[Congressional Record Volume 144, Number 38 (Monday, March 30, 1998)]
[Senate]
[Pages S2767-S2773]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            Higher Education Act Amendments of 1998--Summary


                      TITLE I: GENERAL PROVISIONS

       Current Title 1--Partnerships for Educational Excellence--
     is repealed, as programs authorized under the title have not 
     been funded.
       General Provisions, now included in Title XII, will be 
     transferred to Title I.
       Obsolete/unfunded sections of Title XII are repealed.
       Language is added to require the Secretary to publish the 
     expiration dates of terms of members of the National Advisory 
     Committee on Institutional Quality and Integrity and to 
     solicit nominations for vacancies on the Committee.


                  TITLE II: IMPROVING TEACHER QUALITY

       The teacher education provisions from Title V will be moved 
     to Title II. All unfunded programs are repealed and replaced 
     with a comprehensive program whose purpose is to improve 
     student achievement, to improve the quality of the current 
     and future teaching force by improving the preparation of 
     prospective teachers and enhancing professional development 
     activities, and to hold institutions of higher education 
     accountable for preparing teachers who have necessary 
     teaching skills and are highly competent in the academic 
     content areas in which they plan to teach, including training 
     in the effective use of technology in the classroom. The 
     proposal provides a ``top-down'' and ``bottom-up'' approach 
     for improving teacher quality.
       States will be eligible to compete for Teacher Quality 
     Enhancement Grants that would be used to institute state 
     level reforms to ensure that current and future teachers 
     possess the necessary teaching skills and academic content 
     knowledge in the subject areas in which they are assigned to 
     teach.
       Teacher Training Partnership Grants will be made to local 
     partnerships comprised of academic programs and education 
     programs at institutions of higher education, local education 
     agencies, K-12 schools, state education agencies, Pre-K 
     programs, non-profit groups, businesses and teacher 
     organizations. Partnerships will be eligible to receive a 
     ``one time only'' grant to encourage reform and improvement 
     at the local level.
       The proposal includes strong accountability measures for 
     both Enhancement and Partnership grants. Grant recipients 
     receiving assistance under this title will continue to 
     receive support after the second year of the grant only if 
     they have shown that they are making substantial progress in 
     meeting such goals as improving student achievement, 
     increasing the passage rate of teachers for initial state 
     licensure or certification, and increasing the classes taught 
     in core academic subject areas.


                  TITLE III: INSTITUTIONAL DEVELOPMENT

     Part A--Strengthening Institutions
       Encourage institutions to improve their technological 
     capacity and make effective use of technology.
       Allow institutions to use up to 20% of their awards to 
     establish or expand an endowment fund.
       Require a two-year wait out period between the receipt of 
     consecutive grants.
       Authorize at $135 million for FY 1999 and such sums as may 
     be necessary for each of the 4 succeeding years.
       Section 316--Hispanic serving institutions
       Simplify definition of Hispanic Serving Institution.
       Allow institutions to use up to 20% of their awards to 
     establish or expand an endowment fund.
       Encourage institutions to collaborate with community-based 
     organizations on projects that seek to reduce drop-out rates, 
     improve academic achievement and increase enrollment in 
     Higher Education.
       Repeal the funding trigger which requires that funding for 
     Title III, Part A grants exceed $80 million before any funds 
     may be provided for grants under Section 316.
       Authorize at $45 million for FY 1999 and such sums as may 
     be necessary for each of the 4 succeeding years.
     Part B--Historically Black Colleges and Universities
       Allow institutions to use up to 20% of their awards to 
     establish or expand an endowment fund under the terms and 
     conditions of Part C.
       Authorize at $135 million for FY 1999 and such sums as may 
     be necessary for each of the 4 succeeding years.
       Section 326--Professional or graduate institutions
       Clarify that eligible institutions must match only those 
     funds received in excess of $500,000.
       Provide eligible institutions with multiple eligible 
     graduate programs the flexibility to spend Sec. 326 funds on 
     any qualified graduate program.
       Authorize at $30 million for FY 1999 and such sums as may 
     be necessary for each of the 4 succeeding years.
     Part C--Endowment challenge funds for institutions eligible 
         for assistance under part A or part B.
       Authorize at $10 million for FY 1999 and such sums as may 
     be necessary for each of the 4 succeeding years.
     Part E--Historically black college and university capital 
         financing
       Move from current Title VII, Part B.
       Expand the definition of capital project to include 
     administrative facilities, student centers, and student 
     unions.
       Clarify that the Secretary may sell qualified bonds 
     guaranteed under this provision to any party that the 
     Secretary determines offers the best terms.

[[Page S2768]]

       Authorize at $110,000 for FY 1999 and such sums as may be 
     necessary for each of the 4 succeeding years.
     Part F--Minority science and engineering improvement program
       Move from current Title X, Part B.
       Modify definition of science to include behavioral 
     sciences.
       Authorize at $10 million for FY 1999 and such sums as may 
     be necessary for each of the 4 succeeding years.


                      TITLE IV: STUDENT ASSISTANCE

     Part A, subpart 1--Pell grants
       Change the name of the program from Basic Education 
     Opportunities Grants to the Federal Pell Grant program.
       Allow for the Department, after allowing for a formal 
     comment period, to institute an accurate and timely payment 
     process replacing the mandatory 85% advance funding to 
     institutions.
       Update and increase the Federal Pell Grant maximum awards.
       Eliminate the minimum step function for the minimum Pell 
     grant by setting the Pell minimum at $200.
       Place a time limit on the period during which students may 
     receive a Federal Pell Grant equal to 150 percent of the 
     period normally required to complete a course of study.
       Tighten provisions dealing with English as a Second 
     Language ``stand alone'' programs.
     Part A, Subpart 2, Chapter I--Early outreach, federal TRIO 
         programs
       Increase the minimum grant level for TRIO programs so as to 
     ensure comprehensive services remain available to students.
       Permit TRIO directors to administer more than one program 
     for disadvantaged students.
       Increase authorization level to $700 million in FY 1999 and 
     such sums as may be necessary for each of the 4 succeeding 
     years.
       Expand authorized activities in the Talent Search Program 
     to include activities designed to acquaint youth with careers 
     in which individuals from disadvantaged backgrounds are under 
     represented.
       Expand authorized activities in Upward Bound to include 
     summer work study and permit higher stipends for those Upward 
     Bound students participating in summer work study positions.
       Require the Secretary to consider the institution's efforts 
     to provide sufficient financial assistance to meet a 
     student's full financial need when awarding Student Support 
     Services grants to institutions.
       Reserve up to 2% of TRIO funds for Evaluation and 
     Dissemination/Partnership grants. The new Dissemination/
     Partnership provision would encourage partnerships between 
     TRIO programs and other institutions, community based 
     organizations or both offering programs or activities serving 
     at-risk students to provide technical assistance and 
     disseminate program best practices.
     Part A, Subpart 2, Chapter 2--National early intervention 
         scholarship and partnership program
       Reauthorize the program with no changes.
     Part A, Subpart 3--Federal supplemental education opportunity 
         grants
       Increase the authorization level for the SEOG program to 
     $700 million for FY 1999 and such sums as may be necessary 
     for each of the 4 succeeding years.
       Eliminate the percentage reference to less than full time 
     or independent students.
       Provide institutions with the authority to carry-back and 
     carry-forward 10% of the institution's SEOG funds.
     Part A, Subpart 4--Grants to states for state student 
         incentives
       Adopt Senators Reed and Collins proposal (S. 1644) 
     strengthening the SSIG program and renaming the program the 
     Leveraging Educational Assistance Partnership Act (LEAP), 
     with modifications.
     Part A, Subpart 5--Special programs for students whose 
         families are engaged in migrant education
       Increase the authorization level for the HEP and CAMP 
     programs to $25 million and $10 million in FY 1999 and such 
     sums as may be necessary for each of the 4 succeeding years.
     Part A, Subpart 6--Robert C. Byrd honors scholarship program
       Increase the authorization level to $45 million in FY 1999 
     and such sums as may be necessary for each of the 4 
     succeeding years.
     Part A, Subpart 7--CAMPUS
       Incorporates S.1151 with small modifications.
     Part B and D--Federal family education loan program and the 
         William D. Ford federal direct loan program
       Require non-state designated guarantors to have capacity to 
     respond to electronic inquiries.
       Clarify that for the purpose of calculating cohort default 
     rates loans that are successfully challenged on the basis of 
     improper servicing will be removed from both the numerator 
     and the denominator.
       Require institutions that unsuccessfully appeal high cohort 
     default rates and that choose to receive loans during the 
     appeal process be held liable for loans made during the 
     appeal process and to post surety in an amount sufficient to 
     cover these costs.
       Allow institutions with a student loan participation rate 
     index of .0375 or lower to be exempted from sanctions related 
     to high institutional cohort default rates.
       Extend and modifies current exemption from cohort default 
     rate sanctions enjoyed by HBCUs, HSIs, TCCCs and Navajo 
     Community Colleges.
       Reduce paperwork for institutions by only requiring them to 
     transmit information to lenders which is needed by the 
     lenders for originating and servicing the loan.
       Eliminate 30-day disbursement delay for first time 
     undergraduate borrowers at institutions with cohort default 
     rates of 5% or less.
       Eliminate multiple disbursement requirements for 4th and 
     5th year undergraduate students attending institutions with 
     cohort default rates of 5% or fewer who will receive a loan 
     to complete their degrees in less than one year.
       Provide loan forgiveness for teachers.
       Provide extended repayment terms for FFEL students with 
     loans in excess of $30,000.
       Exempt low volume lenders from annual lender audit 
     requirements.
       Allow borrowers to request forbearance electronically.
       Allow lenders to provide 60 day forbearance for requests 
     that require additional research. Interest may not be 
     capitalized.
       Repeal requirement that states share in costs of 
     guarantying student loans that go into default (provision 
     never implemented as a result of technical problems).
       Allow Secretary to specify additional factors that may be 
     considered in determining PLUS loan eligibility.
       Allow Secretary to verify immigration status and social 
     security number of PLUS loan applicants.
       Exclude borrowers from whom involuntary payments are 
     secured through litigation or administrative wage garnishment 
     from eligibility for consolidating defaulted loans.
       Eliminate 180-day rule for packaging of consolidation 
     loans.
       Encourage the development and use, free of charge to 
     borrowers, of electronic applications and forms that are 
     approved by the Secretary.
       Authorize the Secretary to develop and implement a multi-
     year promissory note for Parts B & D.
       Allow guaranty agencies and lenders to provide required 
     disclosures electronically at the request of the borrower.
       Clarify that the representative sample of loan servicing 
     and collection records that will be made available to a 
     school that is appealing its cohort default rate based upon 
     allegations of improper loan servicing will be those that the 
     guaranty agency used in making the determination whether to 
     pay an insurance claim to the lender.
       Repeal D.C. Student Loan Insurance Program--currently 
     served by ASA.
       Clarify the responsibility of program participants for the 
     program compliance of their contractors.
       Repeal requirement that an authority using tax-exempt 
     funding submit a plan for doing business.
       Allow the Secretary to pay for data that the Department 
     considers essential to the efficient administration of the 
     programs under Title IV.
       Authorize the Secretary to allow borrowers under Parts B 
     and D to use the FAFSA as their loan application.
       Allow institutions to use electronic technology to provide 
     personalized exit counseling to students.
       Clarify that for purposes of calculating the FFEL program 
     in-school interest subsidy that disbursement means 
     disbursement by the school.
       Clarify the loan limits available to borrowers who are 
     eligible for FFEL and DL loans while taking non-degree course 
     work necessary for enrollment or teacher certification.
       Delete obsolete language referring to the 7-month interval 
     of eligibility carried over from SLS program and clarify that 
     annual loan limits are based on the statutorily defined 
     academic year.
       Clarify that interest that accrues and is capitalized on 
     unsubsidized loans is not considered for purposes of 
     computing aggregate loan limits.
       Repeal payment to guaranty agencies for lender referral 
     services.
       Allow institutions to participate in one or more programs 
     under Part B or Part D.
       Recall $200 million in guaranty agency reserve funds.
       Clarify that reserve funds are the sole property of the 
     Federal government.
       Eliminate preclaims and supplemental preclaims assistance 
     and replace with a new default aversion program. GA's will be 
     reimbursed only for those accounts which are brought current.
       Restructure GA reimbursement to more accurately reflect 
     cost structure. Eliminate the administrative expense 
     allowance and replace with a loan origination fee and a 
     portfolio maintenance fee.
       Encourage greater emphasis upon default aversion by 
     reducing reinsurance from 98% to 95% and by reducing the GA 
     collection retention amount from 27% to 24%.
       Authorize the Secretary to enter into voluntary flexible 
     agreements with guaranty agencies in lieu of their agreements 
     under section 428 (b) and (c).
       Require the Secretary to report to Congress on the status 
     of efforts to bring mission critical systems into Y2K 
     compliance.
       Direct the Secretary of Treasury to conduct a study, in 
     consultation with institutions of higher education, lenders, 
     students, and other participants in the student loan 
     programs, of the impact and feasibility of

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     using market-based mechanisms to establish interest rates on 
     student loans.
       Authorize the Secretary to verify the incomes of the 
     parents of dependent applicants with the IRS.
       Establish the student loan interest rate 91-day T plus 1.7% 
     in school and 91-day T plus 2.3% in repayment. Establish the 
     rate paid to lenders at 91-day T plus 2.2% in-school and 91-
     day T plus 2.8% in repayment.
     Part C--Federal work-study programs
       Increase the authorization level for the Federal Work Study 
     Program to $900 million in FY 1999 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       Maintain provisions allowing for graduate student 
     participation in FWS in position that reinforces the 
     educational program or vocational goals of the student.
       Expand the definition of community service to allow for 
     certain types of on-campus jobs to count as community service 
     jobs.
       Eliminate the percentage reference to less than full time 
     or independent students.
       Allow for a higher federal contribution for community 
     service jobs.
       Delete the requirement that FWS-equivalent institutional 
     employment be available to all students desiring such 
     employment.
     Part D--(See Parts B and D summary above)
     Part E--Federal Perkins loans
       Eliminate the percentage reference to less than full time 
     or independent students.
       Increase loan limits in Perkins and eliminate the Expanding 
     Lending Option program.
       Allow higher loan limits for student pursuing an education 
     and career in teaching.
       Strengthen the penalties for high default in the Perkins 
     program including the loss of eligibility to participate 
     (defined as the liquidation of the institution's Perkins 
     fund) in Perkins for institutions with default rates of 50 
     percent or greater for 3 years in a row.
       Eliminate the requirement that institutions establish a 
     default management plan if its defaults are 15 percent or 
     above.
       Eliminate the exclusion of improperly serviced loans from 
     the calculation of cohort default rates.
       Define default for a borrower in the Perkins loan program.
       Establish a loan rehabilitation program for the Perkins 
     loan program.
       Require credit bureaus to report defaulted Perkins loans 
     until a loan is repaid in full and allow the Secretary to 
     establish criteria under which an institution may cease 
     reporting such information before a loan is paid in full.
       Include discharge provisions in cases where an institution 
     has closed.
       Strengthen the language that includes Perkins loans in the 
     Student Status Confirmation Report process.
       Create an incentive repayment plan in the Perkins loan 
     program.
       Update dates for the mandatory liquidation of Perkins loans 
     funds.
     Part F--Need analysis
       Adopt increases in the income protection allowances (IPA) 
     for dependent and independent students.
       Index IPA changes for inflation.
       Add a dependent student offset in the amount of the 
     negative adjusted parental income available.
       Move authority to reduce or deny loans to section entitled 
     ``Discretion of Student Financial Aid Administrators.
       Remove the requirement that Cost of Attendance include a 
     cost of living minimum amount for all populations.
       Prorate student contributions for periods of enrollments of 
     less than 9 months.
     Part G--General provisions
       Require the Department, to the extent feasible, to publish 
     minimal software and hardware requirements by December 1 
     prior to the start of an award year.
       Move from December 1 to November 1 the deadline by which 
     the Secretary must publish regulations affecting federal 
     student assistance programs in order for those regulations to 
     be applicable to the following award year and authorize the 
     Secretary to designate regulatory provisions that 
     institutions may choose to implement before the effective 
     date which would otherwise apply.
       Remove the reference to accrediting agency approved refund 
     policies from the list of policies to be compared to 
     determine which produces the largest amount.
       Revise methods for determining the ``last day of 
     attendance'' for purposes of making pro-rata refund 
     calculations.
       Clarify that institutions may provide students and 
     prospective students with a list of information and a 
     statement of the procedures required to obtain it in order to 
     comply with information dissemination requirements.
       Define ``prospective student'' as one who has requested 
     information regarding application for admission to an 
     institution.
       Clarify that the provision of comparable data by a national 
     collegiate athletic association satisfies the disclosure 
     requirement regarding athletically related student aid.
       Eliminate duplicative athletic reporting provisions.
       Add a provision to athletic reporting provisions regarding 
     disclosure when institutions intend to reduce the number of 
     athletes who will be permitted to participate in any 
     collegiate sport or in the financial resources that the 
     institution will make available to that sport.
       Revise and expand the list of crimes that must be included 
     in campus crime statistics to include arson and hate crimes; 
     require institutions to maintain a daily log that records the 
     nature, date, time and general location of each crime 
     reported to the local police or campus security; make 
     explicit that neither victims nor persons accused of a crime 
     may be identified in the reporting of campus crime 
     statistics, except as required by state or local laws; 
     require a national study to examine procedures undertaken 
     after an institution of higher education receives a report of 
     sexual assault; and exclude criminal activities from a post-
     secondary student's educational records.
       Section 486, ``Training in Financial Aid Services'' is 
     repealed, as it has not been funded.
       Require the National Center for Education Statistics (NCES) 
     to develop standard definitions for a few basic financial 
     items to help families make decisions about college; require 
     institutions to report these items annually; and make the 
     information available to the public. In addition, NCES would 
     work in consultation with the Bureau of Labor Statistics to 
     examine expenditures at institutions of higher education and 
     to develop a ``Higher Education Market Basket.''
       Clarify that only for-profit institutions have ``owners.''
       Reauthorize the Advisory Committee on Student Financial 
     Assistance at a funding level of $800,000 and direct the 
     committee to conduct studies and evaluations of the 
     modernization of student financial aid systems and delivery 
     processes; the use of appropriate technology in delivery and 
     management of student aid; the implications of distance 
     learning on student financial aid eligibility and other 
     requirements. In addition, the committee is to make 
     recommendations to the Secretary regarding redundant or 
     outdated sections of the Act and regulation to assist in the 
     review of those sections.
       Expand the categories of activities for which institutions 
     participating in the Quality Assurance Program develop their 
     own management approaches and clarify that the Secretary may 
     waive regulatory--but not statutory--requirements of Title IV 
     that are addressed by the institution's alternative 
     management system.
       Require the Secretary to report to Congress regarding the 
     results of experiments conducted under the current 
     experimental sites authority and make recommendations based 
     on those findings regarding amendments to the Higher 
     Education Act which would improve the operation of the Act. 
     Addition of new experiments will not be permitted until this 
     report is provided to Congress.
       Continue negotiated rulemaking and add Part D to the parts 
     (B, G, & H) which were subject to negotiated rulemaking 
     following the 1992 reauthorization. In addition, negotiated 
     rulemaking would be a requirement for developing all 
     regulations for student loan programs.
     Part H, Subpart 1--Program integrity triad, state role
       State Postsecondary Review Entity (SPRE) provisions are 
     repealed.
       Replace SPRE with language which defines State 
     responsibilities as being licensure and notification to the 
     Secretary of revocation of license or evidence of 
     institutional fraud. Require institutions to prove they have 
     authority to operate in a state.
     Part H, Subpart 2--Accrediting agency recognition
       Substitute the word ``recognition'' for ``approval'' each 
     time it appears in Subpart 2. Substitute ``criteria'' for 
     ``standards,'' consistent with current regulations.
       Modify provisions relating to accrediting agency assessment 
     of institutions to delete ``in clock hours or credit hours'' 
     relating to measure of program length and to clarify that 
     accrediting agencies are not expected to enforce compliance 
     with Title IV.
       Strengthen statutory requirements relating to the time 
     frame within which an accrediting agency must come into 
     compliance after the Secretary has determined the agency has 
     not met the requirements of Section 496.
     Part H, Subpart 3--Eligibility and certification procedures
       Require that an institution maintain a copy of any contract 
     between the institution and a financial aid service provider 
     or loan services, and provide a copy of any such contract to 
     the Secretary upon request, instead of requiring that the 
     institution supply the copy with its application to 
     participate in the student aid programs under Title IV (as is 
     currently the case).
       Substitute more general language for the specific listing 
     of financial responsibility measures now included in the Act 
     in order to conform with current financial responsibility 
     regulations.
       Specify that the Secretary may accept any reasonable third-
     party financial guarantees in cases where an institution 
     fails to meet overall financial responsibility standards.
       Specify that ``ownership'' applies only to for-profit 
     institutions.
       Eliminate the requirement that the Department conduct site 
     visits of all institutions and eliminate the ability of the 
     Department to charge fees to cover the expenses of 
     certification and site visits.
       Give the Secretary the authority to recertify an 
     institution for up to 6 years (rather than the 4 years in 
     current law) and require the Secretary to information 
     institutions 6 months in advance of the expiration of its 
     eligibility.
       Establish a special rule dealing with the recertification 
     schedule for institutions of

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     higher education located outside of the United States which 
     receive less than $500,000 annually in Federal Family 
     Education Loans.
       Clarify that, prior to seeking certification as a main 
     campus or free-standing institution, a branch is required to 
     be in existence for at least 2 years after it has been 
     certified by the Secretary as a branch campus participating 
     in a Title IV program.
       Require the Secretary to establish priorities for program 
     reviews of institutions of higher education, update priority 
     criteria, and include among the additional categories of 
     institutions which the Secretary may identify as requiring 
     priority review those which may pose significant risk of 
     failure to comply with the administrative or financial 
     responsibility provisions of Title IV.
       Add special administrative rules to: (1) require the 
     Secretary to inform institutions of the criteria involved in 
     program reviews; (2) require the Secretary to implement a 
     system of ``cures'' to allow institutions to correct minor 
     record-keeping errors; (3) require ``proportionality'' in 
     civil penalties; and (4) facilitate the exchange of 
     information between the Secretary and state authorizing 
     agencies and creditors.
       Require the Secretary to establish processes for ensuring 
     that eligibility and compliance issues are considered 
     simultaneously and for identifying unnecessary duplication of 
     reporting and related regulatory requirements.
      Part I--Performance based organization
       Establish a performance based organization within the 
     Department of Education for the purpose of simplifying and 
     improving the delivery of student financial aid under this 
     title. The Secretary of Education will be provided with 
     personnel and procurement flexibilities in order to allow for 
     the establishment of an organization rewarded for meeting 
     specified contractual goals for the management and delivery 
     of student financial aid. Personnel will be rewarded in 
     accordance with their ability to meet objective performance 
     measures. Proposed personnel and procurement flexibilities 
     include: alternative job evaluation systems, ability to 
     establish award programs, broad banding, alternative ranking 
     procedures for evaluating job applicants, ability to hire 
     technical and professional employees under excepted service, 
     simplified contracting procedures for commercial items, 
     modular contracting authority, and two-way selection 
     procedures.


       title v: graduate and postsecondary education improvement

     Parts A and B--Jacob K. Javits fellowship program and 
         graduate assistance in areas of national need
       Repeal unfunded programs.
       Maintain separate Jacob K. Javits Fellowship Program, 
     permit forward funding of it, and permit the Secretary to 
     contract out administration of the program if such a contract 
     would be more effective and efficient.
       Limit eligibility to students who demonstrate financial 
     need.
       Add an evaluation component.
       Maintain the Graduate Assistance in Areas of National Need 
     (GAANN) program, with minor amendments.
       Authorize the Jacob K. Javits Fellowships at $30 million in 
     FY 1999 and such sums as may be necessary for each of the 4 
     succeeding years.
       Authorize Graduate Assistance in Areas of National Need 
     (GAANN) at $30 million in FY 1999 and such sums as may be 
     necessary for each of the 4 succeeding years.
     Part C--Urban community service
       Move from current Title XI, Part A.
       Give priority to applicants which have shown prior 
     commitment to urban community service.
       Authorize at $20 million in FY 1999 and such sums as may be 
     necessary for each of the 4 succeeding years.
     Part D--Fund for the improvement of postsecondary education 
         (FIPSE)
       Move from current Title X, Part A.
       Permit greater flexibility within current personnel 
     ceilings to bring in technical experts.
       Revise special projects list to include: international 
     exchanges; institutional restructuring to improve learning 
     and promote cost efficiencies; evaluation and dissemination 
     of model programs; and articulation between two-year and 
     four-year institutions, including developing innovative 
     methods for ensuring the successful transfer of students from 
     2-year to 4-year institutions.
       Authorization:
       FIPSE General: $26 million in FY 99 and ``such sums'' in 4 
     succeeding years.
       Planning Grants: $1 million in FY 99 and ``such sums'' in 4 
     succeeding years. Special Projects: $5 million in FY 99 and 
     ``such sums'' in 4 succeeding years.
     Part F--Improving Access to Higher Education for Students 
         with Disabilities
       This program authorizes a competitive grant program to 
     provide assistance for improving disability support services 
     offered by institutions of higher education. Grants would be 
     awarded for a period of three years. $10 million are 
     authorized to be appropriated for this part in FY 1999 and 
     such sums as may be necessary in each of the 4 succeeding 
     years.
       Funds would be available to institutions of higher 
     education to develop and identify effective approaches that 
     enable individuals with disabilities to participate in post-
     secondary education, conduct training sessions and workshops 
     for faculty and other personnel of institutions of higher 
     education to help them meet the special needs of 
     postsecondary students with disabilities, research the 
     effectiveness of support services to individuals with 
     disabilities in postsecondary education, prepare products 
     from the project and disseminate those products, and 
     coordinate projects with existing technical assistance and 
     dissemination networks in postsecondary education.


                   title vi: international education

       Repeal unfunded/obsolete provisions.
       Add a foreign language component to the summer institutes 
     authorized under Sections 602 (Graduate and Undergraduate 
     Language and Area Centers), 604 (Undergraduate International 
     Studies and Foreign Language Programs), and 612 (Centers for 
     International Business Education).
       Modify Section 603 (Language Resource Centers) to permit 
     the operation of intensive summer language institutes, to 
     permit the development and dissemination of resource 
     materials for elementary and secondary school language 
     teachers, and to make dissemination a component of each 
     Center activity.
       Consolidate provisions and streamline Section 604 
     (Undergraduate International Studies and Foreign Language 
     Programs).
       Add two new authorized activities to Section 606 (Research; 
     Studies) dealing with evaluation of programs receiving 
     assistance under Title VI and of effective dissemination 
     practices.
       Clarify that the establishment of new American Overseas 
     Research Centers is allowable under Section 610.
       Specifically mention that community college representatives 
     may serve on the advisory council to Centers for 
     International Business Education.
       Increase required match by Minority Foreign Service 
     Professional Development Program grant recipients from one-
     fourth to one-half, with the non-federal contribution being 
     made by private sector contributions.
       Authorize the Institute for International Public Policy to 
     make sub-grants to strengthen institutional international 
     affairs programs at HBCUs, HSIs, and Tribal Colleges.
       Clarify that summer abroad programs are permissible under 
     the Junior Year Abroad Program (Section 623).
       Authorization Levels:
       Part A: $80 million in FY 1999 and ``such sums'' in 
     succeeding 4 years.
       Part B:
       Section 612: $11 million in FY 1999 and ``such sums'' in 
     succeeding 4 years.
       Section 613: $ 7 million in FY 1999 and ``such sums'' in 
     succeeding 4 years.
       Part C: $10 million in FY 1999 and ``such sums'' in 
     succeeding 4 years.


        title vii: related programs and amendments to other laws

     Part A--Indian higher education programs
       Change reference to ``Tribally-Controlled Community 
     College'' to ``Tribally Controlled College or University'' 
     and make conforming and technical changes.
       Authorization Level (Department of the Interior):
       Technical Assistance Centers $3.2 million in FY 1999 and 
     ``such sums.''
       Grants to TCCCs $40.0 million in FY 1999 and ``such sums.''
       Renovation/Construction of Facilities $10.0 million in FY 
     1999 and ``such sums.''
       TCCC Endowment Program $10.0 million in FY 1999 and ``such 
     sums.''
       Tribal Economic Development $2.0 million in FY 1999 and 
     ``such sums.''
     Part B--Advanced placement fee payment program
       Move from current Title XV, Part G.
       Modify program to encourage States to support advanced 
     placement teacher training and related activities designed to 
     increase the participation of low-income individuals and to 
     permit up to 5% of funds to disseminate information about the 
     availability of test fee payments.
       Authorize at $10 million in FY 1999 and such sums as may be 
     necessary for each of the 4 succeeding years.
     Part C--Amendments to institute for peace act
       Technical changes.
     Part D--Community scholarship mobilization
       Authorize a competitive grant program which will allow the 
     grant recipient, using the interest from an endowment grant, 
     to establish and support state or regional program centers to 
     foster the development of local affiliated chapters in high 
     poverty areas that promote higher education goals for 
     students from low income families by providing academic 
     support and scholarship assistance.
       Seventy percent of interest income would support the 
     establishment or ongoing work of state or regional program 
     centers to enable such centers to work with local communities 
     to establish local affiliated chapters in high poverty areas 
     and provide ongoing assistance, training workshops, and other 
     activities to ensure the success of local chapters.
       Thirty percent of the interest income would be used to 
     provide scholarships for students from low income families, 
     and scholarships would be matched 1:1 from funds raised by 
     the local community.
       The proposal provides and authorizes the appropriation of 
     $10 million for fiscal year 2000 to carry out the purposes of 
     this part.
     Part E--Incarcerated youth offenders
       Move from current Title X, Part E.

[[Page S2771]]

       Authorized at $14 million in FY 1999 such sums as may be 
     necessary for each of the 4 succeeding years.
     Part F--Amendments to Education of the Deaf Act
       Update references to IDEA. Includes technical and 
     conforming amendments to make the provisions pertaining to 
     Gallaudet's Kendall Elementary School and the Model Secondary 
     School for the Deaf consistent with the 1997 IDEA.
       Extension of authorization of appropriations. Extends 
     authorization of appropriations from fiscal year 1998 through 
     fiscal year 2003.
       Clarification of audit requirements. Clarifies that audits 
     include the national mission and school operations of the 
     elementary and secondary education programs at Gallaudet 
     University; and adds a requirement that a copy of each audit 
     be provided to the Secretary within 15 days of the acceptance 
     of the audit by Gallaudet University or the institution 
     authorized to establish and operate the National Technical 
     Institute for the Deaf.
       Removal of restrictions on investment of non-Federal 
     portion of endowment. Allows institutions to invest the non-
     Federal share of their endowments without the restrictions 
     placed on Federal contributions to the endowments.
       Immediate access to interest on endowment. Provides 
     immediate access to the interest on their endowments, rather 
     than as under current law, having access to only 50 percent 
     of the interest from the prior year.
       Limitation with regard to international student enrollment. 
     Requires that, in any school year, no qualified U.S. citizen, 
     who elects to enroll in Gallaudet University or the National 
     Technical Institute for the Deaf, is denied admission because 
     of the admission of an international student.
       Institutional Research Plans. Requires Gallaudet University 
     and the National Technical Institute for the Deaf establish 
     and disseminate priorities and prepare and submit an annual 
     research report to the Secretary and Congress.
       Commission on education of the deaf. Requires the Secretary 
     of Education to establish a Commission on 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 and employment experiences.
     Part G--Repeals


            title i--partnerships for educational excellence

       PART A--School, College, and University Partnerships.
       PART B--Articulation Agreements.
       PART C--Access and Equity to Education for All Americans 
     Through Telecommunications.


         title ii--academic libraries and information services

       *Title II was repealed by P.L. 104-208 (FY 1997 Department 
     of Education Appropriations Act).


                      Title iv--student assistance

       PART A--Grants to Students in Attendance at Institutions of 
     Higher Education.
       Chapter 3--Presidential Access Scholarships.
       Chapter 4--Model Program Community Partnership and 
     Counseling Grants.
       Chapter 5--Public Information/Database and Information 
     Line.
       Chapter 6--National Student Savings Demonstration Program.
       Chapter 7--Preeligibility Form.
       Chapter 8--Technical Assistance for Teachers and 
     Counselors.
       Subpart 8--Special Child Care Services for Disadvantaged 
     College Students.
       PART H--Program Integrity Triad.
       Subpart 1--State Postsecondary Review Program (SPRE).


       title v--educator recruitment, retention, and development

       PART A--State and Local Programs for Teacher Excellence.
       PART B--National Teacher Academies.
        PART C--Teacher Scholarships and Fellowships.
       Subpart 1--Paul Douglas Teacher Scholarships.
       Subpart 2--Christa McAuliffe Fellowship Program.
       Subpart 3--Teacher Corps
       PART D--Innovation and Research.
       Subpart 1--National Board for Professional Teaching 
     Standards.
       Subpart 3--Class Size Demonstration Grant.
       Subpart 4--Middle School Teaching Demonstration Programs.
       PART E--Minority Teacher Recruitment.
       Subpart 1--New Teaching Careers.
       PART F--Programs for Special Populations.
       Subpart 1--National Mini Corps Program.
       Subpart 2--Foreign Language Instruction.
       Section 586--Demonstration Grants for Critical Language and 
     Area Studies.
       Section 587--Development of Foreign Language and Culture 
     Instructional Materials.
       Subpart 3--Small State Teaching Initiatives.
       Subpart 4--Faculty Development Grants.
       Subpart 5--Early Childhood Education Training.


               title vi--international education programs

       Section 604(b)--Programs of Demonstrated Excellence in Area 
     Studies, Foreign Languages, and other International Fields.
       Section 605--Intensive Summer Language Institutes.
       Section 607--Periodicals and Other Research Materials 
     Published Outside the United States.


  title vii--construction, reconstruction, and renovation of academic 
                               facilities

       PART A--Improvement of Academic and Library Facilities.
       PART D--College Construction Loan Insurance Association.
       *The cooperation has since been privatized.


                   title viii--cooperative education

       No funding for this title.


                      title ix--graduate programs

       PART A--Grants to Institutions and Consortia To Encourage 
     Women and Minority Participation in Graduate Education.
       PART B--Patricia Roberts Harris Fellowship Program.
       PART E--Faculty Development Fellowship Program.
       PART F--Assistance for Training in the Legal Profession.
        PART G--Law School Clinical Experience.


              title x--postsecondary improvement programs

       PART B--Minority Science and Engineering Improvement 
     Programs.
       Subpart 2--Science and Engineering Access Programs.
       PART C--Women and Minorities Science and Engineering 
     Outreach Demonstration Program.
       PART D--Dwight D. Eisenhower Leadership Program.


                  title xi--community service programs

       PART B--Innovative Projects.
       Subpart 1--Innovative Project for Community Service.
       Subpart 2--Student Literacy Corps and Student Mentoring 
     Corps.
  Mr. KENNEDY. Mr. President, it is an honor to be a sponsor of the 
Higher Education Act Amendments of 1998 with Chairman Jeffords and 
Senators Coats and Dodd. The reauthorization of this Act is a 
bipartisan effort of all members of the Labor Committee, and I am 
pleased that we have achieved a consensus on so many issues.
  Our goal in this bill is to strengthen federal support for higher 
education. Our legislation increases the maximum authorization for Pell 
grants, and expands the formula for need analysis to protect more of 
the income of working parents and students.
  The bill also continues the critical investment in graduate education 
through the institution-based program of Graduate Assistance in Areas 
of National Need, as well as the portable Javits Fellowships, which are 
vital for talented students in the arts, humanities, and social 
sciences, where other sources of funding are limited.
  An additional initiative in the bill will enable institutions to work 
with faculty and administrators to improve teaching for students with 
disabilities. Increasing numbers of students with disabilities are 
participating in higher education, and faculty members often have 
little experience in adapting their teaching techniques for these 
students. This initiative will reach out to many different types of 
institutions, including community colleges, graduate schools, and urban 
and rural institutions. It also includes graduate teaching assistants--
the faculty of the future. This program was first suggested by the 
University of Massachusetts, and it is supported by the Consortium for 
Citizens with Disabilities on behalf of 20 disability groups.
  The bill takes a major step to improve the training of teachers by 
creating strong programs for training and recruitment. The training 
program has two parts. Fifty percent goes to local partnerships that 
include elementary and secondary schools, programs or schools of 
teacher training, schools of arts and sciences, and other groups, such 
as teachers unions, businesses, and community organizations. The other 
50 percent of the funding goes to competitive grants to state education 
agencies. This teacher training proposal represents a thoughtful 
compromise, and I hope it will receive strong support in the Senate.
  The bill helps teachers in another way, through loan forgiveness. I 
have long supported more loan forgiveness for teachers, and I am 
pleased that there is bipartisan support for this proposal. It forgives 
loans for teachers who teach for at least 3 years in high-need schools. 
Many college graduates with heavy debt loads cannot afford to go into 
teaching in schools where we need them most. This loan forgiveness 
program will make it easier for idealistic young men and women to work 
with needy children.

[[Page S2772]]

  The bill also calls for the creation of a Performance Based 
Organization at the Department of Education. Following Vice President 
Gore's initiative to re-invent government, this organization will 
streamline and improve the financial aid functions at the Department. 
We are working with the Department to make a plan that will work well 
for it, for students, and for all others involved in student aid.
  Two provisions of the bill raise significant question. One of those 
provisions modifies the payment structure for the guaranty agencies 
that work with banks in the student loan program. But greater reform of 
these agencies is needed. They are paid too much if students go into 
default, and they are not paid enough for preventing defaults in the 
first place. I am pleased, however, that the bill does allow guaranty 
agencies to enter into voluntary, flexible agreements with the 
Secretary of Education that will be more business-like and will focus 
more heavily on preventing defaults. ASA, the guaranty agency in 
Massachusetts, has been at the forefront of the reform movement, and 
supports these voluntary agreements.
  Finally, the bill, like the House bill, reduces the interest rate 
that students pay on their college loans by almost 1% from the current 
rate. This reduction will be a substantial benefit for students. The 
average borrower with a loan of $12,000 will save $650 in interest over 
the life of the loan, and the average master's degree student with a 
debt of $20,000 will save more than $1000. For borrowers with larger 
loans, the savings will be greater. I am pleased that Republicans and 
Democrats agree that reducing the interest rate on student loans is 
necessary.
  But the bill trims the rates paid to banks only slightly. As under 
the House bill, students will pay less interest to the banks, but the 
federal government will make an additional payment to the banks, so 
that bank receipts will go down only slightly from the high rates now 
in effect. This subsidy is paid by the taxpayers. The cost is at least 
$1.2 billion over 5 years, and may be as high as $3.9 billion.
  The banks complain that they cannot live with even this very modest 
cut. In 1992, they told us that they could not accept any cut in the 
interest rate on student loans. Congress cut the rate anyway, and the 
bank loan program continued to thrive. Today, however, at a time when 
interest rates in the economy are low, the interest rate for government 
guaranteed student loans is higher than the rate for either car loans 
or home mortgages. A recent report from the Treasury Department shows 
that if the interest rate on student loans is cut by almost 1%, the 
banks can still make a reasonable profit.
  The interest rate subsidy in this bill is not offset by other 
revenues. We will have to work with the Budget Committee, with our 
colleagues in the House, and with the Administration to resolve this 
problem. We must do all we can to reduce the high cost of borrowing for 
students, without subsidizing banks at the expense of taxpayers.
  This legislation is designed to improve higher education in all parts 
of America. It renews our commitment to needy students, to graduate 
education, to teacher training, and to improving loan service for 
students. I look forward to working with my colleagues on this 
important legislation in the weeks to come.
  Mr. DODD. Mr. President, I rise today to join my colleagues, Senator 
Jeffords, Senator Kennedy, and Senator Coats, in introducing the Higher 
Education Act Amendments of 1998.
  The Higher Education Act is the foundation of opportunity and access 
to post-secondary education. Pell Grants, College Work Study, federal 
student loans and federal TRIO programs are what make college possible 
for the all Americans. The bill we introduce today makes important 
changes in these programs and updates and streamlines the law to ensure 
the vitality of federal aid programs in the next millennium.
  There are few pieces of legislation that we will consider this 
Congress that are as important to American families as this bill. 
Parents recognize that their child's success is in no small measure 
dependent on their educational achievement. Statistics bear this out--a 
person with a Bachelor's degree earns twice as much as one with just a 
high school education.
  But this issue is not only of concern to families; higher education 
has defined and shaped America's economy in the post World War II era. 
Our economy has grown on the strength of knowledge-based, highly-
skilled industries and workers. This would not have been possible 
without higher education or without our federal commitment to ensuring 
access to college.
  Since the GI Bill, millions of Americans have been able to attend 
college because of the assistance offered by the Federal Government. 
Today, 75 percent of all student aid is federal.
  And yet, with rising college costs and growing student debt, families 
increasingly worry that college is slipping beyond their grasp. Studies 
suggest that, even with the nearly $35 billion of federal aid available 
each year, affordability is already becoming a factor for those at the 
lowest income levels.
  And in nearly all families, a letter offering financial aid is as, if 
not more, important than the actual letter accepting the student into a 
college of his or her choice. This bill works to make sure that the 
serious problem of rising college costs does not become more of a 
reality for America's families and reaches out to those who already 
believe that college is slipping beyond their reach.
  In particular, we have adopted many of the recommendations of the 
Cost of College Commission, formed by the Congress last year. We 
streamlined many regulatory requirements that may contribute to rising 
costs. We also adopted strong new disclosure requirements about cost. 
These provisions will provide families with new, reliable and 
comparable information on college costs, so they can exercise their 
power as consumers to choose institutions that are of high quality and 
reasonable cost.
  This legislation also strengthens federal financial aid programs 
which are a lifeline for millions of families as they struggle with 
cost increases. We authorize an increase in the maximum Pell Grant 
award and hope that appropriators and our Budget Resolution will follow 
through with adequate funds. We also adjust the treatment of the 
neediest students' earnings to ensure that they and their families are 
not penalized in the award of aid because the student works, as I 
recommended in earlier legislation. We also expand campus-based aid 
programs, like College Work Study and low-cost Perkins Loans, to reach 
more students. We improve the federal student loans programs by 
providing extended repayment for students with large balances and by 
giving colleges more tools to help their students avoid expensive 
loans.

  Students are also guaranteed a substantially lower student loan 
interest rate. As many members are aware, the issue of the student loan 
interest rate has been the most controversial and closely followed 
issue in this bill. I am very pleased that the solution we put forward 
today ensures that students will receive the long-term benefit of 
substantially lower rates. However, I am disappointed that this bill 
expects taxpayers to foot this bill with a new subsidy to banks. This 
new entitlement to banks is also costly and raises serious budget 
concerns on our bill. I am hopeful that we can continue to work on this 
issue with the majority, the Budget Committee and the Administration to 
reach a better solution for taxpayers than the one proposed today.
  This legislation also includes new authority for the Secretary to 
explore the potential of distance education and learning. In the past, 
distance education too often meant correspondence courses with little 
merit and high cost. Today, the Internet, the World Wide Web, and other 
emerging technologies offer new opportunities for quality, interactive 
learning right from a student's home. However, current law provides 
little opportunity for institutions and their students to explore these 
exciting opportunities. The bill we introduce today directs the 
Secretary to undertake and carefully monitor a demonstration program in 
distance education.
  The bill also includes another important initiative to increase 
access to post-secondary education--the Child Care Access Means Parents 
in School Act, which Senator Snowe and I introduced last year. This 
bill will support

[[Page S2773]]

campus-based child care centers meeting the needs of low income 
students. As the non-traditional student population grows, one of the 
major obstacles facing students who are parents is locating affordable, 
quality child care. Campuses are a key place to meet this need. In my 
home state of Connecticut, all of our community-technical colleges have 
campus-based child care facilities. The centers provide student-parents 
with convenient, high quality care and also serve as laboratories for 
training new child care providers.
  Colleges are also our nation's laboratories for training teachers. 
This bill offers significant new support in this area. The committee 
has worked hard with its members and developed a comprehensive teacher 
training program that supports state-level initiatives and local 
partnerships. This two-track approach will ensure that colleges and 
schools who work together to improve teacher training will be rewarded 
at the state level with recognition for achieving higher standards. In 
another important initiative, this bill also offers teachers working in 
high poverty schools with loan forgiveness. This effort will provide 
highly qualified teachers with a powerful incentive to share their 
talents, skills and knowledge with the neediest children.
  Beyond bringing student aid programs in line with today's realities, 
we also take a key step to modernize and improve the delivery of these 
crucial student aid programs in the creation of the Performance-Based 
Organization within the Department of Education. the PBO will 
administer and deliver all federal student aid. At nearly $35 billion a 
year, the complexity of this undertaking demands talent, energy, 
experience, and performance. A PBO will ensure that the Secretary can 
recruit the best people to this job and retain them based on their 
performance.
  Mr. President, this is a strong and comprehensive bill. But perhaps 
most importantly for its future, it is a bipartisan bill. I was pleased 
to be a part of the effort of our chairman, Senator Jeffords, Senator 
Kennedy, and Senator Coats in pulling this bill together. It may not be 
everything any one of us wanted; however, it is what America's students 
and their families need.

                          ____________________