[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 12 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                 H. R. 12

 To make changes to the Higher Education Act of 1965 incorporating the 
       results of the FED UP Initiative, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2003

  Mr. McKeon (for himself, Mr. Boehner, Mr. Isakson, Mr. Petri, Mrs. 
McCarthy of New York, Mr. Ballenger, Mr. Souder, Mr. Kind, Mr. Tiberi, 
Mr. Keller, Mr. Wu, Mr. Osborne, Mr. Wilson of South Carolina, and Mr. 
    Boyd) introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To make changes to the Higher Education Act of 1965 incorporating the 
       results of the FED UP Initiative, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fed Up Higher 
Education Technical Amendments Act of 2003''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Reference; effective date; implementation.
                     TITLE I--TECHNICAL AMENDMENTS

Sec. 101. Technical amendments.
Sec. 102. Clerical amendments.
Sec. 103. Study of teacher preparation.
                   TITLE II--STUDENT LOAN FORGIVENESS

Sec. 201. Cancellation of student loan indebtedness for spouses, 
                            surviving joint debtors, and parents.
  TITLE III--OPPORTUNITIES FOR HIGHER EDUCATION VIA TELECOMMUNICATIONS

Sec. 301. Exception to 50 percent correspondence course limitations.
Sec. 302. Evaluation and report.

SEC. 2. REFERENCE; EFFECTIVE DATE; IMPLEMENTATION.

    (a) Reference.--Except as otherwise expressly provided in this Act, 
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.).
    (b) Effective Date.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect on the date of enactment 
of this Act.
    (c) Implementation.--Sections 482(c) and 492 of the Higher 
Education Act of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to the 
regulations implementing the amendments made by this Act.

                     TITLE I--TECHNICAL AMENDMENTS

SEC. 101. TECHNICAL AMENDMENTS.

    (a) Amendments to Title I.--
            (1) Section 101(a)(1) (20 U.S.C. 1001(a)(1)) is amended by 
        inserting before the semicolon at the end the following: ``, or 
        students who meet the requirements of section 484(d)(3)''.
            (2)(A) Section 102(a)(2)(A) (20 U.S.C. 1002(a)(2)(A)) is 
        amended to read as follows:
                    ``(A) In general.--For the purpose of qualifying as 
                an institution under paragraph (1)(C), the Secretary 
                shall establish criteria by regulation for the approval 
                of institutions outside the United States and for the 
                determination that such institutions are comparable to 
                an institution of higher education as defined in 
                section 101 (except that a graduate medical school, or 
                a veterinary school, located outside the United States 
                shall not be required to meet the requirements of 
                section 101(a)(4)). Such criteria shall include a 
                requirement that a student attending such school 
                outside the United States is ineligible for loans made, 
                insured, or guaranteed under part B of title IV 
                unless--
                            ``(i) in the case of a graduate medical 
                        school located outside the United States--
                                    ``(I)(aa) at least 60 percent of 
                                those enrolled in, and at least 60 
                                percent of the graduates of, the 
                                graduate medical school outside the 
                                United States were not persons 
                                described in section 484(a)(5) in the 
                                year preceding the year for which a 
                                student is seeking a loan under part B 
                                of title IV; and
                                    ``(bb) at least 60 percent of the 
                                individuals who were students or 
                                graduates of the graduate medical 
                                school outside the United States or 
                                Canada (both nationals of the United 
                                States and others) taking the 
                                examinations administered by the 
                                Educational Commission for Foreign 
                                Medical Graduates received a passing 
                                score in the year preceding the year 
                                for which a student is seeking a loan 
                                under part B of title IV; or
                                    ``(II) the institution has a 
                                clinical training program that was 
                                approved by a State as of January 1, 
                                1992; or
                            ``(ii) in the case of a veterinary school 
                        located outside the United States that does not 
                        meet the requirements of section 101(a)(4), the 
                        institution's students complete their clinical 
                        training at an approved veterinary school 
                        located in the United States.''.
            (B) The amendment made by subparagraph (A) shall be 
        effective as if enacted on October 7, 1998.
            (3) Section 102(a)(3)(A) (20 U.S.C. 1002(a)(3)(A)) is 
        amended by striking ``section 521(4)(C) of the Carl D. Perkins 
        Vocational and Applied Technology Education Act'' and inserting 
        ``section 3(3)(C) of the Carl D. Perkins Vocational and 
        Technical Education Act of 1998''.
            (4) Paragraph (7) of section 103 (20 U.S.C. 1003) is 
        amended to read as follows:
            ``(7) New borrower.--The term `new borrower' when used with 
        respect to any date for any loan under any provision of--
                    ``(A) part B or part D of title IV means an 
                individual who on that date has no outstanding balance 
                of principal or interest owing on any loan made, 
                insured, or guaranteed under either such part; and
                    ``(B) part E of title IV means an individual who on 
                that date has no outstanding balance of principal or 
                interest owing on any loan made under such part.''.
            (5) Section 131 (20 U.S.C. 1015) is amended--
                    (A) in subsection (a)(3)(A)(iii)--
                            (i) by striking ``an undergraduate'' and 
                        inserting ``a full-time undergraduate''; and
                            (ii) in subclause (I), by striking 
                        ``section 428(a)(2)(C)(i)'' and inserting 
                        ``section 428(a)(2)(C)(ii)'';
                    (B) in subsection (b), by striking ``the costs for 
                typical'' and inserting ``the prices for, and financial 
                aid provided to, typical'';
                    (C) in subsection (c)(2)(B), by striking ``costs'' 
                and inserting ``prices''; and
                    (D) in subsection (d)(1), by striking ``3 years'' 
                and inserting ``4 years''.
            (6) Section 141 (20 U.S.C. 1018) is amended--
                    (A) in subsection (a)(2)(B)--
                            (i) by inserting ``unit'' after ``to reduce 
                        the''; and
                            (ii) by inserting ``and, to the extent 
                        practicable, the total costs of administering 
                        those programs'' after ``those programs'';
                    (B) in subsection (c)--
                            (i) in paragraph (1)(A), by striking ``Each 
                        year'' and inserting ``Each fiscal year'';
                            (ii) in paragraph (1)(B), by inserting 
                        ``secondary markets, guaranty agencies,'' after 
                        ``lenders,''; and
                            (iii) in paragraph (2)(B), by striking 
                        ``Chief Financial Officer Act of 1990 and'' and 
                        inserting ``Chief Financial Officers Act of 
                        1990,'' and by inserting before the period at 
                        the end the following: ``, and other relevant 
                        statutes'';
                    (C) in subsection (f)(3)(A), by striking 
                ``paragraph (1)(A)'' and inserting ``paragraph (1)''; 
                and
                    (D) in subsection (g)(3), by adding at the end the 
                following new sentence: ``The names and compensation 
                for those individuals shall be included in the annual 
                report under subsection (c)(2).''.
    (b) Amendments to Title II.--Section 207(f)(2) (20 U.S.C. 
1027(f)(2)) is amended by inserting ``, including by electronic 
means,'' after ``sent''.
    (c) Amendments to Title III.--
            (1) Section 316(b)(3) (20 U.S.C. 1059c(b)(3)) is amended by 
        striking ``give'' and inserting ``given''.
            (2) Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) is amended, 
        in the matter preceding subparagraph (A), by inserting a colon 
        after ``the following''.
            (3) Section 342(5)(C) (20 U.S.C. 1066a(5)(C)) is amended--
                    (A) by inserting a comma after ``equipment'' the 
                first place it appears; and
                    (B) by striking ``technology,,'' and inserting 
                ``technology,''.
            (4) Section 343(e) (20 U.S.C. 1066b(e)) is amended by 
        inserting after the subsection designation the following: 
        ``Sale of Qualified 
        Bonds.--''.
            (5) Section 351(a) (20 U.S.C. 1067a(a)) is amended by 
        striking ``of 1979''.
            (6) Section 1024 (20 U.S.C. 1135b-3), as transferred by 
        section 301(a)(5) of the Higher Education Amendments of 1998 
        (Public Law 105-244; 112 Stat. 1636), is repealed.
    (d) Amendments to Part A of Title IV.--
            (1) Section 402A (20 U.S.C. 1070a-11) is amended--
                    (A) in subsection (e)--
                            (i) in paragraph (1), by striking 
                        ``(g)(2)'' and inserting ``(g)(4)''; and
                            (ii) in paragraph (2), by striking 
                        ``(g)(2)'' and inserting ``(g)(4)''; and
                    (B) in subsection (g)--
                            (i) by redesignating paragraphs (1) through 
                        (4) as paragraphs (3) through (6), 
                        respectively; and
                            (ii) by inserting before paragraph (3), as 
                        redesignated, the following:
            ``(1) Different campus.--The term `different campus' means 
        an institutional site that--
                    ``(A) is geographically apart from the main campus 
                of the institution;
                    ``(B) is permanent in nature; and
                    ``(C) offers courses in educational programs 
                leading to a degree, certificate, or other recognized 
                educational credential.
            ``(2) Different population.--The term `different 
        population' means a group of individuals, with respect to whom 
        an entity seeks to serve through an application for funding 
        under this chapter, that is--
                    ``(A) separate and distinct from any other 
                population that the entity seeks to serve through an 
                application for funding under this chapter; or
                    ``(B) while sharing some of the same 
                characteristics as another population that the entity 
                seeks to serve through an application for funding under 
                this chapter, has distinct needs for specialized 
                services.''.
            (2)(A) Section 404A(b) (20 U.S.C. 1070a-21(b)) is amended 
        by adding at the end thereof the following new paragraph:
            ``(3) Duration.--An award made by the Secretary under this 
        chapter to an eligible entity described in paragraph (1) or (2) 
        of subsection (c) shall be for the period of 6 years.''.
            (B) The amendment made by subparagraph (A) shall apply to 
        awards made either before or after the date of enactment of 
        this Act.
            (3) Section 407E (20 U.S.C. 1070a-35) is redesignated as 
        section 406E.
            (4) Section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)) is 
        amended by inserting ``and'' after the semicolon at the end 
        thereof.
            (5) Section 419D(d) (20 U.S.C. 1070d-34(d)) is amended by 
        striking ``Public Law 95-1134'' and inserting ``Public Law 95-
        134''.
    (e) Amendments to Part B of Title IV.--
            (1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is 
        amended--
                    (A) by striking ``and'' at the end of subclause 
                (II) of clause (i); and
                    (B) by moving the margin of clause (iii) two ems to 
                the left.
            (2) Section 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is 
        amended by inserting before the semicolon at the end the 
        following: ``and 100 percent of the unpaid principal amount of 
        exempt claims as defined in subsection (c)(1)(G)''.
            (3) Section 428(c) (20 U.S.C. 1078(c)) is amended--
                    (A) in paragraph (1)--
                            (i) by redesignating subparagraph (G) as 
                        subparagraph (H), and moving such subparagraph 
                        2 em spaces to the left; and
                            (ii) by inserting after subparagraph (F) 
                        the following new subparagraph:
            ``(G)(i) Notwithstanding any other provisions of this 
        section, in the case of exempt claims, the Secretary shall 
        apply the provisions of--
                    ``(I) the fourth sentence of subparagraph (A) by 
                substituting `100 percent' for `95 percent';
                    ``(II) subparagraph (B)(i) by substituting `100 
                percent' for `85 percent'; and
                    ``(III) subparagraph (B)(ii) by substituting `100 
                percent' for `75 percent'.
            ``(ii) For purposes of clause (i) of this subparagraph, the 
        term `exempt claims' means claims with respect to loans for 
        which it is determined that the borrower (or the student on 
        whose behalf a parent has borrowed), without the lender's or 
        the institution's knowledge at the time the loan was made, 
        provided false or erroneous information or took actions that 
        caused the borrower or the student to be ineligible for all or 
        a portion of the loan or for interest benefits thereon.''.
                    (B) in paragraph (3)(A)(i), by striking ``in 
                writing''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(10) Documentation of forbearance agreements.--For the 
        purposes of paragraph (3), the terms of forbearance agreed to 
        by the parties shall be documented by confirming the agreement 
        of the borrower by notice to the borrower from the lender, and 
        by recording the terms in the borrower's file.''.
            (4) Section 428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is 
        amended by adding at the end the following new clause:
            ``(ii) Loans made under this section shall, to the extent 
        used to discharge loans made under this title, be counted 
        against the applicable limitations on aggregate indebtedness 
        contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, 
        and 464(a)(2)(B).''.
            (5) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraph (7) as paragraph 
                (6).
            (6) Section 428I(g) (20 U.S.C. 1078-9(g)) is amended by 
        striking ``Code,'' and inserting ``Code''.
            (7) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is 
        amended--
                    (A) in clause (i), by inserting ``and'' after the 
                semicolon at the end; and
                    (B) in clause (ii), by striking ``; and'' and 
                inserting a period.
            (8) Section 439(d) (20 U.S.C. 1087-2(d)) is amended--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
    (f) Amendment to Part D of Title IV.--Section 457(a)(1) (20 U.S.C. 
1087g(a)(1)) is amended by striking ``431'' and inserting ``437''.
    (g) Amendments to Part E of Title IV.--
            (1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
        1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly'' 
        after ``consecutive''.
            (2) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is 
        amended by redesignating subclauses (I) and (II) as clauses (i) 
        and (ii), respectively.
            (3) Section 464(h)(1)(A) is amended--
                    (A) by inserting ``, if practicable (as determined 
                in accordance with regulations of the Secretary),'' 
                after ``the loan shall''; and
                    (B) by inserting ``, if such loan is considered 
                rehabilitated,'' after ``the Secretary) shall''.
            (4) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended--
                    (A) in subparagraph (A), by striking ``section 
                111(c)'' and inserting ``section 1113(a)(5)''; and
                    (B) in subparagraph (C), by striking ``With 
                Disabilities'' and inserting ``with Disabilities''.
            (5) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by 
        striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A), 
        (4)(B), or (5)''.
            (6) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
                    (A) by striking ``sections 602(a)(1) and 672(1)'' 
                and inserting ``sections 602(3) and 632(5)'';
                    (B) by striking ``qualified professional provider 
                of early intervention services'' and inserting ``early 
                intervention services''; and
                    (C) by striking ``section 672(2)'' and inserting 
                ``section 632(4)''.
    (h) Amendments to Part F of Title IV.--
            (1) Section 478(h) (20 U.S.C. 1087rr(h)) is amended--
                    (A) by striking ``476(b)(4)(B),''; and
                    (B) by striking ``meals away from home, apparel and 
                upkeep, transportation, and housekeeping services'' and 
                inserting ``food away from home, apparel, 
                transportation, and household furnishings and 
                operations''.
            (2) Section 479A(a) (20 U.S.C. 1087tt(a)) is amended--
                    (A) by striking ``(a) In General.--'' and inserting 
                the following:
    ``(a) Authority To Make Adjustments.--
            ``(1) Adjustments for special circumstances.--'';
                    (B) by inserting before ``Special circumstances 
                may'' the following:
            ``(2) Special circumstances defined.--'';
                    (C) by inserting ``a student's status as a ward of 
                the court at any time prior to attaining 18 years of 
                age,'' after ``487,''.
                    (D) by inserting before ``Adequate documentation'' 
                the following:
            ``(3) Documentation and use of supplementary information.--
        ''; and
                    (E) by inserting before ``No student'' the 
                following:
            ``(4) Fees for supplementary information prohibited.--''.
    (i) Amendments to Parts G and H of Title IV.--
            (1) Section 483(d) (20 U.S.C. 1090(d)) is amended by 
        striking ``that is authorized under section 685(d)(2)(C)'' and 
        inserting ``, or another appropriate provider of technical 
        assistance and information on postsecondary educational 
        services, that is supported under section 685''.
            (2) Section 484 (20 U.S.C. 1091) is amended--
                    (A) in subsection (a)(4), by striking 
                ``certification,,'' and inserting ``certification,'';
                    (B) in subsection (b)(2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``section 428A'' and inserting 
                        ``section 428H'';
                            (ii) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end thereof;
                            (iii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking subparagraph (C); and
                    (C) in subsection (l)(1)(B)(i), by striking 
                ``section 521(4)(C) of the Carl D. Perkins Vocational 
                and Applied Technology Education Act'' and inserting 
                ``section 3(3)(C) of the Carl D. Perkins Vocational and 
                Technical Education Act of 1998''.
            (3)(A) Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is amended 
        by striking everything preceding the table and inserting the 
        following:
            ``(1) In general.--A student who is convicted of any 
        offense under any Federal or State law involving the possession 
        or sale of a controlled substance for conduct that occurred 
        during a period of enrollment for which the student was 
        receiving any grant, loan, or work assistance under this title 
        shall not be eligible to receive such grant, loan, or work 
        assistance from the date of that conviction for the period of 
        time specified in the following table:''.
            (B) The amendment made by subparagraph (A) shall be 
        effective on July 1, 2003.
            (4)(A) Section 484B (20 U.S.C. 1091b) is amended--
                    (i) in subsection (a)(1), by inserting ``subpart 4 
                of part A or'' after ``received under'';
                    (ii) in subsection (a)(3)(B)(ii), by inserting 
                ``(as determined in accordance with subsection (d))'' 
                after ``student has completed'';
                    (iii) in subsection (b)(2), by amending 
                subparagraph (C) to read as follows:
                    ``(C) Grant overpayment requirements.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (B), a student shall only 
                        be required to return grant assistance in the 
                        amount (if any) by which--
                                    ``(I) the amount to be returned by 
                                the student (as determined under 
                                subparagraphs (A) and (B)), exceeds
                                    ``(II) 50 percent of the total 
                                grant assistance received by the 
                                student under this title for the 
                                payment period or period of enrollment.
                            ``(ii) Minimum.--A student shall not be 
                        required to return amounts of $50 or less.''; 
                        and
                    (iv) in subsection (d), by striking 
                ``(a)(3)(B)(i)'' and inserting ``(a)(3)(B)''.
            (B) The amendments made by subparagraph (A) shall be 
        effective for academic years beginning on or after July 1, 
        2003, except that, in the case of an institution of higher 
        education that chooses to implement such amendments prior to 
        that date, such amendments shall be effective on the date of 
        such institution's implementation.
            (5) Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended--
                    (A) in the second sentence, by striking ``mailings, 
                and'' and inserting ``mailings, or'';
                    (B) by striking ``and'' at the end of subparagraph 
                (N);
                    (C) by striking the period at the end of 
                subparagraph (O) and inserting ``; and''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(P) the penalties contained in subsection 484(r) 
                regarding suspension of eligibility for drug related 
                offenses.''.
            (6) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
                    (A) by redesignating paragraphs (6) through (10) as 
                paragraphs (7) through (11), respectively;
                    (B) by redesignating the paragraph (5) (as added by 
                section 2008 of Public Law 101-239) as paragraph (6); 
                and
                    (C) in paragraph (5) (as added by section 204(3) of 
                the National Community Service Act of 1990 (Public Law 
                101-610))--
                            (i) by striking ``(22 U.S.C. 2501 et 
                        seq.)),'' and inserting ``(22 U.S.C. 2501 et 
                        seq.),''; and
                            (ii) by striking the period at the end 
                        thereof and inserting a semicolon.
            (7) Section 487(a) (20 U.S.C. 1094(a)) is amended--
                    (A) in paragraph (22), by striking ``refund 
                policy'' and inserting ``policy on the return of title 
                IV funds''; and
                    (B) in paragraph (23)--
                            (i) by moving subparagraph (C) two em 
                        spaces to the left; and
                            (ii) by adding after such subparagraph the 
                        following new subparagraph:
            ``(D) An institution shall be considered in compliance with 
        the requirements of subparagraph (A) for any student to whom 
        the institution electronically transmits a message containing a 
        voter registration form acceptable for use in the State in 
        which the institution is located, or an Internet address where 
        such a form can be downloaded, provided such information is in 
        an electronic message devoted to voter registration.''.
            (8) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding 
        at the end the following new paragraph:
    ``(3) The appointment of members under subparagraphs (A) and (B) of 
paragraph (1) shall be effective upon publication of the appointment in 
the Congressional Record.''.
            (9) Section 493A (20 U.S.C. 1098c) is repealed.
            (10) Section 498 (20 U.S.C. 1099c) is amended--
                    (A) in subsection (c)(2), by striking ``for 
                profit,'' and inserting ``for-profit,'';
                    (B) in subsection (d)(1)(B), by inserting ``and'' 
                after the semicolon at the end thereof.
    (j) Amendments to Title V.--Section 504(a) (20 U.S.C. 1101c(a)) is 
amended--
            (1) by striking the following:
    ``(a) Award Period.--
            ``(1) In general.--The Secretary''
        and inserting the following:
    ``(a) Award Period.--The Secretary''; and
            (2) by striking paragraph (2).
    (k) Amendments to Title VII.--
            (1) Section 714(c) (20 U.S.C. 1135c(c)) is amended--
                    (A) by striking ``section 716(a)'' and inserting 
                ``section 715(a)''; and
                    (B) by striking ``section 714(b)(2)'' and inserting 
                ``section 713(b)(2)''.
            (2) Section 721(c) (20 U.S.C. 1136(c)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (4);
                    (B) by striking the period at the end of paragraph 
                (5) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(6) to assist such students with the development of 
        analytical skills and study methods to enhance their success in 
        entry into and completion of law school; and
            ``(7) to award Thurgood Marshall Fellowships to eligible 
        law school students--
                    ``(A) who participated in summer institutes 
                authorized by subsection (d) and who are enrolled in an 
                accredited law school; or
                    ``(B) who are eligible law school students who have 
                successfully completed a comparable summer institute 
                program certified by the Council on Legal Educational 
                Opportunity.''.
    (l) Amendment to Higher Education Amendments of 1998.--Section 
422(d) of the Higher Education Amendments of 1998 (Public Law 105-244; 
112 Stat. 1696) is amended by striking ``, and ending on September 30, 
2002''.

SEC. 102. CLERICAL AMENDMENTS.

    (a) Definition.--Section 103 (20 U.S.C. 1003) is amended--
            (1) by redesignating paragraphs (1) through (16) as 
        paragraphs (2) through (17), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
            ``(1) Authorizing committees.--The term `authorizing 
        committees' means the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        the Workforce of the House of Representatives.''.
    (b) Committees.--
            (1) The following provisions are each amended by striking 
        ``Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees'':
                    (A) Section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)).
                    (B) Section 131(c)(4) (20 U.S.C. 1015(c)(4)).
                    (C) Section 206(d) (20 U.S.C. 1026(d)).
                    (D) Section 207(c)(1) (20 U.S.C. 1027(c)(1)).
                    (E) Section 428(g) (20 U.S.C. 1078(g)).
                    (F) Section 428A(a)(4) (20 U.S.C. 1078-1(a)(4)).
                    (G) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).
                    (H) Section 428A(c)(3) (20 U.S.C. 1078-1(c)(3)).
                    (I) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).
                    (J) Section 455(b)(8)(B) (20 U.S.C. 
                1087e(b)(8)(B)).
                    (K) Section 483(c) (20 U.S.C. 1090(c)).
                    (L) Section 486(e) (20 U.S.C. 1093(e)).
                    (M) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
                    (N) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
                    (O) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
                    (P) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
                    (Q) Section 487A(b)(3)(B) (20 U.S.C. 
                1094a(b)(3)(B)).
                    (R) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).
                    (S) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).
            (2) The following provisions are each amended by striking 
        ``Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Labor and Human Resources 
        of the Senate'' and inserting ``authorizing committees''.
                    (A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
                    (B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
                    (C) The last sentence of section 432(n) (20 U.S.C. 
                1082(n)).
                    (D) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
                    (E) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
            (3) Section 206(a) (20 U.S.C. 1026(a)) is amended by 
        striking ``, the Committee on Labor and Human Resources of the 
        Senate, and the Committee on Education and the Workforce of the 
        House of Representatives'' and inserting ``and the authorizing 
        committees''.
            (4) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by 
        striking ``Committee on Appropriations and the Committee on 
        Labor and Human Resources of the Senate and the Committee on 
        Appropriations and the Committee on Education and the Workforce 
        of the House of Representatives'' and inserting ``Committees on 
        Appropriations of the Senate and House of Representatives and 
        the authorizing committees''.
            (5) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is 
        amended by striking ``House Committee on Education and the 
        Workforce and the Senate Committee on Labor and Human 
        Resources'' and inserting ``authorizing committees''.
            (6) Section 428I(h) (20 U.S.C. 1078-9(h)) is amended by 
        striking ``Chairman of the Senate Labor and Human Resources 
        Committee and the House Committee on Education and Labor'' and 
        inserting ``chairpersons of the authorizing committees''.
            (7) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is 
        amended by striking ``Committee on Education and the Workforce 
        of the House of Representatives or the Committee on Labor and 
        Human Resources of the Senate'' and inserting ``either of the 
        authorizing committees''.
            (8) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-
        2(d)(1)(E)(iii)) is amended by striking ``Chairman and the 
        Ranking Member on the Committee on Labor and Human Resources of 
        the Senate and the Chairman and the Ranking Member of the 
        Committee on Education and Labor of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (9) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 
        1087-2(r)) are each amended by striking ``Chairman and ranking 
        minority member of the Committee on Labor and Human Resources 
        of the Senate, the Chairman and ranking minority member of the 
        Committee on Education and Labor of the House of 
        Representatives,'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (10) Paragraphs (5)(B) and (10) of section 439(r) (20 
        U.S.C. 1087-2(r)) are each amended by striking ``Chairman and 
        ranking minority member of the Senate Committee on Labor and 
        Human Resources and to the Chairman and ranking minority member 
        of the House Committee on Education and Labor'' and inserting 
        ``chairpersons and ranking minority members of the authorizing 
        committees''.
            (11) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is 
        amended by striking ``Chairman and ranking minority member of 
        the Committee on  Labor and Human Resources of the Senate and 
to the Chairman and ranking minority member of the Committee on 
Education and Labor of the House of Representatives'' and inserting 
``chairpersons and ranking minority members of the authorizing 
committees''.
            (12) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is 
        amended by striking ``Chairman and Ranking Member of the 
        Committee on Labor and Human Resources of the Senate and the 
        Chairman and Ranking Member of the Committee on Economic and 
        Educational Opportunities of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (13) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is 
        amended by striking ``Chairman and Ranking Minority Member of 
        the Committee on Labor and Human Resources of the Senate and 
        Chairman and Ranking Minority Member of the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (14) Section 482(d) (20 U.S.C. 1089(d)) is amended by 
        striking ``Committee on Labor and Human Resources of the Senate 
        and the Committee on Education and Labor of the House of 
        Representatives'' and inserting ``authorizing committees''.
    (c) Additional Clerical Amendments.--
            (1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 
        1075(a)(2)(A)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is 
        amended by striking ``428A or''.
            (3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 
        1078(b)(1)(B)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is 
        amended by striking ``sections 428A and 428B'' and inserting 
        ``section 428B or 428H''.
            (5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is 
        amended by striking ``428A, 428B,'' and inserting ``428B''.
            (6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended 
        by striking ``428A'' and inserting ``428H''.
            (7) The heading for section 433(e) (20 U.S.C. 1083(e)) is 
        amended by striking ``SLS Loans and''.
            (8) Section 433(e) (20 U.S.C. 1083(e)) is amended by 
        striking ``428A, 428B,'' and inserting ``428B''.
            (9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--
                    (A) by inserting ``or'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is 
        amended by striking ``428A(d), 428B(d), 428C,'' and inserting 
        ``428B(d), 428C, 428H,''.
            (11) Section 435(m) (20 U.S.C. 1085(m)) is amended--
                    (A) in paragraph (1)(A), by striking ``, 428A,''; 
                and
                    (B) in paragraph (2)(D), by striking ``428A'' each 
                place it appears and inserting ``428H''.
            (12) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is 
        amended--
                    (A) by striking ``SLS and plus'' in the heading and 
                inserting ``Plus''; and
                    (B) by striking ``428A or''.
            (13) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended 
        by striking ``428A or''.
            (14) Nothing in the amendments made by this subsection 
        shall be construed to alter the terms, conditions, and benefits 
        applicable to Federal supplemental loans for students (``SLS 
        loans'') under section 428A as in effect prior to July 1, 1994 
        (20 U.S.C. 1078-1).

SEC. 103. STUDY OF TEACHER PREPARATION.

    Within six months after the date of enactment of this Act, the 
Comptroller General shall conduct a study of and submit to Congress a 
report on--
            (1) which States and which institutions of higher education 
        require passage on State teacher licensure exams in order for 
        candidates to be admitted to a teacher preparation program or 
        to declare an education major;
            (2) which States and which institutions of higher education 
        award diplomas, degrees, or other certificates to students in 
        any subject area, but subsequently only consider them to have 
        successfully completed a teacher preparation or other education 
        program if they pass one or more State licensure exams;
            (3) which States and which institutions of higher education 
        award diplomas, degrees, or other certificates to students in 
        education or teaching, but subsequently only consider them to 
        have successfully completed a teacher preparation or education 
        program if they pass one or more State licensure exams;
            (4) the extent to which States and institutions of higher 
        education, through means other than (1), (2), or (3), are, for 
        the purposes of section 207(f)(1)(A) of the Higher Education 
        Act of 1965 (20 U.S.C. 1027(f)(1)(A)), treating as completing 
        their teacher preparation programs only those students who pass 
        State teacher licensure or certification assessments;
            (5) the extent to which the practices described in 
        paragraphs (1) through (4) may mislead or incompletely inform 
        students and policymakers concerning the quality of such 
        teacher preparation programs; and
            (6) what assistance, if any, the States or institutions 
        described in paragraphs (1) through (4) give to enrolled 
        students and graduates who take but do not pass one or more 
        teacher licensing exams.

                   TITLE II--STUDENT LOAN FORGIVENESS

SEC. 201. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES, 
              SURVIVING JOINT DEBTORS, AND PARENTS.

    (a) Definitions.--For purposes of this section:
            (1) Eligible public servant.--The term ``eligible public 
        servant'' means an individual who--
                    (A) served as a police officer, firefighter, other 
                safety or rescue personnel, or as a member of the Armed 
                Forces; and
                    (B) died (or dies) or became (or becomes) 
                permanently and totally disabled due to injuries 
                suffered in the terrorist attack on September 11, 2001;
        as determined in accordance with regulations of the Secretary.
            (2) Eligible victim.--The term ``eligible victim'' means an 
        individual who died (or dies) or became (or becomes) 
        permanently and totally disabled due to injuries suffered in 
        the terrorist attack on September 11, 2001, as determined in 
        accordance with regulations of the Secretary.
            (3) Eligible parent.--The term ``eligible parent'' means 
        the parent of an eligible victim if--
                    (A) the parent owes a Federal student loan that is 
                a consolidation loan that was used to repay a PLUS loan 
                incurred on behalf of such eligible victim; or
                    (B) the parent owes a Federal student loan that is 
                a PLUS loan incurred on behalf of an eligible victim 
                who became (or becomes) permanently and totally 
                disabled due to injuries suffered in the terrorist 
                attack on September 11, 2001.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (5) Federal student loan.--The term ``Federal student 
        loan'' means any loan made, insured, or guaranteed under part 
        B, D, or E of title IV of the Higher Education Act of 1965.
    (b) Relief From Indebtedness.--
            (1) In general.--The Secretary shall provide for the 
        discharge or cancellation of--
                    (A) the Federal student loan indebtedness of the 
                spouse of an eligible public servant, as determined in 
                accordance with regulations of the Secretary, including 
                any consolidation loan that was used jointly by the 
                eligible public servant and his or her spouse to repay 
                the Federal student loans of the spouse and the 
                eligible public servant;
                    (B) the portion incurred on behalf of the eligible 
                victim (other than an eligible public servant), of a 
                Federal student loan that is a consolidation loan that 
                was used jointly by the eligible victim and his or her 
                spouse, as determined in accordance with regulations of 
                the Secretary, to repay the Federal student loans of 
                the eligible victim and his or her spouse;
                    (C) the portion of the consolidation loan 
                indebtedness of an eligible parent that was incurred on 
                behalf of an eligible victim; and
                    (D) the PLUS loan indebtedness of an eligible 
                parent that was incurred on behalf of an eligible 
                victim.
            (2) Method of discharge or cancellation.--A loan required 
        to be discharged or canceled under paragraph (1) shall be 
        discharged or canceled  by the method used under section 
437(a), 455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 
(20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is 
applicable to such loan.
    (c) Facilitation of Claims.--The Secretary shall--
            (1) establish procedures for the filing of applications for 
        discharge or cancellation under this section by regulations 
        that shall be prescribed and published within 90 days after the 
        date of enactment of this Act and without regard to the 
        requirements of section 553 of title 5, United States Code; and
            (2) take such actions as may be necessary to publicize the 
        availability of discharge or cancellation of Federal student 
        loan indebtedness under this section.
    (d) Availability of Funds for Payments.--Funds available for the 
purposes of making payments to lenders in accordance with section 
437(a) for the discharge of indebtedness of deceased or disabled 
individuals shall be available for making payments under section 437(a) 
to lenders of loans as required by this section.
    (e) Applicable to Outstanding Debt.--The provisions of this section 
shall be applied to discharge or cancel only Federal student loans 
(including consolidation loans) on which amounts were owed on September 
11, 2001. Nothing in this section shall be construed to authorize any 
refunding of any repayment of a loan.

  TITLE III--OPPORTUNITIES FOR HIGHER EDUCATION VIA TELECOMMUNICATIONS

SEC. 301. EXCEPTION TO 50 PERCENT CORRESPONDENCE COURSE LIMITATIONS.

    (a) Definition of Institution of Higher Education for Title IV 
Purposes.--Section 102(a) (20 U.S.C. 1002(a)) is amended by adding at 
the end the following new paragraph:
            ``(7) Exception to limitation based on course of study.--
                    ``(A) Exception.--Courses offered via 
                telecommunications (as defined in section 484(l)(4)) 
                shall not be considered to be correspondence courses 
                for purposes of subparagraph (A) or (B) of paragraph 
                (3) for any institution that--
                            ``(i) is participating in either or both of 
                        the loan programs under part B or D of title IV 
                        on the date of enactment of the Fed Up Higher 
                        Education Technical Amendments Act of 2003;
                            ``(ii) has a cohort default rate (as 
                        determined under section 435(m)) for each of 
                        the 3 most recent fiscal years for which data 
                        are available that is less than 10 percent; and
                            ``(iii)(I) has notified the Secretary, in a 
                        form and manner prescribed by the Secretary 
                        (including such information as the Secretary 
                        may require to meet the requirements of 
                        subclause (II)), of the election by such 
                        institution to qualify as an institution of 
                        higher education by means of the provisions of 
                        this paragraph; and
                            ``(II) the Secretary has not, within 90 
                        days after such notice, and the receipt of any 
                        information required under subclause (i), 
                        notified the institution that the election by 
                        such institution would pose a significant risk 
                        to Federal funds and the integrity of programs 
                        under title IV.
                    ``(B) Loss of eligibility for cohort default 
                rate.--If an institution qualifies for the exception 
                provided by subparagraph (A), but has a cohort default 
                rate for a subsequent fiscal year that equals or 
                exceeds 10 percent, such institution shall cease to be 
                qualified for such exception at the end of the award 
                year in which that cohort default rate was released.''.
    (b) Definition of Eligible Student.--Section 484(l)(1) (20 U.S.C. 
1091(l)(1)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Exception to 50 percent limitation.--
                            ``(i) Exception.--Notwithstanding the 50 
                        percent limitation in subparagraph (A), a 
                        student enrolled in a course of instruction 
                        described in such subparagraph shall not be 
                        considered to be enrolled in correspondence 
                        courses if the student is enrolled in an 
                        institution that--
                                    ``(I) is participating in either or 
                                both of the loan programs under part B 
                                or D of title IV on the date of 
                                enactment of the Fed Up Higher 
                                Education Technical Amendments Act of 
                                2003;
                                    ``(II) has a cohort default rate 
                                (as determined under section 
435(m)) for each of the 3 most recent fiscal years for which data are 
available that is less than 10 percent; and
                                    ``(III)(aa) has notified the 
                                Secretary, in form and manner 
                                prescribed by the Secretary (including 
                                such information as the Secretary may 
                                require to meet the requirements of 
                                subclause (II)), of the election by 
                                such institution to qualify its 
                                students as eligible students by means 
                                of the provisions of this subparagraph; 
                                and
                                    ``(bb) the Secretary has not, 
                                within 90 days after such notice, and 
                                the receipt of any information required 
                                under subclause (I), notified the 
                                institution that the election by such 
                                institution would pose a significant 
                                risk to Federal funds and the integrity 
                                of programs under title IV.
                            ``(ii) Loss of eligibility for cohort 
                        default rate.--If an institution qualifies for 
                        the exception provided by clause (i), but has a 
                        cohort default rate for a subsequent fiscal 
                        year that equals or exceeds 10 percent, such 
                        institution shall cease to be qualified for 
                        such exception at the end of the award year in 
                        which that cohort default rate was released.''.

SEC. 302. EVALUATION AND REPORT.

    (a) Information From Institutions.--
            (1) Institutions covered by requirement.--The requirements 
        of paragraph (2) apply to any institution of higher education 
        that has notified the Secretary of Education of an election to 
        qualify for the exception to limitation based on course of 
        study in section 102(a)(7) of the Higher Education Act of 1965 
        (20 U.S.C. 1002(a)(7)) or the exception to the 50 percent 
        limitation in section 484(l)(1)(C) of such Act (20 U.S.C. 
        1091(l)(1)(C)).
            (2) Requirements.--Any institution of higher education to 
        which this paragraph applies shall comply, on a timely basis, 
        with the Secretary of Education's reasonable requests for 
        information on changes in--
                    (A) the amount or method of instruction offered;
                    (B) the types of programs or courses offered;
                    (C) enrollment by type of program or course;
                    (D) the amount and types of grant, loan, or work 
                assistance provided under title IV of the Higher 
                Education Act of 1965 that is received by students 
                enrolled in programs conducted in nontraditional 
                formats; and
                    (E) outcomes for students enrolled in such courses 
                or programs.
    (b) Report by Secretary Required.--The Secretary of Education shall 
conduct by grant or contract a study of, and by March 31, 2005, submit 
to the Congress, a report on--
            (1) the effect that the amendments made by section 301 of 
        this Act have had on--
                    (A) the ability of institutions of higher education 
                to provide distance learning opportunities to students; 
                and
                    (B) program integrity;
            (2) with respect to distance education or correspondence 
        education courses at institutions of higher education to which 
        the information requirements of subsection (a)(2) apply, 
        changes from year-to-year in--
                    (A) the amount or method of instruction offered and 
                the types of programs or courses offered;
                    (B) the number and type of students enrolled in 
                distance education or correspondence education courses;
                    (C) the amount of student aid provided to such 
                students, in total and as a percentage of the 
                institution's revenue; and
                    (D) outcomes for students enrolled in distance 
                education or correspondence education courses, 
                including graduation rates, job placement rates, and 
                loan delinquencies and defaults; and
            (3) any further improvements that should be made to the 
        provisions amended by section 301 of this Act (and related 
        provisions), in order to accommodate nontraditional educational 
        opportunities in the Federal student assistance programs while 
        ensuring the integrity of those programs.
                                 <all>