) Annual Report.--The Secretary shall prepare,
publish, and announce an annual report listing the books and research
materials produced with assistance under this section.</DELETED>
<DELETED>``SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.</DELETED>
<DELETED> ``(a) Competitive Grants.--The Secretary shall award
grants under section 602 competitively on the basis of criteria that
separately, but not less rigorously, evaluates the applications for
comprehensive and undergraduate language and area centers and
programs.</DELETED>
<DELETED> ``(b) Selection Criteria.--The Secretary shall set
criteria for grants awarded under section 602 by which a determination
of excellence shall be made to meet the differing objectives of
graduate and undergraduate institutions.</DELETED>
<DELETED> ``(c) Equitable Distribution of Grants.--The Secretary
shall, to the extent practicable, award grants under this part (other
than section 602) in such manner as to achieve an equitable
distribution of the grant funds throughout the United States, based on
the merit of a proposal as determined pursuant to a peer review process
involving broadly representative professionals.</DELETED>
<DELETED>``SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.</DELETED>
<DELETED> ``(a) Selection Criteria.--The Secretary shall make
excellence the criterion for selection of grants awarded under section
602.</DELETED>
<DELETED> ``(b) Equitable Distribution.--To the extent practicable
and consistent with the criterion of excellence, the Secretary shall
award grants under this part (other than section 602) in such a manner
as will achieve an equitable distribution of funds throughout the
United States.</DELETED>
<DELETED> ``(c) Support for Undergraduate Education.--The Secretary
shall also award grants under this part in such manner as to ensure
that an appropriate portion of the funds appropriated for this part (as
determined by the Secretary) are used to support undergraduate
education.</DELETED>
<DELETED>``SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.</DELETED>
<DELETED> ``(a) Centers Authorized.--The Secretary is authorized to
make grants to and enter into contracts with any American overseas
research center that is a consortium of institutions of higher
education (hereafter in this section referred to as a ``center'') to
enable such center to promote postgraduate research, exchanges and area
studies.</DELETED>
<DELETED> ``(b) Use of Grants.--Grants made and contracts entered
into pursuant to this section may be used to pay all or a portion of
the cost of establishing or operating a center or program, including--
</DELETED>
<DELETED> ``(1) the cost of faculty and staff stipends and
salaries;</DELETED>
<DELETED> ``(2) the cost of faculty, staff, and student
travel;</DELETED>
<DELETED> ``(3) the cost of the operation and maintenance of
overseas facilities;</DELETED>
<DELETED> ``(4) the cost of teaching and research
materials;</DELETED>
<DELETED> ``(5) the cost of acquisition, maintenance, and
preservation of library collections;</DELETED>
<DELETED> ``(6) the cost of bringing visiting scholars and
faculty to a center to teach or to conduct research;</DELETED>
<DELETED> ``(7) the cost of organizing and managing
conferences; and</DELETED>
<DELETED> ``(8) the cost of publication and dissemination of
material for the scholarly and general public.</DELETED>
<DELETED> ``(c) Limitation.--The Secretary shall only award grants
to and enter into contracts with centers under this section that--
</DELETED>
<DELETED> ``(1) receive more than 50 percent of their
funding from public or private United States sources;</DELETED>
<DELETED> ``(2) have a permanent presence in the country in
which the center is located; and</DELETED>
<DELETED> ``(3) are organizations described in section
501(c)(3) of the Internal Revenue Code of 1986 which are exempt
from taxation under section 501(a) of such Code.</DELETED>
<DELETED> ``(d) Development Grants.--The Secretary is authorized to
make grants for the establishment of new centers. The grants may be
used to fund activities that, within 1 year, will result in the
creation of a center described in subsection (c).</DELETED>
<DELETED>``SEC. 609. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> ``There are authorized to be appropriated to carry out
this part $80,000,000 for fiscal year 1999, and such sums as may be
necessary for each of the 4 succeeding fiscal years.''.</DELETED>
<DELETED>SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION
PROGRAMS.</DELETED>
<DELETED> Part B of title VI (20 U.S.C. 1130 et seq.) is amended--
</DELETED>
<DELETED> (1) in section 612 (20 U.S.C. 1130-1)--</DELETED>
<DELETED> (A) in subsection (c)--</DELETED>
<DELETED> (i) in paragraph (1)--</DELETED>
<DELETED> (I) in subparagraph (B),
by striking ``advanced''; and</DELETED>
<DELETED> (II) in subparagraph (C),
by striking ``evening or summer'';
and</DELETED>
<DELETED> (ii) in paragraph (2)(C), by
inserting ``foreign language,'' after
``studies,''; and</DELETED>
<DELETED> (B) in subsection (d)(2)(G), by inserting
``, such as a representative of a community college in
the region served by the center'' before the period;
and</DELETED>
<DELETED> (2) in section 614 (20 U.S.C. 1130b)--</DELETED>
<DELETED> (A) in subsection (a), by striking
``1993'' and inserting ``1999''; and</DELETED>
<DELETED> (B) in subsection (b), by striking
``1993'' and inserting ``1999''.</DELETED>
<DELETED>SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.</DELETED>
<DELETED> Part C of title VI (20 U.S.C. 1131 et seq.) is amended--
</DELETED>
<DELETED> (1) in section 621(e) (20 U.S.C. 1131(e))--
</DELETED>
<DELETED> (A) by striking ``one-fourth'' and
inserting ``one-half''; and</DELETED>
<DELETED> (B) by adding at the end the following:
``The non-Federal contribution shall be made from
private sector sources.'';</DELETED>
<DELETED> (2) by redesignating sections 622 through 627 (20
U.S.C. 1131a and 1131f) as sections 623 through 628,
respectively; and</DELETED>
<DELETED> (3) by inserting after section 621 (20 U.S.C.
1131) the following:</DELETED>
<DELETED>``SEC. 622. INSTITUTIONAL DEVELOPMENT.</DELETED>
<DELETED> ``(a) In General.--The Institute shall award grants, from
amounts available to the Institute for each fiscal year, to
historically Black colleges and universities, Hispanic-serving
institutions, tribally controlled community colleges, and minority
institutions, to enable such colleges, universities, and institutions
to strengthen international affairs programs.</DELETED>
<DELETED> ``(b) Application.--No grant may be made by the Institute
unless an application is made by the college, university, or
institution at such time, in such manner, and accompanied by such
information as the Institute may require.</DELETED>
<DELETED> ``(c) Definitions.--In this section--</DELETED>
<DELETED> ``(1) the term `historically Black college and
university' has the meaning given the term in section
322;</DELETED>
<DELETED> ``(2) the term `Hispanic-serving institution' has
the meaning given the term in section 316(b);</DELETED>
<DELETED> ``(3) the term `tribally controlled community
college' has the meaning given the term in section 2 of the
Tribally Controlled Community College Assistance Act of 1978
(25 U.S.C. 1801); and</DELETED>
<DELETED> ``(4) the term `minority institution' has the
meaning given the term in section 1046.'';</DELETED>
<DELETED> (4) in section 623 (as redesignated by paragraph
(2))--</DELETED>
<DELETED> (A) in the section heading, by striking
``junior year'' and inserting ``study'';</DELETED>
<DELETED> (B) in subsection (b)(2)--</DELETED>
<DELETED> (i) by inserting ``, or completing
the third year of study in the case of a summer
abroad program,'' after ``study'';
and</DELETED>
<DELETED> (ii) by striking ``junior year''
and inserting ``study'';</DELETED>
<DELETED> (C) in subsection (c)--</DELETED>
<DELETED> (i) in the matter preceding
paragraph (1), by striking ``junior year'' and
inserting ``study'';</DELETED>
<DELETED> (ii) in paragraph (1), by striking
``junior year'' and inserting ``study'';
and</DELETED>
<DELETED> (iii) in paragraph (2)--</DELETED>
<DELETED> (I) by striking ``one-
half'' and inserting ``one-third'';
and</DELETED>
<DELETED> (II) by striking ``junior
year'' and inserting
``study'';</DELETED>
<DELETED> (5) in section 627 (as redesignated by paragraph
(2)) (20 U.S.C. 1131e), by striking ``625'' and inserting
``626''; and</DELETED>
<DELETED> (6) in section 628 (as redesignated by paragraph
(2)) (20 U.S.C. 1131f), by striking ``1993'' and inserting
``1999''.</DELETED>
<DELETED>SEC. 604. GENERAL PROVISIONS.</DELETED>
<DELETED> Section 632 (20 U.S.C. 1132-1) is repealed.</DELETED>
<DELETED>TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER
ACTS</DELETED>
<DELETED>PART A--INDIAN EDUCATION PROGRAMS</DELETED>
<DELETED>SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSISTANCE ACT
OF 1978.</DELETED>
<DELETED> (a) Reauthorization.--</DELETED>
<DELETED> (1) Amount of grants.--Section 108(a)(2) of the
Tribally Controlled Community College Assistance Act of 1978
(25 U.S.C. 1808(a)(2)) is amended by striking ``$5,820'' and
inserting ``$6,000''.</DELETED>
<DELETED> (2) Authorization of appropriations.--</DELETED>
<DELETED> (A) Title i.--Section 110(a) of the
Tribally Controlled Community College Assistance Act of
1978 (25 U.S.C. 1810(a)) is amended--</DELETED>
<DELETED> (i) in paragraph (1), by striking
``1993'' and inserting ``1999'';</DELETED>
<DELETED> (ii) in paragraph (2), by striking
``$30,000,000 for fiscal year 1993'' and
inserting ``$40,000,000 for fiscal year
1999'';</DELETED>
<DELETED> (iii) in paragraph (3), by
striking ``1993'' and inserting ``1999'';
and</DELETED>
<DELETED> (iv) in paragraph (4), by striking
``1993'' and inserting ``1999''.</DELETED>
<DELETED> (B) Title iii.--Section 306(a) of the
Tribally Controlled Community College Assistance Act of
1978 (25 U.S.C. 1836(a)) is amended by striking
``1993'' and inserting ``1999''.</DELETED>
<DELETED> (C) Title iv.--Section 403 of the Tribal
Economic Development and Technology Related Education
Assistance Act of 1990 (25 U.S.C. 1852) is amended by
striking ``1993'' and inserting ``1999''.</DELETED>
<DELETED> (b) Name Change.--The Tribally Controlled Community
College Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended--
</DELETED>
<DELETED> (1) by striking ``community college'' each place
the term appears and inserting ``college or
university'';</DELETED>
<DELETED> (2) by striking ``Community College'' each place
the term appears (other than when such term is preceded by the
term ``Navajo'') and inserting ``College or
University'';</DELETED>
<DELETED> (3) by striking ``community colleges'' each place
the term appears and inserting ``colleges or
universities'';</DELETED>
<DELETED> (4) by striking ``such college'' each place the
term appears and inserting ``such college or university'';
and</DELETED>
<DELETED> (5) by striking ``community college's'' and
inserting ``college or university's''.</DELETED>
<DELETED>SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN
CULTURE AND ART DEVELOPMENT.</DELETED>
<DELETED> Section 1531 of the American Indian, Alaska Native, and
Native Hawaiian Culture and Art Development Act (20 U.S.C. 4451) is
amended to read as follows:</DELETED>
<DELETED>``SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> ``There is authorized to be appropriated to carry out part
A $5,000,000 for fiscal year 1999.''.</DELETED>
<DELETED>PART B--ADVANCED PLACEMENT INCENTIVE PROGRAM</DELETED>
<DELETED>SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.</DELETED>
<DELETED> (a) Program Established.--The Secretary of Education is
authorized to make grants to States having applications approved under
subsection (d), from allotments under subsection (b), to enable the
States to reimburse low-income individuals to cover part or all of the
cost of advanced placement test fees, if the low-income individuals--
</DELETED>
<DELETED> (1) are enrolled in an advanced placement class;
and</DELETED>
<DELETED> (2) plan to take an advanced placement
test.</DELETED>
<DELETED> (b) Allotment.--From the sum appropriated under subsection
(j) for a fiscal year, the Secretary shall allot to each State an
amount that bears the same relation to the sum as the number of low-
income individuals in the State bears to the number of low-income
individuals in all States.</DELETED>
<DELETED> (c) Information Dissemination.--The State educational
agency may use not more than 5 percent of grant funds received for a
fiscal year to disseminate information regarding the availability of
test fee payments under this section to eligible individuals through
secondary school teachers and guidance counselors.</DELETED>
<DELETED> (d) Requirements for Approval of Applications.--In
approving applications for grants the Secretary of Education shall--
</DELETED>
<DELETED> (1) require that each such application contain a
description of the advance placement test fees the State will
pay on behalf of individual students;</DELETED>
<DELETED> (2) require an assurance that any funds received
under this section, other than funds used in accordance with
subsection (c), shall be used only to pay advanced placement
test fees; and</DELETED>
<DELETED> (3) contain such information as the Secretary may
require to demonstrate that the State will ensure that a
student is eligible for payments under this section, including
the documentation required by chapter 1 of subpart 2 of part A
of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070a-11 et seq.).</DELETED>
<DELETED> (e) Funding Rule.--Funds provided under this section shall
be used to supplement and not supplant other Federal, State, local or
private funds available to assist low-income individuals in paying for
advanced placement testing, except that such funds may be used to
supplant the funds so available if the funds used to supplant are used
to increase the participation of low-income individuals in advanced
placement courses through teacher training and other activities
directly related to increasing the availability of advanced placement
courses.</DELETED>
<DELETED> (f) Special Rule.--The Secretary of Education shall only
award grants under this section for a fiscal year if the amount the
College Board spends for the College Board's fee assistance program for
low-income students for the fiscal year is not less than the amount the
College Board spent for such program for the preceding fiscal
year.</DELETED>
<DELETED> (g) Regulations.--The Secretary of Education shall
prescribe such regulations as are necessary to carry out this
section.</DELETED>
<DELETED> (h) Report.--Each State annually shall report to the
Secretary of Education regarding--</DELETED>
<DELETED> (1) the number of low-income individuals in the
State who receive assistance under this section; and</DELETED>
<DELETED> (2) the teacher training and other activities
described in subsection (e).</DELETED>
<DELETED> (i) Definition.--In this section:</DELETED>
<DELETED> (1) Advanced placement test.--The term ``advanced
placement test'' includes only an advanced placement test
approved by the Secretary of Education for the purposes of this
section.</DELETED>
<DELETED> (2) Low-income individual.--The term ``low-income
individual'' has the meaning given the term in section
402A(g)(2) of the Higher Education Act of 1965 (20 U.S.C.
1070a-11(g)(2)).</DELETED>
<DELETED> (j) Authorization of Appropriations.--There are authorized
to be appropriated $10,000,000 for fiscal year 1999 and such sums as
may be necessary for each of the 4 succeeding fiscal years to carry out
this section.</DELETED>
<DELETED>PART C--INSTITUTE FOR PEACE</DELETED>
<DELETED>SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE OF
PEACE.</DELETED>
<DELETED> The United States Institute of Peace Act (22 U.S.C. 4601
et seq.) is amended--</DELETED>
<DELETED> (1) in section 1705 (22 U.S.C. 4604)--</DELETED>
<DELETED> (A) in subsection (f), by inserting
``personal service and other'' after ``may enter
into''; and</DELETED>
<DELETED> (B) in subsection (o), by inserting after
``Services'' the following: ``and use all sources of
supply and services of the General Services
Administration'';</DELETED>
<DELETED> (2) in section 1706(e)(4) (22 U.S.C. 4605(e)(4)),
by adding at the end the following: ``Service under an
appointment of less than 4 years shall not be treated as a term
for purposes of this paragraph.'';</DELETED>
<DELETED> (3) in section 1710(a)(1) (22 U.S.C. 4609(a)(1)),
by striking ``1993'' and inserting ``1999''; and</DELETED>
<DELETED> (4) in the second and third sentences of section
1712 (22 U.S.C. 4611), by striking ``shall'' each place it
appears and inserting ``may''.</DELETED>
<DELETED>PART D--COMMUNITY SCHOLARSHIP MOBILIZATION</DELETED>
<DELETED>SEC. 741. SHORT TITLE.</DELETED>
<DELETED> This part may be cited as the ``Community Scholarship
Mobilization Act.''</DELETED>
<DELETED>SEC. 742. FINDINGS.</DELETED>
<DELETED> Congress finds that--</DELETED>
<DELETED> (1) the local community, when properly organized
and challenged, is one of the best sources of academic support,
motivation toward achievement, and financial resources for
aspiring postsecondary students;</DELETED>
<DELETED> (2) local communities, working to complement or
augment services currently offered by area schools and
colleges, can raise the educational expectations and increase
the rate of postsecondary attendance of their youth by forming
locally-based organizations that provide both academic support
(including guidance, counseling, mentoring, tutoring,
encouragement, and recognition) and tangible, locally raised,
effectively targeted, publicly recognized, financial
assistance;</DELETED>
<DELETED> (3) proven methods of stimulating these community
efforts can be promoted through Federal support for the
establishment of regional, State or community program centers
to organize and challenge community efforts to develop
educational incentives and support for local students;
and</DELETED>
<DELETED> (4) using Federal funds to leverage private
contributions to help students from low-income families attain
educational and career goals is an efficient and effective
investment of scarce taxpayer-provided resources.</DELETED>
<DELETED>SEC. 743. DEFINITIONS.</DELETED>
<DELETED> In this part:</DELETED>
<DELETED> (1) Regional, state or community program center.--
The term ``regional, State or community program center'' means
an organization that--</DELETED>
<DELETED> (A) is a division of, responsible to, and
overseen by, the national organization; and</DELETED>
<DELETED> (B) is staffed by professionals trained to
create, develop, and sustain local entities in towns,
cities, and neighborhoods.</DELETED>
<DELETED> (2) Local entity.--The term ``local entity'' means
an organization that--</DELETED>
<DELETED> (A) is a nonprofit organization that is
described in section 501(c)(3) of the Internal Revenue
Code of 1986, and exempt from taxation under section
501(a) of such Code (or shall meet this criteria
through affiliation with the national
organization);</DELETED>
<DELETED> (B) is formed for the purpose of providing
educational scholarships and academic support for
residents of the local community served by such
organization;</DELETED>
<DELETED> (C) solicits broad-based community support
in its academic support and fund-raising
activities;</DELETED>
<DELETED> (D) is broadly representative of the local
community in the structures of its volunteer-operated
organization and has a board of directors that includes
leaders from local neighborhood organizations and
neighborhood residents, such as school or college
personnel, parents, students, community agency
representatives, retirees, and representatives of the
business community;</DELETED>
<DELETED> (E) awards scholarships without regard to
age, sex, marital status, race, creed, color, religion,
national origin or disability; and</DELETED>
<DELETED> (F) gives priority to awarding
scholarships for postsecondary education to deserving
students from low-income families in the local
community.</DELETED>
<DELETED> (3) National organization.--The term ``national
organization'' means an organization that--</DELETED>
<DELETED> (A) has the capacity to create, develop
and sustain local entities and affiliated regional,
State or community program centers;</DELETED>
<DELETED> (B) has the capacity to sustain newly
created local entities in towns, cities, and
neighborhoods through ongoing training support
programs;</DELETED>
<DELETED> (C) is described in section 501(c)(3) of
the Internal Revenue Code of 1986, and exempt from
taxation under section 501(a) of such Code;</DELETED>
<DELETED> (D) is a publicly supported organization
within the meaning of section 170(b)(1)(A)(iv) of such
Code;</DELETED>
<DELETED> (E) ensures that each of the
organization's local entities meet the criteria
described in subparagraphs (C) and (D); and</DELETED>
<DELETED> (F) has a program for or experience in
cooperating with secondary and postsecondary
institutions in carrying out the organization's
scholarship and academic support activities.</DELETED>
<DELETED> (4) High poverty area.--The term ``high poverty
area'' means a community with a higher percentage of children
from low-income families than the national average of such
percentage and a lower percentage of children pursuing
postsecondary education than the national average of such
percentage.</DELETED>
<DELETED> (5) Students from low-income families.--The term
``students from low-income families'' means students
determined, pursuant to part F of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087kk et seq.), to be
eligible for a Federal Pell Grant under subpart 1 of part A of
title IV of such Act (20 U.S.C. 1070a).</DELETED>
<DELETED>SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.</DELETED>
<DELETED> (a) Purpose.--It is the purpose of this part to establish
and support regional, State or community program centers to enable such
centers to foster the development of local entities in high poverty
areas that promote higher education goals for students from low-income
families by--</DELETED>
<DELETED> (1) providing academic support, including
guidance, counseling, mentoring, tutoring, and recognition;
and</DELETED>
<DELETED> (2) providing scholarship assistance for the cost
of postsecondary education.</DELETED>
<DELETED> (b) Endowment Grant Authority.--From the funds
appropriated pursuant to the authority of section 746, the Secretary
shall award an endowment grant, on a competitive basis, to a national
organization to enable such organization to support the establishment
or ongoing work of regional, State or community program centers that
foster the development of local entities in high poverty areas to
improve high school graduation rates and postsecondary attendance
through the provision of academic support services and scholarship
assistance for the cost of postsecondary education.</DELETED>
<DELETED>SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.</DELETED>
<DELETED> (a) In General.--The Secretary shall award one or more
endowment grants described in section 744(b) pursuant to an agreement
between the Secretary and a national organization. Such agreement
shall--</DELETED>
<DELETED> (1) require the national organization to establish
an endowment fund in the amount of the grant, the corpus of
which shall remain intact and the interest income from which
shall be used to support the activities described in paragraphs
(2) and (3);</DELETED>
<DELETED> (2) require the national organization to use 70
percent of the interest income from the endowment fund in any
fiscal year to support the establishment or ongoing work of
regional, State or community program centers to enable such
centers to work with local communities to establish local
entities in high poverty areas and provide ongoing technical
assistance, training workshops, and other activities to help
ensure the ongoing success of the local entities;</DELETED>
<DELETED> (3) require the national organization to use 30
percent of the interest income from the endowment fund in any
fiscal year to provide scholarships for postsecondary education
to students from low-income families, which scholarships shall
be matched on a dollar-for-dollar basis from funds raised by
the local entities;</DELETED>
<DELETED> (4) require that at least 50 percent of all the
interest income from the endowment be allocated to establish
new local entities or support regional, State or community
program centers in high poverty areas;</DELETED>
<DELETED> (5) require the national organization to submit,
for each fiscal year in which such organization uses the
interest from the endowment fund, a report to the Secretary
that contains--</DELETED>
<DELETED> (A) a description of the programs and
activities supported by the interest on the endowment
fund;</DELETED>
<DELETED> (B) the audited financial statement of the
national organization for the preceding fiscal
year;</DELETED>
<DELETED> (C) a plan for the programs and activities
to be supported by the interest on the endowment fund
as the Secretary may require; and</DELETED>
<DELETED> (D) an evaluation of the programs and
activities supported by the interest on the endowment
fund as the Secretary may require; and</DELETED>
<DELETED> (E) data indicating the number of students
from low-income families who receive scholarships from
local entities, and the amounts of such
scholarships;</DELETED>
<DELETED> (6) contain such assurances as the Secretary may
require with respect to the management and operation of the
endowment fund; and</DELETED>
<DELETED> (7) contain an assurance that if the Secretary
determines that such organization is not in substantial
compliance with the provisions of this part, then the national
organization shall pay to the Secretary an amount equal to the
corpus of the endowment fund plus any accrued interest on such
fund that is available to the national organization on the date
of such determination.</DELETED>
<DELETED> (b) Returned Funds.--All funds returned to the Secretary
pursuant to subsection (a)(7) shall be available to the Secretary to
carry out any scholarship or grant program assisted under title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).</DELETED>
<DELETED>SEC. 746. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> There are authorized to be appropriated to carry out this
part $10,000,000 for fiscal year 2000.</DELETED>
<DELETED>PART E--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY
TRANSITION TRAINING FOR INCARCERATED YOUTH OFFENDERS</DELETED>
<DELETED>SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY
TRANSITION TRAINING FOR INCARCERATED YOUTH
OFFENDERS.</DELETED>
<DELETED> (a) Findings.--Congress makes the following
findings:</DELETED>
<DELETED> (1) Over 150,000 youth offenders age 21 and
younger are incarcerated in the Nation's jails, juvenile
facilities, and prisons.</DELETED>
<DELETED> (2) Most youth offenders who are incarcerated have
been sentenced as first-time adult felons.</DELETED>
<DELETED> (3) Approximately 75 percent of youth offenders
are high school dropouts who lack basic literacy and life
skills, have little or no job experience, and lack marketable
skills.</DELETED>
<DELETED> (4) The average incarcerated youth has attended
school only through grade 10.</DELETED>
<DELETED> (5) Most of these youths can be diverted from a
life of crime into productive citizenship with available
educational, vocational, work skills, and related service
programs.</DELETED>
<DELETED> (6) If not involved with educational programs
while incarcerated, almost all of these youths will return to a
life of crime upon release.</DELETED>
<DELETED> (7) The average length of sentence for a youth
offender is about 3 years. Time spent in prison provides a
unique opportunity for education and training.</DELETED>
<DELETED> (8) Even with quality education and training
provided during incarceration, a period of intense supervision,
support, and counseling is needed upon release to ensure
effective reintegration of youth offenders into
society.</DELETED>
<DELETED> (9) Research consistently shows that the vast
majority of incarcerated youths will not return to the public
schools to complete their education.</DELETED>
<DELETED> (10) There is a need for alternative educational
opportunities during incarceration and after release.</DELETED>
<DELETED> (b) Definition.--For purposes of this part, the term
``youth offender'' means a male or female offender under the age of 25,
who is incarcerated in a State prison, including a prerelease
facility.</DELETED>
<DELETED> (c) Grant Program.--The Secretary of Education (in this
section referred to as the ``Secretary'') shall establish a program in
accordance with this section to provide grants to the State
correctional education agencies in the States, from allocations for the
States under subsection (i), to assist and encourage incarcerated
youths to acquire functional literacy, life, and job skills, through
the pursuit of a postsecondary education certificate, or an associate
of arts or bachelor's degree while in prison, and employment counseling
and other related services which start during incarceration and
continue through prerelease and while on parole.</DELETED>
<DELETED> (d) Application.--To be eligible for a grant under this
section, a State correctional education agency shall submit to the
Secretary a proposal for a youth offender program that--</DELETED>
<DELETED> (1) identifies the scope of the problem, including
the number of incarcerated youths in need of postsecondary
education and vocational training;</DELETED>
<DELETED> (2) lists the accredited public or private
educational institution or institutions that will provide
postsecondary educational services;</DELETED>
<DELETED> (3) lists the cooperating agencies, public and
private, or businesses that will provide related services, such
as counseling in the areas of career development, substance
abuse, health, and parenting skills;</DELETED>
<DELETED> (4) describes the evaluation methods and
performance measures that the State correctional education
agency will employ, which methods and measures--</DELETED>
<DELETED> (A) shall be appropriate to meet the goals
and objectives of the proposal; and</DELETED>
<DELETED> (B) shall include measures of--</DELETED>
<DELETED> (i) program completion;</DELETED>
<DELETED> (ii) student academic and
vocational skill attainment;</DELETED>
<DELETED> (iii) success in job placement and
retention; and</DELETED>
<DELETED> (iv) recidivism;</DELETED>
<DELETED> (5) describes how the proposed programs are to be
integrated with existing State correctional education programs
(such as adult education, graduate education degree programs,
and vocational training) and State industry programs;</DELETED>
<DELETED> (6) addresses the educational needs of youth
offenders who are in alternative programs (such as boot camps);
and</DELETED>
<DELETED> (7) describes how students will be selected so
that only youth offenders eligible under subsection (f) will be
enrolled in postsecondary programs.</DELETED>
<DELETED> (e) Program Requirements.--Each State correctional
education agency receiving a grant under this section shall--</DELETED>
<DELETED> (1) integrate activities carried out under the
grant with the objectives and activities of the school-to-work
programs of such State, including--</DELETED>
<DELETED> (A) work experience or apprenticeship
programs;</DELETED>
<DELETED> (B) transitional worksite job training for
vocational education students that is related to the
occupational goals of such students and closely linked
to classroom and laboratory instruction;</DELETED>
<DELETED> (C) placement services in occupations that
the students are preparing to enter;</DELETED>
<DELETED> (D) employment-based learning programs;
and</DELETED>
<DELETED> (E) programs that address State and local
labor shortages;</DELETED>
<DELETED> (2) annually report to the Secretary and the
Attorney General on the results of the evaluations conducted
using the methods and performance measures contained in the
proposal; and</DELETED>
<DELETED> (3) provide to each State for each student
eligible under subsection (f) not more than $1,500 annually for
tuition, books, and essential materials, and not more than $300
annually for related services such as career development,
substance abuse counseling, parenting skills training, and
health education, for each eligible incarcerated
youth.</DELETED>
<DELETED> (f) Student Eligibility.--A youth offender shall be
eligible for participation in a program receiving a grant under this
section if the youth offender--</DELETED>
<DELETED> (1) is eligible to be released within 5 years
(including a youth offender who is eligible for parole within
such time); and</DELETED>
<DELETED> (2) is 25 years of age or younger.</DELETED>
<DELETED> (g) Length of Participation.--A State correctional
education agency receiving a grant under this section shall provide
educational and related services to each participating youth offender
for a period not to exceed 5 years, 1 year of which may be devoted to
study in a graduate education degree program or to remedial education
services for students who have obtained a secondary school diploma.
Educational and related services shall start during the period of
incarceration in prison or prerelease and may continue during the
period of parole.</DELETED>
<DELETED> (h) Education Delivery Systems.--State correctional
education agencies and cooperating institutions shall, to the extent
practicable, use high-tech applications in developing programs to meet
the requirements and goals of this section.</DELETED>
<DELETED> (i) Allocation of Funds.--From the amounts appropriated
pursuant to subsection (j), the Secretary shall allot to each State an
amount that bears the same relationship to such funds as the total
number of students eligible under subsection (f) in such State bears to
the total number of such students in all States.</DELETED>
<DELETED> (j) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $14,000,000 for fiscal
year 1999 and such sums as may be necessary for each of the 4
succeeding fiscal years.</DELETED>
<DELETED>PART F--EDUCATION OF THE DEAF</DELETED>
<DELETED>SEC. 761. SHORT TITLE.</DELETED>
<DELETED> This part may be cited as the ``Education of the Deaf
Amendments of 1998''.</DELETED>
<DELETED>SEC. 762. ELEMENTARY AND SECONDARY EDUCATION
PROGRAMS.</DELETED>
<DELETED> Section 104(b) of the Education of the Deaf Act of 1986
(20 U.S.C. 4034(b)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) in subparagraph (A), by inserting
``and'' after the semicolon;</DELETED>
<DELETED> (B) in subparagraph (B), by striking ``;
and'' and inserting a period; and</DELETED>
<DELETED> (C) by striking subparagraph
(C);</DELETED>
<DELETED> (2) in the matter preceding subparagraph (A) of
paragraph (2)--</DELETED>
<DELETED> (A) by striking ``paragraph (1)'' and
inserting ``paragraph (1)(B)''; and</DELETED>
<DELETED> (B) by striking ``section 618(b)'' and
inserting ``section 618(a)(1)(A)'';</DELETED>
<DELETED> (3) in paragraph (3), by striking ``intermediate
educational unit'' and inserting ``educational service
agency'';</DELETED>
<DELETED> (4) in paragraph (4)--</DELETED>
<DELETED> (A) in subparagraph (A), by striking
``intermediate educational unit'' and inserting
``educational service agency''; and</DELETED>
<DELETED> (B) in subparagraph (B), by striking
``intermediate educational units'' and inserting
``educational service agencies''; and</DELETED>
<DELETED> (5) by amending subparagraph (C) to read as
follows:</DELETED>
<DELETED> ``(C) provide the child a free appropriate
public education in accordance with part B of the
Individuals with Disabilities Education Act and
procedural safeguards in accordance with the following
provisions of section 615 of such Act:</DELETED>
<DELETED> ``(i) paragraphs (1), and (3)
through (6), of subsection (b).</DELETED>
<DELETED> ``(ii) Subsections (c) through
(g).</DELETED>
<DELETED> ``(iii) Subsection (h), except for
the matter in paragraph (4) pertaining to
transmission of findings and decisions to a
State advisory panel.</DELETED>
<DELETED> ``(iv) Paragraphs (1) and (2) of
subsection (i).</DELETED>
<DELETED> ``(v) Subsection (j)--</DELETED>
<DELETED> ``(I) except that such
subsection shall not be applicable to a
decision by the University to refuse to
admit a child; or</DELETED>
<DELETED> ``(II) to dismiss a child,
except that, before dismissing any
child, the University shall give at
least 60 days written notice to the
child's parents and to the local
educational agency in which the child
resides, unless the dismissal involves
a suspension, expulsion, or other
change in placement covered under
section 615(k).</DELETED>
<DELETED> ``(vi) Subsections (k) through
(m).''.</DELETED>
<DELETED>SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.</DELETED>
<DELETED> Section 105(a) of the Education of the Deaf Act of 1986
(20 U.S.C. 4305(a)) is amended--</DELETED>
<DELETED> (1) by striking ``within 1 year after enactment of
the Education of the Deaf Act Amendments of 1992, a new'' and
inserting ``and periodically update, an''; and</DELETED>
<DELETED> (2) by amending the second sentence to read as
follows: ``The Secretary or the University shall determine the
necessity for the periodic update described in the preceding
sentence.''.</DELETED>
<DELETED>SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR
THE DEAF.</DELETED>
<DELETED> Paragraph (2) of section 112(a) of the Education of the
Deaf Act of 1986 (20 U.S.C. 4332(a)) is amended to read as
follows:</DELETED>
<DELETED> ``(2) The Secretary and the institution of higher
education with which the Secretary has an agreement under this
section--</DELETED>
<DELETED> ``(A) shall periodically assess the need for
modification of the agreement; and</DELETED>
<DELETED> ``(B) shall periodically update the agreement as
determined necessary by the Secretary or the
institution.''.</DELETED>
<DELETED>SEC. 765. DEFINITIONS.</DELETED>
<DELETED> Section 201 of the Education of the Deaf Act of 1986 (20
U.S.C. 4351) is amended--</DELETED>
<DELETED> (1) in paragraph (1)(C), by striking ``Palau (but
only until the Compact of Free Association with Palau takes
effect),''; and</DELETED>
<DELETED> (2) in paragraph (5)--</DELETED>
<DELETED> (A) by inserting ``and'' after ``Virgin
Islands,''; and</DELETED>
<DELETED> (B) by striking ``, and Palau (but only
until the Compact of Free Association with Palau takes
effect)''.</DELETED>
<DELETED>SEC. 766. GIFTS.</DELETED>
<DELETED> Subsection (b) of section 203 of the Education of the Deaf
Act of 1986 (20 U.S.C. 4353) is amended to read as follows:</DELETED>
<DELETED> ``(b) Independent Financial and Compliance Audit.--
</DELETED>
<DELETED> ``(1) In general.--Gallaudet University shall have
an annual independent financial and compliance audit made of
the programs and activities of the University, including the
national mission and school operations of the elementary and
secondary education programs at Gallaudet. The institution of
higher education with which the Secretary has an agreement
under section 112 shall have an annual independent financial
and compliance audit made of the programs and activities of
such institution of higher education, including NTID, and
containing specific schedules and analyses for all NTID funds,
as determined by the Secretary.</DELETED>
<DELETED> ``(2) Compliance.--As used in paragraph (1),
compliance means compliance with sections 102(b), 105(b)(4),
112(b)(5), and 203(c), paragraphs (2) and (3) of section
207(b), subsections (b)(2), (b)(3), and (c) through (f), of
section 207, and subsections (b) and (c) of section
210.</DELETED>
<DELETED> ``(3) Submission of audits.--A copy of each audit
described in paragraph (1) shall be provided to the Secretary
within 15 days of acceptance of the audit by the University or
the institution authorized to establish and operate the NTID
under section 112(a), as the case may be, but not later than
January 10 of each year.''.</DELETED>
<DELETED>SEC. 767. REPORTS.</DELETED>
<DELETED> Section 204(3) of the Education of the Deaf Act of 1986
(20 U.S.C. 4354(3)) is amended--</DELETED>
<DELETED> (1) in subparagraph (A), by striking ``The
annual'' and inserting ``A summary of the annual'';
and</DELETED>
<DELETED> (2) in subparagraph (B), by striking ``the
annual'' and inserting ``a summary of the annual''.</DELETED>
<DELETED>SEC. 768. MONITORING, EVALUATION, AND REPORTING.</DELETED>
<DELETED> Section 205(c) of the Education of the Deaf Act of 1986
(20 U.S.C. 4355(c)) is amended by striking ``1993, 1994, 1995, 1996,
and 1997'' and inserting ``1998 through 2003''.</DELETED>
<DELETED>SEC. 769. INVESTMENTS.</DELETED>
<DELETED> Section 207 of the Education of the Deaf Act of 1986 (20
U.S.C. 4357) is amended--</DELETED>
<DELETED> (1) in subsection (c)(1), by inserting ``the
Federal contribution of'' after ``shall invest'';</DELETED>
<DELETED> (2) in subsection (d)(3)(A), by striking ``prior''
and inserting ``current''; and</DELETED>
<DELETED> (3) in subsection (h)--</DELETED>
<DELETED> (A) in paragraph (1), by striking ``1993
through 1997'' and inserting ``1998 through 2003'';
and</DELETED>
<DELETED> (B) in paragraph (2), by striking ``1993
through 1997'' and inserting ``1998 through
2003''.</DELETED>
<DELETED>SEC. 770. INTERNATIONAL STUDENTS.</DELETED>
<DELETED> Section 210(a) of the Education of the Deaf Act of 1986
(20 U.S.C. 4359a(a)) is amended by inserting before the period ``,
except that in any school year no United States citizen who is
qualified to be admitted to the University or NTID and applies for
admission to the University or NTID shall be denied admission because
of the admission of an international student''.</DELETED>
<DELETED>SEC. 771. RESEARCH PRIORITIES.</DELETED>
<DELETED> Section 211 of the Education of the Deaf Act of 1986 (20
U.S.C. 4360) is amended to read as follows:</DELETED>
<DELETED>``SEC. 211. RESEARCH PRIORITIES.</DELETED>
<DELETED> ``(a) Research Priorities.--Gallaudet University and the
National Technical Institute for the Deaf shall each establish and
disseminate priorities, that reflect public input, through a process
that includes consumers, constituent groups, and the heads of other
federally funded programs. The priorities for the University shall
include activities conducted as part of the University's elementary and
secondary education programs under section 104.</DELETED>
<DELETED> ``(b) Research Reports.--The University and NTID shall
each prepare and submit an annual research report, to the Secretary,
the Committee on Education and the Workforce of the House of
Representatives, and the Committee on Labor and Human Resources of the
Senate, not later than January 10 of each year, that shall include--
</DELETED>
<DELETED> ``(1) a summary of the public input received as
part of the establishment and dissemination of priorities
required by subsection (a), and the University's and NTID's
response to the input; and</DELETED>
<DELETED> ``(2) a summary description of the research
undertaken by the University and NTID, the start and projected
end dates for each research project, the projected cost and
source or sources of funding for each project, and any products
resulting from research completed in the prior fiscal
year.''.</DELETED>
<DELETED>SEC. 772. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> Title II of the Education of the Deaf Act of 1986 (20
U.S.C. 4351 et seq.) is amended by adding at the end the
following:</DELETED>
<DELETED>``SEC. 212. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> ``(a) Gallaudet University.--There are authorized to be
appropriated such sums as may be necessary for each of the fiscal years
1998 through 2003 to carry out the provisions of titles I and II,
relating to--</DELETED>
<DELETED> ``(1) Gallaudet University;</DELETED>
<DELETED> ``(2) Kendall Demonstration Elementary School;
and</DELETED>
<DELETED> ``(3) the Model Secondary School for the
Deaf.</DELETED>
<DELETED> ``(b) National Technical Institute for the Deaf.--There
are authorized to be appropriated such sums as may be necessary for
each of the fiscal years 1998 through 2003 to carry out the provisions
of titles I and II relating to the National Technical Institute for the
Deaf.''.</DELETED>
<DELETED>SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.</DELETED>
<DELETED> The Education of the Deaf Act of 1986 (20 U.S.C. 4301 et
seq.) is amended by adding at the end the following:</DELETED>
<DELETED>``TITLE III--COMMISSION ON EDUCATION OF THE DEAF</DELETED>
<DELETED>``SEC. 301. COMMISSION ESTABLISHED.</DELETED>
<DELETED> ``(a) Establishment.--</DELETED>
<DELETED> ``(1) In general.--The Secretary shall establish a
Commission on the Education of the Deaf to identify those
education-related factors in the lives of individuals who are
deaf that result in barriers to successful postsecondary
education experiences and employment, and those education-
related factors in the lives of individuals who are deaf that
contribute to successful postsecondary education experiences
and employment.</DELETED>
<DELETED> ``(2) Definition of individuals who are deaf.--In
this title, the term `individuals who are deaf' means all
persons with hearing impairments, including those who are hard-
of-hearing, those deafened later in life, and those who are
profoundly deaf.</DELETED>
<DELETED> ``(b) Composition.--</DELETED>
<DELETED> ``(1) In general.--The Commission shall be
composed of 13 members appointed by the Secretary from
recommendations made by the National Association of the Deaf,
the American Society for Deaf Children, the Alexander Graham
Bell Association, the President of Gallaudet, the Vice
President of the National Technical Institute for the Deaf,
State Schools for the Deaf, projects to train teachers of the
deaf funded under section 673(b) of the Individuals with
Disabilities Education Act, parent training and information
centers funded under section 682 of such Act, the Regional
Centers on Postsecondary Education for Individuals who are Deaf
funded under section 672 of such Act, Self-Help for Hard of
Hearing People, and the Cothe Council on Education of the
Deaf.</DELETED>
<DELETED> ``(2) Qualifications.--</DELETED>
<DELETED> ``(A) In general.--Members of the
Commission shall be appointed from among individuals
who have broad experience and expertise in deafness,
program evaluation, education, rehabilitation, and job
training generally, which expertise and experience
shall be directly relevant to the issues to be
addressed by the Commission.</DELETED>
<DELETED> ``(B) Deaf individuals.--At least
</DELETED>\<DELETED>1/3</DELETED>\ <DELETED>of members
of the Commission shall be individuals who are
deaf.</DELETED>
<DELETED> ``(C) Chairperson.--The chairperson of the
Commission shall be elected by a simple majority of the
Commission.</DELETED>
<DELETED> ``(D) Assistant secretary.--One member of
the Commission shall be the Assistant Secretary for
Special Education and Rehabilitative
Services.</DELETED>
<DELETED> ``(3) Date.--Members of the Commission shall be
appointed not later than 90 days after the date of enactment of
the Education of the Deaf Amendments of 1998.</DELETED>
<DELETED>``SEC. 302. DUTIES, REPORT, AND DURATION OF THE
COMMISSION.</DELETED>
<DELETED> ``(a) Identification of Factors.--The Commission shall
identify, with respect to individuals who are deaf, factors that pose
barriers to or factors that facilitate--</DELETED>
<DELETED> ``(1) educational performance and progress of
students who are deaf in high school;</DELETED>
<DELETED> ``(2) educational performance and progress of
students who are deaf in postsecondary education;</DELETED>
<DELETED> ``(3) career exploration and selection;</DELETED>
<DELETED> ``(4) job performance and satisfaction in initial
postsecondary employment; and</DELETED>
<DELETED> ``(5) career advancement and
satisfaction.</DELETED>
<DELETED> ``(b) Report.--The Commission shall report to the
President and Congress such interim reports that the Commission deems
appropriate, and not later than 18 months after the date of enactment
of the Education of the Deaf Amendments of 1998, a final report
containing the findings of the Commission with respect to the factors
identified under subsection (a). The final report shall include
recommendations, including legislative proposals, that the Commission
deems advisable.</DELETED>
<DELETED> ``(c) Termination.--The Commission shall terminate 90 days
after the date on which the Commission submits the Commission's final
report described in subsection (b).</DELETED>
<DELETED>``SEC. 303. ADMINISTRATIVE PROVISIONS.</DELETED>
<DELETED> ``(a) Personnel.--</DELETED>
<DELETED> ``(1) In general.--The Commission may appoint such
personnel, including a staff director, as the Commission deems
necessary without regard to the provisions of title 5, United
States Code, except that the rate pay for any employee of the
Commission may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of title 5, United States
Code.</DELETED>
<DELETED> ``(2) Procurement of temporary and intermittent
services.--The Chairperson of the Commission may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code, at rates for individuals which do
not exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under section
5316 of such title.</DELETED>
<DELETED> ``(b) Hearings; Quorum.--</DELETED>
<DELETED> ``(1) Hearings.--The Commission or, with the
authorization of the Commission, any committee of the
Commission, may, for the purpose of carrying out the provisions
of this title, hold such hearings, sit, and act at such times
and such places in the United States as the Commission or such
committee may deem advisable.</DELETED>
<DELETED> ``(2) Quorum.--Seven members of the Commission
shall constitute a quorum, but 2 or more members may conduct
hearings.</DELETED>
<DELETED> ``(3) Hearings and public input.--In conducting
hearings and acquiring public input under this title, the
Commission may use various telecommunications media, including
teleconferencing, video-conferencing, the Internet, and other
media.</DELETED>
<DELETED> ``(c) Consultation; Information and Statistics; Agency
Cooperation.--</DELETED>
<DELETED> ``(1) In general.--In carrying out the
Commission's duties under this title and to the extent not
prohibited by Federal law, the Commission is authorized to
secure consultation, information, statistics, and cooperation
from Federal agencies, entities funded by the Federal
Government, and other entities the Commission deems
advisable.</DELETED>
<DELETED> ``(2) Special rule.--The Commission is authorized
to use, with their consent, the services, personnel,
information, and facilities of other Federal, State, local, and
private agencies with or without reimbursement.</DELETED>
<DELETED>``SEC. 304. COMPENSATION OF MEMBERS.</DELETED>
<DELETED> ``(a) United States Officer and Employee Members.--Members
of the Commission who are officers or full-time employees of the United
States shall serve without compensation in addition to that received
for their services as officers or employees of the United States; but
may be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United States Code, while away
from their homes or regular places of business in the performance of
services for the Commission.</DELETED>
<DELETED> ``(b) Public Members.--Members of the Commission who are
not officers or full-time employees of the United States shall receive
compensation at a rate that does not exceed the daily rate payable for
level V of the Executive Schedule under section 5316 of title 5, United
States Code, for each day (including travel time) during which such
members are engaged in the actual performance of the duties of the
Commission. In addition, such members may be allowed travel expenses,
including per diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter 57 of title 5,
United States Code, while away from their homes or regular places of
business in the performance of services for the Commission.</DELETED>
<DELETED>``SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.</DELETED>
<DELETED> ``There is authorized to be appropriated to carry out this
title such sums as may be necessary for each of the fiscal years 1999
and 2000.''.</DELETED>
<DELETED>PART G--REPEALS</DELETED>
<DELETED>SEC. 781. REPEALS.</DELETED>
<DELETED> (a) Higher Education Act of 1965.--The following
provisions of the Act (20 U.S.C. 1001 et seq.) are repealed:</DELETED>
<DELETED> (1) The heading for, sections 701 and 702 of, and
parts A, C, D, and E of, title VII (20 U.S.C. 1132a, 1132a-1,
1132b et seq., 1132d et seq., 1132f et seq., and 1132i et
seq.).</DELETED>
<DELETED> (2) Title VIII (20 U.S.C. 1133 et seq.).</DELETED>
<DELETED> (3) The heading for, section 901 of, and parts A,
B, E, F, and G of, title IX (20 U.S.C. 1134, 1134a et seq.,
1134d et seq., 1134r et seq., 20 U.S.C. 1134s et seq., and
1134u et seq.).</DELETED>
<DELETED> (4) The heading for, subpart 2 of part B of, and
parts C, D and E of, title X (20 U.S.C. 1135c et seq., 1135e et
seq., 1135f, and 1135g et seq.).</DELETED>
<DELETED> (5) The heading for, and part B of, title XI (20
U.S.C. 1137 et seq.).</DELETED>
<DELETED> (b) Higher Education Amendments of 1992.--The following
provisions of the Higher Education Amendments of 1992 (Public Law 102-
325; 106 Stat 448) are repealed:</DELETED>
<DELETED> (1) Parts E, F, and G of title XIII of the Higher
Education Amendments of 1992 (25 U.S.C. 3332 et seq., 3351 et
seq., 3371) are repealed.</DELETED>
<DELETED> (2) Title XIV.</DELETED>
<DELETED> (3) Title XV.</DELETED>
<DELETED>PART H--MISCELLANEOUS</DELETED>
<DELETED>SEC. 791. YEAR 2000 COMPUTER PROBLEM.</DELETED>
<DELETED> (a) Sense of Congress.--With the year 2000 fast
approaching, it is the sense of Congress that the Department of
Education should--</DELETED>
<DELETED> (1) assess immediately the extent of the risk to
the operations of the student financial aid system posed by the
year 2000 computer problem;</DELETED>
<DELETED> (2) give the highest priority to correcting all 2-
digit date-related problems in the Department's computer
systems to ensure that those systems continue to operate
effectively in the year 2000 and beyond; and</DELETED>
<DELETED> (3) develop contingency plans, with respect to the
year 2000 computer problem, for those computer systems that the
Department is unable to correct in time.</DELETED>
<DELETED> (b) Report Required.--Not later than March 1, 1999, the
Secretary of Education shall provide a report to the Committee on Labor
and Human Resources of the Senate and the Committee on Education and
the Workforce of the House of Representatives describing the compliance
status of all mission critical systems at the Department, and
contingency plans for those computer systems in the Department that the
Department will be unable to correct in time, with respect to the year
2000 computer problem.</DELETED>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Higher Education
Amendments of 1998''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
TITLE I--GENERAL PROVISIONS
Sec. 101. General provisions.
Sec. 102. Federal control of education prohibited.
Sec. 103. National Advisory Committee on Institutional Quality and
Integrity.
Sec. 104. Prior rights and obligations; recovery of payments.
Sec. 105. Technical and conforming amendments.
TITLE II--IMPROVING TEACHER QUALITY
Sec. 201. Improving teacher quality.
TITLE III--INSTITUTIONAL AID
Sec. 301. Transfers and redesignations.
Sec. 302. Findings.
Sec. 303. Strengthening institutions.
Sec. 304. Strengthening HBCU's.
Sec. 305. Endowment challenge grants.
Sec. 306. HBCU capital financing.
Sec. 307. Minority science and engineering improvement program.
Sec. 308. General provisions.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
Sec. 411. Repeals and redesignations.
Sec. 412. Federal Pell grants.
Sec. 413. TRIO programs.
Sec. 414. National early intervention scholarship and partnership
program.
Sec. 415. Federal supplemental educational opportunity grants.
Sec. 416. Leveraging educational assistance partnership program.
Sec. 417. HEP and CAMP.
Sec. 418. Robert C. Byrd honors scholarship program.
Sec. 419. Child care access means parents in school.
Part B--Federal Family Education Loan Program
Sec. 421. Advances for reserve funds.
Sec. 422. Federal Student Loan Reserve Fund.
Sec. 423. Agency Operating Fund.
Sec. 424. Applicable interest rates.
Sec. 425. Federal payments to reduce student interest costs.
Sec. 426. Voluntary flexible agreements with guaranty agencies.
Sec. 427. Federal PLUS loans.
Sec. 428. Federal consolidation loans.
Sec. 429. Requirements for disbursements of student loans.
Sec. 430. Default reduction program.
Sec. 431. Unsubsidized loans.
Sec. 432. Loan forgiveness for teachers.
Sec. 433. Loan forgiveness for child care providers.
Sec. 434. Common forms and formats.
Sec. 435. Student loan information by eligible lenders.
Sec. 436. Definitions.
Sec. 437. Delegation of functions.
Sec. 438. Special allowances.
Sec. 439. Study of market-based mechanisms for determining student loan
interest rates.
Part C--Federal Work-Study Programs
Sec. 441. Authorization of appropriations; community services.
Sec. 442. Grants for Federal work-study programs.
Sec. 443. Work colleges.
Part D--William D. Ford Federal Direct Loan Program
Sec. 451. Selection of institutions.
Sec. 452. Terms and conditions.
Sec. 453. Contracts.
Sec. 454. Funds for administrative expenses.
Sec. 455. Loan cancellation for teachers.
Part E--Federal Perkins Loans
Sec. 461. Authorization of appropriations.
Sec. 462. Allocation of funds.
Sec. 463. Agreements with institutions of higher education.
Sec. 464. Terms of loans.
Sec. 465. Distribution of assets from student loan funds.
Sec. 466. Perkins Loan Revolving Fund.
Part F--Need Analysis
Sec. 471. Cost of attendance.
Sec. 472. Family contribution for dependent students.
Sec. 473. Family contribution for independent students without
dependents other than a spouse.
Sec. 474. Regulations; updated tables and amounts.
Sec. 475. Refusal or adjustment of loan certifications.
Part G--General Provisions
Sec. 481. Master calendar.
Sec. 482. Forms and regulations.
Sec. 483. Student eligibility.
Sec. 484. Institutional refunds.
Sec. 485. Institutional and financial assistance information for
students.
Sec. 486. National student loan data bank system.
Sec. 487. Training in financial aid services.
Sec. 488. Program participation agreements.
Sec. 489. Regulatory relief and improvement.
Sec. 489A. Distance education demonstration programs.
Sec. 489B. Advisory Committee on Student Financial Assistance.
Sec. 489C. Regional meetings and negotiated rulemaking.
Part H--Program Integrity Triad
Sec. 491. State role and responsibilities.
Sec. 492. Accrediting agency recognition.
Sec. 493. Eligibility and certification procedures.
Sec. 494. Program review and data.
Part I--Administrative Provisions for Delivery of Student Financial
Assistance
Sec. 495. Performance-based organization for the delivery of Federal
student financial assistance.
TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 501. Repeals, transfers, and redesignations.
Sec. 502. Purpose.
Part A--Jacob K. Javits Fellowship Program
Sec. 511. Award of fellowships.
Part B--Graduate Assistance in Areas of National Need
Sec. 521. Graduate assistance in areas of national need.
Part C--Urban Community Service
Sec. 531. Urban community service.
Part D--Fund for the Improvement of Postsecondary Education
Sec. 541. Fund for the improvement of postsecondary education.
Part E--Higher Education Access for Students With Disabilities;
Hispanic-Serving Institutions; General Provisions
Sec. 551. Higher education access for students with disabilities;
Hispanic-serving institutions; general
provisions.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
Sec. 604. General provisions.
TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER ACTS
Part A--Indian Education Programs
Sec. 711. Tribally Controlled Community College Assistance Act of 1978.
Sec. 712. American Indian, Alaska Native, and Native Hawaiian culture
and art development.
Part B--Advanced Placement Incentive Program
Sec. 721. Advanced placement incentive program.
Part C--United States Institute of Peace
Sec. 731. Authorities of the United States Institute of Peace.
Part D--Community Scholarship Mobilization
Sec. 741. Short title.
Sec. 742. Findings.
Sec. 743. Definitions.
Sec. 744. Purpose, endowment grant authority.
Sec. 745. Grant agreement and requirements.
Sec. 746. Authorization of appropriations.
Part E--Grants to States for Workplace and Community Transition
Training for Incarcerated Youth Offenders
Sec. 751. Grants to States for workplace and community transition
training for incarcerated youth offenders.
Part F--Education of the Deaf
Sec. 761. Short title.
Sec. 762. Elementary and secondary education programs.
Sec. 763. Agreement with Gallaudet University.
Sec. 764. Agreement for the National Technical Institute for the Deaf.
Sec. 765. Definitions.
Sec. 766. Gifts.
Sec. 767. Reports.
Sec. 768. Monitoring, evaluation, and reporting.
Sec. 769. Investments.
Sec. 770. International students.
Sec. 771. Research priorities.
Sec. 772. Authorization of appropriations.
Sec. 773. Commission on Education of the Deaf.
Part G--Repeals
Sec. 781. Repeals.
Part H--Miscellaneous
Sec. 791. Year 2000 computer problem.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.).
TITLE I--GENERAL PROVISIONS
SEC. 101. GENERAL PROVISIONS.
(a) Repeal; Transfer and Redesignation.--The Act (20 U.S.C. 1001 et
seq.) is amended--
(1) by repealing title I (20 U.S.C. 1001 et seq.);
(2) by repealing sections 1203, 1206, 1211, and 1212 (20
U.S.C. 1143, 1145a, 1145e, and 1145f);
(3) by striking the heading for title XII (20 U.S.C. 1141
et seq.);
(4) by inserting before title III (20 U.S.C. 1051 et seq.)
the following:
``TITLE I--GENERAL PROVISIONS'';
(5) by transferring sections 1201, 1202, 1204 (as
renumbered by Public Law 90-575), 1204 (as added by Public Law
96-374), 1205, 1207, 1208, 1209, 1210, and 1213 (20 U.S.C.
1141, 1142, 1144, 1144a, 1145, 1145b, 1145c, 1145d, 1145d-1,
and 1145g) to follow the heading for title I (as inserted by
paragraph (4)); and
(6) by redesignating sections 1201, 1202, 1204 (as
renumbered by Public Law 90-575), 1204 (as added by Public Law
96-374), 1205, 1207, 1208, 1209, 1210, and 1213 as sections
101, 102, 103, 104, 105, 106, 107, 108, 109, and 110,
respectively.
SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.
Section 103 (as redesignated by section 101(a)(6)) (20 U.S.C. 1144)
is amended by striking ``(b)''.
SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
Section 105 (as redesignated by section 101(a)(6)) (20 U.S.C. 1145)
is amended--
(1) by striking the last sentence of subsection (a);
(2) by redesignating subsections (c) through (f) as
subsections (d) through (g), respectively;
(3) by inserting after subsection (b) the following:
``(c) Public Notice.--The Secretary shall--
``(1) annually publish in the Federal Register a list
containing the name of each member of the Committee and the
date of the expiration of the term of office of the member; and
``(2) publicly solicit nominations for each vacant position
or expiring term of office on the Committee.'';
(4) in subsection (d) (as redesignated by paragraph (2))--
(A) by striking paragraph (6); and
(B) by redesignating paragraphs (7) and (8) as
paragraphs (6) and (7), respectively; and
(5) in subsection (g) (as redesignated by paragraph (2)),
by striking ``1998'' and inserting ``2004''.
SEC. 104. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF PAYMENTS.
Title I (20 U.S.C. 1001 et seq.) is amended by adding after section
110 (as redesignated by section 101(a)(6)) the following:
``SEC. 111. PRIOR RIGHTS AND OBLIGATIONS.
``(a) Authorization of Appropriations.--
``(1) Pre-1987 parts c and d of title vii.--There are
authorized to be appropriated such sums as may be necessary for
fiscal year 1999 and for each of the 4 succeeding fiscal years
to pay obligations incurred prior to 1987 under parts C and D
of title VII, as such parts were in effect before the effective
date of the Higher Education Amendments of 1992.
``(2) Post-1992 and pre-1998 part c of title vii.--There
are authorized to be appropriated such sums as may be necessary
for fiscal year 1999 and for each of the 4 succeeding fiscal
years to pay obligations incurred prior to the date of
enactment of the Higher Education Amendments of 1998 under part
C of title VII, as such part was in effect during the period--
``(A) after the effective date of the Higher
Education Amendments of 1992; and
``(B) prior to the date of enactment of the Higher
Education Amendments of 1998.
``(b) Legal Responsibilities.--
``(1) Pre-1987 title vii.--All entities with continuing
obligations incurred under parts A, B, C, and D of title VII,
as such parts were in effect before the effective date of the
Higher Education Amendments of 1992, shall be subject to the
requirements of such part as in effect before the effective
date of the Higher Education Amendments of 1992.
``(2) Post-1992 and pre-1998 part c of title vii.--All
entities with continuing obligations incurred under part C of
title VII, as such part was in effect during the period--
``(A) after the effective date of the Higher
Education Amendments of 1992; and
``(B) prior to the date of enactment of the Higher
Education Amendments of 1998,
shall be subject to the requirements of such part as such part
was in effect during such period.
``SEC. 112. RECOVERY OF PAYMENTS.
``(a) Public Benefit.--Congress declares that, if a facility
constructed with the aid of a grant under part A of title VII as such
part A was in effect prior to the date of enactment of the Higher
Education Amendments of 1998, or part B of such title as such part B
was in effect prior to the date of enactment of the Higher Education
Amendments of 1992, is used as an academic facility for 20 years
following completion of such construction, the public benefit accruing
to the United States will equal in value the amount of the grant. The
period of 20 years after completion of such construction shall
therefore be deemed to be the period of Federal interest in such
facility for the purposes of such title as so in effect.
``(b) Recovery Upon Cessation of Public Benefit.--If, within 20
years after completion of construction of an academic facility which
has been constructed, in part with a grant under part A of title VII as
such part A was in effect prior to the date of enactment of the Higher
Education Amendments of 1998, or part B of title VII as such part B was
in effect prior to the date of enactment of the Higher Education
Amendments of 1992--
``(1) the applicant under such parts as so in effect (or
the applicant's successor in title or possession) ceases or
fails to be a public or nonprofit institution, or
``(2) the facility ceases to be used as an academic
facility, or the facility is used as a facility excluded from
the term `academic facility' (as such term was defined under
title VII, as so in effect), unless the Secretary determines
that there is good cause for releasing the institution from its
obligation,
the United States shall be entitled to recover from such applicant (or
successor) an amount which bears to the value of the facility at that
time (or so much thereof as constituted an approved project or
projects) the same ratio as the amount of Federal grant bore to the
cost of the facility financed with the aid of such grant. The value
shall be determined by agreement of the parties or by action brought in
the United States district court for the district in which such
facility is situated.
``(c) Prohibition on Use for Religion.--Notwithstanding the
provisions of subsections (a) and (b), no project assisted with funds
under title VII (as in effect prior to the date of enactment of the
Higher Education Amendments of 1998) shall ever be used for religious
worship or a sectarian activity or for a school or department of
divinity.''.
SEC. 105. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Conforming Amendments Correcting References to Section 1201.--
(1) Agriculture.--
(A) Student internship programs.--Section 922 of
the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 2279c) is amended--
(i) in subsection (a)(1)(B)--
(I) by striking ``1201'' and
inserting ``101''; and
(II) by striking ``(20 U.S.C.
1141)''; and
(ii) in subsection (b)(1)--
(I) by striking ``1201'' and
inserting ``101''; and
(II) by striking ``(20 U.S.C.
1141)''.
(B) Agricultural sciences education.--Section
1417(h)(1)(A) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(h)(1)(A)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(2) Armed forces.--
(A) Science and mathematics education improvement
program.--Section 2193(c)(1) of title 10, United States
Code, is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(B) Support of science, mathematics, and
engineering education.--Section 2199(2) of title 10,
United States Code, is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(C) Allowable costs under defense contracts.--
Section 841(c)(2) of the National Defense Authorization
Act for fiscal year 1994 (10 U.S.C. 2324 note) is
amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(D) Environmental restoration institutional grants
for training dislocated defense workers and young
adults.--Section 1333(i)(3) of the National Defense
Authorization Act for fiscal year 1994 (10 U.S.C. 2701
note) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(E) Environmental education opportunities
program.--Section 1334(k)(3) of the National Defense
Authorization Act for fiscal year 1994 (10 U.S.C. 2701
note) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(F) Environmental scholarship and fellowship
programs.--Section 4451(b)(1) of the National Defense
Authorization Act for 1993 (10 U.S.C. 2701 note) is
amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(3) Application of antitrust laws to award of need-based
educational aid.--Section 568(c)(3) of the Improving America's
Schools Act of 1994 (15 U.S.C. 1 note) is amended--
(A) by striking ``1201(a)'' and inserting
``101(a)''; and
(B) by striking ``(20 U.S.C. 1141(a))''.
(4) Restrictions on former officers, employees, and elected
officials of the executive and legislative branches.--Section
207(j)(2)(B) of title 18, United States Code, is amended by
striking ``1201(a)'' and inserting ``101(a)''.
(5) Education.--
(A) Higher education amendments of 1992.--Section
1(c) of the Higher Education Amendments of 1992 (20
U.S.C. 1001 note) is amended by striking ``1201'' and
inserting ``101''.
(B) Part f definitions.--Section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088) is amended--
(i) in subsection (a)--
(I) in the matter preceding
paragraph (1)(A), by striking
``1201(a)'' and inserting ``101(a)'';
(II) in paragraph (1)(C), by
striking ``1201(a)'' and inserting
``101(a)'';
(III) in the first sentence of the
matter preceding clause (i) of
paragraph (2)(A), by striking
``1201(a)'' and inserting ``101(a)'';
and
(IV) in the matter following
paragraph (2)(B)(ii), by striking
``1201(a)'' and inserting ``101(a)'';
(ii) in subsection (b)--
(I) in the first sentence--
(aa) in paragraph (2), by
striking ``1201(a)'' and
inserting ``101(a)''; and
(bb) in paragraph (3), by
striking ``1201(a)'' and
inserting ``101(a)''; and
(II) in the second sentence, by
striking ``1201(a)'' and inserting
``101(a)''; and
(iii) in subsection (c)--
(I) in the first sentence, by
striking ``1201(a)'' and inserting
``101(a)''; and
(II) in the second sentence, by
striking ``1201(a)'' and inserting
``101(a)''.
(C) Treatment of branches.--Section 498(j)(2) of
the Higher Education Act of 1965 (20 U.S.C.
1099c(j)(2)) is amended by striking ``1201(a)(2)'' and
inserting ``101(a)(2)''.
(D) International education programs.--Section
631(a)(8) of the Higher Education Act of 1965 (20
U.S.C. 1132(a)(8)) is amended by striking ``1201(a)''
each place it appears and inserting ``101(a)''.
(E) Dwight d. eisenhower leadership program.--
Section 1081(d) of the Higher Education Act of 1965 (20
U.S.C. 1135f(d)) is amended by striking ``1201'' and
inserting ``101''.
(F) Disclosure requirements.--Section
429(d)(2)(B)(ii) of the General Education Provisions
Act (20 U.S.C. 1228c(d)(2)(B)(ii)) is amended by
striking ``1201(a)'' and inserting ``101(a)''.
(G) Harry s. truman scholarships.--Section 3(4) of
the Harry S. Truman Memorial Scholarship Act (20 U.S.C.
2002(4)) is amended by striking ``1201(a)'' and
inserting ``101(a)''.
(H) Tech-prep education.--Section 347(2)(A) of the
Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2394e(2)(A)) is amended by
striking ``1201(a)'' and inserting ``101(a)''.
(I) Education for economic security.--Section 3(6)
of the Education for Economic Security Act (20 U.S.C.
3902(6)) is amended by striking ``1201(a)'' and
inserting ``101(a)''.
(J) James madison memorial fellowships.--Section
815 of the James Madison Memorial Fellowship Act (20
U.S.C. 4514) is amended--
(i) in paragraph (3), by striking
``1201(a)'' and inserting ``101(a)''; and
(ii) in paragraph (4), by striking
``1201(d) of the Higher Education Act of 1965''
and inserting ``14101 of the Elementary and
Secondary Education Act of 1965''.
(K) Barry goldwater scholarships.--Section 1403(4)
of the Barry Goldwater Scholarship and Excellence in
Education Act (20 U.S.C. 4702(4)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(L) Morris k. udall scholarships.--Section 4(6) of
the Morris K. Udall Scholarship and Excellence in
National Environmental and Native American Public
Policy Act of 1992 (20 U.S.C. 5602(6)) is amended by
striking ``1201(a)'' and inserting ``101(a)''.
(M) Bilingual education, and language enhancement
and acquisition.--Section 7501(4) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7601(4)) is
amended by striking ``1201(a)'' and inserting
``101(a)''.
(N) General definitions.--Section 14101(17) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801(17)) is amended by striking ``1201(a)'' and
inserting ``101(a)''.
(O) National education statistics.--Section
402(c)(3) of the National Education Statistics Act of
1994 (20 U.S.C. 9001(c)(3)) is amended by striking
``1201(a)'' and inserting ``101(a)''.
(6) Foreign relations.--
(A) Environment and sustainable development
exchange program.--Section 240(d) of the Foreign
Relations Authorization Act, Fiscal Years 1994 and 1995
(22 U.S.C. 2452 note) is amended by striking
``1201(a)'' and inserting ``101(a)''.
(B) Samantha smith memorial exchange program.--
Section 112(a)(8) of the Mutual Educational and
Cultural Exchange Act of 1961 (22 U.S.C. 2460(a)(8)) is
amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(C) Soviet-eastern european training.--Section
803(1) of the Soviet-Eastern European Research and
Training Act of 1983 (22 U.S.C. 4502(1)) is amended by
striking ``1201(a)'' and inserting ``101(a)''.
(D) Developing country scholarships.--Section
603(d) of the Foreign Relations Authorization Act,
Fiscal Years 1986 and 1987 (22 U.S.C. 4703(d)) is
amended by striking ``1201(a)'' and inserting
``101(a)''.
(7) Indians.--
(A) Snyder act.--The last paragraph of section 410
of the Act entitled ``An Act authorizing appropriations
and expenditures for the administration of Indian
Affairs, and for other purposes'', approved November 2,
1921 (25 U.S.C. 13) (commonly known as the Snyder Act)
is amended by striking ``1201'' and inserting ``101''.
(B) Tribally controlled community college
assistance.--Section 2(a)(5) of the Tribally Controlled
Community College Assistance Act (25 U.S.C. 1801(a)(5))
is amended by striking ``1201(a)'' and inserting
``101(a)''.
(C) Construction of new facilities.--Section
113(b)(2) of the Tribally Controlled Community College
Assistance Act (25 U.S.C. 1813(b)(2)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(D) American indian teacher training.--Section
1371(a)(1)(B) of the Higher Education Amendments of
1992 (25 U.S.C. 3371(a)(1)(B)) is amended by striking
``1201(a)'' and inserting ``101(a)''.
(8) Labor.--
(A) Rehabilitation definitions.--Section 7(32) of
the Rehabilitation Act of 1973 (29 U.S.C. 706(32)) is
amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(B) State plans.--Section 101(a)(7)(A)(iv)(II) of
the Rehabilitation Act of 1973 (29 U.S.C.
721(a)(7)(A)(iv)(II)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(C) JTPA definitions.--Section 4(12) of the Job
Training Partnership Act (29 U.S.C. 1503(12)) is
amended by striking ``1201(a)'' and inserting
``101(a)''.
(D) Tuition charges.--Section 141(d)(3)(B) of the
Job Training Partnership Act (29 U.S.C. 1551(d)(3)(B))
is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(9) Surface mining control.--Section 701(32) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1291(32))
is amended by striking ``1201(a)'' and inserting ``101(a)''.
(10) Pollution prevention.--Section 112(a)(1) of the
Federal Water Pollution Control Act (33 U.S.C. 1262(a)(1)) is
amended by striking ``1201'' and inserting ``101''.
(11) Postal service.--Section 3626(b)(3) of title 39,
United States Code, is amended--
(A) by striking ``1201(a)'' and inserting
``101(a)''; and
(B) by striking ``(20 U.S.C. 1141(a))''.
(12) Public health and welfare.--
(A) Scientific and technical education.--Section
3(g) of the Scientific and Advanced-Technology Act of
1992 (42 U.S.C. 1862i(g)) is amended--
(i) in paragraph (2)--
(I) by striking ``1201(a)'' and
inserting ``101(a)''; and
(II) by striking ``(20 U.S.C.
1141(a))''; and
(ii) in paragraph (3)--
(I) by striking ``1201(a)'' and
inserting ``101(a)''; and
(II) by striking ``(20 U.S.C.
1141(a))''.
(B) Older americans.--Section 102(32) of the Older
Americans Act of 1965 (42 U.S.C. 3002(32)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(C) Justice system improvement.--Section 901(17) of
the Omnibus Crime Control and Safe Streets Act of 1968
(42 U.S.C. 3791(17)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(D) Energy technology commercialization services
program.--Section 362(f)(5)(A) of the Energy Policy and
Conservation Act (42 U.S.C. 6322(f)(5)(A)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(E) Environmental restoration and waste
management.--Section 3132(b)(1) of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (42
U.S.C. 7274e(b)(1)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(F) Head start.--Section 649(c)(3) of the Head
Start Act (42 U.S.C. 9844(c)(3)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(G) State dependent care development grants.--
Section 670G(5) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9877(5)) is amended by
striking ``1201(a)'' and inserting ``101(a)''.
(H) Instructional activities for low-income
youth.--The matter preceding subparagraph (A) of
section 682(b)(1) of the Community Services Block Grant
Act (42 U.S.C. 9910c(b)(1)) is amended by striking
``1201(a)'' and inserting ``101(a)''.
(I) Drug abuse education.--Section 3601(7) of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7)) is
amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(J) National and community service.--Section
101(13) of the National and Community Service Act of
1990 (42 U.S.C. 12511(13)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(K) Civilian community corps.--Section 166(6) of
the National and Community Service Act of 1990 (42
U.S.C. 12626(6)) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(L) Community schools youth services and
supervision grant program.--The definition of public
school in section 30401(b) of the Community Schools
Youth Services and Supervision Grant Program Act of
1994 (42 U.S.C. 13791(b)) is amended--
(i) by striking ``1201'' each place it
appears and inserting ``101''; and
(ii) by striking ``(20 U.S.C. 1141(i))''.
(M) Police corps.--The definition of institution of
higher education in section 200103 of the Police Corps
Act (42 U.S.C. 14092) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(N) Law enforcement scholarship program.--The
definition of institution of higher education in
section 200202 of the Law Enforcement Scholarship and
Recruitment Act (42 U.S.C. 14111) is amended--
(i) by striking ``1201(a)'' and inserting
``101(a)''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(13) Telecommunications.--Section 223(h)(4) of the
Telecommunications Act of 1934 (47 U.S.C. 223(h)(4)) is
amended--
(A) by striking ``1201'' and inserting ``101''; and
(B) by striking ``(20 U.S.C. 1141)''.
(14) War and national defense.--Section 808(3) of the David
L. Boren National Security Education Act of 1991 (50 U.S.C.
1908(3)) is amended--
(A) by striking ``1201(a)'' and inserting
``101(a)''; and
(B) by striking ``(20 U.S.C. 1141(a))''.
(b) Cross References.--The Act (20 U.S.C. 1001 et seq.) is
amended--
(1) in section 402A(c)(2) (20 U.S.C. 1070a-11(c)(2)), by
striking ``1210'' and inserting ``110'';
(2) in section 481 (20 U.S.C. 1088)--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) in the matter preceding
subparagraph (A), by striking
``1201(a)'' and inserting ``101(a)'';
and
(II) in subparagraph (C), by
striking ``1201(a)'' and inserting
``101(a)''; and
(ii) in paragraph (2)--
(I) in the matter preceding clause
(i) of subparagraph (A), by striking
``1201(a)'' and inserting ``101(a)'';
and
(II) in the matter following clause
(ii) of subparagraph (B), by striking
``1201(a)'' and inserting ``101(a)'';
(B) in subsection (b), by striking ``1201(a)'' each
place the term appears and inserting ``101(a)''; and
(C) in subsection (c), by striking ``1201(a)'' each
place the term appears and inserting ``101(a)'';
(3) in section 485(f)(1)(I) (20 U.S.C. 1092(f)(1)(I)), by
striking ``1213'' and inserting ``111'';
(4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)), by
striking ``1201(a)(2)'' and inserting ``101(a)(2)'';
(5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)), by
striking ``1201(a)'' and inserting ``101(a)'';
(6) in section 631(a)(8) (20 U.S.C. 1132(a)(8))--
(A) by striking ``section 1201(a)'' each place the
term appears and inserting ``section 101(a)''; and
(B) by striking ``of 1201(a)'' and inserting ``of
section 101(a)''; and
(7) in section 1081(d) (20 U.S.C. 1135f(d)), by striking
``1201'' and inserting ``101(a)''.
TITLE II--IMPROVING TEACHER QUALITY
SEC. 201. IMPROVING TEACHER QUALITY.
The Act (20 U.S.C. 1001) is amended by inserting after section 112
(as added by section 104) the following:
``TITLE II--IMPROVING TEACHER QUALITY
``SEC. 201. PURPOSES.
``The purpose of this title is to--
``(1) improve student achievement;
``(2) improve the quality of the current and future
teaching force by improving the preparation of prospective
teachers and enhancing professional development activities; and
``(3) hold institutions of higher education accountable for
preparing teachers who have the necessary teaching skills and
are highly competent in the academic content areas in which the
teachers plan to teach, including training in the effective
uses of technologies in the classroom.
``PART A--TEACHER QUALITY
``Subpart 1--Teacher Quality Enhancement Grants
``SEC. 211. GRANTS AUTHORIZED.
``(a) In General.--The Secretary is authorized to award grants to
States to enable the States to carry out the activities described in
section 212. Each grant may be awarded for a period of not more than 5
years.
``(b) State Designation.--
``(1) In general.--A State desiring a grant under this
subpart shall, consistent with State law, designate the chief
individual or entity in the State responsible for the State
supervision of education, to administer the activities assisted
under this subpart.
``(2) Consultation.--The individual or entity designated
under paragraph (1) shall consult with the Governor, State
board of education, or State educational agency, as
appropriate.
``(3) Construction.--Nothing in this subpart shall be
construed to negate or supersede the legal authority under
State law of any State agency, State entity, or State public
official over programs that are under the jurisdiction of the
agency, entity, or official.
``(c) Matching Requirement.--Each State receiving a grant under
this subpart shall provide, from non-Federal sources, an amount equal
to \1/2\ of the amount of the grant, in cash or in kind, to carry out
the activities supported through the grant.
``SEC. 212. USE OF FUNDS.
``A State that receives a grant under this subpart shall use the
grant funds to reform teacher preparation requirements, and to ensure
that current and future teachers possess the necessary teaching skills
and academic content knowledge in the subject areas in which the
teachers are assigned to teach, by carrying out 1 or more of the
following activities:
``(1) Reforms.--Implementing reforms that hold institutions
of higher education with teacher preparation programs
accountable for preparing teachers who are highly competent in
the academic content areas in which the teachers plan to teach,
which may include the use of rigorous subject matter competency
tests and the requirement that a teacher have an academic major
in the subject area, or related discipline, in which the
teacher plans to teach.
``(2) Certification or licensure requirements.--Reforming
teacher certification or licensure requirements to ensure that
new teachers have the necessary teaching skills and academic
content knowledge in the subject areas in which teachers are
assigned to teach.
``(3) Alternatives to traditional preparation for
teaching.--Providing prospective teachers alternatives to
traditional preparation for teaching through programs at
colleges of arts and sciences or at nonprofit educational
organizations.
``(4) Alternative routes.--Funding programs that establish,
expand, or improve alternative routes to State certification
for highly qualified individuals from other occupations and
recent college graduates with records of academic distinction,
including support during the initial teaching experience.
``(5) Recruitment; pay; removal.--Developing and
implementing effective mechanisms to ensure that schools are
able to effectively recruit highly qualified teachers, to
financially reward those teachers and principals whose students
have made significant progress toward high academic
performance, such as through performance-based compensation
systems and access to ongoing professional development
opportunities for teachers and administrators, and to remove
teachers who are not qualified.
``(6) Innovative efforts.--Development and implementation
of innovative efforts aimed at reducing the shortage of highly
qualified teachers in high poverty urban and rural areas, that
may include the recruitment of highly qualified individuals
from other occupations through alternative certification
programs.
``(7) Social promotion.--Development and implementation of
efforts to address the problem of social promotion and to
prepare teachers to effectively address the issues raised by
ending the practice of social promotion.
``SEC. 213. COMPETITIVE AWARDS.
``(a) Annual Awards; Competitive Basis.--The Secretary shall award
grants under this subpart annually and on a competitive basis.
``(b) Peer Review Panel.--The Secretary shall provide the
applications submitted by States under section 214 to a peer review
panel for evaluation. With respect to each application, the peer review
panel shall initially recommend the application for funding or for
disapproval.
``(c) Priority.--In recommending applications for funding to the
Secretary, the panel shall give priority to applications from States
that describe activities that--
``(1) include innovative reforms to hold institutions of
higher education with teacher preparation programs accountable
for preparing teachers who are highly competent in the academic
content areas in which the teachers plan to teach; and
``(2) involve the development of innovative efforts aimed
at reducing the shortage of highly qualified teachers in high
poverty urban and rural areas.
``SEC. 214. APPLICATIONS.
``(a) In General.--Each State desiring a grant under this subpart
shall submit an application to the Secretary at such time, in such
manner and accompanied by such information as the Secretary may
require.
``(b) Content of Applications.--Such application shall include a
description of how the State intends to use funds provided under this
subpart.
``Subpart 2--Teacher Training Partnerships Grants
``SEC. 221. GRANTS AUTHORIZED.
``(a) In General.--The Secretary is authorized to award grants to
teacher training partnerships to enable the partnerships to carry out
the activities described in section 222. Each grant may be awarded for
a period of not more than 5 years.
``(b) Definitions.--In this part:
``(1) Teacher training partnerships.--
``(A) In general.--The term `teacher training
partnership' means a partnership that--
``(i) shall include a school of arts and
sciences, a school or program of education, a
local educational agency, and a kindergarten
through grade 12 school;
``(ii) shall include a high need local
educational agency or kindergarten through
grade 12 school; and
``(iii) may include a State educational
agency, a pre-kindergarten program, a nonprofit
educational organization, a business, or a
teacher organization.
``(B) High need.--A local educational agency or
kindergarten through grade 12 school shall be
considered high need for purposes of subparagraph
(A)(ii) if the agency or school serves an area within a
State in which there is--
``(i) a large number of individuals from
families with incomes below the poverty line;
``(ii) a high percentage of teachers not
teaching in the content area in which the
teachers were trained to teach; or
``(iii) a high teacher turnover rate.
``(2) Kindergarten through grade 12 school.--The term
`kindergarten through grade 12 school' means a school having
any one of the grades kindergarten through grade 12.
``(c) Priority.--In awarding grants under this subpart the
Secretary shall give priority to partnerships that involve businesses.
``(d) Consideration.--In awarding grants under this subpart the
Secretary shall take into consideration--
``(1) providing an equitable geographic distribution of the
grants throughout the United States; and
``(2) the proposed project's potential for creating
improvement and positive change.
``(e) Matching Funds.--Each partnership receiving a grant under
this subpart shall provide, from sources other than this subpart, an
amount equal to 25 percent of the grant in the first year, 35 percent
in the second such year, and 50 percent in each succeeding such year,
of the amount of the grant, in cash or in kind, to carry out the
activities supported by the grant.
``(f) One-Time Award.--A partnership may receive a grant under this
section only once.
``SEC. 222. USE OF FUNDS.
``(a) In General.--Grant funds under this part shall be used to--
``(1) coordinate with the activities of the Governor, State
board of education, and State educational agency, as
appropriate;
``(2) provide sustained and high quality preservice
clinical experiences including the mentoring of prospective
teachers by veteran teachers;
``(3) work with a school of arts and sciences to provide
increased academic study in a proposed teaching specialty area,
through activities such as--
``(A) restructuring curriculum;
``(B) changing core course requirements;
``(C) increasing liberal arts focus;
``(D) providing preparation for board
certification; and
``(E) assessing and improving alternative
certification, including mentoring and induction
support;
``(4) substantially increasing interaction and 2-way
collaboration between--
``(A) faculty at institutions of higher education;
and
``(B) new and experienced teachers, principals, and
other administrators at elementary schools or secondary
schools;
``(5) prepare teachers to use technology effectively in the
classroom;
``(6) integrate reliable research-based teaching methods
into the curriculum;
``(7) broadly disseminate information on effective
practices used by the partnership; and
``(8) provide support, including preparation time, for
interaction between faculty at an institution of higher
education and classroom teachers.
``(b) Special Rule.--No individual member of a partnership shall
retain more than 50 percent of the funds made available to the
partnership under this subpart.
``SEC. 223. APPLICATIONS.
``Each teacher training partnership desiring a grant under this
subpart shall submit an application to the Secretary at such time, in
such manner, and accompanied by such information as the Secretary may
require. Each such application shall--
``(1) describe the composition of the partnership and the
involvement of each partner in the development of the
application;
``(2) contain a needs assessment that includes an analysis
of the needs of all the partners with respect to teaching and
learning;
``(3) contain a resource assessment that includes--
``(A) an analysis of resources available to the
partnership;
``(B) a description of the intended use of the
grant funds;
``(C) a description of how the partnership will
coordinate with other teacher training or professional
development programs, including Federal, State, local,
private, and other programs;
``(D) a description of how the activities assisted
under this subpart are consistent with educational
reform activities that promote student achievement; and
``(E) a description of the commitment of the
resources of the partnership to the activities assisted
under this subpart, including financial support,
faculty participation, and time commitments;
``(4) describe how the partnership will include the
participation of the schools, colleges, or departments of arts
and sciences within an institution of higher education to
ensure the integration of teaching techniques and content in
teaching preparation;
``(5) describe how the partnership will restructure and
improve teaching, teacher training, and development programs,
and how such systemic changes will contribute to increased
student achievement;
``(6) describe how the partnership will prepare teachers to
work with diverse student populations, including individuals
with disabilities and limited English proficient individuals;
``(7) describe how the partnership will prepare teachers to
use technology;
``(8) contain a dissemination plan regarding knowledge and
information with respect to effective teaching practices, and a
description of how such knowledge and information will be
implemented in elementary schools or secondary schools as well
as institutions of higher education;
``(9) describe the commitment of the partnership to
continue the activities assisted under this subpart without
grant funds provided under this subpart; and
``(10) describe how the partnership will involve and
include parents in the reform process.
``Subpart 3--General Provisions
``SEC. 231. ACCOUNTABILITY AND EVALUATION.
``(a) Teacher Quality Enhancement Grants.--
``(1) Accountability report.--A State that receives a grant
under subpart 1 shall submit an annual accountability report to
the Secretary, the Committee on Labor and Human Resources of
the Senate, and the Committee on Education and the Workforce of
the House of Representatives. Such report shall include a
description of the degree to which the State, in using funds
provided under subpart 1, has made substantial progress in
meeting the following goals:
``(A) Student achievement.--Increasing student
achievement for all students, as measured by increased
graduation rates, decreased dropout rates, or higher
scores on local, State or other assessments.
``(B) Raising standards.--Raising the State
academic standards required to enter the teaching
profession, including, where appropriate, incentives to
incorporate the requirement of an academic major in the
subject, or related discipline, in which the teacher
plans to teach.
``(C) Initial certification or licensure.--
Increasing success in the passage rate for initial
State teacher certification or licensure, or increasing
numbers of highly qualified individuals being certified
or licensed as teachers through alternative programs.
``(D) Core academic subjects.--(i) Increasing the
percentage of secondary school classes taught in core
academic subject areas by teachers--
``(I) with academic majors in those areas
or in a related field;
``(II) who can demonstrate a high level of
competence through rigorous academic subject
area tests; or
``(III) who can demonstrate high levels of
competence through experience in relevant
content areas.
``(ii) Increasing the percentage of elementary
school classes taught by teachers--
``(I) with academic majors in the arts and
sciences; or
``(II) who can demonstrate high levels of
competence through experience in relevant
content areas.
``(E) Decreasing shortages for professional
development.--Decreasing shortages of qualified
teachers in poor urban and rural areas.
``(F) Increasing opportunities.--Increasing
opportunities for enhanced and ongoing professional
development that improves the academic content
knowledge of teachers in the subject areas in which the
teachers are certified to teach or in which the
teachers are working toward certification to teach.
``(G) Technology integration.--Increasing the
number of teachers prepared to integrate technology in
the classroom.
``(2) Teacher qualifications provided to parent upon
request.--Any local educational agency that benefits from the
activities assisted under subpart 1 shall make available, upon
request and in an understandable and uniform format, to any
parent of a student attending any school served by the local
educational agency, information regarding the qualifications of
the student's classroom teacher with regard to the subject
matter in which the teacher provides instruction. The local
educational agency shall inform parents that the parents are
entitled to receive the information upon request.
``(b) Teacher Training Partnership Evaluation Plan.--Each teacher
training partnership receiving a grant under subpart 2 shall establish
an evaluation plan that includes strong performance objectives
established in negotiation with the Secretary at the time of the grant
award. The plan shall include objectives and measures for--
``(1) increased student achievement for all students as
measured by increased graduation rates, decreased dropout
rates, or higher scores on local, State, or other assessments
for a year compared to student achievement as determined by the
rates or scores, as the case may be, for the year prior to the
year for which a grant under this part is received;
``(2) increased teacher retention in the first 3 years of a
teacher's career;
``(3) increased success in the passage rate for initial
State certification or licensure of teachers;
``(4) increased percentages of secondary school classes
taught in core academic subject areas by teachers--
``(A) with academic majors in those areas or in a
related field;
``(B) who can demonstrate a high level of
competence through rigorous academic subject area
tests; and
``(C) increasing the percentage of elementary
school classes taught by teachers with academic majors
in the arts and sciences;
``(5) increased integration of technology in teacher
preparation and in classroom instruction;
``(6) restructuring or change of methodology courses to
reflect best practices learned from elementary schools,
secondary schools or other entities;
``(7) increased dissemination of information about
effective teaching strategies and practices; and
``(8) other effects of increased integration among members
of the partnership.
``SEC. 232. REVOCATION OF GRANT.
``Each State or teacher training partnership receiving a grant
under this part shall report annually on progress toward meeting the
purposes of this part, and the goals, objectives and measures described
in section 231. If the Secretary, after consultation with the peer
review panel described in section 213(b) determines that the State or
partnership is not making substantial progress in meeting the purposes,
goals, objectives and measures, as appropriate, by the end of the
second year of the grant, the grant shall not be continued for the
third year of the grant.
``SEC. 233. EVALUATION AND DISSEMINATION.
``The Secretary shall evaluate the activities funded under this
part and report the Secretary's findings to the Committee on Labor and
Human Resources of the Senate and the Committee on Education and the
Workforce of the House of Representatives. The Secretary shall broadly
disseminate successful practices developed by the States and teacher
training partnerships under this part, and shall broadly disseminate
information regarding such practices so developed that were found to be
ineffective.
``SEC. 234. INTERNATIONAL STUDY AND REPORT.
``(a) Study.--The Secretary shall conduct a study through the
National Center for Education Statistics regarding the ways teachers
are trained and the extent to which teachers in the United States and
other comparable countries are teaching in areas other than the
teachers' field of study or expertise. The study will examine specific
fields and will outline the nature and extent of the problem of out-of-
field teaching in the United States and in other countries that are
considered comparable to the United States. The study shall include, at
a minimum, all the countries that participated in the Third
International Mathematics and Science Study (TIMSS).
``(b) Report.--The Secretary shall report to Congress regarding the
results of the study described in subsection (a).
``SEC. 235. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$300,000,000 for fiscal year 1999 and such sums as necessary for each
of the 4 succeeding fiscal years, of which--
``(1) 50 percent shall be available for each fiscal year to
carry out subpart 1; and
``(2) 50 percent shall be available for each fiscal year to
carry out subpart 2.
``PART B--RECRUITING NEW TEACHERS FOR UNDERSERVED AREAS
``SEC. 251. STATEMENT OF PURPOSE.
``It is the purpose of this part to--
``(1) provide scholarships and, as necessary, support
services for students with high potential to become effective
teachers, particularly minority students;
``(2) increase the quality and number of new teachers
nationally; and
``(3) increase the ability of schools in underserved areas
to recruit a qualified teaching staff.
``SEC. 252. DEFINITIONS.
``In this part--
``(1) Eligible partnership.--
``(A) In general.--The term `eligible partnership'
means a partnership consisting of--
``(i) an institution of higher education
that awards baccalaureate degrees and prepares
teachers for their initial entry into the
teaching profession; and
``(ii) one or more local educational
agencies that serve underserved areas.
``(B) Additional partners.--Such a partnership may
also include--
``(i) 2-year institutions of higher
education that operate teacher preparation
programs and maintain articulation agreements,
with the institutions of higher education that
award baccalaureate degrees for the transfer of
credits in teacher preparation;
``(ii) State agencies that have
responsibility for policies related to teacher
preparation and teacher certification or
licensure; and
``(iii) other public and private, nonprofit
agencies and organizations that serve, or are
located in, communities served by the local
educational agencies in the partnership, and
that have an interest in teacher recruitment,
preparation, and induction.
``(2) Support services.--The term `support services'
means--
``(A) academic advice and counseling;
``(B) tutorial services;
``(C) mentoring; and
``(D) child care and transportation, if funding for
those services cannot be arranged from other sources.
``(3) Underserved area.--The term `underserved area'
means--
``(A) the area served by the 3 local educational
agencies in the State that have the highest numbers of
children, ages 5 through 17, from families below the
poverty level (based on data satisfactory to the
Secretary); and
``(B) the area served by any other local
educational agency in which the percentage of such
children is at least 20 percent, or the number of such
children is at least 10,000.
``SEC. 253. GRANT AUTHORITY AND CONDITIONS.
``(a) Grants Authorized.--
``(1) Grants.--
``(A) In general.--From amounts appropriated under
section 262 the Secretary shall award grants, on a
competitive basis, to eligible partnerships to enable
the eligible partnerships to pay the Federal share of
the cost of carrying out the activities described in
section 255.
``(B) Duration.--Each grant awarded under
subparagraph (A) shall be awarded for a period not to
exceed 5 years.
``(2) Continuing eligibility; review of progress.--The
Secretary shall--
``(A) continue to make grant payments for the
second and succeeding years of a grant awarded under
this part, only after determining that the eligible
partnership is making satisfactory progress in carrying
out the activities under the grant; and
``(B) conduct an intensive review of the eligible
partnerships's progress under the grant, with the
assistance of outside experts, before making grant
payments for the fourth year of the grant.
``(3) Maximum number.--No eligible partnership may receive
more than 2 grants under this subsection.
``(b) Matching Requirement.--
``(1) Federal share.--The Federal share of the cost of
activities carried out under a grant made under subsection (a)
shall not exceed--
``(A) 70 percent of the cost in the first year of
the grant;
``(B) 60 percent in the second year;
``(C) 60 percent in the third year;
``(D) 50 percent in the fourth year; and
``(E) 50 percent in the fifth year and any
succeeding year (including each year of the second
grant, if any).
``(2) Non-federal share.--The non-Federal share of
activities carried out with a grant under subsection (a) may be
provided in cash or in kind, fairly evaluated, and may be
obtained from any non-Federal public or private source.
``(c) Planning Grants.--
``(1) In general.--The Secretary may award planning grants
to eligible partnerships that are not ready to implement
programs under subsection (a).
``(2) Duration.--Each planning grant shall be for a period
of not more than 1 year, which shall be in addition to the
period of any grant under subsection (a).
``(3) Requirement.--Any recipient of a planning grant under
this subsection that wishes to receive a grant under subsection
(a)(1) shall separately apply for a grant under that
subsection.
``SEC. 254. GRANT APPLICATIONS.
``(a) Applications Required.--Any eligible partnership desiring to
receive a grant under this part shall submit an application to the
Secretary at such time, in such form, and containing such information
as the Secretary may require.
``(b) Application Contents.--Each application for a grant under
section 253(a) shall include--
``(1) a designation of the institution or agency, within
the eligible partnership, that will serve as the fiscal agent
for the grant;
``(2) information on the quality of the teacher preparation
program of the institution of higher education participating in
the eligible partnership and how the eligible partnership will
ensure, through improvements in the eligible partnership's
teacher preparation practices or other appropriate strategies,
that scholarship recipients will receive high-quality
preparation;
``(3) a description of the assessment the members of the
eligible partnership have undertaken--
``(A) to determine--
``(i) the most critical needs of the local
educational agencies, particularly the needs of
schools in high-poverty areas, for new teachers
(which may include teachers in particular
subject areas or at certain grade levels); and
``(ii) how the project carried out under
the grant will address those needs; and
``(B) that reflects the input of all significant
entities in the community (including organizations
representing teachers and parents) that have an
interest in teacher recruitment, preparation, and
induction;
``(4) a description of the project the eligible partnership
will carry out with the grant, including information
regarding--
``(A) the recruitment and outreach efforts the
eligible partnership will undertake to publicize the
availability of scholarships and other assistance under
the program;
``(B)(i) the number and types of students that the
eligible partnership will serve under the program,
which may include education paraprofessionals seeking
to achieve full teacher certification or licensure;
teachers whom the partner local educational agencies
have hired under emergency certification or licensure
procedures; or former military personnel, mid-career
professionals, or AmeriCorps or Peace Corps volunteers,
who desire to enter teaching; and
``(ii) the criteria that the eligible partnership
will use in selecting the students, including criteria
to determine whether individuals have the capacity to
benefit from the program, complete teacher
certification requirements, and become effective
teachers;
``(C) the activities the eligible partnership will
carry out under the grant, including a description of,
and justification for, any support services the
institution of higher education participating in the
eligible partnership will offer to participating
students;
``(D) the number and funding range of the
scholarships the institution will provide to students;
and
``(E) the procedures the institution will establish
for entering into, and enforcing, agreements with
scholarship recipients regarding the recipients'
fulfillment of the service commitment described in
section 259;
``(5) a description of how the institution will use funds
provided under the grant only--
``(A) to increase the number of students--
``(i) with high potential to be effective
teachers;
``(ii) participating in the institution's
teacher preparation programs; or
``(iii) in the particular type or types of
preparation programs that the grant will
support; or
``(B) to increase the number of graduates, who are
minority individuals, with high potential to be
effective teachers;
``(6) a description of the commitments, by the local
educational agencies participating in the partnership, to hire
qualified scholarship recipients in the schools served by the
agencies and in the subject areas or grade levels for which the
scholarship recipients will be trained, and a description of
the actions the participating institution of higher education,
the participating local educational agencies, and the other
partners will take to facilitate the successful transition of
the recipients into teaching; and
``(7) a description of the eligible partnership's plan for
institutionalizing the activities the partnership is carrying
out under this part, so that the activities will continue once
Federal funding ceases.
``SEC. 255. USES OF FUNDS.
``(a) In General.--Each eligible partnership receiving a grant
under section 523(a) shall use the grant funds for the following:
``(1) Scholarships.--Scholarships to help students pay the
costs of tuition, room, board, and other expenses of completing
a teacher preparation program.
``(2) Support services.--Support services, if needed to
enable scholarship recipients to complete postsecondary
education programs.
``(3) Followup services.--Followup services provided to
former scholarship recipients during the recipients' first 3
years of teaching.
``(4) Payments.--Payments to partner local educational
agencies, if needed to enable the agencies to permit
paraprofessional staff to participate in teacher preparation
programs (such as the cost of release time for the staff).
``(5) Additional courses.--If appropriate, and if no other
funds are available for, paying the costs of additional courses
taken by former scholarship recipients during the recipients'
initial 3 years of teaching.
``(b) Planning Grants.--A recipient of a planning grant under
section 253(c) shall use the grant funds for the costs of planning for
the implementation of a grant under section 253(a).
``SEC. 256. SELECTION OF APPLICANTS.
``(a) Peer Review.--The Secretary, using a peer review process,
shall select eligible partnerships to receive funding under this part
on the basis of--
``(1) the quality of the teacher preparation program
offered by the institution participating in the partnership;
``(2) the quality of the program carried out under the
application; and
``(3) the capacity of the partnership to carry out the
grant successfully.
``(b) Criteria.--
``(1) In general.--In awarding grants under section 253(a),
the Secretary shall seek to ensure that--
``(A) in the aggregate, eligible partnerships carry
out a variety of approaches to preparing new teachers;
and
``(B) there is an equitable geographic distribution
of the grants.
``(2) Special consideration.--In addition to complying with
paragraph (1), the Secretary shall give special consideration
to--
``(A) applications most likely to result in the
preparation of increased numbers of individuals with
high potential for effective teaching who are minority
individuals; and
``(B) applications from partnerships that have as
members of the partnerships historically Black colleges
and universities, Hispanic-serving institutions, and
Tribal Colleges and Universities.
``(c) Second Five-Year Grants.--In selecting eligible partnerships
to receive second year grant payments under this part, the Secretary
shall give a preference to eligible partnerships whose projects have
resulted in--
``(1) the placement and retention of a substantial number
of high-quality graduates in teaching positions in underserved,
high-poverty schools;
``(2) the adoption of effective programs that meet the
teacher preparation needs of high-poverty urban and rural
areas; and
``(3) effective partnerships with elementary schools and
secondary schools that are supporting improvements in student
achievement.
``SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELATION TO OTHER
ASSISTANCE.
``(a) Duration of Assistance.--No individual may receive
scholarship assistance under this part--
``(1) for more than 5 years of postsecondary education; and
``(2) unless that individual satisfies the requirements of
section 484(a)(5).
``(b) Amount of Assistance.--No individual may receive a
scholarship awarded under this part that exceeds the cost of
attendance, as defined in section 472, at the institution of higher
education the individual is attending.
``(c) Relation to Other Assistance.--A scholarship awarded under
this part--
``(1) shall not be reduced on the basis of the individual's
receipt of other forms of Federal student financial assistance;
and
``(2) shall be regarded as other financial assistance
available to the student, within the meaning of sections 471(3)
and 480(j)(1), in determining the student's eligibility for
grant, loan, or work assistance under title IV.
``SEC. 258. SCHOLARSHIP CONDITIONS.
``(a) In General.--A recipient of a scholarship under this part
shall continue to receive the scholarship assistance only as long as
the recipient is--
``(1) enrolled as a full-time student and pursuing a course
of study leading to teacher certification, unless the recipient
is working in a public school (as a paraprofessional, or as a
teacher under emergency credentials) while participating in the
program; and
``(2) maintaining satisfactory progress as determined by
the institution of higher education participating in the
partnership.
``(b) Special Rule. Each eligible partnership shall modify the
application of section 257(a)(1) and of subsection (a)(1) to the extent
necessary to accommodate the rights of individuals with disabilities
under section 504 of the Rehabilitation Act of 1973.
``SEC. 259. SERVICE REQUIREMENTS.
``(a) Requirement.--Each eligible partnership receiving a grant
under this part shall enter into an agreement, with each student to
whom the partnership awards a scholarship under this part, providing
that a scholarship recipient who completes a teacher preparation
program under this part shall, within 7 years of completing that
program, teach full-time for at least 5 years in a high-poverty school
in an underserved geographic area or repay the amount of the
scholarship, under the terms and conditions established by the
Secretary.
``(b) Regulations. The Secretary shall prescribe regulations
relating to the requirements of subsection (a), including any
provisions for waiver of those requirements.
``SEC. 260. EVALUATION.
``The Secretary shall provide for an evaluation of the program
carried out under this part, which shall asses such issues as--
``(1) whether institutions participating in the eligible
partnerships are successful in preparing scholarship recipients
to teach to high State and local standards;
``(2) whether scholarship recipients are successful in
completing teacher preparation programs, becoming fully
certified teachers, and obtaining teaching positions in
underserved areas, and whether the recipients continue teaching
in those areas over a period of years;
``(3) the national impact of the program in assisting local
educational agencies in underserved areas to recruit, prepare,
and retain diverse, high-quality teachers in the areas in which
the agencies have the greatest needs;
``(4) the long-term impact of the grants on teacher
preparation programs conducted by institutions of higher
education participating in the eligible partnership and on the
institutions' relationships with their partner local
educational agencies and other members of the partnership; and
``(5) the relative effectiveness of different approaches
for preparing new teachers to teach in underserved areas,
including their effectiveness in preparing new teachers to
teach to high content and performance standards.
``SEC. 261. NATIONAL ACTIVITIES.
``The Secretary may reserve not more than 5 percent of the funds
appropriated for this part for any fiscal year for--
``(1) peer review of applications;
``(2) conducting the evaluation required under section 260;
and
``(3) technical assistance.
``SEC. 262. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$37,000,000 for fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
TITLE III--INSTITUTIONAL AID
SEC. 301. TRANSFERS AND REDESIGNATIONS.
(a) In General.--Title III (20 U.S.C. 1051 et seq.) is amended--
(1) by redesignating part D as part F;
(2) by redesignating sections 351, 352, 353, 354, 356, 357,
358, and 360 (20 U.S.C. 1066, 1067, 1068, 1069, 1069b, 1069c,
1069d, and 1069f) as sections 391, 392, 393, 394, 395, 396,
397, and 398, respectively;
(3) by transferring part B of title VII (20 U.S.C. 1132c et
seq.) to title III to follow part C of title III (20 U.S.C.
1065 et seq.), and redesignating such part B as part D;
(4) by redesignating sections 721 through 728 (20 U.S.C.
1132c and 1132c-7) as sections 341 through 348, respectively;
(5) by transferring subparts 1 and 3 of part B of title X
(20 U.S.C. 1135b et seq. and 1135d et seq.) to title III to
follow part D of title III (as redesignated by paragraph (3)),
and redesignating such subpart 3 as subpart 2;
(6) by inserting after part D of title III (as redesignated
by paragraph (3)) the following:
``PART E--MINORITY SCIENCE IMPROVEMENT PROGRAM'';
(7) by redesignating sections 1021 through 1024 (20 U.S.C.
1135b and 1135b-3), and sections 1041, 1042, 1043, 1044, 1046,
and 1047 (20 U.S.C. 1135d, 1135d-1, 1135d-2, 1135d-3, 1135d-5,
and 1135d-6) as sections 351 through 354, and sections 361,
362, 363, 364, 365, and 366, respectively; and
(8) by repealing section 366 (as redesignated by paragraph
(7)) (20 U.S.C. 1135d-6).
(b) Conforming Amendment.--Section 361 (as redesignated by
subsection (a)(7)) (20 U.S.C. 1135d) is amended--
(1) in paragraph (1), by inserting ``and'' after the
semicolon;
(2) in paragraph (2), by striking ``; and'' and inserting a
period; and
(3) by striking paragraph (3).
(c) Cross References.--Title III (20 U.S.C. 1051 et seq.) is
amended--
(1) in section 311(b) (20 U.S.C. 1057(b)), by striking
``360(a)(1)'' and inserting ``398(a)(1)'';
(2) in section 312 (20 U.S.C. 1058)--
(A) in subsection (b)(1)(B), by striking ``352(b)''
and inserting ``392(b)''; and
(B) in subsection (c)(2), by striking ``352(a)''
and inserting ``392(a)'';
(3) in section 313(b) (20 U.S.C. 1059(b)), by striking
``354(a)(1)'' and inserting ``394(a)(1)'';
(4) in section 342 (as redesignated by subsection (a)(4))
(20 U.S.C. 1132c-1)--
(A) in paragraph (3), by striking ``723(b)'' and
inserting ``343(b)'';
(B) in paragraph (4), by striking ``723'' and
inserting ``343'';
(C) in the matter preceding subparagraph (A) of
paragraph (5), by striking ``724(b)'' and inserting
``344(b)'';
(D) in paragraph (8), by striking ``725(1)'' and
inserting ``345(1)''; and
(E) in paragraph (9), by striking ``727'' and
inserting ``347'';
(5) in section 343 (as redesignated by subsection (a)(4))
(20 U.S.C. 1132c-2)--
(A) in subsection (a), by striking ``724'' and
inserting ``344''; and
(B) in subsection (b)--
(i) in the matter preceding paragraph (1),
by striking ``725(1) and 726'' and inserting
``345(1) and 346'';
(ii) in paragraph (10), by striking ``724''
and inserting ``344''; and
(iii) in subsection (d), by striking
``723(c)(1)'' and inserting ``343(c)(1)'';
(6) in section 345(2) (as redesignated by subsection
(a)(4)) (20 U.S.C. 1132c-4(2)), by striking ``723'' and
inserting ``343'';
(7) in section 348 (as redesignated by subsection (a)(4))
(20 U.S.C. 1132c-7), by striking ``725(1)'' and inserting
``345(1)'';
(8) in section 353(a) (as redesignated by subsection
(a)(7)) (20 U.S.C. 1135b-2(a))--
(A) in paragraph (1), by striking ``1046(6)'' and
inserting ``365(6)'';
(B) in paragraph (2), by striking ``1046(7)'' and
inserting ``365(7)'';
(C) in paragraph (3), by striking ``1046(8)'' and
inserting ``365(8)''; and
(D) in paragraph (4), by striking ``1046(9)'' and
inserting ``365(9)'';
(9) in section 361(1) (as redesignated by subsection
(a)(7)) (20 U.S.C. 1135d(1)), by striking ``1046(3)'' and
inserting ``365(3)'';
(10) in section 362(a) (as redesignated by subsection
(a)(7)) (20 U.S.C. 1135d-1(a))--
(A) in the matter preceding paragraph (1), by
striking ``1041'' and inserting ``361''; and
(B) in paragraph (1), by striking ``1021(b)'' and
inserting ``351(b)''; and
(11) in section 391(b)(6) (as redesignated by subsection
(a)(2)), by striking ``357'' and inserting ``396''.
SEC. 302. FINDINGS.
Section 301(a) (20 U.S.C. 1051(a)) is amended--
(1) by redesignating paragraphs (3) through (7) as
paragraphs (4) through (8), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) in order to be competitive and provide a high-quality
education for all, institutions of higher education should
improve their technological capacity and make effective use of
technology;''.
SEC. 303. STRENGTHENING INSTITUTIONS.
(a) Grants.--Section 311 (20 U.S.C. 1057) is amended--
(1) in subsection (b)(3)(D), by inserting ``, including
high technology equipment,'' after ``equipment''; and
(2) by adding at the end the following:
``(c) Endowment Fund.--
``(1) In general.--An eligible institution may use not more
than 20 percent of the grant funds provided under this part to
establish or increase an endowment fund at such institution.
``(2) Matching requirement.--In order to be eligible to use
grant funds in accordance with paragraph (1), the eligible
institution shall provide matching funds, in an amount equal to
the Federal funds used in accordance with paragraph (1), for
the establishment or increase of the endowment fund.
``(3) Comparability.--The provisions of part C, regarding
the establishment or increase of an endowment fund, that the
Secretary determines are not inconsistent with this subsection,
shall apply to funds used under paragraph (1).''.
(b) Duration of Grant.--Section 313 (20 U.S.C. 1059) is amended by
adding at the end the following:
``(d) Wait-Out-Period.--Each eligible institution that received a
grant under this part for a 5-year period shall not be eligible to
receive an additional grant under this part until 2 years after the
date on which the 5-year grant period terminates.
(c) American Indian Tribally Controlled Colleges and
Universities.--Section 316 (20 U.S.C. 1059c) is amended to read as
follows:
``SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
``(a) Program Authorized.--The Secretary shall provide grants and
related assistance to American Indian Tribal Colleges and Universities
to enable such institutions to improve and expand their capacity to
serve Indian students.
``(b) Definitions.--In this section:
``(1) Indian.--The term `Indian' has the meaning given the
term in section 2 of the Tribally Controlled College or
University Assistance Act of 1978.
``(2) Indian tribe.--The term `Indian tribe' has the
meaning given the term in section 2 of the Tribally Controlled
College or University Assistance Act of 1978.
``(3) Tribal college or university.--The term `Tribal
College or University' has the meaning give the term `tribally
controlled college or university' in section 2 of the Tribally
Controlled College or University Assistance Act of 1978, and
includes an institution listed in the Equity in Educational
Land Grant Status Act of 1994.
``(4) Institution of higher education.--The term
`institution of higher education' means an institution of
higher education as defined in section 1201(a), except that
paragraph (2) of such section shall not apply.
``(c) Authorized Activities.--
``(1) In general.--Grants awarded under this section shall
be used by Tribal Colleges or Universities to assist such
institutions to plan, develop, undertake, and carry out
activities to improve and expand such institutions' capacity to
serve Indian students.
``(2) Examples of authorized activities.--The activities
described in paragraph (1) may include--
``(A) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes;
``(B) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services;
``(C) support of faculty exchanges, faculty
development, and faculty fellowships to assist in
attaining advanced degrees in the faculty's field of
instruction;
``(D) academic instruction in disciplines in which
American Indians are underrepresented;
``(E) purchase of library books, periodicals, and
other educational materials, including
telecommunications program material;
``(F) tutoring, counseling, and student service
programs designed to improve academic success;
``(G) funds management, administrative management,
and acquisition of equipment for use in strengthening
funds management;
``(H) joint use of facilities, such as laboratories
and libraries;
``(I) establishing or improving a development
office to strengthen or improve contributions from
alumni and the private sector;
``(J) establishing or enhancing a program of
teacher education designed to qualify students to teach
in elementary schools or secondary schools, with a
particular emphasis on teaching American Indian
children and youth, that shall include, as part of such
program, preparation for teacher certification;
``(K) establishing community outreach programs that
encourage American Indian elementary school and
secondary school students to develop the academic
skills and the interest to pursue postsecondary
education;
``(L) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the
activities described in subparagraphs (A)
through (K); and
``(ii) are approved by the Secretary as
part of the review and acceptance of such
application.
``(3) Endowment fund.--
``(A) In general.--A Tribal College or University
may use not more than 20 percent of the grant funds
provided under this section to establish or increase an
endowment fund at the institution.
``(B) Matching requirement.--In order to be
eligible to use grant funds in accordance with
subparagraph (A), the Tribal College or University
shall provide matching funds, in an amount equal to the
Federal funds used in accordance with subparagraph (A),
for the establishment or increase of the endowment
fund.
``(C) Comparability.--The provisions of part C
regarding the establishment or increase of an endowment
fund, that the Secretary determines are not
inconsistent with this paragraph, shall apply to funds
used under subparagraph (A).
``(d) Application Process.--
``(1) Institutional eligibility.--To be eligible to receive
assistance under this section, a Tribal College or University
shall be an institution that--
``(A) is an eligible institution under section
312(b);
``(B) is eligible to receive assistance under the
Tribally Controlled College or University Assistance
Act of 1978; or
``(C) is eligible to receive funds under the Equity
in Educational Land Grant Status Act of 1994.
``(2) Application.--Any Tribal College or University
desiring to receive assistance under this section shall submit
an application to the Secretary at such time, and in such
manner, as the Secretary may by regulation reasonably require.
Each such application shall include--
``(A) a 5-year plan for improving the assistance
provided by the Tribal College or University to Indian
students, increasing the rates at which Indian
secondary school students enroll in higher education,
and increasing overall postsecondary retention rates
for Indian students; and
``(B) such enrollment data and other information
and assurances as the Secretary may require to
demonstrate compliance with subparagraph (A) or (B) of
paragraph (1).
``(3) Special rule.--For the purposes of this part, no
Tribal College or University that is eligible for and receives
funds under this section may concurrently receive other funds
under this part or part B.''.
SEC. 304. STRENGTHENING HBCU'S.
(a) Grants.--Section 323 (20 U.S.C. 1062) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Endowment Fund.--
``(1) In general.--An institution may use not more than 20
percent of the grant funds provided under this part to
establish or increase an endowment fund at the institution.
``(2) Matching requirement.--In order to be eligible to use
grant funds in accordance with paragraph (1), the eligible
institution shall provide matching funds, in an amount equal to
the Federal funds used in accordance with paragraph (1), for
the establishment or increase of the endowment fund.
``(3) Comparability.--The provisions of part C regarding
the establishment or increase of an endowment fund, that the
Secretary determines are not inconsistent with this subsection,
shall apply to funds used under paragraph (1).''.
(b) Professional or Graduate Institutions.--Section 326 (20 U.S.C.
1063b) is amended--
(1) in subsection (a), by adding at the end of paragraph
(2) the following: ``If a grant of less than $500,000 is made
under this section, matching funds provided from non-Federal
sources are not required. If a grant equal to or in excess of
$500,000 is made under this section, match funds provided from
non-Federal sources are required only with respect to the
amount of the grant that exceeds $500,000.''; and
(2) in subsection (e)(1)--
(A) in subparagraph (E), by inserting ``, and any
Tuskegee University qualified graduate program'' before
the semicolon;
(B) in subparagraph (F), by inserting ``, and any
Xavier University qualified graduate program'' before
the semicolon;
(C) in subparagraph (G), by inserting ``, and any
Southern University qualified graduate program'' before
the semicolon;
(D) in subparagraph (H), by inserting ``, and any
Texas Southern University qualified graduate program''
before the semicolon;
(E) in subparagraph (I), by inserting ``, and any
Florida A&M University qualified graduate program''
before the semicolon; and
(F) in subparagraph (J), by inserting ``, and any
North Carolina Central University qualified graduate
program'' before the semicolon.
SEC. 305. ENDOWMENT CHALLENGE GRANTS.
Paragraph (2) of section 331(b) (20 U.S.C. 1065(b)) is amended by
striking subparagraphs (B) and (C) and inserting the following:
``(B) The Secretary may make a grant under this part to an eligible
institution in any fiscal year if the institution--
``(i) applies for a grant in an amount not exceeding
$500,000; and
``(ii) has deposited in the eligible institution's
endowment fund established under this section an amount which
is equal to \1/2\ of the amount of such grant.
``(C) An eligible institution of higher education that is awarded a
grant under subparagraph (B) shall not be eligible to receive an
additional grant under subparagraph (B) until 10 years after the date
on which the grant period terminates.''.
SEC. 306. HBCU CAPITAL FINANCING.
(a) Definition.--Section 342(5) (as redesignated by section
301(a)(4)) (20 U.S.C. 1132c-1(5)) is amended--
(1) by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (C), (F), and (G);
(2) by inserting after subparagraph (A) the following:
``(B) a facility for the administration of an
educational program, or a student center or student
union, except that not more than 5 percent of the loan
proceeds provided under this part may be used for the
facility, center or union if the facility, center or
union is owned, leased, managed, or operated by a
private business, that, in return for such use, makes a
payment to the eligible institution;'';
(3) by inserting after subparagraph (C) (as redesignated by
paragraph (1)) the following:
``(D) a maintenance, storage, or utility facility
that is essential to the operation of a facility, a
library, a dormitory, equipment, instrumentation, a
fixture, real property or an interest therein,
described in this paragraph;
``(E) a facility designed to provide primarily
outpatient health care for students or faculty;''; and
(4) in subparagraph (G) (as redesignated by paragraph (2)),
by striking ``(C)'' and inserting ``(F)''.
(b) Full Faith and Credit.--Section 343 (as redesignated by section
301(a)(4)) (20 U.S.C. 1132c-2) is amended by adding at the end the
following:
``(e) Notwithstanding any other provision of law, the Secretary may
sell a qualified bond guaranteed under this part to any party that
offers terms that the Secretary determines are in the best interest of
the eligible institution.''.
SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM.
Section 365(4) (as redesignated by section 301(a)(7)) (20 U.S.C.
1135d-5(4)) is amended by inserting ``behavioral,'' after
``physical,''.
SEC. 308. GENERAL PROVISIONS.
(a) Applications.--Paragraph (1) of section 391(b) (as redesignated
by section 301(a)(2)) (20 U.S.C. 1066(b)) is amended by inserting ``, D
or E'' after ``part C''.
(b) Application Review Process.--Section 393 (as redesignated by
section 301(a)(2)) (20 U.S.C. 1068) is amended by adding at the end the
following:
``(d) Exclusion.--The provisions of this section shall not apply to
applications submitted under part D.''.
(c) Waivers.--Paragraph (2) of section 395(b) (as redesignated by
section 301(a)(2)) (20 U.S.C. 1069b(b)) is amended by striking ``title
IV, VII, or VIII'' and inserting ``part D or title IV''.
(d) Authorization of Appropriations.--Section 398(a) (as
redesignated by section 301(a)(2)) (20 U.S.C. 1069f) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``1993'' and
inserting ``1999''; and
(B) in subparagraph (B)--
(i) in clause (i), by striking
``$45,000,000 for fiscal year 1993'' and
inserting ``$5,000,000 for fiscal year 1999'';
(ii) by striking clause (ii); and
(iii) by striking ``(B)(i) There'' and
inserting ``(B) There'';
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``1993'' and
inserting ``1999''; and
(B) in subparagraph (B), by striking ``$20,000,000
for fiscal year 1993'' and inserting ``$30,000,000 for
fiscal year 1999'';
(3) in paragraph (3), by striking ``$50,000,000 for fiscal
year 1993'' and inserting ``$10,000,000 for fiscal year 1999'';
and
(4) by adding at the end the following:
``(4) Part d.--There are authorized to be appropriated to
carry out part D, $110,000 for fiscal year 1999, and such sums
as may be necessary for each of the 4 succeeding fiscal years.
``(5) Part e.--There are authorized to be appropriated to
carry out part E, $10,000,000 for fiscal year 1999, and such
sums as may be necessary for each of the 4 succeeding fiscal
years.''.
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
SEC. 411. REPEALS AND REDESIGNATIONS.
Title IV (20 U.S.C. 1070 et seq.) is amended--
(1) in part A (20 U.S.C. 1070 et seq.)--
(A) in subpart 2 (20 U.S.C. 1070a-11), by repealing
chapters 3 through 8 (20 U.S.C. 1070a-31 et seq. and
1070a-81 et seq.); and
(B) by repealing subpart 8 (20 U.S.C. 1070f); and
(2) in part H (20 U.S.C. 1099a et seq.)--
(A) by repealing subpart 1 (20 U.S.C. 1099a et
seq.); and
(B) by redesignating subparts 2 and 3 (20 U.S.C.
1099b et seq. and 1099c et seq.) as subparts 1 and 2,
respectively.
SEC. 412. FEDERAL PELL GRANTS.
(a) Amendment to Subpart Heading.--The heading for subpart 1 of
part A of title IV (20 U.S.C. 1070a et seq.) is amended by striking
``Basic Educational Opportunity Grants'' and inserting ``Federal Pell
Grants''.
(b) Federal Pell Grants.--Section 401 (20 U.S.C. 1070a) is
amended--
(1) in the section heading, by striking ``basic educational
opportunity grants'' and inserting ``federal pell grants'';
(2) in subsection (a)(1)--
(A) in the first sentence, by striking ``shall,
during the period beginning July 1, 1972, and ending
September 30, 1998,'' and inserting ``, for each fiscal
year through fiscal year 2004, shall''; and
(B) in the second sentence, by inserting ``until
such time as the Secretary determines and publishes in
the Federal Register with an opportunity for comment,
an alternative payment system that provides payments to
institutions in an accurate and timely manner,'' after
``pay eligible students'';
(3) in subsection (b)--
(A) in paragraph (2)(A), by striking clauses (i)
through (v), and inserting the following:
``(i) $5,000 for academic year 1999-2000;
``(ii) $5,200 for academic year 2000-2001;
``(iii) $5,400 for academic year 2001-2002;
``(iv) $5,600 for academic year 2002-2003;
and
``(v) $5,800 for academic year 2003-
2004.'';
(B) by amending paragraph (3) to read as follows:
``(3) For any academic year for which an appropriation Act
provides a maximum basic grant in an amount in excess of
$2,400, the amount of a student's basic grant shall equal
$2,400 plus--
``(A) one-half of the amount by which such maximum
basic grant exceeds $2,400; plus
``(B) the lesser of--
``(i) the remaining one-half of such
excess; or
``(ii) the sum of the student's tuition,
fees, and if the student has dependent care
expenses (as described in section 472(8) or
disability-related expenses (as described in
section 472(9)), an allowance determined by the
institution for such expenses.'';
(C) in paragraph (5), by striking ``$400, except''
and all that follows through ``grant of $400'' and
insert ``$200''; and
(D) in paragraph (6)--
(i) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(ii) by inserting ``(A)'' after the
paragraph designation; and
(iii) by adding at the end the following:
``(B) The Secretary shall promulgate regulations
implementing this paragraph.''; and
(4) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1)(A) Except as provided in subparagraph (B), the
period during which a student may receive a basic grant
shall be the period, required for the completion of the
first undergraduate baccalaureate course of study
pursued by the student at the institution at which the
student is in attendance, that does not exceed 150
percent of the period normally required by a full-time
student (or the equivalent period, in the case of a
part-time student) to complete the course of study at
the institution, as determined by the institution.
``(B) A student may receive basic grants under this
subpart for a period that exceeds the period described
in subparagraph (A) to the extent the institution in
which the student is enrolled determines necessary to
accommodate the rights of students with disabilities
under section 504 of the Rehabilitation Act of 1973.'';
and
(B) in paragraph (2)--
(i) by striking ``Nothing'' and inserting
``(A) Except as provided in subparagraph (B),
nothing'';
(ii) by striking ``or, in the case'' and
all that follows through ``or skills''; and
(iii) by adding at the end the following:
``(B)(i) A student may receive a basic grant to
attend English language instruction that is a separate
course of instruction only if--
``(I) students enrolled in such a course
are required to take an independently
administered standardized test of English
language proficiency upon completion of the
course; and
``(II) not less than a minimum percentage
of such students achieve a passing score on
that test.
``(ii) The Secretary shall promulgate regulations
that specify 1 or more standardized tests of English
proficiency, the minimum percentage of students who
must achieve a passing score on the tests, and such
other requirements as the Secretary determines are
necessary to implement clause (i).''.
SEC. 413. TRIO PROGRAMS.
(a) Program Authority.--Section 402A (20 U.S.C. 1070a-11) is
amended--
(1) in subsection (b)(3)--
(A) in subparagraph (A), by striking ``$170,000 for
fiscal year 1993'' and inserting ``$190,000 for each
fiscal year'';
(B) in subparagraph (B), by striking ``$180,000 for
fiscal year 1994'' and inserting ``$200,000 for each
fiscal year''; and
(C) in subparagraph (C), by striking ``$190,000 for
fiscal year 1995'' and inserting ``$210,000 for each
fiscal year'';
(2) in subsection (c)(6), by amending the last sentence to
read as follows: ``The Secretary shall permit a Director of a
program assisted under this chapter to also administer 1 or
more additional programs for disadvantaged students operated by
the sponsoring entity regardless of the funding source of such
additional program.''; and
(3) in subsection (f), by striking ``$650,000,000 for
fiscal year 1993'' and inserting ``$700,000,000 for fiscal year
1999''.
(b) Talent Search.--Section 402B(b)(5) (20 U.S.C. 1070a-12(b)(5))
is amended by inserting ``, or activities designed to acquaint
individuals from disadvantaged backgrounds with careers in which the
individuals are particularly underrepresented'' before the semicolon.
(c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
(1) in subsection (b)--
(A) in paragraph (9), by striking ``and'' after the
semicolon;
(B) by redesignating paragraph (10) as paragraph
(11);
(C) by inserting after paragraph (9) the following:
``(10) work-study positions where youth participating in
the project are exposed to careers requiring a postsecondary
degree; and''; and
(D) in paragraph (11) (as redesignated by
subparagraph (B)), by striking ``(9)'' and inserting
``(10)''; and
(2) in subsection (e), by striking ``and not in excess of
$40 per month during the remaining period of the year.'' and
inserting ``except that youth participating in a work-study
position under subsection (b)(10) may be paid a stipend of $300
per month during June, July, and August. Youths participating
in a project proposed to be carried out under any application
may be paid stipends not in excess of $40 per month during the
remaining period of the year.''.
(d) Student Support Services.--Paragraph (6) of section 402D(c) (20
U.S.C. 1070a-14(c)(6)) is amended to read as follows:
``(6) consider, in addition to such other criteria as the
Secretary may prescribe, the institution's effort, and where
applicable past history, in--
``(A) providing sufficient financial assistance to
meet the full financial need of each student at the
institution; and
``(B) maintaining the loan burden of each such
student at a manageable level.''.
(e) Evaluation and Dissemination.--Section 402H (20 U.S.C. 1070a-
18) is amended to read as follows:
``SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT AND
DISSEMINATION PARTNERSHIP PROJECTS.
``(a) Evaluations.--
``(1) In general.--For the purpose of improving the
effectiveness of the programs and projects assisted under this
subpart, the Secretary may make grants to or enter into
contracts with institutions of higher education and other
public and private institutions and organizations to evaluate
the effectiveness of the programs and projects assisted under
this subpart.
``(2) Practices.--The evaluations described in paragraph
(1) shall identify institutional, community, and program or
project practices that are particularly effective in enhancing
the access of low-income individuals and first-generation
college students to postsecondary education, the preparation of
the individuals and students for postsecondary education, and
the success of the individuals and students in postsecondary
education.
``(b) Grants.--The Secretary may award grants to institutions of
higher education or other private and public institutions and
organizations, that are carrying out a program or project assisted
under this subpart prior to the date of enactment of the Higher
Education Amendments of 1998, to enable the institutions and
organizations to expand and leverage the success of such programs or
projects by working in partnership with other institutions, community-
based organizations, or combinations of such institutions and
organizations, that are not receiving assistance under this subpart and
are serving low-income students and first generation college students,
in order to--
``(1) disseminate and replicate best practices of programs
or projects assisted under this subpart; and
``(2) provide technical assistance regarding programs and
projects assisted under this subpart.
``(c) Results.--In order to improve overall program or project
effectiveness, the results of evaluations and grants described in this
section shall be disseminated by the Secretary to similar programs or
projects assisted under this subpart, as well as other individuals
concerned with postsecondary access for and retention of low-income
individuals and first-generation college students.''.
SEC. 414. NATIONAL EARLY INTERVENTION SCHOLARSHIP AND PARTNERSHIP
PROGRAM.
Section 404G (20 U.S.C. 1070a-27) is amended by striking ``1993''
and inserting ``1999''.
SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.
(a) Authorization of Appropriations.--Section 413A(b) (20 U.S.C.
1070b) is amended by striking ``$675,000,000 for fiscal year 1993'' and
inserting ``$700,000,000 for fiscal year 1999''.
(b) Use of Funds for Less-Than-Full-Time Students.--Subsection (d)
of section 413C (20 U.S.C. 1070b-2) is amended to read as follows:
``(d) Use of Funds for Less-Than-Full-Time Students.--If the
institution's allocation under this subpart is directly or indirectly
based in part on the financial need demonstrated by students who are
independent students or attending the institution on less than a full-
time basis, a reasonable proportion of the allocation shall be made
available to such students.''.
(c) Carryover, Carryback, and Reallocation.--Subpart 3 of part A of
title IV (20 U.S.C. 1070b et seq.) is amended by adding at the end the
following:
``SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCATION.
``(a) Carryover Authority.--Of the sums made available to an
eligible institution under this subpart for a fiscal year, not more
than 10 percent may, at the discretion of the institution, remain
available for expenditure during the succeeding fiscal year to carry
out the program under this subpart.
``(b) Carryback Authority.--Of the sums made available to an
eligible institution under this subpart for a fiscal year, not more
than 10 percent may, at the discretion of the institution, be used by
the institution for expenditure for the fiscal year preceding the
fiscal year for which the sums were appropriated.
``(c) Reallocation.--Any of the sums made available to an eligible
institution under this subpart for a fiscal year that are not needed by
the institution to award supplemental grants during that fiscal year,
that the institution does not wish to use during the succeeding fiscal
year as authorized in subsection (a), and that the institution does not
wish to use for the preceding fiscal year as authorized in subsection
(b), shall be made available to the Secretary for reallocation under
section 413D(e) until the end of the second fiscal year after the
fiscal year for which such sums were appropriated.''.
SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.
(a) Amendment to Subpart Heading.--
(1) In general.--The heading for subpart 4 of part A of
title IV (20 U.S.C. 1070c et seq.) is amended to read as
follows:
``Subpart 4--Leveraging Educational Assistance Partnership Program''.
(2) Conforming amendments.--Subpart 4 of part A of title IV
(20 U.S.C. 1070c et seq.) is amended--
(A) in section 415B(b) (20 U.S.C. 1070c-1(b)), by
striking ``State student grant incentive'' and
inserting ``leveraging educational assistance
partnership''; and
(B) in the heading for section 415C (20 U.S.C.
1070c-2), by striking ``state student incentive grant''
and inserting ``leveraging educational assistance
partnership''.
(b) Authorization of Appropriations.--Section 415A(b) (20 U.S.C.
1070c(b)) is amended--
(1) in paragraph (1), by striking ``1993'' and inserting
``1999'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Reservation.--For any fiscal year for which the
amount appropriated under paragraph (1) exceeds $35,000,000,
the excess shall be available to carry out section 415E.''.
(c) Special Leveraging Educational Assistance Partnership
Program.--Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is
amended--
(1) by redesignating section 415E as 415F;
(2) by inserting after section 415D the following:
``SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP
PROGRAM.
``(a) In General.--From amounts reserved under section 415A(b)(2)
for each fiscal year, the Secretary shall--
``(1) make allotments among States in the same manner as
the Secretary makes allotments among States under section 415B;
and
``(2) award grants to States, from allotments under
paragraph (1), to enable the States to pay the Federal share of
the cost of the authorized activities described in subsection
(c).
``(b) Applicability Rule.--The provisions of this subpart which are
not inconsistent with this section shall apply to the program
authorized by this section.
``(c) Authorized Activities.--Each State receiving a grant under
this section may use the grant funds for--
``(1) increasing the dollar amount of grants awarded under
section 415B to eligible students who demonstrate financial
need;
``(2) carrying out transition programs from secondary
school to postsecondary education for eligible students who
demonstrate financial need;
``(3) making funds available for community service work-
study activities for eligible students who demonstrate
financial need;
``(4) creating a postsecondary scholarship program for
eligible students who demonstrate financial need and wish to
enter teaching;
``(5) creating a scholarship program for eligible students
who demonstrate financial need and wish to enter a program of
study leading to a degree in mathematics, computer science, or
engineering;
``(6) carrying out early intervention programs, mentoring
programs, and career education programs for eligible students
who demonstrate financial need; and
``(7) awarding merit or academic scholarships to eligible
students who demonstrate financial need.
``(d) Maintenance of Effort Requirement.--Each State receiving a
grant under this section for a fiscal year shall provide the Secretary
an assurance that the aggregate amount expended per student or the
aggregate expenditures by the State, from funds derived from non-
Federal sources, for the authorized activities described in subsection
(c) for the preceding fiscal year were not less than the amount
expended per student or the aggregate expenditures by the State for the
activities for the second preceding fiscal year.
``(e) Federal Share.--The Federal share of the cost of the
authorized activities described in subsection (c) for any fiscal year
shall be 33\1/3\ percent.''; and
(3) by adding at the end the following:
``SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE AGREEMENTS.
``(a) In General.--Any State that desires to receive assistance
under this subpart shall enter into an agreement with the Secretary
pursuant to subsection (b) setting forth the terms and conditions for
the relationship between the Federal Government and that State for the
purposes set forth under this subpart.
``(b) Contents.--
``(1) In general.--Such agreement shall consist of
assurances by the State, including a description of the means
to be used by the State to fulfill the assurances, that--
``(A) the State will provide for such methods of
administration as are necessary for the proper and
efficient administration of the program under this
subpart in keeping with the purposes set forth under
this subpart;
``(B) the State will provide for such fiscal
control and fund accounting procedures as may be
necessary to ensure proper disbursement of, and
accounting for, Federal funds paid to the State under
this subpart;
``(C) the State will follow policies and practices
of administration that will ensure that non-Federal
funds will not be supplanted by Federal funds, and that
equitable and appropriate criteria will be used in
evaluation of applications or proposals for grants
under this subpart; and
``(D) the State has a comprehensive planning or
policy formulation process that--
``(i) considers the relation between State
administration of the program under this
subpart, and administration of similar State
programs or processes;
``(ii) encourages State policies designed
to consider effects on declining enrollments on
all sectors of postsecondary education in the
State;
``(iii) considers the postsecondary
education needs of unserved and underserved
individuals within the State, including
individuals beyond the traditional college age;
``(iv) considers the resources of
institutions, organizations, or agencies (both
public and private) within the State capable of
providing postsecondary educational
opportunities in the State; and
``(v) provides for direct, equitable, and
active participation in the comprehensive
planning or policy formulation process or
processes of representatives of institutions of
higher education (including community colleges,
proprietary institutions, and independent
colleges and universities), students, other
providers of postsecondary education services,
and the general public in the State.
``(2) Special rule.--Participation under paragraph
(1)(D)(v) shall, consistent with State law, be achieved through
membership on State planning commissions, State advisory
councils, or other State entities established by the State to
conduct federally assisted comprehensive planning or policy
formulation.
``(c) Special Rule.--The information and assurances provided by a
State in accordance with subparagraphs (A), (B), and (C) of subsection
(b)(1), and regulations issued by the Secretary related directly to
such assurances, shall be satisfactory for the purposes of, and shall
be considered in lieu of, any comparable requirements for information
and assurances in any program under this subpart.
``(d) Agreement Duration; Compliance.--
``(1) Agreement duration.--An agreement of a State shall
remain in effect subject to modification as changes in
information or circumstances require.
``(2) Compliance.--Whenever the Secretary, after reasonable
notice and opportunity for a hearing has been given to the
State, finds that there is a failure to comply substantially with the
assurances required in subparagraph (A), (B), or (C) of subsection
(b)(1), the Secretary shall notify the State that the State is no
longer eligible to participate in the program under this subpart until
the Secretary is satisfied that there is no longer any such failure to
comply.
``(e) Special Rules.--
``(1) Entities entering into agreements.--For the purpose
of this section, the selection of the State entity or entities
authorized to act on behalf of the State for the purpose of
entering into an agreement with the Secretary shall be in
accordance with the State law of each individual State with
respect to the authority to make legal agreements between the
State and the Federal Government.
``(2) Construction.--
``(A) State structure.--Nothing in this section
shall be construed to authorize the Secretary to
require any State to adopt, as a condition for entering
into an agreement, or for participation in a program
under this subpart, a specific State organizational
structure for achieving participation in the planning,
or administration of programs, or for statewide
planning, coordination, governing, regulating, or
administering of postsecondary education agencies,
institutions, or programs in the State.
``(B) State authority.--Nothing in this section
shall be construed as a limitation on the authority of
any State to adopt a State organizational structure for
postsecondary education agencies, institutions, or
programs that is appropriate to the needs, traditions,
and circumstances of that State, or as a limitation on
the authority of a State entering into an agreement
pursuant to this section to modify the State
organizational structure at any time subsequent to
entering into such an agreement.''.
(d) Technical and Conforming Amendments.--
(1) Purpose.--Subsection (a) of section 415A (20 U.S.C.
1070c(a)) is amended to read as follows:
``(a) Purpose of Subpart.--It is the purpose of this subpart to
make incentive grants available to States to assist States in--
``(1) providing grants to--
``(A) eligible students attending institutions of
higher education or participating in programs of study
abroad that are approved for credit by institutions of
higher education at which such students are enrolled;
and
``(B) eligible students for campus-based community
service work-study; and
``(2) carrying out the activities described in section
415F.''.
(2) Allotment.--Section 415B(a)(1) (20 U.S.C. 1070c-
1(a)(1)) is amended by inserting ``and not reserved under
section 415A(b)(2)'' after ``415A(b)(1)''.
SEC. 417. HEP AND CAMP.
Section 418A(g) (20 U.S.C. 1070d-2(g)) is amended--
(1) in paragraph (1), by striking ``$15,000,000 for fiscal
year 1993'' and inserting ``$25,000,000 for fiscal year 1999'';
and
(2) in paragraph (2), by striking ``$5,000,000 for fiscal
year 1993'' and inserting ``$10,000,000 for fiscal year 1999''.
SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.
Section 419K (20 U.S.C. 1070d-41) is amended by striking
``$10,000,000 for fiscal year 1993'' and inserting ``$45,000,000 for
fiscal year 1999''.
SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
Part A of title IV (20 U.S.C. 1070 et seq.) is amended by inserting
after subpart 6 (20 U.S.C. 1070d-31 et seq.) the following:
``Subpart 7--Child Care Access Means Parents in School
``SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
``(a) Purpose.--The purpose of this section is to support the
participation of low-income parents in postsecondary education through
the provision of campus-based child care services.
``(b) Program Authorized.--
``(1) Authority.--The Secretary may award grants to
institutions of higher education to assist the institutions in
providing campus-based child care services primarily to low-
income students.
``(2) Amount of grants.--
``(A) In general.--The amount of a grant awarded to
an institution of higher education under this section
for a fiscal year shall not exceed 1 percent of the
total amount of all Federal Pell Grant funds awarded to
students enrolled at the institution of higher
education for the preceding fiscal year.
``(B) Minimum.--A grant under this section shall be
awarded in an amount that is not less than $10,000.
``(3) Duration; renewal; and payments.--
``(A) Duration.--The Secretary shall award a grant
under this section for a period of 3 years.
``(B) Renewal.--A grant under this section may be
renewed for a period of 3 years.
``(C) Payments.--Subject to subsection (e)(2), the
Secretary shall make annual grant payments under this
section.
``(4) Eligible institutions.--An institution of higher
education shall be eligible to receive a grant under this
section for a fiscal year if the total amount of all Federal
Pell Grant funds awarded to students enrolled at the
institution of higher education for the preceding fiscal year
equals or exceeds $350,000.
``(5) Use of funds.--Grant funds under this section shall
be used by an institution of higher education to support or
establish a campus-based child care program primarily serving
the needs of low-income students enrolled at the institution of
higher education.
``(6) Construction.--Nothing in this section shall be
construed to prohibit an institution of higher education that
receives grant funds under this section from serving the child
care needs of the community served by the institution.
``(7) Definition of low-income student.--For the purpose of
this section, the term ``low-income student'' means a student
who is eligible to receive a Federal Pell Grant for the fiscal
year for which the determination is made.
``(c) Applications.--An institution of higher education desiring a
grant under this section shall submit an application to the Secretary
at such time, in such manner, and accompanied by such information as
the Secretary may require. Each application shall--
``(1) demonstrate that the institution is an eligible
institution described in subsection (b)(4);
``(2) specify the amount of funds requested;
``(3) demonstrate the need of low-income students at the
institution for campus-based child care services by including
in the application--
``(A) information regarding student demographics;
``(B) an assessment of child care capacity on or
near campus;
``(C) information regarding the existence of
waiting lists for existing child care;
``(D) information regarding additional needs
created by concentrations of poverty or by geographic
isolation; and
``(E) other relevant data;
``(4) contain a description of the activities to be
assisted, including whether the grant funds will support an
existing child care program or a new child care program;
``(5) identify the resources, including technical expertise
and financial support, the institution will draw upon to
support the child care program and the participation of low-
income students in the program, such as accessing social
services funding, using student activity fees to help pay the
costs of child care, using resources obtained by meeting the
needs of parents who are not low-income students, and accessing
foundation, corporate or other institutional support, and
demonstrate that the use of the resources will not result in
increases in student tuition;
``(6) contain an assurance that the institution will meet
the child care needs of low-income students through the
provision of services, or through a contract for the provision
of services;
``(7) describe the extent to which the child care program
will coordinate with the institution's early childhood
education curriculum, to the extent the curriculum is
available, to meet the needs of the students in the early
childhood education program at the institution, and the needs
of the parents and children participating in the child care
program assisted under this section;
``(8) in the case of an institution seeking assistance for
a new child care program--
``(A) provide a timeline, covering the period from
receipt of the grant through the provision of the child
care services, delineating the specific steps the
institution will take to achieve the goal of providing
low-income students with child care services;
``(B) specify any measures the institution will
take to assist low-income students with child care
during the period before the institution provides child
care services; and
``(C) include a plan for identifying resources
needed for the child care services, including space in
which to provide child care services, and technical
assistance if necessary;
``(9) contain an assurance that any child care facility
assisted under this section will meet the applicable State or
local government licensing, certification, approval, or
registration requirements; and
``(10) contain a plan for any child care facility assisted
under this section to become accredited within 3 years of the
date the institution first receives assistance under this
section.
``(d) Priority.--The Secretary shall give priority in awarding
grants under this section to institutions of higher education that
submit applications describing programs that--
``(1) leverage significant local or institutional
resources, including in-kind contributions, to support the
activities assisted under this section; and
``(2) utilize a sliding fee scale for child care services
provided under this section in order to support a high number
of low-income parents pursuing postsecondary education at the
institution.
``(e) Reporting Requirements; Continuing Eligibility.--
``(1) Reporting requirements.--
``(A) Reports.--Each institution of higher
education receiving a grant under this section shall
report to the Secretary 18 months, and 36 months, after
receiving the first grant payment under this section.
``(B) Contents.--The report shall include--
``(i) data on the population served under
this section;
``(ii) information on campus and community
resources and funding used to help low-income
students access child care services;
``(iii) information on progress made toward
accreditation of any child care facility; and
``(iv) information on the impact of the
grant on the quality, availability, and
affordability of campus-based child care
services.
``(2) Continuing eligibility.--The Secretary shall make the
third annual grant payment under this section to an institution
of higher education only if the Secretary determines, on the
basis of the 18-month report submitted under paragraph (1),
that the institution is making a good faith effort to ensure
that low-income students at the institution have access to
affordable, quality child care services.
``(f) Construction.--No funds provided under this section shall be
used for construction, except for minor renovation or repair to meet
applicable State or local health or safety requirements.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $60,000,000 for fiscal year 1999
and such sums as may be necessary for each of the 4 succeeding fiscal
years.''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 421. ADVANCES FOR RESERVE FUNDS.
Section 422 (20 U.S.C. 1072) is amended--
(1) in subsection (c)--
(A) in paragraph (6)(B)(i), by striking ``written''
and inserting ``written, electronic''; and
(B) in paragraph (7)(A), by striking ``during the
transition from the Federal Family Education Loan
Program under this part to the Federal Direct Student
Loan Program under part D of this title'';
(2) in the matter preceding subparagraph (A) of subsection
(g)(1), by striking ``or the program authorized by part D of
this title'' each place the term appears; and
(3) by adding at the end the following:
``(i) Additional Recall of Reserves.--
``(1) In general.--Notwithstanding any other provision of
law and subject to paragraph (4), the Secretary shall recall
$40,000,000 for each of the fiscal years 1999, 2000, 2001,
2002, and 2003 from reserve funds held in the Federal Student
Loan Reserve Funds established under section 422A by guaranty
agencies.
``(2) Deposit.--Funds recalled by the Secretary under this
subsection shall be deposited in the Treasury.
``(3) Required share.--The Secretary shall require each
guaranty agency to return reserve funds under paragraph (1)
annually on the basis of \1/5\ of the agency's required share.
For purposes of this paragraph, a guaranty agency's required
share shall be determined as follows:
``(A) Equal percentage.--The Secretary shall
require each guaranty agency to return an equal
percentage reduction in the amount of reserve funds
held by the agency on September 30, 1996.
``(B) Calculation.--The equal percentage reduction
shall be the percentage obtained by dividing--
``(i) $200,000,000, by
``(ii) the total amount of all guaranty
agencies' reserve funds held on September 30,
1996.
``(4) Offset of required shares.--If any guaranty agency
returns to the Secretary any reserve funds in excess of the
amount required under this subsection or subsection (h), the
total amount required to be returned under paragraph (1) shall
be reduced by the amount of such excess reserve funds returned.
``(5) Definition of reserve funds.--The term `reserve
funds' when used with respect to a guaranty agency--
``(A) includes any reserve funds in cash or liquid
assets held by the guaranty agency, or held by, or
under the control of, any other entity; and
``(B) does not include buildings, equipment, or
other nonliquid assets.''.
SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND.
Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting
after section 422 (20 U.S.C. 1072) the following:
``SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.
``(a) Establishment.--Each guaranty agency shall, not later than 45
days after the date of enactment of this section, deposit all funds,
securities, and other liquid assets contained in the reserve fund
established pursuant to section 422 into a Federal Student Loan Reserve
Fund (in this section referred to as the `Federal Fund'), in an account
of a type selected by the agency, with the approval of the Secretary.
``(b) Investment of Funds.--Funds transferred to the Federal Fund
shall be invested in obligations issued or guaranteed by the United
States or a State, or in other similarly low-risk securities selected
by the guaranty agency, with the approval of the Secretary. Earnings
from the Federal Fund shall be the sole property of the Federal
Government.
``(c) Additional Deposits.--After the establishment of the Federal
Fund, a guaranty agency shall deposit into the Federal Fund--
``(1) all amounts received from the Secretary as payment of
reinsurance on loans pursuant to section 428(c)(1);
``(2) from amounts collected on behalf of the obligation of
a defaulted borrower, a percentage amount equal to the
complement of the reinsurance percentage in effect when payment
under the guaranty agreement was made with respect to the
defaulted loan pursuant to section 428(c)(6)(A)(i); and
``(3) the amount of the insurance premium collected from
borrowers pursuant to section 428(b)(1)(H).
``(d) Uses of Funds.--Subject to subsection (f), the Federal Fund
may only be used by a guaranty agency--
``(1) to pay lender claims pursuant to sections
428(b)(1)(G), 428(j), 437, and 439(q); and
``(2) to pay into the Agency Operating Fund established
pursuant to section 422B a default prevention fee in accordance
with section 428(l).
``(e) Ownership of Federal Fund.--The Federal Fund administered by
the guaranty agency, regardless of who holds or controls the reserve
funds or assets, and any nonliquid assets that were purchased with
Federal reserve funds, shall be considered to be the property of the
United States to be used in the operation of the program authorized by
this part, as provided in subsection (d). The Secretary may direct a
guaranty agency, or such agency's officers or directors, to cease any
activity involving expenditure, use, or transfer of the Federal Fund
administered by the guaranty agency that the Secretary determines is a
misapplication, misuse, or improper expenditure of such funds or
assets.
``(f) Transition.--
``(1) In general.--In order to establish the Agency
Operating Fund established by section 422B, each agency may
transfer not more than 180 days cash expenses for normal
operating expenses, as a working capital reserve as defined in
Office of Management and Budget Circular A-87 (Cost Accounting
Standards) for use in the performance of the agency's duties
under this part. Such transfers may occur during the first 3
years following the establishment of the Agency Operating Fund,
except that no agency may transfer in excess of 40 percent of
the Federal Fund balance to the agency's Agency Operating Fund
during any fiscal year. In determining the amount necessary for
transfer, the agency shall assure that sufficient funds remain
in the Federal Fund to pay lender claims within the required
time periods and to meet the reserve funds recall requirements
of subsection (b).
``(2) Repayment provisions.--Each guaranty agency shall
begin repayment of sums transferred pursuant to this subsection
not later than 3 years after the establishment of the Agency
Operating Fund, and shall repay all sums transferred not later than 5
years from the date of the establishment of the Agency Operating Fund.
The guaranty agency shall provide to the Secretary a schedule for
repayment of the sums transferred and an annual financial analysis
demonstrating the agency's ability to comply with the schedule and
repay all outstanding sums transferred.
``(3) Prohibition.--If a guaranty agency transfers funds
from the Federal Fund in accordance with this section, and
fails to make scheduled repayments to the Federal Fund, the
agency may not receive any other funds under this part until
the Secretary determines that the agency has made such
repayments.
``(4) Waiver.--The Secretary may waive the requirements of
paragraph (3) for a guaranty agency described in such paragraph
if the Secretary determines there are extenuating circumstances
beyond the control of the agency that justify such a waiver.
``(5) Investment of federal funds.--Funds transferred from
the Federal Fund to the Agency Operating Fund for operating
expenses shall be invested in obligations issued or guaranteed
by the United States or a State, or in other similarly low-risk
securities selected by the guaranty agency, with the approval
of the Secretary.
``(6) Special rule.--In applying the minimum reserve level
required by section 428(c)(9)(A), the Secretary shall include
all amounts owed to the Federal Fund by the guaranty agency in
the calculation.''.
SEC. 423. AGENCY OPERATING FUND.
Part B of title IV (20 U.S.C. 1071 et seq.) is amended further by
inserting after section 422A (as added by section 422) the following:
``SEC. 422B. AGENCY OPERATING FUND.
``(a) Establishment.--Each guaranty agency shall, not later than 45
days after the date of enactment of this section, establish a fund
designated as the Agency Operating Fund (in this section referred to as
the `Operating Fund').
``(b) Investment of Funds.--Funds deposited into the Operating
Fund, with the exception of funds transferred from the Federal Student
Loan Reserve Fund pursuant to section 422A(f), shall be invested at the
discretion of the guaranty agency.
``(c) Additional Deposits.--After the establishment of the
Operating Fund, the guaranty agency shall deposit into the Operating
Fund--
``(1) the loan processing and issuance fee paid by the
Secretary pursuant to section 428(f);
``(2) the portfolio maintenance fee paid by the Secretary
in accordance with section 458;
``(3) the default prevention fee paid in accordance with
section 428(l); and
``(4) amounts remaining pursuant to section
428(c)(6)(A)(ii) from collection on defaulted loans held by the
agency, after payment of the Secretary's equitable share,
excluding amounts deposited in the Federal Student Loan Reserve
Fund pursuant to section 422A(c)(2).
``(d) Uses of Funds.--
``(1) In general.--Funds in the Operating Fund shall be
used for application processing, loan disbursement, enrollment
and repayment status management, default prevention activities
(including those described in section 422(h)(8), default
collection activities, school and lender training, compliance
monitoring, and other student financial aid related activities
as determined by the Secretary.
``(2) Special rule.--The guaranty agency may, in the
agency's discretion, transfer funds from the Operating Fund to
the Federal Student Loan Reserve Fund for use pursuant to
section 422A. Such transfer shall be irrevocable, and any funds
so transferred shall become the sole property of the United
States.
``(3) Definitions.--For purposes of this subsection:
``(A) Default collection activities.--The term
`default collection activities' means activities of a
guaranty agency that are directly related to the
collection of the loan on which a default claim has
been paid to the participating lender, including the
attributable compensation of collection personnel (and
in the case of personnel who perform several functions for such an
agency only the portion of the compensation attributable to the
collection activity), attorney's fees, fees paid to collection
agencies, postage, equipment, supplies, telephone, and similar charges.
``(B) Default prevention activities.--The term
`default prevention activities' means activities of a
guaranty agency, including those described in section
422(h)(8), that are directly related to providing
collection assistance to the lender on a delinquent
loan, prior to the loan's being in a default status,
including the attributable compensation of appropriate
personnel (and in the case of personnel who perform
several functions for such an agency only the portion
of compensation attributable to the default prevention
activity), fees paid to locate a missing borrower,
postage, equipment, supplies, telephone, and similar
charges.
``(C) Enrollment and repayment status management.--
The term `enrollment and repayment status management'
means activities of a guaranty agency that are directly
related to ascertaining the student's enrollment
status, including prompt notification to the lender of
such status, an audit of the note or written agreement
to determine if the provisions of that note or
agreement are consistent with the records of the
guaranty agency as to the principal amount of the loan
guaranteed, and an examination of the note or agreement
to assure that the repayment provisions are consistent
with the provisions of this title.
``(e) Ownership of Operating Fund.--The Operating Fund, with the
exception of funds transferred from the Federal Student Loan Reserve
Fund in accordance with section 422A(f), shall be considered to be the
property of the guaranty agency. The Secretary may not regulate the
uses or expenditure of moneys in the Operating Fund, but the Secretary
may require such necessary reports and audits as provided in section
428(b)(2). However, during any period in which funds are owed to the
Federal Student Loan Reserve Fund as a result of transfer under
422A(f), moneys in the Operating Fund may only be used for expenses
related to the student loan programs authorized under this part.
``(f) Authority of Secretary To Dispose of Nonliquid Assets.--The
Secretary may allow a guaranty agency to purchase nonliquid assets of
the agency originally acquired with student loan reserve funds, except
that an agency may not purchase any nonliquid assets during any period
in which funds are owed to the Federal Student Loan Reserve Fund as a
result of a transfer under section 422A(f). The purchase amount shall
be available for expenditure under section 458.''.
SEC. 424. APPLICABLE INTEREST RATES.
(a) Applicable Interest Rates.--
(1) Amendment.--Section 427A (20 U.S.C. 1077a et seq.) is
amended to read as follows:
``SEC. 427A. APPLICABLE INTEREST RATES.
``(a) Interest Rates for New Loans On or After July 1, 1998.--
``(1) In general.--Subject to paragraph (2), with respect
to any loan made, insured, or guaranteed under this part (other
than a loan made pursuant to section 428B or 428C) for which
the first disbursement is made on or after July 1, 1998, the
applicable rate of interest shall, during any 12-month period
beginning on July 1 and ending on June 30, be determined on the
preceding June 1 and be equal to--
``(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
``(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
``(2) In school and grace period rules.--With respect to
any loan under this part (other than a loan made pursuant to
section 428B or 428C) for which the first disbursement is made
on or after July 1, 1998, the applicable rate of interest for
interest which accrues--
``(A) prior to the beginning of the repayment
period of the loan; or
``(B) during the period in which principal need not
be paid (whether or not such principal is in fact paid)
by reason of a provision described in section
428(b)(1)(M) or 427(a)(2)(C),
shall be determined under paragraph (1) by substituting `1.7
percent' for `2.3 percent'.
``(3) PLUS loans.--With respect to any loan under section
428B for which the first disbursement is made on or after July
1, 1998, the applicable rate of interest shall be determined
under paragraph (1)--
``(A) by substituting `3.1 percent' for `2.3
percent'; and
``(B) by substituting `9.0 percent' for `8.25
percent'.
``(b) Lesser Rates Permitted.--Nothing in this section or section
428C shall be construed to prohibit a lender from charging a borrower
interest at a rate less than the rate which is applicable under this
part.
``(c) Consultation.--The Secretary shall determine the applicable
rate of interest under this section after consultation with the
Secretary of the Treasury and shall publish such rate in the Federal
Register as soon as practicable after the date of determination.''.
(2) Conforming amendment.--Section 428B(d)(4) (20 U.S.C.
1078-2(d)(4)) is amended by striking ``section 427A(c)'' and
inserting ``section 427A(a)(3)''.
(b) Special Allowances.--
(1) Amendment.--Section 438(b)(2)(F) (20 U.S.C. 1087-
1(b)(2)(F)) is amended to read as follows:
``(F) Loans disbursed after july 1, 1998.--
``(i) In general.--Subject to paragraph (4) and
clauses (ii), (iii), and (iv) of this subparagraph, the
special allowance paid pursuant to this subsection on
loans for which the first disbursement is made on or
after July 1, 1998, shall be computed--
``(I) by determining the average of the
bond equivalent rates of 91-day Treasury bills
auctioned for such 3-month period;
``(II) by subtracting the applicable
interest rates on such loans from such average
bond equivalent rate;
``(III) by adding 2.8 percent to the
resultant percent; and
``(IV) by dividing the resultant percent by
4.
``(ii) In school and grace period.--In the case of
any loan for which the first disbursement is made on or
after July 1, 1998, and for which the applicable rate
of interest is described in section 427A(a)(2), clause
(i)(III) of this subparagraph shall be applied by
substituting `2.2 percent' for `2.8 percent'.
``(iii) PLUS loans.--In the case of any loan for
which the first disbursement is made on or after July
1, 1998, and for which the applicable rate of interest
is described in section 427A(a)(3), clause (i)(III) of
this subparagraph shall be applied by substituting `3.1
percent' for `2.8 percent', subject to clause (iv) of
this subparagraph.
``(iv) Limitation on special allowances for plus
loans.--In the case of loans disbursed on or after July
1, 1998, for which the interest rate is determined
under section 427A(a)(3), a special allowance shall not
be paid for a loan made under section 428B unless the
rate determined for any 12-month period under section
427A(a)(3) exceeds 9 percent.''.
(2) Conforming amendment.--Section 438(b)(2)(C)(ii) is
amended by striking ``In the case'' and inserting ``Subject to
subparagraph (F), in the case''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to any loan made, insured, or guaranteed under part
B of title IV of the Higher Education Act of 1965 for which the first
disbursement is made on or after July 1, 1998.
SEC. 425. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.
(a) Federal Interest Subsidies.--Section 428(a) (20 U.S.C. 1078(a))
is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) in clause (i), by striking subclauses
(I), (II), and (III) and inserting the
following:
``(I) sets forth the loan amount for which
the student shows financial need; and
``(II) sets forth a schedule for
disbursement of the proceeds of the loan in
installments, consistent with the requirements
of section 428G; and''; and
(ii) by amending clause (ii) to read as
follows:
``(ii) meets the requirements of subparagraph (B);
and'';
(B) by amending subparagraph (B) to read as
follows:
``(B) For the purpose of clause (ii) of subparagraph (A), a
student shall qualify for a portion of an interest payment
under paragraph (1) (and a loan amount pursuant to section
428H) if the eligible institution has determined and documented
the student's amount of need for a loan based on the student's
estimated cost of attendance, estimated financial assistance,
and, for the purpose of an interest payment pursuant to this
section, the expected family contribution (as determined under
part F), subject to the provisions of subparagraph (D).'';
(C) by amending subparagraph (C) to read as
follows:
``(C) For the purpose of subparagraph (B) and this
paragraph--
``(i) a student's cost of attendance shall be
determined under section 472;
``(ii) a student's estimated financial assistance
means, for the period for which the loan is sought, the
amount of assistance such student will receive under
subpart 1 of part A (as determined in accordance with
section 484(b)), subpart 3 of part A, parts C and E,
and any veterans' education benefits paid because of
enrollment in a postsecondary education institution,
including veterans' education benefits (as defined in
section 480(c)), plus other scholarship, grant, or loan
assistance; and
``(iii) the determination of need and of the amount
of a loan by an eligible institution under subparagraph
(B) with respect to a student shall, with the exception
of loans made under section 428H, be calculated in
accordance with part F.''; and
(D) by striking subparagraph (F); and
(2) in paragraph (3)(A)(v)--
(A) in subclause (I), by inserting ``by the
institution'' after ``disbursement''; and
(B) in clause (II), by inserting ``by the
institution'' after ``disbursement''.
(b) Insurance Program Agreements.--Section 428(b) (20 U.S.C.
1078(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by
inserting ``, as defined in section
481(d)(2),'' after ``academic year'';
(ii) in clause (iv), by striking ``and''
after the semicolon;
(iii) in clause (v), by inserting ``and''
after the semicolon; and
(iv) by inserting before the matter
following clause (v) the following:
``(vi) in the case of a student enrolled in
coursework specified in sections 484(b)(3)(B)
and 484(b)(4)(B)--
``(I) $2,625 for coursework
necessary for enrollment in an
undergraduate degree or certificate
program, and $5,500 for coursework
necessary for enrollment in a graduate
or professional degree or certification
program; and
``(II) $5,500 for coursework
necessary for a professional credential
or certification from a State required
for employment as a teacher in an
elementary or secondary school;'';
(B) by amending subparagraph (E) to read as
follows:
``(E) subject to subparagraphs (D) and (L), and
except as provided by subparagraph (M), provides that--
``(i) not more than 6 months prior to the
date on which the borrower's first payment is
due, the lender shall offer the borrower of a
loan made, insured, or guaranteed under this
section or section 428H, the option of repaying
the loan in accordance with a graduated,
income-sensitive, or extended repayment
schedule (as described in paragraph (9))
established by the lender in accordance with
regulations provided by the Secretary; and
``(ii) repayment of loans shall be in
installments in accordance with the repayment
plan selected under paragraph (9) and
commencing at the beginning of the repayment
period determined under paragraph (7)'';
(C) in subparagraph (L)(i), by inserting ``except
as otherwise provided by a repayment plan selected by
the borrower under clause (ii) or (iii) of paragraph
(9)(A),'' before ``during any''; and
(D) in subparagraph (U)(iii)(I), by inserting
``that originates or holds more than $5,000,000 in
loans made under this title for any fiscal year (except
that each lender described in section
435(d)(1)(A)(ii)(III) shall annually submit the results
of an audit required by this clause),'' before ``at
least once a year''; and
(2) by adding at the end the following:
``(9) Repayment plans.--
``(A) Design and selection.--In accordance with
regulations promulgated by the Secretary, the lender
shall offer a borrower of a loan made under this part
the plans described in this subparagraph for repayment
of such loan, including principal and interest thereon.
Except as provided in paragraph (1)(L)(i), no plan may
require a borrower to repay a loan in less than 5
years. The borrower may choose from--
``(i) a standard repayment plan, with a
fixed annual repayment amount paid over a fixed
period of time, not to exceed 10 years;
``(ii) a graduated repayment plan paid over
a fixed period of time, not to exceed 10 years;
``(iii) an income-sensitive repayment plan,
with income-sensitive repayment amounts paid
over a fixed period of time, not to exceed 10
years, except that the borrower's scheduled
payments shall not be less than the amount of
interest due; and
``(iv) for first-time borrowers on or after
the date of enactment of the Higher Education
Amendments of 1998 with outstanding loans under
this part totaling more than $30,000, an
extended repayment plan, with a fixed annual or
graduated repayment amount paid over an
extended period of time, not to exceed 25
years, except that the borrower shall repay
annually a minimum amount determined in
accordance with paragraph (2)(L).
``(B) Lender selection of option if borrower does
not select.--If a borrower of a loan made under this
part does not select a repayment plan described in
subparagraph (A), the lender shall provide the borrower
with a repayment plan described in subparagraph (A)(i).
``(C) Changes in selection.--The borrower of a loan
made under this part may change the borrower's
selection of a repayment plan under subparagraph (B),
as the case may be, under such conditions as may be
prescribed by the Secretary in regulation.
``(D) Acceleration permitted.--Under any of the
plans described in this paragraph, the borrower shall
be entitled to accelerate, without penalty, repayment
on the borrower's loans under this part.''.
(c) Guaranty Agreements for Reimbursing Losses.--Section 428(c) (20
U.S.C. 1078(c)) is amended--
(1) in paragraph (1)--
(A) in the fourth sentence of subparagraph (A), by
striking ``as reimbursement under this subsection shall
be equal to 98 percent'' and inserting ``as
reimbursement for loans for which the first
disbursement is made on or after the date of enactment
of the Higher Education Amendments of 1998 shall be
equal to 95 percent'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``88 percent
of the amount of such excess'' and inserting
``85 percent of the amount of such excess for
loans for which the first disbursement is made
on or after the date of enactment of the Higher
Education Amendments of 1998''; and
(ii) in clause (ii), by striking ``78
percent of the amount of such excess'' and
inserting ``75 percent of the amount of such
excess for loans for which the first
disbursement is made on or after the date of
enactment of the Higher Education Amendments of
1998'';
(C) in subparagraph (E)--
(i) in clause (i), by striking ``98
percent'' and inserting ``95 percent'';
(ii) in clause (ii), by striking ``88
percent'' and inserting ``85 percent''; and
(iii) in clause (iii), by striking ``78
percent'' and inserting ``75 percent''; and
(D) in subparagraph (F)--
(i) in clause (i), by striking ``98
percent'' and inserting ``95 percent''; and
(ii) in clause (ii), by striking ``88
percent'' and inserting ``85 percent'';
(2) in paragraph (3)--
(A) in subparagraph (A)(i), by inserting ``or
electronic'' after ``written'';
(B) in subparagraph (B), by striking ``and'' after
the semicolon;
(C) in subparagraph (C), by striking the period and
inserting ``; and''; and
(D) by inserting before the matter following
subparagraph (C) the following:
``(D) shall contain provisions that specify that
forbearance for a period not to exceed 60 days may be
granted if the lender determines that such a suspension
of collection activity is warranted following a
borrower's request for forbearance in order to collect
or process appropriate supporting documentation related
to the request, and that during such period interest
shall not be capitalized.'';
(3) by amending paragraph (6) to read as follows:
``(6) Secretary's equitable share.--For the purpose of
paragraph (2)(D), the Secretary's equitable share of payments
made by the borrower shall be that portion of the payments
remaining after the guaranty agency with which the Secretary
has an agreement under this subsection has deducted from such
payments--
``(A) a percentage amount equal to the complement
of the reinsurance percentage in effect when payment
under the guaranty agreement was made with respect to
the loan; and
``(B) an amount equal to 24 percent of such
payments for use in accordance with section 422B.'';
(4) in paragraph (8)--
(A) by striking ``(A) If'' and inserting ``If'';
and
(B) by striking subparagraph (B); and
(5) in paragraph (9)--
(A) in subparagraph (A), by striking ``maintain a
current minimum reserve level of at least .5 percent''
and inserting ``maintain in the agency's Federal
Student Loan Reserve Fund established under section
422A a current minimum reserve level of at least 0.25
percent'';
(B) in subparagraph (C)--
(i) by striking ``80 percent'' and
inserting ``78 percent'';
(ii) by striking ``, as appropriate,''; and
(iii) by striking ``30 working'' and
inserting ``45 working'';
(C) in subparagraph (E)--
(i) in clause (iv), by inserting ``or''
after the semicolon;
(ii) in clause (v), by striking ``; or''
and inserting a period; and
(iii) by striking clause (vi);
(D) in subparagraph (F), by amending clause (vii)
to read as follows:
``(vii) take any other action the Secretary
determines necessary to avoid disruption of the student
loan program, to ensure the continued availability of
loans made under this part to residents of each State
in which the guaranty agency did business, to ensure
the full honoring of all guarantees issued by the
guaranty agency prior to the Secretary's assumption of
the functions of such agency, and to ensure the proper
servicing of loans guaranteed by the guaranty agency
prior to the Secretary's assumption of the functions of
such agency.''; and
(E) in subparagraph (K), by striking ``and the
progress of the transition from the loan programs under
this part to the direct student loan programs under
part D of this title''.
(d) Payment for Lender Referral Services.--Subsection (e) of
section 428 (20 U.S.C. 1078) is repealed.
(e) Payment of Certain Costs.--Subsection (f) of section 428 (20
U.S.C. 1078) is amended to read as follows:
``(f) Payments of Certain Costs.--
``(1) Payment for certain activities.--
``(A) In general.--The Secretary, for loans
originated on or after October 1, 1998, and in
accordance with the provisions of this paragraph, shall
pay to each guaranty agency, a loan processing and
issuance fee equal to 0.65 percent of the total
principal amount of the loans on which insurance was
issued under this part during such fiscal year by such
agency.
``(B) Payment.--The payment required by
subparagraph (A) shall be paid on a quarterly basis.
The guaranty agency shall be deemed to have a
contractual right against the United States to receive
payments according to the provisions of this
subparagraph. Payments shall be made promptly and
without administrative delay to any guaranty agency
submitting an accurate and complete application
therefore under this subparagraph.''.
(f) Lenders-of-Last-Resort.--Paragraph (3) of section 428(j) (20
U.S.C. 1078(j)) is amended--
(1) in the paragraph heading, by striking ``during
transition to direct lending''; and
(2) in subparagraph (A), by striking ``during the
transition from the Federal Family Education Loan Program under
this part to the Federal Direct Student Loan Program under part
D of this title'';
(g) Default Aversion Assistance.--Subsection (l) of section 428 (20
U.S.C. 1078) is amended to read as follows:
``(l) Default Aversion Assistance.--
``(1) Assistance required.--Upon receipt of a proper
request from the lender not earlier than the 60th nor later
than the 90th day of delinquency, a guaranty agency having an
agreement with the Secretary under subsection (c) shall engage
in default aversion activities designed to prevent the default
by a borrower on a loan covered by such agreement.
``(2) Default prevention fee required.--
``(A) In general.--A guaranty agency, in accordance
with the provisions of this paragraph, may transfer
from the Federal Student Loan Reserve Fund to the
Agency Operating Fund a default prevention fee. Such
fee shall be paid for any loan on which a claim for
default has not been presented that the guaranty agency
successfully brings into current repayment status on or
before the 210th day after the loan becomes 60 days
delinquent.
``(B) Amount.--The default prevention fee shall be
equal to 1 percent of the total unpaid principal and
accrued interest on the loan calculated at the time the
request is submitted by the lender. Such fee shall not
be paid more than once on any loan for which the
guaranty agency averts the default unless the borrower
remained current in payments for at least 24 months
prior to the subsequent delinquency. A guaranty agency
may transfer such fees earned under this subsection not
more frequently than monthly.
``(C) Definition of current repayment status.--For
the purpose of this paragraph, the term `current
repayment status' means that the borrower is not
delinquent, in any respect, in the payment of principal
and interest on the loan at the time the guaranty
agency qualifies for the default prevention fee.''.
(h) State Share of Default Costs.--Subsection (n) of section 428
(20 U.S.C. 1078) is repealed.
SEC. 426. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES.
Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting
after section 428 (20 U.S.C. 1078) the following:
``SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES.
``(a) Voluntary Agreements.--
``(1) Authority.--The Secretary may enter into a voluntary,
flexible agreement, subject to paragraph (2), with guaranty
agencies under this section, in lieu of agreements with a
guaranty agency under subsections (b) and (c) of section 428.
The Secretary may waive or modify any requirement under such
subsections, except that the Secretary may not waive any
statutory requirement pertaining to the terms and conditions
attached to student loans, default claim payments made to
lenders, or the prohibitions on inducements contained in
section 428(b)(3).
``(2) Eligibility.--During fiscal years 1999, 2000, and
2001, the Secretary may enter into a voluntary, flexible
agreement with not more than 6 guaranty agencies that had 1 or
more agreements with the Secretary under subsections (b) and
(c) of section 428 as of the day before the date of enactment
of the Higher Education Amendments of 1998. Beginning in fiscal
year 2002, any guaranty agency or consortium thereof may enter
into a similar agreement with the Secretary.
``(3) Report required.--Not later than September 30, 2001,
the Secretary shall report to the Committee on Labor and Human
Resources of the Senate and the Committee on Education and the
Workforce of the House of Representatives regarding the impact
that the voluntary flexible agreements have had upon program
integrity, program and cost efficiencies, and the availability
and delivery of student financial aid. Such report shall
include--
``(A) a description of each voluntary flexible
agreement and the performance goals established by the
Secretary for each agreement;
``(B) a list of participating guaranty agencies and
the specific statutory or regulatory waivers provided
to each guaranty agency;
``(C) a description of the standards by which each
agency's performance under the agency's voluntary
flexible agreement was assessed and the degree to which
each agency achieved the performance standards; and
``(D) an analysis of the fees paid by the
Secretary, and the costs and efficiencies achieved
under each voluntary agreement.
``(b) Terms of Agreement.--An agreement between the Secretary and a
guaranty agency under this section--
``(1) shall be developed by the Secretary, in consultation
with the guaranty agency, on a case-by case basis;
``(2) may be secured by the parties;
``(3) may include provisions--
``(A) specifying the responsibilities of the
guaranty agency under the agreement, such as--
``(i) administering the issuance of
insurance on loans made under this part on
behalf of the Secretary;
``(ii) monitoring insurance commitments
made under this part;
``(iii) default aversion activities;
``(iv) review of default claims made by
lenders;
``(v) payment of default claims;
``(vi) collection of defaulted loans;
``(vii) adoption of internal systems of
accounting and auditing that are acceptable to
the Secretary, and reporting the result thereof
to the Secretary in a timely manner, and on an
accurate, and auditable basis;
``(viii) timely and accurate collection and
reporting of such other data as the Secretary
may require to carry out the purposes of the
programs under this title;
``(ix) monitoring of institutions and
lenders participating in the program under this
part;
``(x) the performance of other program
functions by the guaranty agency or the
agency's affiliates; and
``(xi) informational outreach to schools
and students in support of access to higher
education;
``(B) regarding the fees the Secretary shall pay,
in lieu of revenues that the guaranty agency may
otherwise receive under this part, to the guaranty
agency under the agreement, and other funds that the
guaranty agency may receive or retain under the
agreement, except that in no case may the cost to the
Secretary of the agreement, as reasonably projected by
the Secretary, exceed the cost to the Secretary, as
similarly projected, in the absence of the agreement;
``(C) regarding the use of net revenues, as
described in the agreement under this section, for such
other activities in support of postsecondary education
as may be agreed to by the Secretary and the guaranty
agency;
``(D) regarding the standards by which the guaranty
agency's performance of the agency's responsibilities
under the agreement will be assessed, and the
consequences for a guaranty agency's failure to achieve
a specified level of performance on one or more
performance standards;
``(E) regarding the circumstances in which a
guaranty agency's agreement under this section may be
ended in advance of the agreement's expiration date;
``(F) regarding such other businesses, previously
purchased or developed with reserve funds, that relate
to the program under this part and in which the
Secretary permits the guaranty agency to engage; and
``(G) such other provisions as the Secretary may
determine to be necessary to protect the United States
from the risk of unreasonable loss and to promote the
purposes of this part; and
``(4) shall provide for uniform lender participation with
the guaranty agency under the terms of the agreement.
``(c) Termination.--At the expiration or early termination of an
agreement under this section, the Secretary shall reinstate the
guaranty agency's prior agreements under subsections (b) and (c) of
section 428, subject only to such additional requirements as the
Secretary determines to be necessary in order to ensure the efficient
transfer of responsibilities between the agreement under this section
and the agreements under subsections (b) and (c) of section 428, and
including the guaranty agency's compliance with reserve requirements
under sections 422 and 428.''.
SEC. 427. FEDERAL PLUS LOANS.
Section 428B (20 U.S.C. 1078-2) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Authority To Borrow.--
``(1) Authority and eligibility.--Parents of a dependent
student shall be eligible to borrow funds under this section in
amounts specified in subsection (b), if--
``(A) the parents do not have an adverse credit
history as determined pursuant to regulations
promulgated by the Secretary; and
``(B) the parents meet such other eligibility
criteria as the Secretary may establish by regulation,
after consultation with guaranty agencies, eligible
lenders, and other organizations involved in student
financial assistance.
``(2) Terms, conditions, and benefits.--Except as provided
in subsections (c), (d), and (e), loans made under this section
shall have the same terms, conditions, and benefits as all
other loans made under this part.
``(3) Special rule.--Whenever necessary to carry out the
provisions of this section, the terms ``student'' and
``borrower'' as used in this part shall include a parent
borrower under this section.''; and
(2) by adding at the end the following:
``(f) Verification of Immigration Status and Social Security
Number.--A parent who wishes to borrow funds under this section shall
be subject to verification of the parent's--
``(1) immigration status in the same manner as immigration
status is verified for students under section 484(g); and
``(2) social security number in the same manner as social
security numbers are verified for students under section
484(p).''.
SEC. 428. FEDERAL CONSOLIDATION LOANS.
Section 428C(a)(3) (20 U.S.C. 1078-3(a)(3)) is amended--
(1) by amending subparagraph (A) to read as follows: ``(A)
For the purpose of this section, the term `eligible borrower'
means a borrower who--
``(i) is not subject to a judgment secured through
litigation or an order for wage garnishment under
section 488A; or
``(ii) at the time of application for a
consolidation loan--
``(I) is in repayment status;
``(II) is in a grace period preceding
repayment; or
``(III) is a defaulted borrower who has
made arrangements to repay the obligation on
the defaulted loans satisfactory to the holders
of the defaulted loans.''; and
(2) in subparagraph (B)(i)--
(A) in subclause (I), by striking ``and'' after the
semicolon;
(B) by redesignating subclause (II) as subclause
(III);
(C) by inserting after subclause (I) the following:
``(II) with respect to eligible student loans
received prior to the date of consolidation that the
borrower may wish to include with eligible loans
specified in subclause (I) in a later consolidation
loan; and''; and
(D) in subclause (III) (as redesignated by
subparagraph (B)--
(i) by striking ``that loans'' and
inserting ``with respect to loans''; and
(ii) by inserting ``that'' before ``may be
added''.
SEC. 429. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.
Section 428G (20 U.S.C. 1078G) is amended--
(1) in subsection (a)(1), by striking ``The proceeds'' and
inserting ``Except for a loan made for the final period of
enrollment, that is less than an academic year, in a student's
baccalaureate program of study, at an institution with a cohort
default rate (as calculated under section 435(m)) that is 5
percent or less, the proceeds''; and
(2) in subsection (b)(1), by striking ``The first'' and
inserting ``Except for a loan made to a student borrower
entering an institution with a cohort default rate (as
calculated under section 435(m)) of less than 5 percent, the
first''.
SEC. 430. DEFAULT REDUCTION PROGRAM.
The heading for subsection (b) of section 428F (20 U.S.C. 1078-6)
is amended by striking ``Special Rule'' and inserting ``Satisfactory
Repayment Arrangements To Renew Eligibility''.
SEC. 431. UNSUBSIDIZED LOANS.
Section 428H (20 U.S.C. 1078-8) is amended--
(1) by amending subsection (b) to read as follows:
``(b) Eligible Borrowers.--Any student meeting the requirements for
student eligibility under section 484 (including graduate and
professional students as defined in regulations promulgated by the
Secretary) shall be entitled to borrow an unsubsidized Stafford loan if
the eligible institution at which the student has been accepted for
enrollment, or at which the student is in attendance, has--
``(1) determined and documented the student's need for the
loan based on the student's estimated cost of attendance (as
determined under section 472) and the student's estimated
financial assistance, including a loan which qualifies for
interest subsidy payments under section 428; and
``(2) provided the lender a statement--
``(A) certifying the eligibility of the student to
receive a loan under this section and the amount of the
loan for which such student is eligible, in accordance
with subsection (c); and
``(B) setting forth a schedule for disbursement of
the proceeds of the loan in installments, consistent
with the requirements of section 428G.'';
(2) in subsection (d)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A)--
(I) by inserting ``, as defined in
section 481(d)(2),'' after ``academic
year''; and
(II) by striking ``or in any period
of 7 consecutive months, whichever is
longer,'';
(ii) in subparagraph (C), by inserting
``and'' after the semicolon; and
(iii) by inserting before the matter
following subparagraph (C) the following:
``(D) in the case of a student enrolled in
coursework specified in sections 484(b)(3)(B) and
484(b)(4)(B)--
``(i) $4,000 for coursework necessary for
enrollment in an undergraduate degree or
certificate program, and $5,000 for coursework
necessary for enrollment in a graduate or
professional program; and
``(ii) $5,000 for coursework necessary for
a professional credential or certification from
a State required for employment as a teacher in
an elementary or secondary school;''; and
(B) in paragraph (3), by adding at the end the
following: ``The maximum aggregate amount shall not
include interest capitalized from an in-school
period.''; and
(3) in subsection (e)(6), by striking ``10 year repayment
period under section 428(b)(1)(D)'' and inserting ``repayment
period under section 428(b)(9)''.
SEC. 432. LOAN FORGIVENESS FOR TEACHERS.
Section 428J (20 U.S.C. 1078-10) is amended to read as follows:
``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching profession.
``(b) Program Authorized.--The Secretary is authorized to carry out
a program, through the holder of the loan, of assuming the obligation
to repay a loan made under section 428 that is eligible for interest
subsidy, for any new borrower on or after the date of enactment of the
Higher Education Amendments of 1998, who--
``(1) has been employed as a full-time teacher for 3
consecutive complete school years--
``(A) in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins loan
recipients who teach in such schools;
``(B) if employed as a secondary school teacher, is
teaching a subject area that is relevant to the
borrower's academic major as certified by the chief
administrative officer of the public or nonprofit
private secondary school in which the borrower is
employed; and
``(C) if employed as an elementary school teacher,
has demonstrated, in accordance with State teacher
certification or licensing requirements and as
certified by the chief administrative officer of the
public or nonprofit private elementary school in which
the borrower is employed, knowledge and teaching skills
in reading, writing, mathematics and other areas of the
elementary school curriculum; and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(c) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(d) Loan Repayment During Continuing Teaching Service.--
``(1) In general.--The Secretary shall assume the
obligation to repay through reimbursement to the holder--
``(A) 30 percent of the total outstanding amount
and applicable interest of subsidized Federal Stafford
loans owed by the student borrower after the completion
of the fourth or fifth complete school year of service
described in subsection (b);
``(B) 40 percent of such total amount after the
completion of the sixth complete school year of such
service; and
``(C) a total amount for any borrower that shall
not exceed $10,000.
``(2) Construction.--Nothing in this section shall be
construed to authorize any refunding of any repayment of a
loan.
``(e) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b) is not available before May 1 of any
year, the Secretary may use the list for the year preceding the year
for which the determination is made to make such service determination.
``(f) Continued Eligibility.--Any teacher who performs service in a
school that--
``(1) meets the requirements of subsection (b)(1)(A) in any
year during such service; and
``(2) in a subsequent year fails to meet the requirements
of such subsection, may continue to teach in such school and
shall be eligible for loan forgiveness pursuant to subsection
(b).''.
SEC. 433. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
Part B (20 U.S.C. 1071 et seq.) is amended by inserting after
section 428J (as added by section 432) (20 U.S.C. 1078-10) the
following:
``SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
``(a) Purpose.--It is the purpose of this section--
``(1) to bring more highly trained individuals into the
early child care profession; and
``(2) to keep more highly trained child care providers in
the early child care field for longer periods of time.
``(b) Definitions.--In this section:
``(1) Child care facility.--The term `child care facility'
means a facility, including a home, that--
``(A) provides child care services; and
``(B) meets applicable State or local government
licensing, certification, approval, or registration
requirements, if any.
``(2) Child care services.--The term `child care services'
means activities and services provided for the education and
care of children from birth through age 5 by an individual who
has a degree in early childhood education.
``(3) Degree.--The term `degree' means an associate's or
bachelor's degree awarded by an institution of higher
education.
``(4) Early childhood education.--The term `early childhood
education' means education in the areas of early child
education, child care, or any other educational area related to
child care that the Secretary determines appropriate.
``(5) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101.
``(c) Demonstration Program.--
``(1) In general.--The Secretary may carry out a
demonstration program of assuming the obligation to repay,
pursuant to subsection (d), a loan made, insured or guaranteed
under this part or part D (excluding loans made under sections
428B and 428C) for any new borrower after the date of enactment
of the Higher Education Amendments of 1998, who--
``(A) completes a degree in early childhood
education;
``(B) obtains employment in a child care facility;
and
``(C) is working full-time and is earning an amount
which does not exceed the greater of an amount equal to
100 percent of the poverty line for a family of 2 as
determined in accordance with section 673(2) of the
Community Services Block Grant Act.
``(2) Award basis; priority.--
``(A) Award basis.--Subject to subparagraph (B),
loan repayment under this section shall be on a first-
come, first-served basis and subject to the
availability of appropriations.
``(B) Priority.--The Secretary shall give priority
in providing loan repayment under this section for a
fiscal year to student borrowers who received loan
repayment under this section for the preceding fiscal
year.
``(3) Regulations.--The Secretary is authorized to
prescribe such regulations as may be necessary to carry out the
provisions of this section.
``(d) Loan Repayment.--
``(1) In general.--The Secretary shall assume the
obligation to repay--
``(A) after the second year of employment described
in subparagraphs (B) and (C) of subsection (c)(1), 20
percent of the total amount of all loans made after
date of enactment of the Higher Education Amendments of
1998, to a student under this part or part D;
``(B) after the third year of such employment, 20
percent of the total amount of all such loans; and
``(C) after each of the fourth and fifth years of
such employment, 30 percent of the total amount of all
such loans.
``(2) Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a loan
made under this part or part D.
``(3) Interest.--If a portion of a loan is repaid by the
Secretary under this section for any year, the proportionate
amount of interest on such loan which accrues for such year
shall be repaid by the Secretary.
``(4) Special rule.--In the case where a student borrower
who is not participating in loan repayment pursuant to this
section returns to an institution of higher education after
graduation from an institution of higher education for the
purpose of obtaining a degree in early childhood education, the
Secretary is authorized to assume the obligation to repay the
total amount of loans made under this part or part D incurred
for a maximum of two academic years in returning to an
institution of higher education for the purpose of obtaining a
degree in early childhood education. Such loans shall only be
repaid for borrowers who qualify for loan repayment pursuant to
the provisions of this section, and shall be repaid in
accordance with the provisions of paragraph (1).
``(5) Ineligibility of national service award recipients.--
No student borrower may, for the same volunteer service,
receive a benefit under both this section and subtitle D of
title I of the National and Community Service Act of 1990 (42
U.S.C. 12601 et seq.).
``(e) Repayment to Eligible Lenders.--The Secretary shall pay to
each eligible lender or holder for each fiscal year an amount equal to
the aggregate amount of loans which are subject to repayment pursuant
to this section for such year.
``(f) 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
require.
``(2) Conditions.--An eligible individual may apply for
loan repayment under this section after completing each year of
qualifying employment. The borrower shall receive forbearance
while engaged in qualifying employment unless the borrower is
in deferment while so engaged.
``(g) Evaluation.--
``(1) In general.--The Secretary shall conduct, by grant or
contract, an independent national evaluation of the impact of
the demonstration program assisted under this section on the
field of early childhood education.
``(2) Competitive basis.--The grant or contract described
in subsection (b) shall be awarded on a competitive basis.
``(3) Contents.--The evaluation described in this
subsection shall--
``(A) determine the number of individuals who were
encouraged by the demonstration program assisted under
this section to pursue early childhood education;
``(B) determine the number of individuals who
remain employed in a child care facility as a result of
participation in the program;
``(C) identify the barriers to the effectiveness of
the program;
``(D) assess the cost-effectiveness of the program
in improving the quality of--
``(i) early childhood education; and
``(ii) child care services;
``(E) identify the reasons why participants in the
program have chosen to take part in the program;
``(F) identify the number of individuals
participating in the program who received an
associate's degree and the number of such individuals
who received a bachelor's degree; and
``(G) identify the number of years each individual
participates in the program.
``(4) Interim and final evaluation reports.--The Secretary
shall prepare and submit to the President and the Congress such
interim reports regarding the evaluation described in this
subsection as the Secretary deems appropriate, and shall
prepare and so submit a final report regarding the evaluation
by January 1, 2002.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $10,000,000 for fiscal year
1999, and such sums as may be necessary for each of the 4 succeeding
fiscal years.''.
SEC. 434. COMMON FORMS AND FORMATS.
Section 432 (20 U.S.C. 1082) is amended--
(1) in subsection (m)(1)--
(A) in subparagraph (A), by striking ``a common
application form and promissory note'' and inserting
``common application forms and promissory notes, or
multiyear promissory notes,'';
(B) by striking subparagraph (C);
(C) by redesignating subparagraph (D) as
subparagraph (C); and
(D) in subparagraph (C) (as redesignated by
subparagraph (C))--
(i) by inserting ``, application and
other'' after ``electronic''; and
(ii) by adding at the end the following:
``Guaranty agencies, borrowers, and lenders may
use electronically printed versions of common
forms approved for use by the Secretary.''; and
(2) in subsection (p), by striking ``State postsecondary
reviewing entities designated under subpart 1 of part H,''.
SEC. 435. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
Section 433 (20 U.S.C. 1083) is amended--
(1) in subsection (a), by amending the matter preceding
paragraph (1) to read as follows:
``(a) Required Disclosure Before Disbursement.--Each eligible
lender shall, at or prior to the time such lender disburses a loan that
is insured or guaranteed under this part (other than a loan made under
section 428C), provide thorough and accurate loan information on such
loan to the borrower. Any disclosure required by this subsection may be
made by an eligible lender by written or electronic means, including as
part of the application material provided to the borrower, as part of
the promissory note evidencing the loan, or on a separate written form
provided to the borrower. Each lender shall provide a telephone number,
and may provide an electronic address, to each borrower through which
additional loan information can be obtained. The disclosure shall
include--''; and
(2) in subsection (b), by amending the matter preceding
paragraph (1) to read as follows:
``(b) Required Disclosure Before Repayment.--Each eligible lender
shall, at or prior to the start of the repayment period of the student
borrower on loans made, insured, or guaranteed under this part,
disclose to the borrower by written or electronic means the information
required under this subsection. Each eligible lender shall provide a
telephone number, and may provide an electronic address, to each
borrower through which additional loan information can be obtained. For
any loan made, insured, or guaranteed under this part, other than a
loan made under section 428B or 428C, such disclosure required by this
subsection shall be made not less than 30 days nor more than 240 days
before the first payment on the loan is due from the borrower. The
disclosure shall include--''.
SEC. 436. DEFINITIONS.
(a) Eligible Institution.--Section 435(a) (20 U.S.C. 1085(a)) is
amended--
(1) in paragraph (2)--
(A) by adding after the matter following
subparagraph (A)(ii) the following:
``If an institution continues to participate in a program under
this part, and the institution's appeal of the loss of
eligibility is unsuccessful, the institution shall be required
to pay to the Secretary an amount equal to the amount of
interest, special allowance, reinsurance, and any related
payments made by the Secretary (or which the Secretary is
obligated to make) with respect to loans made under this part
to students attending, or planning to attend, that institution
during the pendency of such appeal. In order to continue to
participate during an appeal under this paragraph, the
institution shall provide a letter of credit in favor of the
Secretary or other third-party financial guarantees
satisfactory to the Secretary in an amount determined by the
Secretary to be sufficient to satisfy the institution's
potential liability on such loans under the preceding
sentence.''; and
(B) by amending subparagraph (C) to read as
follows:
``(C)(i) This paragraph shall not apply to any institution
described in clause (ii), and any such institution that exceeds
the threshold percentage in subparagraph (A)(ii) for 2
consecutive years shall submit to the Secretary a default
management plan satisfactory to the Secretary and containing
criteria designed, in accordance with the regulations of the
Secretary, to demonstrate continuous improvement by the
institution in the institution's cohort default rate. If the
institution fails to submit the required plan, or to satisfy
the criteria in the plan, the institution shall be subject to a
loss of eligibility in accordance with this paragraph, except
as the Secretary may otherwise specify in regulations.
``(ii) An institution referred to in clause (i) is--
``(I) a part B institution within the meaning of
section 322(2);
``(II) a Tribally Controlled College or University
within the meaning of section 2(a)(4) of the Tribally
Controlled College or University Assistance Act of
1978; or
``(III) a Navajo Community College under the Navajo
Community College Act.'';
(2) in the matter following subparagraph (C)--
(A) by inserting ``for a reasonable period of time,
not to exceed 30 days,'' after ``access''; and
(B) by striking ``of the affected guaranty agencies
and loan servicers for a reasonable period of time, not
to exceed 30 days'' and inserting ``used by a guaranty
agency in determining whether to pay a claim on a
defaulted loan''; and
(3) by adding at the end the following:
``(4) Participation rate index.--
``(A) In general.--An institution that demonstrates
to the Secretary that the institution's participation
rate index is equal to or less than 0.0375 for any of
the 3 applicable participation rate indices shall not
be subject to paragraph (2). The participation rate
index shall be determined by multiplying the
institution's cohort default rate for loans under part
B or D, or weighted average cohort default rate for
loans under parts B and D, by the percentage of the
institution's regular students, enrolled on at least a
half-time basis, who received a loan made under part B
or D for a 12-month period ending during the 6 months
immediately preceding the fiscal year for which the
cohort of borrowers used to calculate the institution's
cohort default rate is determined.
``(B) Data.--An institution shall provide the
Secretary with sufficient data to determine the
institution's participation rate index within 30 days
after receiving an initial notification of the
institution's draft cohort default rate.
``(C) Notification.--Prior to publication of a
final cohort default rate for an institution that
provides the data described in subparagraph (B), the
Secretary shall notify the institution of the
institution's compliance or noncompliance with
subparagraph (A).''.
(b) Eligible Lender.--Section 435(d)(1)(A)(ii) (20 U.S.C.
1085(d)(1)(A)(ii) is amended--
(1) by striking ``or'' after ``1992,''; and
(2) by inserting before the semicolon the following: ``, or
(III) it is a bank (as defined in section 3(a)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(a)(1)) that is a
wholly owned subsidiary of a nonprofit foundation, the
foundation is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under section
501(1) of such Code, and the bank makes loans under this part
only to undergraduate students who are age 22 or younger and
has a portfolio of such loans that is not more than
$5,000,000''.
(c) Cohort Default Rate.--Section 435(m)(1)(B) (20 U.S.C.
1085(m)(1)(B)) is amended by striking ``insurance, and, in considering
appeals with respect to cohort default rates pursuant to subsection
(a)(3), exclude'' and inserting ``insurance. In considering appeals
with respect to cohort default rates pursuant to subsection (a)(3), the
Secretary shall exclude, from the calculation of the number of students
who entered repayment and from the calculation of the number of
students who default,''.
SEC. 437. DELEGATION OF FUNCTIONS.
Section 436 (20 U.S.C. 1086) is amended to read as follows:
``SEC. 436. DELEGATION OF FUNCTIONS.
``(a) In General.--An eligible lender or guaranty agency that
contracts with another entity to perform any of the lender's or
agency's functions under this title, or otherwise delegates the
performance of such functions to such other entity--
``(1) shall not be relieved of the lender's or agency's
duty to comply with the requirements of this title; and
``(2) shall monitor the activities of such other entity for
compliance with such requirements.
``(b) Special Rule.--A lender that holds a loan made under part B
in the lender's capacity as a trustee is responsible for complying with
all statutory and regulatory requirements imposed on any other holder
of a loan made under this part.''.
SEC. 438. SPECIAL ALLOWANCES.
(a) Amendments.--Section 438 (20 U.S.C. 1087-1) is amended--
(1) in subsection (c), by amending paragraph (1) to read as
follows:
``(1) Deduction from interest and special allowance
subsidies.--(A) Notwithstanding subsection (b), the Secretary
shall collect the amount the lender is authorized to charge as
an origination fee in accordance with paragraph (2) of this
subsection--
``(i) by reducing the total amount of interest and
special allowance payable under section 428(a)(3)(A)
and subsection (b) of this section, respectively, to
any holder; or
``(ii) directly from the holder of the loan, if the
lender fails or is not required to bill the Secretary
for interest and special allowance or withdraws from
the program with unpaid loan origination fees.
``(B) If the Secretary collects the origination fee under
this subsection through the reduction of interest and special
allowance, and the total amount of interest and special
allowance payable under section 428(a)(3)(A) and subsection (b)
of this section, respectively, is less than the amount the
lender was authorized to charge borrowers for origination fees
in that quarter, the Secretary shall deduct the excess amount
from the subsequent quarters' payments until the total amount
has been deducted.'';
(2) in subsection (d), by amending paragraph (1) to read as
follows:
``(1) Deduction from interest and special allowance
subsidies.--
``(A) In general.--Notwithstanding subsection (b),
the Secretary shall collect a loan fee in an amount
determined in accordance with paragraph (2)--
``(i) by reducing the total amount of
interest and special allowance payable under
section 428(a)(3)(A) and subsection (b),
respectively, to any holder of a loan; or
``(ii) directly from the holder of the
loan, if the lender--
``(I) fails or is not required to
bill the Secretary for interest and
special allowance payments; or
``(II) withdraws from the program
with unpaid loan fees.
``(B) Special rule.--If the Secretary collects loan
fees under this subsection through the reduction of
interest and special allowance payments, and the total
amount of interest and special allowance payable under
section 428(a)(3)(A) and subsection (b), respectively,
is less than the amount of such loan fees, then the
Secretary shall deduct the amount of the loan fee
balance from the amount of interest and special
allowance payments that would otherwise be payable, in
subsequent quarterly increments until the balance has
been deducted.''; and
(3) in subsection (e)--
(A) by striking paragraphs (1) and (2); and
(B) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively.
(b) Conforming Amendment.--Section 432(f)(1)(D) is amended by
striking ``required to file a plan for doing business under section
438(d)'' and inserting ``that meets the requirements of section
438(e)''.
SEC. 439. STUDY OF MARKET-BASED MECHANISMS FOR DETERMINING STUDENT LOAN
INTEREST RATES.
(a) Study Required.--
(1) In general.--The Secretary of the Treasury shall
conduct a study of the feasibility of employing market-based
mechanisms, including some form of auction, for determining
student loan interest rates under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.). The study shall
include--
(A) analysis of the potential impact of the
mechanisms on the delivery of student financial aid;
(B) analysis of the implications of the mechanisms
with respect to student and institutional access to
student loan capital;
(C) analysis of the potential impact of the
mechanisms on the costs of the programs under such
title for students and the Federal Government; and
(D) a plan for structuring and implementing the
mechanisms in such a manner that ensures the cost-
effective availability of student loans for students
and their families.
(b) Consultation.--In conducting the study described in paragraph
(1), the Secretary shall consult with lenders, secondary markets,
guaranty agencies, institutions of higher education, student loan
borrowers, and other participants in the student loan programs under
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
(c) Report to Congress.--The Secretary of the Treasury shall report
to the Committee on Labor and Human Resources of the Senate, and the
Committee on Education and the Workforce of the House of
Representatives not later than September 30, 1999, regarding the
results of the study described in subsection (a).
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY SERVICES.
Section 441 (20 U.S.C. 2751) is amended--
(1) in subsection (b), by striking ``$800,000,000 for
fiscal year 1993'' and inserting ``$900,000,000 for fiscal year
1999''; and
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``(including
child care services provided on campus)'' after ``child
care''; and
(B) in paragraph (3), by inserting ``, including
students with disabilities who are enrolled at the
institution'' before the semicolon.
SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
Section 443(b) (20 U.S.C. 2753(b)) is amended--
(1) in paragraph (1), by inserting ``, including
internships or research assistanceships as determined by the
Secretary,'' after ``part-time employment'';
(2) by amending paragraph (3) to read as follows:
``(3) provide that in the selection of students for
employment under such work-study program, only students who
demonstrate financial need in accordance with part F of this
title and meet the requirements of section 484 will be
assisted, except that if the institution's grant under this
part is directly or indirectly based in part on the financial
need demonstrated by students who are (A) attending the
institution on less than a full-time basis, or (B) independent
students, a reasonable portion of the allocation shall be made
available to such students;'';
(3) in paragraph (5)--
(A) by striking ``provide that'' and inserting
``(A) provide that'';
(B) by striking ``1993-1994'' and inserting ``1999-
2000'';
(C) by inserting ``and'' after the semicolon; and
(D) by adding at the end the following:
``(B) provide that the Federal share of the compensation of
students employed in community service shall not exceed 90
percent;''; and
(4) in paragraph (6), by striking ``, and to make'' and all
that follows through ``such employment''.
SEC. 443. WORK COLLEGES.
Section 448 (20 U.S.C. 2756b) is amended--
(1) in subsection (b)(2)--
(A) in subparagraph (C), by striking ``and'' after
the semicolon;
(B) in subparagraph (D)(ii), by striking the period
and inserting a semicolon; and
(C) by adding at the end the following:
``(E) coordinate and carry out joint projects and
activities to promote work service learning; and
``(F) carry out a comprehensive, longitudinal study
of student academic progress and academic and career
outcomes, relative to student self-sufficiency in
financing their higher education, repayment of student
loans, continued community service, kind and quality of
service performed, and career choice and community
service selected after graduation.''; and
(2) in subsection (f), by striking ``$5,000,000 for fiscal
year 1993'' and inserting ``$7,000,000 for fiscal year 1999''.
PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
SEC. 451. SELECTION OF INSTITUTIONS.
Section 453(c) (20 U.S.C. 1087c(c)) is amended--
(1) in paragraph (2)--
(A) in the paragraph heading, by striking
``Transition'';
(B) by striking subparagraph (E); and
(C) by redesignating subparagraphs (F), (G), and
(H) as subparagraphs (E), (F), and (G), respectively;
and
(2) in paragraph (3)--
(A) in the paragraph heading, by striking ``After
transition''; and
(B) by striking ``For academic year 1995-1996 and
subsequent academic years, the'' and inserting ``The''.
SEC. 452. TERMS AND CONDITIONS.
(a) Interest Rates.--Section 455(b) (20 U.S.C. 1087e(b)) is amended
to read as follows:
``(b) Interest Rate.--
``(1) Rates for fdsl and fdusl.--For Federal Direct
Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/
Ford Loans for which the first disbursement is made on or after
July 1, 1998, the applicable rate of interest shall, during any
12-month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--
``(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
``(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
``(2) In school and grace period rules.--With respect to
any Federal Direct Stafford/Ford Loan or Federal Direct
Unsubsidized Stafford/Ford Loan for which the first
disbursement is made on or after July 1, 1998, the applicable
rate of interest for interest which accrues--
``(A) prior to the beginning of the repayment
period of the loan; or
``(B) during the period in which principal need not
be paid (whether or not such principal is in fact paid)
by reason of a provision described in section
428(b)(1)(M) or 427(a)(2)(C),
shall be determined under paragraph (1) by substituting `1.7
percent' for `2.3 percent'.
``(3) PLUS loans.--With respect to Federal Direct PLUS Loan
for which the first disbursement is made on or after July 1,
1998, the applicable rate of interest shall be determined under
paragraph (1)--
``(A) by substituting `3.1 percent' for `2.3
percent'; and
``(B) by substituting `9.0 percent' for `8.25
percent'.
``(4) Publication.--The Secretary shall determine the
applicable rates of interest under this subsection after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as
practicable after the date of the determination.
``(5) Repayment incentives.--
``(A) In general.--Notwithstanding any other
provision of this part, the Secretary is authorized to
prescribe by regulation such reductions in the interest
rate paid by a borrower of a loan made under this part
as the Secretary determines appropriate to encourage
on-time repayment of the loan. Such reductions may be
offered only if the Secretary determines the reductions
are cost neutral and in the best financial interest of
the Federal Government. Any increase in subsidy costs
resulting from such reductions shall be completely
offset by corresponding savings in funds available for
the William D. Ford Federal Direct Loan Program in that
fiscal year from section 458 and other administrative
accounts.
``(B) Accountability.--The Secretary shall ensure
the cost neutrality of such reductions by obtaining an
official report from the Director of the Office of
Management and Budget and the Director of the
Congressional Budget Office that any such reductions
will be completely cost neutral. The reports shall be
transmitted to the Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives not
less than 60 days prior to the publication of
regulations proposing such reductions.''.
(b) Effective date.--The amendments made by this section shall
apply with respect to any loan made under part D of title IV of the
Higher Education Act of 1965 for which the first disbursement is made
on or after July 1, 1998.
SEC. 453. CONTRACTS.
Section 456(b) (20 U.S.C. 1087f(b)) is amended--
(1) in paragraph (3), by inserting ``and'' after the
semicolon;
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).
SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES.
Section 458 (20 U.S.C. 1087h) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Administrative Expenses.--
``(1) In general.--Each fiscal year there shall be
available to the Secretary, from funds not otherwise
appropriated, funds to be obligated for--
``(A) administrative costs under this part and part
B, including the costs of the direct student loan
programs under this part; and
``(B) account maintenance fees payable to guaranty
agencies under part B and calculated in accordance with
paragraph (2), not to exceed (from such funds not
otherwise appropriated) $626,000,000 in fiscal year
1999, $726,000,000 in fiscal year 2000, $770,000,000 in
fiscal year 2001, $780,000,000 in fiscal year 2002, and
$795,000,000 in fiscal year 2003.
``(2) Account maintenance fees.--Account maintenance fees
under subparagraph (B) shall be paid quarterly and deposited in
the Agency Operating Fund established under section 422B.
``(3) Carryover.--The Secretary may carry over funds made
available under this section to a subsequent fiscal year.'';
and
(2) by amending subsection (b) to read as follows:
``(b) Calculation Basis.--Account maintenance fees payable to
guaranty agencies under paragraph (1)(B) shall be calculated--
``(1) for fiscal years 1999 and 2000, on the basis of 0.12
percent of the original principal amount of outstanding loans
on which insurance was issued under part B; and
``(2) for fiscal year 2001, 2002, and 2003, on the basis of
0.10 percent of the original principal amount of outstanding
loans on which insurance was issued under part B.''.
SEC. 455. LOAN CANCELLATION FOR TEACHERS.
Part D of title IV (20 U.S.C. 1087a et seq.) is amended by adding
at the end the following:
``SEC. 459. LOAN CANCELLATION FOR TEACHERS.
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching profession.
``(b) Program Authorized.--The Secretary is authorized to carry out
a program of canceling the obligation to repay a Federal Direct
Stafford/Ford Loan made under this part that is eligible for an
interest subsidy, for any new borrower on or after the date of
enactment of the Higher Education Amendments of 1998, who--
``(1) has been employed as a full-time teacher for 3
consecutive complete school years--
``(A) in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins loan
recipients who teach in such schools;
``(B) if employed as a secondary school teacher, is
teaching a subject area that is relevant to the
borrower's academic major as certified by the chief
administrative officer of the public or non-profit
private secondary school in which the borrower is
employed; and
``(C) if employed as an elementary school teacher,
has demonstrated, in accordance with State teacher
certification or licensing requirements and as
certified by the chief administrative officer of the
public or nonprofit private elementary school in which
the borrower is employed, knowledge and teaching skills
in reading, writing, mathematics and other areas of the
elementary school curriculum; and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(c) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(d) Loan Cancellation During Continuing Teaching Service.--
``(1) In general.--The Secretary shall cancel the
obligation to repay--
``(A) 30 percent of the total outstanding amount
and applicable interest of subsidized Federal Direct
Stafford/Ford loans owed by the student borrower after
the completion of the fourth or fifth complete school
year of service described in subsection (b);
``(B) 40 percent of such total amount after the
completion of the sixth complete school year of such
service; and
``(C) a total amount for any borrower that shall
not exceed $ 10,000.
``(2) Construction.--Nothing in this section shall be
construed to authorize any refunding of any canceled loan.
``(e) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b) is not available before May 1 of any
year, the Secretary may use the list for the year preceding the year
for which the determination is made to make such service determination.
``(f) Continued Eligibility.--Any teacher who performs service in a
school that--
``(1) meets the requirements of subsection (b)(1)(A) in any
year during such service; and
``(2) in a subsequent year fails to meet the requirements
of such subsection, may continue to teach in such school and
shall be eligible for loan cancellation pursuant to subsection
(b).''.
PART E--FEDERAL PERKINS LOANS
SEC. 461. AUTHORIZATION OF APPROPRIATIONS.
Subsection (b) of section 461 (20 U.S.C. 1087aa) is amended--
(1) in paragraph (1), by striking ``1993'' and inserting
``1999''; and
(2) in paragraph (2), by striking ``1997'' each place the
term appears and inserting ``2003''.
SEC. 462. ALLOCATION OF FUNDS.
(a) Amendments.--Section 462 (20 U.S.C. 1087bb) is amended--
(1) in the matter preceding subparagraph (A) of subsection
(d)(3), by striking ``the Secretary, for'' and all that follows
through ``years,'';
(2) by amending subsection (f) to read as follows:
``(f) Default Penalties.--
``(1) In general.--For fiscal year 1998 and any succeeding
fiscal year, any institution with a cohort default rate (as
defined under subsection (h)) that equals or exceeds 25 percent
shall have a default penalty of zero.
``(2) Ineligibility.--
``(A) In general.--For fiscal year 1998 and any
succeeding fiscal year, any institution with a cohort
default rate (as defined in subsection (h)) that equals
or exceeds 50 percent for each of the 3 most recent
years for which data are available shall not be
eligible to participate in a program under this part
for the fiscal year for which the determination is made
and the 2 succeeding fiscal years, unless, within 30
days of receiving notification from the Secretary of
the loss of eligibility under this paragraph, the
institution appeals the loss of eligibility to the
Secretary. The Secretary shall issue a decision on any
such appeal within 45 days after the submission of the
appeal. Such decision may permit the institution to
continue to participate in a program under this part
if--
``(i) the institution demonstrates to the
satisfaction of the Secretary that the
calculation of the institution's cohort default
rate is not accurate, and that recalculation
would reduce the institution's cohort default
rate for any of the 3 fiscal years below 50
percent; or
``(ii) there are, in the judgment of the
Secretary, exceptional mitigating circumstances
such as a small number of borrowers entering
repayment, that would make the application of
this subparagraph inequitable.
``(B) Continued participation.--During an appeal
under subparagraph (A), the Secretary may permit the
institution to continue to participate in a program
under this part.
``(C) Definition.--For the purposes of subparagraph
(A), the term `loss of eligibility' shall be defined as
the mandatory liquidation of an institution's student
loan fund, and assignment of the institution's
outstanding loan portfolio to the Secretary.'';
(3) by amending paragraph (1) of subsection (g) to read as
follows: ``(1) For award year 1998 and subsequent years, the
maximum cohort default rate is 25 percent.''; and
(4) in subsection (h)--
(A) in the subsection heading, by striking
``Definitions of Default Rate and'' and inserting
``Definition of'';
(B) by striking paragraphs (1) and (2);
(C) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively;
(D) in paragraph (1) (as redesignated by
subparagraph (C))--
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraphs (C)
through (G) as subparagraphs (B) through (F),
respectively; and
(E) in the matter preceding subparagraph (A) of
paragraph (2) (as redesignated by subparagraph (C)), by
striking ``A loan'' and inserting ``For purposes of
calculating the cohort default rate under this
subsection, a loan''.
(b) Conforming Amendments.--Section 462 (20 U.S.C. 1087bb) is
amended--
(1) in the matter following paragraphs (1)(B) and
(2)(D)(ii) of subsection (a), by inserting ``cohort'' before
``default'' each place the term appears;
(2) in the matter following paragraphs (2)(B) and (3)(C) of
subsection (c), by inserting ``cohort'' before ``default'' each
place the term appears;
(3) in subsection (e)(2), by inserting ``cohort'' before
``default''; and
(4) in subsection (h)(1)(F) (as redesignated by
subparagraphs (C) and (D)(ii) of subsection (a)(4)), by
inserting ``cohort'' before ``default''.
SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.
Section 463 (20 U.S.C. 1087cc) is amended--
(1) by amending subparagraph (B) of subsection (a)(2) to
read as follows:
``(B) a capital contribution by an institution in
an amount equal to one-third of the Federal capital
contributions described in subparagraph (A);'';
(2) in subsection (c)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A), by striking ``by the Secretary'' and all
that follows through ``of--'' and inserting
``by the Secretary or an institution, as the
case may be, to such organizations, with
respect to any loan held by the Secretary or
the institution, respectively, of--'';
(ii) by amending subparagraph (A) to read
as follows:
``(A) the date of disbursement and the amount of
such loans made to any borrower under this part at the
time of disbursement of the loan;'';
(iii) in subparagraph (B)--
(I) by inserting ``the repayment
and'' after ``concerning''; and
(II) by striking ``any defaulted''
and inserting ``such''; and
(iv) in subparagraph (C), by inserting ``,
or upon cancellation or discharge of the
borrower's obligation on the loan for any
reason'' before the period;
(B) in paragraph (3)--
(i) in the matter preceding subparagraph
(A), by striking ``until--'' and inserting
``until the loan is paid in full.''; and
(ii) by striking subparagraphs (A) and (B);
and
(C) by amending paragraph (4) to read as follows:
``(4)(A) Except as provided in subparagraph (B), an
institution of higher education, after consultation with the
Secretary and pursuant to the agreements entered into under
paragraph (1), shall disclose at least annually to any credit
bureau organization with which the Secretary has such an
agreement the information set forth in paragraph (2), and shall
disclose promptly to such credit bureau organization any
changes to the information previously disclosed.
``(B) The Secretary may promulgate regulations establishing
criteria under which an institution of higher education may
cease reporting the information described in paragraph (2)
before a loan is paid in full.''.
SEC. 464. TERMS OF LOANS.
Section 464 (20 U.S.C. 1087dd) is amended--
(1) in subsection (a), by amending paragraph (2) to read as
follows:
``(2)(A) Except as provided in paragraph (4), the total of
loans made to a student in any academic year or its equivalent
by an institution of higher education from a loan fund
established pursuant to an agreement under this part shall not
exceed--
``(i) $4,000, in the case of a student who has not
successfully completed a program of undergraduate
education; or
``(ii) $6,000, in the case of a graduate or
professional student (as defined in regulations issued
by the Secretary).
``(B) Except as provided in paragraph (4), the aggregate of
the loans for all years made to a student by institutions of
higher education from loan funds established pursuant to
agreements under this part may not exceed--
``(i) $40,000, in the case of any graduate or
professional student (as defined by regulations issued
by the Secretary, and including any loans from such
funds made to such person before such person became a
graduate or professional student);
``(ii) $20,000, in the case of a student who has
successfully completed 2 years of a program of
education leading to a bachelor's degree but who has
not completed the work necessary for such a degree
(determined under regulations issued by the Secretary,
and including any loans from such funds made to such
person before such person became such a student); and
``(iii) $8,000, in the case of any other student.
``(C)(i) The total of loans made to a student described in
clause (ii) in any academic year or its equivalent by an
institution of higher education from loan funds established
pursuant to agreements under this part may not exceed--
``(I) $8,000 for each of the third and fourth years
of the program of instruction leading to a bachelor's
degree; or
``(II) $10,000 for the first year of graduate study
(as defined in regulations issued by the Secretary).
``(ii) A student referred to in clause (i) is any student--
``(I) who is a junior in a program of instruction
leading to a bachelor's degree;
``(II) who states in writing that the student will
pursue a course of study to become an elementary or
secondary school teacher; and
``(III) who states in writing that the student
intends to become a full-time teacher in a school which
meets the requirements of section 465(a)(2)(A).
``(iii) Each institution shall provide a report to the
Secretary annually containing the number of loans under this
subparagraph that are made, the amount of each loan, and
whether students benefiting from the higher loan limits met the
requirements for receiving those loans.
``(iv) If 3 years after the date of enactment of the Higher
Education Amendments of 1998, the Secretary determines that an
institution has engaged in a pattern of abuse of this
subparagraph, the Secretary may reduce or terminate the
institution's Federal capital contribution.'';
(2) in subsection (b), by amending paragraph (2) to read as
follows:
``(2) If the institution's capital contribution under
section 462 is directly or indirectly based in part on the
financial need demonstrated by students who are (A) attending
the institution less than full time; or (B) independent
students, a reasonable portion of the loans made from the
institution's student loan fund containing the contribution
shall be made available to such students.'';
(3) in subsection (c)(1)--
(A) in subparagraph (D), by striking ``(i) 3
percent'' and all that follows through ``or (iii)'';
(B) by redesignating subparagraphs (H) and (I) as
subparagraphs (I) and (J), respectively; and
(C) by inserting after subparagraph (G) the
following:
``(H) shall provide that, in the case of a loan
made on or after July 1, 1999, the loan shall be
considered in default (except as otherwise provided in
section 462(h)) if the borrower of a loan made under
this part fails to make an installment payment when
due, or to meet any other term of the promissory note
or written repayment agreement, and such failure
persists for--
``(i) 180 days in the case of a loan that
is repayable in monthly installments; or
``(ii) 240 days in the case of a loan that
is repayable in less frequent installments;'';
and
(4) by adding at the end the following:
``(g) Discharge.--
``(1) In general.--If a student borrower who received a
loan made under this part on or after January 1, 1986, is
unable to complete the program in which such student is
enrolled due to the closure of the institution, then the
Secretary shall discharge the borrower's liability on the loan
(including the interest and collection fees) by repaying the
amount owed on the loan and shall subsequently pursue any claim
available to such borrower against the institution and the
institution's affiliates and principals, or settle the loan obligation
pursuant to the financial responsibility standards described in section
498(c).
``(2) Assignment.--A borrower whose loan has been
discharged pursuant to this subsection shall be deemed to have
assigned to the United States the right to a loan refund in an
amount that does not exceed the amount discharged against the
institution and the institution's affiliates and principals.
``(3) Eligibility for additional assistance.--The period
during which a student was unable to complete a course of study
due to the closing of the institution shall not be considered
for purposes of calculating the student's period of eligibility
for additional assistance under this title.
``(4) Special rule.--A borrower whose loan has been
discharged pursuant to this subsection shall not be precluded,
because of that discharge, from receiving additional grant,
loan, or work assistance under this title for which the
borrower would be otherwise eligible (but for the default on
the discharged loan). The amount discharged under this
subsection shall not be considered income for purposes of the
Internal Revenue Code of 1986.
``(5) Reporting.--The Secretary or institution, as the case
may be, shall report to credit bureaus with respect to loans
that have been discharged pursuant to this subsection.
``(h) Rehabilitation of Loans.--
``(1) Rehabilitation.--
``(A) In general.--If the borrower of a loan made
under this part who has defaulted on the loan makes 12
ontime, consecutive, monthly payments of amounts owed
on the loan, as determined by the institution, the loan
shall be considered rehabilitated, and the institution
that made that loan (or the Secretary, in the case of a
loan held by the Secretary) shall instruct any credit
bureau organization or credit reporting agency to which
the default was reported to remove the default from the
borrower's credit history.
``(B) Comparable conditions.--As long as the
borrower continues to make scheduled repayments on a
loan rehabilitated under this paragraph, the
rehabilitated loan shall be subject to the same terms
and conditions, and qualify for the same benefits and
privileges, as other loans made under this part.
``(C) Additional assistance.--The borrower of a
rehabilitated loan shall not be precluded by section
484 from receiving additional grant, loan, or work
assistance under this title (for which the borrower is
otherwise eligible) on the basis of defaulting on the
loan prior to such rehabilitation.
``(D) Limitations.--A borrower only once may obtain
the benefit of this paragraph with respect to
rehabilitating a loan under this part.
``(2) Restoration of eligibility.--If the borrower of a
loan made under this part who has defaulted on that loan makes
6 ontime, consecutive, monthly payments of amounts owed on such
loan, the borrower's eligibility for grant, loan, or work
assistance under this title shall be restored. A borrower only
once may obtain the benefit of this paragraph with respect to
restored eligibility.
``(i) Incentive Repayment Program.--
``(1) In general.--Each institution of higher education may
establish, with the approval of the Secretary, an incentive
repayment program designed to reduce default and to replenish
student loan funds established under this part. Each such
incentive repayment program may--
``(A) offer a reduction of the interest rate on a
loan on which the borrower has made 48 ontime,
consecutive, monthly repayments, but in no event may
the rate be reduced by more than 1 percent;
``(B) provide for a discount on the balance owed on
a loan on which the borrower pays the principal and
interest in full prior to the end of the applicable
repayment period, but in no event may the discount
exceed 5 percent of the unpaid principal balance due on
the loan at the time the early repayment is made; and
``(C) include such other incentive repayment
options as the institution determines will carry out
the objectives of this subsection.
``(2) Limitation.--No incentive repayment option under an
incentive repayment program authorized by this subsection may
be paid for with Federal funds, including any Federal funds
from the student loan fund, nor can an incentive repayment
option be paid for with institutional funds from the student
loan fund.''.
SEC. 465. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.
Section 466 (20 U.S.C. 1087ff) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``1996'' and inserting
``2003''; and
(ii) by striking ``1997'' and inserting
``2004''; and
(B) in paragraph (1), by striking ``1996'' and
inserting ``2003'';
(2) in subsection (b)--
(A) by striking ``2005'' and inserting ``2012'';
and
(B) by striking ``1996'' and inserting ``2003'';
and
(3) in subsection (c), by striking ``1997'' and inserting
``2004''.
SEC. 466. PERKINS LOAN REVOLVING FUND.
(a) Repeal.--Subsection (c) of section 467 (20 U.S.C. 1087gg(c)) is
repealed.
(b) Transfer of balance.--Any funds in the Perkins Loan Revolving
Fund on the date of enactment of this Act shall be transferred to and
deposited in the Treasury.
PART F--NEED ANALYSIS
SEC. 471. COST OF ATTENDANCE.
Section 472 (20 U.S.C. 1087ll) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A), by striking ``of not less
than $1,500'' and inserting ``determined by the
institution''; and
(B) in subparagraph (C), by striking ``, except
that the amount may not be less than $2,500''; and
(2) in paragraph (11), by striking ``placed'' and inserting
``engaged''.
SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
Section 475 (20 U.S.C. 1087oo) is amended--
(1) in subsection (g)--
(A) in paragraph (2)--
(i) in subparagraph (D)--
(I) by striking ``$1,750'' and
inserting ``$2,200''; and
(II) by striking ``and'' after the
semicolon;
(ii) in subparagraph (E), by striking the
period and inserting ``; and''; and
(iii) by adding at the end the following:
``(F) an allowance for parents' negative available
income, determined in accordance with paragraph (6).'';
and
(B) by adding at the end the following:
``(6) Allowance for parents' negative available income.--
The allowance for parents' negative available income is the
amount, if any, by which the sum of the amounts deducted under
subparagraphs (A) through (F) of paragraph (1) exceeds the
parents' total income (as defined in section 480).''; and
(2) by adding at the end the following:
``(j) Adjustments to Students Contribution for Enrollment Periods
of Less Than Nine Months.--For periods of enrollment of less than 9
months, the student's contribution from adjusted available income (as
determined under subsection (g)) is determined, for purposes other than
subpart 2 of part A, by dividing the amount determined under such
subsection by 9, and multiplying the result by the number of months in
the period of enrollment.''.
SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT
DEPENDENTS OTHER THAN A SPOUSE.
Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is
amended--
(1) in subclause (I), by striking ``$3,000'' and inserting
``$4,250'';
(2) in subclause (II), by striking ``$3,000'' and inserting
``$4,250''; and
(3) in subclause (III), by striking ``$6,000'' and
inserting ``$7,250''.
SEC. 474. REGULATIONS; UPDATED TABLES AND AMOUNTS.
Section 478(b) (20 U.S.C. 1087rr(b)) is amended--
(1) by striking ``For each academic year'' and inserting
the following:
``(1) Revised tables.--For each academic year''; and
(2) by adding at the end the following new paragraph:
``(2) Revised amounts.--For each academic year after
academic year 1999-2000, the Secretary shall publish in the
Federal Register revised income protection allowances for the
purpose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). Such
revised allowances shall be developed by increasing each of the
dollar amounts contained in such section by a percentage equal
to the estimated percentage increase in the Consumer Price
Index (as determined by the Secretary) between December 1998
and the December next preceding the beginning of such academic
year, and rounding the result to the nearest $10.''.
SEC. 475. REFUSAL OR ADJUSTMENT OF LOAN CERTIFICATIONS.
Subsection (c) of section 479A (20 U.S.C. 1087tt) is amended to
read as follows:
``(c) Refusal or Adjustment of Loan Certifications.--An eligible
institution may refuse to certify a statement that permits a student to
receive a loan under part B, or refuse to make a loan under part D, or
may certify a loan amount or make a loan that is less than the
student's determination of need (as determined under this part), if the
reason for the action is documented and provided in written form to the
student. No eligible institution shall discriminate against any
borrower or applicant in obtaining a loan on the basis of race,
national origin, religion, sex, marital status, age, or disability
status.''.
PART G--GENERAL PROVISIONS
SEC. 481. MASTER CALENDAR.
Section 482 (20 U.S.C. 1089) is amended--
(1) in subsection (a), by adding at the end the following:
``(3) To the extent feasible, the Secretary shall notify
eligible institutions and vendors by December 1 prior to the
start of an award year of minimal hardware and software
requirements necessary to administer programs under this
title.''; and
(2) by amending subsection (c) to read as follows:
``(c) Delay of Effective Date of Late Publications.--(1) Except as
provided in paragraph (2), any regulatory changes initiated by the
Secretary affecting the programs under this title that have not been
published in final form by November 1 prior to the start of the award
year shall not become effective until the beginning of the second award
year after such November 1 date.
``(2)(A) The Secretary may designate any regulatory provision that
affects the programs under this title and is published in final form
after November 1 as one that an entity subject to the provision may, in
the entity's discretion, choose to implement prior to the effective
date described in paragraph (1). The Secretary may specify in the
designation when, and under what conditions, an entity may implement
the provision prior to that effective date. The Secretary shall publish
any designation under this subparagraph in the Federal Register.
``(B) If an entity chooses to implement a regulatory provision
prior to the effective date described in paragraph (1), as permitted by
subparagraph (A), the provision shall be effective with respect to that
entity in accordance with the terms of the Secretary's designation.''.
SEC. 482. FORMS AND REGULATIONS.
Section 483 (20 U.S.C. 1090) is amended--
(1) in subsection (a)--
(A) in the subsection heading, by striking ``Form''
and inserting ``Form Development'';
(B) by amending paragraph (1) to read as follows:
``(1) Single form requirements.--The Secretary, in
cooperation with representatives of agencies and organizations
involved in student financial assistance, shall produce,
distribute, and process free of charge a common financial
reporting form (which shall include electronic versions of the
form) to be used--
``(A) to determine the need (including the expected
family contribution and, if appropriate, cost of
attendance) and eligibility of a student for financial
assistance under parts A, C, D, and E; and
``(B) to determine the need (including the expected
family contribution and cost of attendance) of a
student for the purposes of part B.
``(2) State data items.--The Secretary shall include on the
form developed under this subsection such data items, selected
in consultation with the States to assist the States in
awarding State student financial assistance, as the Secretary
determines are appropriate for inclusion.
``(3) Parent's social security number.--The Secretary shall
include on the form developed under this paragraph space for
the social security number of parents of dependent students
seeking financial assistance under this title.
``(4) Use.--The Secretary shall require that the form
developed under this paragraph be used for the purpose of
collecting eligibility and other data for purposes of part B,
including the applicant's choice of lender.''; and
(C) in paragraph (3)--
(i) by striking ``Institutions of higher
education and States shall receive'' and
inserting ``The Secretary shall provide''; and
(ii) by striking ``by the Secretary''; and
(2) by adding at the end the following:
``(g) Payment for Data.--The Secretary may pay such charges as the
Secretary determines are necessary to obtain data that the Secretary
considers essential to the efficient administration of the programs
under this title.
``(h) Multiyear Promissory Note.--The Secretary shall require, for
loans made under this title for periods of enrollment beginning on or
after July 1, 2000, the use of a promissory note applicable to more
than 1 academic year, or more than 1 type of loan made under this
title. Prior to implementing this subsection, the Secretary shall
develop and test such a promissory note on a limited or pilot basis.''.
SEC. 483. STUDENT ELIGIBILITY.
(a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
(1) in subsection (d)--
(A) in the matter preceding paragraph (1), by
striking ``either''; and
(B) by adding at the end the following:
``(3) The student has completed a high school education in
a home school setting and has met any State requirements with
respect to such education in a home school setting.''; and
(2) by adding at the end the following:
``(q) Verification of IRS Return Information.--The Secretary shall
verify the information reported by all applicants for assistance on the
form prescribed under section 483 with the return information (as
defined in section 6103 of the Internal Revenue Code of 1986) available
to the Secretary of the Treasury. Notwithstanding section 6103 of such
Code the Secretary of the Treasury shall provide the return information
to the Secretary. In the case of a dependent student the return
information shall include the return information of the parent of the
student. The form prescribed by the Secretary under section 483 shall
contain a prominent notice of the verification of the information and a
warning to all the applicants of the penalties for misrepresentation,
with respect to the information, under the United States Code.
``(r) Suspension of Eligibility for Drug-Related Offenses.--
``(1) In general.--A student who has been convicted of any
offense under any Federal or State law involving the possession
or sale of a controlled substance shall not be eligible to
receive any grant, loan, or work assistance under this title
during the period beginning on the date of such conviction and
ending after the interval specified in the following table:
``If convicted of an offense involving:
The possession of a con-
trolled substance:
Ineligibility period is:
First offense..............
1 year
Second offense.............
2 years
Third offense..............
Indefinite.
The sale of a controlled
substance:
Ineligibility period is:
First offense..............
2 years
Second offense.............
Indefinite.
``(2) Rehabilitation.--A student whose eligibility has been
suspended under paragraph (1) may resume eligibility before the
end of the ineligibility period determined under such paragraph
if the student satisfactorily completes a drug rehabilitation
program that complies with such criteria as the Secretary shall
prescribe in regulations for purposes of this paragraph.
``(3) Definitions.--In this subsection, the term
`controlled substance' has the meaning given the term in
section 102(6) of the Controlled Substances Act (21 U.S.C.
802(6)).''.
(b) Effective Date.--The amendment made by subsection (a)(2)
regarding suspension of eligibility for drug-related offenses, shall
apply with respect to financial assistance to cover the costs of
attendance for periods of enrollment beginning after the date of
enactment of this Act.
SEC. 484. INSTITUTIONAL REFUNDS.
Section 484B (20 U.S.C. 1091b) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by inserting ``or'' after the
semicolon;
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph
(2); and
(2) in subsection (c)--
(A) in paragraph (1), by striking ``last day of
attendance by the student'' and inserting ``day the
student withdrew'';
(B) in subparagraph (A) of paragraph (2), by
striking ``last recorded day of attendance by the
student'' and inserting ``day the student withdrew'';
and
(C) by adding at the end the following:
``(3) For the purpose of this section, the term `day a
student withdrew'--
``(A) is the date that was the last recorded day of
attendance by the student; or
``(B) in instances where attendance is not
recorded, is the date on which--
``(i) the student began the withdrawal
process prescribed by the institution; or
``(ii) the student otherwise provided
notification to the institution of the intent
to withdraw.''.
SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--Section 485(a) (20
U.S.C. 1092(a)) is amended--
(1) in paragraph (1)--
(A) in the second sentence, by striking ``and
mailings, to all current'' and inserting ``, mailings,
and electronic media, to all enrolled'';
(B) by inserting after the second sentence the
following: ``Each eligible institution annually shall
provide to all students enrolled at the institution, a
list of the information that is required by this
section, together with a statement of the procedures
required to obtain the information.'';
(C) in subparagraph (M)(ii), by striking ``and''
after the semicolon;
(D) in subparagraph (N), by striking the period and
inserting ``; and''; and
(E) by adding at the end the following:
``(O) the requirements and procedures for student
withdrawal prior to the end of a period of enrollment
and the consequences to the student, with respect to
receipt of a refund, of the student's failing to
provide notification of withdrawal.'';
(2) in paragraph (2), by inserting ``an application for''
after ``concerning''; and
(3) in paragraph (3), by amending subparagraph (A) to read
as follows:
``(A) shall be made available by July 1 each year
to current and prospective students prior to enrolling
or entering into any financial obligation; and''.
(b) Exit Counseling for Borrowers.--Section 485(b) (20 U.S.C.
1092(b)) is amended--
(1) in paragraph (1)(A), by striking ``(individually or in
groups)''; and
(2) in paragraph (2), by adding at the end the following:
``(C) Nothing in this subsection shall be construed to prohibit an
institution of higher education from utilizing electronic means to
provide personalized exit counseling.''.
(c) Disclosures Required With Respect to Athletically Related
Student Aid.--Section 485(e) (20 U.S.C. 1092(e)) is amended--
(1) by amending paragraph (2) to read as follows:
``(2) When an institution described in paragraph (1) offers
a potential student athlete athletically related student aid,
such institution shall provide to the student, the student's
parents, the student's guidance counselor, and the student's
coach the information contained in the report submitted by such
institution pursuant to paragraph (1). If the institution is a
member of a national collegiate athletic association that
compiles graduation rate data on behalf of its member
institutions, that the Secretary determines is substantially
comparable to the information described in the previous
sentence, the distribution of the compilation to all secondary
schools shall fulfill the responsibility of the institution to
provide the information to a prospective student athlete's
guidance counselor and coach.''; and
(2) by amending paragraph (9) to read as follows:
``(9) The reports required by this subsection shall be due
each July 1 and shall cover the 1-year period ending August 31
of the preceding year.''.
(d) Disclosure of Campus Security Policy and Campus Crime
Statistics.--Section 485(f) (20 U.S.C. 1092(f)) is amended--
(1) by amending subparagraph (F) of paragraph (1) to read
as follows:
``(F) Statistics concerning the occurrence on
campus, during the most recent calendar year, and
during the 2 preceding calendar years for which data
are available--
``(i) of the following criminal offenses
reported to campus security authorities or
local police agencies--
``(I) homicide, including murder or
nonnegligent manslaughter or negligent
manslaughter;
``(II) sex offenses, forcible or
nonforcible;
``(III) robbery;
``(IV) aggravated assault;
``(V) burglary;
``(VI) motor vehicle theft; and
``(VII) arson;
``(ii) of the crimes described in
subclauses (I) through (VII), and vandalism and
simple assault, that manifest evidence of
prejudice based on actual or perceived race,
gender, religion, sexual orientation,
ethnicity, or disability that are reported to
campus security authorities or local police
agencies, which data shall be collected and
reported according to category of prejudice.'';
(2) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(3) by inserting after paragraph (3) the following:
``(4)(A) Each institution participating in any program
under this title which maintains either a police or security
department of any kind shall make, keep, and maintain a daily
log, written in a form that can be easily understood, recording
all crimes reported to such police or security department,
including--
``(i) the nature, date, time, and general location
of each crime; and
``(ii) the disposition of the complaint, if known.
``(B)(i) All entries that are required pursuant to this
paragraph shall, except where disclosure of such information is
prohibited by law or such disclosure would jeopardize the
confidentiality of the victim, be open to public inspection
within 2 business days of the initial report being made to the
department or a campus security authority.
``(ii) If new information about an entry into a log becomes
available to a police or security department, then the new
information shall be recorded in the log not later than 2
business days after the information becomes available to the police or
security department.
``(iii) Where there is clear and convincing evidence that
the release of such information would jeopardize an ongoing
criminal investigation or the safety of an individual, cause a
suspect to flee or evade detection, or result in the
destruction of evidence, such information may be withheld until
that damage is no longer likely to occur from the release of
such information.
``(iv) Notwithstanding clause (iii), an institution of
higher education shall record all criminal incidents occurring
on campus and shall make the reports open to public inspection
not later than 2 business days after the requirements of clause
(iii) are met.'';
(4) in paragraph (7) (as redesignated by subparagraph (B)),
by inserting at the end the following: ``Such statistics shall
not identify victims of crimes or persons accused of crimes,
except as permitted by State or local law.''; and
(5) by adding at the end the following:
``(9) Study.--
``(A) In general.--The Secretary, in consultation
with the Attorney General, shall provide for a national
study to examine procedures undertaken after an
institution of higher education receives a report of
sexual assault.
``(B) Report.--The study required by subparagraph
(A) shall include an analysis of--
``(i) the existence and publication of the
institution of higher education's and State's
definition of sexual assault;
``(ii) the existence and publication of the
institution's policy for campus sexual
assaults;
``(iii) the individuals to whom reports of
sexual assault are given most often and--
``(I) how the individuals are
trained to respond to the reports; and
``(II) the extent to which the
individuals are trained;
``(iv) the reporting options that are
articulated to the victim or victims of the
sexual assault regarding--
``(I) on-campus reporting and
procedure options; and
``(II) off-campus reporting and
procedure options;
``(v) the resources available for victims'
safety, support, medical health, and
confidentiality, including--
``(I) how well the resources are
articulated both specifically to the
victim of sexual assault and generally
to the campus at large; and
``(II) the security of the
resources in terms of confidentiality
or reputation;
``(vi) policies and practices that may
prevent or discourage the reporting of campus
sexual assaults to local crime authorities, or
that may otherwise obstruct justice or
interfere with the prosecution of perpetrators
of campus sexual assaults;
``(vii) policies and practices found
successful in aiding the report and any ensuing
investigation or prosecution of a campus sexual
assault;
``(viii) the on-campus procedures for
investigation and disciplining the perpetrator
of a sexual assault, including--
``(I) the format for collecting
evidence; and
``(II) the format of the
investigation and disciplinary
proceeding, including the faculty
responsible for running the
disciplinary procedure and the persons
allowed to attend the disciplinary
procedure; and
``(ix) types of punishment for offenders,
including--
``(I) whether the case is directed
outside for further punishment; and
``(II) how the institution punishes
perpetrators.
``(C) Submission of report.--The report required by
subparagraph (B) shall be submitted to Congress not
later than September 1, 1999.
``(D) Definition.--For purposes of this section,
the term `campus sexual assaults' means sexual assaults
occurring at institutions of higher education and
sexual assaults committed against or by students or
employees of such institutions.
``(E) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$1,000,000 for fiscal year 1999.''.
(e) Data Required.--Section 485(g) (20 U.S.C. 1092(g)) is amended--
(1) in paragraph (1), by adding at the end the following:
``(I)(i) The total revenues, and the revenues from
football, men's basketball, women's basketball, all
other men's sports combined, and all other women's
sports combined, derived by the institution from the
institution's intercollegiate athletics activities.
``(ii) For the purpose of clause (i) revenues from
intercollegiate athletics activities allocable to a
sport shall include, without limitation, gate receipts,
broadcast revenues, appearance guarantees and options,
concessions and advertising, except that revenues such
as student activities fees or alumni contributions not
so allocable shall be included in the calculation of
total revenues only.
``(J)(i) The total expenses, and the expenses
attributable to football, men's basketball, women's
basketball, all other men's sports combined and all
other women's sports combined, made by the institution
for the institution's intercollegiate athletics
activities.
``(ii) For the purpose of clause (i) expenses for
intercollegiate athletics activities allocable to a
sport shall include without limitation grants-in-aid,
salaries, travel, equipment, and supplies, except that
expenses such as general and administrative overhead
not so allocable shall be included in the calculation
of total expenses only.
``(K) A statement of any reduction that will, or is
likely to, occur during the ensuing 4 academic years in
the number of athletes that will be permitted to
participate in any collegiate sport, or in the
financial resources that the institution will make
available for any such sport, and the reasons for any
such reduction, to the
extent the reduction is known.'';
(2) by striking paragraph (5);
(3) by redesignating paragraph (4) as paragraph (5); and
(4) by inserting after paragraph (3) the following:
``(4) Submission; report; information availability.--(A)
Each institution of higher education described in paragraph (1)
shall provide to the Secretary, within 15 days of the date that
the institution makes available the report under paragraph (1),
the information contained in the report.
``(B) The Secretary shall prepare a report regarding the
information received under subparagraph (A) for each year by
April 1 of the year. The report shall--
``(i) summarize the information and identify trends
in the information;
``(ii) aggregate the information by divisions of
the National Collegiate Athletic Association; and
``(iii) contain information on each individual
institution of higher education.
``(C) The Secretary shall ensure that the report described
in subparagraph (B) is made available on the Internet within a
reasonable period of time.
``(D) The Secretary shall notify, not later than 180 days
after the date of enactment of the Higher Education Amendments
of 1998, all secondary schools in all States regarding the
availability of the information reported under subparagraph (B)
and the information made available under paragraph (1), and how
such information may be accessed.''.
(f) GEPA Amendment.--Section 444(a)(4)(B) of the General Education
Provisions Act (20 U.S.C. 1232g(a)(4)(B)) is amended--
(1) by redesignating clauses (iii) and (iv) as clauses (iv)
and (v), respectively; and
(2) by inserting after clause (ii) the following:
``(iii) records that are maintained by
local police or campus security officers of an
educational agency or institution about--
``(I) individuals who have been
found guilty of, or have pled guilty
to, committing or participating in any
criminal activity as defined in
Federal, State, or local law that has
occurred while the individual was a
student in attendance, including audit
or noncredit, at an educational
institution; and
``(II) findings of guilt of
criminal misconduct and related
sanctions from any previously attended
educational agencies or institutions
where such records were created on or
after September 1, 1999, and that are
maintained by the institution currently
or most recently attended by the
individual;''.
SEC. 486. NATIONAL STUDENT LOAN DATA BANK SYSTEM.
Section 485B (20 U.S.C. 1092b) is amended by adding at the end the
following:
``(h) Student Status Confirmation Report.--In order to reduce
unnecessary paperwork and to increase the efficient administration, the
Secretary shall assure that borrowers under part E are included in the
Student Status Confirmation Report in the same manner as borrowers
under parts B and D.''.
SEC. 487. TRAINING IN FINANCIAL AID SERVICES.
Section 486 (20 U.S.C. 1093) is amended to read as follows:
``SEC. 486. INFORMATION ON THE COSTS OF HIGHER EDUCATION.
``(a) In General.--For the purpose of providing comparative
information to families about the costs of higher education--
``(1) the National Center for Education Statistics shall--
``(A) develop a standard definition for the
following data elements:
``(i) Tuition and fees.
``(ii) Total cost of attendance, including
costs such as housing, books, supplies, and
transportation.
``(iii) Average amount of financial
assistance received by a student who attends an
institution of higher education, in terms of
the following:
``(I) Grants and loans.
``(II) Institutional and other
assistance.
``(iv) Percentage of students receiving
student financial assistance, in terms of the
following:
``(I) Grants and loans.
``(II) Institutional and other
assistance;
``(B) report the definitions to each institution of
higher education and the Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives not
later than 90 days after the date of enactment of the
Higher Education Amendments of 1998;
``(C) collect information regarding the data
elements described in subparagraph (A) with respect to
all institutions of higher education, and make
available the information each year in a timely fashion
through the integrated postsecondary education data
system, beginning with the information from the 1999-
2000 academic year;
``(D) provide the public notice when the
information described in subparagraph (C) is available
for public inspection; and
``(E) publish in a timely fashion a report after
the third year of collection of the information
described in subparagraph (C) that compares the
information described in subparagraph (C)
longitudinally by institution, which information shall
be presented in a form that is easily understandable,
including clear definitions of the data elements
described in subparagraph (A), to allow parents and
students to make informed decisions about attending
college; and
``(2) institutions of higher education shall provide
information regarding each data element described in paragraph
(1)(A) to the National Center for Education Statistics by March
1 of each year, beginning in the year 2000.
``(b) Study.--
``(1) In general.--In consultation with the Bureau of Labor
Statistics, the National Center for Education Statistics shall
conduct a national study of expenditures at institutions of
higher education. Such study shall include information about--
``(A) expenditures for--
``(i) faculty salaries and benefits;
``(ii) administrative salaries, benefits,
and expenses;
``(iii) academic support services;
``(iv) research;
``(v) construction; and
``(vi) technology;
``(B) how such expenditures change over time; and
``(C) how such expenditures relate to college
costs.
``(2) Final report.--The National Center for Education
Statistics shall submit a report regarding the findings of the
study required by paragraph (1) to the Committee on Labor and
Human Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives not later
than September 30, 2001.
``(c) Higher Education Market Basket.--In consultation with the
Bureau of Labor Statistics, the National Center for Education
Statistics shall develop a Higher Education Market Basket that
identifies the items that comprise the costs of higher education. The
National Center for Education Statistics shall provide a report on the
market basket to the Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce of the House of
Representatives not later than September 30, 2002.
``(d) Fines.--In addition to the actions authorized in section
487(c), the Secretary may impose a fine in an amount not to exceed
$25,000 on an institution of higher education for failure to provide
the information described in subsection (a)(2) in a timely or accurate
manner, or for failure to otherwise cooperate with the National Center
for Education Statistics regarding efforts to obtain data on the cost
of higher education under such subsection.''.
SEC. 488. PROGRAM PARTICIPATION AGREEMENTS.
Section 487 (20 U.S.C. 1094) is amended--
(1) in subsection (a)--
(A) in paragraph (3)--
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraphs (C) and
(D) as subparagraphs (B) and (C), respectively;
(B) in paragraph (9), by striking ``part B'' and
inserting ``part B or D'';
(C) in paragraph (14)--
(i) in subparagraph (A), by striking ``part
B'' and inserting ``part B or D''; and
(ii) in subparagraph (B)--
(I) by inserting ``for-profit''
after ``Any'';
(II) by striking ``and any eligible
institution which'' and inserting
``or''; and
(III) by striking ``part B'' and
inserting ``part B or D'';
(D) in paragraph (15), by striking ``State review
entities'' and inserting ``the State agencies'';
(E) by striking paragraph (18);
(F) by redesignating paragraphs (19) through (22)
as paragraphs (18) through (21), respectively; and
(G) by amending paragraph (20) (as redesignated by
subparagraph (F)) to read as follows:
``(20) The institution will meet the requirements
established by the Secretary and accrediting agencies or
associations, and will provide evidence to the Secretary that
the institution has the authority to operate within a State.'';
and
(2) in subsection (c)--
(A) in paragraph (1)(A)(i), by striking ``State
review entities referred to in'' and inserting
``appropriate State agency notifying the Secretary
under'';
(B) in paragraph (4), by striking ``, after
consultation with each State review entity designated
under subpart 1 of part H,''; and
(C) in paragraph (5), by striking ``State review
entities designated'' and inserting ``State agencies
notifying the Secretary''.
SEC. 489. REGULATORY RELIEF AND IMPROVEMENT.
Section 487A (20 U.S.C. 1094a) is amended to read as follows:
``SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.
``(a) Quality Assurance Program.--
``(1) In general.--The Secretary is authorized to select
institutions for voluntary participation in a Quality Assurance
Program that provides participating institutions with an
alternative management approach through which individual
schools develop and implement their own comprehensive systems,
including processing and disbursement of student financial aid,
verification of student financial aid application data, and
entrance and exit interviews, thereby enhancing program
integrity within the student aid delivery system. The Quality
Assurance Program authorized by this section shall be based on
criteria that include demonstrated institutional performance,
as determined by the Secretary, and shall take into
consideration current quality assurance goals, as determined by
the Secretary.
``(2) Waiver.--The Secretary is authorized to waive for any
institution participating in the Quality Assurance Program any
regulations dealing with reporting or verification requirements
in this title that are addressed by the institution's
alternative management system, and may substitute such quality
assurance reporting as the Secretary determines necessary to
ensure accountability and compliance with the purposes of the
programs under this title.
``(3) Determination.--The Secretary is authorized to
determine--
``(A) when an institution that is unable to
administer the Quality Assurance Program shall be
removed from such program; and
``(B) when institutions desiring to cease
participation in such program will be required to
complete the current award year under the requirements
of the Quality Assurance Program.
``(4) Review and evaluation.--The Secretary shall review
and evaluate the Quality Assurance Program conducted by each
participating institution and, on the basis of that evaluation,
make recommendations regarding amendments to this Act that will
streamline the administration and enhance the integrity of
Federal student assistance programs. Such recommendations shall
be submitted to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the Workforce of
the House of Representatives.
``(b) Regulatory Improvement and Streamlining Experiments.--
``(1) In general.--The Secretary shall review and evaluate
the experience of institutions participating as experimental
sites during the period of 1993 through 1998 under this section
(as such section was in effect on the day before the date of
enactment of the Higher Education Amendments of 1998), and
shall submit a report based on this review and evaluation to the
Committee on Labor and Human Resources of the Senate and the Committee
on Education and the Workforce of the House of Representatives not
later than 6 months after the enactment of the Higher Education
Amendments of 1998. Such report shall include--
``(A) a list of participating institutions and the
specific statutory or regulatory waivers granted to
each institution;
``(B) the findings and conclusions reached
regarding each of the experiments conducted; and
``(C) recommendations for amendments to improve and
streamline this Act, based on the results of the
experiment.
``(2) Selection.--
``(A) In general.--The Secretary is authorized to
select a limited number of institutions for voluntary
participation as experimental sites to provide
recommendations to the Secretary on the impact and
effectiveness of proposed regulations or new management
initiatives, except that additional institutions may
not be selected by the Secretary until the report
required by subsection (b)(1) has been submitted to
Congress.
``(B) Consultation.--Prior to approving any
additional experimental sites, the Secretary shall
consult with the Committee on Labor and Human Resources
of the Senate and the Committee on Education and the
Workforce of the House of Representatives and shall
provide--
``(i) a list of institutions proposed for
participation in the experiment and the
specific statutory or regulatory waivers
proposed to be granted to each institution;
``(ii) the objectives to be achieved
through the experiment; and
``(iii) the period of time over which the
experiment is to be conducted.
``(C) Waivers.--The Secretary is authorized to
waive, for any institution participating as an
experimental site under subparagraph (A), any
requirements in this title, or regulations prescribed
under this title, that will bias experimental results.
``(c) Definitions.--For purposes of this section, the term `current
award year' is defined as the award year during which the participating
institution indicates the institution's intention to cease
participation.''.
SEC. 489A. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
Part G (20 U.S.C. 1088 et seq.) is amended by inserting after
section 487B (20 U.S.C. 1094a) the following:
``SEC. 487C. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
``(a) Purpose.--It is the purpose of this section--
``(1) to allow demonstration programs that are strictly
monitored by the Department to test the quality and viability
of expanded distance education programs currently restricted
under this Act;
``(2) to help determine the specific statutory and
regulatory requirements which should be altered to provide
greater access to high quality distance education programs; and
``(3) to help determine the appropriate level of Federal
assistance for students enrolled in distance education
programs.
``(b) Demonstration Programs Authorized.--
``(1) In general.--The Secretary, in accordance with the
provisions of subsection (d), is authorized to select
institutions of higher education or consortia of such
institutions for voluntary participation in a Distance
Education Demonstration Program that provides participating
institutions with the ability to offer distance education
programs that do not meet all or a portion of the sections or
regulations described in paragraph (2).
``(2) Waivers.--The Secretary is authorized to waive, for
any institution or consortia participating in a Distance
Education Demonstration Program, 1 or more of the requirements
of section 472(5) as the section relates to computer costs,
sections 472(10), 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1
or more of the regulations prescribed for distance education
under part F or G.
``(3) Special rule.--An institution of higher education, as
defined in section 481(a), is eligible to participate in the
demonstration program authorized under this section if such
institution awards a degree, except that--
``(A) such institutions that are described in
section 481(a)(1)(C) shall not be eligible to
participate; and
``(B) subject to subparagraph (A), such
institutions that meet the requirements of subsection
(a) of section 481, other than the requirements of
paragraph (3)(A) or (3)(B) of such subsection, shall be
eligible to participate.
``(c) Application.--
``(1) In general.--Each institution or consortia of
institutions desiring to participate in a demonstration program
under this section shall submit an application to the Secretary
at such time and in such manner as the Secretary may require.
``(2) Contents.--Each application shall include--
``(A) a description of the institution or
consortium's consultation with a recognized accrediting
agency or association with respect to quality
assurances for the distance education programs to be
offered;
``(B) a description of the statutory and regulatory
requirements described in subsection (b)(2) for which a
waiver is sought and the reasons for which the waiver
is sought;
``(C) a description of the distance education
programs to be offered;
``(D) a description of the students to whom
distance education programs will be offered;
``(E) an assurance that the institution or
consortium will offer full cooperation with the ongoing
evaluations of the demonstration program provided for in this section;
and
``(F) such other information as the Secretary may
require.
``(d) Selection.--The Secretary is authorized to select not more
than 5 institutions or consortia to participate in the initial year of
the demonstration program authorized under this section. If expansion
of the demonstration program can be supported on the basis of the
evaluations conducted pursuant to subsections (f) and (g), the
Secretary may select not more than 10 additional institutions or
consortia, taking into account the number and quality of applications
received and the Department's capacity to oversee and monitor each
demonstration program. To the extent feasible, the Secretary shall
select a representative sample of institutions for participation. In
selecting institutions for participation, the Secretary shall take into
consideration the institution's financial and administrative capability
and the type of program or programs being offered via distance
education course offerings.
``(e) Notification.--The Secretary shall make available to the
public and to the Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the House of
Representatives a list of institutions or consortia selected to
participate in the demonstration program authorized by this section.
Such notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution or consortia
and a description of the distance education courses to be offered.
``(f) Evaluations and Reports.--
``(1) Evaluation.--The Secretary, on an annual basis, shall
evaluate the demonstration programs authorized under this
section. Such evaluations shall specifically review--
``(A) the number and types of students
participating in the programs being offered, including
the progress of participating students toward
recognized associate, bachelor's, or graduate degrees,
and the degree to which participation in such programs
increased;
``(B) issues related to student financial
assistance for distance education; and
``(C) the extent to which statutory or regulatory
requirements not waived under the demonstration program
present difficulties for students or institutions.
``(2) Policy analysis.--In addition, the Secretary shall
review current policies and identify those policies which
present impediments to the development and use of distance
education and other nontraditional methods of expanding access
to education.
``(3) Reports.--
``(A) In general.--Within 18 months of the
initiation of the demonstration program, the Secretary
shall report to the Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives with
respect to--
``(i) the evaluations of the demonstration
programs authorized under this section; and
``(ii) any proposed statutory changes
designed to enhance the use of distance
education.
``(B) Additional reports.--The Secretary shall
provide additional reports to the Committee on Labor
and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives on an annual basis regarding the
demonstration programs authorized under this section.
``(g) Independent Evaluation.--
``(1) In general.--The Secretary shall enter into a
contract with the National Academy of Sciences to study the
quality of and student learning outcomes in distance education
programs. Such study shall include--
``(A) identification of the elements by which
quality in distance education can be assessed, such as
subject matter, interactivity, and student outcomes;
and
``(B) identification of the types of students which
can most benefit from distance education in areas such
as access to higher education, persistence, and
graduation.
``(2) Scope.--Such study shall include distance education
programs offered by the institutions or consortia participating
in the demonstration program authorized by this section, as
well as the distance education programs offered by other
institutions.
``(3) Interim and final reports.--The Secretary shall
request that the National Academy of Sciences submit an interim
report to the Secretary, the Committee on Labor and Human
Resources of the Senate, and the Committee on Education and the
Workforce of the House of Representatives not later than
December 31, 2000, and a final report not later than December
31, 2002, regarding the study.
``(4) Funding.--The Secretary shall make available not more
than $1,000,000 for the study required by this subsection.
``(h) Oversight.--In conducting the demonstration program
authorized under this section, the Secretary shall, on a continuing
basis--
``(1) assure compliance of institutions or consortia with
the requirements of this title (other than the sections and
regulations that are waived under subsection (b)(2));
``(2) provide technical assistance;
``(3) monitor fluctuations in the student population
enrolled in the participating institutions or consortia; and
``(4) consult with appropriate accrediting agencies or
associations and appropriate State regulatory authorities.
``(i) Definition.--For the purpose of this section, the term
`distance education' means an educational process that is characterized
by the separation, in time or place, between instructor and student.
Distance education may include courses offered principally through the
use of--
``(1) television, audio, or computer transmission, such as
open broadcast, closed circuit, cable, microwave, or satellite
transmission;
``(2) audio or computer conferencing;
``(3) video cassettes or discs; or
``(4) correspondence.''.
SEC. 489B. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
Section 491 (20 U.S.C. 1098) is amended--
(1) in subsection (b)--
(A) in the second sentence, by striking ``and
expenditures'' and inserting ``, expenditures and
staffing levels''; and
(B) by inserting after the third sentence the
following: ``Reports, publications, and other
documents, including such reports, publications, and
documents in electronic form, shall not be subject to
review by the Secretary.'';
(2) in subsection (e)--
(A) by redesignating paragraphs (3), (4), and (5),
as paragraphs (4), (5), and (6), respectively; and
(B) by inserting after paragraph (2) the following:
``(3) No officers or full-time employees of the Federal
Government shall serve as members of the Advisory Committee.'';
(3) in subsection (g), by striking ``(1) Members'' and all
that follows through ``of the United States may'' and inserting
``Members of the Advisory Committee may'';
(4) in subsection (h)(1)--
(A) by inserting ``determined'' after ``as may
be''; and
(B) by adding at the end the following: ``The
Advisory Committee may appoint not more than 1 full-
time equivalent, nonpermanent, consultant without
regard to the provisions of title 5, United States
Code. The Advisory Committee shall not be required by
the Secretary to reduce personnel to meet agency
personnel reduction goals.'';
(5) in subsection (i), by striking ``$750,000'' and
inserting ``$800,000'';
(6) by amending subsection (j) to read as follows:
``(j) Special Analyses and Activities.--The Advisory Committee
shall--
``(1) monitor and evaluate the modernization of student
financial aid systems and delivery processes, including the
implementation of a performance-based organization within the
Department, and report to Congress regarding such modernization
on not less than an annual basis, including recommendations for
improvement;
``(2) assess the adequacy of current methods for
disseminating information about programs under this title and
recommend improvements, as appropriate, regarding early needs
assessment and information for first-year secondary school
students;
``(3) assess and make recommendations concerning the
feasibility and degree of use of appropriate technology in the
application for, and delivery and management of, financial
assistance under this title, as well as policies that promote
use of such technology to reduce cost and enhance service and
program integrity, including electronic application and
reapplication, just-in-time delivery of funds, reporting of
disbursements and reconciliation;
``(4) assess the implications of distance education on
student eligibility and other requirements for financial
assistance under this title, and make recommendations that will
enhance access to postsecondary education through distance
education while maintaining access, through on-campus
instruction at eligible institutions, and program integrity;
and
``(5) make recommendations to the Secretary regarding
redundant or outdated provisions of and regulations under this
Act, consistent with the Secretary's requirements under section
498A(b)(3).'';
(7) in subsection (k), by striking ``1998'' and inserting
``2004''; and
(8) by repealing subsection (l).
SEC. 489C. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
Section 492 (20 U.S.C. 1098a) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by inserting ``, after the enactment of
each Act to reauthorize this Act that contains
an amendment to this title,'' after ``The
Secretary''; and
(ii) by inserting ``D,'' after ``B,''; and
(B) in paragraph (2)--
(i) by inserting ``D,'' after ``B,''; and
(ii) by striking ``1992'' and inserting
``1998, and for the implementation of this
title as amended by each Act to reauthorize
this Act enacted after the date of enactment of
the Higher Education Amendments of 1998 that
contains an amendment to this title''; and
(2) in subsection (b)--
(A) by striking ``After'' and inserting the
following:
``(1) In general.--After'';
(B) in paragraph (1) (as redesignated by
subparagraph (A))--
(i) by inserting ``D,'' after ``B,''; and
(ii) by striking ``1992'' and inserting
``1998, and for the implementation of this
title as amended by each Act to reauthorize
this Act enacted after the date of enactment of
the Higher Education Amendments of 1998 that
contains an amendment to this title,''; and
(C) by adding at the end the following:
``(2) Expansion of negotiated rulemaking in student loan
programs.--All regulations pertaining to the student assistance
programs in parts B, D, G, and H, that are promulgated after
the date of enactment of this paragraph, shall be subject to
the negotiated rulemaking process, unless the Secretary
determines that exceptional circumstances exist making
negotiated rulemaking impractical with respect to given
regulations and publishes the basis for such determination in
the Federal Register at the same time as the proposed
regulations in questions are first published. All published
proposed regulations shall conform, unless impracticable, to
agreements resulting from such negotiated rulemaking. Such
negotiated rulemaking shall be conducted in accordance with the
provisions of paragraph (1).''.
PART H--PROGRAM INTEGRITY TRIAD
SEC. 491. STATE ROLE AND RESPONSIBILITIES.
Subpart 1 of part H of title IV (20 U.S.C. 1099a et seq.) is
amended to read as follows:
``Subpart 1--State Role
``SEC. 495. STATE RESPONSIBILITIES.
``(a) State Responsibilities.--As part of the integrity program
authorized by this part, each State, through 1 State agency or several
State agencies selected by the State, shall--
``(1) furnish the Secretary, upon request, information with
respect to the process for licensing or other authorization for
institutions of higher education to operate within the State;
``(2) notify the Secretary promptly whenever the State
revokes a license or other authority to operate an institution
of higher education; and
``(3) notify the Secretary promptly whenever the State has
credible evidence that an institution of higher education
within the State--
``(A) has committed fraud in the administration of
the student assistance programs authorized by this
title; or
``(B) has substantially violated a provision of
this title.
``(b) Institutional Responsibility.--Each institution of higher
education shall provide evidence to the Secretary that the institution
has authority to operate within a State at the time the institution is
certified under subpart 3.''.
SEC. 492. ACCREDITING AGENCY RECOGNITION.
(a) Amendments to Headings.--Subpart 2 of part H of title IV (20
U.S.C. 1099b et seq.) is amended--
(1) in the subpart heading, by striking ``Approval'' and
inserting ``Recognition''; and
(2) in the heading for section 496, by striking
``approval'' and inserting ``recognition''.
(b) Recognition of Accrediting Agency or Association.--Section 496
(20 U.S.C. 1099b) is amended--
(1) in the heading for subsection (a), by striking
``Standards'' and inserting ``Criteria'';
(2) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``standards'' each place the term appears and
inserting ``criteria'';
(B) in paragraph (4)--
(i) by striking ``at the institution'' and
inserting ``offered by the institution''; and
(ii) by inserting ``, including distance
education courses or programs,'' after ``higher
education''; and
(C) in paragraph (5)--
(i) by striking subparagraph (I);
(ii) by redesignating subparagraphs (A)
through (H) as subparagraphs (B) through (I),
respectively;
(iii) by inserting before subparagraph (B)
the following:
``(A) success with respect to student achievement
in relation to the institution's mission, including, as
appropriate, consideration of course completion, State
licensing examination, and job placement rates;'';
(iv) in subparagraph (I) (as redesignated
by clause (ii)), by striking ``in clock hours
or credit hours''; and
(v) in subparagraph (L)--
(I) by inserting ``record of''
before ``compliance'';
(II) by striking ``Act, including
any'' and inserting ``Act based on
the'';
(III) by inserting ``any'' after
``reviews, and''; and
(IV) in the matter following
subparagraph (L), by striking ``(G),'';
(3) by amending paragraph (1) of subsection (l) to read as
follows: ``(1)(A)(i) If the Secretary determines that an
accrediting agency or association has failed to apply
effectively the standards in this section, or is otherwise not
in compliance with the requirements of this section, the
Secretary shall--
``(I) after notice and opportunity for a hearing,
limit, suspend, or terminate the approval of the agency
or association; or
``(II) require the agency or association to take
appropriate action to bring the agency or association
into compliance with such requirements within a
timeframe specified by the Secretary, except that--
``(aa) such timeframe shall not exceed 12
months unless the Secretary extends such period
for good cause; and
``(bb) if the agency or association fails
to bring the agency or association into
compliance within such timeframe, the Secretary
shall, after notice and opportunity for a
hearing, limit, suspend, or terminate the
approval of the agency or association.''; and
(4) in subsection (n)(3), by adding at the end the
following: ``When the Secretary decides to recognize an
accrediting agency or association, the Secretary shall
determine the agency or association's scope of recognition. If
the agency or association reviews institutions offering
distance education courses or programs and the Secretary
determines that the agency or association meets the
requirements of this section, then the agency shall be
recognized and the scope of recognition shall include
accreditation of institutions offering distance education
courses or programs.''.
SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) Single Application Form.--Section 498(b) (20 U.S.C. 1099c(b))
is amended--
(1) in paragraph (1), by striking ``and capability'' and
inserting ``financial responsibility, and administrative
capability'';
(2) by amending paragraph (3) to read as follows:
``(3) requires--
``(A) a description of the third party servicers of
an institution of higher education; and
``(B) the institution to maintain a copy of any
contract with a financial aid service provider or loan
servicer, and provide a copy of any such contract to
the Secretary upon request;'';
(3) in paragraph (4), by striking the period and inserting
``; and''; and
(4) by adding at the end the following:
``(5) provides, at the option of the institution, for
participation in 1 or more of the programs under part B or
D.''.
(b) Financial Responsibility Standards.--Section 498(c) (20 U.S.C.
1099c(c)) is amended--
(1) in paragraph (2), by striking ``with respect to
operating losses, net worth, asset to liabilities ratios, or
operating fund deficits'' and inserting ``regarding ratios that
demonstrate financial responsibility,'';
(2) in paragraph (3)(A), by striking ``Secretary third
party'' and all that follows through ``payable to the
Secretary'' and inserting ``Secretary any third party
guarantees, which the Secretary determines are reasonable,
that''; and
(3) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by
striking ``ratio of current assets to current
liabilities'' and inserting ``criteria''; and
(B) in subparagraph (C), by striking ``current
operating ratio requirement'' and inserting
``criteria''.
(c) Financial Guarantees From Owners.--Section 498(e) (20 U.S.C.
1099c(e)) is amended--
(1) in the subsection heading, by inserting ``of For-Profit
Institutions'' after ``Owners'';
(2) in paragraph (1)(A), by striking ``from an'' and
inserting ``from a for-profit'';
(3) in paragraph (2)--
(A) in the matter preceding clause (i) of
subparagraph (A), by inserting ``for-profit'' after
``or more'';
(B) in subparagraph (B), by inserting ``for-
profit'' after ``or more''; and
(4) in paragraph (3), by striking ``operation of, an
institution or'' and inserting ``operation of, a for-profit
institution or the''.
(d) Applications and Site Visits.--Section 498(f) (20 U.S.C.
1099c(f)) is amended--
(1) in the subsection heading by striking ``; Site Visits
and Fees'' and inserting ``and Site Visits'';
(2) in the second sentence, by striking ``shall'' and
inserting ``may'';
(3) in the third sentence, strike ``may'' and insert
``shall''; and
(4) by striking the fourth sentence.
(e) Time Limitations on, and Renewal of, Eligibility.--Subsection
(g) of section 498 (20 U.S.C. 1099c) is amended to read as follows:
``(g) Time Limitations on, and Renewal of, Eligibility.--
``(1) General rule.--After the expiration of the
certification of any institution under the schedule prescribed
under this section (as in effect prior to the enactment of the
Higher Education Act Amendments of 1998), or upon request for
initial certification from an institution not previously
certified, the Secretary may certify the eligibility for the
purposes of any program authorized under this title of each
such institution for a period not to exceed 6 years.
``(2) Notification.--The Secretary shall notify each
institution of higher education not later than 6 months prior
to the date of the expiration of the institution's
certification.
``(3) Institutions outside the united states.--The
Secretary shall promulgate regulations regarding the
recertification requirements applicable to an institution of
higher education outside of the United States that meets the
requirements of section 481(a)(1)(C) and received less than
$500,000 in funds under part B for the most recent year for
which data are available.''.
(f) Provisional Certification.--Section 498(h) (20 U.S.C. 1099c(h))
is amended--
(1) in paragraph (1)(B)(ii), by striking ``an eligible''
and inserting ``a for-profit eligible''; and
(2) in paragraph (2), by striking ``the approval'' and
inserting ``the recognition''.
(g) Treatment of Changes of Ownership.--Section 498(i) (20 U.S.C.
1099c(i)) is amended--
(1) in the subsection heading, by inserting ``of For-Profit
Institutions'' after ``Ownership''; and
(2) in paragraph (2)--
(A) in subparagraph (A), by inserting ``for-
profit'' before ``institution'';
(B) in subparagraph (C), by striking ``two'' and
inserting ``a for-profit institution with one'';
(C) in subparagraph (D), by inserting ``for-
profit'' before ``institutions'';
(D) in subparagraph (E), by inserting ``for-
profit'' before ``institutions''; and
(E) in subparagraph (F), by inserting ``for-
profit'' before ``institution''.
(h) Treatment of Branches.--The second sentence of section
498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by inserting ``after the
branch is certified by the Secretary as a branch campus participating
in a program under title IV,'' after ``2 years''.
SEC. 494. PROGRAM REVIEW AND DATA.
Section 498A (20 U.S.C. 1099c-1) is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph
(A), by striking ``may'' and inserting
``shall'';
(ii) by amending subparagraph (C) to read
as follows:
``(C) institutions with a significant fluctuation
in Federal Stafford Loan volume, Federal Direct
Stafford/Ford Loan volume, or Federal Pell Grant award
volume, or any combination thereof, in the year for
which the determination is made, compared to the year
prior to such year, that are not accounted for by
changes in the Federal Stafford Loan program, the
Federal Direct Stafford/Ford Loan program, or the Pell
Grant program, or any combination thereof;'';
(iii) by amending subparagraph (D) to read
as follows:
``(D) institutions reported to have deficiencies or
financial aid problems by the State licensing or
authorizing agency, or by the appropriate accrediting
agency or association;'';
(iv) in subparagraph (E), by inserting
``and'' after the semicolon; and
(v) by striking subparagraphs (F) and (G),
and inserting the following:
``(F) such other institutions that the Secretary
determines may pose a significant risk of failure to
comply with the administrative capability or financial
responsibility provisions of this title; and''; and
(B) in paragraph (3)(A), by inserting ``relevant''
after ``all''; and
(2) by amending subsection (b) to read as follows:
``(b) Special Administrative Rules.--
``(1) In general.--In carrying out paragraphs (1) and (2)
of subsection (a) and any other relevant provisions of this
title, the Secretary shall--
``(A) establish guidelines designed to ensure
uniformity of practice in the conduct of program
reviews of institutions of higher education;
``(B) make available to each institution
participating in programs authorized under this title
complete copies of all review guidelines and procedures
used in program reviews;
``(C) permit the institution to correct or cure an
administrative, accounting, or recordkeeping error if
the error is not part of a pattern of error and there
is no evidence of fraud or misconduct related to the
error;
``(D) base any civil penalty assessed against an
institution of higher education resulting from a
program review or audit on the gravity of the
violation, failure, or misrepresentation; and
``(E) inform the appropriate State and accrediting
agency or association whenever the Secretary takes
action against an institution of higher education under
this section, section 498, or section 432.
``(2) Uniformity of application of regulations.--The
Secretary shall review the regulations of the Department and
the application of such regulations to ensure the uniformity of
interpretation and application of the regulations.
``(3) Nonduplication and coordination.--The Secretary shall
establish a process for ensuring that eligibility and
compliance issues, such as institutional audit, program review,
and recertification, are considered simultaneously, and shall
establish a process for identifying unnecessary duplication of
reporting and related regulatory requirements. In developing
such processes, the Secretary shall consult with relevant
representatives of institutions participating in the programs
authorized by this title.''.
PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
Title IV (20 U.S.C. 1070 et seq.) is amended by adding at the end
the following:
``PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
``SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
``(a) Establishment.--The Secretary shall establish in the
Department a performance-based organization (hereafter in this part
referred to as the `PBO') to administer various functions relating to
student financial assistance programs authorized under this title.
``(b) Oversight and Authority.--
``(1) Policy oversight and direction.--The Secretary shall
maintain responsibility for the policy relating to functions
managed by the PBO, and the PBO shall remain subject to the
Secretary's oversight and direction.
``(2) Audits and review.--The PBO shall be subject to the
usual and customary Federal audit procedures and to review by
the Inspector General of the Department.
``(3) Changes.--
``(A) In general.--The Secretary and the Chief
Operating Officer shall consult concerning the effects
of policy, market, or other changes on the ability of
the PBO to achieve the goals and objectives established
in the performance plan described in subsection (e).
``(B) Revisions to agreement.--The Secretary and
the Chief Operating Officer may revise the annual
performance agreement described in subsection (f)(2) in
light of policy, market, or other changes that occur
after the Secretary and the PBO enter into the
agreement.
``(c) Purposes of PBO.--The purposes of the PBO are--
``(1) to improve service to students and other participants
in the student financial assistance programs authorized under
this title, including making those programs more understandable
to students and their parents;
``(2) to reduce the costs of administering those programs;
``(3) to increase the accountability of the officials
responsible for administering those programs;
``(4) to provide greater flexibility in the administration
of those programs;
``(5) to improve and integrate the information and delivery
systems that support those programs; and
``(6) to develop and maintain a student financial
assistance system that contains complete, accurate, and timely
data to ensure program integrity.
``(d) Functions.--
``(1) In general.--Subject to subsection (b) of this
section, the PBO shall be responsible for administration of the
information and financial systems that support student
financial assistance programs authorized under this title,
including--
``(A) collecting, processing, and transmitting
applicant data to students, institutions, and
authorized third parties, as provided for in section
483;
``(B) contracting for the information and financial
systems supporting student financial assistance
programs under this title;
``(C) developing technical specifications for
software and systems that support those programs; and
``(D) providing all customer service, training, and
user support related to systems that support those
programs.
``(2) Additional functions.--The Secretary may allocate to
the PBO such additional functions as the Secretary determines
necessary or appropriate to achieve the purposes of the PBO.
``(e) Performance Plan and Report.--
``(1) Performance plan.--
``(A) In general.--Each year, the Secretary and
Chief Operating Officer shall agree on, and make
available to the public, a performance plan for the PBO
for the succeeding 5 years that establishes measurable
goals and objectives for the organization.
``(B) Consultation.--In developing the 5-year
performance plan, the Secretary and the Chief Operating
Officer shall consult with students, institutions of
higher education, Congress, lenders, and other
interested parties not less than 30 days prior to the
implementation of the performance plan.
``(C) Areas.--The plan shall address the PBO's
responsibilities in the following areas:
``(i) Improving service.--Improving service
to students and other participants in student
financial aid programs authorized under this
title, including making those programs more
understandable to students and their parents.
``(ii) Reducing costs.--Reducing the costs
of administering those programs.
``(iii) Improvement and integration of
support systems.--Improving and integrating the
information and delivery systems that support
those programs.
``(iv) Delivery and information system.--
Developing an open, common, and integrated
delivery and information system for programs
authorized under this title.
``(v) Other areas.--Any other areas
identified by the Secretary.
``(2) Annual report.--Each year, the Chief Operating
Officer shall prepare and submit to Congress, through the
Secretary, an annual report on the performance of the PBO,
including an evaluation of the extent to which the PBO met the
goals and objectives contained in the 5-year performance plan
described in paragraph (1) for the preceding year.
``(f) Chief Operating Officer.--
``(1) Appointment.--
``(A) In general.--The management of the PBO shall
be vested in a Chief Operating Officer who shall be
appointed by the Secretary to a term of not less than 3
and not more than 5 years and compensated without
regard to chapters 33, 51, and 53 of title 5, United
States Code.
``(B) Basis.--The appointment shall be made on the
basis of demonstrated ability in management and
experience in information technology or financial
services, without regard to political affiliation or
activity.
``(C) Reappointment.--The Secretary may reappoint
the Chief Operating Officer to subsequent terms of not
less than 3 and not more than 5 years, so long as the
performance of the Chief Operating Officer, as set
forth in the performance agreement described in
paragraph (2), is satisfactory.
``(2) Performance agreement.--
``(A) In general.--Each year, the Secretary and the
Chief Operating Officer shall enter into an annual
performance agreement, that shall set forth measurable
organization and individual goals for the Chief
Operating Officer.
``(B) Transmittal.--The final agreement shall be
transmitted to the Committee on Education and the
Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate,
and made publicly available.
``(3) Compensation.--
``(A) In general.--The Chief Operating Officer is
authorized to be paid at an annual rate of basic pay
not to exceed the maximum rate of basic pay for the
Senior Executive Service under section 5382 of title 5,
United States Code, including any applicable locality-
based comparability payment that may be authorized
under section 5304(h)(2)(C) of such title.
``(B) Bonus.--In addition, the Chief Operating
Officer may receive a bonus in an amount that does not
exceed 50 percent of such annual rate of basic pay,
based upon the Secretary's evaluation of the Chief
Operating Officer's performance in relation to the
goals set forth in the performance agreement described
in paragraph (2).
``(C) Payment.--Payment of a bonus under this
subparagraph (B) may be made to the Chief Operating
Officer only to the extent that such payment does not
cause the Chief Operating Officer's total aggregate
compensation in a calendar year to equal or exceed the
amount of the President's salary under section 102 of
title 3, United States Code.
``(4) Removal.--The Chief Operating Officer shall be
removable--
``(A) by the President; or
``(B) by the Secretary for misconduct or failure to
meet the goals set forth in the performance agreement
described in paragraph (2).
``(g) Senior Management.--
``(1) Appointment.--
``(A) In general.--The Chief Operating Officer may
appoint such senior managers as that officer determines
necessary without regard to the provisions of title 5,
United States Code, governing appointments in the
competitive service.
``(B) Compensation.--The senior managers described
in subparagraph (A) may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter
53 of such title relating to classification and General
Schedule pay rates.
``(2) Performance agreement.--Each year, the Chief
Operating Officer and each senior manager appointed under this
subsection shall enter into an annual performance agreement
that sets forth measurable organization and individual goals.
``(3) Compensation.--
``(A) In general.--A senior manager appointed under
this subsection may be paid at an annual rate of basic
pay of not more than the maximum rate of basic pay for
the Senior Executive Service under section 5382 of
title 5, United States Code, including any applicable
locality-based comparability payment that may be
authorized under section 5304(h)(2)(C) of such title 5.
``(B) Bonus.--In addition, a senior manager may
receive a bonus in an amount such that the manager's
total annual compensation does not exceed 125 percent
of the maximum rate of basic pay for the Senior
Executive Service, including any applicable locality-
based comparability payment, based upon the Chief
Operating Officer's evaluation of the manager's
performance in relation to the goals set forth in the
performance agreement described in paragraph (2).
``(4) Removal.--A senior manager shall be removable by the
Secretary or by the Chief Operating Officer.
``(h) Authorization of Appropriations.--The Secretary shall
allocate from funds made available under section 458 such funds as are
appropriate to the functions assumed by the PBO. In addition, there are
authorized to be appropriated such sums as may be necessary to carry
out the purposes of this section, including transition costs.''.
TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.
(a) In General.--Title V (20 U.S.C. 1101 et seq.) is amended--
(1) by amending the title heading to read as follows:
``TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS'';
(2) by repealing parts A, B, C, D, E, and F of title V (20
U.S.C. 1102 et seq., 1103 et seq., 1104 et seq., 1107 et seq.,
1111 et seq., and 1113 et seq.);
(3) by transferring part C of title IX, part D of title IX,
part A of title XI, and part A of title X (20 U.S.C. 1134h et
seq., 1134l et seq., 1136 et seq., and 1135 et seq.) to title V
and redesignating such parts as parts A, B, C, and D,
respectively;
(4) by redesignating sections 931 through 935 (20 U.S.C.
1134h et seq. and 1134k-1 et seq.) as sections 511 through 515,
respectively;
(5) by redesignating sections 941 through 947 (20 U.S.C.
1134l and 1134q-1) as section 521 through 527, respectively;
(6) by redesignating sections 1101 through 1109 (20 U.S.C.
1136 through 1136h) as sections 531 through 539, respectively;
and
(7) by redesignating sections 1001, 1002, 1003, 1004, and
1011 (20 U.S.C. 1135, 1135a-1, 1135a-2, 1135a-3, and 1135a-11)
as sections 541, 542, 543, 544, and 551, respectively.
(b) Cross Reference Conforming Amendments.--
(1) Jacob k. javits fellowship program.--Section 514(a) (as
redesignated by subsection (a)(4)) (20 U.S.C. 1134k(a)) is
amended by striking ``933'' and inserting ``513''.
(2) Graduate assistance in areas of national need.--Part B
of title V (as redesignated by paragraphs (3) and (5) of
subsection (a)) (20 U.S.C. 1134l et seq.) is amended--
(A) in section 524(b)(7) (as redesignated by
subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by striking
``945'' and inserting ``525''; and
(B) in section 525(c) (as redesignated by
subsection (a)(5)) (20 U.S.C. 1134p(c))--
(i) by striking ``946(a)'' and inserting
``526(a)''; and
(ii) by striking ``944(b)(2)'' and
inserting ``524(b)(2)''.
(3) Urban and community service.--Part C of title V (as
redesignated by paragraphs (3) and (6) of subsection (a)) (20
U.S.C. 1136 et seq.) is amended--
(A) in section 532(b) (20 U.S.C. 1136a(b)), by
striking ``1104'' and inserting ``534'';
(B) in section 534(12) (20 U.S.C. 1136c(12)), by
striking ``1103(a)(2)(B)'' and inserting
``533(a)(2)(B)''; and
(C) in section 538(1) (20 U.S.C. 1136g(1)), by
striking ``1103'' and inserting ``533''.
(4) FIPSE.--Subsections (b) and (c) of section 544 (as
redesignated by subsection (a)(7)) (20 U.S.C. 1135a-3) each are
amended by striking ``1001(b)'' and inserting ``541(b)''.
SEC. 502. PURPOSE.
Section 500 (20 U.S.C. 1101) is amended to read as follows:
``SEC. 500. PURPOSE.
``It is the purpose of this title--
``(1) to authorize national graduate fellowship programs--
``(A) in order to attract students of superior
ability and achievement, exceptional promise, and
demonstrated financial need, into high-quality graduate
programs and provide the students with the financial
support necessary to complete advanced degrees; and
``(B) that are designed to--
``(i) sustain and enhance the capacity for
graduate education in areas of national need;
and
``(ii) encourage talented students to
pursue scholarly careers in the humanities,
social sciences, and the arts; and
``(2) to promote postsecondary programs.''.
PART A--JACOB K. JAVITS FELLOWSHIP PROGRAM
SEC. 511. AWARD OF FELLOWSHIPS.
(a) Award of Jacob K. Javits Fellowships.--Section 511 (as
redesignated by section 501(4)) is amended--
(1) in subsection (a)--
(A) in the first sentence, by inserting ``,
financial need,'' after ``demonstrated achievement'';
(B) in the second sentence--
(i) by striking ``students intending'' and
inserting ``students who are eligible to
receive any grant, loan, or work assistance
pursuant to section 484 and intend''; and
(ii) by striking ``commonly accepted'' and
all that follows through ``degree-granting
institution'' and inserting ``the terminal
highest degree awarded in the area of study'';
and
(C) in the third sentence, by inserting ``following
the fiscal year'' after ``July 1 of the fiscal year'';
and
(2) by adding at the end the following:
``(d) Process and Timing of Competition.--The Secretary shall make
applications for fellowships under this part available not later than
October 1 of the academic year preceding the academic year for which
fellowships will be awarded, and shall announce the recipients of
fellowships under this section not later than March 1 of the academic
year preceding the academic year for which the fellowships are awarded.
``(e) Authority To Contract.--The Secretary is authorized to enter
into a contract with a nongovernmental agency to administer the program
assisted under this part if the Secretary determines that entering into
the contract is an efficient means of carrying out the program.''.
(b) Allocation of Fellowships.--Section 512 (as redesignated by
section 501(4)) (20 U.S.C. 1134i) is amended--
(1) in subsection (a)--
(A) in the third sentence of paragraph (1), by
striking ``knowledgeable about and have experience''
and inserting ``representative of a range of
disciplines''; and
(B) in paragraph (2)--
(i) by amending subparagraph (B) to read as
follows:
``(B) establish general criteria for the award of
fellowships in academic fields identified by the Board,
or, in the event that the Secretary enters into a
contract with a nongovernmental entity to administer
the program assisted under this part, by such
nongovernmental entity;''; and
(ii) in subparagraph (C), by inserting
``except that, in the event that the Secretary
enters into a contract with a nongovernmental
entity to administer the program, such panels
may be appointed by such nongovernmental
entity'' before the semicolon; and
(2) in the first sentence of subsection (b), by inserting
``except that in the event that the Secretary enters into a
contract with a nongovernmental entity to administer the
program, such panels may be appointed by such nongovernmental
entity'' before the period.
(c) Stipends.--Section 513 (as redesignated by section 501(4)) (20
U.S.C. 1134j) is amended--
(1) in subsection (a)--
(A) by striking ``1993-1994'' and inserting ``1999-
2000''; and
(B) by striking ``according to measurements of need
approved by the Secretary'' and inserting ``determined
in accordance with part F of title IV''; and
(2) in subsection (b)(1)(A)--
(A) in clause (i)--
(i) by striking ``$6,000'' and inserting
``$10,000''; and
(ii) by striking ``1993-1994'' and
inserting ``1999-2000''; and
(B) in clause (ii)--
(i) in the matter preceding subclause (I),
by striking ``1993-1994'' and inserting ``1999-
2000'';
(ii) in subclause (I), by striking ``$9,000
for the academic year 1993-1994'' and inserting
``$10,000 for the academic year 1999-2000'';
and
(iii) in subclause (II), by striking
``$9,000'' and inserting ``$10,000''.
(d) Authorization of Appropriations.--Section 515 (as redesignated
by section 501(4)) (20 U.S.C. 1134k-1) is amended by striking ``1993''
and inserting ``1999''.
PART B--GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED
SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.
(a) Designation of Areas of National Need.--Subsection (b) of
section 523 (as redesignated by section 501(5)) (20 U.S.C. 1134n) is
amended to read as follows:
``(b) Designation of Areas of National Need.--After consultation
with the National Science Foundation, the National Academy of Sciences,
and other appropriate Federal and nonprofit agencies and organizations,
the Secretary shall designate areas of national need. In making such
designations, the Secretary shall take into consideration--
``(1) the extent to which the national interest in the area
is compelling;
``(2) the extent to which other Federal programs support
postbaccalaureate study in the area concerned; and
``(3) an assessment of how the program may achieve the most
significant impact with available resources.''.
(b) Content of Applications.--Section 524(b) (as redesignated by
section 501(5)) (20 U.S.C. 1134o(b)) is amended--
(1) in paragraph (2)--
(A) by striking ``funds'' and inserting
``sources''; and
(B) by inserting ``, which contribution may be in
cash or in kind, fairly valued'' before the semicolon;
(2) by redesignating paragraphs (4) through (9) as
paragraphs (5) through (10), respectively;
(3) by inserting after paragraph (3) the following:
``(4) describe the number, types, and amounts of the
fellowships that the applicant intends to offer with grant
funds provided under this part;'' and
(4) in paragraph (5)(A) (as redesignated by paragraph (2)),
by striking ``criteria developed by the institution'' and
inserting ``part F of title IV''.
(c) Awards.--Section 525 (as redesignated by section 501(5)) (20
U.S.C. 1134p) is amended--
(1) in the third sentence of subsection (b)--
(A) by striking ``1993-1994'' and inserting ``1999-
2000''; and
(B) by striking ``according to measurements of need
approved by the Secretary'' and inserting ``determined
in accordance with part F of title IV''; and
(2) in subsection (c), by striking ``such payments'' and
inserting ``such excess''.
(d) Institutional Payments.--Section 526(a)(1) (as redesignated by
section 501(5)) (20 U.S.C. 1134q(a)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking ``$6,000 annually'' and inserting
``$10,000 for each academic year,''; and
(B) by striking ``1993-1994'' and inserting ``1999-
2000''; and
(2) in subparagraph (B)--
(A) in the matter preceding clause (i), by striking
``1993-1994'' and inserting ``1999-2000'';
(B) in clause (i), by striking ``$9,000 for the
academic year 1993-1994'' and inserting ``$10,000 for
the academic year 1999-2000''; and
(C) in clause (ii), by striking ``$9,000'' and
inserting ``$10,000''.
(e) Authorization of Appropriations.--Section 527 (as redesignated
by section 501(5)) (20 U.S.C. 1134q-1) is amended by striking
``$40,000,000 for fiscal year 1993'' and inserting ``$30,000,000 for
fiscal year 1999''.
PART C--URBAN COMMUNITY SERVICE
SEC. 531. URBAN COMMUNITY SERVICE.
(a) Priority.--Section 533(b) (as redesignated by section
501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding at the end the
following: ``In addition, the Secretary shall give priority to eligible
institutions submitting applications that demonstrate the eligible
institution's commitment to urban community service.''.
(b) Authorization of Appropriations.--Section 539 (as redesignated
by section 501(a)(6)) (20 U.S.C. 1136h) is amended by striking ``1993''
and inserting ``1999''.
PART D--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION
SEC. 541. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.
(a) Authority.--Section 541(a) (as redesignated by section
501(a)(7)) (20 U.S.C. 1135(a)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``or combinations of such
institutions'' and inserting ``, combinations of such
institutions,''; and
(B) by striking ``institutions and combinations of
such institutions'' and inserting ``institutions,
combinations, and agencies''; and
(2) in paragraph (2)--
(A) by striking ``and programs involving new'' and
inserting ``, programs and joint efforts involving'';
and
(B) by striking ``new combinations'' and inserting
``combinations''.
(b) Technical Employees.--Section 543(a) (as redesignated by
section 501(a)(7)) (20 U.S.C. 1135a-2(a)) is amended by striking ``5
technical'' and inserting ``7 technical''.
(c) Authorization of Appropriations.--Section 544 (as redesignated
by section 501(a)(7)) (20 U.S.C. 1135a-3) is amended--
(1) in subsection (a), by striking ``$20,000,000 for fiscal
year 1993'' and inserting ``$26,000,000 for fiscal year 1999'';
and
(2) in subsection (b), by striking ``1993'' and inserting
``1999''.
(d) Areas of National Need.--
(1) Areas.--Section 551(c) (as redesignated by section
501(a)(7)) (20 U.S.C. 1135a-11(c)) is amended--
(A) in paragraph (2), by striking ``Campus climate
and culture'' and inserting ``Institutional
restructuring to improve learning and promote cost
efficiencies'';
(B) in paragraph (3), by inserting ``of model
programs'' after ``dissemination''; and
(C) by adding at the end the following:
``(4) Articulation between 2-year and 4-year institutions
of higher education, including developing innovative methods
for ensuring the successful transfer of students from 2-year to
4-year institutions of higher education.''.
(2) Authorization of appropriations.--Section 551(d) (as
redesignated by section 501(a)(7)) (20 U.S.C. 1135a-11(d)) is
amended by striking ``1993'' and inserting ``1999''.
PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES;
HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS
SEC. 551. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES;
HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS.
Title V (20 U.S.C. 1101 et seq.) is amended further by adding at
the end the following:
``PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES
``SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES.
``(a) Purpose.--It is the purpose of this part--
``(1) to support the development of model programs to
provide technical assistance or training, and professional
development, for faculty and administrators in institutions of
higher education, as defined in section 481(a), to provide the
faculty and administrators with the skills and assistance to
teach effectively students with disabilities; and
``(2) to ensure effective evaluation and dissemination of
such model programs.
``(b) Grants Authorized.--
``(1) In general.--The Secretary is authorized to award
grants to institutions of higher education to carry out the
purposes of this part.
``(2) Model programs.--To the extent feasible, the model
programs developed under this part shall be developed for a
range of types and sizes of institutions of higher education.
``(3) Geographic distribution.--In awarding grants under
this part, the Secretary shall consider--
``(A) providing an equitable geographic
distribution of such grants; and
``(B) distributing such grants to urban and rural
areas.
``(4) Approaches.--The Secretary shall award grants under
this part for a range of approaches to providing support to
faculty and administrators, such as in-service training,
professional development, customized and general technical
assistance, workshops, summer institutes, distance learning and
the use of educational technology.
``(c) Dissemination of Grants.--The Secretary may award grants to
institutions of higher education that have demonstrated exceptional
programs for students with disabilities under this part in order to
disseminate those programs.
``(d) Applications.--Each institution of higher education desiring
a grant under this part shall submit an application to the Secretary at
such time, in such manner, and accompanied by such information as the
Secretary may require. Each such application shall include--
``(1) a plan to assess the needs of the institution of
higher education in order to meet the purposes of this part, in
consultation with a broad range of persons within that
institution; and
``(2) a plan for coordinating with or collaborating with
the office within the institution that provides services to
students with disabilities, and the equal opportunity office
within the institution, if the offices exist.
``(e) Use of Funds.--Any institution of higher education receiving
a grant under this part--
``(1) shall use the grant funds to--
``(A) meet the purposes of this section; and
``(B) ensure that projects assisted under this part
include components for model development,
demonstration, evaluation, and dissemination to other
institutions of higher education; and
``(2) may include, to the extent practicable, graduate
teaching assistants in the services provided under the grant.
``(f) Grant Awards.--The Secretary shall award grants under this
part for a period of 3 years.
``(g) Construction.--Nothing in this section shall be construed to
impose any additional duty, obligation, or responsibility on an
institution of higher education, or on the institution's
administrators, faculty, or staff, in addition to the requirements of
section 504 of the Rehabilitation Act of 1973 and the Americans with
Disabilities Act of 1990.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $10,000,000 for fiscal year 1999
and such sums as may be necessary for each of the 4 succeeding fiscal
years.
``PART F--HISPANIC-SERVING INSTITUTIONS
``SEC. 581. PURPOSE.
``The purpose of this part is to--
``(1) expand educational opportunities for, and improve the
academic attainment of, Hispanic students; and
``(2) expand and enhance the academic offerings, program
quality, and institutional stability of colleges and
universities that are educating the majority of Hispanic
college students and helping large numbers of Hispanic students
and other low-income individuals complete postsecondary
degrees.
``SEC. 582. PROGRAM AUTHORIZED.
``(a) In General.--The Secretary shall provide grants and related
assistance to Hispanic-serving institutions to enable such institutions
to improve and expand their capacity to serve Hispanic students and
other low-income individuals.
``(b) Authorized Activities.--
``(1) Types of activities authorized.--Grants awarded under
this section shall be used by Hispanic-serving institutions of
higher education to assist such institutions to plan, develop,
undertake, and carry out programs to improve and expand such
institutions' capacity to serve Hispanic students and other
low-income students.
``(2) Examples of authorized activities.--The programs
described in paragraph (1) may include--
``(A) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes;
``(B) renovation and improvement in classroom,
library, laboratory, and other instructional
facilities;
``(C) support of faculty exchanges, and faculty
development and faculty fellowships to assist in
attaining advanced degrees in their field of
instruction;
``(D) curriculum development and academic
instruction;
``(E) purchase of library books, periodicals,
microfilm, and other educational materials;
``(F) funds and administrative management, and
acquisition of equipment for use in strengthening funds
management;
``(G) joint use of facilities such as laboratories
and libraries;
``(H) academic tutoring and counseling programs and
student support services; and
``(I) expanding the number of Hispanic and other
underrepresented graduate and professional students
that can be served by the institution by expanding
courses and institutional resources.
``(3) Endowment fund.--
``(A) In general.--A Hispanic-serving institution
may use not more than 20 percent of the grant funds
provided under this part to establish or increase an
endowment fund at the institution.
``(B) Matching requirement.--In order to be
eligible to use grant funds in accordance with
subparagraph (A), the Hispanic-serving institution
shall provide matching funds, in an amount equal to the
Federal funds used in accordance with subparagraph (A),
for the establishment or increase of the endowment
fund.
``(C) Comparability.--The provisions of part C of
title III regarding the establishment or increase of an
endowment fund, that the Secretary determines are not
inconsistent with this paragraph, shall apply to funds
used under subparagraph (A).
``(c) Wait-Out-Period.--Each Hispanic-serving institution that
receives a grant under this part shall not be eligible to receive an
additional grant under this part until 2 years after the date on which
the preceding grant period terminates.
``SEC. 583. APPLICATION PROCESS.
``(a) Institutional Eligibility.--Each Hispanic-serving institution
desiring to receive assistance under this part shall submit to the
Secretary such enrollment data as may be necessary to demonstrate that
the institution is a Hispanic-serving institution as defined in section
585, along with such other data and information as the Secretary may by
regulation require.
``(b) Applications.--Any institution which is determined by the
Secretary to be a Hispanic-serving institution (on the basis of the
data and information submitted under subsection (a)) may submit an
application for assistance under this part to the Secretary. Such
application shall include--
``(1) a 5-year plan for improving the assistance provided
by the Hispanic-serving institution to Hispanic students and
other low-income individuals; and
``(2) such other information and assurance as the Secretary
may require.
``(c) Priority.--With respect to applications for assistance under
this section, the Secretary shall give priority to an application that
contains satisfactory evidence that the Hispanic-serving institution
has entered into or will enter into a collaborative arrangement with at
least one local educational agency or community-based organization to
provide such agency or organization with assistance (from funds other
than funds provided under this part) in reducing dropout rates for
Hispanic students, improving rates of academic achievement for Hispanic
students, and increasing the rates at which Hispanic secondary school
graduates enroll in higher education.
``SEC. 584. SPECIAL RULE.
``No Hispanic-serving institution that is eligible for and receives
funds under this part may receive funds under part A or B of title III
during the period for which funds under this part are awarded.
``SEC. 585. DEFINITIONS.
``For purposes of this part:
``(1) Hispanic-serving institution.--The term `Hispanic-
serving institution' means an institution of higher education
which--
``(A) is an eligible institution under section
312(b);
``(B) at the time of application, has an enrollment
of undergraduate full-time equivalent students that is
at least 25 percent Hispanic students; and
``(C) provides assurances that not less than 50
percent of its Hispanic students are low-income
individuals.
``(2) Low-income individual.--The term `low-income
individual' means an individual from a family whose taxable
income for the preceding year did not exceed 150 percent of an
amount equal to the poverty level determined by using criteria
of poverty established by the Bureau of the Census.
``SEC. 586. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$45,000,000 for fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
``PART G--GENERAL PROVISIONS
``SEC. 591. ADMINISTRATIVE PROVISIONS FOR PARTS A AND B.
``(a) Coordinated Administration.--In carrying out the purpose
described in section 500(1), the Secretary shall provide for
coordinated administration and regulation of graduate programs assisted
under parts A and B with other Federal programs providing assistance
for graduate education in order to minimize duplication and improve
efficiency to ensure that the programs are carried out in a manner most
compatible with academic practices and with the standard timetables for
applications for, and notifications of acceptance to, graduate
programs.
``(b) Hiring Authority.--For purposes of carrying out parts A and
B, the Secretary shall appoint, without regard to the provisions of
title 5, United States Code, that govern appointments in the
competitive service, such administrative and technical employees, with
the appropriate educational background, as shall be needed to assist in
the administration of such parts. The employees shall be paid without
regard to the provisions of chapter 51 and subchapter III of chapter 53
of such title relating to classification and General Schedule pay
rates.
``(c) Use for Religious Purposes Prohibited.--No institutional
payment or allowance under section 513(b) or 526 shall be paid to a
school or department of divinity as a result of the award of a
fellowship under part A or B, respectively, to an individual who is
studying for a religious vocation.
``(d) Evaluation.--The Secretary shall evaluate the success of
assistance provided to individuals under part A or B with respect to
graduating from their degree programs, and placement in faculty and
professional positions.
``(e) Continuation Awards.--The Secretary, using funds appropriated
to carry out parts A and B, and before awarding any assistance under
such parts to a recipient that did not receive assistance under part C
or D of title IX (as such parts were in effect prior to the date of
enactment of the Higher Education Amendments of 1998) shall continue to
provide funding to recipients of assistance under such part C or D (as
so in effect), as the case may be, pursuant to any multiyear award of
such assistance.''.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.
Part A of title VI (20 U.S.C. 1121 et seq.) is amended to read as
follows:
``PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES
``SEC. 601. FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds that--
``(1) the well-being of the United States, its economy and
long-range security, is dependent on the education and training
of Americans in international and foreign language studies and
on a strong research base in these areas;
``(2) knowledge of other countries and the ability to
communicate in other languages is essential to the promotion of
mutual understanding and cooperation among nations; and
``(3) systematic efforts are necessary to enhance the
capacity of institutions of higher education in the United
States for--
``(A) producing graduates with international and
foreign language expertise and knowledge; and
``(B) research regarding such expertise and
knowledge.
``(b) Purposes.--It is the purpose of this part--
``(1) to assist in the development of knowledge,
international study, resources and trained personnel;
``(2) to stimulate the attainment of foreign language
acquisition and fluency;
``(3) to develop a pool of international experts to meet
national needs; and
``(4) to coordinate the programs of the Federal Government
in the areas of foreign language, area and other international
studies, including professional international affairs
education, and research.
``SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND
PROGRAMS.
``(a) National Language and Area Centers and Programs Authorized.--
``(1) Centers and programs.--
``(A) In general.--The Secretary is authorized--
``(i) to make grants to institutions of
higher education, or combinations thereof, for
the purpose of establishing, strengthening, and
operating comprehensive language and area
centers and programs; and
``(ii) to make grants to such institutions
or combinations for the purpose of
establishing, strengthening, and operating a
diverse network of undergraduate language and
area centers and programs.
``(B) National resources.--The centers and programs
referred to in paragraph (1) shall be national
resources for--
``(i) teaching of any modern foreign
language;
``(ii) instruction in fields needed to
provide full understanding of areas, regions,
or countries in which such language is commonly
used;
``(iii) research and training in
international studies, and the international
and foreign language aspects of professional
and other fields of study; and
``(iv) instruction and research on issues
in world affairs which concern one or more
countries.
``(2) Authorized activities.--Any such grant may be used to
pay all or part of the cost of establishing or operating a
center or program, including the cost of--
``(A) faculty, staff, and student travel in foreign
areas, regions, or countries;
``(B) teaching and research materials;
``(C) curriculum planning and development;
``(D) bringing visiting scholars and faculty to the
center to teach or to conduct research;
``(E) establishing and maintaining linkages with
overseas institutions of higher education and other
organizations that may contribute to the teaching and
research of the center or program; and
``(F) training and improvement of the staff, for
the purpose of, and subject to such conditions as the
Secretary finds necessary for, carrying out this
section.
``(3) Grants to maintain library collections.--The
Secretary may make grants to centers described in paragraph (1)
having important library collections, as determined by the
Secretary, for the maintenance of such collections.
``(4) Outreach grants and summer institutes.--The Secretary
may make additional grants to centers described in paragraph
(1) for any one or more of the following purposes:
``(A) Programs of linkage or outreach between
foreign language, area studies, and other international
fields and professional schools and colleges.
``(B) Programs of linkage or outreach with 2-year
and 4-year colleges and universities.
``(C) Programs of linkage or outreach with
departments or agencies of Federal and State
Governments.
``(D) Programs of linkage or outreach with the news
media, business, professional, or trade associations.
``(E) Summer institutes in foreign area, foreign
language, and other international fields designed to
carry out the programs of linkage and outreach in
subparagraphs (A), (B), (C), and (D).
``(b) Stipends for Foreign Language and Area Studies.--
``(1) In general.--The Secretary is authorized to make
grants to institutions of higher education or combinations of
such institutions for the purpose of paying stipends to
individuals undergoing advanced training in any center or
program approved by the Secretary.
``(2) Requirements.--Students receiving stipends described
in paragraph (1) shall be individuals who are engaged in an
instructional program with stated performance goals for
functional foreign language use or in a program developing such
performance goals, in combination with area studies,
international studies, or the international aspects of a
professional studies program.
``(3) Allowances.--Stipends awarded to graduate level
recipients may include allowances for dependents and for travel
for research and study in the United States and abroad.
``(c) Special Rule With Respect to Travel.--No funds may be
expended under this part for undergraduate travel except in accordance
with rules prescribed by the Secretary setting forth policies and
procedures to assure that Federal funds made available for such travel
are expended as part of a formal program of supervised study.
``SEC. 603. LANGUAGE RESOURCE CENTERS.
``(a) Language Resource Centers Authorized.--The Secretary is
authorized to make grants to and enter into contracts with institutions
of higher education, or combinations of such institutions, for the
purpose of establishing, strengthening, and operating a small number of
national language resource and training centers, which shall serve as
resources to improve the capacity to teach and learn foreign languages
effectively.
``(b) Authorized Activities.--The activities carried out by the
centers described in subsection (a)--
``(1) shall include effective dissemination efforts,
whenever appropriate; and
``(2) may include--
``(A) the conduct and dissemination of research on
new and improved teaching methods, including the use of
advanced educational technology;
``(B) the development and dissemination of new
teaching materials reflecting the use of such research
in effective teaching strategies;
``(C) the development, application, and
dissemination of performance testing appropriate to an
educational setting for use as a standard and
comparable measurement of skill levels in all
languages;
``(D) the training of teachers in the
administration and interpretation of performance
tests, the use of effective teaching strategies, and the use of new
technologies;
``(E) the publication and dissemination to
individuals and organizations in the foreign language
field of instructional materials in the less commonly
taught languages;
``(F) the development and dissemination of
materials designed to serve as a resource for foreign
language teachers at the elementary and secondary
school levels; and
``(G) the operation of intensive summer language
institutes to train advanced foreign language students,
provide professional development, and improve language
instruction through preservice and inservice language
training for teachers.
``(c) Conditions for Grants.--Grants under this section shall be
made on such conditions as the Secretary determines to be necessary to
carry out the provisions of this section.
``SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE
PROGRAMS.
``(a) Incentives for the Creation of New Programs and the
Strengthening of Existing Programs in Undergraduate International
Studies and Foreign Languages.--
``(1) Authority.--The Secretary is authorized to make
grants to institutions of higher education, combinations of
such institutions, or partnerships between nonprofit
educational institutions and institutions of higher education,
to assist such institutions, combinations or partnerships in
planning, developing, and carrying out programs to improve
undergraduate instruction in international studies and foreign
languages. Such grants shall be awarded to institutions,
combinations or partnerships seeking to create new programs or
to strengthen existing programs in area studies, foreign
languages, and other international fields.
``(2) Federal share and use of funds.--Grants made under
this section may be used to pay not more than 50 percent of the
cost of projects and activities which are an integral part of
such a program, such as--
``(A) planning for the development and expansion of
undergraduate programs in international studies and
foreign languages;
``(B) teaching, research, curriculum development,
faculty training in the United States or abroad, and
other related activities, including the expansion of
library and teaching resources;
``(C) expansion of opportunities for learning
foreign languages, including less commonly taught
languages;
``(D) programs under which foreign teachers and
scholars may visit institutions as visiting faculty;
``(E) programs designed to develop or enhance
linkages between 2-year and 4-year institutions of
higher education, or baccalaureate and post-
baccalaureate programs or institutions;
``(F) the development of undergraduate study abroad
programs in locations abroad in which such study
opportunities are not otherwise available and the
integration of these programs into specific on-campus
degree programs;
``(G) the development of model programs to enhance
the effectiveness of study abroad, including
predeparture and post return programs;
``(H) the development of programs designed to
integrate professional and technical education with
area studies, foreign languages, and other
international fields;
``(I) the conduct of summer institutes in foreign
area, foreign language, and other international fields
for purposes that are consistent with the projects and
activities described in this subsection; and
``(J) the development of partnerships between
institutions of higher education and the private
sector, government, and elementary and secondary
education institutions to enhance international
knowledge.
``(3) Non-federal share.--The non-Federal share of the cost
of the programs assisted under this subsection may be provided
either in cash or in kind. Such assistance may be composed of
institutional and noninstitutional funds, including State,
private sector, corporation, or foundation contributions.
``(4) Priority.--In awarding grants under this section, the
Secretary shall give priority to applications from institutions
of higher education, combinations or partnerships that require
entering students to have successfully completed at least 2
years of secondary school foreign language instruction or that
require each graduating student to earn 2 years of
postsecondary credit in a foreign language (or have
demonstrated equivalent competence in the foreign language) or,
in the case of a 2-year degree granting institution, offer 2
years of postsecondary credit in a foreign language.
``(5) Grant conditions.--Grants under this subsection shall
be made on such conditions as the Secretary determines to be
necessary to carry out this subsection.
``(6) Application.--Each application for assistance under
this subsection shall include--
``(A) evidence that the applicant has conducted
extensive planning prior to submitting the application;
``(B) an assurance that the faculty and
administrators of all relevant departments and programs
served by the applicant are involved in ongoing
collaboration with regard to achieving the stated
objectives of the application;
``(C) an assurance that students at the applicant
institutions, as appropriate, will have equal access
to, and derive benefits from, the program assisted
under this subsection; and
``(D) an assurance that each institution,
combination or partnership will use the Federal
assistance provided under this subsection to supplement
and not supplant funds expended by the institution,
prior to the receipt of the Federal assistance, for programs to improve
undergraduate instruction in international studies and foreign
languages.
``(7) Evaluation.--The Secretary may establish requirements
for program evaluations and require grant recipients to submit
annual reports that evaluate the progress and performance of
students participating in programs assisted under this
subsection.
``(b) Programs of National Significance.--The Secretary may also
award grants to public and private nonprofit agencies and
organizations, including professional and scholarly associations,
whenever the Secretary determines such grants will make an especially
significant contribution to improving undergraduate international
studies and foreign language programs.
``SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.
``(a) Authorized Activities.--The Secretary may, directly or
through grants or contracts, conduct research and studies that
contribute to achieving the purposes of this part. Such research and
studies may include--
``(1) studies and surveys to determine needs for increased
or improved instruction in foreign language, area studies, or
other international fields, including the demand for foreign
language, area, and other international specialists in
government, education, and the private sector;
``(2) studies and surveys to assess the utilization of
graduates of programs supported under this title by
governmental, educational, and private sector organizations and
other studies assessing the outcomes and effectiveness of
programs so supported;
``(3) evaluation of the extent to which programs assisted
under this title that address national needs would not
otherwise be offered;
``(4) comparative studies of the effectiveness of
strategies to provide international capabilities at
institutions of higher education;
``(5) research on more effective methods of providing
instruction and achieving competency in foreign languages;
``(6) the development and publication of specialized
materials for use in foreign language, area studies, and other
international fields, or for training foreign language, area,
and other international specialists;
``(7) studies and evaluations of effective practices in the
dissemination of international information, materials,
research, teaching strategies, and testing techniques
throughout the education community, including elementary and
secondary schools; and
``(8) the application of performance tests and standards
across all areas of foreign language instruction and classroom
use.
``(b) Annual Report.--The Secretary shall prepare, publish, and
announce an annual report listing the books and research materials
produced with assistance under this section.
``SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.
``(a) Competitive Grants.--The Secretary shall award grants under
section 602 competitively on the basis of criteria that separately, but
not less rigorously, evaluates the applications for comprehensive and
undergraduate language and area centers and programs.
``(b) Selection Criteria.--The Secretary shall set criteria for
grants awarded under section 602 by which a determination of excellence
shall be made to meet the differing objectives of graduate and
undergraduate institutions.
``(c) Equitable Distribution of Grants.--The Secretary shall, to
the extent practicable, award grants under this part (other than
section 602) in such manner as to achieve an equitable distribution of
the grant funds throughout the United States, based on the merit of a
proposal as determined pursuant to a peer review process involving
broadly representative professionals.
``SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.
``(a) Selection Criteria.--The Secretary shall make excellence the
criterion for selection of grants awarded under section 602.
``(b) Equitable Distribution.--To the extent practicable and
consistent with the criterion of excellence, the Secretary shall award
grants under this part (other than section 602) in such a manner as
will achieve an equitable distribution of funds throughout the United
States.
``(c) Support for Undergraduate Education.--The Secretary shall
also award grants under this part in such manner as to ensure that an
appropriate portion of the funds appropriated for this part (as
determined by the Secretary) are used to support undergraduate
education.
``SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.
``(a) Centers Authorized.--The Secretary is authorized to make
grants to and enter into contracts with any American overseas research
center that is a consortium of institutions of higher education
(hereafter in this section referred to as a ``center'') to enable such
center to promote postgraduate research, exchanges and area studies.
``(b) Use of Grants.--Grants made and contracts entered into
pursuant to this section may be used to pay all or a portion of the
cost of establishing or operating a center or program, including--
``(1) the cost of faculty and staff stipends and salaries;
``(2) the cost of faculty, staff, and student travel;
``(3) the cost of the operation and maintenance of overseas
facilities;
``(4) the cost of teaching and research materials;
``(5) the cost of acquisition, maintenance, and
preservation of library collections;
``(6) the cost of bringing visiting scholars and faculty to
a center to teach or to conduct research;
``(7) the cost of organizing and managing conferences; and
``(8) the cost of publication and dissemination of material
for the scholarly and general public.
``(c) Limitation.--The Secretary shall only award grants to and
enter into contracts with centers under this section that--
``(1) receive more than 50 percent of their funding from
public or private United States sources;
``(2) have a permanent presence in the country in which the
center is located; and
``(3) are organizations described in section 501(c)(3) of
the Internal Revenue Code of 1986 which are exempt from
taxation under section 501(a) of such Code.
``(d) Development Grants.--The Secretary is authorized to make
grants for the establishment of new centers. The grants may be used to
fund activities that, within 1 year, will result in the creation of a
center described in subsection (c).
``SEC. 609. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$80,000,000 for fiscal year 1999, and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
Part B of title VI (20 U.S.C. 1130 et seq.) is amended--
(1) in section 612 (20 U.S.C. 1130-1)--
(A) in subsection (c)--
(i) in paragraph (1)--
(I) in subparagraph (B), by
striking ``advanced''; and
(II) in subparagraph (C), by
striking ``evening or summer''; and
(ii) in paragraph (2)(C), by inserting
``foreign language,'' after ``studies,''; and
(B) in subsection (d)(2)(G), by inserting ``, such
as a representative of a community college in the
region served by the center'' before the period; and
(2) in section 614 (20 U.S.C. 1130b)--
(A) in subsection (a), by striking ``1993'' and
inserting ``1999''; and
(B) in subsection (b), by striking ``1993'' and
inserting ``1999''.
SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.
Part C of title VI (20 U.S.C. 1131 et seq.) is amended--
(1) in section 621(e) (20 U.S.C. 1131(e))--
(A) by striking ``one-fourth'' and inserting ``one-
half''; and
(B) by adding at the end the following: ``The non-
Federal contribution shall be made from private sector
sources.'';
(2) by redesignating sections 622 through 627 (20 U.S.C.
1131a and 1131f) as sections 623 through 628, respectively; and
(3) by inserting after section 621 (20 U.S.C. 1131) the
following:
``SEC. 622. INSTITUTIONAL DEVELOPMENT.
``(a) In General.--The Institute shall award grants, from amounts
available to the Institute for each fiscal year, to historically Black
colleges and universities, Hispanic-serving institutions, Tribally
Controlled Colleges or Universities, and minority institutions, to
enable such colleges, universities, and institutions to strengthen
international affairs programs.
``(b) Application.--No grant may be made by the Institute unless an
application is made by the college, university, or institution at such
time, in such manner, and accompanied by such information as the
Institute may require.
``(c) Definitions.--In this section--
``(1) the term `historically Black college and university'
has the meaning given the term in section 322;
``(2) the term `Hispanic-serving institution' has the
meaning given the term in section 585;
``(3) the term `Tribally Controlled College or University'
has the meaning given the term in section 2 of the Tribally
Controlled College or University Assistance Act of 1978 (25
U.S.C. 1801); and
``(4) the term `minority institution' has the meaning given
the term in section 365.'';
(4) in section 623 (as redesignated by paragraph (2))--
(A) in the section heading, by striking ``junior
year'' and inserting ``study'';
(B) in subsection (b)(2)--
(i) by inserting ``, or completing the
third year of study in the case of a summer
abroad program,'' after ``study''; and
(ii) by striking ``junior year'' and
inserting ``study'';
(C) in subsection (c)--
(i) in the matter preceding paragraph (1),
by striking ``junior year'' and inserting
``study'';
(ii) in paragraph (1), by striking ``junior
year'' and inserting ``study''; and
(iii) in paragraph (2)--
(I) by striking ``one-half'' and
inserting ``one-third''; and
(II) by striking ``junior year''
and inserting ``study'';
(5) in section 627 (as redesignated by paragraph (2)) (20
U.S.C. 1131e), by striking ``625'' and inserting ``626''; and
(6) in section 628 (as redesignated by paragraph (2)) (20
U.S.C. 1131f), by striking ``1993'' and inserting ``1999''.
SEC. 604. GENERAL PROVISIONS.
Section 632 (20 U.S.C. 1132-1) is repealed.
TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER ACTS
PART A--INDIAN EDUCATION PROGRAMS
SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSISTANCE ACT OF 1978.
(a) Reauthorization.--
(1) Amount of grants.--Section 108(a)(2) of the Tribally
Controlled Community College Assistance Act of 1978 (25 U.S.C.
1808(a)(2)) is amended by striking ``$5,820'' and inserting
``$6,000''.
(2) Authorization of appropriations.--
(A) Title i.--Section 110(a) of the Tribally
Controlled Community College Assistance Act of 1978 (25
U.S.C. 1810(a)) is amended--
(i) in paragraph (1), by striking ``1993''
and inserting ``1999'';
(ii) in paragraph (2), by striking
``$30,000,000 for fiscal year 1993'' and
inserting ``$40,000,000 for fiscal year 1999'';
(iii) in paragraph (3), by striking
``1993'' and inserting ``1999''; and
(iv) in paragraph (4), by striking ``1993''
and inserting ``1999''.
(B) Title iii.--Section 306(a) of the Tribally
Controlled Community College Assistance Act of 1978 (25
U.S.C. 1836(a)) is amended by striking ``1993'' and
inserting ``1999''.
(C) Title iv.--Section 403 of the Tribal Economic
Development and Technology Related Education Assistance
Act of 1990 (25 U.S.C. 1852) is amended by striking
``1993'' and inserting ``1999''.
(b) Name Change.--The Tribally Controlled Community College
Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended--
(1) by striking ``community college'' each place the term
appears and inserting ``college or university'';
(2) by striking ``Community College'' each place the term
appears (other than when such term is preceded by the term
``Navajo'') and inserting ``College or University'';
(3) by striking ``community colleges'' each place the term
appears and inserting ``colleges or universities'';
(4) by striking ``such college'' each place the term
appears and inserting ``such college or university''; and
(5) by striking ``community college's'' and inserting
``college or university's''.
SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN CULTURE
AND ART DEVELOPMENT.
Section 1531 of the American Indian, Alaska Native, and Native
Hawaiian Culture and Art Development Act (20 U.S.C. 4451) is amended to
read as follows:
``SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out part A
$5,000,000 for fiscal year 1999.''.
PART B--ADVANCED PLACEMENT INCENTIVE PROGRAM
SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.
(a) Program Established.--The Secretary of Education is authorized
to make grants to States having applications approved under subsection
(d), from allotments under subsection (b), to enable the States to
reimburse low-income individuals to cover part or all of the cost of
advanced placement test fees, if the low-income individuals--
(1) are enrolled in an advanced placement class; and
(2) plan to take an advanced placement test.
(b) Allotment.--From the sum appropriated under subsection (j) for
a fiscal year, the Secretary shall allot to each State an amount that
bears the same relation to the sum as the number of low-income
individuals in the State bears to the number of low-income individuals
in all States.
(c) Information Dissemination.--The State educational agency may
use not more than 5 percent of grant funds received for a fiscal year
to disseminate information regarding the availability of test fee
payments under this section to eligible individuals through secondary
school teachers and guidance counselors.
(d) Requirements for Approval of Applications.--In approving
applications for grants the Secretary of Education shall--
(1) require that each such application contain a
description of the advance placement test fees the State will
pay on behalf of individual students;
(2) require an assurance that any funds received under this
section, other than funds used in accordance with subsection
(c), shall be used only to pay advanced placement test fees;
and
(3) contain such information as the Secretary may require
to demonstrate that the State will ensure that a student is
eligible for payments under this section, including the
documentation required by chapter 1 of subpart 2 of part A of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a-
11 et seq.).
(e) Funding Rule.--Funds provided under this section shall be used
to supplement and not supplant other Federal, State, local or private
funds available to assist low-income individuals in paying for advanced
placement testing, except that such funds may be used to supplant the
funds so available if the funds used to supplant are used to increase
the participation of low-income individuals in advanced placement
courses through teacher training and other activities directly related
to increasing the availability of advanced placement courses.
(f) Special Rule.--The Secretary of Education shall only award
grants under this section for a fiscal year if the amount the College
Board spends for the College Board's fee assistance program for low-
income students for the fiscal year is not less than the amount the
College Board spent for such program for the preceding fiscal year.
(g) Regulations.--The Secretary of Education shall prescribe such
regulations as are necessary to carry out this section.
(h) Report.--Each State annually shall report to the Secretary of
Education regarding--
(1) the number of low-income individuals in the State who
receive assistance under this section; and
(2) the teacher training and other activities described in
subsection (e).
(i) Definition.--In this section:
(1) Advanced placement test.--The term ``advanced placement
test'' includes only an advanced placement test approved by the
Secretary of Education for the purposes of this section.
(2) Low-income individual.--The term ``low-income
individual'' has the meaning given the term in section
402A(g)(2) of the Higher Education Act of 1965 (20 U.S.C.
1070a-11(g)(2)).
(j) Authorization of Appropriations.--There are authorized to be
appropriated $10,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years to carry out this
section.
PART C--UNITED STATES INSTITUTE OF PEACE
SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE OF PEACE.
The United States Institute of Peace Act (22 U.S.C. 4601 et seq.)
is amended--
(1) in section 1705 (22 U.S.C. 4604)--
(A) in subsection (f), by inserting ``personal
service and other'' after ``may enter into''; and
(B) in subsection (o), by inserting after
``Services'' the following: ``and use all sources of
supply and services of the General Services
Administration'';
(2) in section 1710(a)(1) (22 U.S.C. 4609(a)(1))--
(A) by striking ``1993'' and inserting ``1999'';
and
(B) by striking ``6'' and inserting ``4''; and
(3) in the second and third sentences of section 1712 (22
U.S.C. 4611), by striking ``shall'' each place the term appears
and inserting ``may''.
PART D--COMMUNITY SCHOLARSHIP MOBILIZATION
SEC. 741. SHORT TITLE.
This part may be cited as the ``Community Scholarship Mobilization
Act.''
SEC. 742. FINDINGS.
Congress finds that--
(1) the local community, when properly organized and
challenged, is one of the best sources of academic support,
motivation toward achievement, and financial resources for
aspiring postsecondary students;
(2) local communities, working to complement or augment
services currently offered by area schools and colleges, can
raise the educational expectations and increase the rate of
postsecondary attendance of their youth by forming locally-
based organizations that provide both academic support
(including guidance, counseling, mentoring, tutoring,
encouragement, and recognition) and tangible, locally raised,
effectively targeted, publicly recognized, financial
assistance;
(3) proven methods of stimulating these community efforts
can be promoted through Federal support for the establishment
of regional, State or community program centers to organize and
challenge community efforts to develop educational incentives
and support for local students; and
(4) using Federal funds to leverage private contributions
to help students from low-income families attain educational
and career goals is an efficient and effective investment of
scarce taxpayer-provided resources.
SEC. 743. DEFINITIONS.
In this part:
(1) Regional, state or community program center.--The term
``regional, State or community program center'' means an
organization that--
(A) is a division of, responsible to, and overseen
by, the national organization; and
(B) is staffed by professionals trained to create,
develop, and sustain local entities in towns, cities,
and neighborhoods.
(2) Local entity.--The term ``local entity'' means an
organization that--
(A) is a nonprofit organization that is described
in section 501(c)(3) of the Internal Revenue Code of
1986, and exempt from taxation under section 501(a) of
such Code (or shall meet this criteria through
affiliation with the national organization);
(B) is formed for the purpose of providing
educational scholarships and academic support for
residents of the local community served by such
organization;
(C) solicits broad-based community support in its
academic support and fund-raising activities;
(D) is broadly representative of the local
community in the structures of its volunteer-operated
organization and has a board of directors that includes
leaders from local neighborhood organizations and
neighborhood residents, such as school or college
personnel, parents, students, community agency
representatives, retirees, and representatives of the
business community;
(E) awards scholarships without regard to age, sex,
marital status, race, creed, color, religion, national
origin or disability; and
(F) gives priority to awarding scholarships for
postsecondary education to deserving students from low-
income families in the local community.
(3) National organization.--The term ``national
organization'' means an organization that--
(A) has the capacity to create, develop and sustain
local entities and affiliated regional, State or
community program centers;
(B) has the capacity to sustain newly created local
entities in towns, cities, and neighborhoods through
ongoing training support programs;
(C) is described in section 501(c)(3) of the
Internal Revenue Code of 1986, and exempt from taxation
under section 501(a) of such Code;
(D) is a publicly supported organization within the
meaning of section 170(b)(1)(A)(iv) of such Code;
(E) ensures that each of the organization's local
entities meet the criteria described in subparagraphs
(C) and (D); and
(F) has a program for or experience in cooperating
with secondary and postsecondary institutions in
carrying out the organization's scholarship and
academic support activities.
(4) High poverty area.--The term ``high poverty area''
means a community with a higher percentage of children from
low-income families than the national average of such
percentage and a lower percentage of children pursuing
postsecondary education than the national average of such
percentage.
(5) Students from low-income families.--The term ``students
from low-income families'' means students determined, pursuant
to part F of title IV of the Higher Education Act of 1965 (20
U.S.C. 1087kk et seq.), to be eligible for a Federal Pell Grant
under subpart 1 of part A of title IV of such Act (20 U.S.C. 1070a).
SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.
(a) Purpose.--It is the purpose of this part to establish and
support regional, State or community program centers to enable such
centers to foster the development of local entities in high poverty
areas that promote higher education goals for students from low-income
families by--
(1) providing academic support, including guidance,
counseling, mentoring, tutoring, and recognition; and
(2) providing scholarship assistance for the cost of
postsecondary education.
(b) Endowment Grant Authority.--From the funds appropriated
pursuant to the authority of section 746, the Secretary shall award an
endowment grant, on a competitive basis, to a national organization to
enable such organization to support the establishment or ongoing work
of regional, State or community program centers that foster the
development of local entities in high poverty areas to improve high
school graduation rates and postsecondary attendance through the
provision of academic support services and scholarship assistance for
the cost of postsecondary education.
SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.
(a) In General.--The Secretary shall award one or more endowment
grants described in section 744(b) pursuant to an agreement between the
Secretary and a national organization. Such agreement shall--
(1) require the national organization to establish an
endowment fund in the amount of the grant, the corpus of which
shall remain intact and the interest income from which shall be
used to support the activities described in paragraphs (2) and
(3);
(2) require the national organization to use 70 percent of
the interest income from the endowment fund in any fiscal year
to support the establishment or ongoing work of regional, State
or community program centers to enable such centers to work
with local communities to establish local entities in high
poverty areas and provide ongoing technical assistance,
training workshops, and other activities to help ensure the
ongoing success of the local entities;
(3) require the national organization to use 30 percent of
the interest income from the endowment fund in any fiscal year
to provide scholarships for postsecondary education to students
from low-income families, which scholarships shall be matched
on a dollar-for-dollar basis from funds raised by the local
entities;
(4) require that at least 50 percent of all the interest
income from the endowment be allocated to establish new local
entities or support regional, State or community program
centers in high poverty areas;
(5) require the national organization to submit, for each
fiscal year in which such organization uses the interest from
the endowment fund, a report to the Secretary that contains--
(A) a description of the programs and activities
supported by the interest on the endowment fund;
(B) the audited financial statement of the national
organization for the preceding fiscal year;
(C) a plan for the programs and activities to be
supported by the interest on the endowment fund as the
Secretary may require; and
(D) an evaluation of the programs and activities
supported by the interest on the endowment fund as the
Secretary may require; and
(E) data indicating the number of students from
low-income families who receive scholarships from local
entities, and the amounts of such scholarships;
(6) contain such assurances as the Secretary may require
with respect to the management and operation of the endowment
fund; and
(7) contain an assurance that if the Secretary determines
that such organization is not in substantial compliance with
the provisions of this part, then the national organization
shall pay to the Secretary an amount equal to the corpus of the
endowment fund plus any accrued interest on such fund that is
available to the national organization on the date of such
determination.
(b) Returned Funds.--All funds returned to the Secretary pursuant
to subsection (a)(7) shall be available to the Secretary to carry out
any scholarship or grant program assisted under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.).
SEC. 746. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this part
$10,000,000 for fiscal year 2000.
PART E--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS
SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS.
(a) Findings.--Congress makes the following findings:
(1) Over 150,000 youth offenders age 21 and younger are
incarcerated in the Nation's jails, juvenile facilities, and
prisons.
(2) Most youth offenders who are incarcerated have been
sentenced as first-time adult felons.
(3) Approximately 75 percent of youth offenders are high
school dropouts who lack basic literacy and life skills, have
little or no job experience, and lack marketable skills.
(4) The average incarcerated youth has attended school only
through grade 10.
(5) Most of these youths can be diverted from a life of
crime into productive citizenship with available educational,
vocational, work skills, and related service programs.
(6) If not involved with educational programs while
incarcerated, almost all of these youths will return to a life
of crime upon release.
(7) The average length of sentence for a youth offender is
about 3 years. Time spent in prison provides a unique
opportunity for education and training.
(8) Even with quality education and training provided
during incarceration, a period of intense supervision, support,
and counseling is needed upon release to ensure effective
reintegration of youth offenders into society.
(9) Research consistently shows that the vast majority of
incarcerated youths will not return to the public schools to
complete their education.
(10) There is a need for alternative educational
opportunities during incarceration and after release.
(b) Definition.--For purposes of this part, the term ``youth
offender'' means a male or female offender under the age of 25, who is
incarcerated in a State prison, including a prerelease facility.
(c) Grant Program.--The Secretary of Education (in this section
referred to as the ``Secretary'') shall establish a program in
accordance with this section to provide grants to the State
correctional education agencies in the States, from allocations for the
States under subsection (i), to assist and encourage incarcerated
youths to acquire functional literacy, life, and job skills, through
the pursuit of a postsecondary education certificate, or an associate
of arts or bachelor's degree while in prison, and employment counseling
and other related services which start during incarceration and
continue through prerelease and while on parole.
(d) Application.--To be eligible for a grant under this section, a
State correctional education agency shall submit to the Secretary a
proposal for a youth offender program that--
(1) identifies the scope of the problem, including the
number of incarcerated youths in need of postsecondary
education and vocational training;
(2) lists the accredited public or private educational
institution or institutions that will provide postsecondary
educational services;
(3) lists the cooperating agencies, public and private, or
businesses that will provide related services, such as
counseling in the areas of career development, substance abuse,
health, and parenting skills;
(4) describes the evaluation methods and performance
measures that the State correctional education agency will
employ, which methods and measures--
(A) shall be appropriate to meet the goals and
objectives of the proposal; and
(B) shall include measures of--
(i) program completion;
(ii) student academic and vocational skill
attainment;
(iii) success in job placement and
retention; and
(iv) recidivism;
(5) describes how the proposed programs are to be
integrated with existing State correctional education programs
(such as adult education, graduate education degree programs,
and vocational training) and State industry programs;
(6) addresses the educational needs of youth offenders who
are in alternative programs (such as boot camps); and
(7) describes how students will be selected so that only
youth offenders eligible under subsection (f) will be enrolled
in postsecondary programs.
(e) Program Requirements.--Each State correctional education agency
receiving a grant under this section shall--
(1) integrate activities carried out under the grant with
the objectives and activities of the school-to-work programs of
such State, including--
(A) work experience or apprenticeship programs;
(B) transitional worksite job training for
vocational education students that is related to the
occupational goals of such students and closely linked
to classroom and laboratory instruction;
(C) placement services in occupations that the
students are preparing to enter;
(D) employment-based learning programs; and
(E) programs that address State and local labor
shortages;
(2) annually report to the Secretary and the Attorney
General on the results of the evaluations conducted using the
methods and performance measures contained in the proposal; and
(3) provide to each State for each student eligible under
subsection (f) not more than $1,500 annually for tuition,
books, and essential materials, and not more than $300 annually
for related services such as career development, substance
abuse counseling, parenting skills training, and health
education, for each eligible incarcerated youth.
(f) Student Eligibility.--A youth offender shall be eligible for
participation in a program receiving a grant under this section if the
youth offender--
(1) is eligible to be released within 5 years (including a
youth offender who is eligible for parole within such time);
and
(2) is 25 years of age or younger.
(g) Length of Participation.--A State correctional education agency
receiving a grant under this section shall provide educational and
related services to each participating youth offender for a period not
to exceed 5 years, 1 year of which may be devoted to study in a
graduate education degree program or to remedial education services for
students who have obtained a secondary school diploma. Educational and
related services shall start during the period of incarceration in
prison or prerelease and may continue during the period of parole.
(h) Education Delivery Systems.--State correctional education
agencies and cooperating institutions shall, to the extent practicable,
use high-tech applications in developing programs to meet the
requirements and goals of this section.
(i) Allocation of Funds.--From the amounts appropriated pursuant to
subsection (j), the Secretary shall allot to each State an amount that
bears the same relationship to such funds as the total number of
students eligible under subsection (f) in such State bears to the total
number of such students in all States.
(j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $14,000,000 for fiscal year 1999
and such sums as may be necessary for each of the 4 succeeding fiscal
years.
PART F--EDUCATION OF THE DEAF
SEC. 761. SHORT TITLE.
This part may be cited as the ``Education of the Deaf Amendments of
1998''.
SEC. 762. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.
Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C.
4034(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by inserting ``and'' after
the semicolon;
(B) in subparagraph (B), by striking ``; and'' and
inserting a period; and
(C) by striking subparagraph (C);
(2) in the matter preceding subparagraph (A) of paragraph
(2)--
(A) by striking ``paragraph (1)'' and inserting
``paragraph (1)(B)''; and
(B) by striking ``section 618(b)'' and inserting
``section 618(a)(1)(A)'';
(3) in paragraph (3), by striking ``intermediate
educational unit'' and inserting ``educational service
agency'';
(4) in paragraph (4)--
(A) in subparagraph (A), by striking ``intermediate
educational unit'' and inserting ``educational service
agency''; and
(B) in subparagraph (B), by striking ``intermediate
educational units'' and inserting ``educational service
agencies''; and
(5) by amending subparagraph (C) to read as follows:
``(C) provide the child a free appropriate public
education in accordance with part B of the Individuals
with Disabilities Education Act and procedural
safeguards in accordance with the following provisions
of section 615 of such Act:
``(i) paragraphs (1), and (3) through (6),
of subsection (b).
``(ii) Subsections (c) through (g).
``(iii) Subsection (h), except for the
matter in paragraph (4) pertaining
to transmission of findings and decisions to a State advisory panel.
``(iv) Paragraphs (1) and (2) of subsection
(i).
``(v) Subsection (j)--
``(I) except that such subsection
shall not be applicable to a decision
by the University to refuse to admit a
child; or
``(II) to dismiss a child, except
that, before dismissing any child, the
University shall give at least 60 days
written notice to the child's parents
and to the local educational agency in
which the child resides, unless the
dismissal involves a suspension,
expulsion, or other change in placement
covered under section 615(k).
``(vi) Subsections (k) through (m).''.
SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.
Section 105(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
4305(a)) is amended--
(1) by striking ``within 1 year after enactment of the
Education of the Deaf Act Amendments of 1992, a new'' and
inserting ``and periodically update, an''; and
(2) by amending the second sentence to read as follows:
``The Secretary or the University shall determine the necessity
for the periodic update described in the preceding sentence.''.
SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
Paragraph (2) of section 112(a) of the Education of the Deaf Act of
1986 (20 U.S.C. 4332(a)) is amended to read as follows:
``(2) The Secretary and the institution of higher education with
which the Secretary has an agreement under this section--
``(A) shall periodically assess the need for modification
of the agreement; and
``(B) shall periodically update the agreement as determined
necessary by the Secretary or the institution.''.
SEC. 765. DEFINITIONS.
Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C.
4351) is amended--
(1) in paragraph (1)(C), by striking ``Palau (but only
until the Compact of Free Association with Palau takes
effect),''; and
(2) in paragraph (5)--
(A) by inserting ``and'' after ``Virgin Islands,'';
and
(B) by striking ``, and Palau (but only until the
Compact of Free Association with Palau takes effect)''.
SEC. 766. GIFTS.
Subsection (b) of section 203 of the Education of the Deaf Act of
1986 (20 U.S.C. 4353) is amended to read as follows:
``(b) Independent Financial and Compliance Audit.--
``(1) In general.--Gallaudet University shall have an
annual independent financial and compliance audit made of the
programs and activities of the University, including the
national mission and school operations of the elementary and
secondary education programs at Gallaudet. The institution of
higher education with which the Secretary has an agreement
under section 112 shall have an annual independent financial
and compliance audit made of the programs and activities of
such institution of higher education, including NTID, and
containing specific schedules and analyses for all NTID funds,
as determined by the Secretary.
``(2) Compliance.--As used in paragraph (1), compliance
means compliance with sections 102(b), 105(b)(4), 112(b)(5),
and 203(c), paragraphs (2) and (3) of section 207(b),
subsections (b)(2), (b)(3), and (c) through (f), of section
207, and subsections (b) and (c) of section 210.
``(3) Submission of audits.--A copy of each audit described
in paragraph (1) shall be provided to the Secretary within 15
days of acceptance of the audit by the University or the
institution authorized to establish and operate the NTID under
section 112(a), as the case may be, but not later than January
10 of each year.''.
SEC. 767. REPORTS.
Section 204(3) of the Education of the Deaf Act of 1986 (20 U.S.C.
4354(3)) is amended--
(1) in subparagraph (A), by striking ``The annual'' and
inserting ``A summary of the annual''; and
(2) in subparagraph (B), by striking ``the annual'' and
inserting ``a summary of the annual''.
SEC. 768. MONITORING, EVALUATION, AND REPORTING.
Section 205(c) of the Education of the Deaf Act of 1986 (20 U.S.C.
4355(c)) is amended by striking ``1993, 1994, 1995, 1996, and 1997''
and inserting ``1998 through 2003''.
SEC. 769. INVESTMENTS.
Section 207 of the Education of the Deaf Act of 1986 (20 U.S.C.
4357) is amended--
(1) in subsection (c)(1), by inserting ``the Federal
contribution of'' after ``shall invest'';
(2) in subsection (d)(3)(A), by striking ``prior'' and
inserting ``current''; and
(3) in subsection (h)--
(A) in paragraph (1), by striking ``1993 through
1997'' and inserting ``1998 through 2003''; and
(B) in paragraph (2), by striking ``1993 through
1997'' and inserting ``1998 through 2003''.
SEC. 770. INTERNATIONAL STUDENTS.
Section 210(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
4359a(a)) is amended by inserting before the period ``, except that in
any school year no United States citizen who is qualified to be
admitted to the University or NTID and applies for admission to the
University or NTID shall be denied admission because of the admission
of an international student''.
SEC. 771. RESEARCH PRIORITIES.
Section 211 of the Education of the Deaf Act of 1986 (20 U.S.C.
4360) is amended to read as follows:
``SEC. 211. RESEARCH PRIORITIES.
``(a) Research Priorities.--Gallaudet University and the National
Technical Institute for the Deaf shall each establish and disseminate
priorities for their national mission with respect to deafness related
research, development, and demonstration activities, that reflect
public input, through a process that includes consumers, constituent
groups, and the heads of other federally funded programs. The
priorities for the University shall include activities conducted as
part of the University's elementary and secondary education programs
under section 104.
``(b) Research Reports.--The University and NTID shall each prepare
and submit an annual research report, to the Secretary, the Committee
on Education and the Workforce of the House of Representatives, and the
Committee on Labor and Human Resources of the Senate, not later than
January 10 of each year, that shall include--
``(1) a summary of the public input received as part of the
establishment and dissemination of priorities required by
subsection (a), and the University's and NTID's response to the
input; and
``(2) a summary description of the research undertaken by
the University and NTID, the start and projected end dates for
each research project, the projected cost and source or sources
of funding for each project, and any products resulting from
research completed in the prior fiscal year.''.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
Title II of the Education of the Deaf Act of 1986 (20 U.S.C. 4351
et seq.) is amended by adding at the end the following:
``SEC. 212. AUTHORIZATION OF APPROPRIATIONS.
``(a) Gallaudet University.--There are authorized to be
appropriated such sums as may be necessary for each of the fiscal years
1998 through 2003 to carry out the provisions of titles I and II,
relating to--
``(1) Gallaudet University;
``(2) Kendall Demonstration Elementary School; and
``(3) the Model Secondary School for the Deaf.
``(b) National Technical Institute for the Deaf.--There are
authorized to be appropriated such sums as may be necessary for each of
the fiscal years 1998 through 2003 to carry out the provisions of
titles I and II relating to the National Technical Institute for the
Deaf.''.
SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.
The Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is
amended by adding at the end the following:
``TITLE III--COMMISSION ON EDUCATION OF THE DEAF
``SEC. 301. COMMISSION ESTABLISHED.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish a
Commission on the Education of the Deaf to identify those
education-related factors in the lives of individuals who are
deaf that result in barriers to successful postsecondary
education experiences and employment, and those education-
related factors in the lives of individuals who are deaf that
contribute to successful postsecondary education experiences
and employment.
``(2) Definition of individuals who are deaf.--In this
title, the term `individuals who are deaf' means all persons
with hearing impairments, including those who are hard-of-
hearing, those deafened later in life, and those who are
profoundly deaf.
``(b) Composition.--
``(1) In general.--The Commission shall be composed of 13
members appointed by the Secretary from recommendations made by
the National Association of the Deaf, the American Society for
Deaf Children, the Alexander Graham Bell Association, the
President of Gallaudet, the Vice President of the National
Technical Institute for the Deaf, State Schools for the Deaf,
projects to train teachers of the deaf funded under section
673(b) of the Individuals with Disabilities Education Act,
parent training and information centers funded under section
682 of such Act, the Regional Centers on Postsecondary
Education for Individuals who are Deaf funded under section 672
of such Act, Self-Help for Hard of Hearing People, and the
Cothe Council on Education of the Deaf.
``(2) Qualifications.--
``(A) In general.--Members of the Commission shall
be appointed from among individuals who have broad
experience and expertise in deafness, program
evaluation, education, rehabilitation, and job training
generally, which expertise and experience shall be
directly relevant to the issues to be addressed by the
Commission.
``(B) Deaf individuals.--At least \1/3\ of members
of the Commission shall be individuals who are deaf.
``(C) Chairperson.--The chairperson of the
Commission shall be elected by a simple majority of the
Commission.
``(D) Assistant secretary.--One member of the
Commission shall be the Assistant Secretary for Special
Education and Rehabilitative Services.
``(3) Date.--Members of the Commission shall be appointed
not later than 90 days after the date of enactment of the
Education of the Deaf Amendments of 1998.
``SEC. 302. DUTIES, REPORT, AND DURATION OF THE COMMISSION.
``(a) Identification of Factors.--The Commission shall identify,
with respect to individuals who are deaf, factors that pose barriers to
or factors that facilitate--
``(1) educational performance and progress of students who
are deaf in high school;
``(2) educational performance and progress of students who
are deaf in postsecondary education;
``(3) career exploration and selection;
``(4) job performance and satisfaction in initial
postsecondary employment; and
``(5) career advancement and satisfaction.
``(b) Report.--The Commission shall report to the President and
Congress such interim reports that the Commission deems appropriate,
and not later than 18 months after the date of enactment of the
Education of the Deaf Amendments of 1998, a final report containing the
findings of the Commission with respect to the factors identified under
subsection (a). The final report shall include recommendations,
including legislative proposals, that the Commission deems advisable.
``(c) Termination.--The Commission shall terminate 90 days after
the date on which the Commission submits the Commission's final report
described in subsection (b).
``SEC. 303. ADMINISTRATIVE PROVISIONS.
``(a) Personnel.--
``(1) In general.--The Commission may appoint such
personnel, including a staff director, as the Commission deems
necessary without regard to the provisions of title 5, United
States Code, except that the rate pay for any employee of the
Commission may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of title 5, United States
Code.
``(2) Procurement of temporary and intermittent services.--
The Chairperson of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay prescribed for
level V of the Executive Schedule under section 5316 of such
title.
``(b) Hearings; Quorum.--
``(1) Hearings.--The Commission or, with the authorization
of the Commission, any committee of the Commission, may, for
the purpose of carrying out the provisions of this title, hold
such hearings, sit, and act at such times and such places in
the United States as the Commission or such committee may deem
advisable.
``(2) Quorum.--Seven members of the Commission shall
constitute a quorum, but 2 or more members may conduct
hearings.
``(3) Hearings and public input.--In conducting hearings
and acquiring public input under this title, the Commission may
use various telecommunications media, including
teleconferencing, video-conferencing, the Internet, and other
media.
``(c) Consultation; Information and Statistics; Agency
Cooperation.--
``(1) In general.--In carrying out the Commission's duties
under this title and to the extent not prohibited by Federal
law, the Commission is authorized to secure consultation,
information, statistics, and cooperation from Federal agencies,
entities funded by the Federal Government, and other entities
the Commission deems advisable.
``(2) Special rule.--The Commission is authorized to use,
with their consent, the services, personnel, information, and
facilities of other Federal, State, local, and private agencies
with or without reimbursement.
``SEC. 304. COMPENSATION OF MEMBERS.
``(a) United States Officer and Employee Members.--Members of the
Commission who are officers or full-time employees of the United States
shall serve without compensation in addition to that received for their
services as officers or employees of the United States; but may be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Commission.
``(b) Public Members.--Members of the Commission who are not
officers or full-time employees of the United States shall receive
compensation at a rate that does not exceed the daily rate payable for
level V of the Executive Schedule under section 5316 of title 5, United
States Code, for each day (including travel time) during which such
members are engaged in the actual performance of the duties of the
Commission. In addition, such members may be allowed travel expenses,
including per diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter 57 of title 5,
United States Code, while away from their homes or regular places of
business in the performance of services for the Commission.
``SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this title
such sums as may be necessary for each of the fiscal years 1999 and
2000.''.
PART G--REPEALS
SEC. 781. REPEALS.
(a) Higher Education Act of 1965.--The following provisions of the
Act (20 U.S.C. 1001 et seq.) are repealed:
(1) The heading for, sections 701 and 702 of, and parts A,
C, D, and E of, title VII (20 U.S.C. 1132a, 1132a-1, 1132b et
seq., 1132d et seq., 1132f et seq., and 1132i et seq.).
(2) Title VIII (20 U.S.C. 1133 et seq.).
(3) The heading for, section 901 of, and parts A, B, E, F,
and G of, title IX (20 U.S.C. 1134, 1134a et seq., 1134d et
seq., 1134r et seq., 20 U.S.C. 1134s et seq., and 1134u et
seq.).
(4) The heading for, subpart 2 of part B of, and parts C, D
and E of, title X (20 U.S.C. 1135c et seq., 1135e et seq.,
1135f, and 1135g et seq.).
(5) The heading for, and part B of, title XI (20 U.S.C.
1137 et seq.).
(b) Higher Education Amendments of 1992.--The following provisions
of the Higher Education Amendments of 1992 (Public Law 102-325; 106
Stat 448) are repealed:
(1) Parts E, F, and G of title XIII of the Higher Education
Amendments of 1992 (25 U.S.C. 3332 et seq., 3351 et seq., 3371)
are repealed.
(2) Title XIV.
(3) Title XV.
PART H--MISCELLANEOUS
SEC. 791. YEAR 2000 COMPUTER PROBLEM.
(a) Sense of Congress.--With the year 2000 fast approaching, it is
the sense of Congress that the Department of Education should--
(1) assess immediately the extent of the risk to the
operations of the student financial aid system posed by the
year 2000 computer problem;
(2) give the highest priority to correcting all 2-digit
date-related problems in the Department's computer systems to
ensure that those systems continue to operate effectively in
the year 2000 and beyond; and
(3) develop contingency plans, with respect to the year
2000 computer problem, for those computer systems that the
Department is unable to correct in time.
(b) Report Required.--Not later than March 1, 1999, the Secretary
of Education shall provide a report to the Committee on Labor and Human
Resources of the Senate and the Committee on Education and the
Workforce of the House of Representatives describing the compliance
status of all mission critical systems at the Department, and
contingency plans for those computer systems in the Department that the
Department will be unable to correct in time, with respect to the year
2000 computer problem.