[Congressional Record Volume 144, Number 50 (Wednesday, April 29, 1998)]
[House]
[Pages H2510-H2594]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HIGHER EDUCATION AMENDMENTS OF 1998
Mr. HASTINGS of Washington. Mr. Speaker, by direction of the
Committee on Rules, I call up House Resolution 411 and ask for its
immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 411
Resolved, That at any time after the adoption of this
resolution the Speaker may, pursuant to clause 1(b) of rule
XXIII, declare the House resolved into the Committee of the
Whole House on the State of the Union for consideration of
the bill (H.R. 6) to extend the authorization of programs
under the Higher Education Act of 1965, and for other
purposes. The first reading of the bill shall be dispensed
with. All points of order against consideration of the bill
are waived. General debate shall be confined to the bill and
shall not exceed one hour equally divided and controlled by
the chairman and ranking minority member of the Committee on
Education and the Workforce. After general debate the bill
shall be considered for amendment under the five-minute rule.
It shall be in order to consider as an original bill for the
purpose of amendment under the five-minute rule the amendment
in the nature of a substitute recommended by the Committee on
Education and the Workforce now printed in the bill, modified
by the amendments printed in part 1 of the report of the
Committee on Rules accompanying this resolution. That
amendment in the nature of a substitute shall be considered
by title rather than by section. Each title shall be
considered as read. All points of order against that
amendment in the nature of a substitute are waived. Before
consideration of any other amendment it shall be in order to
consider the amendment printed in part 2 of the report of the
Committee on Rules, if offered by Representative Goodling or
his designee. That amendment shall be considered as read,
shall be debatable for 20 minutes equally divided and
controlled by the proponent and an opponent, shall not be
subject to amendment, and shall not be subject to a demand
for division of the question in the House or in the Committee
of the Whole. All points of order against that amendment are
waived. If that amendment is adopted, the provisions of the
amendment in the nature of a substitute as then perfected
shall be considered as original text for the purpose of
further amendment. No other amendment to the amendment in the
nature of a substitute shall be in order except those printed
in the portion of the Congressional Record designated for
that purpose in clause 6 of rule XXIII. Printed amendments
shall be considered as read. The chairman of the Committee of
the Whole may: (1) postpone until a time during further
consideration in the Committee of the Whole a request for a
recorded vote on any amendment; and (2) reduce to five
minutes the minimum time for electronic voting on any
postponed question that follows another electronic vote
without intervening business: Provided, That the minimum time
for electronic voting on the first in any series of questions
shall be 15 minutes. At the conclusion of consideration of
the bill for amendment the Committee shall rise and report
the bill to the House with such amendments as may have been
adopted. Any Member may demand a separate vote in the House
on any amendment adopted in the Committee of the Whole to the
bill or to the amendment in the nature of a substitute
ultimately considered as original text. The previous question
shall be considered as ordered on the bill and amendments
thereto to final passage without intervening motion except
one motion to recommit with or without instructions.
The SPEAKER pro tempore. The gentleman from Washington (Mr. Hastings)
is recognized for 1 hour.
Mr. HASTINGS of Washington. Mr. Speaker, for the purposes of debate
only, I yield the customary 30 minutes to the gentleman from Ohio (Mr.
Hall), pending which I yield myself such time as I may consume. During
consideration of this resolution, all time yielded is for the purposes
of debate only.
(Mr. HASTINGS of Washington asked and was given permission to revise
and extend his remarks.)
Mr. HASTINGS of Washington. Mr. Speaker, H.Res. 411 is a modified
open rule waiving all points of order against consideration of the
bill. The bill provides 1 hour of general debate to be divided equally
between the chairman and ranking minority member of the Committee on
Education and the Workforce.
[[Page H2511]]
The rule also provides that the amendment in the nature of a
substitute recommended by the Committee on Education and the Workforce
now printed in the bill, as modified by the amendments printed in part
1 of the report of the Committee on Rules, shall be considered as an
original bill for the purpose of amendment.
Furthermore, Mr. Speaker, the rule provides that the amendment in the
nature of a substitute shall be considered by title and that each title
shall be considered as read. All points of order are waived against the
amendment in the nature of a substitute.
The rule provides that before consideration of any other amendment,
it shall be in order to consider the manager's amendment printed in
part 2 of the report of the Committee on Rules, if offered by the
gentleman from Pennsylvania (Mr. Goodling) or his designee.
All points of order against that amendment are also waived, it shall
be considered as read, and shall be debatable for 20 minutes equally
divided and controlled by the proponent and an opponent. It shall not
be subject to amendment and shall not be subject to a demand for
division of the question in the House or in the Committee of the Whole.
If that amendment is adopted, the provisions of that amendment in the
nature of a substitute as then perfected shall be considered as
original text for the purpose of further amendment.
Mr. Speaker, H.Res. 411 provides that no other amendment to the
amendment in the nature of a substitute shall be in order except those
printed in the Congressional Record.
The rule allows the Chairman of the Committee of the Whole to
postpone votes during consideration of the bill and to reduce votes to
5 minutes on a postponed question if the vote follows a 15-minute vote.
Finally, the rule provides one motion to recommit, with or without
instructions.
Mr. Speaker, H.R. 6, the Higher Education Amendments of 1998,
reauthorizes existing programs that provide Federal aid to students. It
is designed to help to make college more affordable, simplify the
student aid system and improve academic quality. Most importantly, Mr.
Speaker, this legislation will ensure that all Americans wishing to
pursue a higher education will continue to have that opportunity.
First and foremost, H.R. 6 safeguards the student loan program by
ensuring that student loans will remain available for all students and
that students will receive the lowest interest rates in 17 years.
Moreover, once this bill is enacted into law, deserving students from
disadvantaged backgrounds will have more Federal support to attend
college than ever before. H.R. 6 improves campus-based aid programs
such as Work Study, Supplemental Educational Opportunity Grants, and
Perkins Loans. It also expands flexibility in the Pell Grant program
that provides vouchers to needy students, by permitting a larger
portion of the grant to be used for purposes other than tuition, such
as child care for parents attending classes.
Mr. Speaker, encouraging students and their parents to work and save
for educational expenses is a priority in this Congress. Accordingly,
H.R. 6 increases the amount of income students may earn before it
impacts their eligibility for financial aid. The bill also exempts
veterans' benefits from being counted against students when they apply
for financial aid.
Incredibly, Mr. Speaker, the current financial aid formula treats the
assets of students and their parents differently and separately, as
though they are not part of the same family. H.R. 6 changes this
provision by combining the assets of the student and his or her parents
when calculating the total ability of the family to contribute towards
college expenses.
Finally, this legislation contains a number of administrative changes
designed to streamline aid to education and eliminate bureaucratic red
tape. In that regard, H.R. 6 can truly be described as a good deal for
taxpayers as well as a good deal for students.
I commend the Committee on Education and the Workforce, and in
particular the gentleman from Pennsylvania (Mr. Goodling), the
gentleman from California (Mr. McKeon), the gentleman from Missouri
(Mr. Clay) and the gentleman from Michigan (Mr. Kildee) for their
efforts in bringing this important legislation to the floor. The rule
before the House today is designed to provide full and fair
consideration of the committee's work product, while limiting the
opportunity for Members desiring merely to score political points with
this bipartisan legislation.
Mr. Speaker, the quality of our higher education system in the United
States has long been the envy of the entire world. At the same time,
access to higher education for all deserving young people has been one
of the driving forces behind two centuries of innovation and economic
growth.
I urge my colleagues to continue this tradition by putting America's
students and their education first and adopting both this rule and H.R.
6, the Higher Education Amendments of 1998.
Mr. Speaker, I reserve the balance of my time.
{time} 1900
Mr. HALL of Ohio. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to thank my colleague from Washington (Mr.
Hastings) for yielding me the time.
This is a modified open rule. It will allow debate on H.R. 6, which
is the Higher Education Amendment of 1998. As my colleague has
described, this rule provides 1 hour of general debate to be equally
divided and controlled by the chairman and the ranking minority member
of the Committee on Education and the Workforce.
The rule makes in order only those amendments that have been
preprinted in the Congressional Record. These amendments will be
permitted under the 5-minute rule, the normal amending process in the
House. The rule does permit germane amendments to those preprinted
amendments.
The bill continues and revises Federal student loans, Pell grants and
other higher education programs. Federal grants, loans and college work
study awards have made the dream of higher education a reality for
millions of young people. These programs are essential to bring the
opportunity for higher education to all Americans. This bill makes a
number of important changes to the programs intended to make college
affordable, simplify the student aid system and promote academic
quality.
Mr. Speaker, It is a bipartisan bill. It has strong support from both
sides of the aisle. The Committee on Education and the Workforce
reported the bill with all Democrats who were present supporting it.
During testimony last night before the Committee on Rules, the
gentleman from Missouri (Mr. Clay) the ranking minority member of the
committee, and the gentleman from Michigan (Mr. Kildee) the ranking
minority member of the subcommittee, requested a full and open rule.
The Committee on Rules denied the request, instead requiring all floor
amendments to be preprinted in the Congressional Record. Even though
the minority's request was not fully granted, the rule will provide
opportunity for Members to amend the bill on the House floor. Moreover,
the bill is the result of a bipartisan process.
Mr. Speaker, the Committee on Rules approved this modified open rule
by a voice vote, and I would urge adoption of the rule.
Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Speaker, I yield 4 minutes to the
gentleman from Tennessee (Mr. Duncan).
Mr. DUNCAN. Mr. Speaker, I rise in support of the rule and for the
underlying bill, H.R. 6, which this rule brings to the floor, the
Higher Education Amendments of 1998.
I especially want to thank my good friend, the gentleman from
Washington (Mr. Hastings) for yielding me this time; and also I would
like to thank the chairman, the gentleman from Pennsylvania (Mr.
Goodling) for including provisions in the bill in H.R. 6 which are
similar to my bill, H.R. 715, the Accuracy in Campus Crime Reporting
Act.
I would briefly like to discuss H.R. 715, much of which has been
incorporated into H.R. 6.
This legislation, H.R. 715, currently has 71 cosponsors almost
equally split between both parties. H.R. 715 is a
[[Page H2512]]
genuinely bipartisan bill. No college or university that has a safe
campus should have any problems with the campus security provisions in
H.R. 6, but for those institutions that do have crime problems,
students and their parents should have a right to know about these
dangers before they enroll.
I became concerned about this issue after meeting with several
families whose children had been murdered on college campuses. These
families never dreamed that they should have to worry about the
physical safety of their children on college campuses.
The issue of campus crime last attracted the interest of many in the
national media in the past year. Both CBS and ABC have devoted
extensive time to this problem. Several leading publications have also
covered this story. In fact, both the New Republic and USA Today have
favorably written about my legislation, H.R. 715.
After reading many of these articles and hearing these reports, it
became painfully obvious to me that many colleges are doing a poor job
in giving students and their parents an accurate picture of the dangers
that lurk on some college campuses.
On February 9, USA Today strongly endorsed H.R. 715 by stating,
quote, in 1990, Congress passed a law requiring colleges to collect
annual campus crime statistics, but the Education Department blocked
the law's full implementation by threatening to withhold Federal funds
from colleges opening their police logs.
USA Today then hit the nail on the head by concluding, quote, it is a
sad state of affairs when an act of Congress is necessary for the
Education Department to protect student safety.
I think, Mr. Speaker, that most of us look fondly on our college
days, from the appealing image of ivy-lined brick buildings, the
excitement of interacting with professors and, of course, making new
friends who last for a lifetime. At least, that is what my colleagues
and I probably remember.
However, in the 1990s, unfortunately, the reality is far different.
On many campuses, rapes, robberies and even murders are becoming far
too common. Students now have reason to fear for their safety on some
campuses.
Mr. Speaker, I am very pleased that H.R. 6 contains campus security
provisions that are modeled on H.R. 715. The campus security provisions
of H.R. 6 require colleges and universities to maintain a daily log of
all crimes committed and make those logs available for public
inspection within 48 hours.
Many States already require colleges and universities to make their
police logs public. These provisions in H.R. 6 are a matter of fairness
to those institutions which are making good-faith efforts to inform the
public of the dangers on their campuses. The need for accurate police
logs is crucial so that accurate crime statistics can be compiled. The
public must be able to make informed decisions about where to attend
college.
While I would have liked to have seen more provisions from H.R. 715
included in H.R. 6, I believe that the provisions that are included
will go a long way in improving the public's awareness of the dangers
that, unfortunately, lurk on some of our college campuses. I appreciate
the cooperation of the gentleman from Pennsylvania (Mr. Goodling) in
this regard, and I urge support for H.R. 6.
Mr. HALL of Ohio. Mr. Speaker, I yield 4 minutes to the gentleman
from South Carolina (Mr. Spratt).
(Mr. SPRATT asked and was given permission to revise and extend his
remarks.)
Mr. SPRATT. Mr. Speaker, I thank the gentleman for yielding me the
time.
Mr. Speaker, I support student loans, and I support the kind of
compromise that has been reached in this bill, but as the ranking
democrat on the Committee on the Budget I have to raise concerns about
this bill because I do not think it complies with the Budget Act, and I
think those concerns should be expressed.
For the first time in 30 years, we have got a balanced budget this
year, and we have got a balanced budget in part because of disciplines
and budget process changes we made in the Budget Summit Agreement of
1990, the Omnibus Budget Reconciliation Act of 1993 and the Balanced
Budget Act last year, 1997.
One of those rules which we established in 1990 and have carried
forward in each of those years was the so-called pay-go rule, which
simply provides that any time anyone wants to liberalize or add to an
entitlement the cost of it must be paid for either by identifying a
revenue stream to pay for it or by reducing an entitlement somewhere
else in the budget.
When the rule was read, the gentleman noted that all points of order
are raised. The reason all points of order have to be raised as to the
Budget Act is that this particular bill increases direct spending for
student loans by $2.8 billion, according to the Office of Management
and Budget, over and above what was provided in the balanced budget
agreement last year.
In effect, what we have done here is lower the rates the students
will pay, and that is good, I am for that, and raise to some extent
what the banks will realize for these loans. We have increased the
spread over and above what was anticipated for the next 5 years, and
the cost is $2.8 billion, according to OMB.
Now what does this mean? We have waived points of order. The bill
cannot be withheld. I know the calamity it would cause if it were
withheld because students are making decisions about how they will pay
for college right now.
But what this means is that we will have an entry on something called
the pay-go score card. There is about $700 million in scored offsets to
this bill so the entry will be $2.8 billion minus $700 million equals
$2.1 billion. And if as of September 30 of this year we have not
cleared that from the score card, it will trigger sequestration. It
will mean across-the-board cuts in a host of programs, including
educational programs, voc rehab. Ironically, it will increase student
loan origination fees.
Now I am not criticizing the group here that put this together. I am
criticizing the way the House is run. We should have had well before
now a budget resolution. We have a process by which these decisions are
not made one by one, piecemeal. They are made in a comprehensive
context where we have to identify the offsets, identify the tradeoffs.
When we want to increase one thing, we have got to decrease something
else. We have not done that.
The most egregious violation of it was the BESTEA bill, the
transportation bill that we had on the floor just a few weeks ago. That
particular bill will increase spending by $35 billion over and above
what we provided in the BBA. This is just another illustration of what
happens when we do not have a budget agreement, when we do not have a
budget resolution.
The proper procedure would be to send this bill back to the committee
and require maybe not this group but some group to identify the offsets
better than the offsets that have been identified here. I know that is
not going to happen.
When the bill comes up, I am going to vote for it myself. But I could
not let the bill come to the floor, could not let it be considered in
this manner, could not let this routine incantation that all points of
order are waived be made without raising the concern of the Committee
on the Budget, my own personal concern that we are deviating from the
disciplines that have brought us to a balanced budget for the first
time in 30 years, and we are going to have a real pileup in September
unless we get under way with the budget resolution in the process that
we duly adopted.
Mr. HASTINGS of Washington. Mr. Speaker, I yield 2\1/2\ minutes to
the gentleman from Pennsylvania (Mr. Goodling) the chairman of the
Committee on Education and the Workforce.
Mr. GOODLING. Mr. Speaker, I thank the gentleman for yielding the
time to me.
First, I would like to say that I wish the previous speaker would
have been sitting on our committee when we were marking up. I sure
could have used him. Because we had amendment after amendment after
amendment, and every time I asked where is the offset, they said there
was not any. Now, fortunately, we were able to defeat them in a
bipartisan way, but, otherwise, we had a serious problem.
I think it is important to point out that we have asked the lending
institutions to reduce yields by 30 basis points that they would
normally expect to receive, so it is not a situation where
[[Page H2513]]
somebody came and gave them more. We asked them to reduce yields by 30
points, and we did that to bring about an agreement with the students.
And for the gentleman from California (Mr. McKeon) and the gentleman
from Michigan (Mr. Kildee) I will not be so informal. They worked for a
year and a half to bring about this agreement between the students and
the lending institutions.
The scoring has been a problem. There is no question about it. At one
point, they were told that we have about $4 billion to $6 billion in
savings. We were really swimming in good water. We had all sorts of
money to spend. Next time they scored it, they used a different scoring
method, and all of a sudden we are a billion dollars short.
I would also tell the previous gentleman we have come up with at
least half of that, and I believe that the Committee on the Budget is
able to come up with the other half.
So, again, it has been a very difficult thing, but we know that we
must have it on the President's desk by May 15, unless my colleagues
want to have total, a total disaster. We will have parents, we will
have students, we will have schools sitting out there wondering are
their loans? When will we find out?
So we just positively have to move the legislation, and I cannot give
the two congressmen I mentioned enough credit for the amount of hours
that they have spent and the staffs have spent to bring together the
students and the lending institutions.
Above all, the students do not want to see their opportunity taken
away from them simply because we in the Congress cannot come up with an
agreement that will save the private sector as far as their ability to
provide 70 percent of all Federal student loans. So I would hope that
we can eliminate an awful lot of the amendments that are coming up
because that could really drive us up the wall and then we will really
have a scoring problem and, at the same time, get this legislation to
the President quickly.
Mr. HALL of Ohio. Mr. Speaker, I yield 3 minutes to the gentleman
from Maryland (Mr. Hoyer).
Mr. HOYER. Mr. Speaker, I thank the gentleman for yielding this time
to me, my friend from Ohio.
Mr. Speaker, I rise today in support of this rule and in support of
this bill. However, I must say that I share the views of the gentleman
from South Carolina (Mr. Spratt) the ranking member of the Committee on
the Budget. I think his concerns are absolutely accurate; but, like
him, I will vote for this bill and hope that we can work out some of
the problems as it goes through.
I am pleased that the committee was able to work together in a
bipartisan fashion to draft this bill. However, Mr. Speaker, I am
extremely concerned that the authorization for the National Board for
Professional Teaching Standards was eliminated during markup of the
bill.
{time} 1915
I have talked to some of the staff of the committee on our side, and
that was not our intent, and my understanding is we are not supportive
of that, although it is a small component of a large bill.
As education is one of our Nation's highest priorities, Mr. Speaker,
we need to focus on improving the quality of the teachers in our
schools. National board certification is, in my opinion, an important
way to achieve this goal. Both the President and a bipartisan group of
our Nation's Governors support the good work that the national board is
doing to improve the quality of our teachers.
Recently, Mr. Speaker, the Maryland Legislature passed a bill
creating a pilot program to encourage up to 45 teachers to seek
national board certification. In the city of Bowie, Maryland, just down
the road, the City Council approved a $20,000 set-aside in its 1997-
1998 budget for initiatives to enhance the teaching skills and
instructional environment in Bowie schools, including national board
certification.
Mr. Speaker, as President Clinton said last Friday, and I quote, now
is no time to walk away from our commitment to public education. The
National Board for Professional Teaching Standards, the President said,
should not be a partisan issue, it should not be an ideological issue,
it ought to be purely and simply what we can do to help you do what is
best for our children and their future, close quote.
Mr. Speaker, as I said, I will support this bill, but I am very, very
hopeful that the National Board for Professional Teaching Standards is
included in the Senate bill and will be included in the conference. I
will be talking to my good friend, the gentleman from Missouri (Mr.
Clay), the chairman-in-exile of this committee, and the gentleman from
Pennsylvania (Mr. Goodling), chairman of this committee, in working
toward that end.
I think this is a critical component of our overall effort to upgrade
the status of teaching, and, therefore, the quality of education in our
schools. I would hope that we could come to an agreement between the
two bodies on this, and I look forward to working toward that end.
Mr. HASTINGS of Washington. Mr. Speaker, I yield 3 minutes to the
gentleman from Texas (Mr. Paul).
(Mr. PAUL asked and was given permission to revise and extend his
remarks.)
Mr. PAUL. Mr. Speaker, I thank the gentleman for yielding me this
time.
I rise in support of this rule. It is obviously a very fair rule
because I am allowed to offer an amendment later on, so I am pleased to
be able to vote for this rule. I have an amendment that I am going to
offer in Title I which will be designated so that the Social Security
number cannot be used for the electronic personal identifier for any of
the programs in this educational bill.
The American people have become very worried about how often the
Social Security number is being used as a national identification
number, and we are working quickly toward a time where we have a
national identification card. We certainly have abused the Social
Security number as being the number. It was never intended that way.
That is not what was intended when the Social Security was started that
this number would be a universal number for everything.
In 1974, it was stated rather explicitly that the Social Security
number should not be used for programs like this, and I would like to
just quote the Privacy Act of 1974: ``It shall be unlawful for any
Federal, State or local government agency to deny any individual any
right, benefit or privilege provided by law because of such
individual's refusal to disclose his Social Security number.''
I think this is a good idea, because today we are very much aware of
the fact that if a company, if a loaning company, or if one is going
into a store to buy something, and they get one's name and one's Social
Security number, one knows that they can call up more information about
somebody than they know about themselves. I think this is a serious
threat to the privacy of every American citizen, and we should be
cautious about using the Social Security number. It is being used all
the time.
Mr. Speaker, prior to coming to this Congress, I was an obstetrician
delivering babies, and babies cannot leave the hospital these days
without a Social Security number. So they are born, get a Social
Security number, they do not leave the hospital without it, and do my
colleagues know that one cannot have a death certificate without a
Social Security number? They are everyplace. It is an intrusion on our
privacy. We do not need to use a Social Security number.
When I was in the Air Force, we used to have an identification
number, but now, today, it is the Social Security number. Not too many
years ago a law was passed here in the Congress that mandates that each
State licensing agent for our automobile says that one has to have a
Social Security number. So now they will be cross-checking with Social
Security number and all of our driver's license numbers.
We are losing our privacy in this country. The American people know
it. We do not need this number to be used in this program for it to be
successful, and we should move very cautiously, and I hope I can get
support for this amendment so that we do not use the Social Security
number as the electronic personal identifier.
Mr. HALL of Ohio. Mr. Speaker, I yield 2 minutes to the gentlewoman
from New York (Mrs. Lowey).
[[Page H2514]]
(Mrs. LOWEY asked and was given permission to revise and extend her
remarks.)
Mrs. LOWEY. Mr. Speaker, I thank the gentleman for yielding me this
time.
Mr. Speaker, I rise to offer my strong support for this rule and the
bipartisan amendments to the Higher Education Act. Education is
society's great equalizer. It enables Americans to participate in
democracy and pursue the American dream.
We all recognize that a college education is as necessary today as a
high school education was just a generation ago. In 1982, a worker with
a college degree earned 40 percent more than a worker without one.
Today, college graduates earn 75 percent more.
A recent national survey showed that 9 in 10 Americans believe every
interested qualified student should have the opportunity to attend
college. My colleagues, that is a clear mandate for a strong higher
education bill, and I believe such a measure is before us today.
Just briefly, it increases Pell Grants by 50 percent next year and
provides additional increases in the future. It preserves the Perkins
Loan, the State Student Incentive Grant, the Supplemental Education
Opportunity Grant programs, all important sources of financial aid. It
will encourage more disadvantaged students to pursue higher education
by strengthening TRIO, continuing my National Early Intervention
Scholarships, and establishing a new High Hopes program that will work
with low-income middle schools and community organizations.
The new campus-based child care program will help young mothers
attend college and become self-sufficient. The new loan forgiveness
program will help fill America's growing need for qualified teachers.
The bill will also help make college campuses safer and provide
students and their families with the information they need and deserve
about crime on campus.
Of course, this bill is not perfect. It ends Federal support for the
fine work of the National Board of Professional Teaching Standards and
fails to include, as the Senate bill does, a Fair Play Act to encourage
colleges to satisfy the interests and needs of young female athletes.
However, despite some deficiencies, this is a strong bipartisan bill,
and I urge my colleagues to support it.
Mr. HASTINGS of Washington. Mr. Speaker, how much time remains on
each side?
The SPEAKER pro tempore (Mr. Gutknecht). The gentleman from
Washington (Mr. Hastings) has 14\1/2\ minutes, and the gentleman from
Ohio (Mr. Hall) has 18\1/2\ minutes.
Mr. HASTINGS of Washington. Mr. Speaker, I yield 2 minutes to the
gentleman from California (Mr. McKeon).
Mr. McKEON. Mr. Speaker, I thank the gentleman for yielding me this
time.
I rise in strong support of this rule and the bill H.R. 6, the Higher
Education Amendments. First I would like to thank the gentleman from
New York (Mr. Solomon), chairman of the Committee on Rules, for his
help in crafting this rule. Through his efforts and those on the
committee, we have been able to bring this bill to the floor in a
timely and expeditious manner. He definitely will be missed when he
retires.
This rule will govern floor consideration of H.R. 6, which is one of
the most important education bills that this Congress will consider
this year. As many of my colleagues know, we are facing a July 1
deadline that creates a crisis in the student loan program. H.R. 6
contains a bipartisan compromise that fixes the problem, maintains the
viability of the private loan program, and provides students with the
lowest interest rate in 17 years.
So through the swift adoption of this rule and passage of H.R. 6, we
will move one step closer to meeting that deadline. Therefore, I urge
all of my colleagues to support the rule and vote in favor of H.R. 6,
the Higher Education Amendments of 1998.
Mr. HALL of Ohio. Mr. Speaker, I yield 3 minutes to the gentleman
from Guam (Mr. Underwood).
Mr. UNDERWOOD. Mr. Speaker, I thank my friend from Ohio for yielding
me this time.
I rise in support of the rule on H.R. 6. I know that many of the
members of this committee have worked hard on producing a bill which
will increase the affordability for our institutions of higher
education and advance social mobility in our country. As a retired
educator and higher education administrator, we know that institutions
of higher education advance knowledge, provide community service, and
serve as the basis for social and economic mobility for millions of our
young people who come from backgrounds with few social advantages and
economic resources.
Higher education institutions in our country are marked by their
capacity to provide this opportunity which is vastly different than
institutions in other countries. Higher education is the strength of
our society and the engine of progress and opportunity, and this bill,
as written, continues and ratifies this understanding of postsecondary
institutions and deserves our support.
Mr. Speaker, I would like to draw attention to the especially unique
provisions that it has on Hispanic-serving institutions and the work of
the gentleman from Texas (Mr. Hinojosa) in that regard. I would also
like to draw attention to a provision which allows higher education
institutions in the territories to compete for grants with a little bit
more flexibility. I would like to really draw attention to the fact
that it is making higher education affordable for millions of young
people around the country, and the increase in Pell Grants. I know
there is a problem with the Pell Grant provision, and I have spoken
with the leadership on this issue.
The bill, as currently written, says that students from the
Micronesian Islands, the Republic of the Marshall Islands, and the
Republic of Palau and the Federated States of Micronesia are not
eligible for Pell Grants except if they go to institutions in those
areas and Guam only. I feel very strongly that this is a violation of
the compacts of free association and will attempt to limit educational
opportunities for these people.
The FAS territories of the Pacific islands was an American-
administered area of the Pacific under which some compacts were
arranged in order to help to facilitate the growth of these areas, and
for one reason or another, H.R. 6 does not take this into account. I
trust that we can work towards a version of the bill on this particular
provision which will restore the benefits of Pell Grants for the
Micronesian students not only in Guam, and not only on their own home
islands, but throughout the 50 States.
Again, Mr. Speaker, this bill deserves our support. It is a good
bill, and it is a bill that is the work of very strong bipartisan
support and a good and healthy understanding of the role of
postsecondary institutions in our society.
Mr. HASTINGS of Washington. Mr. Speaker, I yield 2 minutes to the
gentlewoman from New Jersey (Mrs. Roukema).
(Mrs. ROUKEMA asked and was given permission to revise and extend her
remarks.)
Mrs. ROUKEMA. Mr. Speaker, I thank the gentleman for yielding me this
time.
Mr. Speaker, I rise in strong support of both the rule and the bill.
I think this bill is one of the most significant bills that we will
probably pass in this Congress, and these are the issues that count
with the American people, without a doubt.
To be competitive in the global economy, we need to provide our youth
with the means to better their education. This is the essence of the
American dream.
Now, I know that there are going to be amendments during this
process, and I do believe that there will be constructive colloquies
and constructive dialogue and debates on those amendments, but this
bill is fundamentally a very strong bill.
I do want to point out that one of the issues that has been
questioned is the resolution here of the potential crisis of the
interest rate issue on this bill. The proposal in this legislation, I
believe, is the best that we could have come up with, and it will help
students while saving the program for higher education through the
private banking system.
Now, I am one of the longtime members of the Subcommittee on
Postsecondary Education, Training and
[[Page H2515]]
Life-Long Learning, but I have another hat. I am the chairwoman of the
Subcommittee on Financial Institutions and Consumer Credit, and perhaps
from that point of view I understand both sides of this issue.
This legislative fix, so to speak, is necessary, absolutely
necessary, not only to protect the loans for the students at reasonable
low interest rates, but also to ensure that the banks will not be
forced to leave the market.
{time} 1930
I think this is the best possible compromise that we could have
reached. It works for the students and their families and it works for
the private sector, the banks who provide the loans at low interest
rates.
Mr. HALL of Ohio. Mr. Speaker, I yield 2 minutes to the gentleman
from New Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his
remarks.)
Mr. ANDREWS. Mr. Speaker, I thank the gentleman from Ohio (Mr. Hall)
for yielding me this time.
Mr. Speaker, I rise in support of the rule, and at a time when the
people who cover politics are obsessed with what is scandalous and
divisive, we have before us tonight something that is solid and
unifying.
Mr. Speaker, I want to commend the leaders of our committee, the
gentleman from Pennsylvania (Chairman Goodling), the gentleman from
California (Chairman McKeon), the gentleman from Missouri (Mr. Clay)
and the gentleman from Michigan (Mr. Kildee) for all the time and
effort they have put into this bill and all the very fine work that
they have done.
I also want to commend the Committee on Rules for putting before us a
rule that lets anyone with any idea have the right to come to the floor
and express his or her idea. That is why I support the rule.
Mr. Speaker, I do want to associate myself, however, with the remarks
of the gentleman from South Carolina (Mr. Spratt), the ranking
Democratic member of the Committee on the Budget, with respect to the
cost and payment mechanism for the interest rate compromise that has
been referred to earlier.
First of all, we do not really know what the cost is. We have an
estimate from the Office of Management and Budget that tells us it will
be net in excess of $2 billion. We have another estimate from the
Congressional Budget Office which tells us that even with the offsets
that have been identified, it is in the neighborhood of half a billion
dollars.
It is a very serious consideration that we are moving forward on this
bill without identifying where the money is going to come from. It is
sort of the-check-is-in-the-mail theory of budgeting that got us into
this mess in the first place.
I agree with those who say that we should move forward this evening,
and I will vote with them to do so. But I also want to sound a note of
caution that as we move this bill out of the House of Representatives
and into the conference committee, I think it is imperative that we lay
before the Members of this body and our constituents, the American
people, the specifics of how much this compromise will cost the
taxpayers and where the money is going to come from to pay for it.
I believe it would be a disaster to fatten the profits of the banking
industry at the expense of other student aid programs or other
mandatory programs. We should be watching that as the time goes on.
Mr. HASTINGS of Washington. Mr. Speaker, I reserve the balance of my
time.
Mr. HALL of Ohio. Mr. Speaker, I have no more speakers. I would urge
a ``yes'' vote on the rule, and I will not be calling for a vote. I
think it is a good bipartisan rule, and I yield back the balance of my
time.
Mr. HASTINGS of Washington. Mr. Speaker, I want to urge my colleagues
to support this rule, and the underlying bill. This is clearly a
product that is bipartisan in nature and that is something I think we
can be proud of.
Mr. Speaker, I yield back the balance of my time, and I move the
previous question on the resolution.
The previous question was ordered.
The resolution was agreed to.
A motion to reconsider was laid on the table.
The SPEAKER pro tempore (Mr. Hastings of Washington). Pursuant to
House Resolution 411 and rule XXIII, the Chair declares the House in
the Committee of the Whole House on the State of the Union for the
consideration of the bill, H.R. 6.
{time} 1934
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 6) to extend the authorization of programs under the Higher
Education Act of 1965, and for other purposes, with Mr. Gutknecht in
the chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered as having
been read the first time.
Under the rule, the gentleman from Pennsylvania (Mr. Goodling) and
the gentleman from Missouri (Mr. Clay) each will control 30 minutes.
The Chair recognizes the gentleman from Pennsylvania (Mr. Goodling).
Mr. GOODLING. Mr. Chairman, I yield myself 5 minutes.
Mr. Chairman, I rise today in support of H.R. 6, the Higher Education
Amendments of 1998. Considering H.R. 6 today, the House will complete a
bipartisan process that began in the subcommittee chaired by the
gentleman from California (Mr. McKeon) well over a year ago.
This legislation will benefit millions of students across the country
in their pursuit of a higher education. The bill will improve programs
such as Work-Study, Pell grant, TRIO, and student loans that help
millions of students pay for college.
We will do a number of important things here today. However, none may
be as important as our efforts to keep student loans available for all
students. As all of my colleagues know, we have been struggling for the
past year with the student loan interest rate issue that is the direct
result of the Student Loan Reform Act of 1993. That act changed the
index for establishing interest rates on these loans.
Prior to the Student Loan Reform Act, interest rates had always been
tied to 91-day Treasury bills. However, as part of the changes
associated with the creation of the Federal Direct Student Loan
program, the index for establishing interest rates changed to one based
on the 10-year Treasury bond. This scheduled rate change is serious and
has the potential to disrupt the Federal Family Education Loan Program
which provides nearly 70 percent of this country's Federal student
loans.
As a parent I am keenly aware of the burden being placed on our youth
by student loan debt. I am personally committed to ensuring that the
interest rate on Federal student loans is kept as low as possible.
However, I also realize that there is a point at which the lenders will
get out of the program. That point is reached when their return on
making these loans falls short of the return they could make by
investing elsewhere.
Under the bill we are considering today, students will receive
historically low interest rates, the lowest in 17 years. The rates
students pay on new loans will drop from the current rate of 8.25 down
to 7.43 during the repayment period. At the same time, the amount the
lenders are paid will be reduced by 30 basis points which will, I
believe, ensure uninterrupted access to private capital for our
Nation's students.
The chairman of the Subcommittee on Postsecondary Education, Training
and Life-Long Learning, the gentleman from California (Mr. McKeon) and
the ranking member of that subcommittee, the gentleman from Michigan
(Mr. Kildee) have worked very hard to find a solution to the crisis.
That solution is contained in this legislation.
Throughout this difficult process, the gentleman from California
(Chairman McKeon) and the gentleman from Michigan (Mr. Kildee) never
forgot the interests of the students. They never gave up when
negotiations broke down. I know that the ranking member of the
committee, the gentleman from Missouri (Mr. Clay) and the rest of the
members of the committee are grateful for their efforts in resolving
the issue.
Mr. Chairman, I especially want to thank the Speaker of the House,
the gentleman from Georgia (Mr. Gingrich), the gentleman from Texas
(Mr. Armey), the majority leader, as well as
[[Page H2516]]
the gentleman from Ohio (Mr. Kasich) chairman of the Committee on the
Budget. Without their help, this solution would not have been possible.
All three contributed to ensuring that we could pay for this provision
which is now budget neutral without passing any of the costs on to
students.
Many in the higher education community support the proposal and have
joined me in praising the gentleman from California (Chairman McKeon)
and the gentleman from Michigan (Mr. Kildee) for their leadership. The
major student groups have described the proposal as, and I quote, ``A
realistic, fair, and even-handed compromise that protects students'
need for lower borrower rates.'' The American Council on Education and
10 other major higher education groups representing over 3,600 colleges
and universities praised the fact that the proposal ``ensures the
continued availability of capital in the guaranteed student loan
program.''
Mr. Chairman, for the people back home, I hope they would notice that
I am not quoting anything that the lending institutions or the lending
organizations have had to say about this. Obviously, they are not
nearly as pleased.
I continue to welcome the help of everyone who is willing to work in
good faith to get the problem solved. I thank those who have already
shown a willingness to seek common ground in order to ensure that
student loans remain both inexpensive and available.
But, Mr. Chairman, I am sorry to say that despite the bipartisan
example set by the leaders on both sides of this committee, there are
those who would continue to play politics with this issue. A high-
ranking official at the Department of Education recently put out a
press release about our bipartisan solution stressing that it
recognizes the ``need to protect students from banks.''
Now, if there is anything that students need to be protected from, it
is the high cost of getting an education and the quality of service
they get from the bureaucracy at the Department. This bill scores high
on both counts: It helps make college more affordable and it simplifies
the student aid delivery system.
The committee is proud of the accomplishments made to date in making
college affordable for all students. Since we have been in charge, for
example, Pell grants and College Work-Study are funded at all-time
highs, while provisions in the Taxpayer Relief Act created education
IRAs and other tax credits to help low- and middle-income students
obtain a postsecondary education. The legislation we are considering
today will build on these important achievements by continuing the
important programs that serve students well and by reforming burdensome
requirements to best meet the needs of students, families, and colleges
across the country.
Mr. Chairman, I do want to caution all of my colleagues to please be
very, very careful about their ambition to add all sorts of things to
this legislation, because they could kill the wonderful work that the
subcommittee and then eventually the full committee has done.
Mr. Chairman, we have also made significant changes to the current
need analysis formula in order to address concerns raised by many
students and families about the need to encourage students to work and
save for their education. The bill increases the amount of money that
students may earn before it impacts their eligibility for financial
aid. By doing this, we are encouraging students to work and save for
college.
It also combines the assets of a student and his or her parents when
calculating the ability of the family to contribute towards college.
The current formula treats that assets of parents and students
differently and separately as though they are not part of the same
family. We are changing this provisions so the formula truly considers
the ability of the family to pay for college.
The legislation we will consider today will also improve service to
students. It addresses the need to reduce the administrative costs
associated with the processing, delivery, and monitoring of the Federal
financial aid programs. It gives the Secretary of Education the tools
he needs to bring the Department into the 21st Century.
Specifically, the Department will be required to put in place a
Performance-Based Organization (PBO) to run the day-to-day operations
of the student financial aid delivery system. Chairman McKeon and
Representative Kildee introduced the PBO bill last fall with the full
support of the students and the rest of the higher education community.
I am glad to see that it has been included in our final bill.
A more stable and more efficient delivery system coupled with
regulatory reform should result in reduced administrative costs for the
Department as well as for schools, lenders, guaranty agencies, and
other program participants who must interact with the Department's
delivery system. This is particularly important since we are forcing
lenders and guaranty agencies to operate with less revenue and we
expect colleges to keep their costs down for students. The Department
needs to contribute to these efforts by operating more efficiently so
others can do the same.
I'd also like to note some provisions of H.R. 6 that were offered in
Committee by Representatives McKeon and Castle to make college
affordable. The McKeon--Castle amendment will implement a number of the
recommendations of the Commission on the Cost of Higher Education. This
is important, because if we are truly interested in making sure that
all Americans can afford a quality postsecondary education, and if we
are truly interested in reducing the debt burden placed on our
students, then the single most important thing we can do is to get
colleges to lower their prices. These provisions are a needed first
step in that direction.
In addition to making college more affordable and simplifying the
delivery system, we have fulfilled our promise to improve the quality
of higher education. H.R. 6 will help create safer campuses where our
nation's students can learn. It improves the information made available
to students and families about crimes occurring on college campuses.
And although no one can guarantee safety, we are making sure that
students have the information they need to protect themselves from
becoming victims of crime. We are also ensuring families have accurate
information about crime on college campuses so they can make informed
choices when selecting a college for their children.
H.R. 6 also provides strong incentives for students to stay off
drugs. An amendment offered by the gentleman from Indiana, Mr. Souder,
and accepted in Committee will eliminate student aid eligibility for
students convicted of drug offenses. This provision is based on an
amendment offered by Mr. Solomon in 1992, which was accepted by the
House. Unfortunately, the Solomon amendment was later dropped in
conference. If we want to ensure safety on our Nation's campuses, it is
vital to keep them drug-free.
H.R. 6 also focuses on improving teacher quality so that students
will have high quality teachers trained in the subject areas in which
they teach. It is alarming to find that nearly one-third of all high
school math teachers and over one fifth of all high school English
teachers in this country have neither majored Nor minored in the
subjects in which they teach. Given this fact, it should come as no
surprise that American twelfth graders recently scored so low on the
TIMMS international math and science test.
Under this legislation, States will be encouraged to undertake a wide
variety of efforts to improve the quality and ability of classroom
teachers--beginning with the reform of institutions at which many of
these teachers are prepared.
Specifically, this bill amends the Higher Education Act by replacing
16 unfunded teacher preparation programs with a single competitive
block grant, which I'm pleased to mention, was developed through a
bipartisan process within our Committee.
Using funds from this competitive block grant, Governors will have
significant flexibility in which activities to carry out. Specifically,
such efforts may include strengthening State teacher certification
procedures to better reflect current and future teacher's academic
knowledge of the subjects they teach; reforming schools of education
and holding them accountable for producing quality teachers; creating
and/or expanding programs which provide alternative routes to teacher
certification; undertaking teacher recruitment efforts; and
implementing initiatives to expeditiously remove incompetent or
unqualified teachers.
To ensure that States receiving these funds are making progress to
improve teacher quality, this legislation also makes future grants to
States contingent upon meeting specific goals such as being able to
demonstrate an increased percentage of teachers teaching in subject
areas and an increase in ``first-time'' certification and licensure
rates among education school graduates.
I would like to especially highlight several provisions that were
worked out in a bipartisan fashion which are now part of the manager's
package of amendments.
They include: an increased emphasis on partnerships consisting of the
Governor of a participating State, exemplary schools of education and
local educational agencies; an increased focus, with respect to the
teacher recruitment provisions, on schools most in need
[[Page H2517]]
of quality teachers, such as in poor urban and rural areas; and a
clarification that the Governor shall be the grant recipient except in
those cases where State law or constitution dictates that another
individual is responsible for education.
I look forward to the support of my colleagues for this compromise so
that we can help States really reform teacher preparation programs and
provide high quality teachers to our students.
I would also like to thank Representative Graham for his efforts in
working with Representative Kildee, in crafting a truly bipartisan
initiative under this legislation which provides loan forgiveness for
prospective teachers who agree to teach in high poverty urban or rural
schools.
In addition to the improvements we will make in the preparation of
teachers, there are a host of other changes that will improve
educational quality and opportunities far beyond the college campus.
Today, the House will increase opportunities for all Americans to get
the education they need through the expanded use of distance learning
techniques and new technologies. Today we will also encourage students
to become involved in their communities and to help children learn to
read by ensuring that colleges use more of the Work-Study dollars to
fund these initiatives.
Finally, let me just say that that the legislation before us today is
one of the most important things that we in the 105th Congress will do
this year. It will ensure that every American has access to a quality
postsecondary education at an affordable price. This is a bipartisan
bill that makes much needed reforms to help students, parents, and
schools. I urge all of my colleagues to support it, and I urge a
``yes'' vote on final passage.
Mr. CLAY. Mr. Chairman, I yield myself 5 minutes.
Mr. Chairman, I want to commend the gentleman from Michigan (Mr.
Kildee) and the gentleman from California (Mr. McKeon) for their great
bipartisan teamwork on this very important higher education initiative.
They worked for better than a year to fashion legislation that I
believe strengthens our country's commitment to higher education.
I also want to commend the gentleman from Pennsylvania (Chairman
Goodling) and all the committee members who made valuable contributions
to the higher education reauthorization effort. I am pleased to give my
enthusiastic support for this bill.
The bill strengthens student aid financing by significantly reducing
student loan interest rates, increasing Pell Grants and improving the
calculations of benefits for independent and dependent students. The
bill adopts a number of measures that enhance support for minority and
disadvantaged students by strengthening the TRIO program and other
programs supporting historically black colleges and universities,
Hispanic-serving institutions and tribally controlled colleges.
Mr. Chairman, I am also pleased that the committee adopted President
Clinton's High Hopes program. And I commend the gentleman from
Pennsylvania (Mr. Fattah) for his successful advocacy of this important
initiative.
Mr. Chairman, the bill also includes a number of provisions aimed at
improving services to students on campus such as enhanced campus crime
reporting, a new campus-based child care program and streamlining
financial aid procedures.
I am also pleased that teacher education and recruitment received a
boost in this bill by the adoption of a loan forgiveness program for
new teachers and strong teaching training partnerships. As we continue
to work on this bipartisan bill, I hope that we can continue our
efforts to resolve issues regarding loan consolidation interest rates,
guarantee agencies, and the National Board for Teacher Certification.
Finally, Mr. Chairman, I would like to express my hope that we will
unanimously reject attempts to undermine this bipartisan bill through
the introduction of a divisive anti-affirmative action amendment. The
Riggs amendment has received universal condemnation among all those who
care deeply about expanding educational opportunities for all
Americans. Students, colleges, civil rights groups, editorial boards
and women's groups across this country have urged us to reject this
giant leap backwards.
Last night, Secretary Riley and Attorney General Reno sent an urgent
message to Congress expressing their strongest possible opposition to
this very dangerous amendment. They would urge the President to veto
H.R. 6 if the Riggs amendment is adopted. I hope that all Members will
reject this reckless amendment that is designed to torpedo passage of
the Higher Education Reauthorization Act.
Mr. Chairman, I reserve the balance of my time.
Mr. GOODLING. Mr. Chairman, I yield such time as he may consume to
the gentleman from California (Mr. McKeon), the subcommittee chairman
who did such a great job in putting this legislation together.
Mr. McKEON. Mr. Chairman, I thank the gentleman from Pennsylvania
(Mr. Goodling) for yielding me this time.
Mr. Chairman, I rise today in support of H.R. 6, the Higher Education
Amendments of 1998. Today we are assembled to consider the
reauthorization of the Higher Education Act of 1965. I want to thank my
fellow members of the Committee on Education and the Workforce for the
bipartisan way in which they have worked to get us to this point. I
especially want to thank the gentleman from Pennsylvania (Mr.
Goodling), chairman of the committee, for his support and leadership on
this important legislation.
Mr. Chairman, throughout the process he has kept us focused on the
goal of improving our financial aid system for students and parents.
Whenever a particularly difficult problem would arise he would not give
up. To the contrary, he would confront it head on and forge a
consensus.
{time} 1945
The gentleman from Missouri (Mr. Clay), the ranking member of the
committee, and the gentleman from Michigan (Mr. Kildee), the ranking
member of the subcommittee, also deserve a great deal of thanks for all
of their dedication and hard work. For more than a year, we have worked
closely together gathering representations from around the country to
improve the way we provide support for higher education. The result is
the legislation before us today.
I want to begin by noting that this legislation, including the
interest rate fix that is contained in it, is paid for. In fact,
without the interest rate fix, H.R. 6 saves roughly $70 million in
mandatory spending. However, due to the emergency nature of the
interest rate problem, it became clear that an immediate fix is needed
and that any fix would cost money.
Under H.R. 6, the interest rate fix was paid for in a plan developed
by the leadership which required half of the savings to come from the
committee and the rest to be made up in offsets supplied by the
Committee on the Budget.
I want to personally thank Speaker Gingrich, the gentleman from Texas
(Mr. Armey), the majority leader, and the gentleman from Ohio (Mr.
Kasich), chairman of the Committee on the Budget for their hard work
and support for making this solution possible.
The legislation we are considering will be one of the most important
things Congress will do for students and families this year. It will
bring us closer to my goal of ensuring that every American who wants a
quality education at an affordable price will be able to get it.
As my colleagues know, the committee began this process with no
predetermined changes in mind. We requested and received
recommendations for change from individuals across the country and from
more than 70 organizations representing schools, students, and other
participants in our financial aid programs. We spent the better part of
last year traveling around the country, holding hearings to fully
understand what changes are needed to better serve our Nation's college
students.
We have developed this legislation through open and bipartisan
discussions with the higher education community, students, parents, and
our colleagues in the 105th Congress.
Throughout this process, three compelling principles have guided us:
making college affordable, simplifying the student aid system, and
stressing academic quality for students.
We have kept true to these three principles throughout the process.
If we continue to do so as we move forward, the end result will be a
new and improved Higher Education Act establishing quality Federal
student aid policy for the years ahead.
I want to focus my remarks today on a few very important areas.
First, the
[[Page H2518]]
legislation before us today will simplify the student aid system. H.R.
6 will eliminate 45 unfunded programs, including the State
Postsecondary Review Entities, or SPREs, and terminate 11 studies and
commissions.
It will bring our student financial aid delivery system into the next
century. It will create a performance-based organization within the
Department of Education focused on providing quality service to
students and parents.
For the first time, the day-to-day management of our student aid
programs will be in the hands of someone with real-world experience and
financial services. This individual will be given the hiring and
contracting flexibility necessary to get results and will be paid based
on performance.
For the first time, the Department's student financial aid systems
will be run like a business, adopting the best practices from the
private sector and focusing on bottom-line results. This performance-
based organization will manage the Department's computer systems and
ensure that the Department of Education does not waste money due to
poor contract management or duplication.
The chief operating officer hired to manage this organization will
simplify the process of applying for financial aid for students and
their families and integrate student financial aid systems to improve
efficiency, save money, and prevent fraud and abuse in the programs.
This bill also requires the Secretary to work with the higher
education community to adopt common and open electronic data standards
for important parts of the delivery system. By adopting these common
standards, we can greatly simplify the student aid system by
eliminating paper forms and unnecessary steps in the process.
Students and their families deserve a modern student aid system that
meets their needs. This legislation will give the Secretary the tools
he needs to provide it.
Additionally, the legislation before us rationalizes the guaranty
agency system and makes important changes to the incentives we give
guaranty agencies. It will change the guaranty agency financing
structure to give these entities the flexibility they need if we expect
them to use the largest private sector business practices, operate more
efficiently, and ensure program integrity.
These changes will increase guaranty agencies incentives to become
more efficient in their operations by designating payments for services
as the property of the guaranty agency; increase their financial risk
with respect to defaults in order to encourage stronger default
prevention efforts; restructure the payments made to guaranty agencies
in order to maintain a strong guaranteed loan program; and, most
importantly, provide real savings to the Federal Government.
Some will say that we should have gone further in our restructuring
initiative. These are the same individuals who would have us dismantle
the guaranty agencies and turn them into contractors for the Federal
Government. It is clear to me that this would be a mistake.
Throughout the history of the FFEL program, guaranty agencies have
played a vital role in protecting the Federal fiscal interest while
ensuring that billions of dollars in private capital remained available
to needy students.
Given the shortfalls we have seen in the Department's contracting
abilities, shortfalls which have caused unacceptable delays in the
processing of student financial aid forms and a complete shutdown of
the direct loan consolidation process, it is clear that the approach
taken in H.R. 6 is the right one.
Second, this legislation continues and strengthens those programs
that have served students well, making college more affordable.
One of the biggest challenges we faced during this process was saving
the student loan program. As my colleagues know, the scheduled change
in the interest rate for student loans jeopardized access to private
capital for students.
Committee members faced the challenge of finding a solution that
would ensure that student loans remain available to all students and
their families, while also ensuring that students receive a real
reduction in their interest rates. This was no easy task.
After working extensively with all parties involved, the student
groups, the higher education and lending communities and Republican and
Democratic members of the committee, it became clear that there was a
consensus in three key areas.
First, everyone agreed that tying the interest rate to a long-term
instrument like the 10-year Treasury bond would not work. Second, no
one had any faith that the direct loan program could provide a viable
alternative in the event that private loan capital became unavailable.
Third, as our subcommittee hearing on March 5 showed, the interest
rates for lenders proposed by the administration were too low to ensure
lender participation.
In the end, we found a solution that I hope fixes the interest rate
problem. The solution contained in this legislation will ensure that
student loans will remain available for all students and that students
will receive the lowest interest rates in 17 years. While no one may be
completely happy with this solution, I believe it will ensure that
every student will continue to have access to student loans at the most
affordable rate possible.
Finally, H.R. 6 contains provisions offered in the committee by
myself and the gentleman from Delaware (Mr. Castle) that implements a
number of the recommendations of the National Commission on the Cost of
Higher Education.
Specifically, this legislation will provide students and parents with
better information to keep colleges accountable and higher education
affordable by requiring the Secretary of Education to work with
institutions to develop a clear set of standards for reporting college
costs and prices.
Under our bill, the Secretary of Education will redesign the
collection of Federal base information on college costs and prices to
make it more useful and timely to the public.
This legislation will allow students to make more informed choices
about the level of education they pursue by requiring the Secretary of
Education to collect separate data on the cost and price of both
undergraduate and graduate education.
It will help parents and students make informed decisions about the
school they choose by requiring the Secretary of Education to make
available for all schools on a yearly basis information on tuition,
price, and the relationship between tuition increases and increases in
institutional costs.
It will also allow us to keep track of any progress made in reducing
tuitions by requiring the United States General Accounting Office to
issue a yearly report on college cost and tuition increases.
H.R. 6 will reduce the costs imposed on colleges through unnecessary
or overly burdensome Federal regulation by requiring the Secretary of
Education to undertake a thorough review of regulations regarding
student financial assistance every 2 years and, where possible, repeal,
consolidate or simplify those regulations.
The Secretary will also report to Congress any recommendations he has
with regard to legislative changes which would allow increased
regulatory simplification. This legislation will require the General
Accounting Office to report to Congress on the extent to which
unnecessary costs are being imposed on colleges and universities as a
result of holding them to the same Federal regulations that are applied
in industrial settings. I expect colleges and universities to pass on
these savings to students.
H.R. 6 will stress our commitment to keeping college affordable by
strengthening our support for innovative projects addressing issues of
productivity, efficiency, quality improvement, and cost control at
postsecondary institutions.
In addition, H.R. 6 allows colleges and universities to offer
voluntary early retirement incentives to tenured professors. This will
allow professors, at their choosing, to receive additional retirement
benefits beyond what they otherwise would have, while allowing colleges
to approve their academic programs while reducing costs. I urge my
colleagues to support these provisions as well.
Mr. Chairman, ensuring that a quality postsecondary education remains
affordable is one of the most important things we can do for our
children and for American families everywhere. If
[[Page H2519]]
we are truly interested in making sure that all Americans can afford a
quality postsecondary education and if we are truly interested in
reducing the debt burden placed on our students, then the single most
important thing we can do is to get colleges to lower their prices.
These provisions will be a needed first step in that direction.
Once again, I want to thank my colleagues for the bipartisan way in
which we have been able to work, and I look forward to our continued
efforts to improve the Nation's higher education programs. I urge my
colleagues to support H.R. 6 and to vote yes on final passage.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN. Without objection, the gentleman from Michigan (Mr.
Kildee) will control the balance of the time for the minority.
There was no objection.
Mr. KILDEE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, well over a year ago, the gentleman from California
(Mr. McKeon), the Chairman of the Subcommittee on Postsecondary
Education, Training, and Life-Long Learning, and I set out to produce a
higher education reauthorization bill that would enjoy widespread
bipartisan support. From the outset, the gentleman and I have worked
very closely together on this.
We began with the understanding that this bill was too important to
be bogged down by bipartisan differences, and we have held to that
understanding very well. It has not always been easy, and I would be
the first to admit that both of us have had to give ground and
compromise.
The result, however, is a strong piece of legislation worthy of
support by Democrats and Republicans alike. The heart and soul of this
bill are in its student aid provisions. They make up more than 90
percent of this legislation, and they constitute 75 percent of all
student aid available to help deserving Americans pay for a college
education. Without them, a college education would simply be beyond the
financial reach of millions of Americans. With them, and with a heavy
dose of hard work, students can truly make the dream of a college
education come true.
I am extremely proud of the fact that we have protected and even
strengthened important student aid programs. Next year, the
authorization level for the maximum Pell Grant will be $4,500, a strong
signal that, in Federal student aid, there should be a stronger
reliance upon grant aid and less dependence upon loans.
We have doubled the allowance for child care from $750 to $1,500. We
have increased the income protection for dependent students from $2,250
to $3,000, from $4,250 to $5,500 for single independent students, and
from $6,000 to $8,500 for married independent students.
We extend to the students the saving protection allowances that
reward parents who save for their children's college education. The
combined savings of students and their families would be protected up
to $70,000.
We believe there is an appropriate way to reward those who have saved
without penalizing those who could not. We make sure that the free
application for Federal student assistance remains free, whether in
paper or electronic form.
We also authorize this use as the application form for a loan. And,
perhaps most important, need analysis will remain focused first upon
serving those with the greatest need.
We strengthen the Trio Programs, protect the emphasis of the
Supplemental Grant Program, expand college work study to include a new
focus on family literacy, simplify the Perkins Loan Program, give the
SSIG Program a new structure and purpose, and establish a new High
Hopes Program to help young people complete a high school education and
go on to college.
For the millions who must borrow to help pay for college, we have
sought to keep the cost of borrowing down. We have accepted the
administration's proposal to set the student interest rate at the 91-
day T-bill plus 1.7 percent while the student is in school and 2.3
percent while the student is in repayment, with an overall cap of 8.25
percent. For students, this will mean the lowest interest rates in over
17 years.
We reduce the special allowance paid to lenders from T-bills plus
2\1/2\ percent to 2.2 percent while the student is in school, and from
3.1 percent to 2.8 percent while the student is in repayment.
{time} 2000
I am very encouraged that we have been able to include a limited loan
forgiveness program in this legislation. An individual who enters
teaching, remains in the profession, and teaches in a high-poverty
school now has the chance to have up to $17,750 of their Stafford Loans
forgiven.
I am also very pleased we have managed to reach an agreement that
keeps both direct lending and FFEL programs in place. In and of itself,
this is a major accomplishment that many said could not be done.
As important as the student aid provisions are, there are other
provisions of H.R. 6 that also merit our support.
In Title I we have forged a single definition of an institution of
higher education.
Prior to this, there has been one general definition and another more
specific definition for the purposes of Title IV.
We will now have one consolidated definition.
We also propose to establish within the Department of Education a
performance-based organization, which we believe will give the
Secretary the tools he needs to make sure that our student air programs
are managed in an effective and efficient manner and that, first and
foremost, they serve the students they are designed to help.
In Title II we continue the small, but effective urban community
grant program.
This has been an extremely important program in forging stronger
linkages between my home community and the University of Michigan in
Flint.
I am also encouraged that passage of the manager's amendment will
mean a significant improvement in the Title II teacher quality
enhancement provisions. This will mean authorization of a significant
program to improve the recruitment, training and professional
development of our Nation's teachers.
I am disappointed, however, that this legislation contains a
prohibition on funding for the National Board of Professional Teaching
Standards. I have long supported the excellent work done by the board.
It has undertaken the difficult and painstaking task of establishing a
set of voluntary standards for classroom teachers who want to
demonstrate high proficiency and knowledge in their chosen field. We
should be continuing our support for the board and not curtailing its
important work.
I am extremely pleased with the compromise we were able to reach in
committee to establish a new Title V to aid Hispanic-serving
institutions.
I believe the agreement we reached in this area is a solid one that
deserves the strong support of Members on both sides of the aisle.
As co-chair of the Native American Caucus, I strongly support the
tribal college provisions that are part of this legislation.
I am proud of the fact that we will have a newly authorized Title III
program specifically designed to help these institutions, and that we
will continue all currently authorized Native American higher education
programs in part B of Title IX of these amendments.
Mr. Chairman, enactment of H.R. 6 is essential if our critically
important student aid programs are not to be interrupted. Passage of
this bill is an important step to ensure the continuation of these
programs and the aid they provide to literally millions of Americans
who rely upon our Federal student aid programs to help put them through
college.
And while there are areas and provisions where we disagree, this bill
was reported out of committee by a vote of 38 to 3 with no Democrats in
opposition. As we debate H.R. 6 on the House floor, I would hope that
we might avoid action that would risk the widespread bipartisan support
this bill now merits and enjoys.
Mr. Chairman, I look forward to a lively, productive debate and
passage of a bill which we can all be proud of.
Mr. Chairman, I reserve the balance of my time.
Mr. GOODLING. Mr. Chairman, I yield such time as he may consume to
the gentleman from Wisconsin (Mr. Petri), a member of the committee.
Mr. PETRI. Mr. Chairman, I thank the distinguished chairman of the
committee for yielding me this time.
Mr. Chairman, the Higher Education Act is one of the supremely
important laws which comes before this House. It has wide ramifications
for our society
[[Page H2520]]
and for our economy. I want to commend my full and my subcommittee
chairmen and my colleagues on the Committee on Education and the
Workforce who have worked so diligently on this reauthorization, even
as I comment on one disturbing aspect of it.
In the history of guaranteed student loans, what the students paid
has always been what the banks received, with the exception of in-
school interest on subsidized loans and interest above a capped amount,
which have been paid to the banks by the government. That has been true
until now.
Under this bill, H.R. 6, for the first time this link will be broken.
The banks will receive one-half percent more interest than the student
borrowers pay, with the taxpayer paying the extra one-half point to the
banks on every loan for as long as that loan is outstanding. That is an
administrative monster as well as a huge cost increaser.
Why are we doing this? Because the banks swear on a stack of Bibles
that they will lose money if we cut them further. They will drop out of
the program and students will not get loans. Mr. Chairman, I have heard
that particular Chicken Little before.
When I first became a member of the committee 19 years ago, the banks
got 3\1/2\ percent over T-bills on these loans, and they swore then on
a stack of Bibles that if we cut them, they would drop out. So we cut
them to 3.1 percent. Guess what? Nobody dropped out. Since then, it has
been the same story every time we bring up this act. They swear on a
stack of Bibles, we cut them a little bit anyway, and nobody drops out.
Does anybody see a problem here?
This whole process is fundamentally flawed. We are setting prices for
private parties in a political negotiation. Congress should not be
setting prices. We need a market process to do that. We have that in
direct lending, where all private services are procured through
competitive bidding. We do not have that in guaranteed lending.
That is why the gentleman from New Jersey (Mr. Andrews) and I are
proposing a loan rights auction process to determine how much the banks
are paid and to get rid of the continuing extra half point bank subsidy
now in the bill.
Mr. KILDEE. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman
from Indiana (Mr. Roemer).
(Mr. ROEMER asked and was given permission to revise and extend his
remarks.)
Mr. ROEMER. Mr. Chairman, first of all, I want to associate myself
with the bipartisan spirit and nature of this bill and commend my
ranking member, the gentleman from Missouri (Mr. Clay), and my ranking
member of the subcommittee, the gentleman from Michigan (Mr. Kildee),
and also give accolades to the gentleman from California (Mr. McKeon)
and the gentleman from Pennsylvania (Mr. Goodling) for bringing
Republicans and Democrats together on such an important issue to all
Americans across the board.
One of my constituents was kiddingly saying to me the other day, he
said, ``Tim, the American dream used to be to own your home. Now it is
to get your children out of the home and into an affordable school.''
Well, this bill will help our Nation's parents get their children into
affordable schools.
When parents want to send their children to Indiana University or
Purdue, it can be $13,000 a year, and if there are three children, it
can cost those parents $156,000 through the course of those tuition
payments. For affordability reasons, we have the lowest interest rate
in 17 years in this bill. That is a tax cut for every individual with
children in schools across America with the passage of this bill.
In terms of accessibility, that complements the affordability.
Children with no hope, we have now passed a program with high hopes, to
give children the hope of getting into college. For simplification,
students will be able to apply for financial aid with one single
application for both loan programs. For quality, I have included an
amendment for alternative certification for teachers to get certified
so that we can bring in people from different professions, including
the military, to teach in schools.
I do, Mr. Chairman, have one concern about a new regulation for
reporting requirements on colleges and universities and intend to offer
an amendment during consideration of this bill to strike that
particular provision.
Mr. Chairman, I thank the distinguished Member, the gentleman from
Michigan (Mr. Kildee), who has done such a great job on this bill, and
conclude by saying that Thomas Jefferson, who founded the very first
public institution in this country, the University of Virginia, once
said, and I quote, ``The less wealthy people would be qualified to
understand their rights, to maintain them, and to exercise with
intelligence their parts in self-government.''
Thomas Jefferson, I think today, would be very proud of the higher
education system in this Nation that is the best in the world. This
bipartisan bill complements that outstanding university system.
Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from New
Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his
remarks.)
Mr. ANDREWS. Mr. Chairman, I thank my friend from Michigan for
yielding me this time, and I again want to say to the gentleman from
Pennsylvania (Mr. Goodling) and the gentleman from California (Mr.
McKeon), our chair people, and to the gentleman from Missouri (Mr.
Clay) and the gentleman from Michigan (Mr. Kildee), our ranking
members, that I am proud to be associated with their accomplishment
that they have worked so hard on.
This bill is the second installment in a two-part process that began
last year to make higher education more affordable for more Americans.
Last year, as part of the historic balanced budget agreement, this
Congress gave people a tax cut to help people pay for college tuition.
This Congress made it easier for people to save some money in IRA-type
accounts for college and career school tuition.
We finish that job or continue that job with this bill. This bill
dramatically increases Pell Grants to a level of about $4,500 at the
beginning. This bill makes more loans more affordable to more students
and, in response to legislation I have introduced, makes those loans
more affordable and more repayable. This bill expands work study
programs and makes it more fair and reasonable as to how we calculate
what a family must contribute to the education of a person in that
family.
What is most important about this bill, however, is why it does what
it does. This bill is about honoring a commitment to the people of this
country that says if they are willing to work hard and make sacrifices
that they can go as high and as far as their ability and desire will
take them.
I am proud, Mr. Chairman, to stand before you tonight as the son of a
father who did not graduate from high school, as the son of a mother
who graduated from high school but had no further opportunities.
Education has been very important in our family. My father-in-law was
a lifelong career educator, my mother-in-law is someone who cares
deeply about education, and I am just so proud to be a part of an
effort that says to all of America's children and all of America's
adults that the promise of a higher education is much closer to being a
reality once we enact this legislation. I urge my colleagues to support
it.
Mr. GOODLING. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman
from South Carolina (Mr. Graham), an important member of our committee.
Mr. GRAHAM. Mr. Chairman, to take up where my colleague left off
about families and about doing better and about hopes and dreams, this
bill has a lot of that in it.
I am the first person in my family to ever go to college because my
parents worked hard. They died fairly early on in my life, and I helped
put my sister through, and we got student loans and grants, and it
really helped.
But one of the debates about education is to provide quality. And,
quite frankly, one of the problems we are facing in this country is a
shortage of qualified teachers. In this bill, the higher education bill
that we are about to, hopefully, pass here, there is a provision that I
think the American public needs to know about that is a very good,
common-sense step to solving that problem.
[[Page H2521]]
About 30 percent of the teachers in our K through 12 schooling
systems have been in teaching over 20 years and are going to retire,
and we are going to have a tremendous teacher shortage in the first
part of the 21st century. The number of emergency certificates being
issued to get people into the teaching profession, like in New York
City alone, is about 18 percent, is at an all-time high.
We are having a hard time getting people into the teaching
profession, especially in urban poor and rural poor districts. In this
bill we have a program, thanks to the gentleman from Michigan (Mr.
Kildee), the gentleman from California (Mr. George Miller), and the
people on our side of the aisle. We have come together in very much a
bipartisan fashion to address the teacher shortage facing this country.
The loan forgiveness program goes as follows: If individuals graduate
from college and are willing to go into the teaching profession and
keep their certifications up, because we want quality, not just bodies,
and they will go to a Title I school where 30 percent of the students
are at the poverty level or below and they will stay in that school
system and teach for 3 years and keep their certification levels
current, in the fourth year of their teaching career we will start
forgiving the student loan at 30 percent, and by the sixth year of
their teaching careers we will forgive the student loans entirely, up
to $17,750.
We on this committee believe that it is a small step forward to
addressing the teaching shortage in this country, and I cannot tell my
colleagues the response I have gotten in South Carolina. I have a lot
of Title I schools with 30 percent poverty level or below. The
educators are excited. This will help us get the best and brightest as
an incentive to go into teaching, to go into the schools that have a
hard time recruiting.
And this amount of money is $218 million, and it comes out of the
bill itself. There is no new spending. I think it is Congress at its
best, and I want to thank the people on the other side of the aisle,
the gentleman from Michigan (Mr. Kildee) and the gentleman from
California (Mr. Miller), for helping in this endeavor. A lot of lives
are going to be changed very positively as a result of this, and I just
think it is a good day for Congress, and I hope other Members will tell
the folks back home about this new program.
{time} 2015
Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from
California (Ms. Woolsey).
(Ms. Woolsey asked and was given permission to revise and extend her
remarks.)
Ms. WOOLSEY. Mr. Chairman, as a member of the Subcommittee on
Postsecondary Education, Training and Life-Long Learning, which crafted
this bill, I am truly proud to rise in support of H.R. 6, the Higher
Education Act. This is a good bipartisan bill. It makes higher
education more available and more affordable for all students.
H.R. 6 also makes higher education safer, particularly for women on
college campuses, because H.R. 6 includes grants to combat violent
crimes against women on campuses. Currently, 20 percent of college
women will be victims of sexual assault at some time during their
college years. These are our daughters, our sisters, even our mothers.
College is hard enough. Women should not have that added worry of
sexual assault. These grants will be used for education, for
prevention, for collaboration with local public safety departments to
reduce violent crimes against women on college campuses.
I want to thank the gentleman from Pennsylvania (Mr. Goodling) and I
want to thank the gentleman from Missouri (Mr. Clay), and I want to
thank them both for their willingness to work with me to include these
grants in this bill. And at the same time, we should all be thanking
the gentleman from California (Mr. McKeon) and the gentleman from
Michigan (Mr. Kildee) for their leadership on this bill. Good job, my
colleagues.
On the other hand, I urge my colleagues to reject any amendment that
will jeopardize final passage of this bill and to join the members of
the Committee on Education and Workforce from both sides of the aisle
and vote for a bill that puts the best interest of students and parents
first.
The CHAIRMAN. The Chair would advise that the gentleman from Michigan
(Mr. Kildee) has 14 minutes remaining, and the gentleman from
Pennsylvania (Mr. Goodling) has 8 minutes remaining.
Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from
California (Mr. Miller).
Mr. MILLER of California. Mr. Chairman, I thank the gentleman for
yielding.
I want to join my colleagues in again congratulating our chairman the
gentleman from Pennsylvania (Mr. Goodling) and the subcommittee
chairman the gentleman from California (Mr. McKeon) and the gentleman
from Missouri (Mr. Clay) and the gentleman from Michigan (Mr. Kildee)
for all of the work here.
This is one of the more unusual bipartisan coalitions we have put
together in the last couple of years, but we have done it because I
think everybody on the committee recognizes the importance of this
legislation to America's families with children who are pursuing higher
education and pursuing education for the purposes of taking their place
in our economic system.
This legislation is an important vehicle, and it opens the doors of
opportunity for those families. I think as we look through this
legislation, to my colleagues who are not part of the committee, they
will start to see that the hearings in this committee made a
difference, that this committee was willing to listen to people who
were constructive critics of the current system and have made a series
of changes that I think are terribly important.
We provided loan forgiveness, as the gentleman from South Carolina
(Mr. Graham) pointed out, to teachers to go to high-poverty schools,
but we also said that those teachers have to be qualified. No longer
should poor children have to suffer poor teachers. We have provided
grants to States for upgrading the State teacher preparation and
certification system. We created partnerships between colleges and
school districts to provide new teachers intensive professional
development and mentoring programs and better information to parents
about the qualifications of the teachers of their children, the
teachers who are spending many hours a day with their children.
I think it is important for our colleagues to understand that we
listen to these critics, we try and shape and mold this program, we try
to reduce the cost of higher education to young people and to their
families; and I think we successfully did so.
Finally, I would just like to make one remark that was pointed out by
our colleague the gentleman from Guam (Mr. Underwood). I am
disappointed that the legislation, as currently written, will result in
students from the Freely Associated States being denied access to Pell
Grants. I think it is important that we try to honor our commitment to
these people from the Federated States of Micronesia, Marshall Islands
and Palau to make sure that they do have access to institutions of
higher education here on the mainland; and I look forward to working
with the committee on that matter.
Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from
New York (Mrs. McCarthy).
(Mrs. McCarthy asked and was given permission to revise and extend
her remarks.)
Mrs. McCARTHY of New York. Mr. Chairman, I rise in strong support of
H.R. 6. I want to commend the gentleman from California (Mr. McKeon)
and the gentleman from Michigan (Mr. Kildee) for making this a truly
bipartisan effort.
H.R. 6 will give millions of Americans educational opportunities well
into the next century. I am pleased that H.R. 6 includes the provisions
of my bill, the American Teachers Preparation Improvement Act. H.R. 6
will help new teachers by establishing partnerships between colleges
and schools.
I am also pleased that H.R. 6 includes legislation that the gentleman
from New York (Mr. Engel) and I introduced to protect consumers. Our
bill requires the Department of Education to put up-to-date information
about financial aid and scholarships on its Web site.
[[Page H2522]]
This bill does many great things to increase access to education, but
we can do more. I am concerned that provisions which block schools from
financial aid programs if their default rates are high end up denying
access to education to many low-income students.
However, earlier this month GAO reported that default behavior is
primarily influenced by the characteristics of the borrower rather than
that of the school. We need to hold schools accountable, but we need to
look very closely at the measurements we use. Many good schools risk
being kicked out of Federal aid programs simply because they serve low-
income students.
Again, I want to commend the chairman and ranking member for their
work, and I urge my colleagues to support H.R. 6. And again, through
our educational committee, we have worked well together, and I
appreciate that, because, in the end, we are serving our children, and
I appreciate that very much.
Mr. McKEON. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman
from Nebraska (Mr. Barrett), an important gentleman on the committee.
Mr. BARRETT of Nebraska. Mr. Chairman, I thank the gentleman for
yielding this time.
Mr. Chairman, I guess let me begin by expressing a certain
disappointment this evening over the rule we passed earlier this
evening. I was assured throughout committee consideration that the $1
billion in extra money that we were looking for would be resolved prior
to coming to the floor with the bill. In fact, I even cosponsored the
bill with that assurance. Now, of course, we find in the rule that we
waived the budget rule so that no one could raise a point of order
against the bill for violating the Balanced Budget Act that we all
agreed to about 8 months ago.
I know, Mr. Chairman, that this is much needed legislation if we are
going to have student loans available to the millions of needy students
out there. But to make the student loans available today, the House
apparently is willing to add another unpaid bill to tomorrow's
generation of students, and I am very disappointed over this action.
However, in the limited time that I do have before me, let me
highlight just a few provisions that I do support in the bill. The
bill, first of all, would create a student loan forgiveness program for
teachers in low-income schools. Some teachers could have some or all of
their student loans forgiven if they are teaching in their core area.
H.R. 6 would also modify the needs analysis formula to permit people
to keep more of what they earn and still qualify for Federal student
financial assistance. If people are to move from welfare to work, or if
young families are to afford to have one or both parents in school,
then we must allow them to earn just a little bit more and still
qualify for student aid.
Finally, Mr. Chairman, the bill does embark on what may become a very
complex issue in the next reauthorization. For example, how can Federal
student aid programs be adapted to the new and emerging technologies
and the methods of instruction used in distance learning programs? H.R.
6 permits the Secretary to approve distance learning programs that are
currently exempt from statutory or regulatory limitations. This could
very well provide more flexibility and more oversight for emerging
distance learning programs.
Unfortunately, in my opinion, Mr. Chairman, some of these good
provisions and many others are scarred by the budget-busting nature of
the bill.
Mr. KILDEE. Mr. Chairman, I yield 3 minutes to the gentleman from
Texas (Mr. Hinojosa).
Mr. HINOJOSA. Mr. Chairman, I rise in support of House bill H.R. 6.
This is a strong bill giving students opportunities to access higher
education for the next 5 years.
First, I want to acknowledge the excellent work accomplished by the
gentleman from Pennsylvania (Mr. Goodling). I applaud the leadership
shown by the gentleman from California (Mr. McKeon), chair of the
Subcommittee on Postsecondary Education, Training and Life-Long
Learning; likewise, the gentleman from Missouri (Mr. Clay) and the
gentleman from Michigan (Mr. Kildee), the ranking member of the
Subcommittee on Postsecondary Education, Training and Life-Long
Learning, have contributed greatly towards the education bill before us
today. It is amazing that we forged an excellent bipartisan consensus
agreement.
Secondly, I want to express my appreciation to Secretary Riley and
President Clinton for supporting our legislative and resource
allocation concerns in regard to expanding opportunities for Hispanic
students. I also want to acknowledge the personal contributions offered
to us by the gentleman from Missouri (Mr. Gephardt), the minority
leader, and his staff.
Thirdly, a special mention is directed to all of the presidents of
HSIs who rallied on our behalf. And last, but not least, thanks to the
Hispanic Education Coalition, which provided us with very valuable
insights and consistent support during this Congress.
In September of last year, on behalf of the Congressional Hispanic
Caucus, I introduced H.R. 2495. This bill contained a number of
provisions intended to amend what is now H.R. 6. With the help and
cooperation of our committee leadership, a number of these provisions
have been incorporated.
For example, in regards to Hispanic-serving institutions, we have
reduced eligibility barriers, legislatively strengthened these
institutions, increased the authorization levels, and provided for
graduate and professional opportunity.
Other provisions incorporated in H.R. 6 include support within title
III for tribally-controlled colleges and universities, support for high
school equivalency programs and college assistance migrant programs,
Frank Tejeda Scholarship program, funding priorities in the Fund for
the Improvement of Postsecondary Education, which emphasizes community
colleges.
All of the foregoing provisions are especially important to us on the
Education Task Force of the Congressional Hispanic Caucus. They are of
much greater importance to all the students impacted. The students are
the winners with H.R. 6. This includes 1.2 million students and the 166
Hispanic-serving institutions across nine States and Puerto Rico.
In closing, Mr. Chairman, I urge all my colleagues to vote in support
of H.R. 6.
The CHAIRMAN. The Chair would advise that the gentleman from Michigan
(Mr. Kildee) has 7\1/2\ minutes remaining, and the gentleman from
Pennsylvania (Mr. Goodling) has 5\1/2\ minutes remaining.
Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentlewoman from
California (Ms. Sanchez).
Ms. SANCHEZ. Mr. Chairman, I join my colleagues today in supporting
H.R. 6.
I would first like to commend my committee colleagues for arriving at
a bipartisan piece of legislation that we can stand behind and of which
we can be proud. This is one of the most important bills that Congress
will vote on for students and for families. It will enable every
American who would like to do so to attend higher education.
As America moves into a knowledge-intensive world of the future, the
focus is turning to higher education. It used to be that a high school
education was important, but today one really needs a college
education. When I was in school, we could get away with typing skills,
but future students will have to be prepared to access computers and be
able to navigate the information highway.
I believe that that bill accomplishes the goal of expanding
educational opportunity, particularly for low-income individuals, and
it increases the affordability of colleges for many families. It offers
a better future for approximately 1 million students who attend
Hispanic-serving institutions and tribally-controlled colleges in
approximately 200 institutions across the Nation.
I have an SAI in my Congressional district, Santa Ana College, which
serves 3,000 students, and this bill will give Santa Ana College, other
institutions around the country, increased funding, support, and
recognition that they need to serve all of their students.
We also included funding to expand and modernize active school
programs, such as TRIO, but we did not stop at that.
{time} 2030
We also created the High Hopes program which will do early
intervention in middle schools across the country.
[[Page H2523]]
I came to Congress to make sure that every child in my district had
the same opportunities for education that I had. Passing this
legislation will ensure that I will carry out that mission. H.R. 6
gives struggling students the opportunity to excel and to take full
advantage of their education. A ``yes'' vote on this bill is a vote for
students and families and the future.
Mr. GOODLING. Mr. Chairman, I yield 3 minutes to the gentleman from
Delaware (Mr. Castle), another gentleman from the committee.
Mr. CASTLE. Mr. Chairman, I thank the gentleman for yielding me the
time and for his erstwhile and good work on this bill, as well as a lot
of other Members who worked so hard on this. I, too, as I have heard
everybody else tonight, rise in support of H.R. 6.
There are a number of good reasons to support this bill but, since I
only have a few minutes, I will focus on provisions to make college
more affordable. While the bill includes a new low student loan
interest rate and increases assistance to disadvantaged students, these
provisions will not be of much help if tuition rates continue to
increase, thus requiring students to take on more debt or minimizing
the value of grant aid. By the way, tuition has increased more than any
other commodity in this country in the last 20 years or so.
To bring some subtle downward pressure on tuition rates, this bill
includes an amendment offered by the gentleman from California (Mr.
McKeon) and myself based on the recommendations of the National
Commission on the Cost of Higher Education. The bill includes
provisions requiring the Department of Education to review regulations
regarding student financial assistance every 2 years and where possible
repeal, consolidate or simplify those regulations.
It also provides Federal support for innovative projects addressing
issues of productivity, efficiency, quality, improvement and cost
control. And it requires GAO to issue a yearly report to Congress on
various college cost factors and tuition increases.
But one of the most important provisions requires the Secretary of
Education to work with colleges to develop a clear set of standards for
reporting college costs and prices. Right now terms mean different
things in different places, and it is not possible to compare costs at
one school to costs at another.
For example, what is encompassed under the term ``research''? What is
encompassed under the term ``building and facilities''? Everyone needs
to be on the same page before institutions can voluntarily report on
their costs in a meaningful way.
Once this occurs, then families will be able to make comparisons.
They will have a clear sense of what their college tuition buys them,
what schools spend their money on, what their financial priorities are.
This valuable information could guide consumer choices and, more
importantly, could guide institutions' spending choices.
For this reason as well as the others mentioned by my colleagues, I
urge Members to give this legislation their hearty support.
Mr. KILDEE. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman
from California (Ms. Roybal-Allard).
Ms. ROYBAL-ALLARD. Mr. Chairman, I rise in support of H.R. 6.
Our commitment to making education a national priority must be
reaffirmed. We must help our youth develop their talents and the skills
they need to compete in today's highly technical and competitive global
economy. If we do not, our businesses will not have a skilled
workforce, our economy will suffer, and even worse, we will rob our
youth of the opportunity to lead meaningful and productive lives.
Mr. Chairman, H.R. 6 will help to end the tragic loss of our youth's
talents, energies and abilities and prepare our country for the
challenges of the 21st century. For example, H.R. 6 includes President
Clinton's new High Hopes initiative which will make available outreach,
mentoring and tutoring assistance for low-income students, providing
the help and encouragement that many of our young people need to stay
in school.
Mr. Chairman, H.R. 6 is a good bill that will help our collective
effort to ensure that higher education is accessible to all our
children.
Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from New
York (Mr. Owens).
(Mr. OWENS asked and was given permission to revise and extend his
remarks.)
Mr. OWENS. Mr. Chairman, I too rise in support of H.R. 6. I want to
congratulate all of those who made it possible.
We are grateful for the fact that there are no extremist and radical
proposals in this bill, no radical proposals to roll back the Federal
role in education of the kind we had in the 104th Congress, so we are
grateful for that. We are grateful for the good housekeeping that has
tidied up certain parts of the Higher Education Assistance Act. We are
grateful for the important administrative changes that have been made.
It is all good. We have some incremental increases, also, that we are
grateful for.
However, I want to voice my dissent in terms of what is not here. We
have missed a great window of opportunity that will not be open again
until 2003. We only reauthorize this act once every 5 years, so we are
going into the 21st century and we have a status quo bill that we have
polished up, it is great, but at a time when the economy is booming and
the information technology revolution is underway in industry, we have
neglected our duty to set priorities and make projections and target to
meet critical needs.
Two critical need areas we have neglected, one is we have neglected
to address the information technology worker crisis. Right now there is
a shortage, 300,000 vacancies across the country, and it is going to
get worse. Only the Committee on the Judiciary is addressing the
problem. They are going to bring in more foreign professionals to fill
the gap. Instead of training our own, we are going to bring in foreign
professionals.
The other critical need is in the area of more opportunity needs to
be provided. We have a very complex society that we are in already and
it is going to become more complex. We need more Americans to go to
college, more Americans to be in college. Fifteen million is not
enough. Fifteen million may seem like a lot when you consider the
junior colleges and the senior colleges, but 15 million is less than 10
percent of the total population. In the complex world that we are
looking at, we need more.
We need to address this problem and provide more opportunities.
Instead of quarreling about affirmative action, we need to open up the
gates and let more people in. That is an affirmative way to proceed to
provide the kind of human capital that we need for the future.
Mr. GOODLING. Mr. Chairman, I yield 2 minutes to the gentleman from
Colorado (Mr. Bob Schaffer), a very faithful and important member of
the committee.
(Mr. BOB SCHAFFER of Colorado asked and was given permission to
revise and extend his remarks.)
Mr. BOB SCHAFFER of Colorado. Mr. Chairman, I thank the gentleman for
yielding me this time, the chairman of the committee and the
distinguished Member from the State of Pennsylvania whose leadership on
this issue has been exemplary.
The government quite frankly can do more to reduce the default rate
where student loans are concerned. I would submit this is an important
thing for us to consider and for us to pursue, because the high default
rate that we are experiencing presently essentially robs resources from
other worthy students who have a right to an opportunity to achieve
higher education in America. That is true with public resources as well
as private resources.
The reason this occurs, however, and the area where we ought to look
to find a remedy is right in the Federal statute as it exists today.
There is a definition in the Higher Education Act for what constitutes
due diligence with respect to collecting these loans. The Department of
Education unfortunately applies that standard differently under
different circumstances.
I had offered an amendment in committee which would have proposed to
apply this definition of due diligence evenly throughout the law in a
way that would cause greater efforts to collect delinquent loans and
lower the delinquency rate. That amendment was withdrawn under my
direction at the request of the chairman, and it was his
[[Page H2524]]
belief and promise that he would work with me and the sponsor of the
bill in directing the Department of Education to increase its efforts
at collecting loans that are in default in a way that will effectively
lower the default rate.
I am proud to say, Mr. Chairman, that the Department of Education to
this point has been receptive. Just raising the level of discussion,
not only in committee but right here on the floor, has done quite a lot
to make progress in this regard. It is one of those examples where I
think we are going to be able to resolve this problem and move in a
positive direction without the necessity of additional statutes and
additional regulatory law.
With that in mind, Mr. Chairman, I just want to thank the gentleman
from Pennsylvania for agreeing with me and the sponsor of the bill that
we will continue to press privately with the Department of Education to
resolve the problem of loan defaults.
Mr. KILDEE. Mr. Chairman, I yield the balance of my time to the
gentleman from Pennsylvania (Mr. Fattah).
The CHAIRMAN. The gentleman from Pennsylvania (Mr. Fattah) is
recognized for 2 minutes.
(Mr. FATTAH asked and was given permission to revise and extend his
remarks.)
Mr. FATTAH. Mr. Chairman, let me first thank the gentleman from
Pennsylvania (Mr. Goodling) and the gentleman from Missouri (Mr. Clay),
and also the gentleman from California (Mr. McKeon) and the gentleman
from Michigan (Mr. Kildee) for the excellent work product that has been
produced.
I too rise in support of favorable consideration of H.R. 6. I,
however, want to add to what has been said by others about an important
part of this bill which is the High Hopes program, the fact that not
only has it been embraced by the Clinton administration, but this is a
proposal that has been bipartisan since its inception. That is, it has
enjoyed the support of Members on both sides of this aisle, both in the
committee and in the full House. I want the record to fully reflect
that this is a bipartisan initiative.
I would also like to thank the staff who have worked so hard on this
product, for Sally Stroup and also David Evans for their hard work.
There are millions of American families who are going to benefit not
just by the initiative that I referenced, but throughout this bill
there are programs and projects that will appropriately intersect with
the interests and aspirations of American families for their next
generations to receive the highest possible opportunities to reach
their academic potential.
Finally, I want to say that I think it says a great deal about the
105th Congress, at the same time that when we make it clear to young
people that there are consequences when they act inappropriately, we
are now through the High Hopes 21st century initiative making it clear
when they do the right thing that there will be rewards and that we
indeed expect of them the highest in terms of their achievements. Many
of us will not be around in the next century when these sixth graders
are going to college, but today we are not thinking about the next
election, we are thinking about the next generation.
Mr. GOODLING. Mr. Chairman, I yield myself the balance of my time.
The CHAIRMAN. The gentleman from Pennsylvania is recognized for 1\1/
2\ minutes.
Mr. GOODLING. Mr. Chairman, I just want to make two observations.
First of all, I want to again repeat that we cut the lenders yields by
30 basis points. The students are happy. The colleges and universities
are happy. The lenders are not. But it was a compromise and I think a
good compromise for students and parents.
Then I do want to mention something about the National Board of
Professional Teaching Standards. It was my belief that if we had 40
percent of the students that are not reading well by the end of third
grade, one of the things we should be looking at is teacher training,
teacher preparation. I felt we should be looking at the other end,
where these teachers are beginning to start to become teachers, so that
as a matter of fact we would not have that problem later on.
And so we had to find $18 million to have an offset in order to
better prepare our teachers who are beginning to teach, and our
teachers who are teaching who need remedial work. That is where we got
that $18 million. We have to understand in 1992 when they came and
asked for some money, they asked for a little bit of seed money. They
said, ``That's all we want, a little bit of seed money, and then it
will pay for itself.'' Since 1992, they have spent $100 million, they
have certified 914 teachers, that is $100,000 apiece, none of which got
into rural America and center city America where they are truly needed.
Mr. RODRIGUEZ. Mr. Chairman, I rise to discuss an issue of importance
to the families of my district and to our nation as a whole--access to
higher education for all children.
While I agree with many aspects of the legislation, I want to focus
on significant sections of H.R. 6 that need improvement--teacher
training and diversity on our college campuses.
Let me first say that I applaud the bill's inclusion of the Frank
Tejeda Scholarship Program--appropriately named after a Member of this
Chamber who fought to advance the education of some of our neediest
students. The initiative would help bilingual individuals pay for their
college education in exchange for service in schools with large
limited-English proficient student populations.
While I applaud this effort we must first look at programs that will
address some key problem areas such as teacher recruitment, retention
and scarcity.
The current proposal would put all teacher training funds into block
grants to the States. This is unacceptable. It does not ensure that we
will hire, train and keep the very best teachers for our students. And
it will not ensure that smaller school districts receive necessary
funds to pilot professional development programs. As a former State
representative, I value local input and state control. But the Federal
Government has a positive, affirmative role to play--and it is more
than simply transferring money.
Students not only need well trained teachers, they also need rich
learning environments. We know that college students learn as much from
each other as from the formal education they receive.
Therefore, we have a duty here today to ensure that we keep our
colleges as a place where diversity is welcomed and respected.
My colleagues on the other side say they want a ``color-blind
society''. The reality is that we don't have one and that equal
opportunity does not exist for minority students. Because there is not
equitable access to education we must use what we know works--
affirmative action.
In my home State of Texas, overall Hispanic and African-American
enrollment dropped sharply at the larger institutions of higher
education as a result of he Hopwood decision, and we can't allow the
trend to continue.
I oppose the Riggs amendment. It would overturn the 1978 Supreme
Court decision recognizing the value of affirmative action and would
deny the substantial advances that have been made through affirmative
action by women and minorities. Don't be fooled into believing that you
are voting for equality. Voting to end affirmative action is a vote to
perpetuate inequality.
Mr. Chairman, protecting and ensuring our children's access to a good
education is a most important goal. I applaud the efforts of my
colleagues and the administration in bringing this important bill to
the Floor, and I look forward to our collective work on this crucial
issue.
Mr. CASTLE. Mr. Chairman, I have concerns about a provision included
in H.R. 6 which eliminates all federal funding for the National Board
for Professional Teaching Standards.
I've been aware of the Board's efforts for many years. I was Governor
of Delaware when the National Governors Association called for the
Board's creation in the late 1980s. I've worked with representatives of
major Delaware corporations such as DuPont, who strongly support the
Board's mission. And the State of Delaware, like many other states, is
actively supporting the Board's objectives by providing funds to help
teachers sit for Board certification, and by providing merit pay to
teachers who achieve certification.
There is broad and bipartisan support for the mission and the work of
NBPTS from major stakeholders in education policy: ;the governors,
business, the school boards, principals, and teachers. I submit for the
record a letter in support of federal funding for NBPTS, signed by
several Republican and Democrat governors.
While questions have been raised about federal funding for the
National Board, I believe it is possible to achieve a compromise that
sets a time limit on federal funding, but allows the important work on
teacher certification to be completed. I intend to work to resolve this
issue in conference.
[[Page H2525]]
April 21, 1998.
Hon. William F. Goodling,
Chairman, House Committee on Education and the Workforce,
U.S. House of Representatives, Washington, DC.
Dear Mr. Chairman: We are writing you today to tell you of
our support for the important work of the National Board for
Professional Teaching Standards. As Governors, each of us
believes that one of our highest priorities is to make our
system of education the very best it can be and that a
vitally important factor in achieving this is to improve the
quality of the teaching that takes place in our classrooms.
We support the voluntary process of National Board
Certification because it provides us with a tool for
achieving this goal. Each of us has crafted a plan to use the
high and rigorous standards and assessments of the National
Board in our states and we look forward to soon having the
full system available to all of our teachers.
We applaud the United States Congress for providing
resources for the research that launched and continues to
support full development of the voluntary National Board
system. For a little over six years, this research and
development program has proceeded with the help of federal
dollars and with accountability to the Congress.
We look to you for continued support of the federal funding
for the National Board for Professional Teaching Standards at
the level requested by the President for FY 1999.
Sincerely,
James B. Hunt, Jr.;
Gary Locke;
Lawton Chiles;
Thomas R. Carper;
George V. Voinovich;
Marc Racicot;
Terry E. Branstad; and
Tommy G. Thompson.
Mrs. MORELLA. Mr. Chairman, I rise in praise of Congressmen Goodling,
McKeon, Kildee and Clay and all of the Members of the Committee on
Education and the Workforce for their hard work and their leadership in
bringing H.R. 6, the Higher Education Amendments of 1998 to the House
floor in a timely manner. You deserve great credit for this thoughtful
and carefully-crafted bill that will increase access to a higher
education for millions of Americans.
For most Americans, student loans are the primary source of education
funding. From the G.I. Bill to Pell Grants and the Stafford Loan
Program, financial aid has enabled millions of working class families
to send their children to college. College graduates earn, on average,
50 percent more than those with only a high school diploma.
This legislation will provide college students with the lowest
interest rates for academic loans in 17 years.
The bill expands the Pell Grant Program which helps youngsters from
disadvantaged backgrounds, and improves campus-based aid programs like
Supplemental Education Opportunity Grants, Work Study, and Perkins
Loans.
The process of applying for student loans has been simplified, and
there has been an effort to reduce the regulatory burden on most
colleges and universities.
Students will have more timely access to crime statistics and
information that will allow them to have an accurate picture of campus
safety. In addition, the bill gives the Secretary of Education the
unprecedented authority to study distance learning techniques that will
expand student access to a higher education.
I am particularly pleased that Congresswoman Marge Roukema offered
legislation that I introduced as an amendment during the mark-up of
H.R. 6. My legislation, College Access Means Parents in School (CAMPUS)
Act, has been incorporated into H.R. 6 and will enable more low-income
women to get a college education by providing campus-based child care
centers. Often, finding affordable quality child care can be an
insurmountable barrier for students who have children. The CAMPUS Act
will tear down this barrier by providing financial incentives for
colleges and universities to establish campus-based child care centers.
The good news is that students who have access to campus-based child
care centers are more likely to stay in school and graduate than the
average college student. Peace of mind that their children are being
well cared for enables most of these students to achieve a higher grade
point average and to complete their college education in less time than
the norm.
Again, I want to commend the members of the Education and Workforce
Committee for their excellent endeavors and I urge all of my colleagues
to support this bill.
Mr. FAWELL. Mr. Chairman, I am very pleased to announce that the
Higher Education Amendments Act of 1998, H.R. 6, which will be passed
by the House today, includes compromise language permitting colleges
and universities to offer voluntary age-based early retirement
incentives to tenured faculty. Title X of H.R. 6 reflects compromise
language acceptable to all interested parties, including Democrat and
Republican leaders of the Education and Workforce Committee, the
Administration, the higher education community, the American
Association of University Professors (AAUP)--the well known faculty
union, and other groups. This language still accomplishes the basic
purposes of the bipartisan bill H.R. 3473, which I introduced on March
17, 1998 (and which was incorporated in the version of H.R. 6 reported
by the Committee).
This legislation would amend the Age Discrimination in Employment Act
of 1967 (ADEA) to provide a ``safe harbor'' for certain age-based
voluntary early retirement incentive plans (VERIPs) offered by colleges
and universities to tenured faculty. The new Title X clarifies the
scope of that safe harbor in several respects from the Committee-
reported version.
I support the principles of the ADEA and believe that the unique
nature of faculty tenure justifies this amendment. Moreover, the ADEA
already recognized the unique nature of faculty tenure. In 1986, when
Congress amended the ADEA to abolish the mandatory retirement age, it
included a seven year exemption for tenured faculty. When the exemption
expired in December 1993, a National Academy of Sciences report raised
concerns that the tenure system and diminished faculty turnover--
particularly at research universities--could increase costs and limit
institutional flexibility in responding to changing academic needs,
particularly with regard to necessary hires in new and expanding fields
and disciplines. It thus predicated its recommendation for ending
mandatory retirement on the enactment of several proposals, including
this legislation.
This legislation has been endorsed by the AAUP, the widely recognized
union that represents university faculty. According to the AAUP,
voluntary early retirement incentives are beneficial for both the
faculty members who choose to retire and the institutions that need to
encourage turnover to make necessary hires. Further, the voluntary
nature of the proposed incentives and the double protections available
to tenured faculty--the age discrimination laws and the tenure system--
insure that this ``safe harbor'' cannot be used to penalize faculty
members who choose not to retire. The AAUP has written to the Committee
that it supports the legislation because ``the retirement incentives
under discussion are offered on a voluntary basis . . . [and] the
legislation would permit an offer of additional benefits. It would not
permit institutions to reduce or eliminate retirement benefits that
would otherwise have been available to faculty after a certain age.''
The Older Workers' Benefit Protection Act (OWBPA) did allow for two
very limited age-based early retirement subsidies. When the OWBPA was
enacted, the authors did discuss in detail the need for a safe harbor
in defined benefit plans and noted that any plans (i.e., defined
contribution plans, the plans used primarily by colleges and
universities, and defined benefit plans) could utilize other early
retirement incentive plans. The Committee has now decided that another
very limited age-based early retirement subsidy should be permissible.
This exception will be available only for faculty members with tenure
at an institution of higher education. I believe that the unique nature
of the tenure system and the extra protections it affords over and
above the age discrimination laws justifies the creation of this
exception solely for higher education institutions.
Moreover, this past January, the bipartisan National Commission on
the Cost of Higher Education included this legislative initiative in
its recommendations to check the skyrocketing cost of a college
education. The Commission recommended that ``Congress enact a
clarification to the Age Discrimination in Employment Act to ensure
that institutions offering defined contribution retirement programs are
able to offer early retirement incentives to tenured faculty members.
The Commission endorses pending Senate Bill 153, which would accomplish
this purpose.''
Title X is similar to S. 153, introduced by Senators Moynihan and
Ashcroft. However, unlike the Senate version, this provision assures
that no professor is denied an opportunity to receive the retirement
incentive because the professor is too old. The provision requires that
each otherwise eligible faculty member will have one opportunity of at
least 180 days to elect to retire and receive the maximum benefit that
could then be elected if the faculty member were younger. The provision
clarifies that this 180-day opportunity must be afforded not only to
faculty members who have attained the minimum age and satisfied the
other eligibility requirements at the time the plan is established, but
also to faculty members who satisfy these eligibility requirements at
some later time while the plan remains in effect. The provision also
requires that faculty members be given at least 180 days to plan for
retirement after making their election.
The compromise language for Title X also clarifies that the ``safe
harbor'' applies only to VERIPs that offer supplemental benefits, and
would not apply where an institution implements any age-based reduction
or cessation of benefits that would otherwise have been
[[Page H2526]]
available to tenured faculty. The new Title X clarifies that an
institution may not cease offering a retirement or severance benefit
that has been generally available to tenured faculty and, within 365
days thereafter, begin offering that benefit solely to faculty members
who retire under the VERIP. The provision would not, however, preclude
an institution from discontinuing benefits under an existing early
retirement or exit incentive plan and substituting a VERIP within 365
days.
Finally, the new Title X clarifies that the enactment of this safe
harbor is not intended to effect the application of the ADEA to any
other plans or employers.
It is my hope that this legislation will contribute to containing the
costs of higher education, and will be beneficial both to colleges and
universities and to their faculty members who choose to retire. In the
words of the AAUP, the legislation will ``provide greater flexibility
in faculty retirement planning, offer a substantial retirement benefit
to those professors who choose to retire under the terms of an
incentive plan, and leave other professors whole in their choice to
continue their careers.''
Mrs. ROUKEMA. Mr. Chairman, I rise in strong support of the Higher
Education Act that we have before us today.
This bill is one of the biggest bills we will complete this Congress.
These are the issues that count for the American people.
To be competitive in the global economy, we need to provide our
country's youth with the means to better their education.
Mr. Speaker, we should be calling this bill ``the American Act!''
This is the legislation that will enable young people across this
nation to obtain the education they need to develop their skills so
that they may get the good job at good wages. In this exchange, our
students get the job they want, the roof over their head and America
gets hard-working, productive members of our society.
Among the many important provisions of this bill, are that this bill
saves the student loan program, encourages the provision of campus-
based child care, cuts down on scam schools and works on the training
of our teachers.
It is a good bill that makes sense for today's students!
pell grant
Clearly, one of the biggest problems facing students today is the
cost of higher education. While we must do everything we can to put
higher education within reach of every student, we also must do
everything we can to ensure to protect our scarce resources--to ensure
that they are not misused or wasted or squandered.
With this in mind I (along with Representative Bart Gordon of
Tennessee) introduced the ``Pell Grant Student/Taxpayer Protection
Act'' that is now a part of this Higher Education Act package.
This provision prevents a postsecondary school from participating in
the Pell Grant program if that school is already ineligible to
participate in the federally guaranteed student loan program.
This is a critical time for our country. Congress is trying to save
taxpayer dollars while improving the quality of post-secondary
education for all Americans. We took strong steps toward that goal when
we last reauthorized the Higher Education Act and implemented nearly
100 sorely needed reforms that were good for students and good for
taxpayers.
One of those reforms was to make schools ineligible for guaranteed
student loans if their loan default rates were above 25 percent three
years in a row. Today's reauthorization goes further by also taking
Pell Grant eligibility away from schools with high default rates. This
will recover millions of dollars currently being squandered and instead
put that money to work with hard-working students at legitimate
schools.
Reforms such as the three-year 25 percent default criteria were
intended to put an end to risk-free federal subsidies for unscrupulous,
for-profit trade schools who promise students a good education that
leads to a good job and then fail to deliver on that promise--at the
expense of both students and the taxpayer. If these schools violate
these rules, then they would be bounced from the program.
We have already determined that schools with unacceptably high
student loan default rates should not be permitted to participate in
the federally guaranteed student loan program. I submit that if a
school is deemed ineligible to participate in the student loan program,
then it should not be permitted to participate in the Pell Grant
program.
I should note that when we temporarily put this restriction on abuse
of Pell Grant money into effect for one year by making it a part of the
Omnibus Consolidated Rescissions and Appropriations Act of 1996, we
redistributed approximately $8 million to responsible schools. Since it
was a part of an appropriations act, that accomplishment was only
temporary. Today's action will make this provision permanently a part
of the law.
This is an opportunity to stretch our Pell Grant funds by
disqualifying those schools that we have already disqualified from the
federally guaranteed student loan program. This allows us to make the
most of our limited federal dollars!
student loan interest rate issue
But there is another aspect of finding funds for access to college
that I believe we have resolved here--the federal student loan interest
rate issue. The proposal in this legislation will help save access to
higher education, while helping students save on the cost of higher
education.
On July 1, a change in the student loan interest rate is scheduled to
take place that is believed by many independent organizations,
including CRS and GAO, to possibly drive many private lenders from the
student loan market.
I recognize that the change would have reduced the rate for students
paying back their loans. However it would have made the loans virtually
unprofitable for the banks--leading many banks to leave the market.
I am speaking today wearing two hats. One--as a longtime Member of
the Postsecondary Education Subcommittee. The other hat--I serve as
Chairwoman of the House Subcommittee on Financial Institutions of the
House Banking Committee.
So I know this program from both sides--so to speak.
Currently, 70% of all student loans are originated by private
lenders, such as the banks. Further, about 5000 banks participate in
the student loan market today. If the market becomes virtually
unprofitable, then many of these banks will leave the market, and leave
many students without the means to a loan.
The result--student and their families being shut out of the federal
student loan program and unable to obtain funds for college--is
unacceptable.
Which is why we believe we have devised a plan which would retain
these private lenders in the student loan program. And it is included
as part of today's Higher Education Act Amendments.
This compromise provides students with a cut in the interest rate by
80 bases points, while providing banks a different interest rate, with
the difference being paid by the federal government.
To students this means savings of over $1,000 per student for a
$20,000 loan. But just as importantly, this means access! By providing
banks with this small profit margin, they will remain in the guaranteed
lending program, and will continue to make it possible for students to
further their education!
teacher training
Another strong proposal in this Higher Education Act deals with the
issue of teacher training. As we talk about raising standards for
students, we should also talk about raising standards for teachers. To
help our nation's students, we need to help our nation's teachers.
This bill will focus on strengthening State teacher certification
requirements to improve the academic knowledge of teachers in the
subject areas in which they are certified to teach. Teachers who teach
math should have knowledge in math, and teachers who teach science
should have knowledge in science.
This bill provides competitive grants to the Governors. It will help
raise the State academic standards required to enter the teaching
profession.
In some states it is harder to graduate from high school than to
become a certified teacher. Something is wrong here!
According to a U.S. Department of Education report, 39.5% of science
teachers had not studied science as a major or minor, 34% of
mathematics teachers and 25% of English teachers were similarly
teaching ``out of field.''
How can our nation's students learn science or math when their
teachers do not know it?
Every classroom should have a well-educated, knowledgeable teacher.
child care
This bill includes an amendment I offered at Committee to help
society with today's child care problems. It is a sad reality that
today's headlines are filled with stories that spring from the everyday
struggle of families to secure safe and dependable child care. This
problem is especially great for men and women who want to further their
education to make a better life for them and their family.
The trends in society and the American workforce show a necessity for
education beyond high school. Market demands require a higher level of
educational achievement than high school. This is near impossible to
achieve when reliable, quality child care is not available.
This bill includes this proposal to encourage a new public-private
partnership between institutions and businesses to develop solutions to
meet students' child care needs. This initiative is in the form of
competitive grants to higher education institutions that would go
directly to the institution to assist them in providing campus-based
child care service to low-income students.
[[Page H2527]]
This legislation does not mandate a Federal program for child care
that imposes some Washington-based requirements on local communities.
In fact, this bill combines the concept of state and local control of
education with the time-tested concept of the public-private
partnership. This bill makes it possible for local institutions and
businesses to work together to create their own program that meets the
needs of their own community, whatever they may be.
We need to help students solve the child care problem. And we need to
give institutions the means to put their proposals to the test. This
bill helps us do that!
conclusion
For all of these reasons, and many others that I do not have time to
discuss today, this legislation is critical to all students.
Let's pass this legislation.
Thank you.
Mr. STUMP. Mr. Chairman, I rise today to express my appreciation for
the provisions in H.R. 6 that put Montgomery GI Bill education benefits
on an equal footing with benefits provided under other programs.
Unfortunately, veterans are penalized when they apply for other
Federal education assistance benefits like Pell Grants.
Under current law, veterans education benefits are counted against
the amount of assistance a veteran may receive from other Federal
education benefit programs.
On the other hand, AmeriCorps education benefits don't reduce
assistance from other Federal education assistance programs.
Thus, veterans who serve their Nation in often-hostile environments
and at great risk to their lives are denied benefits solely due to
their military service, and that is not right.
This bill corrects that inequity.
Mr. Chairman, I congratulate Chairman Goodling, Subcommittee Chairman
McKeon, and their respective ranking Members, Mr. Clay and Mr. Kildee,
for the way they have responded to this problem.
I know they have dedicated a significant amount of scarce resources
to our veterans.
What they are doing will make a measurable difference in the lives of
veterans pursuing an education.
Mr. Chairman, I strongly urge my colleagues to support H.R. 6.
The CHAIRMAN. All time for general debate has expired.
Pursuant to the rule, the committee amendment in the nature of a
substitute printed in the bill, modified by the amendments printed in
part 1 of House Report 105-499, shall be considered as an original bill
for the purpose of amendment under the 5-minute rule by title, and each
title shall be considered read.
Before consideration of any other amendment, it shall be in order to
consider the amendment printed in part 2 of the report if offered by
the gentleman from Pennsylvania (Mr. Goodling) or his designee. That
amendment shall be considered read, shall be debatable for 20 minutes,
equally divided and controlled by the proponent and an opponent, shall
not be subject to amendment, and shall not be subject to a demand for
division of the question.
If that amendment is adopted, the bill, as amended, shall be
considered as an original bill for the purpose of further amendment.
No other amendment to the committee amendment in the nature of a
substitute is in order unless printed in the Congressional Record.
Those amendments shall be considered read.
The Chairman of the Committee of the Whole may postpone until a time
during further consideration in the Committee of the Whole a request
for a recorded vote on any amendment and may reduce to not less than 5
minutes the time for voting by electronic device on any postponed
question that immediately follows another vote by electronic device
without intervening business, provided that the time for voting by
electronic device on the first in any series of questions shall not be
less than 15 minutes.
{time} 2045
Amendment No. 1 Offered by Mr. Goodling
Mr. GOODLING. Mr. Chairman, pursuant to the rule, I offer an
amendment printed in Part 2 of the report.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Part 2 amendment printed in House Report 105-499 offered by
Mr. Goodling:
Page 8, line 5, strike ``is redesignated'' and insert ``is
amended by striking subsection (a), and by redesignating
subsection (b)''.
Page 23, line 21, insert ``or veterinary'' after
``medical''; and on lines 23 and 24, strike ``a graduate
medical school'' and insert ``such school''.
Page 24, strike lines 22 through 24 and insert the
following:
``(II) the institution has a clinical training program that
was approved by a State as of January 1, 1992, or the
institution's students complete their clinical training at an
approved veterinary school located in the United States.
Page 33, line 7, strike ``105(b)'' and insert ``105''.
Page 58, beginning on line 21, strike part E through page
68, line 11, and insert the following:
``PART E--TEACHER QUALITY ENHANCEMENT GRANTS
``SEC. 271. PURPOSE.
``The purposes of this part are--
``(1) to provide competitive grants to States for
assistance in strengthening the quality of the teaching force
by improving the academic knowledge of teachers in the
subject areas in which they teach;
``(2) to hold institutions of higher education with teacher
preparation programs accountable for preparing teachers who
are highly competent in the academic content areas in which
they plan to teach, including training in the effective uses
of technologies in the classroom; and
``(3) to recruit high quality individuals, including
individuals from other occupations, into the teaching force.
``SEC. 272. ELIGIBILITY.
``(a) Definitions.--For purposes of this part:
``(1) Eligible grant recipient.--The term `eligible grant
recipient' means--
``(A) other than for the purpose of section 273(b), a
Governor of a State, except that if, pursuant to the law or
constitution of such State, another individual, entity, or
agency in a State that is responsible for the teacher
certification and preparation activities contained in the
application, such term means that individual, entity, or
agency; and
``(B) for the purpose of section 273(b), an eligible
partnership.
``(2) Eligible partnership.--The term `eligible
partnership' means an entity consisting of an exemplary
private independent or State-supported public institution of
higher education which prepares teachers, and a local
educational agency, and which may also consist of the
eligible grant recipient, other institutions of higher
education, public charter schools, public and private
nonprofit elementary and secondary schools, or other public
and private nonprofit agencies or organizations.
``(b) Applications.--To be eligible to receive a grant
under this part, an eligible grant recipient shall, at the
time of the initial grant application, submit an application
to the Secretary that meets the requirements of this part.
``(c) Contents of Application.--Such application shall
include a description of how the eligible grant recipient
intends to use funds provided under this part and such other
information and assurances as the Secretary may require.
``SEC. 273. USE OF FUNDS.
``(a) General Activities.--The eligible grant recipient of
a State that receives a grant under this subpart shall use a
portion of such grant to carry out 1 or more of the following
activities:
``(1) Reforming State teacher certification requirements to
ensure that current and future teachers possess the necessary
academic content knowledge in the subject areas in which they
are certified and assigned to teach.
``(2) Providing prospective teachers alternatives to
schools of education through programs at colleges of arts and
sciences or at nonprofit organizations.
``(3) Funding programs which establish or expand
alternative routes to State certification for highly
qualified individuals, including mid-career professionals
from other occupations, paraprofessionals, and former
military personnel.
``(4) Implementing reforms which hold institutions of
higher education with teacher preparation programs
accountable for preparing teachers who are highly competent
in the academic content areas in which they plan to teach.
``(5) Developing and implementing effective mechanisms to
expeditiously remove incompetent or unqualified teachers.
``(6) Recruiting minorities, and others, into the teaching
and counseling professions, including education
paraprofessionals, former military personnel, and mid-career
professionals, by providing financial and other assistance
related to instruction, induction, mentoring, and support
services that include pre-service and in-service components,
to serve within schools which have--
``(A) a high percentage of children in poverty;
``(B) low retention rates for teachers; or
``(C) a high percentage of teachers teaching subjects for
which they are not qualified to teach.
``(b) Partnership Activities.--An eligible partnership that
receives a grant under this subpart shall use such funds to
carry out 1 or more of the following activities:
``(1) Implementing reforms which hold institutions of
higher education with teacher preparation programs
accountable for preparing teachers who are highly competent
in the academic content areas in which they plan to teach;
``(2) Creating opportunities for enhanced and ongoing
professional development which improves the academic content
knowledge of
[[Page H2528]]
teachers in the subject areas in which they are certified to
teach or in which they are working toward certification to
teach.
``(3) Providing programs designed to implement the
successful integration of technology into teaching and
learning.
``(4) Recruiting minorities, and others, into the teaching
and counseling professions, including education
paraprofessionals, former military personnel, and mid-career
professionals, by providing financial and other assistance
related to instruction, induction, mentoring, and support
services that include pre-service and in-service components,
to serve within schools which have--
``(A) a high percentage of children in poverty;
``(B) low retention rates for teachers; or
``(C) a high percentage of teachers teaching subjects for
which they are not qualified to teach.
``SEC. 274. COMPETITIVE AWARDS.
``(a) Competitive Grants.--
``(1) Applicability.--The Secretary shall make grants in
accordance with the requirements of this subsection for any
fiscal year for which the amount appropriated under section
276 does not equal or exceed $250,000,000.
``(2) Competitive basis for awards.--The Secretary shall
make annual grants under this subsection on a competitive
basis.
``(3) Peer review panel.--The Secretary shall provide the
applications submitted by eligible grant recipients under
section 272 to a peer review panel for evaluation. With
respect to each application, the peer review panel shall
initially recommend the application for funding or for
disapproval.
``(4) Priority.--In recommending applications to the
Secretary, the panel shall give priority to--
``(A) applications from States with proposals which promise
initiatives to reform State teacher certification
requirements which are designed to ensure that current and
future teachers possess the necessary academic content
knowledge in the subject areas in which they are certified to
teach or which include innovative reforms to hold
institutions of higher education with teacher preparation
programs accountable for preparing teachers who are highly
competent in the academic content areas in which they plan to
teach; and
``(B) eligible partnership applications which--
``(i) include the eligible grant recipient and demonstrate
a high degree of collaboration with the State agency
responsible for teacher certification and preparation; and
``(ii) include a local educational agency which includes a
school with--
``(I) a high percentage of children in poverty;
``(II) low retention rates for teachers; or
``(III) a high percentage of teachers teaching subjects for
which they are not qualified to teach.
``(5) Ranking of applications.--With respect to each
application recommended for funding, the panel shall assign
the application a rank, relative to other recommended
applications, based on the priority described in subsection
(c), the extent to which the application furthers the
purposes of this part, and the overall quality of the
application, based on the quality and scope of State-
supported strategies to improve quality of teacher
preparation and their teaching force.
``(6) Recommendation of amount.--With respect to each
application recommended for funding, the panel shall make a
recommendation to the Secretary with respect to the amount of
the grant that should be made. The Secretary shall use \1/3\
of the funds made available under this part to fund
applications submitted by eligible partnerships.
``(7) Secretarial selection.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall determine, based on the peer review panel's
recommendations, which applications shall receive funding and
the amounts of such grants. In determining grant amounts, the
Secretary shall take into account the total amount of funds
available for all grants under this part and the types of
activities proposed to be carried out.
``(B) Effect of ranking by panel.--In making grants under
this part, the Secretary shall select applications according
to the ranking of the applications by the peer review panel,
except in cases where the Secretary determines, for good
cause, that a variation from that order is appropriate.
``(b) Formula Grants.--
``(1) Allotment.--For any fiscal year for which the amount
appropriated to carry out this part exceeds $250,000,000, the
Secretary shall make allotments to the eligible grant
recipient of each State, pursuant to the formula described in
paragraph (2), to enable the eligible grant recipient to
carry out the activities under this part, including the
funding of eligible partnerships to carry out activities
described in section 273(b).
``(2) Allotment formula.--For any such fiscal year, an
eligible grant recipient from each State that submits an
application under section 272(a) shall receive an allotment
under this part in an amount that bears the same ratio to the
amount appropriated as the school age population ages 5
through 17 of the State bears to the school age population
ages 5 through 17 of all the States, except that no State
shall receive less than an amount equal to \1/4\ of 1 percent
of the total amount.
``(c) Additional Requirements.--
``(1) Matching requirement.--Each State receiving funds
under this part shall provide, from non-Federal sources, an
amount equal to \1/2\ of the amount of the grant in cash or
in kind to carry out the activities supported by the grant.
``(2) Limitation on administrative expenses.--An eligible
recipient that receives a grant under this part may use not
more than 2 percent of the grant funds for administrative
costs.
``(3) Reporting.--
``(A) In general.--An eligible grant recipient that
receives a grant under this section shall submit an
accountability report to the Secretary and the Committee on
Education and the Workforce of the House of Representatives
and the Committee on Labor and Human Resources of the Senate.
Such reports shall include a description of the degree to
which substantial progress has been made in meeting the
following goals:
``(i) Raising the State academic standards required to
enter the teaching profession.
``(ii) Increasing the percentage of classes taught in core
academic subject areas by teachers fully certified by the
State to teach in those subject areas.
``(iii) Decreasing shortages of qualified teachers in poor
urban and rural areas.
``(iv) Increasing opportunities for enhanced and ongoing
professional development which improves the academic content
knowledge of teachers in the subject areas in which they are
certified to teach or in which they are working toward
certification to teach.
``(B) Accountability of state institution of higher
education.--Prior to receiving funds under this part, an
eligible grant recipient shall demonstrate that at least 80
percent of graduates of each of the exemplary institutions of
higher education in any eligible partnership described in
section 273(a)(2) who enter the field of teaching pass all
applicable State qualification assessments of new teachers,
which must include assessments of each prospective teacher's
subject matter knowledge in the content area or areas in
which the teacher provides instruction. Prior to each
subsequent receipt of funds under this part, such State shall
demonstrate that 70 percent of the graduates of each
institution of higher education in the State have met such
goal and continue to progress to exceed such goal. Such
assessment shall be at least as rigorous as those in place on
the date of enactment of this Act and shall have qualifying
scores no lower than those in place on the date of enactment
of this Act.
``(C) Provision to peer review panel.--The Secretary shall
provide the reports submitted under subparagraph (A) to the
peer review panel convened under subsection (a)(3). The panel
shall use such accountability report in recommending
applications for subsequent funding under this section.
``(4) Teachers qualifications provided to parent upon
request.--Any local educational agency that participates as
an eligible recipient or partner under this part shall make
available, upon request and in an understandable and uniform
format, to any parent of a student attending any school in
the local educational agency, information regarding the
qualifications of the student's classroom teacher, both
generally and with regard to the subject matter in which the
teacher provides instruction.
``SEC. 275. LIMITATIONS.
``(a) Federal Control Prohibited.--Nothing in this part
shall be construed to permit, allow, encourage, or authorize
any Federal control over any aspect of any private,
religious, or home school, whether or not a home school is
treated as a private school or home school under State law.
This section shall not be construed to bar private,
religious, or home schools from participation in programs or
services under this part.
``(b) No Change in State Control Encouraged or Required.--
Nothing in this part shall be construed to encourage or
require any change in a State's treatment of any private,
religious, or home school, whether or not a home school is
treated as a private school or home school under State law.
``(c) National System of Teacher Certification
Prohibited.--Nothing in this part shall be construed to
permit, allow, encourage, or authorize any national system of
teacher certification.
``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of the fiscal
years 1999 through 2003.''.
Page 68, after line 11, insert the following new sections
(and redesignate the succeeding section and conform the table
of contents accordingly):
SEC. 206. CAMPUS SAFETY.
(a) Grants to Combat Violent Crimes Against Women on
Campuses.--Title II is further amended by adding at the end
the following new part:
``PART F--GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON CAMPUSES
``SEC. 281. GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON
CAMPUSES.
``(a) Grants Authorized.--
``(1) In general.--The Secretary is authorized to make
grants to institutions of higher education for use to provide
training to administrators, security personnel, and campus
personnel and student organizations for the purpose of
developing and strengthening effective security and
investigation strategies to combat violent crimes against
women on campuses, and to develop and strengthen victim
services in cases involving violent crimes against women on
campuses, which may include partnerships with local criminal
justice authorities and community-based victims services
agencies.
[[Page H2529]]
``(2) Award basis.--The Secretary shall award grants and
contracts under this section on a competitive basis.
``(3) Equitable participation.--The Secretary shall make
every effort to ensure the equitable participation of private
and public institutions of higher education and to ensure the
equitable geographic participation of such institutions in
the activities assisted under this part.
``(4) Priority.--In the award of grants and contracts under
this section, the Secretary shall give priority to
institutions of higher education or consortia of such
institutions that show the greatest need for the sums
requested.
``(b) Use of Grant Funds.--Funds provided under this part
may be used for the following purposes:
``(1) To provide training for campus security and college
personnel, including campus disciplinary or judicial boards,
that address the issues of sexual assaults, stalking, and
domestic violence.
``(2) To implement and operate education programs for the
prevention of violent crimes against women.
``(3) To develop, enlarge, or strengthen support services
programs including medical or psychological counseling for
victims of sexual offense crimes.
``(4) To create, disseminate, or otherwise provide
assistance and information about victims' options on and off
campus to bring disciplinary or other legal action.
``(5) To train campus administrators and campus security
personnel to more effectively identify and respond to violent
crimes against women on campus, including the crimes of
sexual assault, stalking, and domestic violence.
``(6) To develop and implement more effective campus
policies, protocols, orders, and services specifically
devoted to prevent, identify, and respond to violent crimes
against women on campus, including the crimes of sexual
assault, stalking, and domestic violence.
``(7) To develop, enlarge, or strengthen victim services
programs for local campuses and to improve delivery of victim
services on campuses.
``(8) To provide capital improvements (including improved
lighting and communications facilities but not including the
construction of buildings) on campuses to address violent
crimes against women on campus, including the crimes of
sexual assault, stalking, and domestic violence.
``(9) To support improved coordination between campus
administrators, campus security personnel, and local law
enforcement to reduce violent crimes against women on campus.
``(c) Applications.--
``(1) In general.--In order to be eligible to be awarded a
grant under this section for any fiscal year, an institution
of higher education shall submit an application to the
Secretary at such time and in such manner as the Secretary
shall prescribe.
``(2) Contents.--Each application submitted under paragraph
(1) shall--
``(A) describe the need for grant funds and the plan for
implementation for any of the purposes described in
subsection (b);
``(B) describe how the campus authorities shall consult and
coordinate with nonprofit and other victim services programs,
including sexual assault and domestic violence victim
services programs;
``(C) provide measurable goals and expected results from
the use of the grants funds;
``(D) provide assurances that the Federal funds made
available under this section shall be used to supplement and,
to the extent practical, increase the level of funds that
would, in the absence of Federal funds, be made available by
the applicant for the purpose described in this part; and
``(E) include such other information and assurances as the
Secretary reasonably determines to be necessary.
``(3) Compliance with campus crime reporting required.--No
institution of higher education shall be eligible for a grant
under this section unless such institution is in compliance
with the requirements of section 485(f) of this Act.
``(d) Reporting.--Not later than 180 days after the end of
the fiscal year for which grants are made under this part,
the Secretary shall submit to the committees of the House of
Representatives and the Senate responsible for issues
relating to higher education and crime, a report that
includes--
``(1) the number of grants and funds distributed under this
part;
``(2) a summary of the purposes for which these grants were
provided and an evaluation of their progress;
``(3) a statistical summary of the persons served,
detailing the nature of victimization, and providing data on
age, sex, race, ethnicity, disability, relationship to
offender, geographic distribution, and type of campus; and
``(4) an evaluation of the effectiveness of programs funded
under this part, including an evaluation based on the
reduction observed in crimes reported pursuant to section
485(f).
``(f) Grantee Reporting.--Upon completion of the grant or
contract period under this section, the grantee institution
or consortium of such institutions shall file a performance
report with the Secretary explaining the activities carried
out together with an assessment of the effectiveness of those
activities in achieving the purposes of this section. The
Secretary shall suspend funding for an approved application
if an applicant fails to submit an annual performance report.
``(g) Definitions.--In this part--
``(1) the term `domestic violence' includes acts or threats
of violence, not including acts of self-defense, committed by
a current or former spouse of the victim, by a person with
whom the victim shares a child in common, by a person who is
cohabitating with or has cohabitated with the victim, by a
person similarly situated to a spouse of the victim under the
domestic or family violence laws of the jurisdiction, or by
any other person against a victim who is protected from that
person's acts under the domestic or family violence laws of
the jurisdiction;
``(2) the term `sexual assault' means any conduct
proscribed by chapter 109A of title 18, United States Code,
whether or not the conduct occurs in the special maritime and
territorial jurisdiction of the United States or in a Federal
prison and includes both assaults committed by offenders who
are strangers to the victim and assaults committed by
offenders who are known or related by blood or marriage to
the victim; and
``(3) the term `victim services' means a nonprofit,
nongovernmental organization that assists domestic violence
or sexual assault victims, including campus women's centers,
rape crisis centers, battered women's shelters, and other
sexual assault or domestic violence programs including campus
counseling support and victim advocate organizations with
domestic violence, stalking, and sexual assault programs,
whether or not organized and staffed by students.
``(h) Authorization of Appropriations.--For the purpose of
carrying out this part, there are authorized to be
appropriated $10,000,000 for fiscal year 1999 and such sums
as may be necessary for each of the 4 succeeding fiscal
years.''.
Page 108, line 19, insert ``State agencies,'' after ``such
as''.
Page 132, line 15, strike ``computer-related careers'' and
insert ``careers in information technology''.
Page 135, line 12, strike ``September 30, 2001'' and insert
``the earlier of the date of enactment of the Higher
Education Amendments of 1998 or October 1, 1998''.
Page 141, beginning on line 22, strike paragraph (5)
through page 142, line 4, and insert the following:
``(5) interest earned on the Federal Fund during the first
3 years after the date of enactment of this section by a
limited number of guaranty agencies (not to exceed 10) that
demonstrate to the Secretary the potential for a negative
cash flow in the Operating Fund during the restructuring of
their operations in accordance with the requirements of this
section and section 422A.
Page 144, line 23, strike ``$30,000,000'' and insert
``$43,000,000''.
Page 145, line 16, strike ``$150,000,000'' and insert
``$215,000,000''.
Page 145, line 21, insert ``agency'' after ``guaranty''.
Page 148, strike lines 10 through 17 and insert the
following:
(3) Guaranty agency reserve level.--Section 428(c)(9) is
amended--
(A) in subparagraph (A), by striking ``.5 percent'' and
inserting ``0.25 percent''; and
(B) in subparagraph (C)--
(i) by striking ``80 percent pursuant to section
428(c)(1)(B)(ii)'' and inserting ``85 percent pursuant to
paragraph (1)(B)(i) of this subsection''; and
(ii) by striking ``30 working days'' and inserting ``45
working days''.
Page 149, beginning on line 23, strike ``presented that the
guaranty agency successfully brings'' and insert ``paid as a
result of the loan being brought''.
Page 150, beginning on line 8, strike ``the borrower'' and
all that follows through the period on line 10 and insert the
following: ``at least 12 months has elapsed between the date
the borrower became current in his or her payments and the
date the lender filed a subsequent default aversion
assistance request.''.
Page 153, strike lines 5 through 12 and insert the
following:
``(3) PLUS loans.--With respect to any loan under section
428B for which the first disbursement is made on or after
July 1, 1998, the applicable rate of interest shall, during
any 12-month period beginning on July 1 and ending on June
30, be determined on the preceding June 1 and be equal to the
lesser of--
``(A)(i) the bond equivalent rate of 91-day Treasury bills
auctioned at the final auction held prior to such June 1;
plus
``(ii) 3.1 percent; or
``(B) 9.0 percent.
``(4) Consolidation loans.--With respect to any
consolidation loan under section 428C for which the
application is received by an eligible lender on or after
October 1, 1998, the applicable rate of interest shall be at
an annual rate on the unpaid principal balance of the loan
that is equal to the lesser of--
``(A) the weighted average of the interest rates on the
loans consolidated, rounded to the nearest higher one-eighth
of one percent; or
``(B) 8.25 percent.
Page 154, line 8, after ``paragraph,'' insert ``and except
as provided in subparagraph (B),''.
Page 155, line 10, strike ``clause (iv)'' and insert
``clause (v)''.
Page 155, strike lines 12 through 23 and insert the
following:
``(iv) Consolidation loans.--In the case of any
consolidation loan for which the application is received by
an eligible lender on or
[[Page H2530]]
after October 1, 1998, and for which the applicable interest
rate is determined under section 427A(a)(4), clause (i)(III)
of this subparagraph shall be applied by substituting `3.1
percent' for `2.8 percent', subject to clause (v) of this
subparagraph.
``(v) Limitation on special allowances for PLUS and
consolidation loans.--In the case of PLUS loans made under
section 428B and disbursed on or after July 1, 1998, for
which the interest rate is determined under 427A(a)(3), a
special allowance shall not be paid for such loan unless the
rate determined under subparagraph (A) of such section
(without regard to subparagraph (B) of such section) exceeds
9.0 percent. In the case of consolidation loans made under
section 428C for which the application is received by an
eligible lender on or after October 1, 1998, and for which
the applicable interest rate is determined under section
427A(a)(4), a special allowance shall not be paid for such
loan unless the rate determined under subparagraph (A) of
such section (without regard to subparagraph (B) of such
section) exceeds 8.25 percent.''.
(2) Consolidation loans.--Section 428C(c)(1) (20 U.S.C.
1078-3) is amended--
(A) by striking everything preceding subparagraph (D) and
inserting the following:
``(1) Interest rate.--(A) Except as provided in
subparagraph (B), with respect to any loan made under this
section for which the application is received by an eligible
lender on or after October 1, 1998, the applicable interest
rate shall be determined under section 427A(a)(4).''; and
(B) by redesignating subparagraph (D) as subparagraph (B).
(3) Conforming amendment.--Section 438(b)(2)(C)(ii) is
amended by striking ``In the case'' and inserting ``Subject
to subparagraph (F), in the case''.
Page 156, strike line 21 and all that follows through page
157, line 5, and insert the following:
that sets forth a schedule for disbursement of the proceeds
of the loan in installments, consistent with the requirements
of section 428G.
Page 157, line 6, strike ``clause (ii) of''.
Page 164, strike lines 21 and 22 and insert the following:
``(2) Limitations on blanket certificate of guaranty.--(A)
An eligible lender may not make a loan to a borrower under
this section after such lender receives a notification from
the guaranty agency that the borrower is not an eligible
borrower.
``(B) A guaranty agency and eligible lender
Page 171, strike line 23 and all that follows through page
172, line 6, and insert the following:
statement that sets forth a schedule for disbursement of the
proceeds of the loan in installments, consistent with the
requirements of section 428G.''.
Page 172, after line 22, insert the following new
subsection (and redesignate the succeeding subsections
accordingly):
(c) Capitalization of Interest.--Section 428H(e)(2) is
amended to read as follows:
``(2) Capitalization of interest.--Interest on loans made
under this section for which payments of principal are not
required during the in-school and grace periods or for which
payments are deferred under sections 427(a)(2)(C) and
428(b)(1)(M) shall, if agreed upon by the borrower and the
lender--
``(A) be paid monthly or quarterly; or
``(B) be added to the principal amount of the loan by the
lender only--
``(i) when the loan enters repayment;
``(ii) at the expiration of a grace period, in the case of
a loan that qualifies for a grace period;
``(iii) at the expiration of a period of deferment; and
``(iv) when the borrower defaults.
Such capitalization of interest shall not be deemed to exceed
the annual insurable limit on account of the student.''.
Page 176, line 5, insert ``in accordance'' after ``note''.
Page 184, after line 16, insert the following new
subsections:
(d) Definition of Default.--
(1) Amendment.--Section 435(l) is amended--
(A) by striking ``180 days'' and inserting ``270 days'';
and
(B) by striking ``240 days'' and inserting ``330 days''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to loans for which the first day of
delinquency occurs on or after the date of enactment of this
Act.
(e) Cohort Default Rate: Rehabilitation.--Section
435(m)(2)(C) is amended by adding at the end the following
new sentences: ``Within 2 years after the date of enactment
of the Higher Education Amendments of 1998, the Secretary
shall, by regulation, require guaranty agencies to collect
data with respect to defaulted loans in a manner that will
permit the identification of any defaulted loan for which (i)
the borrower is currently making payments and has made not
less than 6 consecutive on-time payments by the end of such
following fiscal year, and (ii) a guaranty agency has renewed
the borrower's title IV eligibility as provided in section
428F(b). Upon a determination by the Secretary that such data
is available, the Secretary shall, by regulation, prescribe
the extent to which any such defaulted loan may be excluded
from the calculation of the cohort default rate under this
subsection.''.
Page 184, beginning on line 18, strike subsection (a)
through line 22 (and redesignate the succeeding subsections
accordingly).
Page 184, line 23, strike ``(b) Discharge.--''.
Page 203, after line 2, insert the following new paragraph
(and redesignate the succeeding paragraphs accordingly):
``(4) Consolidation loans.--Any Federal Direct
Consolidation loan for which the application is received on
or after October 1, 1998, shall bear interest at an annual
rate on the unpaid principal balance of the loan that is
equal to the lesser of--
``(i) the weighted average of the interest rates on the
loans consolidated, rounded to the nearest higher one-eighth
of one percent; or
``(ii) 8.25 percent.
Page 203, line 23, strike ``The amendments'' and insert
``Except as otherwise provided therein, the amendments''.
Page 220, line 14, strike ``and'' and after line 14 insert
the following new subparagraph (and redesignate the
succeeding subparagraph accordingly):
(F) in paragraph (3)(A)(i), by striking ``(H), or (I)'' and
inserting ``(H), (I), (J), or (K)''; and
Page 224, strike lines 15 though 21 and insert the
following:
``(6) Allowance for parents' negative adjusted available
income.--The allowance for parents' negative adjusted
available income is the amount, if any, by which the sum of
the amounts deducted under subparagraphs (A) through (F) of
paragraph (2) exceeds the sum of the parents' total income
(as defined in section 480) and the family contribution from
assets (as determined in accordance with subsection (c).''.
Page 227, line 17, strike ``1997-1998'' and insert ``1999-
2000''.
Page 227, line 25, strike ``1996'' and insert ``1998''.
Page 228, after line 2, insert the following new section
(and redesignate the succeeding sections and conform the
table of contents accordingly):
SEC. 452. SIMPLIFIED NEEDS TEST; ZERO EXPECTED FAMILY
CONTRIBUTION.
Section 479 is amended--
(1) in subsection (b)(3)--
(A) in the matter preceding subparagraph (A), by striking
``this paragraph'' and inserting ``this subsection, or
subsection (c), as the case may be,'';
(B) in subparagraph (A), by striking ``or'' at the end
thereof;
(C) by redesignating subparagraph (B) as subparagraph (C);
and
(D) by inserting after subparagraph (A) the following new
subparagraph:
``(B) a form 1040 (including any prepared or electronic
version of such form) required pursuant to the Internal
Revenue Code of 1986, except that such form shall be
considered a qualifying form only if the student or family
files such form in order to take a tax credit under section
25A of the Internal Revenue Code of 1986, and would otherwise
be eligible to file a form described in subparagraph(A);
or'';
(2) in subsection (c)--
(A) by amending paragraph (1)(A) to read as follows:
``(A) the student's parents file, or are eligible to file,
a form described in subsection (b)(3), or certify that they
are not required to file an income tax return and the student
files, or is eligible to file, such a form, or certifies that
the student is not required to file an income tax return;
and''; and
(B) by amending paragraph (2)(A) to read as follows:
``(A) the student (and the student's spouse, if any) files,
or is eligible to file, a form described in subsection
(b)(3), or certifies that the student (and the student's
spouse, if any) is not required to file an income tax return;
and''.
Page 231, line 15, strike ``and'', and after such line
insert the following new subparagraph (and redesignate the
succeeding subparagraph accordingly):
(C) by striking the second sentence and inserting the
following: ``The Secretary shall include on the form
developed under this subsection such data items as the
Secretary determines are appropriate for inclusion, selected
in consultation with States to assist in the awarding of
State financial assistance, except that in no case shall the
number of such data items be less than the number included on
the form on the date of enactment of the Higher Education
Amendments of 1998.''; and
Page 232, line 12, strike ``graph'' and insert ``graphs''.
Page 233, strike lines 6 through 18, and on line 19, strike
``No fee shall'' and insert the following:
``(C) No fee shall
Page 234, line 17, strike the close quotation marks and
following period and after such line insert the following new
paragraph:
``(6) Support to third party servicers and private software
providers.--The Secretary shall support private organizations
and consortia thereof in the development of software used by
eligible institutions for the administration of funds under
this title. The Secretary shall provide in a timely manner to
such organizations and consortia all necessary specifications
that data and software developed, produced, and distributed
(including any diskette, modem, or network communications)
must meet. These specifications shall contain record layouts
for required data and test cases that such organizations or
consortia may use to test the accuracy of its software. The
Secretary shall develop in advance of each processing cycle
an annual schedule for providing such specifications. The
Secretary shall, to the extent
[[Page H2531]]
practicable, use means of providing such support, including
conferences and other meetings, outreach, and technical
support mechanisms (including telephone support, training and
printed reference materials). The Secretary shall, from time
to time, solicit from such organizations and consortia means
of improving the support provided by the Secretary.''.
Page 235, line 12, strike ``and''; on line 17, strike the
period and insert ``; and''; and after line 17 insert the
following new paragraph:
(3) in paragraph (5), by striking ``Trust Territory of the
Pacific Islands'' and inserting ``the Federated States of
Micronesia, the Republic of the Marshall Islands, or the
Republic of Palau''.
Page 235, strike lines 18 through 20 and insert the
following:
(b) Termination of Eligibility.--Section 484(j) is amended
to read as follows:
``(j) Assistance Under Subparts 1 and 3, of Part A, and
Part C.--Notwithstanding any other provision of law, a
student shall be eligible until September 30, 2001, if
otherwise qualified, for assistance under subparts 1 and 3 of
part A, and part C, of this title, if the student is
otherwise qualified and--
``(1) is a citizen of the Federated States of Micronesia,
the Republic of the Marshall Islands, or the Republic of
Palau, and attends an institution of higher education in Guam
or a public or nonprofit private institution of higher
education in the Federated States of Micronesia, the Republic
of the Marshall Islands, or the Republic of Palau; or
``(2) meets the requirements of subsection (a)(5) and
attends a public or nonprofit private institution of higher
education in the Federated States of Micronesia, the Republic
of the Marshall Islands, or the Republic of Palau.''.
Page 236, line 2, after ``income,'' insert ``Federal income
taxes paid,''.
Page 245, line 17, strike the close quotation marks and
following period and after such line insert the following:
``(10) Nothing in this section shall require the reporting
or disclosure of privileged information.''.
Page 252, line 16, after the period insert the following:
Each application shall include--
``(1) a description of the institution or consortium's
consultation with a recognized accrediting agency or
association with respect to quality assurances for the
distance education programs to be offered;
``(2) a description of the statutory and regulatory
requirements described in subsection (b)(2) for which a
waiver is sought and the reasons for which the waiver is
sought;
``(3) a description of the distance education programs to
be offered;
``(4) a description of the students to whom distance
education programs will be offered;
``(5) an assurance that the institution or consortium will
offer full cooperation with the ongoing evaluations of the
demonstration program provided for in this section; and
``(6) such other information as the Secretary may require.
Page 252, line 18, insert ``of'' after ``sample''.
Page 253, strike lines 9 and 10 and insert the following:
``(A) the extent to which the institution or consortia of
institutions has met the goals set forth in its application
to the Secretary, including the measures of program quality
assurance;
Page 262, line 15, insert ``and'' after the semicolon, and
strike lines 16 through 20 and insert the following:
(I) by striking ``(J), and (L)'' and inserting ``and (K)'';
Page 306, strike line 14, and insert the following: ``this
part for''.
Page 335, after line 15, insert the following new section
(and conform the table of contents accordingly):
SEC. 808. PROCEDURES FOR CANCELLATIONS AND DEFERMENTS FOR
ELIGIBLE DISABLED VETERANS.
The Secretary shall, in consultation with the Secretary of
Veterans Affairs, develop and implement a procedure under
which Department of Veterans Affairs physicians shall provide
the certification and affidavits needed to enable eligible
disabled veterans to document their eligibility for
deferments and cancellations of student loans made, insured,
or guaranteed under this title. Not later than 6 months after
the date of the enactment of this Act, the Secretaries of
Education and Veterans Affairs shall jointly report to
Congress on the progress made in developing and implementing
this procedure.
Page 345, beginning on line 9, strike subsection (c) (and
redesignate the succeeding subsections accordingly).
Page 347, beginning on line 1, strike title X and insert
the following:
TITLE X--FACULTY RETIREMENT PROVISIONS
SEC. 1001. VOLUNTARY RETIREMENT INCENTIVE PLANS.
(a) In general.--Section 4 of the Age Discrimination in
Employment Act of 1967 (29 U.S.C. 623) is amended by adding
at the end the following:
``(m) Notwithstanding subsection (f)(2)(B), it shall not be
a violation of subsection (a), (b), (c), or (e) solely
because a plan of an institution of higher education (as
defined in section 1201(a) of the Higher Education Act of
1965 (20 U.S.C. 1141(a))) offers employees who are serving
under a contract of unlimited tenure (or similar arrangement
providing for unlimited tenure) supplemental benefits upon
voluntary retirement that are reduced or eliminated on the
basis of age, if--
``(1) such institution does not implement with respect to
such employees any age-based reduction or cessation of
benefits that are not such supplemental benefits, except as
permitted by other provisions of this Act;
``(2) such supplemental benefits are in addition to any
retirement or severance benefits which have been offered
generally to employees serving under a contract of unlimited
tenure (or similar arrangement providing for unlimited
tenure), independent of any early retirement or exit-
incentive plan, within the preceding 365 days; and
``(3) any employee who attains the minimum age and
satisfies all non-age-based conditions for receiving a
benefit under the plan has an opportunity lasting not less
than 180 days to elect to retire and to receive the maximum
benefit that could then be elected by a younger but otherwise
similarly situated employee, and the plan does not require
retirement to occur sooner than 180 days after such
election.''.
(b) Plans Permitted.--Section 4(i)(6) of the Age
Discrimination in Employment Act of 1967 (29 U.S.C.
623(i)(6)) is amended by adding after the word ``accruals''
the following: ``or it is a plan permitted by subsection
(m).''
(c) Construction.--Nothing in the amendment made by
subsection (a) shall affect the application of section 4 of
the Age Discrimination in Employment Act of 1967 (29 U.S.C.
623) with respect to--
(1) any plan described in subsection (m) of section 4 of
such Act (as added by subsection (a)), for any period prior
to enactment of such Act;
(2) any plan not described in subsection (m) of section 4
of such Act (as added by subsection (a)); or
(3) any employer other than an institution of higher
education (as defined in section 1201(a) of the Higher
Education Act of 1965).
(d) Effective Date.--
(1) In general.--This section shall take effect on the date
of enactment of this Act.
(2) Effect on causes of action existing before date of
enactment.--The amendment made by subsection (a) shall not
apply with respect to any cause of action arising under the
Age Discrimination in Employment Act of 1967 prior to the
date of enactment of this Act.
The CHAIRMAN. Pursuant to the rule, the gentleman from Pennsylvania
(Mr. Goodling) and a Member opposed each will control 10 minutes.
The Chair recognizes the gentleman from Pennsylvania (Mr. Goodling).
Mr. GOODLING. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, the manager's amendment makes several significant
changes to H.R. 6 as reported by the committee. We did not stop working
after we voted this out of committee. We continued working to try to
iron out some differences that had arisen during the markup.
The amendment reflects a bipartisan agreement with respect to an
issue in which Members on both sides of the aisle have expressed much
concern, the quality of our Nation's teachers. It is alarming to find
that nearly one-third of all high school math teachers and over one-
fifth of all high school English teachers in this country have neither
majored nor minored in those subjects. It is our intent to provide
support to efforts that many States have begun to undertake to improve
the quality and ability of classroom teachers, beginning with the
institution at which many of these teachers are prepared.
Provisions that were worked out in a bipartisan manner which are now
part of this amendment include: an increased emphasis on partnerships
consisting of a Governor of a participating State, exemplary schools of
education and local educational agencies; focusing the teacher
recruitment provisions on those schools most in need of quality
teachers, such as in poor urban and rural areas; and including a
trigger to change this program from a competitive to a formula grant
program if appropriations are over $250 million.
I look forward to the support of my colleagues for this compromise so
that we can help States really reform teacher preparation programs and
provide high-quality teachers for all of our States.
This amendment also includes a program to provide grants to combat
violent crimes against women on college campuses, which was discussed
by the committee during the markup. The program authorizes the
Secretary of Education to provide grant assistance to institutions of
higher education for use in providing training to administrators,
security personnel, campus personnel and student organizations in order
to strengthen security measures
[[Page H2532]]
and improve victim services for women who are victims of violent
crimes. However, institutions that fail to comply with the current
campus crime reporting requirements found in the Higher Education Act
will not be eligible for any assistance under this program.
We have made modifications to the development of the Free Application
for Federal Student Aid that were requested by States in order to
ensure that data items necessary to assist States in the awarding of
State financial assistance are included on the form.
We have established interest rates for consolidation loans made on or
after October 1, 1998, that will provide borrowers with an interest
rate based on the weighted average of their loans consolidated, capped
at a maximum rate of 8.25 percent. This new rate will afford students
additional interest rate relief, particularly for those students who
borrow Stafford loans at the new rate of 91-day Treasury bill plus 2.3
percent and consolidate those with other loans at higher interest
rates.
The amendment establishes clear application requirements for
institutions of higher education that wish to offer expanded distance
education programs to students. The application requirements are
designed to ensure that students are being provided quality education
through distance education program.
Finally, the amendment includes offsets from the Committee on
Education and the Workforce jurisdiction needed in order to bring H.R.
6 to the floor and provide Members with an assurance the bill will be
budget neutral.
I want to thank the gentleman from Georgia (Mr. Gingrich), the
gentleman from Texas (Mr. Armey) and the gentleman from Ohio (Mr.
Kasich) for their cooperation in this effort. Without their assistance,
it would have been impossible for us to be here today talking about a
bill to provide students the lowest interest rates in 17 years.
There are many more technical changes and corrections that I will not
review in detail. I want to thank my colleagues on the other side of
the aisle for their hard work and cooperation in putting this package
of amendments together, and I urge its adoption.
Mr. Chairman, I reserve the balance of my time.
Mr. KILDEE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise to urge my colleagues to join me in supporting
the manager's amendment that is now before us.
Mr. Chairman, this amendment makes several changes that significantly
improve the bill as it was reported out of committee. The changes in
the Teacher Quality Enhancement Grants are especially important.
The overall authorization of such sums and the provision that the
program will become a State grant when appropriations reach $250
million mean that the authorizers intend that this be a major teacher
initiative. The provision that partnerships involving institutions of
higher education and local education agencies receive one-third of the
funds means that we will have a ``ground up'' reform not only of
teaching but also in the recruitment of teachers.
The emphasis on serving school districts with a high level of
poverty, low teacher retention rates or a high percentage of teachers
teaching outside their specialization means we will be focusing funds
on those areas most in need.
The new grant program to combat violent crimes against women in
college campuses is a very important provision. I commend the
gentlewoman from California (Ms. Woolsey) for her deep commitment to
this issue and for her persistence in seeing it through to a most
successful conclusion.
The loan consolidation provision will give students the ability to
consolidate their outstanding loans at a weighted interest rate not to
exceed 8.25 percent. While these provisions could be improved, they
undoubtedly represent a considerable improvement over current law.
We have also significantly improved the faculty retirement
provisions. They now enjoy the support of both the college community
and organizations representing retired persons. These provisions have
required a considerable amount of work and give and take, and I am
exceptionally pleased at the result.
Mr. Chairman, I urge the passage of the manager's amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. GOODLING. Mr. Chairman, I yield back the balance of my time.
Mr. KILDEE. Mr. Chairman, I yield 1 minute to the gentleman from
Virginia (Mr. Scott).
Mr. SCOTT. Mr. Chairman, I would like to thank my friend from
Michigan for yielding this time to me, and I want to express my thanks
to the chairman and ranking members of the full committee and
subcommittee for agreeing to include in the manager's amendment an
amendment I offered during full committee consideration. This amendment
will help improve the accuracy and reliability of student loan data and
further reduce the rate of student loan defaults.
Many schools have made progress in decreasing the rate of loan
defaults. My amendment will encourage more vigorous efforts by schools
and the lending community to bring defaulters back into repayment
status through a process called loan rehabilitation. The result will be
that more schools will be able to participate in the loan program and
more students will be able to achieve their dreams by attending
college.
Mr. Chairman, I want to thank our committee leadership for
accommodating this request and working with me to ensure that this
amendment was incorporated in H.R. 6 through the manager's amendment.
Mr. KILDEE. Mr. Chairman, I yield 2 minutes to the gentleman from New
Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his
remarks.)
Mr. ANDREWS. Mr. Chairman, I would like to thank the ranking member
for yielding this time to me, and I rise in support of the manager's
amendment.
I would like to thank the chairman and the subcommittee chairman and
the ranking members for their cooperation in solving what I believe is
a significant problem with respect to the age discrimination law by
including in the manager's amendment an excellent provision which will
permit institutions around the country to offer early retirement
incentive packages to members of the faculty at those universities.
I think this is an excellent piece of legislation that accomplishes
three important objectives.
First of all, it is very fair and balanced and treats the members of
the faculty in a very fair and evenhanded way. It is very important to
note that everyone under this plan will receive full health benefits,
and it is purely voluntary with respect to participation.
Second, this is an important cost-saving mechanism for universities
and institutions around the country. I believe it is a very solid first
step toward the goal of the gentleman from California (Mr. McKeon) of
trying to make college more affordable by addressing the issue of
college cost inflation.
Third, I believe that this is an important mechanism for the
recruitment of new young faculty. Particularly, I believe this will
open the tenure track to many women and minority faculty who have not
had the opportunity to advance up through the ranks in prior years.
In summation, Mr. Chairman, I would like to thank those who have
worked with us on making this provision a reality, and I urge support
of this amendment in its entirety.
Mr. KILDEE. Mr. Chairman, I urge a yes vote, and I yield back the
balance of my time.
The CHAIRMAN. All time has expired.
The question is on the amendment offered by the gentleman from
Pennsylvania (Mr. Goodling).
The amendment was agreed to.
The CHAIRMAN. The Chair announces that there are four sections
preceding title I.
The Clerk will designate section 1.
The text of section 1 is as follows:
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Higher Education Amendments
of 1998''.
[[Page H2533]]
The CHAIRMAN. Are there any amendments to section 1?
If not, the Clerk will designate section 2.
The text of section 2 is as follows:
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. General effective date.
TITLE I--GENERAL PROVISIONS
Part A--Extension and Revision of General Provisions
Sec. 101. Redesignation and transfer of provisions.
Sec. 102. Definitions.
Sec. 103. Regulatory reform.
Part B--Performance-based Organization for the Delivery of Federal
Student Financial Assistance.
Sec. 111. Performance-based organization for the delivery of Federal
student financial assistance.
TITLE II--POSTSECONDARY EDUCATION IMPROVEMENT PROGRAMS
Sec. 201. Urban community service.
Sec. 202. Fund for the Improvement of Postsecondary Education.
Sec. 203. Grants to States for workplace and community transition
training for incarcerated youth offenders.
Sec. 204. Advanced placement fee payment program.
Sec. 205. Teacher quality enhancement grants.
Sec. 206. Additional repeal.
TITLE III--INSTITUTIONAL AID
Sec. 301. Strengthening institutions.
Sec. 302. Historically black colleges and universities.
Sec. 303. Minority science and engineering improvement program.
Sec. 304. General provisions.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students
Sec. 401. Pell grants.
Sec. 402. Federal TRIO programs.
Sec. 403. National early intervention and partnership program.
Sec. 404. Repeals.
Sec. 405. Establishment of new programs.
Sec. 406. Federal supplemental educational opportunity grants.
Sec. 407. Grants to States for State student incentives.
Sec. 408. Special programs for students whose families are engaged in
migrant and seasonal farmwork.
Sec. 409. Byrd scholarships.
Part B--Federal Family Education Loan Program
Sec. 411. Limitation repealed.
Sec. 412. Advances to reserve funds.
Sec. 413. Guaranty agency reforms.
Sec. 414. Scope and duration of program.
Sec. 415. Limitations on individual federally insured loans and Federal
loan insurance.
Sec. 416. Applicable interest rates.
Sec. 417. Federally guaranteed student loans.
Sec. 418. Voluntary agreements with guaranty agencies.
Sec. 419. Federal consolidation loans.
Sec. 420. Disbursement.
Sec. 421. Unsubsidized Stafford loans.
Sec. 422. Repeal of loan forgiveness.
Sec. 423. Legal powers and responsibilities.
Sec. 424. Student loan information.
Sec. 425. Definitions.
Sec. 426. Discharge.
Sec. 427. Cancellation of loans for certain public service.
Sec. 428. Debt management options.
Sec. 429. Special allowances.
Part C--Federal Work-Study Programs
Sec. 435. Amendments to part C.
Part D--William D. Ford Federal Direct Loan Program
Sec. 436. Selection of institutions.
Sec. 437. Terms and conditions.
Sec. 438. Contracts.
Sec. 439. Funds for administrative expenses.
Sec. 440. Authority to sell loans.
Sec. 441. Cancellation of loans for certain public service.
Part E--Federal Perkins Loans
Sec. 445. Amendments to part E.
Part F--Need Analysis
Sec. 446. Cost of attendance.
Sec. 447. Data elements.
Sec. 448. Family contribution for dependent students.
Sec. 449. Family contribution for independent students without
dependents other than a spouse.
Sec. 450. Family contribution for independent students with dependents
other than a spouse.
Sec. 451. Regulations; updated tables and amounts.
Sec. 452. Discretion of student financial aid administrators.
Sec. 453. Treatment of other financial assistance.
Part G--General Provisions
Sec. 461. Definitions.
Sec. 462. Master calendar.
Sec. 463. Forms and regulations.
Sec. 464. Student eligibility.
Sec. 465. State court judgments.
Sec. 466. Information for students.
Sec. 467. National student loan data system.
Sec. 468. Program participation agreements.
Sec. 469. Quality assurance and regulatory simplification.
Sec. 470. Distance education demonstration programs.
Sec. 471. Garnishment requirements.
Sec. 472. Administrative subpoena authority.
Sec. 473. Advisory committee on student financial assistance.
Sec. 474. Meetings and negotiated rulemaking.
Part H--Program Integrity
Sec. 476. State postsecondary review program.
Sec. 477. Accrediting agency recognition.
Sec. 478. Eligibility and certification procedures.
Sec. 479. Program review and data.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 501. Establishment of new title V.
TITLE VI--INTERNATIONAL AND GRADUATE EDUCATION PROGRAMS
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for international public policy.
Sec. 604. General provisions.
Sec. 605. Transfer and reauthorization of graduate assistance in areas
of national need program.
TITLE VII--CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC
FACILITIES
Sec. 701. Extension of prior rights and obligations.
Sec. 702. Repeal of part A.
Sec. 703. Extension of authorization of part B.
Sec. 704. Extension of authorization of part C.
TITLE VIII--ADDITIONAL PROVISIONS
Sec. 801. Study of transfer of credits.
Sec. 802. Study of market mechanisms in Federal student loan programs.
Sec. 803. Improvements in market information and public accountability
in higher education.
Sec. 804. Differential regulation.
Sec. 805. Annual report on cost of higher education.
Sec. 806. Repeals of previous higher education amendments provisions.
Sec. 807. Limitation.
TITLE IX--AMENDMENTS TO OTHER LAWS
Part A--Education of the Deaf Act
SUBPART 1--GALLAUDET UNIVERSITY
Sec. 901. Board of Trustees membership.
Sec. 902. Elementary and secondary education programs.
Sec. 903. Agreement with Gallaudet University.
SUBPART 2--NATIONAL INSTITUTE FOR THE DEAF
Sec. 911. Agreement for the National Technical Institute for the Deaf.
SUBPART 3--GENERAL PROVISIONS
Sec. 921. Definitions.
Sec. 922. Audits.
Sec. 923. Reports.
Sec. 924. Monitoring, evaluation, and reporting.
Sec. 925. Responsibility of the liaison.
Sec. 926. Federal endowment programs.
Sec. 927. Scholarship program.
Sec. 928. Oversight and effect of agreements.
Sec. 929. International students.
Sec. 930. Authorization of appropriations.
Part B--Extension and Revision of Indian Higher Education Programs
Sec. 951. Tribally controlled colleges and universities.
Sec. 952. Reauthorization of provisions from Higher Education
Amendments of 1992.
Sec. 953. Reauthorization of Navajo Community College Act.
TITLE X--FACULTY RETIREMENT PROVISIONS
Sec. 1001. Voluntary retirement incentive plans.
The CHAIRMAN. Are there any amendments to section 2?
If not, the Clerk will designate section 3.
The text of section 3 is as follows:
SEC. 3. REFERENCES.
Except as otherwise expressly provided, whenever in this
Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
The CHAIRMAN. Are there any amendments to section 3?
If not, the Clerk will designate section 4.
The text of section 4 is as follows:
SEC. 4. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this Act or the amendments
made by this Act, the amendments made by this Act shall take
effect on October 1, 1998.
The CHAIRMAN. Are there any amendments to section 4?
If not, the Clerk will designate title I.
The text of title I is as follows:
TITLE I--GENERAL PROVISIONS
PART A--EXTENSION AND REVISION OF GENERAL PROVISIONS
SEC. 101. REDESIGNATION AND TRANSFER OF PROVISIONS.
(a) In General.--
(1) Repeal of title i.--Title I (20 U.S.C. 1001 et seq.) is
repealed.
(2) Repeal of title xii provisions.--The following sections
of title XII are repealed: sections 1206, 1211, and 1212 (20
U.S.C. 1145a, 1145e, 1145f).
(3) Redesignations.--
(A) Title XII is redesignated as title I.
[[Page H2534]]
(B) Sections 1201, 1202, and 1203 (20 U.S.C. 1141, 1142,
1143) are redesignated as sections 101, 102, and 103,
respectively.
(C) Section 1204(b), as redesignated by section 251 of the
Higher Education Amendments of 1968 (20 U.S.C. 1144(b); 82
Stat. 1042), is redesignated as section 104.
(D) Section 1204, as added by section 1201 of the Education
Amendments of 1980 (20 U.S.C. 1144a; 94 Stat. 1495), is
redesignated as section 105.
(E) Sections 1205, 1207, 1208, 1209, 1210, and 1213 (20
U.S.C. 1145, 1145b, 1145c, 1145d, 1145d-1, and 1145g) are
redesignated as sections 106 through 111, respectively.
(4) Transfer.--Title I (including sections 101 through
111), as redesignated by paragraph (3), is transferred to
immediately follow the short title of the Higher Education
Act of 1965 (20 U.S.C. 1001 note).
(b) Internal Cross-References.--The Higher Education Act of
1965 is amended--
(1) in section 106 (as redesignated by subsection (a)(3)),
by striking ``481(a)'' and inserting ``101(a)'';
(2) in section 485(f)(1)(I), by striking ``section 1213''
and inserting ``section 111'';
(3) in section 498(j)(2), by striking ``section
1201(a)(2)'' and inserting ``section 101(a)(2)'';
(4) in section 591(d)(2), by striking ``section 1201(a)''
and inserting ``section 101(a)(1)''; and
(5) in section 631(a)(8), by striking ``section 1201(a)''
each place it appears and inserting ``section 101(a)(1)''.
(c) Conforming Amendments.--
(1) Title 10, united states code.--Sections 2193(c)(1) and
2199(2) of title 10, United States Code, are each amended by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(2) Title 18, united states code.--Section 207(j)(2)(B) of
title 18, United States Code, is amended by striking
``1201(a)'' and inserting ``101(a)(1)''.
(3) Title 39, united states code.--Section 3626(b)(3) of
title 39, United States Code, is amended by striking
``1201(a) of the Higher Education Act of 1965 (20 U.S.C.
1141(a))'' and inserting ``101(a)(1) of the Higher Education
Act of 1965''.
(4) Anti-drug abuse act of 1988.--Section 3601(7) of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7)) is amended
by striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(5) Cranston-gonzalez national affordable housing act.--
Section 457(9) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12899f(9)) is amended by striking
``1201(a)'' and inserting ``101(a)(1)''.
(6) Department of state authorization act, fiscal years
1984 and 1985.--Section 803(1) of the Department of State
Authorization Act, Fiscal Years 1984 and 1985 (22 U.S.C.
4502(1)) is amended by striking ``1201(a)'' and inserting
``101(a)(1)''.
(7) Education for economic security act.--Section 3(6) of
the Education for Economic Security Act (20 U.S.C. 3902(6))
is amended by striking ``1201(a)'' and inserting
``101(a)(1)''.
(8) Elementary and secondary education act of 1965.--The
Elementary and Secondary Education Act of 1965 is amended--
(A) in section 7501(4) (20 U.S.C. 7601(4)) by striking
``1201(a)'' and inserting ``101(a)(1)''; and
(B) in section 14101(17) (20 U.S.C. 8801(17)), by striking
``1201(a)'' and inserting ``101(a)(1)''.
(9) Federal agriculture improvement and reform act of
1996.--Section 922 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 2279c) is amended in subsections
(a)(1)(B) and (b)(1) by striking ``1201 of the Higher
Education Act of 1965 (20 U.S.C. 1141)'' and inserting
``101(a)(1) of the Higher Education Act of 1965''.
(10) Follow through act.--Section 670G(5) of the Follow
Through Act (42 U.S.C. 9877(5)) is amended by striking ``1201
of the Higher Education Act of 1965'' and inserting
``101(a)(1) of the Higher Education Act of 1965''.
(11) Food and agriculture act of 1977.--Section
1417(h)(1)(A) of the Food and Agriculture Act of 1977 (7
U.S.C. 3152(h)(1)(A)) is amended by striking ``1201(a) of the
Higher Education Act of 1965 (20 U.S.C. 1141(a))'' and
inserting ``101(a)(1) of the Higher Education Act of 1965''.
(12) Foreign relations authorization act, fiscal years 1986
and 1987.--Section 603(d) of the Foreign Relations
Authorization Act, Fiscal Years 1986 and 1987 (20 U.S.C.
4703(d)) is amended by striking ``1201(a)'' and inserting
``101(a)(1)''.
(13) General education provisions act.--Section
429(d)(2)(B)(ii) of the General Education Provisions Act (20
U.S.C. 1228c(d)(2)(B)(ii)) is amended by striking ``1201(a)''
and inserting ``101(a)(1)''.
(14) Harry s truman memorial scholarship act.--Section 3(4)
of the Harry S Truman Memorial Scholarship Act (20 U.S.C.
2002(4)) is amended by striking ``1201(a)'' and inserting
``101(a)(1)''.
(15) Head start act.--Section 649(c)(3) of the Head Start
Act (42 U.S.C. 9844(c)(3)) is amended by striking ``1201(a)
of the Higher Education Act of 1965 (20 U.S.C. 1141(a))'' and
inserting ``101(a)(1) of the Higher Education Act of 1965''.
(16) Higher education amendments of 1992.--Section
1371(a)(1)(B) of the Higher Education Amendments of 1992 (25
U.S.C. 3371(a)(1)(B)) is amended by striking ``1201(a)'' and
inserting ``101(a)(1)''.
(17) Intelligence authorization act, fiscal year 1992.--
Section 808(3) of the Intelligence Authorization Act, Fiscal
Year 1992 (20 U.S.C. 1908(3)) is amended by striking
``1201(a) of the Higher Education Act of 1965 (20 U.S.C.
1141(a))'' and inserting ``101(a)(1) of the Higher Education
Act of 1965''.
(18) Job training partnership act.--The Job Training
Partnership Act is amended--
(A) in section 4(12) (29 U.S.C. 1503(12)), by striking
``1201(a)'' and inserting ``101(a)(1)''; and
(B) in section 141(d)(3)(B) (29 U.S.C. 1551(d)(3)(B)), by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(19) Justice system improvement act of 1979.--Section
901(a)(17) of the Justice System Improvement Act of 1979 (42
U.S.C. 3791(a)(17)) is amended by striking ``1201(a) of the
Higher Education Act of 1965 (20 U.S.C. 1141(a))'' and
inserting ``101(a)(1) of the Higher Education Act of 1965''.
(20) Mutual educational and cultural exchange act of
1961.--Section 112(a)(8) of the Mutual Educational and
Cultural Exchange Act of 1961 (22 U.S.C. 2460(a)(8)) is
amended by striking ``1201(a) of the Higher Education Act of
1965 (20 U.S.C. 1141(a))'' and inserting ``101(a)(1) of the
Higher Education Act of 1965''.
(21) National and community service act of 1990.--Sections
101(13) and 166(6) of the National and Community Service Act
of 1990 (42 U.S.C. 12511(13); 12626(6)) are each amended by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101 of the Higher Education
Act of 1965''.
(22) National defense authorization act for fiscal year
1987.--Section 1403(4) of the National Defense Authorization
Act for Fiscal Year 1987 (20 U.S.C. 4702(4)) is amended by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(23) National defense authorization act for fiscal year
1993.--The National Defense Authorization Act for Fiscal Year
1993 is amended in section 4451(b)(1) (10 U.S.C. 2701 note)
by striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(24) National defense authorization act for fiscal years
1992 and 1993.--Section 3132(b)(1) of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (42 U.S.C.
7274e(b)(1)) is amended by striking ``1201(a) of the Higher
Education Act of 1965 (20 U.S.C. 1141(a))'' and inserting
``101(a)(1) of the Higher Education Act of 1965''.
(25) National defense authorization act for fiscal year
1994.--The National Defense Authorization Act for Fiscal Year
1994 is amended--
(A) in section 841(c)(2) (10 U.S.C. 2324(2) note), by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965'';
(B) in section 1333(i)(3) (10 U.S.C. 2701 note), by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''; and
(C) in section 1334(k)(3) (10 U.S.C. 2701 note), by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(26) National education statistics act of 1994.--Section
402(c)(3) of the National Education Statistics Act of 1994
(20 U.S.C. 9001(c)(3)) is amended by striking ``1201(a)'' and
inserting ``101(a)(1)''.
(27) Older americans act of 1965.--Section 102(32) of the
Older Americans Act of 1965 (42 U.S.C. 3002(32)) is amended
by striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(28) Omnibus parks and public lands management act of
1996.--Section 1007(c)(5) of the Omnibus Parks and Public
Lands Management Act of 1996 (16 U.S.C. 698u-5) is amended by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(29) Public law 85 of the 67th congress.--Public Law 85 of
the 67th Congress (42 Stat. 208; 25 U.S.C. 13), popularly
referred to as the Snyder Act, is amended by striking
``1201'' and inserting ``101(a)(1)''.
(30) Communication act of 1934.--Section 223(h)(4) of the
Communication Act of 1934 (47 U.S.C. 223(h)(4)) is amended by
striking ``1201 of the Higher Education Act of 1965 (20
U.S.C. 1141)'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(31) Federal water pollution control act.--Section
112(a)(1) of the Federal Water Pollution Control Act (33
U.S.C. 1262(a)(1)) is amended by striking ``1201'' and
inserting ``101(a)(1)''.
(32) Carl d. perkins vocational and applied technology
education act.--Section 347(2)(A) of the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C.
2394(2)(A)) is amended by striking ``1201(a)'' and inserting
``101(a)(1)''.
(33) Energy policy and conservation act.--Section
362(f)(5)(A) of the Energy Policy and Conservation Act (42
U.S.C. 6322(f)(5)(A)) is amended by striking ``1201(a) of the
Higher Education Act of 1965 (20 U.S.C. 1141(a))'' and
inserting ``101(a)(1) of the Higher Education Act of 1965''.
(34) James madison memorial fellowship act.--Section 815 of
the James Madison Memorial Fellowship Act (20 U.S.C. 4514) is
amended--
(A) in paragraph (3), by striking ``1201(a)'' and inserting
``101(a)(1)''; and
(B) in paragraph (4), by striking ``1201(d)'' and inserting
``101(a)(1)''.
(35) Rehabilitation act of 1973.--Sections 7(32) and
101(a)(7)(A)(iv)(II) of the Rehabilitation Act of 1973 (29
U.S.C. 706(32); 29 U.S.C. 721(a)(7)(A)(iv)(II)) are each
amended by striking ``1201(a) of the Higher Education Act of
1965
[[Page H2535]]
(20 U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(36) Technology related assistance for individuals with
disabilities act of 1988.--Section 3(8) of the Technology
Related Assistance for Individuals with Disabilities Act of
1988 (29 U.S.C. 2202(8)) is amended by striking ``1201(a) of
the Higher Education Act of 1965 (20 U.S.C. 1141(a))'' and
inserting ``101(a)(1) of the Higher Education Act of 1965''.
(37) Tribally controlled community college assistance act
of 1978.--The Tribally Controlled Community College
Assistance Act of 1978 is amended--
(A) in section 2(a)(5) (25 U.S.C. 1801(a)(5)), by striking
``1201(a)'' and inserting ``101(a)(1)''; and
(B) in section 113(b)(2) (25 U.S.C. 1813(b)(2)), by
striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''.
(38) Violent crime control and law enforcement act of
1994.--The Violent Crime Control and Law Enforcement Act of
1994 is amended--
(A) in sections 200103 and 200202 (42 U.S.C. 14092; 14111),
by striking ``1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a))'' and inserting ``101(a)(1) of the Higher
Education Act of 1965''; and
(B) in section 30401(b) (42 U.S.C. 13791(b)), by striking
``a public'' through ``that Act'' and inserting ``an
elementary school as defined in section 14101(14) of the
Elementary and Secondary Education Act of 1965, and a
secondary school as defined by section 14101(25) of such Act,
which are public institutions''.
(39) School-to-work opportunities act of 1994.--Section 4
of the School-to-Work Opportunities Act of 1994 (20 U.S.C.
6103) is amended--
(A) in paragraph (11)(B)(viii), by striking ``section
481(b)'' and inserting ``section 101(a)(3)''; and
(B) in paragraph (12), by striking ``section 481'' and
inserting ``section 101(a)(2)''.
(40) National and community service act of 1990.--Section
148(g) of the National and Community Service Act of 1990 (42
U.S.C. 12604(g)) is amended by striking ``section 481(a) of
the Higher Education Act of 1965 (20 U.S.C. 1088(a))'' and
inserting ``section 101(a)(2) of the Higher Education Act of
1965''.
SEC. 102. DEFINITIONS.
(a) Institution of Higher Education.--Section 101 (as
redesignated by section 101(a)(3) of this Act) is amended by
striking subsections (a) and (b) and inserting the following:
``(a) Institution of Higher Education.--
``(1) In general.--Subject to paragraphs (2) through (4) of
this subsection:
``(A) Principal criteria.--The term `institution of higher
education' means an educational institution in any State
that--
``(i) admits as regular students only persons having a
certificate of graduation from a school providing secondary
education, or the recognized equivalent of such a
certificate;
``(ii) is legally authorized within such State to provide a
program of education beyond secondary education;
``(iii) provides an educational program for which it awards
a bachelor's degree or provides not less than a two-year
program that is acceptable for full credit toward such a
degree;
``(iv) is a public or other nonprofit institution; and
``(v) is accredited by a nationally recognized accrediting
agency or association, or if not so accredited, is an
institution that has been granted preaccreditation status
by such an agency or association that has been recognized
by the Secretary for the granting of preaccreditation
status, and the Secretary has determined that there is
satisfactory assurance that the institution will meet the
accreditation standards of such an agency or association
within a reasonable time.
``(B) Additional institutions included.--The term
`institution of higher education' also includes--
``(i) any school that provides not less than a one-year
program of training to prepare students for gainful
employment in a recognized occupation and that meets the
provision of clauses (i), (ii), (iv), and (v) of subparagraph
(A); and
``(ii) a public or nonprofit private educational
institution in any State that, in lieu of the requirement in
subparagraph (A)(i), admits as regular students persons who
are beyond the age of compulsory school attendance in the
State in which the institution is located.
``(C) List of accrediting agencies.--For purposes of this
subsection, the Secretary shall publish a list of nationally
recognized accrediting agencies or associations that he
determines, pursuant to subpart 2 of part H of title IV of
this Act, to be reliable authority as to the quality of the
education or training offered.
``(2) Definition for purposes of title iv programs.--
``(A) Inclusion of additional institutions.--Subject to
subparagraphs (B) through (D) of this paragraph, the term
`institution of higher education' for purposes of title IV of
this Act includes, in addition to the institutions covered by
the definition in paragraph (1) of this subsection--
``(i) a proprietary institution of higher education;
``(ii) a postsecondary vocational institution; and
``(iii) only for the purposes of part B of title IV, an
institution outside the United States that is comparable to
an institution of higher education as defined in paragraph
(1) of this subsection and that has been approved by the
Secretary for the purpose of part B of title IV.
``(B) Institutions outside the united states.--
``(i) For the purpose of qualifying as an institution under
subparagraph (A)(iii) of this paragraph, 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 paragraph (1)
of this subsection. In the case of a graduate medical school
outside the United States, such criteria shall include a
requirement that a student attending a graduate medical
school outside the United States is ineligible for loans
made, insured, or guaranteed under part B of this title
unless--
``(I)(aa) at least 60 percent of those enrolled 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 (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's clinical training program was
approved by a State as of January 1, 1992.
``(ii) For the purpose of qualifying as an institution
under subparagraph (A)(iii) of this paragraph, the Secretary
shall establish an advisory panel of medical experts that
shall--
``(I) evaluate the standards of accreditation applied to
applicant foreign medical schools; and
``(II) determine the comparability of those standards to
standards for accreditation applied to United States medical
schools.
If such accreditation standards are determined not to be
comparable, the foreign medical school shall be required to
meet the requirements of paragraph (1) of this subsection.
``(iii) The failure of an institution outside the United
States to provide, release, or authorize release to the
Secretary of such information as may be required by clause
(i) of this subparagraph shall render such institution
ineligible for the purpose of part B of title IV.
``(iv) If, pursuant to this subparagraph, an institution
loses eligibility to participate in the programs under title
IV, then a student enrolled at such institution may,
notwithstanding such loss of eligibility, continue to be
eligible to receive a loan under part B while attending such
institution for the academic year succeeding the academic
year in which such loss of eligibility occurred.
``(C) Limitations based on course of study or enrollment.--
An institution shall not be considered to meet the definition
of an institution of higher education in subparagraph (A) of
this paragraph if such institution--
``(i) offers more than 50 percent of such institution's
courses by correspondence, unless the institution is an
institution that meets the definition in section 521(4)(C) of
the Carl D. Perkins Vocational and Applied Technology
Education Act;
``(ii) enrolls 50 percent or more of its students in
correspondence courses, unless the institution is an
institution that meets the definition in such section, except
that the Secretary, at the request of such institution, may
waive the applicability of this clause to such institution
for good cause, as determined by the Secretary in the case of
an institution of higher education that provides a 2-year or
4-year program of instruction for which the institution
awards an associate or baccalaureate degree;
``(iii) has a student enrollment in which more than 25
percent of the students are incarcerated, except that the
Secretary may waive the prohibition of this clause for a
nonprofit institution that provides a 4-year or a 2-year
program of instruction (or both) for which it awards a
bachelor's or associate's degree or diploma, respectively; or
``(iv) has a student enrollment in which more than 50
percent of the students do not have a high school diploma or
its recognized equivalent and does not provide a 4-year or a
2-year program of instruction (or both) for which it awards a
bachelor's or associate's degree, respectively, except that
the Secretary may waive the limitation contained in this
clause if a nonprofit institution demonstrates to the
satisfaction of the Secretary that it exceeds such limitation
because it serves, through contracts with Federal, State, or
local government agencies, significant numbers of students
who do not have a high school diploma or its recognized
equivalent.
``(D) Limitations based on management.--An institution
shall not be considered to meet the definition of an
institution of higher education in subparagraph (A) of this
paragraph if--
``(i) the institution, or an affiliate of the institution
that has the power, by contract or ownership interest, to
direct or cause the direction of the management or policies
of the institution, has filed for bankruptcy; or
``(ii) the institution, its owner, or its chief executive
officer has been convicted of, or has pled nolo contendere or
guilty to, a crime involving the acquisition, use, or
expenditure of funds under title IV, or has been judicially
determined to have committed fraud involving funds under
title IV.
``(E) Certification.--The Secretary shall certify an
institution's qualification as an institution of higher
education in accordance with the requirements of subpart 2 of
part H.
``(F) Loss of eligibility.--An institution of higher
education shall not be considered to meet the definition of
an institution of higher education in subparagraph (A) of
this paragraph if such institution is removed from
eligibility for
[[Page H2536]]
funds under title IV as a result of an action pursuant to
part H of title IV.
``(3) Proprietary institution of higher education.--
``(A) Principal criteria.--For the purpose of this
subsection, the term `proprietary institution of higher
education' means a school that--
``(i) provides an eligible program of training to prepare
students for gainful employment in a recognized occupation;
``(ii) meets the requirements of clauses (i) and (ii) of
paragraph (1)(A) of this subsection;
``(iii) does not meet the requirement of clause (iv) of
paragraph (1)(A) of this subsection;
``(iv) is accredited by a nationally recognized accrediting
agency or association approved by the Secretary pursuant to
part H of title IV;
``(v) has been in existence for at least 2 years; and
``(vi) has at least 15 percent of its revenues from sources
that are not derived from funds provided under title IV, as
determined in accordance with regulations prescribed by the
Secretary.
In determining such 15 percent of revenues for purposes of
clause (vi), funds from programs of education and training
that do not meet the definition of an eligible program in
section 481(b), but are provided on a contractual basis under
Federal, State, or local training programs, or under
specialized business and industry training requests, shall be
counted.
``(B) Additional institutions.--The term `proprietary
institution of higher education' also includes a proprietary
educational institution in any State that, in lieu of the
requirement in clause (i) of paragraph (1)(A) of this
subsection, admits as regular students persons who are beyond
the age of compulsory school attendance in the State in which
the institution is located.
``(4) Postsecondary vocational institution.--
``(A) Principal criteria.--For the purpose of this
subsection, the term `postsecondary vocational institution'
means a school that--
``(i) provides an eligible program of training to prepare
students for gainful employment in a recognized occupation;
``(ii) meets the requirements of clauses (i), (ii), (iv),
and (v) of paragraph (1)(A) of this subsection; and
``(iii) has been in existence for at least 2 years.
``(B) Additional institutions.--The term `postsecondary
vocational institution also includes an educational
institution in any State that, in lieu of the requirement in
clause (i) of paragraph (1)(A) of this subsection, admits as
regular students persons who are beyond the age of compulsory
school attendance in the State in which the institution is
located.
``(b) State; Freely Associated States.--
``(1) State.--The term `State' includes, in addition to the
several States of the Union, the Commonwealth of Puerto Rico,
the District of Columbia, Guam, American Samoa, the Virgin
Islands, the Commonwealth of the Northern Mariana Islands,
and the Freely Associated States.
``(2) Freely associated states.--The term `Freely
Associated States' means the Republic of the Marshall
Islands, the Republic of Palau, and the Federated States of
Micronesia.''.
(b) Conforming Amendments.--
(1) Section 481 (20 U.S.C. 1088) is amended--
(A) by striking subsections (a), (b), and (c); and
(B) by redesignating subsections (d) through (f) as
subsections (a) through (c), respectively.
(2) Each of the following provisions are amended by
striking ``section 481'' and inserting ``section 101(a)(2)'':
sections 435(a)(1), 487(d), and 496(j) and (k).
(3) Section 498(i) (20 U.S.C. 1099c) is amended by striking
``section 481 (other than the requirements in subsections
(b)(5) and (c)(3))'' and inserting ``section 101(a) (other
than the requirements in paragraphs (3)(A)(v) and
(4)(A)(iii))''.
(4) Section 498(j) is amended by striking ``sections
481(b)(5) and 481(c)(3)'' and inserting ``paragraphs
(3)(A)(v) and (4)(A)(iii) of section 101(a)''.
(5) Section 105(b) (as redesignated by section
101(a)(3)(D)) is amended by adding at the end the following
new sentence: ``This subsection shall cease to be effective
on October 1, 2001.''.
SEC. 103. REGULATORY REFORM.
Title I is amended by adding at the end the following new
section:
``SEC. 112. REGULATORY REFORM.
``(a) Biennial Review of Regulations.--In every even-
numbered year (beginning with 1998), the Secretary--
``(1) shall review all regulations issued under title IV of
the Higher Education Act of 1965 in effect at the time of the
review that apply to the operations or activities of any
participant in those programs; and
``(2) shall determine whether any such regulation is no
longer necessary in the public interest.
``(b) Effect of Determination.--The Secretary shall repeal,
consolidate, simplify, or otherwise modify any regulation the
Secretary determines to be no longer necessary in the public
interest.
``(c) Report to Congress.--The Secretary shall report to
the Congress any legislative changes necessary to permit
regulatory simplification under this section.''.
PART B--PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE
SEC. 111. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF
FEDERAL STUDENT FINANCIAL ASSISTANCE.
Title I (as amended by part A of this title) is amended--
(1) by striking the heading of such title and inserting the
following:
``TITLE I--GENERAL AND ADMINISTRATIVE PROVISIONS
``PART A--GENERAL PROVISIONS'';
and
(2) by adding at the end the following new part:
``PART B--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
``SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY
OF FEDERAL STUDENT FINANCIAL ASSISTANCE.
``(a) Establishment and Purpose.--
``(1) Establishment.--There is established in the
Department a Performance-Based Organization (hereafter
referred to as the `PBO') which shall be a discrete
management unit responsible for managing the information
systems supporting the programs authorized under title IV of
this Act, as specified in subsection (b).
``(2) Purposes.--The purposes of the PBO are--
``(A) to improve the level of service to students and
participants in the programs;
``(B) to reduce the costs of administering the Federal
student financial assistance programs authorized under title
IV;
``(C) to increase the accountability of the officials
responsible for administering the operational aspects of
these programs;
``(D) to provide greater flexibility in the management of
the operational functions of the Federal student financial
assistance programs;
``(E) to integrate the information systems supporting the
Federal student financial assistance programs; and
``(F) to implement an open, common, integrated system for
the delivery of student financial assistance under title IV.
``(b) Authority.--
``(1) Authority of secretary.-- Notwithstanding any other
provision of this Act, the Secretary shall maintain
responsibility for the development and promulgation of policy
relating to the programs of student financial assistance
under title IV. In the exercise of its functions, the PBO
shall be subject to the direction of the Secretary. The
Secretary shall--
``(A) request the advice of, and work in cooperation with,
the Chief Operating Officer in developing regulations,
policies, administrative guidance, or procedures affecting
the information systems administered by the PBO, and other
functions performed by the PBO;
``(B) request cost estimates from the Chief Operating
Officer for system changes required by specific policies
proposed by the Secretary;
``(C) consider the Chief Operating Officer's comments and
estimates prior to finalizing such regulations, policies,
administrative guidance, or procedures;
``(D) assist the Chief Operating Officer in identifying
goals for the administration and modernization of the
delivery system for student financial assistance under title
IV; and
``(E) if necessary, arrange for additional funding to
ensure that the PBO can efficiently perform its functions.
``(2) Functions.--The PBO shall carry out the following
functions:
``(A) All aspects of contracting for the data and
information systems supporting student financial assistance
under title IV, including the operational administration of
the William D. Ford Federal Direct Loan Program, but not
including the development of policy relating to such
programs.
``(B) The administrative, accounting, and financial
management functions of the delivery system for Federal
student assistance, including--
``(i) the collection, processing and transmission of
applicant data to students, institutions and authorized third
parties, as provided for in section 483;
``(ii) technical specifications for software development
and systems supporting the delivery of student financial
assistance under title IV;
``(iii) information technology and systems infrastructure
related to the delivery and management of student financial
assistance under title IV;
``(iv) all software and hardware acquisitions and all
information technology contracts related to the delivery and
management of student financial assistance under title IV;
and
``(v) all customer service, training and user support
related to the functions described in clauses (i) through
(iv).
``(C) Annual development of a budget for the operations and
services of the PBO, in consultation with the Secretary, and
for consideration and inclusion in the Department's annual
budget submission.
``(D) Annual development of goals, in consultation with the
Secretary, for the administration and modernization of the
system for delivery of student financial assistance under
title IV.
``(E) Other functions proposed by the Secretary, and agreed
to by the Chief Operating Officer as are not inconsistent
with the functions of the PBO.
``(3) Independence.--In carrying out its functions, the PBO
shall exercise independent control of its budget allocations
and expenditures, personnel decisions and processes,
procurements, and other administrative and management
functions.
``(4) Review of pbo.--The PBO shall be subject to the usual
and customary Federal audit procedures, and be subject to
review by the Inspector General of the Department.
``(c) Authorization of Appropriations.--For the purpose of
funding the administrative costs incurred by the PBO in
administering systems supporting programs under this part,
there are authorized to be appropriated such sums as may be
necessary for fiscal year 1999 and each of the 4 succeeding
fiscal years, except that funds authorized under section 458
shall be made available to the PBO by the Secretary for
administrative costs authorized to be funded under that
section.
[[Page H2537]]
``(d) Organizational Reports.--
``(1) Performance plan.--Within 6 months of the hiring of
the Chief Operating Officer, and every 12 months thereafter,
the Secretary and the Chief Operating Officer of the
Department shall develop a performance plan for the PBO that
establishes measurable goals and objectives for the
organization. In developing this performance plan, the
Secretary and the Chief Operating Officer shall consult with
the Committee on Education and the Workforce of the House of
Representatives, the Committee on Labor and Human Resources
of the Senate, and the Advisory Committee on Student
Financial Assistance. The performance plan shall include a
concise statement of goals for a modernized system for the
delivery of student financial assistance under title IV and
identify action steps necessary to achieve such goals. Such
goals shall be used in evaluating the performance of the
Chief Operating Officer and the PBO pursuant to paragraph
(2).
``(2) Annual accountability report.--The Chief Operating
Officer shall prepare and submit an annual accountability
report to the Secretary and the Committee on Education and
the Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate. The
accountability report shall include--
``(A) an independent financial audit of the expenditures of
both the PBO and programs administered by it;
``(B) financial and performance requirements applicable to
the PBO under the Chief Financial Officer Act of 1990 and the
Government Performance and Results Act of 1993;
``(C) the results achieved by the PBO during the year
relative to the goals established in the organization's
performance plan;
``(D) the results of the evaluations of performance of the
Chief Operating Officer and senior managers under subsections
(e)(2) and (f)(2), including the amounts of bonus
compensation awarded to these individuals;
``(E) a discussion of the effectiveness of coordination
between the PBO and the Secretary;
``(F) recommendations for legislative and regulatory
changes to improve service to students and their families,
and to improve program efficiency and integrity; and
``(G) other such information as the Director of the Office
of Management and Budget shall prescribe for performance
based organizations.
``(e) Chief Operating Officer.--
``(1) In general.--The management of the PBO shall be
vested in a Chief Operating Officer who shall be appointed by
the Secretary to a 5-year term and compensated without regard
to chapters 33, 51, and 53 of title 5, United States Code.
The Secretary shall appoint the Chief Operating Officer
within 6 months of the date of enactment of this part. The
Secretary shall consult with the Chairmen of the Committee on
Education and the Workforce of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate prior to making an appointment.
The appointment shall be made on the basis of demonstrated
management ability and expertise in information
technology, including extensive experience in the
financial services industry, and without regard to
political affiliation or activity. The Secretary may
reappoint the Chief Operating Officer to subsequent terms
so long as the performance of the Chief Operating Officer,
as set forth in the performance agreement, is satisfactory
or better. The Chief Operating Officer may be removed by--
``(A) the President; or
``(B) the Secretary, for misconduct or failure to meet
performance goals set forth in the performance agreement in
paragraph (2).
The President or Secretary shall communicate the reasons for
any such removal to the appropriate committees of Congress.
``(2) Performance agreement.--The Secretary and the Chief
Operating Officer shall enter into an annual performance
agreement which shall set forth measurable organization and
individual goals for the Chief Operating Officer in key
operational areas. The agreement shall be subject to review
and renegotiation at the end of each term. The final
agreement shall be transmitted to the Committee on Education
and the Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate, and
made publicly available.
``(3) Compensation.--The Chief Operating Officer is
authorized to be paid at an annual rate of basic pay not to
exceed the maximum rate of basic pay for the Senior Executive
Service under section 5382 of title 5, United States Code,
including any applicable locality-based comparability payment
that may be authorized under section 5304(h)(2)(B) of such
title 5. In addition, the Chief Operating Officer may receive
a bonus in an amount up to, but not in excess of, 50 percent
of such annual rate of basic pay, based upon the Secretary's
evaluation of the Chief Operating Officer's performance in
relation to the performance goals set forth in the
performance agreement described in paragraph (2). Payment of
a bonus under this paragraph may be made to the Chief
Operating Officer only to the extent that such payment does
not cause the Chief Operating Officer's total aggregate
compensation in a calendar year to equal or exceed the amount
of the President's salary under section 102 of title 3,
United States Code.
``(f) Senior Management.--
``(1) In general.--The Chief Operating Officer may appoint
up to 5 senior managers as may be necessary without regard to
the provisions of title 5, United States Code, governing
appointments in the competitive service, and who may be paid
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classification
and General Schedule pay rates.
``(2) Performance agreement.--The Chief Operating Officer
shall enter into an annual performance agreement with each
senior manager appointed under this subsection which shall
set forth measurable organization and individual goals in key
operational areas. The agreement shall be subject to review
and renegotiation at the end of each term.
``(3) Compensation.--The Chief Operating Officer is
authorized to pay senior managers at an annual rate of basic
pay not to exceed 75 percent of the maximum rate of basic pay
for the Senior Executive Service under section 5382 of title
5, United States Code, including any applicable locality-
based comparability payment that may be authorized under
section 5304(h)(2)(C) of such title 5. In addition, a senior
manager may receive a bonus in an amount up to, but not in
excess of, 50 percent of such annual rate of basic pay, based
upon the Chief Operating Officer's evaluation of the
manager's performance in relation to the performance goals
set forth in the performance agreement described in paragraph
(2).
``(g) Personnel Flexibility.--
``(1) Personnel ceilings.--The PBO shall not be subject to
any ceiling relating to the number or grade of employees.
``(2) Administrative flexibility.--The Chief Operating
Officer shall work with the Office of Personnel Management to
develop and implement personnel flexibilities in staffing,
classification, and pay that meet the needs of the PBO,
subject to compliance with title 5, United States Code.
``(h) Establishment of a Fair and Equitable System for
Measuring Staff Performance.--The PBO shall establish an
annual performance management system, subject to compliance
with title 5, United States Code and consistent with
applicable provisions of law and regulations, which
strengthens the organizational effectiveness of the PBO by
providing for establishing goals or objectives for
individual, group, or organizational performance (or any
combination thereof), consistent with the performance plan of
the PBO and its performance planning procedures, including
those established under the Government Performance and
Results Act of 1993, and communicating such goals or
objectives to employees.
``(i) Procurement Flexibility.--
``(1) In general.--Except as provided in this subsection,
the PBO shall abide by all applicable Federal procurement
laws and regulations when procuring property and services.
The PBO shall--
``(A) enter into contracts for information systems
supporting the programs authorized under title IV to carry
out the functions set forth in subsection (b)(2); and
``(B) obtain the services of experts and consultants
without regard to section 3109 of title 5, United States Code
and set pay in accordance with such section.
``(2) Performance based servicing contracts.--The Chief
Operating Officer shall, to the extent practicable, maximize
the use of performance based servicing contracts, consistent
with guidelines for such contracts published by the Office of
Federal Procurement Policy, to achieve cost savings and
improve service.
``(3) Fee for service arrangements.--The Chief Operating
Officer shall, to the extent practicable and consistent with
the purpose of the PBO, utilize services available outside of
the Federal Government in the delivery of Federal student
financial assistance. To achieve this purpose, the PBO is
authorized to pay fees to an organization that are equivalent
to those paid by other entities for such services, if the
Chief Operating Officer determines that such organization
currently provides an information system or service that
meets the requirements of the PBO.
``(j) Focus Groups.--To facilitate information sharing and
customer involvement, the Chief Operating Officer may
establish focus groups composed of students, institutions,
and other participants in the programs authorized by title IV
to provide advice on student aid delivery matters.
``SEC. 132. ADMINISTRATIVE SIMPLIFICATION OF STUDENT AID
DELIVERY.
``(a) In General.--The Secretary, and the Chief Operating
Officer shall improve the efficiency and effectiveness of the
student aid delivery system by encouraging and participating
in the establishment of voluntary consensus standards and
requirements for the electronic transmission of information
necessary for the administration of programs under title IV.
``(b) Adoption of Voluntary Consensus Standards.--Except
with respect to the common financial reporting form under
section 483(a), the Secretary shall adopt voluntary consensus
standards for transactions required under title IV, and
common data elements for such transactions, to enable
information to be exchanged electronically between systems
administered by the Department and among participants in the
Federal student aid delivery system.
``(c) Requirements for Adoption of Voluntary Consensus
Standards.--Any voluntary consensus standard adopted under
this section shall--
``(1) be a standard that has been developed, adopted, or
modified by a standard setting organization that is open to
the participation of the various entities engaged in the
delivery of Federal student financial assistance; and
``(2) be consistent with the objective of reducing the
administrative costs of delivering student financial
assistance under title IV.
``(d) Participation in Standard Setting Organizations.--
``(1) The Chief Operating Officer shall participate in the
activities of standard setting organizations in carrying out
the provisions of this section.
``(2) The Chief Operating Officer shall encourage higher
education groups seeking to develop common forms, standards,
and procedures in
[[Page H2538]]
support of the delivery of Federal student financial
assistance to conduct these activities within a standard
setting organization.
``(3) The Chief Operating Officer may pay necessary dues
and fees associated with participating in standard setting
organizations pursuant to this subsection from funds
available under subsection (j).
``(e) Procedures for Adoption and Implementation of
Voluntary Consensus Standards.--In adopting voluntary
consensus standards and implementation timetables under this
section, including modifications of existing standards, the
Secretary shall follow the procedures for negotiated
rulemaking in section 492.
``(f) Initial Voluntary Consensus Standards To Be
Adopted.--Through coordinated participation between the Chief
Operating Officer and standard setting organizations, the
initial standards adopted by the Secretary shall include the
following:
``(1) Electronic personal identifier number.--The Secretary
shall adopt standards for a single electronic personal
identifier number for students receiving assistance under
title IV.
``(2) Electronic signature.--The Secretary, in coordination
with the Secretary of Commerce, shall adopt standards
specifying procedures for the electronic transmission and
authentication of signatures with respect to transactions
requiring a signature under title IV.
``(3) Single institutional identifier.--The Secretary shall
adopt standards for a single identifier for eligible
institutions under title IV.
``(g) Use of Clearinghouses.--Nothing in this section shall
restrict the ability of participating institutions and
lenders from using a clearinghouse to comply with the
standards for the exchange of information established under
this section.
``(h) Applicability to Current Systems.--
``(1) General rule.--Except as provided in paragraph (2)
and (3), this section shall apply to all Department of
Education information systems supporting the delivery of
programs under title IV no later than 12 months from the date
of enactment of this part.
``(2) National student loan data system.--This section
shall apply to sections 485B(e) and (f) no later than 18
months after the date of enactment of this part.
``(3) Integrated postsecondary education data system.--The
Secretary shall coordinate the adoption of voluntary
consensus standards under this section to ensure that
standards are compatible with the integrated postsecondary
education data system (IPEDS).
``(i) Data Security.--Any entity that maintains or
transmits information under a transaction covered by this
section shall maintain reasonable and appropriate
administrative, technical, and physical safeguards--
``(1) to ensure the integrity and confidentiality of the
information; and
``(2) to protect against any reasonably anticipated
security threats, or unauthorized uses or disclosures of the
information.
``(j) Authorization of Appropriations.--There are
authorized to be appropriated in any fiscal year or made
available from funds appropriated to carry out activities in
this section in any fiscal year such sums as may be necessary
to carry out the provisions of this section, except that if
no funds are appropriated pursuant to this subsection, the
Secretary shall make funds available to carry out this
section from amounts appropriated for the operations and
expenses of the Department of Education.
``(k) Definitions.--For purposes of this section:
``(1) The term `voluntary consensus standard' means a
standard developed or used by a standard setting organization
accredited by the American National Standards Institute.
``(2) The term `standard setting organization' means a
standard setting organization accredited by the American
National Standards Institute that develops standards for
information transactions, data elements, or any other
standard that is necessary to, or will facilitate, the
implementation of this section.
``(3) For purposes of this section, the term
`clearinghouse' means a public or private entity that
processes or facilitates the processing of nonstandard data
elements into data elements conforming to standards adopted
under this section.''.
The CHAIRMAN. Are there any amendments to title 1?
Amendment No. 3 Offered by Mr. Paul
Mr. PAUL. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 3 offered by Mr. Paul:
Page 50, line 13, at the end of paragraph (1) add the
following new sentence: ``The Secretary shall not use the
social security account numbers issued under title II of the
Social Security Act as the electronic personal identifier,
and shall not use any identifier used in any other Federal
program as the electronic personal identifier.''.
(Mr. PAUL asked and was given permission to revise and extend his
remarks.)
Mr. PAUL. Mr. Chairman, this amendment is not a complex amendment. It
merely states that Social Security numbers cannot be used to identify
the individuals who will be participating in this program.
This is a common practice, obviously, today. The Social Security
number is used just for about everything. As a matter of fact, many
Americans think way too often.
There are 40 Federal programs now where the Social Security number is
required. Not only that, the Federal Government now has been mandating
the uses of the Social Security number for similar purposes even on
State programs such as obtaining our driver's license.
The concern that I have and that many Americans have is that
government is too intrusive, wants too many records and knows too much
about everybody. The government and nongovernment people can get our
names and they can get our Social Security numbers and find out more
about us than we know about ourselves, and that is not the intent of
our Constitution. It certainly is not the intent of the Privacy Act.
The Privacy Act concerns were expressed through this legislation in
1974 stating that, yes, we have overstepped our bounds, there is too
much intrusiveness, and we are moving in the direction of a national
identification card, something that is unknown and should be unheard of
in a free society.
{time} 2100
We should not have an identity card to carry our papers to get jobs,
open bank accounts, move about the country, but we are moving rapidly
in that direction. This is a token effort to make this point and
require the government to use some other identification method for this
program. It can be done. There is nothing sacred about the Social
Security number. The program can be run without the use of Social
Security.
I would like to just read very briefly some passages from the Privacy
Act of 1974 to make my colleagues stop and think about what we are
doing.
``It shall be unlawful for any Federal, State or local government
agency to deny any individual any right, benefit or privilege provided
by law because of such individual's refusal to disclose his Social
Security number.''
If one does not give his Social Security number, one is in big
trouble in this country. One cannot even get out of the hospital if one
is born without a Social Security number, and one cannot open up a
savings account for a child if one does not have a Social Security
number. One is not even allowed to die at this time without a Social
Security number, because one needs a Social Security number on one's
death certificate. Talk about cradle to grave.
``Any Federal, State or local government agency which requests an
individual disclose his Social Security number shall inform that
individual whether that disclosure is mandatory or voluntary, by what
statutory or other authority the number is listed and what uses will be
made of it.'' We do not have that happening. Numbers are just demanded,
and too many people have complied with it, and we go along with it, but
more and more Americans are getting upset with this monitoring of
everything that we do through the Social Security number.
Every single government program is now requiring it. Like I said,
there are 40, 40 programs. Immigration, think about how the immigration
programs are monitored through Social Security numbers. There have been
attempts to use the Social Security number to monitor people in their
voting. We do not need this. We do not need more government
surveillance in promoting this kind of a program. The program can
survive, can work.
Some would argue, well, possibly, just possibly, the efficiency of
the program may be diminished. That will be the argument that I will
probably hear. The efficiency of the program will be diminished. Well,
if this is the argument, then we are saying that we are here to protect
the efficiency of the State. I see an important role for us to be here
is to protect the privacy and the civil liberties of the citizen. So we
are in conflict. Which should our role be, to protect privacy and civil
liberties, or is it to protect the efficiency of the State?
Well, it is not difficult for me to figure that out, and it is not
like I am saying this program would not exist, it is just saying that
we will put a small amount of surveillance on this where the government
is not so casual in expanding its role for the Social Security number.
In the Privacy Act of 1974, in the findings, they made a comment
which I
[[Page H2539]]
think is very important, and this is in 1974 when it was not really
bad. ``The Congress finds the opportunities for an individual to secure
employment, insurance and credit and his right to due process and other
legal protections are endangered by the misuse of certain information
systems.''
I ask my colleagues to support this amendment. This is a positive
amendment; this is an amendment to protect civil liberties of every
American.
Mr. McKEON. Mr. Chairman, I rise in opposition to the gentleman's
amendment.
Mr. Chairman, I agree with many of the things that the gentleman from
Texas (Mr. Paul) has said, and I agree that we have to be alert and
vigilant in seeing how the government can impose itself in our lives,
but this use of a Social Security number is not new, it has been used
for identifying student loan applications since the inception of the
program.
I would like to make just a couple of points as to why it is
important to have it. It is good to know who we are giving the money
out to, especially when we want to collect on the loans. Information
provided by students and families in order to receive Federal aid is
based on income information which is verified against IRS records to
prevent fraud and abuse in the student aid programs.
I think while there are concerns about the intrusiveness of
government, there are also a great many concerns as to fraud in
programs. It is important that we protect against fraud and abuse in
these programs. This is very important to use the Social Security
number to do that.
Applications are also matched with the Social Security records to
make sure the person applying for aid has a valid Social Security
number. I know the gentleman has made point of the fact that we put a
Social Security number on death certificates. That is so that when
people die, we make sure that they do not apply for student aid. I
think that is an important thing to do.
This check is also done to ensure that the correct person is using
his or her correct Social Security number and not a fraudulent number.
Social Security numbers are also used for skip tracing in tracking
down the current addresses of student who are delinquent or who default
on their loans so that they can be contacted to repay the debt. This
practice saves taxpayers millions of dollars. I think it is incumbent
upon us to be very diligent in the use of taxpayer dollars.
The safeguards afforded the student loan program and the taxpayer by
allowing the use of Social Security numbers should not be done away
with until such time as another viable alternative exists for matching
records and verifying information, which is critical to preventing
fraud and abuse in the Federal student aid programs.
While I agree with some of the gentleman's concerns, I think it is
very important that we defeat his amendment and use the Social Security
number to make this program viable.
Mr. KILDEE. Mr. Chairman, I move to strike the last word.
I know the gentleman from Texas (Mr. Paul) is very sincere on this; I
have talked to him, and I know the issues. But really, the purpose of
using the Social Security number in these instances is really to
prevent fraud and abuse.
We have millions and millions of dollars involved in these programs
to assist students to go to college, and I think that the taxpayers
certainly are willing to have a person use their Social Security number
to make sure that there is no fraud and abuse in this program. I think
it is very important. I just filled out my income tax a few weeks ago,
and put my Social Security number on the income tax and did not feel
threatened by that. So I would oppose the amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Texas (Mr. Paul).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. PAUL. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to House Resolution 411, further proceedings
on the amendment offered by the gentleman from Texas (Mr. Paul) will be
postponed.
Are there further amendments to title I?
If not, the Clerk will designate title II.
The text of title II is as follows:
TITLE II--POSTSECONDARY EDUCATION IMPROVEMENT PROGRAMS
SEC. 201. URBAN COMMUNITY SERVICE.
(a) Designation of Title.--The Higher Education Act of 1965
is amended by inserting at the end of title I (20 U.S.C. 1001
et seq.) the following:
``TITLE II--POSTSECONDARY EDUCATION IMPROVEMENT PROGRAMS''.
(b) Redesignation and Transfer of Urban Community Service
Program.--
(1) Internal cross-references.--Part A of title XI is
amended--
(A) in section 1102(b), by striking ``section 1104'' and
inserting ``section 204'';
(B) in section 1104(12), by striking ``section
1103(a)(2)(B)'' and inserting ``section 203(a)(2)(B)''; and
(C) in section 1108(1), by striking ``section 1103'' and
inserting ``section 203''.
(2) Redesignation.--Part A of title XI (20 U.S.C. 1136 et
seq.) is redesignated as part A of title II, and sections
1101 through 1109 are redesignated as sections 201 through
209.
(3) Transfer.--Part A of title II (including sections 201
through 209), as redesignated by paragraph (2), is
transferred to immediately follow the heading inserted by
subsection (a) of this section.
(4) Repeal.--Part B of title XI (20 U.S.C. 1137 et seq.)
and the heading of title XI are repealed.
(c) Allowable Activities.--Section 204 (as redesignated by
subsection (b)(2)) is amended by adding at the end the
following new paragraph:
``(14) Improving access to technology in local
communities.''.
(d) Designation of Urban Grant Institutions.--Section 207
(as redesignated by subsection (b)(2)) is amended by adding
at the end the following new sentence: ``The information
developed as a result of this section shall be made available
to Urban Grant Institutions and to any other interested
institution of higher education by any appropriate means,
including the Internet.''.
(e) Authorization of Appropriations.--Section 209 (as
redesignated by subsection (b)(2)) is amended by striking
``1993'' and inserting ``1999''.
SEC. 202. FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION.
(a) Redesignation and Transfer of Programs.--
(1) Redesignation.--Part A of title X (20 U.S.C. 1135 et
seq.) is redesignated as part B of title II (as amended by
section 201) and--
(A) sections 1001 through 1003 (20 U.S.C. 1135 et seq.) are
redesignated as sections 221 through 223; and
(B) section 1011 (20 U.S.C. 1135a-11) is redesignated as
section 224.
(2) Transfer.--Part B of title II (including sections 221
through 224), as redesignated by paragraph (1), is
transferred to follow part A of title II.
(3) Repeal.--Section 1004 and parts B, C, and D of title X
(20 U.S.C. 1135a-3, 1135e et seq.) and the heading of title X
are repealed.
(b) Endowment Grants.--Section 221(a) (as redesignated by
subsection (a)(2)) is amended--
(1) by striking ``and'' at the end of paragraph (7);
(2) by striking the period at the end of paragraph (8) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(9) awarding an endowment grant, on a competitive basis,
to a national organization to enable such organization to
support the establishment or ongoing work of area program
centers that foster the development of local affiliated
chapters in high-poverty areas to improve graduation rates
and postsecondary attendance through the provision of
academic support services and scholarship assistance for the
pursuit of postsecondary education.''.
(c) Special Projects.--Section 224 (as redesignated by
subsection (a)(2)(B)) is amended--
(1) by striking paragraphs (1), (2), and (3) of subsection
(c) and inserting the following:
``(1) institutional restructuring to improve learning and
promote productivity, efficiency, quality improvement, and
cost and price control;
``(2) articulation agreements between two-year and four-
year institutions;
``(3) evaluation and dissemination of model programs; and
``(4) international cooperation and student exchange among
postsecondary educational institutions.''; and
(2) by striking subsection (d).
(d) Authorization of Appropriations.--
(1) Combination of subparts.--Part B of title II (as
redesignated by subsection (a)) is amended by striking the
subpart designations and headings.
(2) Authorization.--Part B of title II (as so redesignated)
is amended by adding at the end the following:
``SEC. 225. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part $30,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.''.
SEC. 203. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY
TRANSITION TRAINING FOR INCARCERATED YOUTH
OFFENDERS.
(a) Redesignation and Transfer of Programs.--
(1) Redesignation.--Part E of title X (20 U.S.C. 1135g) is
redesignated as part C of title II and section 1091 is
redesignated as section 231.
(2) Transfer.--Part C of title II (including section 231),
as redesignated by paragraph (1), is
[[Page H2540]]
transferred to follow part B of title II (as amended by
section 202 of this Act).
(b) Reauthorization.--Section 231(j) (as so redesignated)
is amended to read as follows:
``(j) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$5,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the four succeeding fiscal years.''.
SEC. 204. ADVANCED PLACEMENT FEE PAYMENT PROGRAM.
(a) Redesignation and Transfer of Programs.--
(1) Redesignation.--Part G of title XV of the Higher
Education Amendments of 1992 (20 U.S.C. 1170) is redesignated
as part D of title II and section 1545 of such Act is
redesignated as section 241.
(2) Transfer.--Part D of title II (including section 241),
as redesignated by paragraph (1), is transferred to follow
part C of title II (as amended by section 203 of this Act).
(b) Reauthorization.--Section 241(f) (as so redesignated)
is amended by striking ``1993'' and inserting ``1999''.
SEC. 205. TEACHER QUALITY ENHANCEMENT GRANTS.
Title II is further amended by adding at the end the
following new part:
``PART E--TEACHER QUALITY ENHANCEMENT GRANTS
``SEC. 271. PURPOSE.
``The purposes of this part are--
``(1) to provide competitive grants to States for
assistance in strengthening the quality of the teaching force
by improving the academic knowledge of teachers in the
subject areas in which they teach;
``(2) to hold institutions of higher education with teacher
preparation programs accountable for preparing teachers who
are highly competent in the academic content areas in which
they plan to teach, including training in the effective uses
of technologies in the classroom; and
``(3) to recruit high quality individuals, including
individuals from other occupation, into the teaching force.
``SEC. 272. ELIGIBILITY.
``(a) Applications.--To be eligible to receive a grant
under this part, a Governor shall, at the time of the initial
grant application, submit an application to the Secretary
that meets the requirements of this part.
``(b) Contents of Application.--Such application shall
include a description of how the State intends to use funds
provided under this part and such other information and
assurances as the Secretary may require.
``(c) State Authority.--Nothing under this part shall be
construed to negate or supersede the legal authority, under
State law of any State agency, State entity, or State public
official over programs that are under the jurisdiction of the
agency, entity, or official.
``SEC. 273. USE OF FUNDS.
``The Governor of a State that receives a grant under this
subpart shall--
``(1) use a portion of such grant to carry out one or more
of the following activities:
``(A) reforming State teacher certification requirements to
ensure that current and future teachers possess the necessary
academic content knowledge in the subject areas in which they
are certified and assigned to teach;
``(B) providing prospective teachers alternatives to
schools of education through programs at colleges of arts and
sciences or at nonprofit organizations;
``(C) funding programs which establish or expand
alternative routes to State certification for highly
qualified individuals from other occupations;
``(D) developing and implementing effective mechanisms to
expeditiously remove incompetent or unqualified teachers; and
``(E) implementing reforms which hold institutions of
higher education with teacher preparation programs
accountable for preparing teachers who are highly competent
in the academic content areas in which they plan to teach;
and
``(2) use a portion of such grant to establish a lighthouse
partnership consisting of the Governor, an exemplary
institution of higher education which prepares teachers, and
a local educational agency and which may also consist of
other institutions of higher education, public charter
schools, and public and private nonprofit elementary and
secondary schools, for the purpose of carrying out one or
more of the following activities:
``(A) creating opportunities for enhance and ongoing
professional development which improves the academic content
knowledge of teachers in the subject areas in which they are
certified to teach or in which they are working toward
certification to teach;
``(B) providing programs designed to implement the
successful integration of technology into teaching and
learning;
``(C) implementing reforms which hold institutions of
higher education with teacher preparation programs
accountable for preparing teachers who are highly competent
in the academic content areas in which they plan to teach;
``(D) reforming State certification requirements to ensure
that current and future teachers possess the necessary
academic content knowledge in the subject areas in which they
are certified to teach; and
``(E) recruiting minorities, and others, into the teaching
and counseling profession, including education
paraprofessionals, former military personnel, and mid-career
professionals, by providing financial and other assistance
related to instruction, induction, mentoring and support
services.
``SEC. 274. COMPETITIVE AWARDS.
``(a) Competitive Basis for Awards.--The Secretary shall
make annual grants under this part on a competitive basis.
``(b) Peer Review Panel.--The Secretary shall provide the
applications submitted by Governors under section 272 to a
peer review panel for evaluation. With respect to each
application, the peer review panel shall initially recommend
the application for funding or for disapproval.
``(c) Priority.--In recommending applications to the
Secretary, the panel shall give priority to applications from
States with proposals which promise initiatives to reform
State teacher certification requirements which are designed
to ensure that current and future teachers possess the
necessary academic content knowledge in the subject areas in
which they are certified to teach or which include innovative
reforms to hold institutions of higher education with teacher
preparation programs accountable for preparing teachers who
are highly competent in the academic content areas in which
they plan to teach.
``(d) Ranking of Applications.--With respect to each
application recommended for funding, the panel shall assign
the application a rank, relative to other recommended
applications, based on the priority described in subsection
(c), the extent to which the application furthers the
purposes of this part, and the overall quality of the
application, based on the quality and scope of State-
supported strategies to improve quality of teacher
preparation and their teaching force.
``(e) Recommendation of Amount.--With respect to each
application recommended for funding, the panel shall make a
recommendation to the Secretary with respect to the amount of
the grant that should be made.
``(f) Secretarial Selection.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall determine, based on the peer review panel's
recommendations, which applications shall receive funding and
the amounts of such grants. In determining grant amounts, the
Secretary shall take into account the total amount of funds
available for all grants under this part and the types of
activities proposed to be carried out.
``(2) Effect of ranking by panel.--In making grants under
this part, the Secretary shall select applications according
to the ranking of the applications by the peer review panel,
except in cases where the Secretary determines, for good
cause, that a variation from that order is appropriate.
``(g) Matching Requirement.--Each State receiving funds
under this part shall provide, from non-Federal sources, an
amount equal to 1/2 of the amount of the grant in cash or in
kind to carry out the activities supported by the grant.
``(h) Limitation on Administrative Expenses.--A State that
receives a grant under this part may use not more than 2
percent of the grant funds for administrative costs.
``(i) Reporting.--
``(1) In general.--A Governor that receives a grant under
this section shall submit an accountability report to the
Secretary and the Committee on Education and the Workforce of
the House of Representatives and the Committee on Labor and
Human Resources of the Senate. Such reports shall include a
description of the degree to which the State, in using these
funds, has made substantial progress in meeting the following
goals:
``(A) Raising the State academic standards required to
enter the teaching profession.
``(B) Increasing the percentage of classes taught in core
academic subject areas by teachers fully certified by the
State to teach in those subject areas.
``(C) Decreasing shortages of qualified teachers in poor
urban and rural areas.
``(D) Increasing opportunities for enhanced and ongoing
professional development which improves the academic content
knowledge of teachers in the subject areas in which they are
certified to teach or in which they are working toward
certification to teach.
``(2) Accountability of state institution of higher
education.--Prior to receiving funds under this part, a State
shall demonstrate that at least 80 percent of graduates of
each of the exemplary institutions of higher education in any
partnership described in section 273(a)(2) who enter the
field of teaching pass all applicable State qualification
assessments of new teachers, which must include assessments
of each prospective teacher's subject matter knowledge in the
content area or areas in which the teacher provides
instruction. Prior to each subsequent receipt of funds under
this part, such State shall demonstrate that 70 percent of
the graduates of each institution of higher education in the
State have met such goal and continue to progress to exceed
such goal. Such assessment shall be at least as rigorous as
those in place on the date of enactment of this Act and shall
have qualifying scores no lower than those in place on date
of enactment of this Act.
``(3) Provision to peer review panel.--The Secretary shall
provide the reports submitted under paragraph (1) to the peer
review panel convened under subsection (b). The panel shall
use such accountability report in recommending applications
for subsequent funding under this section.
``(j) Teachers Qualifications Provided to Parent Upon
Request.--Any local educational agency that participates as
an eligible applicant or partner under this part shall make
available, upon request and in an understandable and uniform
format, to any parent of a student attending any school in
the local educational agency, information regarding the
qualifications of the students classroom teacher, both
generally and with regard to the subject matter in which the
teacher provides instruction.
``SEC. 275. LIMITATIONS.
``(a) Federal Control Prohibited.--Nothing in this part
shall be construed to permit, allow, encourage, or authorize
any Federal control over any aspect of any private,
religious, or
[[Page H2541]]
home school, whether or not a home school is treated as a
private school or home school under State law. This section
shall not be construed to bar private, religious, or home
schools from participation in programs or services under this
part.
``(b) No Change in State Control Encouraged or Required.--
Nothing in this part shall be construed to encourage or
require any change in a State's treatment of any private,
religious, or home school, whether or not a home school is
treated as a private school or home school under State law.
``(c) National System of Teacher Certification
Prohibited.--Nothing in this part shall be construed to
permit, allow, encourage, or authorize any national system of
teacher certification.
``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization.--There are authorized to be
appropriated to carry out this part, $18,500,000 for fiscal
years 1999 and such sums as may be necessary for each of the
4 succeeding fiscal years.
``(b) Transition.--Notwithstanding any other provision of
law, the Secretary may use funds appropriated under
subsection (a) to complete awards under the original grant
period for projects that were funded under subpart 2 of part
E of title V of this Act, as in effect prior to enactment of
the Higher Education Amendments of 1998.''.
SEC. 206. ADDITIONAL REPEAL.
Title VIII (20 U.S.C. 1133 et seq.), relating to
cooperative education, is repealed.
The CHAIRMAN. Are there amendments to title II?
Amendment No. 55 offered by Mr. Sanders
Mr. SANDERS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 55 offered by Mr. Sanders:
Page 56, after line 18, insert the following new paragraph
(and redesignate the succeeding paragraphs accordingly):
``(5) cooperation between institutions to encourage cost
saving initiatives through joint purchase of goods and
services, and shared use of facilities and faculty
resources.''
Mr. SANDERS. Mr. Chairman, I will be very brief, and I want to thank
both the majority and the minority for accepting this amendment.
Mr. Chairman, as we attempt to make higher education more affordable
and more accessible for the middle-income and working families of our
country, we need, in fact, to do a much better job in controlling the
escalating cost of a college education.
The cost of a college degree from many institutions in this country
today is truly shocking. According to the National Commission on the
Cost of Higher Education, and I quote, ``In the 20 years between 1976
and 1996, the average tuition at public universities increased from
$642 to $3,151, and the average tuition at private universities
increased from $2,881 to $15,581.''
Tuitions at public 2-year colleges, the least expensive of all types
of institutions, they have increased 5 times over. So it seems to me
while we do all that we can to increase Federal aid for those middle-
income and working families that need a college education, we are doing
relatively little, I think, to hold down the costs of college. In fact,
the number 1 recommendation of the National Commission on the Cost of
Higher Education is to strengthen institutional cost control. That is
their number 1 recommendation.
Mr. Chairman, the very simple amendment that I am offering would help
institutions in some ways to reduce their costs and hopefully allow
them to use those savings to lower the cost of tuition and college
fees. In the State of Vermont, where my wife has served as provost of a
small college and has been involved in this area, and in many other
regions of the country, colleges are beginning to come together to form
partnerships or consortia that enables them to share resources and
reduce their collective costs.
For example, in some cases, significant cost savings can be realized
by joint purchasing of goods and services when schools come together to
purchase things like fuel, and in the State of Vermont fuel is an
expensive cost, or insurance; if they pool their resources, they can
save money and use those savings to lower the cost of tuition. The
problem right now, however, is that many hard-pressed schools, many of
the smaller schools, simply do not have the resources or the available
technical expertise to figure out how they can do those things and how
they can work with other colleges to reduce costs.
This amendment, which would add no additional costs to any of the
higher education programs, would instead give the Fund for the
Improvement of Postsecondary Education, which administers a competitive
grant program for higher education institutions, a broader mission and
allow them to make competitive grants available to institutions which
seek to cooperate and reduce costs through the joint purchase of goods
and services.
Mr. Chairman, this amendment is consistent with the National
Commission on the Cost of Higher Education which recommends: ``Greater
institutional and regional cooperation in using existing facilities and
institutions of higher education,'' and that is what this amendment
does.
I thank both the majority and the minority for accepting this
amendment.
Mr. McKEON. Mr. Chairman, I rise in support of the amendment. We
thank the gentleman from Vermont (Mr. Sanders) for his efforts to
improve the bill, and we gladly accept his amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Vermont (Mr. Sanders).
The amendment was agreed to.
The CHAIRMAN. Are there any further amendments to title II?
Amendment No. 20 Offered by Mr. Farr of California
Mr. FARR of California. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 20 offered by Mr. Farr of California:
Insert at the end of section 271(1) of the Higher Education
Act of 1965 as amended by the manager's amendment offered by
the Gentleman from Pennsylvania the following: ``, such as
math, science, English, foreign languages, history,
economics, art, and civics''.
Mr. FARR of California. Mr. Chairman, I just want to say that I
really enjoy seeing this wonderful bipartisan support for education
here on the House floor. I cannot think of any issue that is more of
interest to the people in this country now than education, and it is
wonderful that we are at a time when education has become our most
important product, and I would like to acknowledge and compliment the
leadership on both sides of the aisle, the gentleman from Pennsylvania
(Mr. Goodling) for his great leadership and the gentleman from Michigan
(Mr. Kildee).
I have a quick amendment. This amendment is to Part E of the Teacher
Quality Enforcement Enhancement Grants, which is section 271(i). This
section is the one that consolidates 17 existing higher education
programs into a new competitive grant program to improve teacher
training.
Section 271(i) provides competitive grants to the States to
strengthen the quality of teaching force in the core subject areas. My
language would merely list those core subject areas as math, science,
English, foreign languages, history, economics, art and civics.
Modification to Amendment No. 20 Offered by Mr. Farr of California
Mr. FARR of California. Mr. Chairman, I also discovered there was a
drafting error that omitted government and geography from the list, so
I would ask unanimous consent to modify my amendment to add government
and geography.
{time} 2115
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:
Modification to amendment offered by Mr. Farr of
California:
In the matter proposed to be inserted strike out ``and'',
and insert before the closing quotation mark ``government and
geography''.
The CHAIRMAN. Is there objection to the modification to the amendment
offered by the gentleman from California (Mr. Farr)?
There was no objection.
The CHAIRMAN. The question is on the amendment, as modified, offered
by the gentleman from California (Mr. Farr).
The amendment, as modified, was agreed to.
The CHAIRMAN. Are there any further amendments?
Amendment no. 51 offered by mr. owens
Mr. OWENS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
[[Page H2542]]
The text of the amendment is as follows:
Amendment No. 51 offered by Mr. Owens:
Page 68, after line 11, insert the following new section
(and redesignate the succeeding section accordingly):
SEC. 206. POSTSECONDARY INFORMATION TECHNOLOGY EDUCATION
RECRUITMENT
(a) Findings.--The Congress finds the following:
(1) There are more than 200,000 to 400,000 vacancies in
various categories of information technology jobs.
(2) From 1996 to 2005, more than 1,300,000 new computer
scientists, engineers, and systems analysts will be required
in the United States to fill vacant jobs, which equals
136,800 new workers per year.
(3) Systems analysts will experience the largest job
growth, accounting for a 103 percent increase in the number
of new positions from 1996 (506,000) to 2005 (1,025,000).
(4) The shortage of information technology workers
transcends industries, affecting the manufacturing, service,
transportation, health care, education, and government
sectors. Within each sector, vacancies exist at all levels
from aides and mechanics to programmers and designers.
(5) The information technology worker shortage is having an
adverse effect on the viability of businesses in the United
States and on the Nation's competitiveness. Industry surveys
report that half of industry executives cite the lack of
workers skilled in technology as the number one obstacle to
their company's growth. An additional 20 percent of industry
executives identify the lack of information technology
workers as a major obstacle to their company's growth.
(6) A major factor affecting the short supply of
information technology workers is the mismatch between what
universities teach and what industry needs.
(7) It is in the national interest to promote special
initiatives which effectively educate and train our domestic
workforce to keep pace with these expanding job
opportunities.
(8) Institutions of higher education have the capacity and
resources to provide a role of oversight and technical
assistance to a wide range of local entities, including
community-based organizations, participating in a
comprehensive education and training program for potential
technology workers.
(9) Higher education institutions must be responsive to the
digital environment and expand both their outreach efforts
and on-campus activities to train and certify individuals to
close the information technology worker gap.
(b) Amendment.--Title II is amended by adding at the end
the following:
``PART G--INFORMATION TECHNOLOGY EDUCATION RECRUITMENT
``SEC. 281. PARTNERSHIPS FOR POSTSECONDARY INFORMATION
TECHNOLOGY EDUCATION RECRUITMENT
``(a) Grants Authorized.--
``(1) In general.--The Secretary may make grants under this
section, in accordance with competitive criteria established
by the Secretary, to institutions of higher education, in
order to establish, oversee the operation of, and provide
technical assistance to, projects described in paragraph (2).
``(2) Projects.--Projects under this section shall be
projects implemented by a community-based organization
described in subsection (b), or by the institution of higher
education receiving the grant, to provide postsecondary
information technology education and employment procurement
assistance to eligible individuals described in subsection
(c).
``(3) Restrictions.--An institution of higher education
shall be eligible to receive only one grant under this
section, but may, subject to the requirements of this
section, use the grant to enter into contracts with more than
one community-based organization. A community-based
organization shall not be eligible to enter into a contract
under this section with more than one institution of higher
education.
``(4) Period of grant.--The provision of payments under a
grant under this section shall not exceed 5 fiscal years and
shall be subject to the annual approval of the Secretary and
subject to the availability of appropriations for each fiscal
year involved.
``(b) Community-Based Organizations.--
``(1) In general.--Subject to paragraph (2), a community-
based organization described in this subsection is an entity
that, at the time the entity enters into a contract with an
institution of higher education for a project under this
section, and throughout the duration of that contract--
``(A) is--
``(i) a governmental agency; or
``(ii) an organization described in section 501(c)(3) of
the Internal Revenue Code of 1986 and exempt from tax under
section 501(a) of such Code; and
``(B) is one of the following:
``(i) A local partnership (as defined in section 4 of the
School-to-Work Opportunities Act of 1994) receiving a grant
under section 302 of such Act.
``(ii) An entity organized and operated for religious
purposes.
``(iii) An entity furnishing school-age child care services
after school.
``(iv) A community-based college computer recruitment
center.
``(v) An entity furnishing adult education.
``(vi) A library.
``(vii) A museum.
``(viii) Any other entity organized and operated for
cultural, literary, or educational purposes.
``(2) Limitation.--An entity shall not be considered a
community-based organization described in this subsection
unless, at the time the entity enters into a contract with an
institution of higher education for a project under this
section, it has demonstrated to the satisfaction of the
Secretary that--
``(A) it has the capacity successfully to recruit eligible
individuals described in subsection (c) for participation in
a project described in subsection (a), consistent with the
enrollment requirements in subsection (d)(2)(E);
``(B) it is providing an educational service, social
service, or employment procurement service; and
``(C) in the case of an entity that independently manages
its own finances, it has been in existence 2 years or more.
``(c) Eligible Individuals.--An eligible individual
described in this subsection is an individual who--
``(1) has submitted a satisfactory application to receive
postsecondary information technology education recruitment
assistance through a project under this section; and
``(2) has a certificate of graduation from a school
providing secondary education, or the recognized equivalent
of such a certificate.
``(d) Duties.--
``(1) Institutions of higher education.--An institution of
higher education receiving a grant under this section shall
use the funds provided under the grant to carry out the
following duties:
``(A) Final selection of community-based organizations
described in subsection (b) desiring to provide, at one or
more sites, in accordance with a contract with the
institution of higher education and this section,
postsecondary information technology education and employment
procurement assistance to eligible individuals described in
subsection (c).
``(B) Entering into a contract with each community-based
organization selected under subparagraph (A) under which the
institution and the organization agree to carry out the
duties respectively required of them under this section with
respect to each site described in subparagraph (A).
``(C) With respect to each site described in subparagraph
(A)--
``(i) design of a process for the recruitment of students
from site to enroll in college courses or matriculate in
college programs;
``(ii) provision of such funding for the establishment and
initial operation of the site as was specified in the grant
application submitted by the institution to the Secretary;
``(iii) approval of final site selection and preparation;
``(iv) initial orientation and training of personnel
employed to manage and operate the site;
``(v) design and certification of the instructional and
academic programs, and oversight of the implementation of the
programs;
``(vi) oversight of equipment purchases and contracts for
equipment maintenance; and
``(vii) selection of an outside contractor for periodic
evaluation of the management and operation of the site.
``(2) Community-based organizations.--
``(A) In general.--A community-based organization
implementing a project under this section with an institution
of higher education, at one or more sites, shall carry out
the duties described in this paragraph, with respect to each
such site, subject to the oversight and guidance of the
institution.
``(B) General duties.--The organization--
``(i) shall undertake final site selection and preparation;
``(ii) shall recruit and hire a site director;
``(iii) shall carry out any supplementary instructional,
academic, or educational activities specified in the contract
with the institution of higher education that are not
described in subparagraph (D);
``(iv) shall assemble an advisory committee composed of
individuals residing in the community in which the site is
located, as well as industry representatives, who desire to
assist the organization in ensuring that the goals of the
organization are consistent with the goals and needs of the
community population;
``(v) shall provide to the institution other evidence of
volunteer support from among individuals residing in the
community in which the site is located and industry
representatives;
``(vi) shall recruit eligible individuals for enrollment,
subject to subparagraph (E);
``(vii) shall maintain waiting lists of eligible
individuals desiring to enroll in the project's programs;
``(C) Site requirements.--The organization shall ensure
that each site--
``(i) has a minimum of 20 fully functioning computers with
sufficient capacity to perform all of the computer operations
that are the subject of the curriculum specified in
subparagraph (D);
``(ii) in addition to the space for the computers described
in clause (i), has--
``(I) a classroom space with the capacity for seating a
minimum of 30 students;
``(II) a separate office for the site director;
``(iii) is real property subject to the control of the
organization or the institution, through a lease or other
legal instrument, for a period of not less than 5 years;
``(iv) is open to enrolled individuals not less than 12
hours per day; and
``(v) is located within walking distance of public
transportation.
``(D) Information technology curriculum.--
[[Page H2543]]
``(i) In general.--The organization shall ensure that each
site offers enrollees a curriculum that includes a broad
range of course work in information technology.
``(ii) Courses leading to certification.--Such curriculum
shall include course work leading to a certification of
competence in areas of information technology recognized by
the National Skill Standards Board established under the
National Skill Standards Act of 1994.
``(iii) Specific courses.--The computer training offered
shall include courses in basic computer competence, on-the-
job upgrade assistance, and advanced computer competence.
``(E) Enrollment requirements.--The organization shall
ensure that its enrollment of eligible individuals at each
site is consistent with the following:
``(i) Not less than 50 percent of the eligible individuals
shall be, at the time of enrollment, individuals--
``(I) to whom a credit was allowed under section 32 of the
Internal Revenue Code of 1986 for the preceding taxable year;
``(II) who are recipients of assistance under a State
program funded under part A of title IV of the Social
Security Act;
``(III) who are a member of a household participating in
the food stamp program; or
``(IV) who are considered low-income pursuant to
regulations promulgated by the Secretary under this section.
``(ii) Not less than 50 percent of the eligible individuals
shall be, at the time of enrollment, under 25 years of age.
``(iii) No prerequisite relating to net worth, income, or
assets may be applied to any eligible individual who, at the
time of enrollment, is over 50 years of age, except that this
requirement shall not be construed to supersede clause (i).
``(e) Implementation of Projects Solely by Institutions.--
The Secretary may make a grant under this section to an
institution of higher education that desires to implement a
project under this section without the participation of a
community-based organization described in subsection (b), if
the institution agrees to carry out all of the duties
required of such an organization under this section, in
addition to the duties otherwise required of an institution
of higher education. The Secretary shall, in awarding grants
under this section, give priority to institutions of higher
education whose grant application includes an assurance that
the institution will contract with one or more community-
based organizations in accordance with this section.
``(f) Applications.--To apply for a grant under this
section for any fiscal year, an institution of higher
education shall submit an application to the Secretary in
accordance with the procedures established by the Secretary.
The application shall specify the institution's preliminary
selections for the community-based organizations (if any)
with which the institution proposes to contract, and shall
include information with respect to preliminary site
selections.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$100,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
``(h) Definitions.--For purposes of this section:
``(1) Adult education.--The term `adult education' has the
meaning given such term in section 312 of the Adult Education
Act.
``(2) Community-based college computer recruitment
center.--The term `community-based computer center' means a
computer center--
``(A) funded by both the Federal Government and at least
one private sector entity;
``(B) located in a low-income community (as determined by
the Secretary); and
``(C) organized and operated for the purpose of providing
families with access to computer resources that otherwise
would not be available to them.
``(3) Food stamp program.--The term `food stamp program'
has the meaning given such term in section 3(h) of the Food
Stamp Act of 1977.
``(4) Library.--The term `library' has the meaning given
such term in section 213 of the Library Services and
Technology Act.
``(5) Museum.--The term `museum' has the meaning given such
term in section 272 of the Museum and Library Services
Act.''.
Mr. OWENS. Mr. Chairman, this amendment seeks to deal with the
omission which I cited earlier. There is a problem, there is a crisis,
there is a great need for more information technology workers. There is
a crisis that will be met with legislation from this House of
Representatives in the 105th Congress. There are a number of different
committees looking at the problem, and this committee should do its
duty and address the problem.
Government analyses, industry reports, media headlines, and lobbying
activities from businesses point to a crisis in the American education
system and the workplace. There are not enough workers to fill 200,000
to 400,000 current vacancies in various categories of information
technology jobs.
It has been reported that ``a major factor affecting the short supply
of information technology workers is a mismatch between what
universities teach and what industry needs.'' One industry executive
likened the current situation to ``running out of iron ore in the
middle of the industrial revolution.''
While I commend the chairmen and ranking members of both the
committee and the subcommittee for fashioning a palatable bill, H.R. 6
does not comprehensively address the anchor role that our higher
education institutions could play in eliminating America's newest
deficit of high skilled technology workers. The Information Technology
Partnership Amendment which I am offering here would correct this gross
oversight in H.R. 6.
This amendment would authorize a competitive grant program for
colleges and universities to establish and oversee information
technology education recruitment projects. Higher education
institutions would be expected to expand existing resources to
establish computer training centers off campus. Priority would be given
to those colleges and universities that enter into partnerships with
community-based organizations such as after-school centers and
nonprofit cultural and educational organizations and even churches.
Many of my colleagues in Congress understand the severity of the
shortage of workers with the necessary education to compete in this new
millennium. Several reports have documented this crisis: The Commerce
Department report entitled ``America's New Deficit''; reports from the
Bureau of Labor Statistics; another Commerce report entitled ``The
Emerging Digital Economy''; and a report from an industry trade
association called ``Help Wanted: A Call for Deliberative Action for
the New Millennium.'' These analyses draw a dramatic conclusion about
the gross shortages that will exist now and into the year 2005.
Because of the crisis, the Information Technology Association of
America has pledged its support for this amendment. As the trade
association that represents information technology workers and
businesses, ITAA documents how businesses are themselves complaining
for assistance.
Mr. Chairman, I submit a letter from ITAA which supports this
amendment:
ITAA,
Arlington, VA, April 28, 1998.
Hon. Major R. Owens,
U.S. House of Representatives, Rayburn House Office Building,
Washington, DC.
Dear Congressman Owens: I understand that you are soon to
introduce a bill, the ``Workforce Investment Partnership
Act.'' Based on a review of your draft legislation, it
appears it addresses the information technology (IT) training
needs that are critical to the growth of American industry.
As the industry association with leadership on growing the
domestic IT workforce, the Information Technology Association
of America (ITAA) is pleased to see the way you are
attempting to deal with creatively the workforce shortage.
ITAA's recently released a study conducted by Virginia
Polytechnic Institute and State University (VA Tech), Help
Wanted 1998: A call for Collaborative Action for the New
Millennium. This study found that there are currently 346,000
vacant IT positions in American companies. These vacancies
exist both at high tech companies and in other industry
sectors, including banking, retail, insurance, and
hospitality. Every region of the country is impacted by this
lack of IT talent. The IT skills gap represents thousands of
missed opportunities for American workers, because these high
paying, high growth jobs remain vacant.
ITAA supports partnerships among stakeholders in business,
academia, and government which create opportunities for
Americans to pursue IT jobs. ITAA is especially supportive of
those partnerships that leverage existing resources (such as
college faculties and community-based organizations) for new
types of training programs, as your legislation suggest. ITAA
looks forward to working with you and your staff to develop
this project and include industry leaders in the process.
Thank you for your leadership on this critical issue. If
you have any questions or comments please feel free to
contact me at [email protected] or 703-284-5340, or contact
Lauren Brownstein, ITAA's Workforce Education Program
Manager, at [email protected] or 703-284-5318.
Sincerely,
Harris N. Miller,
President.
ITAA Member Companies
3Com Corporation; A.I.H. Systems Group, Inc.; ABT
Corporation; Accelr8 Technology Corporation; Adobe Systems,
Inc. Federal Systems Division; Advanced Information Network
Systems; Advanced Technology Systems Corporation; Affiliated
Computer Services, Inc.; AH&T Technology Brokers; AITECH
Research, Inc.; Albers & Company; ALIT Inc.; Altenbern,
Douglas Honorary ITAA Member; Ambassador Capital Corporation;
Amdahl Corporation; America Online,
[[Page H2544]]
Inc.; ANATEC; Andersen Consulting LLP; ANSTEC, Inc.; ARKSYS;
Arter & Hadden; AT&T; Atkinson & Associates, Inc.; Atlantic
Data Services, Inc.; AVATAR Solutions, Inc.;
BDM International, Inc.; BEA Systems; Beach, Stephen H.
Honorary ITTA Member; Bellcore; Best Computer Consultants,
Inc.; Billennium L.P.; Bob Lejeune, Honorary Member; Boeing;
Boston Technology, Inc.; BrightStar Information Technology
Group, Inc.; Brookline Technologies Inc.; BTG, Inc.; Business
Representation Inc.
CACI International Inc.; Caine Farber and Gordon, Inc.;
Caliber Learning Network, Inc.; Cap Gemini America; Capital
Technology Information Services: Capricorn Systems, Inc.;
Carpenter Associates; Carr, Ambrose A., Jr. Honorary ITAA
Member; CCD Online Systems, Inc.; Center For Innovative
Technology; Century for Innovative Technology; Century
Staffing Consultants; Chuck Wheeler Associates, Inc.;
CIBER 2000, Inc.; Claremont Technology Group, Inc.; Class
Solutions Ltd.; Cognos Corporation; COLMAR Corporation;
Complete Business Solutions, Inc.; Computec International
Resources Inc.; Computer Associates International, Inc.;
Computer Generated Solutions, Inc.; Computer Horizons
Corporation; Computer People Inc.; Computer Sciences
Corporation; Computer Task Group, Inc. (CTG); COMSYS
Technical Services, Inc.; Consist International, Inc.;
Contract Solutions, Inc.; Coopers & Lybrand L.L.P.;
Corporate Executive Computing, Inc.; Cotelligent Group,
Inc.; CROSS ACCESS Corporation; CrossRoute Software, Inc.;
Crowell & Moring; CTA Incorporated; CyberCash, Inc.;
Cyborg Systems, Inc.
Data Dimensions, Inc.; Data General Corporation; Data
Processing & Accounting Services; Data Processing Resources
Corporation; Data Systems Analysts, Inc.; Dataccount
Corporation; De Bellas & Co.; Doloitte & Touche LLP; DemoNet
Inc.; Dickstein, Shapiro & Morin, LLP; Digital Commerce
Corp.; Digital Equipment Corporation; Distributed Software
Development, Inc.; DSQ Software Corporation; DynCorp.
Edge Information Group; EDS Corporation; Emerald Solutions,
Inc.; Envision, Inc.; Epsilon Software Development Company;
Ernst & Young.
Fargo Provisioning; Federal Data Corporation; Federal
Sources, Inc.; First Floor Software; Forecross Corporation;
Foursight Seminars, Inc.; Fujitsu Limited; Fundamental
Software.
G2R; Galland, Kharasch & Garfinkle, P.C.; GE Information
Services; Geac Computer Systems, Inc.; General Dynamics
Information Systems; Global Data Solutions; GMR Technologies
International; GMRTI; Goel & Associates, P.C.; Goetz
Associates Honorary ITAA Member; Golder, Thoma, Cressey,
Rauner, Inc.; Government Strategy Advisors; Government
Technology Services, Inc.; Grant Thornton LLP; Great Lakes
Technologies Group; Greenbrier & Russel, Inc.; GTE
Internetworking; GTE Technology and Systems.
Hanover & Associates, Ltd.; Hazel & Thomas, PC; Highmark
Blue Cross Blue Shield; Hinton Industries, Inc.; Hogan &
Hartson; Holland & Knight LLP; Howard Systems
International, Inc.
IBM Corporation; IBM Global Services; IBS Conversions,
Inc.; IDC Governments, Inc.; IMI Systems, Inc.; Immigration
Law Group, LLP; Information Management Resources, Inc.;
Information Systems Resources, Inc.; INPUT; Intermetrics,
Inc.; INTERSOLV, Inc.; Intertec Communications, Inc.; Into
2000 Inc.; Introspect Corporation; IONA Technologies.
J.G. Van Dyke Associates, Inc.; James Martin Government
Consulting, Inc.; James, Luanne Honorary ITAA Member; Jerger
Associates.
Keane, Inc.; Kearney & Company; Keith Bates & Associates,
Inc.; Kirkpatrick & Lockhart LLP; Knautz, Allan Honorary ITAA
Member; KPMG Peat Marwick LLP.
Landmark Systems Corporation; Levi, Ray & Shoup, Inc.;
LexiBridge Corporation; Litton PRC; Locate In Kent; Lockheed
Martin Federal Systems; Lyons & Associates, Inc.
Manley, Robert Honorary ITAA Member; MAPSYS; Marimba, Inc.;
Market* Access International; Martec Computer Services
Company; MASTECH Corporation; MatchPoint Systems, Inc.;
MAXIMUS, Inc.; Maxxion Systems Inc.; McCabe & Associates,
Inc.; McGuire, Woods, Battle & Booth; MCI Inc.; McKenna &
Cuneo, L.L.P.; Mercer Computer Systems, Inc.; Merrill Lynch;
Micro Focus, Inc.; Microsoft Corporation; Millennia III;
Millennium Dynamics, Inc.; MCL Group, Inc.; modis.
Napersoft, Inc.; National Comprehensive Services Corp.; NBS
Systems, Inc.; NeoMedia Technologies, Inc.; NEPS Inc.; NETCOM
On-Line Communication Services, Inc.; Netscape Communications
Corp.; New Art Technologies, Inc.; Next Millennium
Consulting, Inc.; NIIT (USA) Inc.; Northrop Grumman Corp--
Data Systems & Serv. Div.; Novadyne Computer Systems, Inc.
O'Grady-Peyton International; Olympic Staffing Services;
Onstad, Phillip C. Honorary ITAA Member; Open Market, Inc.;
Oracle Corporation; Oracle Corporation.
Paragon Computer Professionals, Inc.; Pentamation
Enterprises, Inc.; Peopleware Technical Resources, Inc.;
Performance Technology Group; Phil Butler & Associates,
Ltd.; Phoenix Software International; Pierre Audoin
Conseil; Piscopo, J.A. Honorary ITAA Member; PLATINUM
Technology, Inc.; Price Waterhouse LLP; PRINCE Software,
Inc.; Princeton Information Ltd.; Prodigy Services
Corporation; PSDI.
Quality Engineering Software Automation (QES).
Rapasky, John R. Honorary ITAA Member; Rational Software
Corp.; RCG Information Technology, Inc.; Reasoning, Inc.;
Renaissance Solutions, Inc.; Renaissance Worldwide; Robbins-
Gioia, Inc.; Robert Half International, Inc.; Rollins, Arthur
Honorary ITAA Member.
Sachs, Spector, Glasser & Waxman, P.C.; Sam Albert
Associates; SCB Computer Technology, Inc.; Schoenberg,
Lawrence ITAA Honorary Member; Science Applications
International Corporation (SAIC); SCO; Secure Computing
Corp.; Government Division; Sentry Technology Group; Sequent
Computer Systems, Inc. (Federal Division); SERENA Software
International; Serendipity Consulting; Seyfarth, Shaw,
Fairweather & Geraldson; Shaw Pittman Potts & Trowbridge;
Signet Bank; Silicon Graphics, Inc.; Silverline Industries,
Inc.; Softech International; Software AG Americas; Software
Productivity Consortium; Software Services Corporation;
Software Synergy, Inc.; SOFTWORKS, Inc.; Solomon Software;
Southbridge Financial Corporation; Southwestern Business
Resources; Specifics, Inc.; SPR Inc.; Sprint; Spyglass, Inc.;
SRA International, Inc.; SRI Consulting; STA America;
Standard Data Corporation; Stanford Consulting Group;
Sterling Commerce, Inc.; Sterling Software, Inc.; Strategia
Corporation; Sun Microsystems/Gov't Software Group; SunGard
Data Systems Inc.; Superlative Technologies, Inc.; SVI
America Corporation; Sybase Federal; Symantec Federal Region;
Syntel, Inc.; System One Technical, Inc.; Systems & Computer
Technology Corporation.
TCG Software, Inc.; TechnoPraxis Group Inc.; Techquest,
Inc.; The Comdyn Group; The Dun & Bradstreet Corporation; The
Jefferson Group; The Software Factory; The Updata Group,
Inc.; Thinking Tools, Inc.; Tone Software Corporation; Tracor
Enterprise Solutions, Inc.; Transition Software Corporation;
Transportation Consulting Group, Inc.; Triad Data Inc.; TRW;
TSI International Software, Ltd.
Ultim--IT Solutions Inc.; Ultradata Corporation; Ultradata
Systems Inc.; Ulysses Group Associates, Inc.; Unisys Federal
Systems Division; USF&G Corporation.
Vanstar Corp., Gov't Systems Group; Vector Consulting;
VentureTech 2000, Inc.; Veronex Technologies, Inc.; Vertex
Inc.; Veson, Inc.; VIASOFT, Inc.; Village Information
Solutions, L.L.C.; Virtual Consulting.
Wang Federal; Wang, Inc.; Waterfield Technology Group,
Inc.; Wellinger & Associates, Inc.; Welsh, Carson, Anderson &
Stowe; Wheat International Communications Corp.; William M.
Mercer, Inc.
Y2K Solutions Group, Inc.; Y2Kplus, Inc.; Year 2000
Inventory Management Ltd.; Zitel Corporation; Zmax
Corporation.
Mr. Chairman, I might add also that there is another solution being
proposed by the Committee on the Judiciary. The Committee on the
Judiciary proposes to meet this crisis by importing, or by changing the
visa quota by increasing it from 60,000 to 115,000 and bringing in
professionals from foreign countries, trained professionals in this
area from foreign countries. They will solve the problem that way
instead of addressing the need to prepare more of our own citizens for
this very important set of jobs.
Mr. Chairman, these jobs will be around for a long time. There is a
stratification. It is not only the people at the very top who are
designers and the engineers for computers and for software. It is not
only the computer programmers, but also technicians and technologists.
All of the estimates of the vacancies so far have not taken into
consideration the needs outside of business. They are only looking at
business needs. They have not looked at the needs of the schools and
the colleges where there is a shortage of people who can deal with
educational information technology. Education technology will require
more teachers and teachers will have to have technology assistants and
technicians.
Just as we have an automobile culture in this country that has built
up over many decades of the automobile existing, we are going to have a
culture of the computer and a culture of information technology which
will have people at all strata and we should prepare for that now.
This amendment recognizes that higher education institutions have the
capacity and the resources to provide the major role for a
comprehensive information technology education recruitment program. The
Information Technology Partnerships Amendment offers an incentive for
colleges and universities to leverage their existing resources, enter
into partnerships with community groups and obtain input from industry
groups to help educate and prepare American citizens for these vast job
opportunities.
Colleges and universities would be expected to recruit the
participants
[[Page H2545]]
who will be trained at the computer education centers. Those recruits
would go on for college study. This amendment would encourage colleges
to recruit actively those individuals who would normally not be exposed
to such computer training and to the college environment.
In low-income communities, as has been documented by several articles
in The Washington Post and the New York Times, the exposure to
computers is not there. Students cannot learn this field or get
involved in it unless they have the opportunity to practice on
computers.
So I urge that this amendment be adopted, that we go into the 21st
century with the participation of this committee on this particular
piece of legislation to place us in the bargaining process that is
going to take place among all the committees to solve this problem.
Mr. McKEON. Mr. Chairman, I rise in opposition to the gentleman's
amendment.
Mr. Chairman, the gentleman's heart is in the right place, he is
trying to do what is right, and I think has some very good things that
he is trying to do in this amendment. This is a bipartisan bill and we
worked together on a lot of these areas, but it was one amendment that
we were not able to accept.
Mr. Chairman, we just cannot do everything with a Federal program.
According to the Department of Education, more than 550,000 students
were enrolled in computer science programs in the 1995-96 academic
year. The current student aid program provides millions of individuals
with the opportunity to pursue any field they choose as workforce
demands change for different occupations. Students can choose programs
as short as 6 months or as long as a Ph.D.
States that have shortages in finding employees to fill technical
jobs can use funds they match under the State Student Incentive Program
which is currently authorized and appropriated for providing student
financial aid programs targeted to those fields.
Or, as a last resort, we can do it without the Federal Government. We
can do a program like is being done in my district. We have a community
college that joined with a city that joined with several industries and
put together a program on their own to train employees.
I agree wholeheartedly with the gentleman from New York (Mr. Owens)
that we should not be importing employees. We should be doing a better
job of training them. I think that there are just better ways to do it
than in this new amendment, and I would urge a ``no'' vote on the
gentleman's amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from New York (Mr. Owens).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. OWENS. Mr. Chairman, I demand a recorded vote, and pending that,
I make the point of order that a quorum is not present.
The CHAIRMAN. Pursuant to House Resolution 411, further proceedings
on the amendment offered by the gentleman from New York (Mr. Owens)
will be postponed.
The point of no quorum is considered withdrawn.
Are there any further amendments to title II?
Amendment No. 19 Offered by Mr. Edwards
Mr. EDWARDS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 19 Offered by Mr. Edwards:
In section 271 of the Higher Education Act of 1965, as
amended by the manager's amendment offered by the gentleman
from Pennsylvania, strike ``and'' at the end of paragraph
(2), strike the period at the end of paragraph (3) and insert
``; and'', and after such paragraph (3) insert the following
new paragraph:
``(4) to provide competitive grants to States for
assistance in improving the managerial skills of school
principals and superintendents.
In section 273(a) of the Higher Education Act of 1965, as
amended by the manager's amendment offered by the gentleman
from Pennsylvania, add at the end the following new
paragraphs:
``(7) Developing and implementing effective mechanisms to
provide principals and superintendents with advanced
managerial skills.
``(8) Creating opportunities for school principals and
superintendents to further their professional development by
providing advanced managerial skills training.
Modification to Amendment No. 19 Offered by Mr. Edwards
Mr. EDWARDS. Mr. Chairman, I ask unanimous consent that the amendment
be modified in the new form at the desk, which I believe is acceptable
to the committee chairman, subcommittee chairman and full committee
ranking member.
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:
Modification to amendment No. 19 offered by Mr. Edwards:
In section 273(a) of the Higher Education Act of 1965, as
amended by the manager's amendment offered by the gentleman
from Pennsylvania, add at the end the following new
paragraphs:
``(7) Developing and implementing effective mechanisms to
provide principals and superintendents with advanced
managerial skills.
``(8) Creating opportunities for school principals and
superintendents to further their professional development by
providing advanced managerial skills training.
The CHAIRMAN. Is there objection to the modification to the amendment
offered by the gentleman from Texas (Mr. Edwards)?
There was no objection.
Mr. EDWARDS. Mr. Chairman, this bill wisely brings together State and
local officials in a commitment to improving the quality of training
for our Nation's teachers. I strongly support that effort.
My amendment would expand the focus of job development grants to
include management training for school superintendents and principals.
I believe it is critical for the future of our children that we
provide better management training to our school principals and
superintendents, because they play a very significant role in the lives
of our students, they play a vital role in our public school system in
America.
Mr. Chairman it is interesting if we look at dozens and dozens of
cases of school turnarounds around the country where a school district
had essentially the same amount of funds, the same students, the same
teachers, and yet from one year to the next over a period of 2 years
there was a significant turnaround and improvement of morale and
student achievement. The one common bond we find in all of those cases
is that there was a strong leader as a principal or as a superintendent
that came into that school or district and used all of the many
management skills necessary to lead an educational institution.
It is no coincidence that corporations provide millions of dollars
for management training for their mid-level and upper-level management
personnel. And yet historically our Nation has provided but a pittance
for management training of those principals and superintendents who
oversee products, our children, far more important than a product of
any corporation in this country.
Providing professional development opportunities and management
training will allow school administrators to improve their skills.
Improved management at both the school and district level will have a
positive effect on students, teachers and parents.
Students will learn more effectively in a positive environment and
teachers, like all employees anywhere, are happier and more effective
under good leadership and strong management. Better trained
administrators will improve the overall quality of our Nation's
education system.
I believe it makes sense to focus on management training in business,
and I believe in this bill it will make sense to focus a small amount
of resources on management training of our Nation's school
superintendents and principals.
For that reason, I urge the passage of this amendment.
Mr. ROEMER. Mr. Chairman, will the gentleman yield?
Mr. EDWARDS. I yield to the gentleman from Indiana.
Mr. ROEMER. Mr. Chairman, I thank the gentleman from Texas (Mr.
Edwards) for yielding.
Mr. Chairman, I want to salute my good friend and classmate from the
State of Texas for coming up with this idea on this amendment. I
support this
[[Page H2546]]
amendment for three reasons: First of all because it expands the
quality management to the very top level. It does not make any sense
for us in business to say that the middle managers are going to get
trained but then it is CEOs are not going to be eligible for that
training.
Secondly, I am going to support this amendment because I believe
sharing this expertise is one of the most critical functions in
professional development. We have an award where we have a local
teacher who just won it, the Christa McAuliffe award. She came back
from spending several days in California with fellow teachers and came
back to school in South Bend, Indiana, and never had the time to share
the knowledge and the good things that she gleaned from the other
teachers with her fellow teachers in South Bend. We need to provide
more opportunities for this quality enhancement in management.
And lastly, because the world is changing so quickly, we have
technology and software that many teachers who have been teaching for
20 years are not keeping up with this technology and software
improvement. We need to be able to get into the classrooms, whether
they be principals or whether they be teachers, all of the people
together working on professional development and enhancing the quality
of teaching in our schools.
So I salute the gentleman. I applaud him for this good amendment, and
I encourage my colleagues to vote for it.
{time} 2130
Mr. McKEON. Mr. Chairman, I move to strike the last word.
Mr. Chairman, I want to commend the gentleman from Texas. He is not a
member of the committee, but he has great appreciation for education,
and he has put a lot of thought in this amendment, and I think it
really strengthens the bill. I would be happy to accept it.
Mr. EDWARDS. Mr. Chairman, if the gentleman will yield, I thank the
Chairman and full committee chairman and the ranking member for their
support and help and leadership on this issue.
The CHAIRMAN. Is there further discussion on the amendment?
The question is on the amendment, as modified, offered by the
gentleman from Texas (Mr. Edwards).
The amendment, as modified, was agreed to.
Amendment No. 49 Offered by Mr. Miller of California
Mr. MILLER of California. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 49 offered by Mr. Miller of California:
Page 68, line 12, redesignate section 206 as section 207,
and before such line insert the following new section (and
conform the table of contents accordingly):
SEC. 206. ACCOUNTABILITY FOR INSTITUTIONS OF HIGHER EDUCATION
THAT PREPARE TEACHERS.
Title II is further amended by adding at the end the
following new part:
``PART F--ACCOUNTABILITY FOR INSTITUTIONS OF HIGHER EDUCATION THAT
PREPARE TEACHERS
``SEC. 281. DATA COLLECTION.
``(a) Data Required.--Within one year after the date of
enactment of the Higher Education Amendments of 1998, and
annually thereafter, the Secretary shall collect from each
State receiving funds under this Act and publish the
following information:
``(1) A description of the teacher licensing and
credentialing assessments used by each State, including any
and all assessments required in the subject matter area or
areas in which a teacher provides instruction.
``(2) The standards and criteria established by each State
that teachers or prospective teachers must meet in order to
receive a passing score on such assessments, including
information on the extent to which passing such examinations
is required in order for an individual to be a classroom
teacher.
``(3) Information on the extent to which teachers or
prospective teachers in each State are required to take
examinations or other assessments of their subject matter
knowledge in the area or areas in which they provide
instruction, the standards established for passing any such
assessments, and the extent to which teachers or prospective
teachers are required to receive a passing score on such
assessments in order to teach in specific subject areas or
grade levels.
``(4) Information on the extent to which each State waives
teacher credentialing and licensing requirements, including
the proportion of all teachers or prospective teachers in the
State for whom such licensing and credentialing requirements
have been waived and the distribution of such individuals
across high- and low-poverty schools and across grade levels
and subject areas.
``(5) The pass rate, for the preceding year, on all teacher
licensing and credentialing assessments for all individuals
in the State who took such assessments, disaggregated by the
institution of higher education from which the teacher
received his or her most recent degree.
``(b) Coordination.--The Secretary, to the extent
practicable, shall coordinate the information collected and
published under this part among States for individuals who
took State teacher licensing or credentialing assessments in
a State other than the State in which the individual received
his or her most recent degree.
``(c) Use of Local Agencies.--For each State in which there
are no State licensing or credentialing assessments, the
Secretary shall, to the extent practicable, collect data
comparable to the data described in paragraphs (1) through
(5) of subsection (a) from local educational agencies,
colleges and universities, or other entities that administer
such assessments to teachers or prospective teachers.
``SEC. 282. DATA DISSEMINATION.
``(a) Effective Date of Requirements.--The data required to
be distributed under this section shall be distributed
beginning within 3 years after the date of enactment of the
Higher Education Amendments of 1998 and annually thereafter.
``(b) Passing Rates.--Each institution of higher education
that has a course of study that prepares elementary and
secondary school teachers and receives Federal funds will
report and distribute widely, including through prominent
publications such as catalogs and promotional materials sent
to potential applicants, high school guidance counselors, and
the employers of graduates of such institutions, their pass
rate for graduates of the institution on each of the State's
initial teacher certification and licensing assessments for
the most recent year for which data are available at the time
of publication of such materials.
``(c) Identification of Institutions With Passing Rates
Below 70 Percent.--Each State shall submit to the Secretary a
list of institutions of higher education that prepare
teachers and receive Federal funds under this Act for which,
for the preceding year, less than 70 percent of graduates who
took any of the State's initial teacher licensing and
credentialing assessments failed to receive a passing score
on any such assessment. For each assessment, data shall be
disaggregated by the institution of higher education from
which the student received his or her most recent degree,
unless such degree was granted more than 3 years prior to the
date such assessment was administered.
``SEC. 283. STATE FUNCTIONS.
``(a) State Assessment.--In order to receive funds under
this Act, a State shall, no later than one year after the
date of enactment of the Higher Education Amendments of 1998,
have in place a procedure to identify low performing programs
of teacher preparation within institutions of higher
education. Such levels of performance shall be determined
solely by the State and may include criteria based upon
information collected pursuant to this part. Such assessment
shall be described in the report under section 281.
``(b) Termination of Eligibility.--Any institution of
higher education that offers a program of teacher preparation
in which the State has withdrawn its approval or terminated
its financial support due to the low performance of its
teacher preparation program based upon the State assessment
described in section (a)--
``(1) shall be ineligible for any funding for professional
development activities awarded by the Department of
Education; and
``(2) shall not be permitted to accept or enroll any
student that receives aid under title IV of this Act in its
teacher preparation program.
``SEC. 284. NEGOTIATED RULEMAKING.
``If the Secretary develops any regulations implementing
section 283(b)(2), the Secretary shall submit such proposed
regulations to a negotiated rulemaking process which shall
include representatives of States and institutions of higher
education for their review and comment.
Mr. MILLER of California. Mr. Chairman, teacher preparation is the
foundation of our entire educational system. All across the Nation,
States and local school districts are raising the standards for what
students should know and be able to do. If we are truly serious about
helping all of these students meet these new standards, we must ensure
that the teachers of the future have the requisite knowledge and skills
to get them there.
One important step in meeting that goal is to strengthen the quality
of programs that prepare our prospective teachers. While many colleges
and universities do a fine job of preparing teachers, others fall
short, sometimes far short, in providing the prospective teachers with
the education and training that they need. This bill presents an
opportunity.
In the committee, I offered an amendment which would have cut off
[[Page H2547]]
funding for teacher colleges that did not meet a certain test. That
amendment was not accepted. Since that time, I have been spending time
with the minority and other members of the committee to work on this
amendment to see whether or not we can get it acceptable. I want to
thank the gentleman from Pennsylvania (Mr. Goodling), the chairman, and
the gentleman from California (Mr. McKeon), the subcommittee chairman,
for all of their help and support on this amendment. I want to thank
the gentleman from Tennessee (Mr. Ford) for all of his help with this
amendment.
We offer this amendment to try to encourage States and to increase,
one, the information about their schools of education and how they are
doing, and to make sure that that information is disseminated to
prospective candidates to those schools so that they will understand
when they go to that school what is the passage rate at that school;
and also to disseminate to the policymakers within that State exactly
what is the status of that school.
I think this is very important because the Federal Government
provides about $1.8 billion in Federal support to schools of education,
that is grants, loans, and work studies, in 1995 and 1996 alone and
does not count other Federal monies that flows to these schools.
I think it is important that we know and the prospective students in
these schools know what it is that they will get when they enroll in
these schools. What my amendment would do, after much conversation and
consultation with the minority and others, it would see to it that the
schools of education would try and prepare the students who want to
become teachers of the future to meet the quality standards set by
those States; not quality standards set by the Federal Government, but
quality standards set by those States.
It is intended to spur the schools of education to undertake reforms
that will upgrade the quality of the teacher preparation programs. It
is designed to send a message to schools and to colleges and
universities that they should raise the status of teacher education to
a level similar to the programs of other professionals.
We very often hear that we do not pay teachers enough or we do not
treat them like professionals. But until such time as we have the
quality standards to gain the confidence of the American public, it is
likely that we will continue to underpay our teachers. I think that
that is most unfortunate.
This amendment is also designed to provide greater accountability for
the money that the Federal Government spends. Why do we do this? We do
this because teacher quality is important.
Earlier this evening, I talked about how our committee held hearings
and listened to constructive critics of the current system of higher
education and teaching and education and all that went with it, and we
heard a lot of evidence.
One of the things we heard over and over and over, we heard it from
conservatives and from liberals, from professionals in the field and
from critics in the field, the teacher quality is arguably the most
important factor outside of family affecting student achievement.
I believe that this amendment directs both information to people who
want to become teachers and that hold teacher colleges accountable
should those States decide to do it.
We ought to understand that teacher quality accounts, according to
information given to our committee, for 43 percent of the variance in
student achievement scores. Other information from the University of
Tennessee indicates that poor teachers in early grades have serious and
long-lasting effects on the achievement of our students.
That is what this amendment is designed to remedy. It does it in a
far different fashion than I offered it in committee. I think it is
consistent with the concerns the minority had that the States be able
to continue to keep control of these systems. It does it in a
consistent way with actions that were seen taken in States like New
York, Florida, Texas, California, Pennsylvania, and others that are all
moving in this direction.
It augments, I think, some very important steps that have already
been taken in this legislation to increase the ability of this
legislation to address teacher quality through student loan forgiveness
for qualified teachers who teach in high-priority schools, grants to
States for upgrading student teacher preparation, and certification
systems and partnerships between colleges and school districts to
provide intensive professional development program.
The CHAIRMAN. The time of the gentleman from California (Mr. Miller)
has expired.
(By unanimous consent, Mr. Miller of California was allowed to
proceed for 1 additional minute.)
Mr. MILLER of California. Mr. Chairman, I do this because we have got
to make sure that, for the quality education that we know our economy
and American society and the world economy are going to demand of our
children and the children, future graduates, of our systems of higher
education, that we have got to provide them with quality education.
No longer can we have a situation where barely a quarter of the
applicants in New York who were seeking a teaching position on Long
Island could pass the high school graduation English test. We can no
longer accept that.
Teachers deserve to have professional status. They deserve to have
professional pay. I believe this goes a long way toward helping that
situation out and providing some accountability for schools where
taxpayers invest billions of dollars.
Again, I want to thank the gentleman from California (Mr. McKeon),
the subcommittee chairman, and the gentleman from Pennsylvania (Mr.
Goodling), chairman, for all of their help and their effort and their
counsel in coming to an agreement on this amendment.
Mr. GOODLING. Mr. Chairman, I move to strike the last word.
Mr. Chairman, I want to point out that the initial amendment that the
gentleman from California (Mr. Miller) had offered I had considerable
problems with. It has been dramatically modified, and I would like to
explain that.
I want to highlight what I believe represents a significant
difference between this amendment and the earlier versions that were
offered by the gentleman from California (Mr. Miller) during the full
committee of this legislation.
Specifically, this amendment does not include a minimum Federal pass
rate standard. Under that proposal, institutions of higher education
failing to meet this Federal standard would have automatically lost
access to title IV student loan funding.
I had several problems with that approach, because I do not support
placing a Federal standard on States and institutions that would
dictate when Federal funds would be terminated. I do not believe that
Washington should set such a standard.
Second, I thought the approach was too arbitrary given that nearly
all States have different tests which they require for teacher
licensure, and those that have similar tests often score them very
differently. I believe that this approach would have, in effect,
penalized those States with the hardest tests while at the same time
provide a disincentive to States which, under our block grants, we have
encouraged to strengthen our exams and focus more on content knowledge.
I was concerned about terminating title IV student aid to an
institution based on this arbitrary Federal standard. Under the new
amendment, there is no Federal pass rate standard. Instead, States will
implement procedures to identify low-performing teacher preparation
programs based upon performance determined solely by the State.
In the event a State ends financial assistance or approval for a low-
performing teacher preparation program, this amendment would also
ensure that such institution would not be eligible for any Federal
professional development funds from the U.S. Department of Education,
nor would such programs be permitted to accept or enroll students in
its teacher preparation program.
The bottom line is that the Federal Government should not fund the
teacher preparation program which the State itself does not support due
to its poor quality and in which the State has terminated State funds.
[[Page H2548]]
Let me make a point with respect to the information which States will
have to collect and disseminate. It is my understanding that this
information, such as pass rates for teacher license exams, is already
collected by many States and institutions. However, this information is
rarely provided to prospective students who are trying to make informed
decisions regarding which program or institution to attend. By ensuring
this information is made available, I believe there will be more
competition between these programs resulting in better programs.
With the modifications and with the changes, we accept the amendment
offered by the gentleman from California (Mr. Miller).
Mr. KILDEE. Mr. Chairman, I move to strike the requisite number of
words.
Mr. Chairman, this is certainly a better amendment than was offered
in committee, but it does add elaborate and costly new comprehensive
reporting requirements for States.
Some States, under this amendment, would be required to provide
information they do not currently collect. It also adds new substantial
and costly reporting requirements for higher education institutions.
This information, as it is required to be reported under the
amendment, gives potentially misleading information about the
performance of education programs and should not become the basis for
terminating Federal or State support alone.
Finally, the amendment appears to condition future eligibility for
Federal student loans and grants for education programs based solely on
the level of State financial support.
The full effect of this amendment is not really known; however, it
could have an adverse effect upon certain institutions such as
historically black colleges and universities as well as others.
It is also reminiscent, Mr. Chairman, of the State postsecondary
review entities which H.R. 6 repeals. I recently received a letter from
the American Council on Education which urges our vigorous opposition
to this, quote, heavy-handed Federal intrusion.
I certainly would like to work with the sponsor of this amendment,
the gentleman from California (Mr. Miller), in conference to address
his goal of improving the quality of teacher instruction, but I feel
this is a defective device to achieve that.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from California (Mr. Miller).
The amendment was agreed to.
The CHAIRMAN. Are there further amendments to title II?
The Clerk will designate title III.
The text of title III is as follows:
TITLE III--INSTITUTIONAL AID
SEC. 301. STRENGTHENING INSTITUTIONS.
(a) Program Purpose; Use of Funds.--Section 311 (20 U.S.C.
1057) is amended--
(1) in subsection (b)(2), by striking ``or'' at the end of
subparagraph (A) and inserting ``and'';
(2) by amending paragraph (3) of subsection (b) to read as
follows:
``(3) Special consideration shall be given to applications
which propose, pursuant to the institution's plan, the use of
funds for integrating computer technology into institutional
facilities to create smart buildings.''; and
(3) by adding at the end the following new subsections:
``(c) Authorized Activities.--Grants awarded under this
section shall be used for one or more of the following
activities:
``(1) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes, including
instructional and research purposes;
``(2) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and other
instructional facilities;
``(3) support of faculty exchanges, faculty development,
and faculty fellowships to assist in attaining advanced
degrees in their field of instruction;
``(4) purchase of library books, periodicals, and other
educational materials, including telecommunications program
material;
``(5) tutoring, counseling, and student service programs
designed to improve academic success;
``(6) funds management, administrative management, and
acquisition of equipment for use in strengthening funds
management;
``(7) joint use of facilities, such as laboratories and
libraries;
``(8) establishing or improving a development office to
strengthen or improve contributions from alumni and the
private sector;
``(9) establishing or improving an endowment fund;
``(10) creating or improving facilities for Internet or
other distance learning academic instruction capabilities,
including purchase or rental of telecommunications technology
equipment or services; and
``(11) other activities proposed in the application
submitted pursuant to subsection (c) that--
``(A) contribute to carrying out the purposes of this
section; and
``(B) are approved by the Secretary as part of the review
and acceptance of such application.
``(d) Endowment Fund Limitations.--
``(1) Portion of grant.--An institution may not use more
than 20 percent of its grant under this part for any fiscal
year for establishing or improving an endowment fund.
``(2) Matching required.--An institution that uses any
portion of its grant under this part for any fiscal year for
establishing or improving an endowment fund shall provide an
equal or greater amount for such purposes from non-Federal
funds.
``(3) Regulations.--The Secretary shall publish rules and
regulations specifically governing the use of funds for
establishing or improving an endowment fund.''.
(b) Endowment Fund Definition.--Section 312 (20 U.S.C.
1058) is amended by adding at the end the following new
subsection:
``(g) Endowment Fund.--For the purpose of this part, the
term `endowment fund' means a fund that--
``(1) is established by State law, by an institution of
higher education, or by a foundation that is exempt from
Federal income taxation;
``(2) is maintained for the purpose of generating income
for the support of the institution; and
``(3) does not include real estate.''.
(c) Duration of Grant.--Section 313 (20 U.S.C. 1059) is
amended--
(1) in subsection (a), by inserting before the period at
the end the following: ``, except that no institution shall
be eligible to secure a subsequent 5-year grant award under
this part until two calendar years have elapsed since the
expiration of its most recent 5-year grant award''; and
(2) in subsection (b), by inserting ``subsection (c) and a
grant under'' before ``section 354(a)(1)''.
(d) Applications.--Title III is amended by striking section
314 (20 U.S.C. 1059a) and inserting the following:
``SEC. 314. APPLICATIONS.
``Each eligible institution desiring to receive assistance
under this part shall submit an application in accordance
with the requirements of section 351.''.
(e) Program for Tribally Controlled Colleges and
Universities.--Section 316 (20 U.S.C. 1059c) is amended to
read as follows:
``SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
``(a) Program Authorized.--The Secretary shall provide
grants and related assistance to American Indian Tribal
Colleges and Universities to enable such institutions to
improve and expand their capacity to serve Indian students.
``(b) Definitions.--For the purposes of this section:
``(1) The term `Indian' has the same meaning as in section
2 of the Tribally Controlled Community Colleges Act of 1978.
``(2) The term `Indian tribe' has the same meaning as in
section 2 of such Act.
``(3) The term `Tribal College or University' has the
meaning given the term `tribally controlled college or
university' in section 2 of such Act, and includes an
institution listed in the Equity in Educational Land Grant
Status Act of 1994.
``(4) The term `institution of higher education' means an
institution of higher education as defined by section
101(a)(1) of this Act, except that subparagraph (A)(ii) of
such section shall not be applicable.
``(c) Authorized Activities.--Grants awarded under this
section shall be used by Tribal Colleges or Universities to
assist such institutions to plan, develop, undertake, and
carry out authorized activities. Such authorized activities
may include--
``(1) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes, including
instructional and research purposes;
``(2) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and other
instructional facilities, including purchase or rental of
telecommunications technology equipment or services;
``(3) support of faculty exchanges, faculty development,
and faculty fellowships to assist in attaining advanced
degrees in their field of instruction;
``(4) academic instruction in disciplines in which American
Indians are underrepresented;
``(5) purchase of library books, periodicals, and other
educational materials, including telecommunications program
material;
``(6) tutoring, counseling, and student service programs
designed to improve academic success;
``(7) funds management, administrative management, and
acquisition of equipment for use in strengthening funds
management;
``(8) joint use of facilities, such as laboratories and
libraries;
``(9) establishing or improving a development office to
strengthen or improve contributions from alumni and the
private sector;
``(10) establishing or enhancing a program of teacher
education designed to qualify students to teach in elementary
or secondary schools, with a particular emphasis on teaching
American Indian children and youth, that shall include, as
part of such program, preparation for teacher certification;
``(11) establishing community outreach programs which will
encourage American Indian elementary and secondary students
to develop the academic skills and the interest to pursue
postsecondary education;
``(12) establishing or improving an endowment fund; and
``(13) other activities proposed in the application
submitted pursuant to this subsection that--
[[Page H2549]]
``(A) contribute to carrying out the purposes of this
section; and
``(B) are approved by the Secretary as part of the review
and acceptance of such application.
``(d) Application Process.--
``(1) Institutional eligibility.--To be eligible to receive
assistance under this section, an institution shall be an
institution which--
``(A) is an eligible institution under section 312(b);
``(B) is eligible to receive assistance under the Tribally
Controlled Community College Assistance Act of 1978 (Public
Law 95-471); or
``(C) is eligible to receive funds under the Equity in
Educational Land Grant Status Act of 1994.
``(2) Application.--Any institution desiring to receive
assistance under this section shall submit an application to
the Secretary at such time, and in such manner, as the
Secretary may by regulation reasonably require. Each such
application shall include--
``(A) a 5-year plan for improving the assistance provided
by the Tribal College or university to Indian students,
increasing the rates at which Indian high school students
enroll in higher education, and increasing overall
postsecondary retention rates for Indian students; and
``(B) such enrollment data and other information and
assurances as the Secretary may require to demonstrate
compliance with subparagraphs (A) and (B) of paragraph (1).
``(3) Special rule.--For the purposes of this part, no
Tribal College or University which is eligible for and
receives funds under this section may concurrently receive
other funds under this part or part B.''.
SEC. 302. HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
(a) Uses of Funds.--Section 323(a) (20 U.S.C. 1062(a)) is
amended--
(1) by redesignating paragraph (12) as paragraph (13); and
(2) by inserting after paragraph (11) the following new
paragraph:
``(12) Establishing or improving an endowment fund.''.
(b) Limitations.--Section 323(b) is amended by striking
paragraph (3) and inserting the following:
``(3)(A) An institution may not use more than 20 percent of
its grant under this part for any fiscal year for
establishing or improving an endowment fund.
``(B) An institution that uses any portion of its grant
under this part for any fiscal year for establishing or
improving an endowment fund shall provide an equal or greater
amount for such purposes from non-Federal funds.
``(C) The Secretary shall publish rules and regulations
specifically governing the use of funds for establishing or
improving an endowment fund.''.
(c) Professional or Graduate Institutions.--
(1) General authorization.--Section 326(a) (20 U.S.C.
1063b(a)) is amended--
(A) in paragraph (1), by inserting ``in mathematics or the
physical or natural sciences'' after ``graduate education
opportunities''; and
(B) in paragraph (2), by striking ``except that'' and all
that follows and inserting the following: ``, except that no
institution shall be required to match any portion of the
first $500,000 of its award from the Secretary. After
allocations are made to each eligible institution under the
funding rules provided in subsection (f), the Secretary shall
reallocate, on a pro rata basis, any amounts which remain
unallocated (by reason of the failure of an institution to
comply with the matching requirements of this paragraph)
among the institutions that have complied with such matching
requirement.''.
(2) Use of funds.--Section 326(c) (20 U.S.C. 1063b(c)) is
amended by striking paragraphs (1) through (3) and inserting
the following:
``(1) purchase, rental or lease of scientific or laboratory
equipment for educational purposes, including instructional
and research purposes;
``(2) construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and other
instructional facilities used exclusively for the purposes of
this section, including purchase or rental of
telecommunications technology equipment or services;
``(3) purchase of library books, periodicals, technical and
other scientific journals, microfilm, microfiche, and other
educational materials, including telecommunications program
materials;
``(4) scholarships, fellowships, and other financial
assistance for needy graduate and professional students to
permit their enrollment in and completion of the doctoral
degree in medicine, dentistry, pharmacy, veterinary medicine,
law, and the doctorate degree in the physical or natural
sciences, engineering, mathematics, or other scientific
disciplines in which African Americans are underrepresented;
``(5) establish or improve a development office to
strengthen and increase contributions from alumni and the
private sector;
``(6) assist in the establishment or maintenance of an
institutional endowment to facilitate financial independence
pursuant to section 331 of this title; and
``(7) funds and administrative management, and the
acquisition of equipment, including software, for use in
strengthening funds management and management information
systems.''.
(3) Eligibility.--Section 326(e) (20 U.S.C. 1063b(e)) is
amended--
(A) in paragraph (1)
(i) by striking ``include--'' and inserting ``are the
following:'';
(ii) by inserting ``and other qualified graduate programs''
before the semicolon at the end of subparagraphs (F) through
(J);
(iii) by striking ``and'' at the end of subparagraph (O);
(iv) by inserting ``University'' after ``Jackson State'' in
subparagraph (P);
(v) by striking the period at the end of such subparagraph
and inserting a semicolon; and
(vi) by inserting after such subparagraph the following new
subparagraphs:
``(Q) Norfolk State University qualified graduate program;
and
``(R) Tennessee State University qualified graduate
program.''; and
(B) by striking paragraphs (2) and (3) and inserting the
following:
``(2) Qualified graduate program.--For the purposes of this
section, the term `qualified graduate program' means a
graduate or professional program that provides an accredited
program of instruction in the physical or natural sciences,
engineering, mathematics, or other scientific discipline in
which African Americans are underrepresented and has students
enrolled in such program at the time of application for a
grant under this section.
``(3) Special rule.--Institutions that were awarded grants
under this section prior to October 1, 1998, shall continue
to receive such grants, subject to the availability of
appropriated funds, regardless of the eligibility of the
institutions described in subparagraphs (Q) and (R) of
paragraph (1).''; and
(C) in paragraph (4), by inserting before the period at the
end the following: ``, except that the president or
chancellor of the institution may decide which graduate or
professional school or qualified graduate program will
receive funds under the grant in any one fiscal year''.
(4) Funding rule.--Section 326(f) (20 U.S.C. 1063b(f)) is
amended--
(A) by striking ``Of the amount appropriated'' and
inserting ``Subject to subsection (g), of the amount
appropriated'';
(B) in paragraph (1)--
(i) by striking ``$12,000,000'' and inserting
``$26,000,000''; and
(ii) by striking ``(A) through (E)'' and inserting ``(A)
through (P)''.
(C) by striking paragraph (2) and inserting the following:
``(2) the next $1,000,000 in excess of $26,000,000 shall be
available for the purpose of making grants to institutions or
programs identified in subparagraphs (Q) and (R) of
subsection (e)(1); and
``(3) if the amount appropriated exceeds $27,000,000, the
Secretary shall develop a formula for making allotments of
such excess to each of the institutions or programs
identified in subparagraphs (A) through (R) using the
following elements:
``(A) the number of students enrolled in the eligible
institution's professional or graduate school, or qualified
graduate program which received funding under this section in
the previous year;
``(B) the average cost of education per student for all
full-time graduate or professional students (or the
equivalent) enrolled in the eligible professional school,
graduate school or doctoral students in the qualified
graduate program; and
``(C) the number of students who received their first
professional or doctoral degree at the professional or
graduate school or the qualified graduate program in the
preceding year for which the institution received funding
under this section.''.
(5) Hold harmless rule.--Section 326 is further amended by
adding at the end the following new subsection:
``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2)
and (3) of subsection (f), no institution or qualified
program identified in subsection (e)(1) that received a grant
for fiscal year 1998 and that is eligible to receive a grant
in a subsequent fiscal year shall receive a grant amount in
any such subsequent fiscal year that is less than the grant
amount received for fiscal year 1998, unless the amount
appropriated is not sufficient to provide such grant amounts
to all such institutions and programs.''.
SEC. 303. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT
PROGRAM.
(a) Amendment.--Title III (20 U.S.C. 1051) is amended--
(1) by redesignating part D as part E; and
(2) by inserting after part C the following new part:
``PART D--MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM
``SEC. 341. PROGRAM AUTHORIZED.
``The Secretary shall, in accordance with the provisions of
this part, carry out a program of making grants to
institutions of higher education that are designed to effect
long-range improvements in science and engineering education,
and improve support programs for minority students enrolled
in science and engineering programs at predominantly minority
institutions.
``SEC. 342. USE OF FUNDS.
``Funds appropriated for the purpose of this subpart may be
made available for--
``(1) providing needed services to groups of minority
institutions or providing training for scientists and
engineers from eligible minority institutions;
``(2) providing needed services to groups of institutions
serving significant numbers of minority students or providing
training for scientists and engineers from such institutions
to improve their ability to train minority students in
science or engineering;
``(3) assisting minority institutions to improve the
quality of preparation of their students for graduate work or
careers in science, mathematics, and technology;
``(4) improving access of undergraduate students at
minority institutions to careers in the sciences,
mathematics, and engineering;
``(5) improving access of minority students, particularly
minority women, to careers in the sciences, mathematics, and
engineering;
``(6) improving access for pre-college minority students to
careers in science, mathematics, and
[[Page H2550]]
engineering through community outreach programs conducted
through colleges and universities eligible for support
through the Minority Science and Engineering Improvement
Programs;
``(7) disseminating activities, information, and
educational materials designed to address specific barriers
to the entry of minorities into science and technology, and
conducting activities and studies concerning the flow of
underrepresented ethnic minorities into scientific careers;
``(8) supporting curriculum models to encourage minority
student participation in research careers in science,
mathematics, and technology; and
``(9) improving the capability of minority institutions for
self-assessment, management, and evaluation of their science,
mathematics, and engineering programs and dissemination of
their results.
``SEC. 343. ELIGIBILITY FOR GRANTS.
``The Secretary may make grants under this part to minority
institutions (as defined in section 347), organizations, and
entities to enable them to carry out programs and activities
authorized by this part:
``(1)(A) institutions of higher education granting
baccalaureate degrees; and
``(B) institutions of higher education granting associate
degrees which--
``(i) have a curriculum including science or engineering
subjects;
``(ii) apply jointly with institutions described in
subparagraph (A); and
``(iii) have an articulation agreement with institutions
described in subparagraph (A) for its science or engineering
students; and
``(2) consortia of--
``(A) institutions which have a curriculum in science or
engineering;
``(B) graduate institutions which have a curriculum in
science or engineering;
``(C) Federal Education Research Centers;
``(D) research laboratories of, or under contract with, the
Department of Energy;
``(E) private organizations which have science or
engineering facilities; or
``(F) quasi-governmental entities which have a significant
scientific or engineering mission;
to enable such institutions and consortia to carry programs
and activities authorized by this part.
``SEC. 344. GRANT APPLICATION.
``(a) Submission and Contents of Applications.--An eligible
applicant (as determined under section 343) that desires to
receive a grant under this part shall submit to the Secretary
an application therefor at such time or times, in such
manner, and containing such information as the Secretary may
prescribe by regulation. Such application shall set forth--
``(1) a program of activities for carrying out one or more
of the purposes described in section 342 in such detail as
will enable the Secretary to determine the degree to which
such program will accomplish such purpose or purposes; and
``(2) such other policies, procedures, and assurances as
the Secretary may require by regulation.
``(b) Approval Based on Likelihood of Progress.--The
Secretary shall approve an application only if the Secretary
determines that the application sets forth a program of
activities which are likely to make substantial progress
toward achieving the purposes of this part.
``SEC. 345. CROSS PROGRAM AND CROSS AGENCY COOPERATION.
``The Minority Science and Engineering Improvement Programs
shall cooperate and consult with other programs within the
Department and within Federal, State, and private agencies
which carry out programs to improve the quality of science,
mathematics, and engineering education.
``SEC. 346. ADMINISTRATIVE PROVISIONS.
``(a) Technical Staff.--The Secretary shall appoint,
without regard to the provisions of title 5 of the United
States Code governing appointments in the competitive
service, not less than one technical employees with
appropriate scientific and educational background to
administer the programs under this part who may be paid
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classification
and General Schedule pay rates.
``(b) Procedures for Grant Review.--The Secretary shall
establish procedures for reviewing and evaluating grants and
contracts made or entered into under such programs.
Procedures for reviewing grant applications, based on the
peer review system, or contracts for financial assistance
under this title may not be subject to any review outside of
officials responsible for the administration of the Minority
Science and Engineering Improvement Program.
``SEC. 347. DEFINITIONS.
``For the purpose of this part--
``(1) The term `minority institution' means an institution
of higher education whose enrollment of a single minority or
a combination of minorities (as defined in paragraph (2))
exceeds 50 percent of the total enrollment. The Secretary
shall verify this information from the data on enrollments in
the higher education general information surveys (HEGIS)
furnished by the institution to the Office for Civil Rights,
Department of Education.
``(2) The term `minority' means American Indian, Alaskan
Native, Black (not of Hispanic origin), Hispanic (including
persons of Mexican, Puerto Rican, Cuban, and Central or South
American origin), Pacific Islander or other ethnic group
underrepresented in science and engineering.
``(3) The term `science' means, for the purpose of this
program, the biological, engineering, mathematical, physical,
behavioral, and social sciences, and history and philosophy
of science; also included are interdisciplinary fields which
are comprised of overlapping areas among two or more
sciences.''.
SEC. 304. GENERAL PROVISIONS.
(a) Applications for Assistance.--Section 351(a) (20 U.S.C.
1066(a)) is amended to read as follows:
``(a) Applications.--
``(1) Applications Required.--Any institution which is
eligible for assistance under this title shall submit to the
Secretary an application for assistance at such time, in such
form, and containing such information, as may be necessary to
enable the Secretary to evaluate its need for assistance.
Subject to the availability of appropriations to carry out
this title, the Secretary may approve an application for a
grant under this title only if the Secretary determines
that--
``(A) the application meets the requirements of subsection
(b);
``(B) the applicant is eligible for assistance in
accordance with the part of this title under which the
assistance is sought; and
``(C) the applicant's performance goals are sufficiently
rigorous as to meet the purposes of this title and the
performance objectives and indicators for this title
established by the Secretary pursuant to the Government
Performance and Results Act.
``(2) Preliminary applications.--In carrying out paragraph
(1), the Secretary shall develop a preliminary application
for use by eligible institutions applying under part A prior
to the submission of the principal application.''.
(b) Contents of Applications.--Section 351(b) is amended--
(1) in paragraph (5)(A), by inserting ``and the Government
Performance and Results Act'' after ``under this title''; and
(2) in paragraph (6), by inserting before the semicolon the
following: ``, except that for purposes of section 316,
paragraphs (2) and (3) shall not apply''.
(c) Waivers.--Section 352(a) (20 U.S.C. 1067(a)) is
amended--
(1) by striking ``or'' at the end of paragraph (5);
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5) the following new
paragraph:
``(6) that is a tribally controlled community college as
defined in the Tribally Controlled Community College Act of
1978; or''.
(d) Application Review Process.--Section 353(a) (20 U.S.C.
1068(a)) is amended--
(1) in paragraph (2), by striking ``Native American
colleges and universities'' and inserting ``Tribal Colleges
and Universities''; and
(2) in paragraph (3)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
(e) Continuation Awards.--Part D of title III is amended by
inserting after section 354 (20 U.S.C. 1069) the following
new section:
``SEC. 355. CONTINUATION AWARDS.
``The Secretary shall make continuation awards under this
title for the second and succeeding years of a grant only
after determining that the recipient is making satisfactory
progress in carrying out the grant.''.
(f) Authorization of Appropriations.--Section 360 (20
U.S.C. 1069f) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Authorizations.--
``(1) Part a.--(A) There are authorized to be appropriated
to carry out part A (other that sections 316), $135,000,000
for fiscal year 1999, and such sums as may be necessary for
each of the 4 succeeding fiscal years.
``(B) There are authorized to be appropriated to carry out
section 316, $10,000,000 for fiscal year 1999, and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
``(2) Part b.--(A) There are authorized to be appropriated
to carry out part B (other than section 326), $135,000,000
for fiscal year 1999, and such sums as may be necessary for
each of the 4 succeeding fiscal years.
``(B) There are authorized to be appropriated to carry out
section 326, $35,000,000 for fiscal year 1999, and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
``(3) Part c.--There are authorized to be appropriated to
carry out part C, $10,000,000 for fiscal year 1999, and such
sums as may be necessary for each of the 4 succeeding fiscal
years.
``(4) Part d.--There are authorized to be appropriated to
carry out Part D, $10,000,000 for fiscal year 1999, and such
sums as may be necessary for each of the 4 succeeding fiscal
years.''; and
(2) by striking subsections (c), (d) and (e).
The CHAIRMAN. Are there any amendments to title III.
If not, the Clerk will designate title IV.
The text of title IV is as follows:
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS
SEC. 401. PELL GRANTS.
(a) Extension of Authority.--Section 401(a) (20 U.S.C.
1070a(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``September 30, 1998'' and inserting
``September 30, 2004''; and
(B) by striking the second sentence; and
(2) in paragraph (2), by striking ``the disbursement system
required by paragraph (1)'' and inserting ``the disbursement
of Federal Pell Grants''.
(b) Amount of Grant.--Section 401(b)(2)(A) is amended to
read as follows:
``(2)(A) The amount of the Federal Pell Grant for a student
eligible under this part shall be--
``(i) $4,500 for academic year 1999-2000,
``(ii) $4,700 for academic year 2000-2001,
``(iii) $4,900 for academic year 2001-2002,
[[Page H2551]]
``(iv) $5,100 for academic year 2002-2003, and
``(v) $5,300 for academic year 2003-2004,
less an amount equal to the amount determined to be the
expected family contribution with respect to that student for
that year.''.
(c) Relation of Maximum Grant to Tuition and Expenses.--
Section 401(b)(3) is amended--
(1) by striking ``$2,400'' each place it appears and
inserting ``$3,000''; and
(2) by adding at the end the following new subparagraph:
``(C) An institution that charged only fees in lieu of
tuition as of January 31, 1997, may include in its
determination of tuition charged, fees that would normally
constitute tuition.''.
(d) Dependent Care and Disability Related Expenses.--
Section 401(b)(3)(B) is amended by striking ``$750'' and
inserting ``$1,500''.
(e) Institutional Ineligibility Based on Default Rates.--
Section 401 is amended by adding at the end the following new
subsection:
``(j) Institutional Ineligibility Based on Default Rates.--
``(1) In general.--No institution of higher education shall
be an eligible institution for purposes of this section if
such institution of higher education is ineligible to
participate in a loan program under this title as a result of
a final default rate determination made by the Secretary
under part B or D of this title, or both, after the final
publication of fiscal year 1996 cohort default rates.
``(2) Sanctions subject to appeal opportunity.--No
institution may be subject to the terms of this subsection
unless it has had the opportunity to appeal its default rate
determination under regulations issued by the Secretary for
the Federal Family Education Loan or Federal Direct Loan
Program, as applicable. This subsection shall not apply to an
institution that was not participating in the loan programs
authorized under part B or D of this title on the date of
enactment of the Higher Education Amendments of 1998, unless
the institution subsequently participates in the loan
programs.''.
(f) Conforming Amendments.--
(1) Section 400(a)(1) (20 U.S.C. 1070(a)(1)) is amended by
striking ``basic educational opportunity grants'' and
inserting ``Federal Pell Grants''.
(2) The heading of subpart 1 of part A of title IV is
amended to read as follows:
``Subpart 1--Federal Pell Grants''.
(3) Section 401 is amended--
(A) in the heading of the section, by striking ``basic
educational opportunity'' and inserting ``federal pell'';
(B) in subsection (a)(3), by striking ``Basic grants'' and
inserting ``Grants'';
(C) by striking ``basic grant'' each place it appears and
inserting ``Federal Pell Grant''; and
(D) by striking ``basic grants'' each place it appears and
inserting ``Federal Pell Grants''.
(4) Section 401(f)(3) is amended by striking ``Education
and Labor'' and inserting ``Education and the Workforce''.
(5) Section 452(c) (20 U.S.C. 1087b(c)) is amended by
striking ``basic grants'' and inserting ``Federal Pell
Grants''.
(6) Subsections (j)(2) and (k)(3) of section 455 (20 U.S.C.
1087e) are each amended by striking ``basic grants'' and
inserting ``Federal Pell Grants''.
SEC. 402. FEDERAL TRIO PROGRAMS.
(a) Program Authority; Authorization of Appropriations.--
(1) Duration of grants.--Section 402A(b)(2) (20 U.S.C.
1070a-11(b)(2)) is amended--
(A) by striking subparagraph (A);
(B) by striking the period at the end of subparagraph (B)
and inserting ``; and'';
(C) by redesignating subparagraph (B) as subparagraph (A);
and
(D) by adding at the end the following new subparagraph:
``(B) grants under section 402H shall be awarded for a
period determined by the Secretary.''.
(2) Minimum grants.--Section 402A(b)(3) is amended to read
as follows:
``(3) Minimum grants.--Unless the institution or agency
requests a smaller amount, individual grants under this
chapter shall be no less than--
``(A) $170,000 for programs authorized by sections 402D and
402G;
``(B) $180,000 for programs authorized by sections 402B and
402F; and
``(C) $190,000 for programs authorized by sections 402C and
402E.''.
(3) Procedures for awarding grants and contracts.--
Subsection (c) of section 402A is amended to read as follows:
``(c) Procedures for Awarding Grants and Contracts.--
``(1) Application requirements.--An eligible entity that
desires to receive a grant or contract under this chapter
shall submit an application to the Secretary in such manner
and form, and containing such information and assurances, as
the Secretary may reasonably require.
``(2) Prior experience.--In making grants under this
chapter, the Secretary shall consider each applicant's prior
experience of service delivery under the particular program
for which funds are sought. The level of consideration
given the factor of prior experience shall not vary from
the level of consideration given such factor during fiscal
years 1994 through 1997, except that grants made under
section 402H shall not be given prior experience
consideration.
``(3) Order of awards; program fraud.--(A) Except with
respect to grants made under sections 402G and 402H and as
provided in subparagraph (B), the Secretary shall award
grants and contracts under this chapter in the order of the
scores received by the application for such grant or contract
in the peer review process required under section 110 and
adjusted for prior experience in accordance with paragraph
(2) of this subsection.
``(B) The Secretary is not required to provide assistance
to a program otherwise eligible for assistance under this
chapter, if the Secretary has determined that such program
has involved the fraudulent use of funds under this chapter.
``(4) Peer review process.--(A) The Secretary shall assure
that, to the extent practicable, members of groups
underrepresented in higher education, including African
Americans, Hispanics, Native Americans, Alaska Natives, Asian
Americans, Native American Pacific Islanders (including
Native Hawaiians), are represented as readers of applications
submitted under this chapter. The Secretary shall also assure
that persons from urban and rural backgrounds are represented
as readers.
``(B) The Secretary shall ensure that each application
submitted under this chapter is read by at least 3 readers
who are not employees of the Federal Government (other than
as readers of applications).
``(5) Number of applications for grants and contracts.--The
Secretary shall not limit the number of applications
submitted by an entity under any program authorized under
this chapter if the additional applications describe programs
serving different populations or campuses.
``(6) Coordination with other programs for disadvantaged
students.--The Secretary shall encourage coordination of
programs assisted under this chapter with other programs for
disadvantaged students operated by the sponsoring institution
or agency, regardless of the funding source of such programs.
The Secretary shall not limit an entity's eligibility to
receive funds under this chapter because such entity sponsors
a program similar to the program to be assisted under this
chapter, regardless of the funding source of such program.
The Secretary shall permit the Director of a program
receiving funds under this chapter to administer one or more
additional programs for disadvantaged students operated by
the sponsoring institution or agency, regardless of the
funding sources of such programs.
``(7) Application status.--The Secretary shall inform each
entity operating programs under this chapter regarding the
status of their application for continued funding at least 8
months prior to the expiration of the grant or contract. The
Secretary, in the case of an entity that is continuing to
operate a successful program under this chapter, shall ensure
that the start-up date for a new grant or contract for such
program immediately follows the termination of preceding
grant or contract so that no interruption of funding occurs
for such successful reapplicants. The Secretary shall inform
each entity requesting assistance under this chapter for a
new program regarding the status of their application at
least 8 months prior to the proposed startup date of such
program.''.
(4) Authorization of appropriations.--Section 402A(f) is
amended--
(A) by striking ``$650,000,000 for fiscal year 1993'' and
inserting ``$800,000,000 for fiscal year 1999''; and
(B) by striking everything after the first sentence.
(b) Talent Search.--Section 402B(b) (20 U.S.C. 1070a-12(b))
is amended--
(1) by striking paragraph (4) and inserting the following:
``(4) guidance on and assistance in secondary school
reentry, entry to general educational development (GED)
programs, other alternative education programs for secondary
school dropouts, or postsecondary education;''; and
(2) in paragraph (8), by striking ``parents'' and inserting
``families''.
(c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is
amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``personal counseling''
and inserting ``counseling and workshops'';
(B) in paragraph (6)--
(i) by inserting ``work-study and other'' before
``activities''; and
(ii) by inserting before the semicolon at the end the
following: ``, including careers requiring a postsecondary
degree'';
(C) in paragraph (9), by striking ``and'' at the end;
(D) in paragraph (10), by striking ``through (9)'' and
inserting ``through (10)''; and
(E) by redesignating paragraph (10) as paragraph (11) and
by inserting after paragraph (9) the following new paragraph:
``(10) special services to enable veterans to make the
transition to postsecondary education; and''; and
(2) in subsection (c), by inserting ``, other than a
project a majority of the participants in which are
veterans,'' after ``this chapter''.
(d) Student Support Services.--Section 402D(c)(6) (20
U.S.C. 1070a-14(c)(6)) is amended by inserting before the
period at the end the following: ``and minimize the student's
loan burden''.
(e) Postbaccalaureate Achievement Program.--Section 402E
(20 U.S.C. 1070a-15) is amended--
(1) in subsection (c)(3), by inserting ``or accepted in a
graduate program'' after ``degree program''; and
(2) in subsection (e)(1), by striking ``$2,400'' and
inserting ``$3,200''.
(f) Staff Development Activities.--Section 402G(b) (20
U.S.C. 1070a-17(b)) is amended by inserting after paragraph
(3) the following new paragraph:
``(4) The use of appropriate educational technology in the
operation of projects assisted under this chapter.''.
(g) Evaluation for Project Improvement.--Section 402H(b)
(20 U.S.C. 1070a-18(b)) is amended by adding at the end the
following new sentence: ``Such evaluations shall also
investigate the effectiveness of alternative and innovative
methods within Federal TRIO programs of increasing access to,
and retention of, students in postsecondary education.''.
[[Page H2552]]
SEC. 403. NATIONAL EARLY INTERVENTION AND PARTNERSHIP
PROGRAM.
Section 404G (20 U.S.C. 1070a-27) is amended by striking
``1993'' and inserting ``1999''.
SEC. 404. REPEALS.
(a) Repeals of Subpart 2 Provisions.--The following
provisions of subpart 2 of part A of title IV are repealed:
(1) Chapter 3 (20 U.S.C. 1070a-31 et seq.).
(2) Chapter 4 (20 U.S.C. 1070a-41 et seq.).
(3) Chapter 5 (20 U.S.C. 1070a-51 et seq.).
(4) Chapter 6 (20 U.S.C. 1070a-61 et seq.).
(5) Chapter 7 (20 U.S.C. 1070a-71 et seq.).
(6) Chapter 8 (20 U.S.C. 1070a-81 et seq.).
(b) Subpart 8.--Subpart 8 of part A of title IV (20 U.S.C.
1070f) is repealed.
(c) Conforming Amendment.--Section 400(b) (20 U.S.C.
1070(b)) is amended by striking ``subparts 1 through 8'' and
inserting ``subparts 1 through 6''.
SEC. 405. ESTABLISHMENT OF NEW PROGRAMS.
Subpart 2 of part A of title IV is amended by inserting
after chapter 2 (20 U.S.C. 1070a-81) the following new
chapters:
``CHAPTER 3--HIGH HOPES FOR COLLEGE
``Subchapter A--21st Century Scholar Certificates
``SEC. 406A. 21ST CENTURY SCHOLAR CERTIFICATES.
``(a) Findings.--The Congress makes the following findings:
``(1) Among low-income students who, despite high test
scores, are not planning on attending college, nearly 60
percent cite an inability to afford school as the reason.
``(2) About 80 percent of our 12th graders who are
interested in continuing their education after high school go
on to college if their parents read materials about financial
aid, compared to only 55 percent of such students if their
parents do not read this material.
``(3) In 1996, the American Council on Education found that
the public overestimated the tuition of public 2-year
colleges by about 3 times the actual average tuition, of
public 4-year colleges by over twice the actual average
tuition, and of private 4-year universities by almost one-
third more than the actual average tuition.
``(4) There is a need for, and a significant benefit from,
providing students, and through them their parents, with
information about the variety of Federal student financial
assistance programs, such as Pell grants, Federal work-study
and loans, and the AmeriCorps Education Awards that make
college more affordable than ever before.
``(b) Authority.--
``(1) The Secretary, using funds appropriated under section
407H(a) of this Act--
``(A) shall ensure that certificates, to be known as 21st
Century Scholar Certificates, are provided to all students
participating in projects under chapter 2; and
``(B) may, as practicable, ensure that such certificates
are provided to all students in grades 6 through 12 who
attend schools at which at least 50 percent of the students
enrolled are eligible for free or reduced-price lunch.
``(2) A 21st Century Scholar Certificate shall be
personalized for each student and indicate the amount of
Federal financial aid for college for which a student may be
eligible.
``Subchapter B--High Hopes Partnerships
``SEC. 407A. PURPOSE.
``It is the purpose of this chapter to encourage and
prepare students in low-income communities, beginning not
later than the 7th grade, to prepare for, enter, and
successfully complete college by assisting college-school-
community partnerships to--
``(1) provide in-school and on-campus early college
awareness activities to these students and their parents;
``(2) ensure ongoing adult guidance and other support to
these students;
``(3) provide useful, early information to these students
and their parents on the need for, options related to, and
financing (including the availability of financial
assistance) of a college education; and
``(4) help ensure that these students have access to
rigorous core courses, such as algebra and geometry, that
prepare them for college.
``SEC. 407B. GRANTS.
``(a) Grants Authorized.--From funds appropriated under
section 407H(a), the Secretary shall make grants to college-
school-community partnerships for activities under section
407D.
``(b) Eligible Partnership.--For purposes of this chapter,
an eligible partnership shall include--
``(1) one or more local educational agencies acting on
behalf of--
``(A) one or more participating schools; and
``(B) the public secondary schools that students from these
schools would normally attend;
``(2) one or more degree granting institutions of higher
education; and
``(3) at least two community organizations or entities,
such as businesses, professional associations, community-
based organizations, or other public or private agencies or
organizations.
``(c) Definitions.--For the purpose of this chapter--
``(1) `participating school' means a public school in
which--
``(A) there is a 7th grade;
``(B) one or more cohorts of students receive services
under this chapter; and
``(C) at least 50 percent of the students enrolled are
eligible for free or reduced-price lunch; and
``(2) `cohort of students' means--
``(A) an entire grade level of students in a participating
school; or
``(B) if the partnership determines that it would promote
the effectiveness of a project, an entire grade level of
students, beginning not later than the 7th grade, who reside
in public housing as defined in section 3(b)(1) of the United
States Housing Act of 1937.
``(d) Duration.--Each grant awarded under this chapter
shall be for a 6-year period.
``(e) Cost Sharing.--
``(1) Federal funds shall provide no more than 80 percent
of the cost of the project in the first year, 70 percent of
the cost in the second year, 60 percent of the cost in the
third year, 50 percent of the cost in the fourth year, 40
percent of the cost in the fifth year, and 30 percent of the
cost in the sixth year.
``(2) The non-Federal share of grants awarded under this
chapter may--
``(A) be in cash or in kind, fairly evaluated, including
services, supplies, or equipment; and
``(B) include the non-Federal share of work-study grants
under part C of title IV of this Act awarded to students who
serve as tutors or mentors in projects under this chapter.
``(3) The Secretary may waive the cost sharing requirement
described in paragraph (1) for any eligible partnership that
demonstrates to the satisfaction of the Secretary an
extraordinary hardship that prevents compliance with that
requirement.
``(f) Equitable Geographic Distribution.--To the extent
possible, the Secretary shall award grants under this chapter
in a manner that achieves an equitable geographic
distribution of those grants.
``(g) Priority Awards Under Chapter 2.--Before making
grants under this chapter for fiscal year 1999, the Secretary
shall, as appropriate, make awards to recipients eligible for
continuation awards under chapter 2 of subpart 2 of this
title as it was in effect prior to the enactment of the
Higher Education Amendments of 1998.
``SEC. 407C. GRANT APPLICATION; PREFERENCES.
``(a) Application Required.--An eligible partnership
desiring to receive a grant under this chapter shall submit
an application to the Secretary, in such form and
containing such information, as the Secretary may require.
``(b) Application Contents.--Each application shall
include--
``(1) the name of each partner and a description of its
responsibilities, including the designation of either an
institution of higher education or a local educational agency
as the fiscal agent for the partnership;
``(2) a description of the need for the project, including
a description of how the project will build on existing
services and activities, if any;
``(3) a listing of the human, financial (other than funds
under this chapter), and other resources that each member of
the partnership will contribute to the partnership, and a
description of the efforts each member of the partnership
will make in seeking additional resources;
``(4) a description of how the project will operate,
including how grant funds will be used to meet the purpose of
this chapter;
``(5) a description of how services will be coordinated
with, and will complement and enhance, services received by
participating schools and students under other related
Federal and non-Federal programs, including programs under
title I, part A of title VII, and part 1 of title X of the
Elementary and Secondary Education Act of 1965, the School-
to-Work Opportunities Act of 1994, section 402 of this Act,
and the Individuals with Disabilities Education Act;
``(6) a description of how the partnership will support and
continue the services under this chapter after the grant has
expired;
``(7) an assurance from each local educational agency using
funds under this chapter that--
``(A) at least 50 percent of the students enrolled in each
participating school are eligible for free or reduced-price
lunch;
``(B) its aggregate expenditures per student for activities
described in this chapter will not be reduced from the level
of such expenditures in the year prior to the grant; and
``(C) someone at each participating school will be
designated as the primary point of contact for the
partnership;
``(8) an assurance that participating students will have
access to rigorous core academic courses that reflect
challenging State or local academic standards; and
``(9) an assurance that members will provide the
performance information required by the Secretary, which
would be used to base continuation of the grant.
``(c) Preferences.--In reviewing applications under this
chapter, the Secretary shall give preference to projects
that--
``(1) will serve participating schools in which at least 75
percent of the students enrolled are eligible for free or
reduced-price lunch;
``(2) provide a commitment from non-Federal sources to pay
all or part of the cost of college, through tuition
assistance or guarantees (not already available), such as
`last-dollar grants', for participating students; and
``(3) hold participating students responsible for school or
community service and high academic performance.
``SEC. 407D. PROGRAM REQUIREMENTS; USES OF FUNDS.
``(a) Program Requirements.--Projects under this chapter
shall--
``(1) have a program coordinator who is either full-time or
whose primary responsibility is the project under this
chapter;
``(2) provide services to at least one cohort of students,
beginning not later than the 7th grade;
``(3) ensure that the services authorized under this
chapter are provided through the 12th grade to students in
the cohort, including students who attend another
participating school or a secondary school identified under
section 407B(b)(1)(B);
[[Page H2553]]
``(4) include activities and information that foster and
improve parent involvement in promoting postsecondary
education for their children, including the provision of
useful early information on the advantages of a college
education, academic admissions requirements, and the need to
take core courses, admissions and achievement tests,
application procedures, college costs and options, and the
availability of student financial aid;
``(5) include academic counseling, career awareness, and
tutoring or mentoring from trained personnel, as well as
other student support services that enable students to
succeed academically and apply for, enter, and complete
college;
``(6) include training in promoting early college awareness
for classroom teachers, guidance counselors, and staff of the
schools involved in the project; faculty and program
personnel in participating institutions of higher education;
and participating mentors and tutors;
``(7) include activities on college campuses and enrichment
activities associated with postsecondary education; and
``(8) include arrangements that ensure that all
participating students have access to rigorous core courses
that reflect challenging State or local academic standards
and that prepare them for college.
``(b) Use of Funds.--In addition to the activities
described in subsection (a), a recipient of funds under this
chapter may use them--
``(1) where necessary and appropriate to ensure active
participation, to pay stipends to participating students and
their mentors;
``(2) where necessary and appropriate to ensure active
participation, to pay transportation costs for participants
to attend project-sponsored activities;
``(3) to provide out-of-school and summer activities
related to the project;
``(4) for project evaluation; and
``(5) to recognize the responsibility and achievement of
participating students through ceremonies, awards, and other
means.
``SEC. 407E. SERVICES FOR STUDENTS ATTENDING PRIVATE SCHOOLS.
``A local educational agency that participates in an
eligible partnership shall provide services supported with
Federal funds under this chapter on an equitable basis,
consistent with section 14503 of Elementary and Secondary
Education Act of 1965, to students in private schools that--
``(1) have a 7th grade;
``(2) have students at least 50 percent of whom are
eligible for free or reduced-price lunch; and
``(3) are located in the normal attendance area of a
participating school.
``SEC. 407F. EVALUATION.
``In order to improve the operation of the program assisted
under this chapter, the Secretary shall, with funds
appropriated under section 407H(a), make grants to, and enter
into contracts and cooperative agreements with, institutions
of higher education and other public and private institutions
and organizations to evaluate the effectiveness of the
program assisted under this chapter and, as appropriate,
disseminate such results.
``SEC. 407G. PEER REVIEW.
``The Secretary shall use a peer review process to review
applications under this chapter and make recommendations for
funding to the Secretary.
``SEC. 407H. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization of Appropriation.--There are authorized
to be appropriated $140,000,000 for fiscal year 1999 and such
sums as may be necessary for each of the 5 succeeding fiscal
years to carry out this chapter.
``(b) Reservation for Technical Assistance and Peer
Review.--From the amount appropriated under subsection (a)
for any fiscal year, the Secretary may reserve up 0.5 percent
of that amount to obtain additional qualified readers and
additional staff to review applications, to increase the
level of oversight monitoring, to support impact studies,
program assessments and reviews, and to provide technical
assistance to potential applicants and current grantees.
``CHAPTER 4--FRANK TEJEDA SCHOLARSHIP PROGRAM
``SEC. 408A. STATEMENT OF PURPOSE.
``It is the purpose of this chapter to establish a Frank
Tejeda Scholarship Program to recruit and train teachers who
are proficient in both Spanish and English and who show
promise of academic achievement.
``SEC. 408B. SCHOLARSHIPS AUTHORIZED.
``(a) Program Authority.--The Secretary is authorized, in
accordance with the provisions of this chapter, to award
scholarships to individuals consistent with the purposes of
this chapter.
``(b) Tejeda Scholars.--Individuals awarded scholarships
under this chapter shall be known as `Tejeda Scholars'.
``SEC. 408C. ALLOCATION AMONG STATES.
``(a) Allocation Formula.--From the sums appropriated
pursuant to the authority of section 408H for any fiscal
year, the Secretary shall allocate to each State an amount
equal to $5,000 multiplied by the number of scholarships
determined by the Secretary to be available to such State in
accordance with subsection (b).
``(b) Number of Scholarships Available.--The number of
scholarships to be made available in a State for any fiscal
year shall bear the same ratio to the number of scholarships
made available to all States as the State's population ages 5
through 17 bears to the population ages 5 through 17 in all
the States, except that not less than 10 scholarships shall
be made available to any State.
``(c) Use of Census Data.--For the purpose of this section,
the population ages 5 through 17 in a State and in all the
States shall be determined by the most recently available
data, satisfactory to the Secretary, from the Bureau of the
Census. The Bureau of the Census shall produce and publish
intercensal data for Puerto Rico and the other territories.
``SEC. 408D. ELIGIBILITY OF SCHOLARS.
``(a) High School Graduation or Equivalent and Admission to
Institution Required.--Each student awarded a scholarship
under this chapter shall--
``(1) be--
``(A) a low-income individual, as that term is defined in
section 402A(g)(2) of this title; or
``(B) an individual who is eligible for a Pell Grant under
subpart 1 of this part;
``(2) be a citizen of the United States;
``(3) be a resident of the State in which he or she
applies;
``(4) be enrolled or accepted for enrollment on a full- or
part-time basis, at a graduate or undergraduate level, in an
institution of higher education that has an accredited
teacher preparation program;
``(5) have demonstrated proficiency in the English and
Spanish languages, as certified by the applicant's academic
institution; and
``(6) have agreed, upon graduation from such program--
``(A) to serve no less than one year for each year of
scholarship assistance, but no fewer than two years of
service in total, as a teacher in a public elementary or
secondary school in which there is a demonstrated need for
Spanish-speaking teachers and professionals, as determined by
the Secretary;
``(B) to complete such service within 6 years of
graduation; and
``(C) that if the student is unable to complete such
service, the student will, except as provided in subsection
(c), repay the Secretary the total amount, or a pro rata
amount of the scholarship received under this chapter in
proportion to the amount of service completed, plus interest
and collection costs in the same manner as repayment of a
student loan made under part D of this title.
``(b) Selection Based on Promise of Academic Achievement.--
Each student awarded a scholarship under this chapter must
demonstrate outstanding academic achievement and show promise
of continued academic achievement, as certified by the
student's academic institution.
``(c) Exception to Repayment Obligation.--
``(1) Deferral during certain periods.--A recipient shall
not be considered in violation of the agreement entered into
pursuant to subsection (a)(4)(C) during any period in which
the recipient--
``(A) is pursuing a full-time course of study related to
the field of teaching at an eligible institution;
``(B) is serving, not in excess of 3 years, as a member of
the armed services of the United States;
``(C) is temporarily totally disabled for a period of time
not to exceed 3 years as established by sworn affidavit of a
qualified physician;
``(D) is unable to secure employment for a period not to
exceed 12 months by reason of having to care for a spouse,
child, parent, or immediate family member who is disabled;
``(E) is seeking and unable to find full-time employment
for a single period not to exceed 12 months;
``(F) is seeking and unable to find full-time employment as
a teacher in a public or private nonprofit preschool,
elementary or secondary school, or education program for a
single period not to exceed 27 months; or
``(G) satisfies the provisions of additional repayment
exceptions that may be prescribed by the Secretary in
regulations issued pursuant to this subpart.
``(2) Forgiveness if permanently totally disabled.--A
recipient shall be excused from repayment of any scholarship
assistance received under this chapter if the recipient
becomes permanently totally disabled as established by sworn
affidavit of a qualified physician.
``SEC. 408E. SELECTION OF SCHOLARS.
``(a) Establishment of Criteria.--The Secretary shall
establish criteria for the selection of scholars under this
chapter that meet the requirements of section 408D.
``(b) Timing of Selection.--The selection process shall be
completed, and the awards made, no later than May 1 of the
academic year preceding the academic year for which the award
will be used.
``SEC. 408F. STIPENDS AND SCHOLARSHIP CONDITIONS.
``(a) Amount of Award.--Each student awarded a scholarship
under this chapter shall receive a stipend of $5,000 for the
academic year of study for which the scholarship is awarded,
except that in no case shall the total amount of financial
aid awarded to such student exceed such student's total cost-
of-attendance.
``(b) Use of Award.--The State educational agency shall
establish procedures to assure that a scholar awarded a
scholarship under this chapter pursues a course of study at
an institution of higher education.
``SEC. 408G. CONSTRUCTION OF NEEDS PROVISIONS.
``Notwithstanding section 471, nothing in this chapter, or
any other Act, shall be construed to permit the receipt of a
scholarship under this chapter to be counted for any needs
test in connection with the awarding of any grant or the
making of any loan under this Act or any other provision of
Federal law relating to educational assistance.
``SEC. 408H. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated for this chapter
$5,000,000 for fiscal year 1998 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
``CHAPTER 5--CAMPUS-BASED CHILD CARE
``SEC. 410A. CAMPUS-BASED CHILD CARE.
``(a) Program Authorized.--
[[Page H2554]]
``(1) Authority.--The Secretary may award grants to
institutions of higher education to assist the institutions
in providing campus-based child care services to low-income
students.
``(2) Amount of grants.--
``(A) In general.--The amount of a grant awarded to an
institution of higher education under this section for a
fiscal year shall not exceed 1 percent of the total amount of
all Federal Pell Grant funds awarded to students enrolled at
the institution of higher education for the preceding fiscal
year.
``(B) Minimum.--A grant under this section shall be awarded
in an amount that is not less than $10,000.
``(3) Duration and payments.--
``(A) Duration.--The Secretary shall award a grant under
this section for a period of 3 years.
``(B) Payments.--Subject to paragraph (2), the Secretary
shall make annual grant payments under this section.
``(4) Eligible institutions.--An institution of higher
education shall be eligible to receive a grant under this
section for a fiscal year if the total amount of all Federal
Pell Grant funds awarded to students enrolled at the
institution of higher education for the preceding fiscal year
equals or exceeds $350,000.
``(5) Use of funds.--Grant funds under this section shall
be used by an institution of higher education to support or
establish a campus-based child care program serving the needs
of low-income students enrolled at the institution of higher
education.
``(6) Definition of low-income student.--For the purpose of
this section, the term `low-income student' means a student
who is eligible to receive a Federal Pell Grant for the
fiscal year for which the determination is made.
``(b) Applications.--An institution of higher education
desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner,
and accompanied by such information as the Secretary may
require. Each application shall--
``(1) demonstrate that the institution is an eligible
institution described in subsection (a)(4);
``(2) specify the amount of funds requested;
``(3) demonstrate the need of low-income students at the
institution for campus-based child care services by including
in the application student demographics and other relevant
data;
``(4) identify the resources the institution will draw upon
to support the child care program and the participation of
low-income students in the program, such as accessing social
services funding, using student activity fees to help pay the
costs of child care, using resources obtained by meeting the
needs of parents who are not low-income students, accessing
foundation, corporate, or other institutional support,
and demonstrating that the use of the resources will not
result in increases in student tuition;
``(5) contain an assurance that the institution will meet
the child care needs of low-income students through the
provision of services, or through a contract for the
provision of services;
``(6) provide a timeline, covering the period from receipt
of the grant through the provision of the child care
services, delineating the specific steps the institution will
take to achieve the goal of providing low-income students
with child care services;
``(7) specify any measures the institution will take to
assist low-income students with child care during the period
before the institution provides child care services;
``(8) include a plan for identifying resources needed for
the child care services, including space in which to provide
child care services, and technical assistance if necessary;
``(9) contain an assurance that any child care facility
assisted under this section will meet the applicable State or
local government licensing, certification, approval, or
registration requirements; and
``(10) contain a plan for any child care facility assisted
under this section to become accredited within 3 years of the
date the institution first receives assistance under this
section.
``(c) Reporting Requirements; Continuing Eligibility.--
``(1) Reporting requirements.--
``(A) Reports.--Each institution of higher education
receiving a grant under this section shall report to the
Secretary 18 months and 36 months after receiving the first
grant payment under this section.
``(B) Contents.--The report shall include--
``(i) data on the population served under this section;
``(ii) information on campus and community resources and
funding used to help low-income students access child care
services;
``(iii) information on progress made toward accreditation
of any child care facility; and
``(iv) information on the impact of the grant on the
quality, availability, and affordability of campus-based
child care services.
``(2) Continuing eligibility.--The Secretary shall make the
third annual grant payment under this section to an
institution of higher education only if the Secretary
determines, on the basis of the 18-month report submitted
under paragraph (1), that the institution is making a good
faith effort to ensure that low-income students at the
institution have access to affordable, quality child care
services.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$30,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.''.
SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY
GRANTS.
(a) Extension of Authority.--Section 413A(b)(1) (20 U.S.C.
1070b(b)(1)) is amended by striking ``1993'' and inserting
``1999''.
(b) Use of Funds for Less-Than-Full-Time Students.--
Subsection (d) of section 413C (20 U.S.C. 1070b-2(d)) is
amended by striking ``and if the total financial need'' and
all that follows and inserting the following: ``, then grant
funds shall be made available to such independent and less-
than-full-time students.''.
(c) Allocation of Funds.--Section 413D (20 U.S.C. 1070b-3)
is amended--
(1) by striking subsection (b); and
(2) in subsection (c)(1), by striking ``three-quarters of
the remainder'' and inserting ``the remainder'';
(3) in subsection (c)(2)(A)(i), by striking ``subsection
(d)'' and inserting ``subsection (c)'';
(4) by redesignating subsections (c), (d), (e), and (f) as
subsections (b), (c), (d), and (e), respectively; and
(5) by inserting after subsection (e) (as so redesignated)
the following new subsection:
``(f) Carry-Over/Carry-Back Authority.--
``(1) Carry-over authority.--
``(A) Carry-over up to 10 percent.--Of the sums granted to
an eligible institution under this subpart for any fiscal
year, 10 percent may, at the discretion of the institution,
remain available for expenditure during the succeeding fiscal
year to carry out the program under this subpart.
``(B) Reallocation of excess.--Any of the sums so granted
to an institution for a fiscal year which are not needed by
that institution to operate programs under this subpart
during that fiscal year, and which it does not wish to use
during the next fiscal year as authorized in the preceding
sentence, shall remain available to the Secretary for making
grants under section 413B to other institutions in the same
State until the close of the second fiscal year next
succeeding the fiscal year for which such funds were
appropriated.
``(2) Carry-back authority.--
``(A) Carry-back up to 10 percent.--Up to 10 percent of the
sums the Secretary determines an eligible institution may
receive from funds which have been appropriated for a fiscal
year may be used by the institution for expenditure during
the fiscal year preceding the fiscal year for which the sums
were appropriated.
``(B) Use of carried-back funds.--An eligible institution
may make grants to students after the end of the academic
year, but prior to the beginning of the succeeding fiscal
year, from such succeeding fiscal year's appropriations.''.
SEC. 407. GRANTS TO STATES FOR STATE STUDENT INCENTIVES.
(a) Authorization of Appropriations.--Section 415A(b) of
the Higher Education Act of 1965 (20 U.S.C. 1070c(b)) is
amended--
(1) in paragraph (1), by striking ``1993'' and inserting
``1999'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Reservation.--For any fiscal year for which the
amount appropriated under paragraph (1) exceeds $25,000,000,
the excess shall be available to carry out section 415E.''.
(b) Special Leveraging Educational Assistance Partnership
Program.--Subpart 4 of part A of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070c et seq.) is amended--
(1) by redesignating section 415E as section 415F; and
(2) by inserting after section 415D the following:
``SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE
PARTNERSHIP PROGRAM.
``(a) In General.--From amounts reserved under section
415A(b)(2) for each fiscal year, the Secretary shall--
``(1) make allotments among States in the same manner as
the Secretary makes allotments among States under section
415B; and
``(2) award grants to States, from allotments under
paragraph (1), to enable the States to pay the Federal share
of the cost of the authorized activities described in
subsection (c).
``(b) Authorized Activities.--Each State receiving a grant
under this section may use the grant funds for--
``(1) increasing the dollar amount of grants awarded under
section 415B to eligible students who demonstrate financial
need;
``(2) carrying out transition programs from secondary
school to postsecondary education for eligible students who
demonstrate financial need;
``(3) carrying out a financial aid program for eligible
students who demonstrate financial need and wish to enter
teaching or computer-related careers, or other fields of
study determined by the State to be critical to the State's
workforce needs;
``(4) carrying out early intervention programs, mentoring
programs, and career education programs for eligible students
who demonstrate financial need; and
``(5) awarding merit or academic scholarships to eligible
students who demonstrate financial need.
``(c) Maintenance of Effort Requirement.--Each State
receiving a grant under this section for a fiscal year shall
provide the Secretary an assurance that the aggregate amount
expended per student or the aggregate expenditures by the
State, from funds derived from non-Federal sources, for the
authorized activities described in subsection (b) for the
preceding fiscal year were not less than the amount expended
per student or the aggregate expenditures by the State for
the activities for the second preceding fiscal year. The
Secretary may waive this subsection for good cause, as
determined by the Secretary.
``(d) Federal Share.--The Federal share of the cost of the
authorized activities described in subsection (b) for any
fiscal year shall be 25 percent.''.
(c) Technical and Conforming Amendments.--
(1) Purpose.--Subsection (a) of section 415A of the Higher
Education Act of 1965 (20 U.S.C. 1070c(a)) is amended to read
as follows:
``(a) Purpose of Subpart.--It is the purpose of this
subpart to make incentive grants available to States to
assist States in--
[[Page H2555]]
``(1) providing grants to--
``(A) eligible students attending institutions of higher
education or participating in programs of study abroad that
are approved for credit by institutions of higher education
at which such students are enrolled; and
``(B) eligible students for campus-based community service
work-study; and
``(2) carrying out the activities described in section
415F.''.
(2) Allotment.--Section 415B(a)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1070c-1(a)(1)) is amended by inserting
``and not reserved under section 415A(b)(2)'' after
``415A(b)(1)''.
SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE
ENGAGED IN MIGRANT AND SEASONAL FARMWORK.
(a) Coordination.--Section 418A(d) (20 U.S.C. 1070d-2(d))
is amended by inserting after ``contains assurances'' the
following: ``that the grant recipient will coordinate its
project, to the extent feasible, with other local, State, and
Federal programs to maximize the resources available for
migrant students, and''.
(b) Extension of Authority.--Section 418A(g) is amended by
striking ``1993'' each place it appears and inserting
``1999''.
(c) Data Collection.--Section 418A is amended by adding at
the end the following new subsection:
``(h) Data Collection.--The National Center for Education
Statistics shall collect postsecondary education data on
migrant students.''.
(d) Technical Amendments.--Section 418A(e) is amended by
striking ``authorized by subpart 4 of this part in accordance
with section 417A(b)(2)'' and inserting ``in accordance with
section 402A(c)(1)''.
SEC. 409. BYRD SCHOLARSHIPS.
(a) Eligibility.--Section 419G (20 U.S.C. 1070d-37) is
amended by adding at the end the following new subsection:
``(e) Termination of Eligibility.--The eligibility of
students from the Federated States of Micronesia, the
Republic of the Marshall Islands, and Palau shall expire on
September 30, 2001.''.
(b) Authorization of Appropriations.--Section 419K (20
U.S.C. 1070d-41) is amended by striking ``$10,000,000 for
fiscal year 1993'' and inserting ``$40,000,000 for fiscal
year 1999''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 411. LIMITATION REPEALED.
Section 421 (20 U.S.C. 1071) is amended by striking
subsection (d).
SEC. 412. ADVANCES TO RESERVE FUNDS.
Section 422 (20 U.S.C. 1072) is amended--
(1) in subsection (a)(2), by striking ``428(c)(10)(E)'' and
inserting ``428(c)(9)(E)'';
(2) in subsection (c)(6)(B)(i), by striking ``handle
written'' and inserting ``handle written, electronic,'';
(3) in subsection (c)(7)
(A) by striking ``to a guaranty agency--'' and everything
that follows through ``(B) if the Secretary'' and inserting
``to a guaranty agency, if the Secretary'';
(B) by striking ``428(c)(10)(F)(v)'' and inserting
``428(c)(9)(F)(v)'';
(C) by inserting ``and'' after ``cash needs,''; and
(D) by striking ``or ensure'' and everything that follows
and inserting a period; and
(4) in the first and second sentences of subsection (g)(1),
by striking ``or the program authorized by part D of this
title'' each place it appears.
SEC. 413. GUARANTY AGENCY REFORMS.
(a) Federal Student Loan Reserve Fund.--Part B of title IV
is amended by inserting after section 422 (20 U.S.C. 1072)
the following new section:
``SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.
``(a) Establishment.--Each guaranty agency shall, not later
than 60 days after the date of enactment of this section,
deposit all funds, securities, and other liquid assets
contained in the reserve fund established pursuant to section
422 of this part into a Federal Student Loan Reserve Fund (in
this section and section 422B referred to as the `Federal
Fund') which shall be an account of a type selected by the
agency, with the approval of the Secretary.
``(b) Investment of Funds.--Funds maintained in the Federal
Fund shall be invested in obligations issued or guaranteed by
the United States or a State, or in other similarly low-risk
securities selected by the guaranty agency.
``(c) Additional Deposits.--After the establishment of the
Federal Fund, a guaranty agency shall deposit into the
Federal Fund--
``(1) all amounts received from the Secretary as payment of
reinsurance on loans pursuant to section 428(c)(1);
``(2) from amounts collected on behalf of the obligation of
a defaulted borrower, a percentage amount equal to the
complement of the reinsurance percentage in effect when
payment under the guaranty agreement was made with respect to
the defaulted loan pursuant to sections 428(c)(6)(A) and
428F(a)(1)(B); and
``(3) insurance premiums collected from borrowers pursuant
to sections 428(b)(1)(H) and 428H(h).
``(d) Uses of Funds.--Subject to subsection (f), the
Federal Fund may only be used by a guaranty agency--
``(1) to pay lender claims pursuant to section
428(b)(1)(G), section 428(j), section 437, and section
439(q); and
``(2) to pay into the Agency Operating Fund established
pursuant to section 422B a default prevention fee in
accordance with section 428(l).
``(e) Ownership of Federal Fund.--
``(1) In general.--The Federal Fund of the guaranty agency,
and any assets purchased or developed with funds from the
Federal Fund or any other funds considered reserve funds on
the date of enactment of this section, regardless of who
holds or controls the reserves or assets, shall be considered
to be the property of the United States to be used in the
operation of the program authorized by this part, as provided
in subsection (d) of this section.
``(2) Nonliquid reserve fund and other assets.--
Notwithstanding any other provision of law, nonliquid reserve
fund assets, such as buildings and equipment purchased or
developed by the guaranty agency with funds from the Federal
Fund, or any other funds considered reserve funds on the date
of enactment of this section shall--
``(A) remain the property of the United States;
``(B) be used only for such purposes as the Secretary
determines are appropriate; and
``(C) be subject to such restrictions on the disposition of
such assets (which may include a requirement that any sale of
such assets be at not less than fair market value) as the
Secretary determines are appropriate.
``(f) Transition.--
``(1) In general.--In order to establish the Agency
Operating Fund authorized by section 422B, each guaranty
agency may transfer up to 180 days cash expenses for normal
operating expenses, as a working capital reserve as defined
in Office of Management and budget circular A-87 (Cost
Accounting Standards) from the Federal Fund for deposit into
the Agency Operating Fund for use in the performance of its
duties under this part. Such transfers may occur during the
first three years following the establishment of the
Operating Fund. However, no agency may transfer in excess of
50 percent of the Federal Fund balance to its Operating Fund
during any fiscal year. In determining the transfer amount,
the agency shall insure that sufficient funds remain in the
Federal Fund to pay lender claims within the required time
periods and to meet the reserve recall requirements of the
Balanced Budget Act of 1997.
``(2) Repayment provisions.--Each guaranty agency shall
begin repayment of sums transferred pursuant to this
subsection no later than the start of the fourth year after
the establishment of the Agency Operating Fund, and shall
repay all amounts transferred no later than 5 years from the
date of the establishment of the Agency Operating Fund. Each
guaranty agency shall provide to the Secretary, on an annual
basis, a financial analysis demonstrating its ability to
repay all outstanding amounts while any transferred amounts
are owned to the Federal Fund.
``(3) Special rule.--In applying the minimum reserve level
required by section 428(c)(9)(A), the Secretary shall include
all amounts owed to the Federal Fund by the agency due to
transfers allowed under paragraph (1) in the calculation.''.
(b) Agency Operating Fund Established.--Part B of title IV
is further amended by inserting after section 422A (as added
by subsection (a)) the following new section:
``SEC. 422B. AGENCY OPERATING FUND.
``(a) Establishment.--Each guaranty agency shall, not later
than 60 days after the date of enactment of this section,
establish a fund designated as the Agency Operating Fund
(hereinafter referred to as the `Operating Fund').
``(b) Investment of Funds.--Funds deposited into the
Operating Fund shall be invested at the discretion of the
guaranty agency in accordance with prudent investor
standards.
``(c) Additional Deposits.--After the establishment of the
Operating Fund, the guaranty agency shall deposit into the
Operating Fund--
``(1) the loan processing and issuance fee paid by the
Secretary pursuant to section 428(f);
``(2) the portfolio maintenance fee paid by the Secretary
pursuant to section 458;
``(3) the default prevention fee paid in accordance with
section 428(l);
``(4) amounts retained by the guaranty agency pursuant to
section 428(c)(6)(B) from collection on defaulted loans held
by the agency, after payment of the Secretary's equitable
share, excluding amounts deposited in the Federal Fund
pursuant to section 422A(c)(2); and
``(5) interest earned on the Federal Fund during the first
3 years after the date of enactment of this section, but only
to the extent permitted by regulations prescribed by the
Secretary to permit a limited number of guaranty agencies
(not to exceed 10) essential resources to maintain sufficient
operating funds and to restructure their operations in
accordance with the requirements of this section and section
422A.
``(d) Uses of Funds.--
``(1) In general.--Funds in the Operating Fund shall be
used for activities related to student financial aid,
including application processing, loan disbursement,
enrollment and repayment status management, default
prevention activities, default collection activities, school
and lender training, financial awareness and outreach
activities, compliance monitoring, other loan program related
activities in support of postsecondary education and other
student financial aid related activities as determined by the
guaranty agency.
``(2) Special rule.--The guaranty agency may, in its
discretion, transfer funds from the Operating Fund to the
Federal Student Loan Reserve Fund for use in accordance with
section 422A. Such transfer shall be irrevocable, and any
funds so transferred shall become the property of the United
States.
``(3) Definitions.--For purposes of this subsection:
``(A) The term `default collection activities' means
activities of a guaranty agency which are directly related to
the collection of the loan on which a default claim has been
paid to the participating lender, including the due diligence
activities required pursuant to regulations of the Secretary.
``(B) The term `default prevention activities' means
activities of a guaranty agency which are directly related to
providing collection assistance to the lender on a delinquent
loan, prior to
[[Page H2556]]
the loan's being legally in a default status, including due
diligence activities required pursuant to regulations of the
Secretary.
``(C) The term `enrollment and repayment status management'
means activities of a guaranty agency which are directly
related to ascertaining the student's enrollment status,
including prompt notification to the lender of such status,
an audit of the note or written agreement to determine if the
provisions of that note or agreement are consistent with the
records of the guaranty agency as to the principal amount of
the loan guaranteed, and an examination of the note or
agreement to assure that the repayment provisions are
consistent with the provisions of this part.
``(e) Ownership of Operating Fund.--The Operating Fund of
the guaranty agency shall be considered to be the property of
the guaranty agency. The Secretary may regulate the uses or
expenditure of moneys in the Operating Fund with respect to
activities required under guaranty agency agreements under
subsections (b) and (c) of section 428 until such time as a
guaranty agency has repaid to the Federal Fund all reserve
funds transferred under section 422A(f). During any period in
which funds are owed to the Federal Fund as a result of a
transfer under 422A(f), moneys in the Operating Fund may only
be used for expenses related to the student loan programs
authorized under this part. The Secretary may require such
necessary reports and audits as provided in section
428(b)(2).''.
(c) Additional Recall of Reserves.--Section 422 (as amended
by section 412) is further amended by adding at the end the
following new subsection:
``(i) Additional Recall of Reserves.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary shall recall $30,000,000 for each of the
fiscal years 1999, 2000, 2001, 2002, and 2003 from the
reserve funds held by guaranty agencies.
``(2) Deposit.--Funds recalled by the Secretary under this
subsection shall be deposited in the Treasury.
``(3) Required share.--The Secretary shall require each
guaranty agency to return annually reserve funds under
paragraph (1) based on one-fifth of the agency's required
share. For purposes of this paragraph, a guaranty agency's
required share shall be determined as follows:
``(A) The Secretary shall impose on each guaranty agency an
equal percentage reduction in the amount of the agency's
reserve funds held as of September 30, 1996.
``(B) The equal percentage reduction shall be the
percentage obtained by dividing--
``(i) $150,000,000 by
``(ii) the total amount of all such agencies' reserve funds
held as of September 30, 1996.
``(4) Offset of required shares.--If any guaranty returns
to the Secretary any reserves in excess of the amount
required under this subsection or subsection (h), the total
amount required to be returned under paragraph (1) shall be
reduced by the amount of such additional reserve return.
``(5) Definition of reserve funds.--The term `reserve
funds' when used with respect to a guaranty agency--
``(A) includes any reserve funds in cash or liquid assets
held by the guaranty agency, or held by, or under the control
of, any other entity; and
``(B) does not include building, equipment, or other
nonliquid assets.''.
(d) Conforming Amendments.--
(1) Reinsurance payments.--
(A) Amendments.--Section 428(c)(1) (20 U.S.C. 1078(c)(1))
is amended--
(i) in subparagraph (A), by striking ``98 percent'' and
inserting ``95 percent'';
(ii) in subparagraph (B)(i), by striking ``88 percent'' and
inserting ``85 percent''; and
(iii) in subparagraph (B)(ii), by striking ``78 percent''
and inserting ``75 percent'';
(iv) in subparagraph (E)--
(I) by striking ``for `98 percent';'' and inserting ``for
`95 percent';'';
(II) by striking ``for `88 percent';'' and inserting ``for
`85 percent';''; and
(III) by striking ``for `78 percent'.'' and inserting ``for
`75 percent'.'';
(v) in subparagraph (F)--
(I) by striking ``for `98 percent';'' and inserting ``for
`95 percent';'';
(II) by striking ``for `88 percent';'' and inserting ``for
`85 percent';''; and
(III) by striking ``for `78 percent'.'' and inserting ``for
`75 percent'.'';
(vi) by striking subparagraph (D) and redesignating
subparagraphs (E) and (F) as subparagraphs (D) and (E),
respectively.
(B) Effective date.--The amendments made by subparagraph
(A) of this paragraph apply to loans for which the first
disbursement is made on or after October 1, 1998.
(2) Equitable share.--Section 428(c)(6) is amended--
(A) in subparagraph (A)--
(i) by striking ``(A) For the purpose'' and inserting ``For
the purpose''; and
(ii) by striking clause (ii) and inserting the following:
``(ii) an amount equal to 24 percent of such payments for
use in accordance with section 422B.'';
(B) by striking subparagraphs (B) and (C); and
(C) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (B).
(3) Guaranty agency reserve level.--Section 428(c)(9)(C) is
amended--
(A) by striking ``80 percent pursuant to section
428(c)(1)(B)(ii)'' and inserting ``85 percent pursuant to
paragraph (1)(B)(i) of this subsection''; and
(B) by striking ``30 working days'' and inserting ``45
working days''.
(4) Payment of certain costs.--Section 428(f) is amended--
(A) by striking paragraph (1)(A) and inserting the
following:
``(1) Payment for certain activities.--(A) The Secretary
shall, in accordance with the provisions of this paragraph,
pay to each guaranty agency for each fiscal year a loan
processing and issuance fee equal to 0.65 percent of the
total principal amount of the loans on which insurance was
issued under this part during such fiscal year by such
agency.''; and
(B) in paragraph (1)(B), by striking the first sentence and
inserting the following: ``The payment required by
subparagraph (A) shall be paid on a quarterly basis.''.
(5) Default aversion assistance.--Section 428(l) is amended
to read as follows:
``(l) Default Aversion Assistance.--
``(1) Assistance required.--Upon receipt of a proper
request from a lender received not earlier than the 60th day
of delinquency, a guaranty agency having an agreement with
the Secretary under subsection (c) of this section shall
engage in default aversion activities designed to prevent the
default by a borrower on a loan covered by such agreement.
``(2) Reimbursement.--(A) A guaranty agency may, in
accordance with the provisions of this paragraph, transfer
from the Federal Student Loan Reserve Account to the
Operating Account a default aversion fee. Such fee shall be
paid for any loan on which a claim for default has not been
presented that the guaranty agency successfully brings into
current repayment status on or before the 210th day after the
loan becomes 60 days delinquent.
``(B) The default aversion fee shall be equal to 1 percent
of the total unpaid principal and accrued interest on the
loan at the time the request is submitted by the lender. Such
fee shall not be paid more than once on any loan for which
the guaranty agency averts the default unless the borrower
remained current in payments for at least 12 months prior to
the subsequent delinquency. A guaranty agency may transfer
such fees earned under this subsection no more frequently
than monthly.
``(C) For the purpose of earning the default aversion fee,
the term `current repayment status' means that the borrower
is not delinquent in the payment of any principal or interest
on the loan.''.
SEC. 414. SCOPE AND DURATION OF PROGRAM.
Section 424(a) (20 U.S.C. 1074(a)) is amended--
(1) by striking ``October 1, 2002'' and inserting ``October
1, 2004''; and
(2) by striking ``September 30, 2006'' and inserting
``September 30, 2008''.
SEC. 415. LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS
AND FEDERAL LOAN INSURANCE.
Section 425(a)(1)(A) (20 U.S.C. 1075(a)(1)(A)) is amended--
(1) in clause (i)--
(A) by inserting ``and'' after the semicolon at the end of
subclause (I); and
(B) by striking subclauses (II) and (III) and inserting the
following:
``(II) if such student is enrolled in a program of
undergraduate education which is less than one academic year,
the maximum annual loan amount that such student may receive
may not exceed the amount that bears the same ratio to the
amount specified in subclause (I) as the length of such
program measured in semester, trimester, quarter, or clock
hours bears to one academic year;''; and
(2) by inserting ``and'' after the semicolon at the end of
clause (iii).
SEC. 416. APPLICABLE INTEREST RATES.
(a) Applicable Interest Rates.--
(1) Amendment.--Section 427A (20 U.S.C. 1077a) is amended
to read as follows:
``SEC. 427A. APPLICABLE INTEREST RATES.
``(a) Interest Rates for New Loans On or After July 1,
1998.--
``(1) In general.--Subject to paragraph (2), with respect
to any loan made, insured, or guaranteed under this part
(other than a loan made pursuant to section 428B or 428C) for
which the first disbursement is made on or after July 1,
1998, the applicable rate of interest shall, during any 12-
month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--
``(A) the bond equivalent rate of 91-day Treasury bills
auctioned at the final auction held prior to such June 1;
plus
``(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
``(2) In school and grace period Rules.--With respect to
any loan under this part (other than a loan made pursuant to
section 428B or 428C) for which the first disbursement is
made on or after July 1, 1998, the applicable rate of
interest for interest which accrues--
``(A) prior to the beginning of the repayment period of the
loan; or
``(B) during the period in which principal need not be paid
(whether or not such principal is in fact paid) by reason of
a provision described in section 428(b)(1)(M) or
427(a)(2)(C),
shall be determined under paragraph (1) by substituting `1.7
percent' for `2.3 percent'.
``(3) PLUS loans.--With respect to any loan under section
428B for which the first disbursement is made on or after
July 1, 1998, the applicable rate of interest shall be
determined under paragraph (1)--
``(A) by substituting `3.1 percent' for `2.3 percent'; and
``(B) by substituting `9.0 percent' for `8.25 percent'.
``(b) Lesser Rates Permitted.--Nothing in this section or
section 428C shall be construed to prohibit a lender from
charging a borrower interest at a rate less than the rate
which is applicable under this part.
``(c) Consultation.--The Secretary shall determine the
applicable rate of interest under this
[[Page H2557]]
section after consultation with the Secretary of the Treasury
and shall publish such rate in the Federal Register as soon
as practicable after the date of determination.''.
(2) Conforming amendment.--Section 428B(d)(4) (20 U.S.C.
1078-2(d)(4)) is amended by striking ``section 427A(c)'' and
inserting ``section 427A(a)(3)''.
(b) Special Allowances.--
(1) Amendment.--Section 438(b)(2)(F) (20 U.S.C. 1087-
1(b)(2)(F)) is amended to read as follows:
``(F) Loans disbursed after july 1, 1998.--
``(i) In general.--Subject to paragraph (4) and clauses
(ii), (iii), and (iv) of this subparagraph, the special
allowance paid pursuant to this subsection on loans for which
the first disbursement is made on or after July 1, 1998,
shall be computed--
``(I) by determining the average of the bond equivalent
rates of 91-day Treasury bills auctioned for such 3-month
period;
``(II) by subtracting the applicable interest rates on such
loans from such average bond equivalent rate;
``(III) by adding 2.8 percent to the resultant percent; and
``(IV) by dividing the resultant percent by 4.
``(ii) In school and grace period.--In the case of any loan
for which the first disbursement is made on or after July 1,
1998, and for which the applicable rate of interest is
described in section 427A(a)(2), clause (i)(III) of this
subparagraph shall be applied by substituting `2.2
percent' for `2.8 percent'.
``(iii) PLUS loans.--In the case of any loan for which the
first disbursement is made on or after July 1, 1998, and for
which the applicable rate of interest is described in section
427A(a)(3), clause (i)(III) of this subparagraph shall be
applied by substituting `3.1 percent' for `2.8 percent',
subject to clause (iv) of this subparagraph.
``(iv) Limitation on special allowances for PLUS loans.--In
the case of loans disbursed on or after July 1, 1998, for
which the interest rate is determined under 427A(a)(3), a
special allowance shall not be paid for a loan made under
section 428B unless the rate determined for any 12-month
period under section 427A(a)(3) exceeds 9 percent.''.
(2) Conforming amendment.--Section 438(b)(2)(C)(ii) is
amended by striking ``In the case'' and inserting ``Subject
to subparagraph (F), in the case''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to any loan made, insured, or
guaranteed under part B of title IV of the Higher Education
Act of 1965 for which the first disbursement is made on or
after July 1, 1998.
SEC. 417. FEDERALLY GUARANTEED STUDENT LOANS.
(a) Requirements for Federal Interest Subsidies.--Section
428(a)(2) (20 U.S.C. 1078(a)(2)) is amended by striking
everything preceding subparagraph (D) and inserting the
following:
``(2) Additional requirements to receive subsidy.--(A) Each
student qualifying for a portion of an interest payment under
paragraph (1) shall provide to the lender a statement from
the eligible institution, at which the student has been
accepted for enrollment, or at which the student is in
attendance, which certifies the eligibility of the student to
receive a loan under this part and the amount of the loan for
which such student is eligible.
``(B) A student shall qualify for a portion of an interest
payment under paragraph (1) if the eligible institution has
provided the lender with a statement that--
``(i) at the lender's request, sets forth such student's
estimated cost of attendance (as determined under section
472);
``(ii) sets forth such student's estimated financial
assistance; and
``(iii) sets forth a schedule for disbursement of the
proceeds of the loan in installments, consistent with the
requirements of section 428G.
``(C) For the purpose of clause (ii) of subparagraph (B), a
student shall qualify for a portion of an interest payment
under paragraph (1) if the eligible institution has provided
the lender with a statement evidencing a determination of
need for a loan (as determined under part F of this title)
and the amount of such need, subject to the provisions of
subparagraph (D).''.
(b) Duration of Authority.--Section 428(a)(5) is amended--
(1) by striking ``September 30, 2002'' and inserting
``September 30, 2004''; and
(2) by striking ``September 30, 2006'' and inserting
``September 30, 2008''.
(c) Annual Loan Limits.--Section 428(b)(1)(A) is amended--
(1) in clause (i)--
(A) by inserting ``and'' after the semicolon at the end of
subclause (I); and
(B) by striking subclauses (II) and (III) and inserting the
following:
``(II) if such student is enrolled in a program of
undergraduate education which is less than one academic year,
the maximum annual loan amount that such student may receive
may not exceed the amount that bears the same ratio to the
amount specified in subclause (I) as the length of such
program measured in semester, trimester, quarter, or clock
hours bears to one academic year;''; and
(2) by inserting ``and'' after the semicolon at the end of
clause (iii).
(d) Selection of Repayment Plans.--Section 428(b)(1)(D) is
amended by striking ``and (iii)'' and inserting the
following: ``(iii) the student borrower may annually change
the selection of a repayment plan under this part, and
(iv)''.
(e) Coinsurance.--Section 428(b)(1)(G) is amended by
striking ``not less than''.
(f) Deferments.--Section 428(b)(1)(M) is amended--
(1) in clause (i)(I), by inserting before the semicolon the
following: ``, except that no borrower, notwithstanding the
provisions of the promissory note, shall be required to
borrow an additional loan under this title in order to be
eligible to receive a deferment under this clause''; and
(2) in clause (ii), by inserting before the semicolon the
following: ``, except that no borrower who qualifies for
unemployment benefits shall be required to provide any
additional paperwork for a deferment under this clause''.
(g) Limitation, Suspension, and Termination.--Section
428(b)(1)(U) is amended--
(1) by striking ``emergency action,,'' each place it
appears and inserting ``emergency action,''; and
(2) by striking ``a compliance audit of each lender'' and
inserting the following: ``in the case of any lender that
originates or holds more than $5,000,000 in loans made under
this title during an annual audit period, a compliance audit
of such lender''.
(h) Additional Insurance Program Requirements.--Section
428(b)(1) is further amended--
(1) by striking ``and'' at the end of subparagraph (W);
(2) in subparagraph (X)--
(A) by striking ``428(c)(10)'' and inserting ``428(c)(9)'';
and
(B) by striking the period at the end and inserting ``;
and''; and
(3) by adding at the end the following new subparagraph:
``(Y) provides that the lender shall determine the
eligibility of a borrower for a deferment described in
subparagraph (M)(i) based on receipt of (i) a request for
deferment from the borrower, (ii) a newly completed loan
application that documents the borrower's eligibility for a
deferment, or (iii) student status information received by
the lender that the borrower is enrolled on at least a half-
time basis.''.
(i) Restrictions on Inducements.--Section 428(b)(3) is
amended--
(1) by striking subparagraph (C) and inserting the
following:
``(C) conduct unsolicited mailings of student loan
application forms to students enrolled in secondary school or
a postsecondary institution, or to parents of such students,
except that applications may be mailed to students who have
previously received loans guaranteed under this part by the
guaranty agency; or''; and
(2) by adding at the end the following new sentence:
``It shall not be a violation of this paragraph for a
guaranty agency to provide assistance to institutions of
higher education comparable to the kinds of assistance
provided to institutions of higher education by the
Department of Education.''.
(j) Guaranty Agency Information to Eligible Institutions.--
Section 428(c)(2)(H)(ii) is amended to read as follows:
``(ii) the guaranty agency shall not require the payment
from the institution of any fee for such information; and''.
(k) Forbearance.--Section 428(c)(3) is amended--
(1) in subparagraph (A)(i), by striking ``written'';
(2) in subparagraph (B), by inserting before the semicolon
the following: ``, including forbearance granted after
consideration of a borrower's total debt burden''; and
(3) in the last sentence--
(A) by striking ``and (ii)'' and inserting ``(ii)''; and
(B) by inserting before the period at the end the
following: ``, and (iii) forbearance for periods not to
exceed 60 days if the lender reasonably determines that such
suspensions are necessary to research or process information
relative to such loan or to collect appropriate documentation
relating to the borrower's request for a deferment or
forbearance''.
(l) Assignment.--Section 428(c)(8) is amended--
(1) by striking ``(A)''; and
(2) by striking subparagraph (B).
(m) Agency Termination.--Section 428(c)(9) is amended--
(1) in subparagraph (E)--
(A) by inserting ``or'' at the end of clause (iv);
(B) by striking ``; or'' at the end of clause (v) and
inserting a period; and
(C) by striking clause (vi);
(2) in subparagraph (F)(vii), by striking ``to avoid
disruption'' and everything that follows and inserting ``and
to avoid disruption of the student loan program.'';
(3) in subparagraph (I), by inserting ``on the record''
after ``for a hearing''; and
(4) in subparagraph (K)--
(A) by striking ``and Labor'' and inserting ``and the
Workforce''; and
(B) by striking everything after ``guaranty agency system''
and inserting a period.
(n) Lender Referral.--Section 428(e) is amended--
(1) in paragraph (1)(B)(ii), by striking ``during the
transition'' and everything that follows through ``part D of
this title''; and
(2) in paragraph (3), by striking ``for costs of
transition''.
(o) Action on Agreements.--Section 428(g) is amended by
striking ``and Labor'' and inserting ``and the Workforce''.
(p) Lenders-of-Last Resort.--Section 428(j) is amended by
striking paragraph (3).
(q) Income Contingent Repayment.--Section 428(m) is amended
by striking ``shall require at least 10 percent of the
borrowers'' and inserting ``may require borrowers''.
(r) State Share of Default Costs.--Subsection (n) of
section 428 is repealed.
(s) Blanket Certificate of Guaranty.--Section 428 of the
Act is amended by adding at the end the following new
subsection:
``(n) Blanket Certificate of Loan Guaranty.--
``(1) In general.--Any guaranty agency that has or enters
into any insurance program agreement with the Secretary under
this part may--
[[Page H2558]]
``(A) offer eligible lenders participating in the agency's
guaranty program blanket certificates of loan guaranty that
permit the lender to make loans without receiving prior
approval from the guaranty agency of individual loans for
eligible borrowers enrolled in eligible programs at eligible
institutions; and
``(B) provide eligible lenders with the ability to transmit
electronically data to the agency concerning loans the lender
has elected to make under the agency's insurance program via
standard reporting formats, such reporting to occur at
reasonable, mutually acceptable intervals.
``(2) Limitations on Blanket certificate of guaranty.--A
guaranty agency and eligible lender may establish by mutual
agreement limitations or restrictions on the number or volume
of loans issued by a lender under the blanket certificate of
guaranty.''.
SEC. 418. VOLUNTARY AGREEMENTS WITH GUARANTY AGENCIES.
Part B of title IV is amended by inserting after section
428 (20 U.S.C. 1078) the following new section:
``SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY
AGENCIES.
``(a) Voluntary Agreements.--
``(1) Authority.--Notwithstanding any other provision of
law, the Secretary may enter into a voluntary, flexible
agreement with not more than 6 guaranty agencies under this
section, in lieu of agreements with a guaranty agency under
subsections (b) and (c) of section 428, under which the
Secretary may waive or modify any requirement under this
title applicable to the responsibilities of the Secretary and
a guaranty agency.
``(2) Eligibility.--Any guaranty agency that had one or
more agreements with the Secretary under subsections (b) and
(c) of section 428 as of the day before the date of enactment
of this section may enter into an agreement with the
Secretary under this subsection.
``(b) Terms of Agreement.--An agreement between the
Secretary and a guaranty agency under this section--
``(1) shall be developed by the Secretary, in consultation
with the guaranty agency;
``(2) shall be for a period not to exceed five years, and
may be renewed upon the agreement of the parties;
``(3) may include provisions--
``(A) specifying the responsibilities of the guaranty
agency under the agreement, such as--
``(i) administering the issuance of insurance on loans made
under this part on behalf of the Secretary;
``(ii) monitoring insurance commitments made under this
part;
``(iii) default prevention activities;
``(iv) review of default claims made by lenders;
``(v) payment of default claims;
``(vi) collection of defaulted loans;
``(vii) adoption of internal systems of accounting and
auditing that are acceptable to the Secretary, and reporting
the result thereof to the Secretary on a timely, accurate,
and auditable basis;
``(viii) timely and accurate collection and reporting of
such other data as the Secretary may require to carry out the
purposes of the programs under this title;
``(ix) monitoring of institutions and lenders participating
in the program under this part; and
``(x) the performance of other program functions by the
guaranty agency.
``(B) regarding the fees the Secretary shall pay, in lieu
of revenues that the guaranty agency may otherwise receive
under this part, to the guaranty agency under the agreement,
and other funds that the guaranty agency may receive or
retain under the agreement, except that in no case may the
cost to the Secretary of the agreement, as reasonably
projected by the Secretary, exceed the cost to the Secretary,
as similarly projected, in the absence of the agreement;
``(C) regarding the use of net revenues, as described in
the agreement under this section, for such other activities
in support of postsecondary education as may be agreed to by
the Secretary and the guaranty agency;
``(D) regarding the standards by which the guaranty
agency's performance of its responsibilities under the
agreement will be assessed, and the consequences for a
guaranty agency's failure to achieve a specified level of
performance on 1 or more performance standards;
``(E) regarding the circumstances in which a guaranty
agency's agreement under this section may be ended in advance
of its expiration date;
``(F) regarding such other businesses, previously purchased
or developed with reserve funds, that relate to the program
under this part and in which the Secretary permits the
guaranty agency to engage; and
``(G) such other provisions as the Secretary may determine
to be necessary to protect the United States from the risk of
unreasonable loss and to promote the purposes of this part;
and
``(4) shall provide for uniform lender participation with
the guaranty agency under the terms of the agreement.
``(c) Termination.--At the expiration or early termination
of an agreement under this section, the Secretary shall
reinstate the guaranty agency's prior agreements under
subsections (b) and (c) of section 428, subject only to such
additional requirements as the Secretary determines to be
necessary in order to ensure the efficient transfer of
responsibilities between the agreement under this section and
the agreements under subsections (b) and (c) of section 428,
including the guaranty agency's compliance with reserve
requirements under sections 422 and 428.''.
SEC. 419. FEDERAL CONSOLIDATION LOANS.
(a) Agreements With Lenders.--Section 428C(a) (20 U.S.C.
1078-3(a)) is amended--
(1) by striking subclause (II) of paragraph (3)(B)(i) and
inserting the following:
``(II) that loans received during the 180-day period
following the making of the consolidation loan may be added
to the consolidation loan.''; and
(2) by striking subparagraph (C) of paragraph (4) and
inserting the following:
``(C) made under part D of this title;''.
(b) Contents of Agreements.--Section 428C(b) is amended--
(1) in paragraph (1)(A), by striking ``under this section
and (i)'' and everything that follows and inserting ``under
this section;'';
(2) in paragraph (4)(C)(ii)--
(A) by redesignating subclause (III) as subclause (IV);
(B) by inserting after subclause (II) the following new
clause:
``(III) by the Secretary, in the case of a consolidation
loan for which the application is received by an eligible
lender on or after October 1, 1998, except that the Secretary
shall pay such interest only on that portion of the loan that
repays Federal Stafford Loans for which the student borrower
received an interest subsidy under section 428 or Federal
Direct Stafford Loans for which the borrower received an
interest subsidy under section 455; or''; and
(C) in subclause (IV) (as redesignated), by striking
``subclause (I) or (II)'' and inserting ``subclause (I),
(II), or (III)''; and
(3) in paragraph (6)(A), by inserting before the semicolon
at the end the following: ``except that (i) a lender is not
required to consolidate loans described in subparagraph (D)
or (E) of subsection (a)(4); and (ii) a lender is not
prohibited from establishing a minimum loan balance for which
it will process a consolidation loan application''.
(c) Extension of Authority.--Section 428C(e) is amended by
striking ``September 30, 2002'' and inserting ``September 30,
2004''.
SEC. 420. DISBURSEMENT.
(a) Requirements.--Section 428G(a)(1) (20 U.S.C. 1078-
7(a)(1)) is amended by inserting ``greater than one semester,
one trimester, one quarter, or four months'' after ``period
of enrollment''.
(b) Disbursement.--Section 428G(b)(1) is amended by adding
at the end the following new sentence: ``An institution whose
cohort default rate (as determined under section 435(a)) for
each of the three most recent fiscal years for which data are
available is less than 10 percent shall be exempt from the
requirements of this paragraph.''.
(c) Withholding of Second Disbursement.--Section 428G(d)(2)
is amended by inserting ``by more than $300'' after ``under
this title''.
SEC. 421. UNSUBSIDIZED STAFFORD LOANS.
(a) Eligible Borrowers.--Section 428H(b) (20 U.S.C. 1078-
8(b)) is amended by striking ``which--'' and everything that
follows and inserting the following:
``which certifies the eligibility of the student to receive a
loan under this part and the amount of the loan for which
such student is eligible. A student shall qualify for a loan
if the eligible institution has provided the lender with a
statement that--
``(1) at the lender's request, sets forth such student's
estimated cost of attendance (as determined under section
472);
``(2) sets forth such student's estimated financial
assistance, including a loan which qualifies for subsidy
payments under section 428; and
``(3) sets forth a schedule for disbursement of the
proceeds of the loan in installments, consistent with the
requirements of section 428G.''.
(b) Loan Limits.--Section 428H(d)(2)(A) is amended--
(1) by inserting ``and'' after the semicolon at the end of
clause (i); and
(2) by striking clauses (ii) and (iii) and inserting the
following:
``(ii) if such student is enrolled in a program of
undergraduate education which is less than one academic year,
the maximum annual loan amount that such student may receive
may not exceed the amount that bears the same ratio to the
amount specified in clause (i) as the length of such program
measured in semester, trimester, quarter, or clock hours
bears to one academic year;''.
(c) Qualification.--Section 428H(e) is amended by adding at
the end the following new paragraph:
``(7) Qualification for forbearance, deferment, and income-
sensitive repayment.--A borrower of a loan made under this
section may qualify for a forbearance or deferment, or an
income-sensitive repayment plan for which the borrower is
eligible, immediately upon receipt by the lender or holder of
a request from the borrower. Any necessary supporting
documentation shall be secured by the lender or holder within
30 days of the request in order to continue the forbearance,
deferment, or income-sensitive repayment plan.''.
(d) Repeal.--Section 428H(f) is repealed.
SEC. 422. REPEAL OF LOAN FORGIVENESS.
Section 428J (20 U.S.C. 1078-10) is repealed.
SEC. 423. LEGAL POWERS AND RESPONSIBILITIES.
(a) General Powers.--Section 432(a)(2) (20 U.S.C.
1082(a)(2)) is amended by inserting ``except that this
section shall not be deemed to limit court review under
chapter 7 of title 5, United States Code'' after
``Secretary's control''.
(b) Audit of Financial Transactions.--Section 432(f)(1) is
amended--
(1) in subparagraph (B), by striking ``section 435(d)(1)
(D), (F), or (H);'' and inserting ``section 435(d)(1); and'';
(2) in subparagraph (C)--
(A) by striking ``and Labor'' and inserting ``and the
Workforce''; and
(B) by striking ``; and'' and inserting a period; and
[[Page H2559]]
(3) by striking subparagraph (D).
(c) Program of Assistance.--Section 432(k)(3) is amended by
striking ``Within 1 year'' and everything that follows
through ``1992, the'' and inserting ``The''.
(d) Common Forms and Formats.--Section 432(m) is amended--
(1) in paragraph (1)(A), by striking ``The Secretary'' and
inserting ``Subject to paragraph (2), the Secretary'';
(2) by striking subparagraph (C) of paragraph (1);
(3) in subparagraph (D), by striking ``Nothing'' and
inserting ``Subject to paragraph (2), nothing'';
(4) by redesignating subparagraph (D) of such paragraph as
subparagraph (C);
(5) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(6) by inserting after paragraph (1) the following new
paragraph:
``(2) Free application for federal student aid.--For
academic year 1999-2000 and thereafter, the Secretary shall
prescribe the Free Application for Federal Student Aid as
the application form under this part (other than sections
428B and 428C).''; and
(7) by adding at the end the following new paragraph:
``(5) Master promissory note.--
``(A) Development and approval.--Within 180 days of
enactment of this Act, the Secretary, in cooperation with
representatives of guaranty agencies, eligible lenders,
institutions, students, and organizations involved in student
financial assistance, shall develop and approve a master
promissory note that will allow for a multiyear line of
credit. Such note shall address the needs of participants in
the programs under this part. The Secretary shall also
develop and approve a corresponding master promissory note
for use under part D of this title that addresses the needs
of participants in the programs under such part.
``(B) Sale and assignment; enforcement.--Notwithstanding
the preceding provisions of this section, each loan made
under a master promissory note providing for a line of credit
may be sold and assigned independently of any other loan made
under the same promissory note, and each such loan shall be
separately enforceable in all State and Federal courts on the
basis of an original or copy of the master promissory note
with its terms.''.
(e) Default Reduction Management.--Section 432(n) is
amended--
(1) in paragraph (1), by striking ``1993'' and inserting
``1999''; and
(2) in paragraph (3), by striking ``and Labor'' and
inserting ``and the Workforce''.
(f) Reporting Requirement.--Section 432(p) is amended by
striking ``State postsecondary reviewing entities designated
under subpart 1 of part H,''.
SEC. 424. STUDENT LOAN INFORMATION.
Section 433 (20 U.S.C. 1083) is amended--
(1) in the first sentence of subsection (a), by inserting
``in simple and understandable terms'' after ``to the
borrower''; and
(2) in the first sentence of subsection (b), by inserting
``in simple and understandable terms'' after ``under this
subsection''.
SEC. 425. DEFINITIONS.
(a) Cohort Default Rate.--Section 435(a) (20 U.S.C.
1085(a)) is amended--
(1) in subparagraph (A) of paragraph (2)--
(A) by striking ``or'' at the end of clause (i); and
(B) by striking clause (ii) and inserting the following:
``(ii) there are exceptional mitigating circumstances
within the meaning of paragraph (4); or
``(iii) there are, in the judgment of the Secretary, other
exceptional mitigating circumstances that would make the
application of this paragraph inequitable.'';
(2) in subparagraph (C) of paragraph (2), by striking
``July 1, 1998,'' and inserting ``July 1, 1999,'';
(3) in paragraph (3), by inserting ``or, at the request of
the institution, a complete copy of the records for loans
made under this part or of the direct loan servicer for loans
made under part D'' after ``and loan servicers''; and
(4) by adding at the end the following new paragraphs:
``(4) Definition of mitigating circumstances.--For purposes
of paragraph (2), an institution shall be treated as having
exceptional mitigating circumstances that make application of
that paragraph inequitable if such institution is certified
by a certified public accountant to meet each of the
following criteria:
``(A) at least two-thirds of the students enrolled on at
least a half-time basis at the institution--
``(i) are eligible to receive a Federal Pell Grant award
that is at least equal to one-half the maximum Federal Pell
Grant award for which the student would be eligible based on
his or her enrollment status; or
``(ii) have an adjusted gross income of the student, and
his or her parents (unless the student is an independent
student), of less than the poverty level, as determined under
criteria established by the Department of Health and Human
Services;
``(B) at least two-thirds of the students enrolled on a
full-time basis at the institution in any 12-month period
ending not more than six months prior to the date the
institution submits its appeal, and who remain enrolled
beyond the point at which the student would be entitled to a
tuition refund of 100 percent--
``(i) complete the educational program in which they are
enrolled within the time normally required to complete that
program, as specified in the institution's enrollment
contract, catalog, or other materials; or
``(ii) continue to be enrolled and are making satisfactory
academic progress toward completion of their program; or
``(iii) have entered active duty in the armed forces of the
United States; and
``(C) at least two-thirds of the students enrolled on a
full-time basis at the institution who complete the
educational program in which they are enrolled within any 12-
month period ending not more than six months prior to the
date the institution submits its appeal are placed for at
least 13 weeks in an employment position for which they have
been trained, or are enrolled for at least 13 weeks in higher
level education program for which the educational program of
the institution provided substantial preparation, or have
entered active duty in the armed forces of the United States.
``(5) Reduction of default rates at certain minority
institutions.--
``(A) Beneficiaries of exception required to establish
management plan.--After July 1, 1998, any institution that
has a cohort default rate that equals or exceeds 25 percent
for each of the three most recent fiscal years for which data
are available and that relies on the exception in paragraph
(2)(C) of this subsection to continue to be an eligible
institution shall--
``(i) submit to the Secretary a default management plan
which the Secretary, in his discretion, after consideration
of the institution's history, resources, dollars in default,
and targets for default reduction, determines is acceptable
and provides reasonable assurance that the institution will,
by July 1, 2001, have a cohort default rate that is less than
25 percent;
``(ii) engage an independent third party (which may be paid
with funds received under part B of title III) to provide
technical assistance in implementing such default management
plan; and
``(iii) provide to the Secretary, on an annual basis or at
such other intervals as the Secretary may require, evidence
of cohort default rate improvement and successful
implementation of such default management plan.
``(B) Discretionary eligibility conditioned on
improvement.--Notwithstanding the expiration of the exception
in paragraph (2)(C), the Secretary may, in his discretion,
continue to treat an institution described in subparagraph
(A) of this paragraph as an eligible institution for each of
the one-year periods beginning on July 1, 1999, and July 1,
2000, only if the institution submits by the beginning of
such period evidence satisfactory to the Secretary that--
``(i) such institution has complied and is continuing to
comply with the requirements of subparagraph (A); and
``(ii) such institution has made substantial improvement,
during each of the preceding one-year periods, in its cohort
default rate.
``(6) Special rule based on participation rate indices.--
(A) An institution that demonstrates to the Secretary that
its participation rate index (as defined in regulations in
effect on July 1, 1996) is equal to or less than .0375 for
any of the three most recent fiscal years for which data are
available shall not be subject to paragraph (2).
``(B) An institution shall provide the Secretary with
sufficient data to determine its participation rate index
within 30 days after receiving an initial notification of its
draft cohort default rate.
``(C) Prior to publication of a final cohort default rate
for an institution that provides the data under subparagraph
(B), the Secretary shall notify the institution of its
compliance or noncompliance with subparagraph (A).''.
(b) Eligible Lender.--Section 435(d) is amended--
(1) in paragraph (1)(A)(ii)--
(A) by striking ``or'' at the end of subclause (I); and
(B) by inserting before the semicolon at the end of
subclause (II) the following: ``, or (III) it is a bank that
is a wholly owned subsidiary of a nonprofit foundation, the
foundation is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code and has been participating in the program
authorized by this part for three years as of the date of
enactment of the Higher Education Amendments of 1998 and
only makes loans to undergraduate students who are 22
years of age or younger and has a portfolio of not more
than $10,000,000; and in determining whether the making or
holding of loans to students and parents under this part
is the primary consumer credit function of the eligible
lender, all loans (including student loans and other
consumer loans) made or held as trustee or in a trust
capacity for the benefit of a third party shall be
considered'';
(2) in paragraph (1)--
(A) by striking ``and'' at the end of subparagraph (I);
(B) by striking the period at the end of subparagraph (J)
and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(K) a wholly owned subsidiary of a publicly held holding
company which, for the three years preceding the date of
enactment of this subparagraph, through one or more
subsidiaries (i) acts as a finance company, and (ii)
participates in the program authorized by this part pursuant
to subparagraph (C).''; and
(3) in paragraph (5), by adding at the end the following
new sentence:
``It shall not be a violation of this paragraph for a lender
to provide assistance to institutions of higher education
comparable to the kinds of assistance provided to
institutions of higher education by the Department of
Education.''.
(c) Line of Credit.--Section 435(e) is amended to read as
follows:
``(e) Line of Credit.--The term `line of credit' means an
agreement between the lender and the borrower pursuant to a
master promissory note under which the lender may make and
disburse, in addition to the initial loan, additional loans
in subsequent years.''.
[[Page H2560]]
SEC. 426. DISCHARGE.
(a) Documentation.--Section 437(a) (20 U.S.C. 1087(a)) is
amended by adding at the end the following: ``A certification
of permanent and total disability from a Veteran's Hospital
shall be acceptable documentation for discharge under this
subsection.''.
(b) Discharge.--Section 437(c)(1) is amended--
(1) by inserting after ``falsely certified by the eligible
institution,'' the following: ``or if the institution failed
to make a refund of loan proceeds which it owed to such
student's lender,''; and
(2) by adding at the end the following new sentences: ``In
the case of a discharge based upon a failure to refund, the
amount of the discharge shall not exceed that portion of the
loan which should have been refunded. The Secretary shall
report to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate annually as to the dollar amount of
loan discharges attributable to failures to make refunds.''.
SEC. 427. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.
Section 437 is further amended--
(1) in the section heading, by striking out the period at
the end thereof and inserting in lieu thereof a semicolon and
``loan forgiveness for teaching.'';
(2) by amending the heading for subsection (c) to read as
follows: ``Discharge Related to School Closure or False
Certification.--''; and
(3) by adding at the end thereof the following new
subsection:
``(e) Cancellation of Loans for Teaching.--
``(1) Functions of secretary.--The Secretary shall
discharge the liability of a borrower of a qualifying loan by
repaying the amount owed on the loan, to the extent specified
in paragraph (4), for service described in paragraph (3).
``(2) Qualifying loans.--
``(A) In general.--For purposes of this subsection, a loan
is a qualifying loan if--
``(i) the loan was made under section 428 on or after the
date of enactment of the Higher Education Amendments of 1998
to a borrower who, on the date of entering into the note or
other written evidence of the loan, had no outstanding
balance of principal or interest on any loan made before such
date; and
``(ii) the loan was obtained to cover the cost of
instruction for an academic year after the first and second
year of undergraduate education.
``(B) Limitation.--The Secretary may not repay loans
described in subparagraph (A) to cover the costs of
instruction for more than two academic years, or three
academic years in the case of a program of instruction
normally requiring five years.
``(C) Treatment of consolidation loans.--A loan made under
section 428C may be a qualifying loan for the purposes of
this subsection only to the extent that such loan was used to
repay a loan or loans that meet the requirements of
subparagraphs (A) and (B), as determined in accordance with
regulations prescribed by the Secretary.
``(3) Qualifying service.--A loan shall be discharged under
paragraph (1) for service by the borrower as a full-time
teacher for each complete academic year of service, after
completion of the second academic year of service, in a
public or other nonprofit private elementary or secondary
school--
``(A) which is in the school district of a local
educational agency which is eligible in such year for
assistance pursuant to title I of the Elementary and
Secondary Education Act of 1965; and
``(B) which for the purpose of this paragraph and for that
year has been determined by the State educational agency of
the State in which the school is located to be a school in
which the enrollment of children counted under section
1124(c) of the Elementary and Secondary Education Act of 1965
exceeds 30 percent of the total enrollment of that school.
``(4) Rate of discharge.--(A) Loans shall be discharged
under this subsection at the rate of--
``(i) 30 percent for the first or second complete academic
year of qualifying service as described in paragraph (3)
(after completion of two years of service); and
``(ii) 40 percent for the third complete year of such
qualifying service.
``(B) The total amount that may be discharged under this
subsection for any borrower shall not exceed $17,750.
``(C) If a portion of a loan is discharged under
subparagraph (A) for any year, the entire amount of interest
on that loan that accrues for that year shall also be
discharged by the Secretary.
``(D) Nothing in this section shall be construed to
authorize refunding of any repayment of a loan.
``(5) Limitation on teacher eligibility.--
``(A) Secondary school teachers.--A borrower may not
receive assistance under this subsection by virtue of
teaching in a secondary school unless such borrower majored
in the subject area in which they are teaching.
``(B) Elementary school teachers.--A borrower may not
receive assistance under this subsection by virtue of
teaching in a elementary school unless such borrower
demonstrates, in accordance with State teacher certification
or licensing requirements, subject matter knowledge and
teaching skills in reading, writing, mathematics, and other
subjects taught in elementary schools.
``(6) Prevention of double benefits.--No borrower may, for
the same service, receive a benefit under both this
subsection and subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12571 et seq.).
``(7) Method of payment.--The Secretary shall specify in
regulations the manner in which lenders shall be reimbursed
for loans made under this part, or portions thereof, that are
discharged under this subsection.
``(8) List.--If the list of schools in which a teacher may
perform service pursuant to paragraph (3) is not available
before May 1 of any year, the Secretary may use the list for
the year preceding the year for which the determination is
made to make such service determination.
``(9) Continuing eligibility.--Any teacher who performs
service in a school which--
``(A) meets the requirements of paragraph (3) in any year
during such service; and
``(B) in a subsequent year fails to meet the requirements
of such subsection,
may continue to teach in such school and shall be eligible
for loan cancellation pursuant to this subsection with
respect to such subsequent years.''.
SEC. 428. DEBT MANAGEMENT OPTIONS.
Section 437A (20 U.S.C. 1087-O) is repealed.
SEC. 429. SPECIAL ALLOWANCES.
(a) Computation.--Section 438(b)(2) (20 U.S.C. 1087-
1(b)(2)) is amended--
(1) in subparagraph (A), by striking ``(E), and (F)'' and
inserting ``and (E)''; and
(2) in subparagraph (B)(iv), by striking ``, (E), or (F)''
and inserting ``or (E)''.
(b) Origination Fees.--Section 438(c) is amended--
(1) in paragraph (2)--
(A) by striking ``(other than'' and inserting ``(including
loans made under section 428H, but excluding''; and
(B) by adding at the end the following new sentence:
``Except as provided in paragraph (8), a lender is not
authorized to assess an origination fee under this paragraph
unless the lender assesses the same fee to all student
borrowers.''; and
(2) by adding at the end the following new paragraph:
``(8) Exception.--Notwithstanding paragraph (2), a lender
may assess a lesser origination fee for a borrower
demonstrating greater financial need as determined by such
borrower's adjusted gross family income.''.
(c) Lending From Proceeds of Tax Exempt Obligations.--
Section 438 is amended--
(1) by striking subsection (e); and
(2) by redesignating subsection (f) as subsection (e).
(d) Study.--Section 438 is amended by adding at the end the
following new subsection:
``(f) Study.--The Comptroller General shall conduct a
statistical analysis of the subsidized and unsubsidized
student loan programs under part B to gather data on lenders'
policies on charging origination fees and to determine if
there are any anomalies that would indicate any
institutional, programmatic, or socioeconomic discrimination
in the assessing or waiving of such fees. The Comptroller
General shall report to the appropriate committees of
Congress within two years after the date of enactment of the
Higher Education Amendments of 1998.''.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 435. AMENDMENTS TO PART C.
(a) Extension of Authority; Definition.--
(1) Eligible students.--Section 441(a) (20 U.S.C. 2751(a))
is amended by inserting after ``professional students'' the
following: ``, including students participating in an
internship or practicum, or as a research assistant, as
determined by the Secretary,''.
(2) Extension of authority.--Section 441(b) is amended by
striking ``$800,000,000 for fiscal year 1993'' and inserting
``$1,000,000,000 for fiscal year 1999''.
(3) Definition of community service.--Section 441(c) is
amended by striking ``which are'' and inserting ``that are
performed off-campus or on-campus and that are''.
(b) Allocation of Funds.--Section 442 (42 U.S.C. 2752) is
amended--
(1) by striking subsection (b);
(2) in subsection (c)(1), by striking ``three-quarters of
the remainder'' and inserting ``the remainder'';
(3) in subsection (c)(2)(A)(i), by striking ``subsection
(d)'' and inserting ``subsection (c)'';
(4) in subsection (e)(1), by striking ``subsection (c)''
and inserting ``subsection (b)''; and
(5) by redesignating subsections (c), (d), (e), and (f) as
subsections (b), (c), (d), and (e), respectively.
(c) Tutoring and Literacy Activities.--
Section 443 of the Higher Education Act of 1965 (42 U.S.C.
2753) is amended--
(1) in subsection (b)(2)--
(A) by striking ``and'' at the end of subparagraph (A);
(B) by redesignating subparagraph (B) as subparagraph (C);
and
(C) by inserting after subparagraph (A) the following new
subparagraph:
``(B) in academic year 1999 and succeeding academic years,
an institution shall use at least 2 percent of the total
amount of funds granted to such institution under this
section for such academic year in accordance with subsection
(d); and''; and
(2) by adding at the end the following new subsection:
``(d) Tutoring and Literacy Activities.--
``(1) Use of funds.--In any academic year to which
subsection (b)(2)(B) applies, an institution shall use the
amount required to be used in accordance with this subsection
to compensate (including compensation for time spent in
directly related training and travel) students--
``(A) employed as a reading tutor for children who are in
preschool through elementary school; or
``(B) employed in family literacy projects.
``(2) Priority for schools.--An institution shall--
[[Page H2561]]
``(A) give priority, in using such funds, to the employment
of students in the provision of tutoring services in schools
that--
``(i) are identified for school improvement under section
1116(c) of the Elementary and Secondary Education Act of
1965; or
``(ii) are selected by a local educational agency under
section 15104(a)(2) of such Act; and
``(B) ensure that any student compensated with such funds
who is employed in a school selected under section
15104(a)(2) of the Elementary and Secondary Education Act of
1965 is trained in the instructional practices based on
reliable, replicable research on reading used by the school
pursuant to such section 15104.
``(3) Federal share.--The Federal share of the compensation
of work study students compensated under this subsection may
exceed 75 percent.
``(4) Waiver.--The Secretary may waive the requirements of
this subsection if the Secretary determines that enforcing
such requirements would cause a hardship for students at the
institution.
``(5) Return of funds.--Any institution that does not use
the amount required under this subsection, and that does not
request and receive a waiver from the Secretary under
paragraph (4), shall return to the Secretary, at such time as
the Secretary may require for reallocation under paragraph
(6), any balance of such amount that is not used as so
required.
``(6) Reallocation.--The Secretary shall reallot any
amounts returned pursuant to paragraph (5) among institutions
that used at least 4 percent of the total amount of funds
granted to such institution under this section to compensate
students employed in tutoring and literacy activities in the
preceding academic year. Such funds shall be reallotted among
such institutions on the same basis as excess eligible
amounts are allocated to institutions pursuant to section
442(c). Funds received by institutions pursuant to this
paragraph shall be used in the same manner as amounts
required to be used in accordance with this subsection.''.
(d) Grant Requirements.--
(1) Community service.--Section 443(b)(2)(A) (42 U.S.C.
2753(b)(2)(A)) is amended--
(A) by striking ``in fiscal year 1994 and succeeding fiscal
years,''; and
(B) by inserting ``(including time spent in travel or
training, or both, directly related to such community
service)'' after ``community service''.
(2) Use of funds for independent and less-than-full-time
students.--Section 443(b)(3) (42 U.S.C. 2753(b)(3)) is
amended to read as follows:
``(3) provide that in the selection of students for
employment under such work-study program, only students, who
demonstrate financial need in accordance with part F of this
title, and who meet the requirements of section 484 will be
assisted, except that if the institution's grant under this
part is directly or indirectly based in part on the financial
need demonstrated by students who are (A) attending the
institution less than full time, or (B) independent students,
then grant funds shall be made available to such less than
full-time and independent students;''.
(3) Availability of employment.--Section 443(b)(6) is
amended by striking everything after ``in need thereof'' and
inserting a semicolon.
(4) Academic relevance.--Section 443(c)(4) is amended by
inserting before the semicolon at the end the following: ``,
to the maximum extent practicable''.
(e) Flexible Use of Funds.--Section 445(b) (42 U.S.C.
2755(b)) is amended by adding at the end the following new
paragraph:
``(3) An eligible institution may, with the permission of a
student, make payments to the student under this part by
crediting the student's account at the institution or by
making a direct deposit to the student's account at a
depository institution. An eligible institution may only
credit the student's account at the institution for (A)
tuition and fees, (B) in the case of institutionally owned
housing, room and board, and (C) other institutionally
provided goods and services.''.
(f) Job Location and Development Programs.--Section 446 (42
U.S.C. 2756) is amended--
(1) in subsection (a)(1)--
(A) by striking ``$50,000'' and inserting ``$60,000''; and
(B) by striking ``community service jobs, for currently
enrolled students'' and inserting ``community service jobs
and cooperative education jobs, for currently enrolled
students, including students participating in work-study
programs under this part''; and
(2) in subsection (b)--
(A) by redesignating paragraphs (4) through (6) as
paragraphs (5) through (7); and
(B) by inserting after paragraph (3) the following new
paragraph:
``(4) provide that the institution will notify the
Secretary if the institution will use funds under this
section to develop cooperative education jobs and will
provide assurances that--
``(A) the funds provided under this paragraph will
supplement and not supplant any cooperative education funds
available to the institution;
``(B) in the case of 2-year programs, funds will be used to
develop and expand cooperative education, jobs for associate
degree or certificate students only;
``(C) the work portion of a cooperative education job
developed or expanded under this paragraph will be related to
a student's academic program; and
``(D) the institution will furnish the Secretary a report
on cooperative education jobs expanded and developed under
this paragraph, including--
``(i) how the funds were used;
``(ii) a list of employers and whether the employer is a
for-profit or not-for-profit entity; and
``(iii) the employers' role in the cooperative education
job.''.
(g) Work Colleges Extension of Authority.--Section 448(f)
(42 U.S.C. 2756b(f)) is amended by striking ``1993'' and
inserting ``1999''.
PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
SEC. 436. SELECTION OF INSTITUTIONS.
(a) General Authority.--Section 453(a) (20 U.S.C. 1087c(a))
is amended--
(1) by striking ``Phase-In'' and everything that follows
through ``General authority.--'' and inserting ``General
Authority.--''; and
(2) by striking paragraphs (2), (3), and (4).
(b) Selection Criteria.--Section 453(b)(2) is amended by
striking ``prescribe,'' and everything that follows through
the end of subparagraph (B) and inserting ``prescribe.''.
(c) Origination.--Section 453(c) is amended--
(1) in paragraph (2)--
(A) in the heading, by striking ``Transition selection
criteria'' and inserting ``Selection criteria'';
(B) by striking ``For academic year 1994-1995, the
Secretary'' and inserting ``The Secretary'';
(C) by striking subparagraph (A); and
(D) in subparagraph (E), by striking everything after
``deficiencies'' and inserting a semicolon; and
(E) by redesignating subparagraphs (B) through (H) as
subparagraphs (A) through (G); and
(2) in paragraph (3)--
(A) in the heading, by striking ``after transition''; and
(B) by striking ``For academic year 1995-1996 and
subsequent academic years, the Secretary'' and inserting
``The Secretary''.
SEC. 437. TERMS AND CONDITIONS.
(a) Interest Rates.--
(1) Amendment.--Section 455(b) (20 U.S.C. 1087e(b)) is
amended to read as follows:
``(b) Interest Rate.--
``(1) Rates for fdsl and fdusl.--For Federal Direct
Stafford Loans and Federal Direct Unsubsidized Stafford Loans
for which the first disbursement is made on or after July 1,
1998, the applicable rate of interest shall, during any 12-
month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--
``(A) the bond equivalent rate of 91-day Treasury bills
auctioned at the final auction held prior to such June 1;
plus
``(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
``(2) In school and grace period rules.--With respect to
any Federal Direct Stafford Loan or Federal Direct
Unsubsidized Stafford Loan for which the first disbursement
is made on or after July 1, 1995, the applicable rate of
interest for interest which accrues--
``(A) prior to the beginning of the repayment period of the
loan; or
``(B) during the period in which principal need not be paid
(whether or not such principal is in fact paid) by reason of
a provision described in section 428(b)(1)(M) or
427(a)(2)(C),
shall be determined under paragraph (1) by substituting `1.7
percent' for `2.3 percent'.
``(3) PLUS loans.--With respect to Federal Direct PLUS Loan
for which the first disbursement is made on or after July 1,
1998, the applicable rate of interest shall be determined
under paragraph (1)--
``(A) by substituting `3.1 percent' for `2.3 percent'; and
``(B) by substituting `9.0 percent' for `8.25 percent'.
``(4) Repayment incentives.--Notwithstanding any other
provision of this part, the Secretary is authorized to
prescribe in regulation such reductions in the interest rate
paid by a borrower of a loan made under this part as the
Secretary determines appropriate to encourage on-time
repayment. Such reductions may be offered only if the
Secretary determines they are both cost neutral and in the
best financial interest of the Federal Government. Any
increase in subsidy costs resulting from such reductions must
be completely offset by corresponding savings in funds
available for the Direct Loan Program in that fiscal year
from section 458 and other administrative accounts.
``(5) Publication.--The Secretary shall determine the
applicable rates of interest under this subsection after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as
practicable after the date of determination.''.
(2) Effective date.--The amendments made by this section
shall apply with respect to any loan made under part D of
title IV of the Higher Education Act of 1965 for which the
first disbursement is made on or after July 1, 1998.
(b) Consolidation Loans.--The first sentence of section
455(g) is amended by striking everything after ``section
428C(a)(4)'' and inserting a period.
SEC. 438. CONTRACTS.
Section 456(b) (20 U.S.C. 1087f(b)) is amended--
(1) by inserting ``and'' after the semicolon at the end of
paragraph (3);
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).
SEC. 439. FUNDS FOR ADMINISTRATIVE EXPENSES.
Section 458 (20 U.S.C. 1087h) is amended--
(1) in subsection (a)(1), by striking subparagraph (B) and
everything that follows and inserting the following:
``(B) account maintenance fees payable to guaranty agencies
under part B and calculated in accordance with paragraph (2),
not to exceed (from such funds not otherwise appropriated)
$626,000,000 in fiscal year 1999,
[[Page H2562]]
$726,000,000 in fiscal year 2000, $770,000,000 in fiscal year
2001, $780,000,000 in fiscal year 2002, and $795,000,000 in
fiscal year 2003. Account maintenance fees under subparagraph
(B) of this paragraph shall be paid quarterly and deposited
in the Operating Fund established under 422B. The Secretary
may carry over funds available under this section to a
subsequent fiscal year.'';
(2) by striking paragraph (2) of subsection (a) and
inserting the following:
``(2) Calculation basis.--Account maintenance fees payable
to guaranty agencies under paragraph (1)(B) shall be
calculated for fiscal year 1999 and fiscal year 2000, on the
basis of 0.12 percent of the original principal amount of
outstanding loans on which insurance was issued under part B,
and for fiscal years 2001 and succeeding fiscal years, shall
be calculated on the basis of 0.10 percent of the original
principal amount of outstanding loans on which insurance was
issued under part B.''; and
(3) by striking subsection (d).
SEC. 440. AUTHORITY TO SELL LOANS.
Part D of title IV (20 U.S.C. 1087a et seq.) is amended by
adding at the end the following new section:
``SEC. 459. AUTHORITY TO SELL LOANS.
``The Secretary, in consultation with the Secretary of the
Treasury, is authorized to sell loans made under this part on
such terms as the Secretary determines are in the best
interest of the United States, except that any such sale
shall not result in any cost to the Federal Government.
Notwithstanding any other provision of law, the proceeds of
any such sale may be used by the Secretary to offer
reductions in the interest rate paid by a borrower of a loan
made under this part as the Secretary determines appropriate
to encourage on-time repayment. Such reductions may be
offered only if the Secretary determines they are in the best
financial interests of the Federal Government.''.
SEC. 441. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.
Part D of title IV is amended by inserting after section
459, as added by section 440, the following new section:
``SEC. 459A. CANCELLATION OF LOANS FOR CERTAIN PUBLIC
SERVICE.
``(a) Cancellation of Percentage of Debt Based on Years of
Qualifying Service.--
``(1) Functions of secretary.--The percent specified in
paragraph (4) of the total amount of any qualifying loan
shall be canceled for each complete year of service by the
borrower described in paragraph (3).
``(2) Qualifying loans.--
``(A) In general.--For purposes of this subsection, a loan
is a qualifying loan if--
``(i) the loan was a Federal Direct Stafford Loan made on
or after the date of enactment of the Higher Education
Amendments of 1998 to a borrower who, on the date of entering
into the note or other written evidence of the loan, had no
outstanding balance of principal or interest on any loan made
before such date; and
``(ii) the loan was obtained to cover the cost of
instruction for an academic year after the first and second
year of undergraduate education.
``(B) Limitation.--The Secretary may not repay loans
described in subparagraph (A) to cover the costs of
instruction for more than two academic years, or three
academic years in the case of a program of instruction
normally requiring five years.
``(C) Treatment of consolidation loans.--A Federal Direct
Consolidation Loan may be a qualifying loan for the purposes
of this subsection only to the extent that such loan was used
to repay a loan or loans that meet the requirements of
subparagraphs (A) and (B), as determined in accordance with
regulations prescribed by the Secretary.
``(3) Qualifying service.--A loan shall be cancelled under
paragraph (1) for service by the borrower as a full-time
teacher for each complete academic year of service, after
completion of the second academic year of service, in a
public or other nonprofit private elementary or secondary
school--
``(A) which is in the school district of a local
educational agency which is eligible in such year for
assistance pursuant to title I of the Elementary and
Secondary Education Act of 1965; and
``(B) which for the purpose of this paragraph and for that
year has been determined by the State educational agency of
the State in which the school is located to be a school in
which the enrollment of children counted under section
1124(c) of the Elementary and Secondary Education Act of 1965
exceeds 30 percent of the total enrollment of that school.
``(4) Percentage of cancellation.--(A) The percent of a
loan which shall be canceled under paragraph (1) of this
subsection is at the rate of--
``(i) 30 percent for the first or second complete academic
year of qualifying service as described in paragraph (3)
(after completion of two years of service); and
``(ii) 40 percent for the third complete year of such
qualifying service.
``(B) The total amount that may be canceled under this
subsection for any borrower shall not exceed $17,750.
``(C) If a portion of a loan is canceled under this
subsection for any year, the entire amount of interest on
such loan which accrues for such year shall be canceled.
``(D) Nothing in this section shall be construed to
authorize refunding of any repayment of a loan.
``(5) Limitation on teacher eligibility.--
``(A) Secondary school teachers.--A borrower may not
receive assistance under this subsection by virtue of
teaching in a secondary school unless such borrower majored
in the subject area in which they are teaching.
``(B) Elementary school teachers.--A borrower may not
receive assistance under this subsection by virtue of
teaching in a elementary school unless such borrower
demonstrates, in accordance with State teacher certification
or licensing requirements, subject matter knowledge and
teaching skills in reading, writing, mathematics, and other
subjects taught in elementary schools.
``(6) Definition.--For the purpose of this section, the
term `year' where applied to service as a teacher means an
academic year as defined by the Secretary.
``(7) Prevention of double benefits.--No borrower may, for
the same volunteer service, receive a benefit under both this
section and subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12571 et seq.).
``(b) Special Rules.--
``(1) List.--If the list of schools in which a teacher may
perform service pursuant to subsection (a)(3) is not
available before May 1 of any year, the Secretary may use the
list for the year preceding the year for which the
determination is made to make such service determination.
``(2) Continuing eligibility.--Any teacher who performs
service in a school which--
``(A) meets the requirements of subsection (a)(3) in any
year during such service; and
``(B) in a subsequent year fails to meet the requirements
of such subsection,
may continue to teach in such school and shall be eligible
for loan cancellation pursuant to subsection (a)(1) with
respect to such subsequent years.''.
PART E--FEDERAL PERKINS LOANS
SEC. 445. AMENDMENTS TO PART E.
(a) Extension of Authority.--Section 461(b) (20 U.S.C.
1087aa(b)) is amended--
(1) in paragraph (1), by striking ``1993'' and inserting
``1999''; and
(2) in paragraph (2), by striking ``1997'' each place it
appears and inserting ``2003''.
(b) Allocation of Funds.--Section 462 (20 U.S.C. 1087bb) is
amended--
(1) by striking subsection (b);
(2) in subsection (c)(1), by striking ``three-quarters of
the remainder'' and inserting ``the remainder'';
(3) in subsection (c)(2), by striking ``subsection (g)''
and inserting ``subsection (f)'';
(4) in subsection (c)(3)--
(A) by striking ``subsection (d)'' and inserting
``subsection (c)'';
(B) by striking ``subsection (f)'' and inserting
``subsection (e)''; and
(C) by striking ``subsection (g)'' and inserting
``subsection (f)'';
(5) in subsection (f)(1), by striking ``subsection (g)''
and inserting ``subsection (f)'';
(6) in subsection (j)(2)--
(A) by striking ``subsection (c)'' and inserting
``subsection (b)''; and
(B) by striking ``subsection (c) of section 462'' and
inserting ``subsection (b)''; and
(7) by redesignating subsections (c) through (j) as
subsections (b) through (i), respectively.
(c) Default Reduction Penalties.--Section 462(e)(2)(A) (as
redesignated by subsection (b)(7) of this section) is amended
by inserting before the semicolon at the end the following:
``, except that a plan shall not be required with respect to
any such institution that has a default rate of less than 20
percent and has less than 100 students who have loans under
this part in any academic year''.
(d) Definitions for Default Rate Calculations.--Section
462(g) (as redesignated by subsection (b)(7) of this section)
is amended by adding at the end the following new paragraph:
``(5) For the purpose of this subsection, the term
`satisfactory arrangements to resume payment' includes--
``(A) receipt of voluntary monthly payments for three
consecutive months after the time periods specified in
paragraph (4);
``(B) receipt of voluntary payments sufficient to bring the
loan current prior to the calculation being made for any
award year under paragraph (3);
``(C) obtaining any deferment, postponement,
rehabilitation, forbearance, or cancellation of the loan
after the time periods specified in paragraph (4), but prior
to the calculation being made for any award year under
paragraph (3);
``(D) receipt of the full amount due on the loan after the
time periods specified in paragraph (4), but prior to the
calculation being made for any award year under paragraph
(3); or
``(E) any other arrangements to resume payment which the
Secretary determines to be satisfactory.''.
(e) Reports to Credit Bureaus of Payment Resumptions.--
Section 463(c) (20 U.S.C. 1087cc(c)) is amended by adding at
the end the following new paragraph:
``(5) Each institution of higher education shall notify the
appropriate credit bureau organizations whenever a borrower
of a loan that is made and held by the institution and that
is in default makes 12 consecutive monthly payments on such
loan, for the purpose of encouraging such organizations to
update the status of information maintained with respect to
that borrower.''.
(f) Incentive Repayment Programs.--Section 463 is amended
by adding at the end the following new subsection:
``(f) Incentive Repayment Programs.--
``(1) Program authorized.--Any institution of higher
education participating in the program under this part may
establish, with the approval of the Secretary, an incentive
repayment program designed to reduce defaults on loans under
this part and to assist in replenishing the student loan fund
established under this part.
``(2) Contents of program.--An incentive repayment program
under this part may contain provisions that--
[[Page H2563]]
``(A) offer a reduction in the interest rate on a loan on
which the borrower has made 48 consecutive monthly payments,
but in no event may the interest rate be reduced by more than
one percent;
``(B) provide for a discount on the balance owed on a loan
on which the borrower pays the principal and interest in full
prior to the end of the applicable repayment period, but in
no event shall such discount exceed 5 percent of the unpaid
principal balance due on the loan at the time the early
repayment is made; and
``(C) include such other incentive repayment options as the
institution determines, with the approval of the Secretary,
will carry out the objectives of this subsection.
``(3) No net cost to the government.--No incentive option
contained in a program authorized by this subsection may be
charged to the Federal Government.''.
(g) Terms of Loans.--
(1) Aggregate amount.--Section 464(a)(2)(B) (20 U.S.C.
1087dd(a)(2)(B)) is amended by striking ``the aggregate of
the loans for all years'' and inserting ``the aggregate
unpaid principal amount for all loans''.
(2) Allocation to less-than-full-time students.--Section
464(b) is amended--
(A) by striking ``(1)''; and
(B) by striking paragraph (2).
(3) Qualification for deferments.--Section 464(c)(2) is
amended by adding at the end the following new subparagraph:
``(C) An individual with an outstanding loan balance who
meets the eligibility criteria for a deferment described in
subparagraph (A) as in effect on the date of enactment of
this subparagraph shall be eligible for deferment under this
paragraph notwithstanding any contrary provision of the
promissory note under which the loan or loans were made, and
notwithstanding any amendment (or effective date provision
relating to any amendment) to this section made prior to the
date of such deferment.''.
(4) Clerical amendment.--The matter following clause (iv)
of section 464(c)(2)(A) is amended by striking ``subparagraph
(B)'' and inserting ``subparagraph (A) of paragraph (1)''.
(h) Rehabilitation and Discharge of Loans.--Section 464 is
further amended by adding at the end the following new
subsections:
``(g) Rehabilitation of Loans.--(1)(A) If the borrower of a
loan made under this part who has defaulted on the loan makes
12 on-time, consecutive, monthly payments of amounts owed on
the loan, the loan shall be considered rehabilitated, and the
institution that made the loan (or the Secretary, in the case
of a loan held by the Secretary) shall instruct any credit
reporting organization to which the default was reported to
remove the default from the borrower's credit history.
``(B) As long as the borrower continues to make scheduled
repayments on a loan rehabilitated under this paragraph, the
rehabilitated loan shall be subject to the same terms and
conditions, and qualify for the same benefits and privileges,
as other loans made under this part.
``(C) The borrower of a rehabilitated loan shall not be
precluded by section 484 from receiving additional grant,
loan, or work assistance under this title (for which he or
she is otherwise eligible) on the basis of defaulting on the
loan prior to such rehabilitation.
``(D) A borrower may obtain the benefit of this paragraph
with respect to rehabilitating the loan only once.
``(2) If the borrower of loan made under this part who has
defaulted on that loan makes 6 on-time, consecutive, monthly
payments of amounts owed on such loan, the borrower's
eligibility for grant, loan, or work assistance under this
title shall be restored. A borrower may obtain the benefit of
this paragraph with respect to restored eligibility only
once.
``(h) Discharge.--
``(1) In general.--If a student borrower who received a
loan made under this part on or after January 1, 1986, is
unable to complete the program in which such student is
enrolled due to the closure of the institution, then the
Secretary shall discharge the borrower's liability on the
loan (including interest and collection fees) by repaying the
amount owed on the loan and shall subsequently pursue any
claim available to such borrower against the institution and
its affiliates and principals, or settle the loan obligation.
``(2) Assignment.--A borrower whose loan has been
discharged pursuant to this subsection shall be deemed to
have assigned to the United States the right to a loan refund
up to the amount discharged against the institution and its
affiliates and principals.
``(3) Eligibility for additional assistance.--The period of
a student's assistance at an institution at which the student
was unable to complete a course of study due to the closing
of the institution shall not be considered for purposes of
calculating the student's period of eligibility for
additional assistance under this title.
``(4) Special rule.--A borrower whose loan has been
discharged pursuant to this subsection shall not be
precluded, because of that discharge, from receiving
additional grant, loan, or work assistance under this title
for which the borrower would be otherwise eligible (but for
the default on the discharged loan). The amount discharged
under this subsection shall be treated the same as loans
under section 465(a)(5).
``(5) Reporting.--The Secretary or institution, as the case
may be, shall report to credit bureaus with respect to loans
that have been discharged pursuant to this subsection.''.
(i) Cancellation.--Section 465 (20 U.S.C. 1087ee) is
amended--
(1) in subsection (a)--
(A) in paragraph (2)(C), by striking ``section 676(b)(9)''
and inserting ``section 635(a)(10)'';
(B) by striking subparagraph (H) of paragraph (2) and
inserting the following:
``(H) as a full-time nurse or medical technician providing
health care services;'';
(C) by striking the period at the end of subparagraph (I)
of such paragraph and inserting a semicolon;
(D) by adding at the end of such paragraph the following
new subparagraphs:
``(J) as a member of the Commissioned Corps of the Public
Health Service of the United States; or
``(K) as a non-physician mental health professional
providing health care services in a health professional
shortage area designated under section 332 of the Public
Health Service Act.'';
(E) in the last sentence of paragraph (2), by striking
``section 602(a)(1)'' and inserting ``section 602(3)''; and
(F) by adding at the end the following new paragraph:
``(7) An individual with an outstanding loan obligation who
performs service of any type that is described in paragraph
(2) as in effect on the date of enactment of this paragraph
shall be eligible for cancellation under this section for
such service notwithstanding any contrary provision of the
promissory note under which the loan or loans were made, and
notwithstanding any amendment (or effective date provision
relating to any amendment) to this section made prior to the
date of such service.''; and
(2) in subsection (b), by adding at the end the following
new sentence: ``To the extent feasible, the Secretary shall
pay the amounts for which any institution qualifies under
this subsection no later than three months after the
institution files an institutional application for campus-
based funds.''.
(j) Distribution of Assets.--Section 466 (20 U.S.C. 1087ff)
is amended--
(1) by striking ``1996'' each place it appears and
inserting ``2003''; and
(2) by striking ``1997'' each place it appears and
inserting ``2004''.
(k) Collection of Defaulted Loans.--
(1) Repeal.--Subsection (c) of section 467 (20 U.S.C.
1087gg(c)) is repealed.
(2) Deposit.--Any funds in the Perkins Revolving Loan Fund
on the date of enactment of this Act shall be deposited in
the general fund of the Treasury.
(l) Status Confirmation Reports.--Section 468 (20 U.S.C.
1087hh) is amended--
(1) by inserting ``(a) In General.--'' before ``In carrying
out''; and
(2) by adding at the end the following new subsection:
``(b) Student Status Confirmation Reports.--The Secretary
shall ensure that borrowers under this part are included in
the student status confirmation report required by the
Secretary in the same manner as borrowers under parts B and D
of this title.''.
PART F--NEED ANALYSIS
SEC. 446. COST OF ATTENDANCE.
Section 472 (20 U.S.C. 1087ll) is amended--
(1) in paragraph (2), by inserting after ``personal
expenses'' the following: ``, including a reasonable
allowance for the rental or purchase of a personal
computer,''; and
(2) in paragraph (10), by striking everything after
``determining costs'' and inserting a semicolon.
SEC. 447. DATA ELEMENTS.
Section 474(b)(3) (20 U.S.C. 1087nn(b)(3)) is amended by
inserting ``, excluding the student's parents,'' after
``family of the student''.
SEC. 448. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
(a) Parents' Contribution From Adjusted Available Income.--
Section 475(b)(3) (20 U.S.C. 1087oo(b)(3)) is amended by
inserting ``, excluding the student's parents,'' after
``number of the family members''.
(b) Family Contribution From Assets.--Section 475 is
amended--
(1) in subsection (b)(1)(B), by striking ``parents'
contribution'' and inserting ``family contribution'';
(2) in the heading of subsection (d), by striking
``Parents' Contribution'' and inserting ``Family
Contribution'';
(3) in subsection (d)(1)--
(A) by striking ``parents' contribution'' and inserting
``family contribution''; and
(B) by striking ``parental net worth'' in subparagraph (A)
and inserting ``family net worth'';
(4) in subsection (d)(2)--
(A) by striking ``Parental'' in the heading and inserting
``Family'';
(B) by striking ``parental net worth'' and inserting
``family net worth''; and
(C) by inserting ``, for both the parents and the dependent
student'' after ``by adding'';
(5) by striking subsection (h); and
(6) by redesignating subsection (i) as subsection (h).
(c) Student Contribution From Available Income.--Section
475(g) is amended--
(1) in paragraph (2)--
(A) in subparagraph (D), by striking ``$1,750; and'' and
inserting ``$3,000, or a successor amount prescribed by the
Secretary under section 478;'';
(B) by striking the period at the end of subparagraph (E)
and inserting ``; and''; and
(C) by inserting after subparagraph (E) the following new
subparagraph:
``(F) an allowance for parents' negative available income,
determined in accordance with paragraph (6).''; and
(2) by adding at the end the following new paragraph:
``(6) Allowance for parents' negative available income.--
The allowance for parents' negative available income is the
amount, if any, by which the sum of the amounts deducted
under subparagraphs (A) through (F) of paragraph (2) exceeds
the parents' total income (as defined in section 480).''.
(e) Adjustments to Students Contribution for Enrollment
Periods Other Than Nine
[[Page H2564]]
Months.--Section 475 is amended by adding at the end the
following new subsection:
``(i) Adjustments to Students Contribution for Enrollment
Periods of Less Than Nine Months.--For periods of enrollment
of less than nine months, the student's contribution from
adjusted available income (as determined under subsection
(g)) is determined, for purposes other than subpart 2 of part
A, by dividing amount determined under such subsection by
nine, and multiplying the result by the number of months in
the period of enrollment.''.
SEC. 449. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS
WITHOUT DEPENDENTS OTHER THAN A SPOUSE.
(a) Adjustments for Enrollment Periods Other Than Nine
Months.--Section 476(a) (20 U.S.C. 1087pp(a)) is amended--
(1) by striking ``and'' at the end of paragraph (1)(B);
(2) by inserting ``and'' after the semicolon at the end of
paragraph (2); and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) for periods of enrollment of other than 9 months, for
purposes other than subpart 2 of part A--
``(A) dividing the quotient resulting under paragraph (2)
by nine; and
``(B) multiplying the result by the number of months in the
period of enrollment;''.
(b) Contribution From Available Income.--Section
476(b)(1)(A)(iv) is amended--
(1) by striking ``allowance of--'' and inserting
``allowance of the following amount (or a successor amount
prescribed by the Secretary under section 478)--'';
(2) by striking ``$3,000'' each place it appears in
subclauses (I) and (II) and inserting ``$5,500''; and
(3) by striking ``$6,000'' in subclause (III) and inserting
``$8,500''.
SEC. 450. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH
DEPENDENTS OTHER THAN A SPOUSE.
Section 477(a) (20 U.S.C. 1087qq(a)) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by inserting ``and'' after the semicolon at the end of
paragraph (3); and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) for periods of enrollment of other than 9 months, for
purposes other than subpart 2 of part A--
``(A) dividing the quotient resulting under paragraph (3)
by nine; and
``(B) multiplying the result by the number of months in the
period of enrollment;''.
SEC. 451. REGULATIONS; UPDATED TABLES AND AMOUNTS.
Section 478(b) (20 U.S.C. 1087rr(b)) is amended--
(1) by striking ``For each academic year'' and inserting
the following:
``(1) Revised tables.--For each academic year''; and
(2) by adding at the end the following new paragraph:
``(2) Revised amounts.--For each academic year after
academic year 1997-1998, the Secretary shall publish in the
Federal Register revised income protection allowances for the
purpose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). Such
revised allowances shall be developed by increasing each of
the dollar amounts contained in such section by a percentage
equal to the estimated percentage increase in the Consumer
Price Index (as determined by the Secretary) between December
1996 and the December next preceding the beginning of such
academic year, and rounding the result to the nearest $10.''.
SEC. 452. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
(a) Special Circumstances.--Section 479A(a) (20 U.S.C.
1087tt(a)) is amended--
(1) in the first sentence, by inserting after ``(or both)''
the following: ``or, in extraordinary circumstances, the
amount of the expected family contribution,''; and
(2) by inserting after the second sentence the following
new sentence: ``Special circumstances may include tuition
expenses at an elementary or secondary school, medical or
dental expenses not covered by insurance, unusually high
child care costs, recent unemployment of a family member, or
other changes in a family's income or assets or a student's
status. Extraordinary circumstances shall be defined by the
Secretary by regulation.''.
(b) Refusal or Adjustment of Loan Certifications.--Section
479A is amended by striking subsection (c) and inserting the
following:
``(c) Refusal or Adjustment of Loan Certifications.--On a
case-by-case basis, an eligible institution may refuse to
certify a statement which permits a student to receive a loan
under part B, or refuse to make a loan under part D, or
may certify a loan amount or make a loan that is less than
the student's determination of need (as determined under
this part), if the reason for the action is documented and
provided in written form to the student and the student is
afforded an opportunity to appeal the action in a timely
fashion. No eligible institution shall discriminate
against any borrower or applicant in obtaining a loan on
the basis of race, national origin, religion, sex, marital
status, age, or handicapped status.''.
SEC. 453. TREATMENT OF OTHER FINANCIAL ASSISTANCE.
Section 480(j)(3) (20 U.S.C. 1087vv(j)(3)) is amended by
inserting after ``paragraph (1),'' the following: ``a post-
service benefit under chapter 30 of title 38, United States
Code, or''.
PART G--GENERAL PROVISIONS
SEC. 461. DEFINITIONS.
Section 481 (20 U.S.C. 1088), as amended by section 102(b),
is further amended by adding at the end the following new
subsection:
``(d) Distance Learning.--For the purpose of any program
under this title, the term `distance learning' means an
educational process that is characterized by the separation,
in time or place, between instructor and student. Distance
learning may include courses offered principally through the
use of--
``(1) television, audio, or computer transmission, such as
open broadcast, closed circuit, cable, microwave, or
satellite transmission;
``(2) audio or computer conferencing;
``(3) video cassettes or discs; or
``(4) correspondence.''.
SEC. 462. MASTER CALENDAR.
(a) Required Schedule.--Section 482(a) (20 U.S.C. 1089(a))
is amended by adding at the end the following new paragraphs:
``(3) The Secretary shall, to the extent practicable,
notify eligible institutions, guaranty agencies, lenders,
interested software providers, and, upon request, other
interested parties, by December 1 prior to the start of an
award year of minimal hardware and software requirements
necessary to administer programs under this title.
``(4) The Secretary shall attempt to conduct training
activities for financial aid administrators and others in an
expeditious and timely manner prior to the start of such
award year in order to ensure that all participants are
informed of all administrative requirements.''.
(b) Delay of Effective Date.--Section 482(c) is amended by
striking the second sentence and inserting the following:
``The Secretary shall provide a period for public comment of
not less than 60 days after publication of any notice of
proposed rulemaking affecting programs under this title.''.
SEC. 463. FORMS AND REGULATIONS.
(a) Common Financial Aid Form.--Section 483(a) (20 U.S.C.
1090(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``A, C, D, and E'' and inserting ``A
through E'';
(B) by striking ``and to determine the need of a student
for the purpose of part B of this title''; and
(C) by striking the last sentence and inserting the
following: ``The Secretary shall include, on the first page
of the form, a prominently displayed notice to students and
parents advising them to check with the college financial aid
office in the event that they have unusual circumstances
which may affect their eligibility for financial aid.'';
(2) in paragraph (2)--
(A) by striking ``A, C, D, and E'' each place it appears
and inserting ``A through E'';
(B) by striking ``and the need of a student for the purpose
of part B of this title,''; and
(C) by striking ``or have the student's need established
for the purpose of part B of this title'';
(3) in the first sentence of paragraph (3), by inserting
``processing loan applications and'' after ``for the purposes
of''; and
(4) by adding at the end the following new paragraph:
``(5) Electronic forms.--(A) The Secretary, in cooperation
with representatives of agencies and organizations involved
in student financial assistance, including private computer
software providers, shall develop an electronic version of
the form described in paragraph (1). Such an electronic
version shall not require a signature to be collected at the
time such version is submitted, as permitted by the
Secretary. The Secretary shall prescribe such version no
later than 120 days after the date of enactment of the Higher
Education Amendments of 1998.
``(B) Nothing in this section shall prohibit the use of the
version of the form developed by the Secretary pursuant to
subparagraph (A) by an eligible institution, eligible lender,
guaranty agency, State grant agency, private computer
software providers, a consortium thereof, or such other
entities as the Secretary may designate.
``(C) The Secretary shall provide to such organization or
consortium necessary specifications that software developed,
produced, distributed (including any diskette, modem or
network communications, or otherwise) must meet. Included in
the specifications shall be test cases that such organization
or consortia must use to prove accuracy of its cases to the
Secretary. If the results of the test cases are inconsistent
with the provisions of this part, the Secretary shall notify
the submitting organizations or consortium of his objection
within 30 days of such submission. In the absence of such an
objection the organization or consortium may use the
electronic form as submitted. No fee shall be charged to
students in connection with the use of the electronic form,
or of any other electronic forms used in conjunction with
such form in applying for Federal or State student financial
assistance.
``(D) The Secretary shall ensure that data collection
complies with section 552a of title 5, United States Code,
and that any entity using the version of the form
developed by the Secretary pursuant to subparagraph (A)
shall maintain reasonable and appropriate administrative,
technical, and physical safeguards to ensure the integrity
and confidentiality of the information, and to protect
against security threats, or unauthorized uses or
disclosures of the information provided on the version of
the form. Data collected by such version of the form shall
be used only for the application, award, and
administration of aid awarded under this title, State aid,
or aid awarded by eligible institutions or such entities
as the Secretary may designate. No data collected by such
version of the form shall be used for making final aid
awards under this title until such data have been
processed by the Secretary or a contractor or designee of
the Secretary.''.
[[Page H2565]]
(b) Streamlined Reapplication Process.--Section 483(b)(1)
is amended by striking ``, within 240 days'' and everything
that follows through ``of 1992,''.
(c) Information to Committees.--Section 483(c) is amended
by striking ``and Labor'' and inserting ``and the
Workforce''.
(d) Toll-Free Information.--Section 483(d) is amended by
striking ``section 633(c)'' and inserting ``section
685(d)(2)(C)''.
(e) Repeal.--Subsection (f) of section 483 is repealed.
SEC. 464. STUDENT ELIGIBILITY.
(a) In General.--Section 484(a) (20 U.S.C. 1091(a))--
(1) in paragraph (4), by striking ``the institution'' and
everything that follows through ``lender), a document'' and
inserting ``the Federal Government, as part of the original
financial aid application process, a certification''; and
(2) in paragraph (4)(B), by inserting after ``social
security number,'' the following: ``and if a dependent
student, the social security number of any parent of such
student whose income information is required to be included
on the form,''.
(b) Termination of Eligibility.--Section 484(j) is amended
by inserting ``until September 30, 2001'' after ``a student
shall be eligible''.
(c) Verification of Income Data.--Section 484 is amended by
adding at the end the following new subsection:
``(q) Verification of Income Data.--
``(1) Confirmation with irs.--The Secretary of Education,
in cooperation with the Secretary of the Treasury, is
authorized to confirm with the Internal Revenue Service the
adjusted gross income, filing status, and exemptions reported
by applicants (including parents) under this title on their
Federal income tax returns for the purpose of verifying the
information reported by applicants on student financial aid
applications.
``(2) Notification.--The Secretary shall establish
procedures under which an applicant is notified that the
Internal Revenue Service will disclose to the Secretary tax
return information as authorized under section 6103(l)(13) of
the Internal Revenue Code of 1986.''.
(d) Suspension of Eligibility for Drug-Related Offenses.--
(1) Amendment.--Section 484 is further amended by adding at
the end thereof the following new subsection:
``(r) Suspension of Eligibility for DrugRelated Offenses.--
``(1) In general.--An individual student who has been
convicted of any offense under any Federal or State law
involving the possession or sale of a controlled substance
shall not be eligible to receive any grant, loan, or work
assistance under this title during the period beginning on
the date of such conviction and ending after the interval
specified in the following table:
``If convicted of an offense
involving:
The possession of a controlled Ineligibility period is:
substance:
First offense............... 1 year
Second offense.............. 2 years
Third offense............... indefinite
The sale of a controlled
substance:
First offense............... 2 years
Second offense.............. indefinite
``(2) Rehabilitation.--A student whose eligibility has been
suspended under paragraph (1) may resume eligibility before
the end of the period determined under such paragraph if the
student satisfactorily completes a drug rehabilitation
program that complies with such criteria as the Secretary
shall prescribe for purposes of this paragraph.
``(3) Definitions.--As used in this subsection, the term
`controlled substance' has the meaning given in section
102(6) of the Controlled Substances Act (21 U.S.C.
802(6)).''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to financial assistance to cover the
costs of attendance for periods of enrollment beginning after
the date of enactment of this Act.
SEC. 465. STATE COURT JUDGMENTS.
Section 484A (20 U.S.C. 1091a) is amended by adding at the
end the following new subsection:
``(c) State Court Judgments.--A judgment of a State court
for the recovery of money provided as grant, loan, or work
assistance under this title that has been assigned or
transferred to the Secretary under this title may be
registered in any district court by filing a certified copy
of the judgment and the assignment or other transfer to the
Secretary. A judgment so registered shall have the same force
and effect, and may be enforced in the same manner, as a
judgment of the district court of the district in which the
judgment is registered.''.
SEC. 466. INFORMATION FOR STUDENTS.
(a) Information Dissemination.--Section 485(a) (20 U.S.C.
1092(a)) is amended--
(1) in paragraph (1), by striking the second sentence and
inserting the following: ``The information required by this
section shall be produced and be made readily available upon
request, through appropriate publications, mailings, and
electronic media to all current students and to any
prospective student. Each eligible institution shall, on an
annual basis, provide to all enrolled students a list of the
information that is required to be provided by institutions
to students by this Act and section 444 of the General
Education Provisions Act (also referred to as the Family
Educational Rights and Privacy Act of 1974), together with a
statement of the procedures required to obtain such
information.'';
(2) in paragraph (3)--
(A) in the first sentence, by striking ``, or enrolled in
any program of an eligible institution for which the prior
program provides substantial preparation''; and
(B) by striking subparagraph (A) and inserting the
following:
``(A) shall be made available by July 1 each year to
current and prospective students prior to enrolling or
entering into any financial obligation; and''; and
(3) by adding at the end the following new paragraph:
``(6) Each institution may, but is not required to, provide
supplemental information to enrolled and prospective students
showing the completion or graduation rate for students
transferring into the institution or information showing the
rate at which students transfer out of the institution.''.
(b) Departmental Publications.--Section 485(d) is amended--
(1) by striking ``(1) assist'' and inserting ``(A)
assist'';
(2) by striking ``(2) assist'' and inserting ``(B)
assist'';
(3) by inserting ``(1)'' before ``The Secretary'' the first
place it appears; and
(4) by adding at the end the following new paragraphs:
``(2) The Secretary shall, to the extent such information
is available, compile information describing State prepaid
tuition programs and disseminate such information to States,
eligible institutions, students, and parents in departmental
publications.
``(3) The Secretary shall, to the extent practicable,
update the Department's Internet site to include direct links
to databases which contain information on public and private
financial assistance programs. The Secretary shall only
provide direct links to databases which can be accessed
without charge and shall verify with appropriate parties that
the databases included in the direct link are not in any way
providing fraudulent information. The Secretary shall
prominently display adjacent to the direct link a disclaimer
indicating that a direct link to a database does not
constitute an endorsement or recommendation of the database
or its provider or any services or products of such provider.
The Secretary shall provide additional direct links to
information resources from which students may obtain
information about fraudulent and deceptive practices in the
provision of services related to student financial aid.''.
(c) Disclosures.--Section 485(e) is amended--
(1) in paragraph (2)--
(A) by striking ``his parents, his guidance'' and inserting
``the student's parents, guidance''; and
(B) by adding at the end the following new sentence: ``If
the institution is a member of a national collegiate athletic
association that compiles graduation rate data on behalf of
its member institutions that the Secretary determines is
substantially comparable to the information described in
paragraph (1), the distribution of the compilation of such
data to all secondary schools in the United States shall
fulfill the responsibility of the institution to provide
information to a prospective student athlete's guidance
counselor and coach.'';
(2) in paragraph (4), by striking ``when such completion or
graduation rate includes students transferring into and out
of such institution'' and inserting ``for students
transferring into the institution or information showing the
rate at which students transfer out of the institution''; and
(3) by striking paragraph (9) and inserting the following:
``(9) The reports required by this subsection shall be due
on each July 1 and shall cover the 1-year period ending
August 31 of the preceding year.''.
(d) Campus Crime Reporting and Disclosure.--Section 485(f)
is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (F) and inserting the
following:
``(F) Statistics concerning the occurrence on campus,
during the most recent calendar year, and during the 2
preceding calendar years, of the following criminal offenses
or arrests reported to campus security authorities, campus
officials who have direct administrative responsibility for
student or campus activities, disciplinary officers and other
officials responsible for resolving student disciplinary
matters, athletic department officials, or local police
agencies (including offenses handled through the campus
disciplinary system):
``(i) murder;
``(ii) sex offenses, forcible or nonforcible;
``(iii) robbery;
``(iv) aggravated assault;
``(v) burglary;
``(vi) motor vehicle theft;
``(vii) manslaughter;
``(viii) larceny;
``(ix) arson; and
``(x) arrests or persons referred for campus disciplinary
action for liquor law violations, drug-related violations,
and weapons possession.'';
(B) by striking subparagraph (H); and
(C) by redesignating subparagraph (I) as subparagraph (H);
(2) in paragraph (4)--
(A) by striking ``Upon request of the Secretary, each'' and
inserting ``On an annual basis, each'';
(B) by striking ``paragraphs (1)(F) and (1)(H)'' and
inserting ``paragraph (1)(F)'';
(C) by striking ``and Labor'' and inserting ``and the
Workforce'';
(D) by striking ``1995'' and inserting ``2000'';
(E) by striking ``and'' at the end of subparagraph (A);
(F) by redesignating subparagraph (B) as subparagraph (C);
and
(G) by inserting after subparagraph (A) the following new
subparagraph:
``(B) make copies of the statistics submitted to the
Secretary available to the public; and'';
[[Page H2566]]
(3) in paragraph (6)--
(A) by striking ``paragraphs (1)(F) and (1)(H)'' and
inserting ``paragraph (1)(F)''; and
(B) by adding at the end the following new sentence: ``Such
statistics shall not identify victims of crimes or persons
accused of crimes.''; and
(4) by adding at the end the following new paragraphs:
``(8)(A) Each institution participating in any program
under this title that maintains either a police or security
department of any kind shall make, keep, and maintain a daily
log, written in a form that can be easily understood,
recording in chronological order all crimes reported to such
police or security department, including the nature, date,
time, and general location of each crime and the disposition
of the complaint, if known.
``(B) All entries that are required by this paragraph shall
be open to public inspection during normal business hours
within two business days of the initial report being made to
the department, unless--
``(i) disclosure of such information is prohibited by law;
or
``(ii) the release of such information is likely to
jeopardize an ongoing criminal investigation or the safety of
an individual, cause a suspect to flee or evade detection, or
result in the destruction of evidence.
Any information withheld under clause (ii) shall be open to
public inspection as soon as the damage that is the basis for
such withholding is no longer likely to occur.
``(9) The Secretary shall provide technical assistance in
complying with the provisions of this section to an
institution of higher education who requests such
assistance.''.
(e) Data Required.--Section 485(g) is amended--
(1) in paragraph (1), by adding at the end the following
new subparagraphs:
``(I)(i) The total revenues, and the revenues from
football, men's basketball, women's basketball, all other
men's sports combined and all other women's sports combined,
derived by the institution from its intercollegiate athletics
activities.
``(ii) For the purpose of clause (i), revenues from
intercollegiate athletics activities allocable to a sport
shall include (without limitation) gate receipts, broadcast
revenues, appearance guarantees and options, concessions, and
advertising, but revenues such as student activities fees or
alumni contributions not so allocable shall be included in
the calculation of total revenues only.
``(J)(i) The total expenses, and the expenses attributable
to football, men's basketball, women's basketball, all other
men's sports combined, and all other women's sports combined,
made by the institution for its intercollegiate athletics
activities.
``(ii) For the purpose of clause (i) expenses for
intercollegiate athletics activities allocable to a sport
shall include (without limitation) grants-in-aid, salaries,
travel, equipment, and supplies, but expenses such as general
and administrative overhead not so allocable shall be
included in the calculation of total expenses only.
``(K) A statement of any reduction that may or is likely to
occur during the ensuing 4 academic years in the number of
athletes that will be permitted to participate in any
collegiate sport, or in the financial resources that the
institution will make available to any such sport, and the
reasons for any such reduction.''; and
(2) by striking paragraph (5).
SEC. 467. NATIONAL STUDENT LOAN DATA SYSTEM.
Section 485B(a) (20 U.S.C. 1092b(a)) is amended by
inserting before the period at the end of the third sentence
the following: ``no later than one year after the date of
enactment of the Higher Education Amendments of 1997''.
SEC. 468. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required Content.--Section 487(a) (20 U.S.C. 1094(a))
is amended--
(1) in the first sentence, by striking ``, except with
respect to a program under subpart 4 of part A,'';
(2) in paragraph (3), by striking subparagraph (B) and
inserting the following:
``(B) the appropriate State agency;'';
(3) in paragraph (4), by striking ``subsection (b)'' and
inserting ``subsection (c)'';
(4) in paragraph (15), by striking ``State review entities
under subpart 1 of part H'' and inserting ``appropriate State
agencies'';
(5) by striking paragraph (18) and inserting the following:
``(18) The institution will meet the requirements
established pursuant to section 485(g).''; and
(6) by striking paragraph (21) and inserting the following:
``(21) The institution will meet the requirements
established by the Secretary, appropriate State agencies, and
accrediting agencies, pursuant to part H of this title.''.
(b) Audits; Financial Responsibility.--Section 487(c) is
amended--
(1) in paragraph (1)(A)(i), by striking ``State agencies''
and everything that follows through the semicolon and
inserting ``and appropriate State agencies;'';
(2) in paragraph (2), by striking ``subpart 3'' and
inserting ``subpart 2'';
(3) in paragraph (4), by striking ``, after consultation''
and everything that follows through ``part H,''; and
(4) in paragraph (5), by striking ``State review'' and
everything that follows through ``part H'' and inserting
``appropriate State agencies''.
SEC. 469. QUALITY ASSURANCE AND REGULATORY SIMPLIFICATION.
Section 487A (20 U.S.C. 1094a) is amended to read as
follows:
``SEC. 487A. QUALITY ASSURANCE AND REGULATORY SIMPLIFICATION
PROGRAM.
``(a) In General.--The Secretary is authorized to select
institutions for voluntary participation in a Regulatory
Simplification Program that provides participating
institutions with the opportunity to develop and implement an
alternative management program that--
``(1) shall allow alternative methods of complying with
regulations issued with respect to parts A through E and G of
this title;
``(2) shall not modify or waive the application of any
requirement or other provision of this Act; and
``(3) may include a Quality Assurance Program through which
individual schools develop and implement their own
comprehensive systems to verify student financial aid
application data, thereby enhancing program integrity within
the student aid delivery system.
``(b) Selection Criteria.--The criteria for selecting
institutions for participation in the Regulatory
Simplification Program shall be based on criteria that
include demonstrated institutional performance, as determined
by the Secretary, and shall take into consideration
regulatory simplification goals, as determined by the
Secretary. The selection criteria shall ensure the
participation of representatives of institutions of higher
education according to size, mission, and geographical
distribution.
``(c) Removal From the Program.--The Secretary is
authorized to determine--
``(1) when an institution that is unable to administer the
Regulatory Simplification Program must be removed from such
program, and
``(2) when institutions desiring to cease participation in
such Program will be required to complete the current award
year under the requirements of the Program.
``(d) Experimental Sites.--The Secretary is authorized to
designate institutions selected for participation in the
Regulatory Simplification Program as Experimental Sites.
``(e) Definitions.--For purposes of this section, the term
`current award year' means the award year during which the
participating institution indicates its intention to cease
participation.''.
SEC. 470. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
Part G of title IV is amended--
(1) by redesignating section 487B (20 U.S.C. 1094b) as
section 487C; and
(2) by inserting after section 487A (as amended by section
469) the following new section:
``SEC. 487B. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
``(a) Purpose.--It is the purpose of this section--
``(1) to allow demonstration programs that are strictly
monitored by the Department of Education to test the quality
and viability of expanded distance education programs
currently restricted under this Act;
``(2) to provide for increased student access to higher
education through distance education programs;
``(3) to help determine the most effective means of
delivering quality education via distance education course
offerings; and
``(4) to help determine the appropriate level of Federal
assistance for students enrolled in distance education
programs.
``(b) Demonstration Programs Authorized.--
``(1) In general.--The Secretary is authorized to select
institutions or a consortia of institutions for voluntary
participation in a Distance Education Demonstration Program
that provides participating institutions with the ability
to offer distance education programs without regard to the
current restrictions in part F or G of this title or part
A of title I.
``(2) Exemptions.--The Secretary is authorized to exempt
any institution or consortia participating in a Distance
Education Demonstration Program from any of the requirements
of parts F or G of this title, or part A of title I, or the
regulations prescribed under such parts.
``(c) Application.--Each institution or consortia of
institutions desiring to participate in a demonstration
program under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by
such information as the Secretary may require.
``(d) Selection.--To the extent feasible, the Secretary
shall select a representative sample institutions for
participation in the demonstration program authorized under
this section. In selecting institutions for participation,
the Secretary shall take into consideration the institution's
financial and administrative capability and the type of
program or programs being offered via distance education
course offerings. The Secretary shall, in the exercise of his
discretion, determine the number of demonstration programs to
be allowed based on the number and quality of applications
received and the Department's capacity to oversee and monitor
each demonstration program.
``(e) Evaluation and Report.--
``(1) Evaluation.--The Secretary shall, on an annual basis,
evaluate the demonstration programs authorized under this
section. Such evaluations shall specifically review--
``(A) the quality of the programs being offered;
``(B) issues related to student financial assistance for
distance education; and
``(C) effective technologies for delivering distance
education course offerings.
``(2) Policy analysis.--In addition, the Secretary shall
review current policies and identify those policies which
present impediments to the development and use of distance
learning and other nontraditional methods of expanding access
to education.
``(3) Report.--The Secretary shall report to the
appropriate committees of Congress with respect to--
[[Page H2567]]
``(A) the evaluations of the demonstration programs
authorized under this section; and
``(B) any proposed legislative changes designed to enhance
the use of distance education.''.
SEC. 471. GARNISHMENT REQUIREMENTS.
(a) Maximum Percentage.--Section 488A(a)(1) (20 U.S.C.
1095a(a)(1)) is amended by striking ``10 percent'' and
inserting ``15 percent''.
(b) No Attachment of Student Assistance.--Section 488A is
further amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection:
``(d) No Attachment of Student Assistance.--Except as
authorized in this section, notwithstanding any other
provision of Federal or State law, no grant, loan, or work
assistance awarded under this title, or property traceable to
such assistance, shall be subject to garnishment or
attachment in order to satisfy any debt owed by the student
awarded such assistance, other than a debt owed to the
Secretary and arising under this title.''.
SEC. 472. ADMINISTRATIVE SUBPOENA AUTHORITY.
Part G of title IV of the Act is further amended by
inserting immediately after section 490 (20 U.S.C. 1097) the
following new section:
``SEC. 490A. ADMINISTRATIVE SUBPOENAS.
``(a) Authority.--To assist the Secretary in the conduct of
investigations of possible violations of the provisions of
this title, the Secretary is authorized to require by
subpoena the production of information, documents, reports,
answers, records, accounts, papers, and other documentary
evidence pertaining to participation in any program under
this title. The production of any such records may be
required from any place in a State.
``(b) Enforcement.--In case of contumacy by, or refusal to
obey a subpoena issued to, any person, the Secretary may
request the Attorney General to invoke the aid of any court
of the United States where such person resides or transacts
business for a court order for the enforcement of this
section.''.
SEC. 473. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
Section 491 (20 U.S.C. 1098) is amended--
(1) in subsection (b)--
(A) by inserting ``staffing levels,'' after ``allocations
and expenditures,'' the first place it appears; and
(B) by striking the fourth and fifth sentences and
inserting the following: ``Reports, publications, and other
documents, including documents in electronic form, shall not
be subject to review by the Secretary.'';
(2) in subsection (c)(1)--
(A) by striking ``11 members'' and inserting ``15
members''; and
(B) by striking ``3 members'' each place it appears in
subparagraphs (A) and (B) and inserting ``5 members'';
(3) in subsection (c)(2), by striking ``7 members'' and
inserting ``11 members'';
(4) in subsection (e)--
(A) by striking everything after ``except that,'' in
paragraph (1) and inserting the following:
``within 90 days after the date of enactment of the Higher
Education Amendments of 1998, 2 additional members shall be
appointed by the President pro tempore of the Senate (one
upon the recommendation of the Majority Leader and one upon
the recommendation of the Minority Leader) and 2 additional
members shall be appointed by the Speaker of the House (one
upon the recommendation of the Majority Leader and one upon
the recommendation of the Minority Leader). Of the additional
members--
``(A) 2 shall be appointed for a term of 1 year;
``(B) 1 shall be appointed for a term of 2 years; and
``(C) 1 shall be appointed for a term of 3 years.'';
(B) by striking ``Six members'' in paragraph (4) and
inserting ``Eight members''; and
(C) by adding at the end the following new paragraph:
``(6) No officer or full-time employee of the United States
shall serve as members of the Advisory Committee.'';
(5) by striking subsection (g) and inserting the following:
``(g) Compensation and Expenses.--Members of the Advisory
Committee may each receive reimbursement for travel expenses
incident to attending Advisory Committee meetings, including
per diem in lieu of subsistence, as authorized by section
5703 of title 5, United States Code, for persons in the
Government service employed intermittently.'';
(6) in subsection (h)(1), by striking ``may be necessary by
the Chairman without regard to'' and inserting ``may be
deemed necessary by the Chairman without regard to personnel
ceilings or'';
(7) in subsection (i), by striking ``$750,000'' and
inserting ``$850,000'';
(8) by striking subsection (j) and inserting the following:
``(j) Special Analyses and Activities.--The committee
shall--
``(1) monitor and evaluate the modernization of student
financial aid systems and delivery processes;
``(2) monitor and evaluate the implementation of a
performance-based organization within the Department of
Education and report to Congress, on not less than an annual
basis, including recommendations for improvements; and
``(3) assess the adequacy of current methods for
disseminating information about programs under this title and
recommend improvements, as appropriate, regarding early needs
assessment and information for first-year high school
students.'';
(9) in subsection (k), by striking ``1998'' and inserting
``2004''; and
(10) by striking subsection (l).
SEC. 474. MEETINGS AND NEGOTIATED RULEMAKING.
Section 492 (20 U.S.C. 1098a) is amended to read as
follows:
``SEC. 492. NEGOTIATED RULEMAKING.
``(a) In General.--
``(1) Regulation development.--In developing regulations
and revisions thereof under this title, the Secretary shall
obtain the advice and recommendations of individuals and
representatives of the groups involved in student financial
assistance programs under this title, such as students, legal
assistance organizations that represent students,
institutions of higher education, guaranty agencies, lenders,
secondary markets, loan servicers, guaranty agency servicers,
and collection agencies.
``(2) Input.--Such advice and recommendations may be
obtained through such mechanisms as national meetings and
electronic exchanges of information.
``(b) Proposed Regulations.--After obtaining such advice
and recommendations, and prior to publishing any proposed
regulations and revisions thereof under this title in the
Federal Register, the Secretary shall prepare draft
regulations and submit such regulations to a negotiated
rulemaking process. In establishing the negotiated rulemaking
process under this section, the Secretary shall--
``(1) follow the procedural requirements used in
implementing section 1601(b) of the Elementary and Secondary
Education Act of 1965;
``(2) select participants in the negotiations process from
individuals and groups participating in the exchanges
described in subsection (a)(1), including both
representatives of such groups from the District of Columbia,
and industry participants, and to the extent possible, the
Secretary shall select individuals reflecting the diversity
in the industry, representing both large and small
participants, as well as individuals serving local areas and
national markets;
``(3) conduct the negotiations process in a timely manner
in order that final regulations may be issued by the
Secretary within the 240-day period described in section
431(g) of the General Education Provisions Act, and any
subsequent revisions to regulations under this title may be
issued in accordance with the master calendar provisions of
section 482 of this title; and
``(4) prepare a transcript of the negotiated rulemaking
proceedings that shall be available to the public prior to
the issuance of any final regulations.
``(c) Federal Advisory Committee Act.--The Federal Advisory
Committee Act shall not apply to activities carried out under
this section.''.
PART H--PROGRAM INTEGRITY
SEC. 476. STATE POSTSECONDARY REVIEW PROGRAM.
(a) Amendments.--Part H of title IV is amended--
(1) in the heading of the part, by striking ``TRIAD'';
(2) by striking subpart 1 (20 U.S.C. 1099a through 1099a-
3); and
(3) by redesignating subparts 2 and 3 as subparts 1 and 2,
respectively.
(b) Conforming Amendments.--Section 496 (20 U.S.C. 1099b)
is amended by striking ``subpart 3'' each place it appears in
subsections (j) and (k) and inserting ``subpart 2''.
SEC. 477. ACCREDITING AGENCY RECOGNITION.
(a) Recognition.--
(1) The heading of subpart 1 of part H (as redesignated by
section 476(a)(3)) is amended by striking ``APPROVAL'' and
inserting ``RECOGNITION''.
(2) The heading of section 496 is amended by striking
``APPROVAL'' and inserting ``RECOGNITION''.
(b) Standards.--Section 496(a) is amended--
(1) by striking ``Standards'' and inserting ``Criteria'';
(2) by striking ``standards'' each place it appears and
inserting ``criteria'';
(3) in paragraph (5)--
(A) by striking ``of accreditation'' and inserting ``for
accreditation'';
(B) by inserting ``the quality (including the quality of
distance learning programs or courses) of'' before ``the
institution's'';
(C) in subparagraph (G), by striking ``program length and
tuition and fees in relation to the subject matters taught''
and inserting ``measures of program length'';
(D) by striking subparagraph (J);
(E) in subparagraph (L), by inserting ``the most recent
student loan default rate data provided by the Secretary
and'' after ``including'';
(F) by striking ``and'' at the end of subparagraph (K);
(G) by inserting ``and'' after the semicolon at the end of
subparagraph (L);
(H) by redesignating subparagraphs (K) and (L) as
subparagraphs (J) and (K), respectively;
(I) by inserting after subparagraph (K) (as so
redesignated) the following new subparagraph:
``(L) refund policy;''; and
(J) by striking ``(J), and (L)'' and inserting ``(K) and
(L)'';
(4) in paragraph (7), by striking ``State postsecondary
review entity'' and inserting ``State licensing or
authorizing agency''; and
(5) in paragraph (8), by striking ``State postsecondary''
and everything that follows through ``is located'' and
inserting ``State licensing or authorizing agency''.
(c) Operating Procedures.--Section 496(c) is amended--
(1) by striking ``approved by the Secretary'' and inserting
``recognized by the Secretary'';
(2) in paragraph (1), by striking ``(at least'' and
everything that follows through ``unannounced),'' and
inserting ``(which may include unannounced site visits)'';
and
(3) in paragraph (3), by inserting before the semicolon at
the end the following: ``, except
[[Page H2568]]
that new sites offered through telecommunications for
programs previously included in the scope of accreditation
approval need not be subject to such on-site visits''.
(d) Conforming Amendments.--Section 496 is further
amended--
(1) in subsection (d)--
(A) by striking ``Approval'' in the heading of such
subsection and inserting ``Recognition''; and
(B) by striking ``approved'' and inserting ``recognized'';
(2) in subsection (f), by striking ``approved'' and
inserting ``recognized'';
(3) in subsection (g)--
(A) by striking ``Standards'' and inserting ``Criteria'';
and
(B) by striking ``standards'' and inserting ``criteria'';
(4) in subsection (k)(2), by striking ``standards'' and
inserting ``criteria'';
(5) in subsection (l)--
(A) by striking ``Approval'' in the heading of such
subsection and inserting ``Recognition'';
(B) by striking ``the standards'' each place it appears and
inserting ``its standards''; and
(C) by striking ``approval'' and inserting ``recognition'';
and
(6) in subsection (n)--
(A) by striking ``standards'' each place it appears and
inserting ``criteria'';
(B) in paragraph (3)--
(i) by striking ``approval or disapproval'' and inserting
``recognition or denial of recognition''; and
(ii) by striking ``approval process'' and inserting
``recognition process''; and
(C) by striking paragraph (4) and inserting the following:
``(4) The Secretary shall maintain sufficient documentation
to support the conclusions reached in the recognition
process, and, if the Secretary does not recognize any
accreditation agency or association, shall make publicly
available the reason for denying recognition, including
reference to the specific criteria under this section which
have not been fulfilled.''.
SEC. 478. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) Single Application Form.--Section 498(b)(1) (20 U.S.C.
1099c(b)(1)) is amended by striking ``accreditation, and
capability'' and inserting ``accreditation, financial
responsibility, and administrative capacity''.
(b) Financial Responsibility Standards.--Section 498(c) is
amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``is able'' and inserting ``has sufficient
resources to ensure against the precipitous closure of the
institution and is able'';
(2) in paragraph (2)--
(A) in the first sentence, by striking ``operating losses,
net worth, asset-to-liabilities ratios, or operating fund
deficits'' and inserting ``to ratios that demonstrate
financial responsibility,'';
(B) in the second sentence, by inserting ``, public,''
after ``for profit''; and
(C) by inserting before the period at the end the
following: ``, and develop an appropriate and cost effective
process under this subpart that does not duplicate other
reporting requirements for assessing and reviewing financial
responsibility''; and
(3) in paragraph (4)--
(A) in the first sentence, by striking ``ratio of current
assets to current liabilities'' and inserting ``criteria'';
and
(B) in subparagraph (C), by striking ``current operating
ratio requirement'' and inserting ``criteria imposed by the
Secretary pursuant to paragraph (2)''.
(c) Administrative Capacity.--Section 498(d)(1) is
amended--
(1) in subparagraph (A), by striking ``student aid
programs; and'' and inserting ``student financial assistance
under this title;'';
(2) by redesignating subparagraph (B) as subparagraph (D);
and
(3) by inserting after subparagraph (A) the following new
subparagraphs:
``(B) written procedures for, or written information
relating to, each office with respect to, the approval,
disbursement, and delivery of student financial assistance
under this title;
``(C)(i) a division of functions for authorizing payments
of student financial assistance under this title and the
disbursement or delivery of such assistance, so that no
office at the institution has responsibility for both
functions; and
``(ii) an adequate system of checks and balances for
internal control at the institution with respect to student
financial assistance under this title; and''.
(d) Actions on Applications.--Section 498(f) is amended--
(1) by striking ``shall conduct'' and inserting ``may
conduct'';
(2) by striking ``may establish'' and inserting ``shall
establish'';
(3) by striking ``may coordinate'' and inserting ``shall,
to the extent practicable, coordinate''; and
(4) by adding at the end the following new sentence: ``The
Secretary may exempt from the site visit requirement any
institution that is participating in the Quality Assurance
Program established under section 487A at the time such site
visit would be required under this subsection.''.
(e) Time Limitations.--Section 498(g) is amended to read as
follows:
``(g) Time Limitations.--(1) After the expiration of the
certification of any institution or upon request for initial
certification from an institution not previously certified,
the Secretary may certify the eligibility for the purposes of
any program authorized under this title of each such
institution for a period not to exceed 6 years.
``(2) The Secretary shall notify each institution of the
expiration of its eligibility no later than six months prior
to such expiration.''.
(f) Conforming Amendment.--Section 498(h)(2) is amended by
striking ``approval'' and inserting ``recognition''.
(g) Provisional Certification.--Section 498(i) is amended
by adding at the end the following new paragraph:
``(4)(A) The Secretary may provisionally certify an
institution seeking approval of a change in ownership based
on the preliminary review by the Secretary of a materially
complete application that is received by the Secretary within
10 business days of the transaction for which the approval is
sought.
``(B) A provisional certification under this paragraph
shall expire no later than the end of the month following the
month in which the transaction occurred, except that if the
Secretary has not issued a decision on the application for
the change of ownership within that period, the Secretary may
continue such provisional certification on a month-to-month
basis until such decision has been issued.''.
SEC. 479. PROGRAM REVIEW AND DATA.
(a) General Authority.--Section 498A(a) (20 U.S.C. 1099c-
1(a)) is amended--
(1) in paragraph (2)--
(A) by striking ``may give'' and inserting ``shall give'';
(B) by inserting before the semicolon at the end of
subparagraph (C) the following: ``, that are not accounted
for by changes in those programs'';
(C) in subparagraph (D), by striking ``the appropriate''
and everything that follows through ``of this part'' and
inserting ``the State licensing or authorizing agency'';
(D) by striking subparagraph (F); and
(E) by redesignating subparagraph (G) as subparagraph (F);
and
(2) in paragraph (3)(A), by inserting ``relevant'' after
``all''.
(b) Special Administrative Rules.--Section 498A(b) is
amended to read as follows:
``(b) Special Administrative Rules.--(1) In carrying out
paragraphs (1) and (2) of subsection (a), the Secretary
shall--
``(A) establish guidelines designed to ensure uniformity of
practice in the conduct of program reviews of institutions;
and
``(B) inform the appropriate State agency and accrediting
agency or association whenever taking action against an
institution under this section, section 498, or section 432.
``(2) The Secretary shall review the regulations of the
Department and the application of such regulations to ensure
the uniformity of interpretation and application of the
regulations. In conducting such review, the Secretary shall
consult with relevant representatives of institutions
participating in the programs authorized by this title.''.
The CHAIRMAN. Are there amendments to title IV?
Amendment No. 53 Offered By Mr. Petri
Mr. PETRI. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 53 offered by Mr. Petri:
Page 192, after line 10, insert the following new section
(and conform the table of contents accordingly):
SEC. 430. MARKET-BASED DETERMINATIONS OF INTEREST SUBSIDIES.
(a) Amendment.--Section 438 (20 U.S.C. 1087-1) is amended
by adding at the end the following new subsection:
``(g) Market-based Determinations of Interest Subsidies.--
``(1) Applicability.--Notwithstanding the preceding
provisions of this section, no special allowance or other
payment shall be paid under this section with respect to any
loan disbursed on or after July 1, 1999, except as provided
pursuant to this subsection.
``(2) Use of auctions to apportion lending authority.--
``(A) Auctions required.--The Secretary shall conduct an
auction in accordance with paragraph (3) to allocate the
authority to make loans under this part among eligible
lenders for any academic year. The Secretary shall estimate
the amount of lending authority that will be required by
eligible students for such an academic year, and shall by
auction allocate such amount, plus a reasonable margin for
unexpected loan demand.
``(B) Lending authority required.--A lender may not make a
loan under this part that is disbursed on or after July 1,
1999, except pursuant to an allocation of lending authority
pursuant to this paragraph.
``(C) Transferability of lending authority.--An eligible
lender may transfer any lending authority acquired pursuant
to this subsection to another eligible lender upon such terms
as may be agreed upon between such lenders, except that the
acquiring lender may not extend loans pursuant to such
authority except after notice to the Secretary in such form
and manner as the Secretary may require by regulation.
``(D) Exercise of lending authority.--The Secretary shall,
by regulation, provide for verification that a lender is not
making loans under this part in excess of the amounts of
lending authority obtained in accordance with this paragraph.
Such regulations shall provide that any lender who acquires,
directly or pursuant to subparagraph (C), lending authority
that was obtained at auction pursuant to two or more bids of
different amounts shall be deemed to exercise such authority
in descending order based on the amounts of such bids.
``(3) Conduct of auction.--
[[Page H2569]]
``(A) In general.--The Secretary shall allocate the amount
of lending authority determined under paragraph (2)(A) among
eligible lenders submitting bids in descending order by the
unit price bid, but permitting each bidding lender to acquire
such authority at the unit price bid by the next lower
ranking bid, except that the Secretary may establish by
regulation a different procedure for the conduct of the
auction if the Secretary determines that such procedure will
secure more receipts for the United States. The Secretary
shall not permit any lender to acquire more than one-third of
the amount of the lending authority offered at any auction
conducted under this subsection, but a lender shall not be
prohibited from acquiring more than such amount pursuant to
paragraph (2)(C).
``(B) Bids greater than zero.--Any lender whose bid is
accepted pursuant to subparagraph (A) shall, if such bid is
made at a unit price exceeding zero, promptly pay to the
Secretary an amount equal to (i) the unit price, multiplied
by (ii) the amount of lending authority allocated to such
lender. A lender making such a payment shall have no claim to
a refund or remuneration based on the lender making loans in
an amount that is less than the amount of lending authority
obtained.
``(C) Bids less than zero.--The Secretary shall pay to any
lender whose bid is accepted pursuant to subparagraph (A), if
such bid is made at a unit price that is less than zero, an
amount equal to--
``(i) the amount by which the unit price is less than zero,
multiplied by
``(ii) the amount of lending authority that the lender
demonstrates, in accordance with regulations prescribed by
the Secretary, has exercised by making and disbursing loans
under this part.
``(D) Contractual right of holders to special allowance.--
Any lender whose bid is accepted pursuant to subparagraph
(A), if such bid is made at a unit price that is less than
zero, shall be deemed to have a contractual right against the
United States, to receive the payment required by
subparagraph (C). Such payment shall be made promptly and
without administrative delay after receipt of an accurate and
complete request for payment, pursuant to procedures
established by regulations promulgated under this subsection.
``(E) Penalty for late payment.--If a payment required by
subparagraphs (C) and (D) has not been made within 30 days
after the Secretary has received an accurate, timely, and
complete request for payment thereof, the amount payable to
such lender shall be increased by an amount equal to the
daily interest accruing on the payments due the lender. For
such purpose, the daily interest shall be the daily
equivalent of the applicable rate of interest determined
under section 427A(a)(1).
``(4) Measures to facilitate exercise of lending
authority.--
``(A) Information.--The Secretary shall provide for the
establishment of facilities for the communication of
information that permits eligible borrowers to be informed of
the identity of, and means to contact, lenders holding
unexercised lending authority pursuant to this subsection.
``(B) Coordination.--The Secretary shall, by regulation,
coordinate the availability of loans pursuant to section
428(j) to the extent necessary--
``(i) to permit lenders to exercise the lending authority
secured pursuant to this subsection; and
``(ii) to ensure that eligible borrowers obtain loans under
this part.
``(5) Authority to prepare for program.--Notwithstanding
paragraph (1), the Secretary may, before July 1, 1999--
``(A) prescribe regulations to carry out this subsection;
and
``(B) expend funds appropriated pursuant to this part to
carry out activities necessary to the implementation of the
programs authorized by this subsection.''.
(b) Conforming Amendment.--Section 428(j)(1) (20 U.S.C.
1078(j)(1)) is amended by adding at the end the following new
sentence: ``The availability of loans under this subsection
shall be coordinated in accordance with regulations
prescribed by the Secretary under section 438(g)(5).''.
Mr. PETRI. Mr. Chairman, this amendment which I am offering along
with the gentleman from New Jersey (Mr. Andrews) would institute an
auction process to allocate to private lenders the rights to make
federally-guaranteed student loans.
Under our amendment, private lenders would submit bids to the
Secretary in a yearly auction somewhat similar to the auctions of
Treasury securities. In this way, a market mechanism would be used to
determine the payments required by banks to provide the Nation's
students with loans at reasonable interest rates.
The amendment would end the recurring battle between student groups
and lenders over the industry on student loans, which results in the
price of private sector services being set by political negotiation
without regard to the actual cost of the services.
The amendment also has the potential to save the American taxpayers
billions of dollars through competition for this profitable business.
Up to now, with the exceptions of in-school interest and the overall
interest cap, the banks have always received the same interest the
students paid on student loans.
This bill breaks that link for the first time. Under this bill, the
banks will receive one-half percent more interest than the borrowers
pay, with the American taxpayers picking up the difference on every
loan for as long as it is outstanding. That will be an administrative
monster as well as a drain on the Treasury.
Our amendment would keep the students' interest rates the same as
they are in the bill. However, the banks, depending on whether winning
bids were positive or negative, would either make a one-time payment
for the right to make blocks of loans on those terms or would receive a
one-time payment from the government to make it worth their while to
make these loans.
{time} 2145
In either case, the process would be simpler and use a market-based
price discovery mechanism.
If the banks are right that these loans are unprofitable even under
the terms provided by the bill, this process provides them an
opportunity to get better terms. I personally do not believe for a
minute that that would happen, however. I am convinced that the
competition produced by this approach will drive down by a substantial
amount the cost of these loans to the U.S. Government.
I urge all my colleagues to support this amendment.
Mr. McKEON. Mr. Chairman, will the gentleman yield?
Mr. PETRI. I yield to the gentleman from California.
Mr. McKEON. Mr. Chairman, I know the gentleman from Wisconsin has
worked very hard for many years in efforts to improve the student loan
program. I commend him for his effort on his amendment. In fact, I
agree with its general thrust.
The gentleman is correct that up to now we have tried to figure out
how much to pay the lenders for providing student loans in a political
negotiation and we in Congress really have no way of knowing what the
right price is. It would be much better if we had market process to
determine that.
I am interested in working in that direction. That is why we have a
provision in the bill to study this whole issue. In fact, I understand
there also is interest in this subject in the other body, and it could
even come up in the conference on this bill.
However, I believe that the gentleman's amendment is simply too much,
too fast. It was not offered in committee, and we simply are not ready
at this point to adopt one particular full-blown market process from
among the many alternatives in the manner the gentleman's amendment
provides.
Therefore, I would urge the gentleman to withdraw his amendment, and
I will be happy to work with him to move toward incorporating a market
mechanism in this program in the future.
Mr. KILDEE. Mr. Chairman, will the gentleman yield?
Mr. PETRI. I yield to the gentleman from Michigan.
Mr. KILDEE. Mr. Chairman, I share the views of the chairman, the
gentleman from California (Mr. McKeon). I would be very happy to work
with the gentleman to see if we can resolve this in conference, and if
the gentleman would withdraw, the three of us could work together to
see if we can resolve this.
Mr. ANDREWS. Mr. Chairman, will the gentleman yield?
Mr. PETRI. I yield to the gentleman from New Jersey.
Mr. ANDREWS. Mr. Chairman, I thank the gentleman; and I was proud to
coauthor this amendment with my friend from Wisconsin, who I would like
to acknowledge as, I think, the most knowledgeable person in the House
on the issue of student loans.
I am also pleased that the subcommittee chairman and the ranking
member have agreed they will continue to discuss with us and negotiate
with us this issue beyond conference and up through conference. I
happen to think that the debate of the last number of months proves the
validity of the underlying idea here.
[[Page H2570]]
Some of us believe that the subsidy of the guaranteed student loan
program is too high. Others believe it is too low. I think that what
this amendment says is that it is not a judgment that we should make in
this body as to whether the subsidy rate is too high or too low.
Instead, we should turn to the marketplace and let interested lenders
step forward and bid for the right to receive these government
guaranteed franchises.
This is not a new idea. It is an idea that, frankly, works in the FHA
mortgage context in much larger quantities of dollars with great
success.
The CHAIRMAN. The time of the gentleman from Wisconsin (Mr. Petri)
has expired.
(On request of Mr. Andrews, and by unanimous consent, Mr. Petri was
allowed to proceed for 1 additional minute.)
Mr. ANDREWS. If the gentleman will continue to yield, Mr. Chairman, I
would like to commend my coauthor of this amendment. I also commend the
subcommittee chairman and ranking member for their willingness to work
together with us on this.
I believe that the right answer to this conundrum, as to whether it
is too much or too little, is to turn to the marketplace and let the
marketplace answer that question for us.
Mr. PETRI. Reclaiming my time, Mr. Chairman, I thank my colleague.
And in light of the interest from Senator Kennedy and others in the
other body, and in light of the interest on both sides of the aisle in
this body in pursuing this approach and the study that is in the bill.
Mr. Chairman, I would ask unanimous consent to withdraw my amendment
at this time.
The CHAIRMAN. Is there objection to the request of the gentleman from
Wisconsin?
There was no objection.
The CHAIRMAN. The amendment is withdrawn.
Are there further amendments to title IV?
Amendment No. 54 Offered by Mr. Roemer
Mr. ROEMER. Mr. Chairman, I offer Amendment No. 54.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 54 offered by Mr. Roemer:
Page 172, after line 22, insert the following new
subsection (and redesignate the succeeding subsections
accordingly):
(c) Additional Annual Loan Limit Flexibility.
(1) In general.--Section 428H(d)(2) is amended--
(A) by striking subparagraph (C); and
(B) by inserting after subparagraph (B) the following new
subparagraphs:
``(C) notwithstanding subparagraph (A) and (B), in the case
of such a student who is pursuing a program of study at an
eligible institution leading to the baccalaureate degree--
``(i) $7,200 if such student is enrolled in a program whose
length is at least 1 academic year (as determined under
section 481);
``(ii) $4,500 if such student is enrolled in a program
whose length is less than 1 academic year, but at least \2/3\
of such an academic year; and
``(iii) $2,700 if such student is enrolled in a program
whose length is less than \2/3\, but at least \1/3\, of such
an academic year;
``(D) in the case of such a student who is a graduate or
professional student enrolled at an eligible institution, an
amount not to exceed the student's estimated cost of
attendance (as determined under section 472), less the sum
of--
``(i) any loan for which the student is eligible under
section 428; and
``(ii) an estimate of any financial assistance reasonably
available to such student.''.
(2) Dependent students amendment.--Section 428H(d) is
amended--
(A) by redesignating paragraph (3) as paragraph (4); and
(B) by inserting after paragraph (2) the following new
paragraph:
``(3) Annual limits for dependent students.--
Notwithstanding paragraph (2), in the case of a dependent
student who is enrolled in a program leading to the
baccalaureate degree whose length is at least 1 academic year
(as determined under section 481), the maximum annual amount
of loans under this section such a student may borrow in any
academic year or its equivalent or in any period of 7
consecutive months, whichever is longer, shall be the amount
determined under paragraph (1) plus $1,500.''
Mr. ROEMER. Mr. Chairman, as we moved into hearings on this very
important bipartisan higher education bill, what we heard both in
Washington, D.C., and in field hearings in Indiana and across the
country was the resounding call for more flexibility, not more mandates
upon our institutions of higher education, and trying to do things to
reduce the cost and the debt to students as they come out of college.
This amendment, the loan flexibility amendment, achieves both of
those objectives. It tries to provide more flexibility to our schools
and to our students. It also enhances the ability to combine the loan
programs and give the students a reduced rate. This amendment would
retain the aggregate loan limits while giving students greater
borrowing flexibility under the Federal student loan programs.
In the subsidized loan program, student lending has both aggregate
and annual loan limits. The annual loan limit forces many students into
the more expensive private loan market. This amendment would apply only
to unsubsidized loans for students at 4 year degree granting
institutions and would not change the total amount students may borrow
in the Federal programs under current law. Therefore, students will not
be incurring additional debt.
We have tried to work an agreement out with the Democrat and
Republican side on this amendment from the full committee.
This amendment would retain the aggregate loan limits, while giving
students greater borrowing flexibility under the federal student loan
programs.
In the subsidized loan program, student lending has both aggregate
and annual loan limits. The annual loan limits force many students into
the more expensive private loan market.
This amendment would apply only to unsubsidized loans for students at
four-year, degree-granting institutions, and would not change the total
amount students may borrow in the federal programs under current law--
therefore, students will not be incurring additional debt.
The amendment has three parts, which apply respectively to dependent
undergraduate students, independent undergraduates, and graduate
students.
Dependent Undergraduates--Currently dependent undergraduates may
borrow unsubsidized loans only under limited circumstances, forcing
them into private loan programs with uncapped interest rates. This
amendment would permit full-time dependent undergraduates to borrow up
to $1500 a year in unsubsidized loans in addition to the subsidized
loans they may borrow under current law--but the combined total of
subsidized and unsubsidized borrowing could not exceed the existing
undergraduate maximum of $2300.
Independent Undergraduates--Currently independent undergraduates are
limited to $4000 in unsubsidized maximums for their freshman and
sophomore years, and $5000 for their junior and senior years, forcing
them into private loan programs to make up the difference. Independent
undergraduates would be permitted to borrow up to $7200 per year in
unsubsidized loans, which again keeps total borrowing under the
existing cumulative limits.
Graduate Students--Under current law, graduate students may borrow
$8500 in subsidized loans and $10,000 in unsubsidized loans per year,
meaning that amounts over those limits must be borrowed from private
programs. Graduate students would be permitted to borrow unsubsidized
loans up to the cost of attendance minus subsidized loans and other
aid, provided that there is no change to the cumulative amounts
graduate students are permitted to borrow under current law.
Mr. GOODLING. Mr. Chairman, I move to strike the last word.
We are willing to accept the amendment with the understanding that we
will have a rollcall vote on it; and so if we find out tomorrow that it
does cost money, then, of course, we would have to have that vote. But
we would accept it tonight with the understanding that I will call for
a rollcall vote.
Mr. ROEMER. Mr. Chairman, will the gentleman yield?
Mr. GOODLING. I yield to the gentleman from Indiana.
Mr. ROEMER. Mr. Chairman, I wish to, first of all, I want to
compliment the chairman on his willingness when I offered this
amendment in committee to continue to work with me and my staff to try
to perfect this amendment, to make sure that we attain the goals of
flexibility and reduce costs to the students and, therefore, reduced
debt to the students. We have worked with the gentleman, and I want to
compliment the gentleman and his staff for working through those
issues.
We are hopeful that this will not be costed by CBO. We are also
hopeful that we will not have a vote on this and that the gentleman
will accept it and that we may not have a rollcall vote.
We also would prefer, if we could, in the morning, once we get CBO to
score
[[Page H2571]]
it, if in fact there is a way that we can continue to have the
gentleman support this amendment and further perfect it in conference,
we would maintain that flexibility as well.
Mr. GOODLING. Mr. Chairman, reclaiming my time, we would be happy to
continue to work as we go into conference. It is just, I think,
necessary to say that we would have a rollcall vote even though we
would accept it, to see whether or not there is a cost involved.
Mr. ROEMER. Mr. Chairman, if the gentleman will continue to yield, we
would be happy to work with the chairman. We appreciate all his
expertise and help up to this point, and I am happy with the Chairman's
acceptance of the amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Indiana (Mr. Roemer).
The question was taken; and the Chairman announced that the ayes
appeared to have it.
Mr. GOODLING. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN. Pursuant to House Resolution 411, further proceedings
on the amendment offered by the gentleman from Indiana (Mr. Roemer)
will be postponed.
Are there further amendments to title IV?
Amendment No. 33, as Modified, Offered by Mrs. Kelly
Mrs. KELLY. Mr. Chairman, I offer Amendment No. 33, and I ask
unanimous consent that the amendment I have submitted at the desk be
considered as a substitute to the amendment I had preprinted in the
Congressional Record.
The text of Amendment No. 33 is as follows:
Page 128, line 12, strike the close quotation marks and
following period and after such line insert the following new
chapter:
``CHAPTER 6--PUBLIC SAFETY OFFICER MEMORIAL SCHOLARSHIPS.
``SEC. 411A. SCHOLARSHIPS AUTHORIZED.
``(a) In General.--
``(1) Scholarship awards.--The Secretary is authorized to
award a scholarship to any eligible applicant who is
enrolled, or has been accepted for enrollment, in an eligible
institution as a full-time or part-time postsecondary level
student.
``(2) Application.--To receive a scholarship award under
this chapter, each eligible applicant shall submit an
application to the Secretary in such time and manner as may
be determined appropriate by the Secretary, accompanied by a
certification from the head of the agency that employed the
public safety officer to whom the applicant was married (in
the case of a surviving spouse), or with whom the applicant
was living or from whom the applicant was receiving support
contributions (in the case of a dependent child), stating
that such officer died as a result of the performance of the
officer's official duties.
``(b) Maximum Award.--For any academic year, the maximum
amount of a scholarship award under this section for a
postsecondary student may equal, but not exceed, the lesser
of the following:
``(1) The average cost of attendance (as defined in section
472), at a State university in the State in which the student
resides, for a State resident carrying the same academic
workload as the student, with the same number of dependents
as the student, and residing in the same type of housing as
the student.
``(2) The actual cost of attendance (as defined in section
472) of such student.
``(c) Award Period.--The duration of each award under this
chapter for a postsecondary student, shall be the lesser of--
``(1) the time actually required by the student to complete
a course of study and obtain a diploma; and
``(2) 6 years in the case of a student engaged in
undergraduate studies and 3 years in the case of a student
engaged in postgraduate studies.
``(d) Notification.--The Secretary shall notify the
recipient and the eligible institution of the applicant's
selection for receipt of an award under this chapter, the
conditions pertaining to award eligibility and continuance.
``(e) Fiscal Agent.--The Secretary shall, if practicable,
use the eligible institution as fiscal agent for payment of
an award.
``SEC. 411B. ADDITIONAL AWARD REQUIREMENTS.
``A student awarded a scholarship grant under this chapter,
as a condition for initial receipt of such award and
periodically thereafter as a condition for its continuation,
shall demonstrate to the satisfaction of the Secretary that
the student is--
``(1) maintaining satisfactory progress in the course of
study the student is pursuing consistent with section 484(c);
``(2) committed to remaining drug-free; and
``(3) attending class on a regular basis as to not
interfere with normal course of studies except for excused
absence for vacation, illness, military service and such
other periods deemed good cause by the eligible institution
or the Secretary.
``SEC. 411C. AGREEMENTS WITH ELIGIBLE INSTITUTIONS.
``For the purposes of this chapter, the Secretary is
authorized to enter into agreements with eligible
institutions in which any student receiving a scholarship
award under this chapter has enrolled or has been accepted
for enrollment. Each such agreement shall--
``(1) provide that an eligible institution will cooperate
with the Secretary in carrying out the provisions of this
chapter, including the provision of information necessary for
a student to satisfy the requirements in section 411B;
``(2) provide that the institution will conduct a periodic
review to determine whether students enrolled and receiving
scholarship awards continue to be entitled to payments under
this chapter and will notify the Secretary of the results of
such reviews; and
``(3) provide for control and accounting procedures as may
be necessary to assure proper disbursements and accounting of
funds paid under to the institution under section 411A(e).
``SEC. 411D. DEFINITIONS.
``In this chapter:
``(1) Dependent child.--The term `dependent child' means a
child who is either living with or receiving regular support
contributions from a public safety officer at the time of the
officer's death, including a stepchild or an adopted child.
``(2) Eligible applicant.--The term `eligible applicant'
means a person residing in a State who is--
``(A) a surviving spouse; or
``(B) a dependent child.
``(3) Eligible institution.--The term `eligible
institution' means an eligible institution as defined in
section 435(a) that--
``(A) is located in a State; and
``(B) complies with the antidiscrimination provisions of
section 601 of the Civil Rights Act of 1964 and does not
discriminate on the basis of race.
``(4) Public safety officer.--The term `public safety
officer' means a person serving a public agency of a State or
of a unit of general local government, with or without
compensation, as--
``(A) a law enforcement officer, including a corrections or
a court officer engaged in--
``(i) apprehending or attempting to apprehend of any
person--
``(I) for the commission of a criminal act; or
``(II) who at the time was sought as a material witness in
a criminal proceeding; or
``(ii) protecting or guarding a person held for the
commission of a criminal act, or held as a material witness
in connection with a criminal act; or
``(iii) lawfully preventing of, or lawfully attempting to
prevent the commission of, a criminal act or an apparent
criminal act in the performance of his official duty; or
``(B) a firefighter.
``(5) Surviving spouse.--The term `surviving spouse' means
the legally married husband or wife of a public safety
officer at the time of the officer's death.
``(6) Unit of general local government.--The term `unit of
general local government' means any city, county, township,
town, borough, parish, village, or any other general purpose
subdivision of a State, or any Indian tribe which the
Secretary of the Interior determines performs law enforcement
functions.''
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:
Amendment No. 33, as modified, offered by Mrs. Kelly:
Page 128, line 12, strike the close quotation marks and
following period and after such line insert the following new
chapter:
``CHAPTER 6--PUBLIC SAFETY OFFICER MEMORIAL SCHOLARSHIPS.
``SEC. 411A.. SCHOLARSHIPS AUTHORIZED.
``(a) In General.--
``(1) Scholarship awards.--The Secretary is authorized to
award a scholarship to any eligible applicant who is
enrolled, or has been accepted for enrollment, in an eligible
institution as a full-time or part-time postsecondary level
student.
``(2) Application.--To receive a scholarship award under
this chapter, each eligible applicant shall submit an
application to the Secretary in such time and manner as may
be determined appropriate by the Secretary--
``(A) accompanied by a certification from the head of the
agency that employed the public safety officer to whom the
applicant was married (in the case of a surviving spouse), or
with whom the applicant was living or from whom the applicant
was receiving support contributions (in the case of a
dependent child), stating that such officer died as a result
of the performance of the officer's official duties; and
``(B) demonstrating the applicant's need for financial aid
under part F of this title, determined without regard to any
assets derived from death benefits for such officer, to
pursue a program of postsecondary education.
``(b) Maximum Award.--For any academic year, the maximum
amount of a scholarship award under this section for a
postsecondary student may equal, but not exceed, the lesser
of the following:
``(1) The average cost of attendance (as defined in section
472), at a State university in the State in which the student
resides, for a State resident carrying the same academic
[[Page H2572]]
workload as the student, with the same number of dependents
as the student, and residing in the same type of housing as
the student.
``(2) The actual cost of attendance (as defined in section
472) of such student.
``(c) Award Period.--The duration of each award under this
chapter for a postsecondary student, shall be the lesser of--
``(1) the time actually required by the student to complete
a course of study and obtain a diploma; and
``(2) 6 years in the case of a student engaged in
undergraduate studies and 3 years in the case of a student
engaged in postgraduate studies.
``(d) Notification.--The Secretary shall notify the
recipient and the eligible institution of the applicant's
selection for receipt of an award under this chapter, the
conditions pertaining to award eligibility and continuance.
``(e) Fiscal Agent.--The Secretary shall, if practicable,
use the eligible institution as fiscal agent for payment of
an award.
``SEC. 411B. ADDITIONAL AWARD REQUIREMENTS.
``A student awarded a scholarship grant under this chapter,
as a condition for initial receipt of such award and
periodically thereafter as a condition for its continuation,
shall demonstrate to the satisfaction of the Secretary that
the student is--
``(1) maintaining satisfactory progress in the course of
study the student is pursuing consistent with section 484(c);
``(2) committed to remaining drug-free; and
``(3) attending class on a regular basis as to not
interfere with normal course of studies except for excused
absence for vacation, illness, military service and such
other periods deemed good cause by the eligible institution
or the Secretary.
``SEC. 411C. AGREEMENTS WITH ELIGIBLE INSTITUTIONS.
``For the purposes of this chapter, the Secretary is
authorized to enter into agreements with eligible
institutions in which any student receiving a scholarship
award under this chapter has enrolled or has been accepted
for enrollment. Each such agreement shall--
``(1) provide that an eligible institution will cooperate
with the Secretary in carrying out the provisions of this
chapter, including the provision of information necessary for
a student to satisfy the requirements in section 411B;
``(2) provide that the institution will conduct a periodic
review to determine whether students enrolled and receiving
scholarship awards continue to be entitled to payments under
this chapter and will notify the Secretary of the results of
such reviews; and
``(3) provide for control and accounting procedures as may
be necessary to assure proper disbursements and accounting of
funds paid under to the institution under section 411A(e).
``SEC. 411D. DEFINITIONS.
``In this chapter:
``(1) Dependent child.--The term `dependent child'' means a
child who is either living with or receiving regular support
contributions from a public safety officer at the time of the
officer's death, including a stepchild or an adopted child.
``(2) Eligible applicant.--The term `eligible applicant''
means a person residing in a State who is--
``(A) a surviving spouse; or
``(B) a dependent child.
``(3) Eligible institution.--The term `eligible
institution' means an eligible institution as defined in
section 435(a) that--
``(A) is located in a State; and
``(B) complies with the antidiscrimination provisions of
section 601 of the Civil Rights Act of 1964 and does not
discriminate on the basis of race.
``(4) Public safety officer.--The term `public safety
officer'' means a person serving a public agency of a State
or of a unit of general local government, with or without
compensation, as--
``(A) a law enforcement officer, including a corrections or
a court officer engaged in--
``(i) apprehending or attempting to apprehend of any
person--
``(I) for the commission of a criminal act; or
``(II) who at the time was sought as a material witness in
a criminal proceeding; or
``(ii) protecting or guarding a person held for the
commission of a criminal act, or held as a material witness
in connection with a criminal act; or
``(iii) lawfully preventing of, or lawfully attempting to
prevent the commission of, a criminal act or an apparent
criminal act in the performance of his official duty; or
``(B) a firefighter.
``(5) Surviving spouse.--The term `surviving spouse'' means
the legally married husband or wife of a public safety
officer at the time of the officer's death.
``(6) Unit of general local government.--The term `unit of
general local government'' means any city, county, township,
town, borough, parish, village, or any other general purpose
subdivision of a State, or any Indian tribe which the
Secretary of the Interior determines performs law enforcement
functions.''.
Mrs. KELLY (during the reading). Mr. Chairman, I ask unanimous
consent that the amendment, as modified, be considered as read and
printed in the Record.
The CHAIRMAN. Is there objection to the request of the gentlewoman
from New York?
There was no objection.
The CHAIRMAN. Is there objection to the modification offered by the
gentlewoman from New York?
There was no objection.
The CHAIRMAN. The modification is accepted.
Mrs. KELLY. Mr. Chairman, I rise today to introduce an amendment that
provides needed assistance to the family members of public safety
officers who are killed in the line of duty.
Police officers and firefighters lay their lives on the lines on a
daily basis, Mr. Chairman, and, sadly, all too often they make the
ultimate sacrifice in their service of their communities.
This tragic fact was illustrated most recently in my district in New
York when a volunteer firefighter, Michael Neuner, who was also a
police officer, was killed last summer while fighting a fire in the
town of Southeast.
This unfortunate story is repeated around the country, Mr. Chairman.
These are our friends, our neighbors, our loved ones, and they leave
behind families who must continue on. The death of a father or mother
takes an obvious emotional toll, but it has an impact on the financial
security of the family, particularly when it comes to meeting
educational expenses.
Oftentimes, for the sake of putting food on the table and a roof over
their family's heads, a single parent who has lost their spouse will
forsake providing for their children's education for the sake of
survival. We can prevent this phenomenon by passing the amendment
before us today.
This amendment seeks to address this particular problem.
Specifically, the bill authorizes the Secretary of Education to award
education scholarships to the spouse or dependent child of a public
safety officer, police, firefighter or corrections officer who is
killed in the line of duty. These scholarships may be used to cover
education expenses to attend a postsecondary institution as a full-time
or part-time student.
This version of my amendment differs from the original preprinted
version because it makes these scholarships need-based and extracts
from the calculation of that need any death benefits received by the
family on account of the officer's death.
The last Congress adopted similar legislation to award education
assistance to family members of Federal law enforcement officers killed
in the line of duty. I was pleased to support that legislation, which
passed both the House and the Senate by voice votes and was signed into
law by President Clinton. I am proud to introduce this amendment, which
takes the next logical step and extends this benefit to the families of
all public safety officers who are killed while serving their
communities.
Crime is a reality in our Nation, and we should acknowledge those
brave and dedicated people who devote their careers to fighting crime
in our neighborhoods. Our public safety officers deserve our respect,
gratitude and support. I urge my colleagues to join me in support of
this important amendment.
Mr. FOX of Pennsylvania. Mr. Chairman, I move to strike the last
word.
Mr. Chairman, I join the gentlewoman from New York (Mrs. Kelly) in
this outstanding amendment. We have an outstanding bill here, but this
amendment also makes it better.
To establish a memorial scholarship program, to assist families of
State and local public safety officials, law enforcement officers and
firefighters who are killed in the line of duty with educational
assistance is certainly an all-American ideal and an all-American idea.
I worked with the gentlewoman from New York last year on the bill for
the Federal officers along with Senator Specter of Pennsylvania. That
was inspired, of course, by the Federal officer, Marshal Degan, who
died at Ruby Ridge, as well as an officer in my district, Chuck Reed,
who was the first Federal officer at the FBI ever killed out of the
Philadelphia office.
The fact is, these people do put their lives on the line everyday.
When they leave their family, they do not know whether they will come
back. And the fact is, their families have to go on, hopefully as well
as they can to try to make a whole life while knowing that their spouse
has sacrificed greatly to keep our communities safe, free of
[[Page H2573]]
crime and also free of the fire tragedies that can occur.
{time} 2200
And so, by establishing this memorial scholarship, the gentlewoman
from New York (Mrs. Kelly) is leading the fight for us across America
in making sure that our communities, while they remain safe, will also
make sure we remember the families.
So I rise, Mr. Speaker, and other Members of the House on both sides
of the aisle, this is a truly a bipartisan idea for a bipartisan bill,
and I look for unanimous adoption here in the House and an eventual
adoption into law.
Mr. McKEON. Mr. Chairman, I move to strike the requisite number of
words.
I want to congratulate the gentlewoman from New York (Mrs. Kelly) for
her amendment. It is very commendable to want to provide assistance to
the sons and daughters of public safety officers who died as a result
of the performance of their official duties.
The awards made under this program will be need-based, so the money
will be going to a student who has financial need as determined under
the Higher Education Act. I would support this amendment.
Mr. KILDEE. Mr. Chairman, I move to strike the requisite number of
words.
Mr. Chairman, as one who has seen too many police and firefighters
and correction officers in my own district killed in the line of duty,
I commend the gentlewoman from New York (Mrs. Kelly) for her amendment.
I think it is a very good amendment, and we accept it on this side.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from New York (Mrs. Kelly), as modified.
The amendment, as modified, was agreed to.
The CHAIRMAN. Are there other amendments to title IV?
Amendment No. 11 Offered by Mr. Allen
Mr. ALLEN. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 11 Offered by Mr. Allen:
Page 267, after line 11, insert the following new
subsection (and redesignate the succeeding subsections
accordingly):
(d) Financial Responsibility for Refunds and During
Provisional Certification.--
(1) Amendment.--Section 498(e) is amended by adding at the
end the following new paragraphs:
``(6) Notwithstanding any other provision of law, any
person required to pay, on behalf of a student or borrower, a
refund of unearned institutional charges to a lender, or the
Secretary, who willfully fails to pay such refund or
willfully attempts in any manner to evade payment of such
refund, shall, in addition to other penalties provided by
law, be liable to the Secretary for the amount of the refund
not paid, to the same extent with respect to such refund that
such an individual would be liable as a responsible person
for a penalty under section 6672(a) of title 26, United
States Code, with respect to the nonpayment of taxes.
``(7) Notwithstanding any other provision of law, a
proprietary institution of higher education, as defined in
section 481(b), may be provisionally certified under
subsection (h) only if it provides the Secretary with
financial guarantees from one or more individuals whom the
Secretary determines, in accordance with subsection (e)(2),
exercise substantial control over such institution. Such
financial guarantees shall be in addition to any financial
guarantees otherwise required from the institution and shall
be in an amount determined by the Secretary to be sufficient
to satisfy the institution's potential liability to the
Federal Government, student assistance recipients, and other
program participants for funds under this title during the
period of provisional certification.''.
(2) Effective date.--The amendments made by paragraph (1)--
(A) relating to responsibility for unpaid refunds, shall be
effective with respect to any unpaid refunds that were first
required to be paid to a lender or to the Secretary on or
after 90 days after the date of enactment of this Act;
(B) relating to financial guarantees required for
provisional certification, shall be effective with respect to
any proprietary institution of higher education provisionally
certified by the Secretary on or after the date of enactment
of this Act.
Page 269, after line 4, insert the following new
subsection:
(i) Change in Status.--
(1) Amendment.--Section 498(i)(2) is amended by striking
subparagraph (E) and inserting the following new
subparagraph:
``(E) the change in tax filing status of an institution
from for-profit to non-profit; or''.
(2) Effective date.--The amendment made by paragraph (1)
shall be effective on the date of the enactment of this Act.
Modification To Amendment No. 11 Offered By Mr. Allen
Mr. ALLEN. Mr. Chairman, I ask unanimous consent that the amendment
be modified in the form at the desk.
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:
Amendment No. 11, as modified, offered by Mr. Allen:
Page 267, after line 11, insert the following new
subsection (and redesignate the succeeding subsections
accordingly):
(d) Financial Responsibility for Refunds and During
Provisional Certification.--
(1) Amendment.--Section 498(e) is amended by adding at the
end the following new paragraph:
``(6) Notwithstanding any other provision of law, any
person required to pay, on behalf of a student or borrower, a
refund of unearned institutional charges to a lender, or the
Secretary, who willfully fails to pay such refund or
willfully attempts in any manner to evade payment of such
refund, shall, in addition to other penalties provided by
law, be liable to the Secretary for the amount of the refund
not paid, to the same extent with respect to such refund that
such an individual would be liable as a responsible person
for a penalty under section 6672(a) of title 26, United
States Code, with respect to the nonpayment of taxes.''.
(2) Effective date.--The amendments made by paragraph (1)
shall be effective with respect to any unpaid refunds that
were first required to be paid to a lender or to the
Secretary on or after 90 days after the date of enactment of
this Act.
Mr. ALLEN (during the reading). Mr. Chairman, I ask unanimous consent
that the amendment, as modified, be considered as read and printed in
the Record.
The CHAIRMAN. Is there objection to the request of the gentleman from
Maine?
There was no objection.
The CHAIRMAN. Without objection, the modification is agreed to.
There was no objection.
The CHAIRMAN. The gentleman from Maine (Mr. Allen) is recognized for
5 minutes.
Mr. ALLEN. Mr. Chairman, I wanted to thank the chairman and ranking
member of the subcommittee and chairman and ranking member of the full
committee and say that the modified version of my amendment removes the
requirement of financial guarantees from prospective owners of for-
profit educational institutions during provisional certification.
The modified amendment maintains the provisions which ensure that
owners of higher education institutions may be held liable for
repayment of funds that taxpayers intended for eligible students.
In Maine, students and families are owed hundreds of thousands of
dollars in refunds by owners of for-profit institutions which have been
closed down due to mismanagement. An owner of one such institution has
been able to move his business to another State and continue to draw
Federal financial aid dollars.
This situation is not peculiar to Maine. Students and families all
over the country are owed money by owners of schools that have failed.
I have been told by the Inspector General's Office that between 85 and
95 percent of their open cases concerning for-profit institutions
involve student loan refund problems.
Students should be able to attend an educational institution and
trust that their tuition and financial aid dollars are being handled
properly. When this is not the case, the Secretary should have the
power to impose appropriate sanctions not only against the institution
involved, but also against the owner of the institution.
My amendment will solidify the Secretary's power to hold the
institution of a proprietary higher education institution liable for
financial losses to the Federal Government and student loan recipients.
Presently, the Secretary has only been able to seek recourse from
institutions, not their owners; however, many such institutions are
bankrupt, so no money is recovered.
My amendment provides the Secretary with a mechanism to collect the
funds. It does so by holding the owner liable in the same way that an
individual would be responsible for penalties for the nonpayment of
taxes. Taxpayer dollars must be protected to ensure the continued
availability and viability of student financial aid programs.
I urge my colleagues to accept this amendment, support this
amendment.
[[Page H2574]]
Mr. McKEON. Mr. Chairman, I move to strike the last word.
Again, the gentleman from Maine (Mr. Allen) is not a member of the
committee, but has added a good, thoughtful amendment, and I would
support that amendment.
Mr. ANDREWS. Mr. Chairman, I move to strike the requisite number of
words.
I rise in support of the amendment of the gentleman from Maine. I
would like to make a couple comments about it. First of all, I thank
him for his modification. I think it is very important that we continue
the custom and tradition in this bill of treating all schools on a
level playing field, not singling out any category of higher education
for special favored or disfavored treatment. I think the gentleman has
remained consistent with that tradition by making the modification to
this amendment. I appreciate that.
I would like to point out one concern that I have, for the Record,
which I would hope that we would address at conference with the
gentleman's participation, and that is clearing up any ambiguity about
the definition of the word ``person'' in what is subparagraph 6 of his
amendment, where it says, ``Any person required to pay, on behalf of a
student or borrower, a refund shall, in addition to other penalties
provided by law, be liable to the Secretary for the amount of the
refund not paid.''
I think it is very important that we be clear as to who the person
is, for the following reasons: If the institution that is on the hook
for this is a community college, let us say we want to be very clear
that the comptroller of the community college will not be personally
liable for this obligation unless he or she committed some kind of
crime.
I am sure that is not the intent of the gentleman. The same would be
true of a for-profit school if an individual is not financially
involved, but the corporation for which the individual is. And I would
hope that we would have the cooperation of the gentleman in resolving
those matters as we proceed.
Mr. ALLEN. Mr. Chairman, will the gentleman yield?
Mr. ANDREWS. I yield to the gentleman from Maine.
Mr. ALLEN. Mr. Chairman, I am happy to work through those issues with
my colleague. It is certainly not our intent to hold the comptroller of
any institution liable. We have felt that this amendment would apply
only to for-profit institutions and not to any public universities or
nonprofits. But if it is written in a way to apply to everyone, it
should only apply to those who are owners in the sense that they own
stock in the institution. That is the intention.
Mr. ANDREWS. Reclaiming my time, I again understand that this is
designed to keep the same level playing field we have always had on
that basis, and with that reservation, I will be happy to support the
amendment of the gentleman.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Maine (Mr. Allen), as modified.
The amendment, as modified, was agreed to.
The CHAIRMAN. Are there further amendments to title IV?
Amendment No. 7 Offered by Mr. Lazio of New York
Mr. LAZIO of New York. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 7 offered by Mr. Lazio of New York:
Page 192, after line 10, insert the following new section
(and conform the table of contents accordingly):
SEC. 430. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
(a) Purpose.--It is the purpose of this section--
(1) to bring more highly trained individuals into the early
child care profession; and
(2) to keep more highly trained child care providers in the
early child care field for longer periods of time.
(b) Loan Forgiveness for Child Care Providers.--Part B (20
U.S.C. 1071 et seq.) is amended by inserting after section
428J (as added by section 432) (20 U.S.C. 1078-10) the
following:
``SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
``(a) Definitions.--In this section:
``(1) Child care facility.--The term `child care facility'
means a facility, including a home, that--
``(A) provides child care services; and
``(B) meets applicable State or local government licensing,
certification, approval, or registration requirements, if
any.
``(2) Child care services.--The term `child care services'
means activities and services provided for the education and
care of children from birth through age 5 by an individual
who has a degree in early childhood education.
``(3) Degree.--The term `degree' means an associate's or
bachelor's degree awarded by an institution of higher
education.
``(4) Early childhood education.--The term `early childhood
education' means education in the areas of early child
education, child care, or any other educational area related
to child care that the Secretary determines appropriate.
``(b) Demonstration Program.--
``(1) In general.--The Secretary may carry out a
demonstration program of assuming the obligation to repay,
pursuant to subsection (c), a loan made, insured or
guaranteed under this part or part D (excluding loans made
under sections 428B and 428C) for any new borrower after the
date of enactment of the Higher Education Amendments of 1998,
who--
``(A) completes a degree in early childhood education; and
``(B) obtains employment in a child care facility.
``(2) Award basis; priority.--
``(A) Award basis.--Subject to subparagraph (B), loan
repayment under this section shall be on a first-come, first-
served basis and subject to the availability of
appropriations.
``(B) Priority.--The Secretary shall give priority in
providing loan repayment under this section for a fiscal year
to student borrowers who received loan repayment under this
section for the preceding fiscal year.
``(3) Regulations.--The Secretary is authorized to
prescribe such regulations as may be necessary to carry out
the provisions of this section.
``(c) Loan Repayment.--
``(1) In general.--The Secretary shall assume the
obligation to repay--
``(A) after the second year of employment described in
subparagraphs (B) and (C) of subsection (b)(1), 20 percent of
the total amount of all loans made after date of enactment of
the Higher Education Amendments of 1998, to a student under
this part or part D;
``(B) after the third year of such employment, 20 percent
of the total amount of all such loans; and
``(C) after each of the fourth and fifth years of such
employment, 30 percent of the total amount of all such loans.
``(2) Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a
loan made under this part or part D.
``(3) Interest.--If a portion of a loan is repaid by the
Secretary under this section for any year, the proportionate
amount of interest on such loan which accrues for such year
shall be repaid by the Secretary.
``(4) Special rule.--In the case where a student borrower
who is not participating in loan repayment pursuant to this
section returns to an institution of higher education after
graduation from an institution of higher education for the
purpose of obtaining a degree in early childhood education,
the Secretary is authorized to assume the obligation to repay
the total amount of loans made under this part or part D
incurred for a maximum of two academic years in returning to
an institution of higher education for the purpose of
obtaining a degree in early childhood education. Such loans
shall only be repaid for borrowers who qualify for loan
repayment pursuant to the provisions of this section, and
shall be repaid in accordance with the provisions of
paragraph (1).
``(5) Ineligibility of national service award recipients.--
No student borrower may, for the same volunteer service,
receive a benefit under both this section and subtitle D of
title I of the National and Community Service Act of 1990 (42
U.S.C. 12601 et seq.).
``(d) Repayment to Eligible Lenders.--The Secretary shall
pay to each eligible lender or holder for each fiscal year an
amount equal to the aggregate amount of loans which are
subject to repayment pursuant to this section for such year.
``(e) Application for Repayment.--
``(1) In general.--Each eligible individual desiring loan
repayment under this section shall submit a complete and
accurate application to the Secretary at such time, in such
manner, and containing such information as the Secretary may
require.
``(2) Conditions.--An eligible individual may apply for
loan repayment under this section after completing each year
of qualifying employment. The borrower shall receive
forbearance while engaged in qualifying employment unless the
borrower is in deferment while so engaged.
``(f) Evaluation.--
``(1) In general.--The Secretary shall conduct, by grant or
contract, an independent national evaluation of the impact of
the demonstration program assisted under this section on the
field of early childhood education.
``(2) Competitive basis.--The grant or contract described
in subsection (a) shall be awarded on a competitive basis.
``(3) Contents.--The evaluation described in this
subsection shall--
[[Page H2575]]
``(A) determine the number of individuals who were
encouraged by the demonstration program assisted under this
section to pursue early childhood education;
``(B) determine the number of individuals who remain
employed in a child care facility as a result of
participation in the program;
``(C) identify the barriers to the effectiveness of the
program;
``(D) assess the cost-effectiveness of the program in
improving the quality of--
``(i) early childhood education; and
``(ii) child care services;
``(E) identify the reasons why participants in the program
have chosen to take part in the program;
``(F) identify the number of individuals participating in
the program who received an associate's degree and the number
of such individuals who received a bachelor's degree; and
``(G) identify the number of years each individual
participates in the program.
``(4) Interim and final evaluation reports.--The Secretary
shall prepare and submit to the President and the Congress
such interim reports regarding the evaluation described in
this subsection as the Secretary deems appropriate, and shall
prepare and so submit a final report regarding the evaluation
by January 1, 2002.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$10,000,000 for fiscal year 1999, and such sums as may be
necessary for each of the 4 succeeding fiscal years.''.
Mr. LAZIO of New York. Mr. Speaker, the Lazio-Gilman-Tauscher
amendment will address a matter of dire importance to American
families, the need for high-quality child care.
As a parent of two, I know how difficult it is to leave our children
in the care of others. While most of us agree that a parent would
provide the best care for a young child, many of our young families
simply do not have the option of doing so. Today in America, more and
more parents work outside the home. In fact, 62 percent of moms with
children under 6 are in the work force. While we fight to reduce the
tax burden that forces families into this economic situation, we need
to assure the parents who must work that their children will be taken
care of by qualified, competent individuals.
We know that parents want the best for their children. They want to
know that if their children cannot be at home, they are in a healthy
and nurturing environment. Today, 13 million children under the age of
6 are in child care programs. For these children the care and attention
that they receive from child care staff is critical. When children have
stable and caring educators, they feel secure and are ready to learn.
A study by the National Institutes of Health shows that staff-child
ratio and teacher education contribute to the quality of a child care
program. Children in quality facilities have fewer behavioral problems,
stronger language ability, and a higher level of school readiness.
Unfortunately, because of high staff turnover and low staff salary,
quality is something many child care programs lack.
The NIH report shows that a low staff-child care ratio clearly
benefits children. In fact, an article from Monday's New York Times
highlights this very issue at a child care center in Houston. According
to the article, workers at facilities with fewer adults see their role
more as managing children than in interacting with them. Staff in these
Houston centers do not have the time to engage the children who are
playing or attend to babies unless they need immediate attention.
Despite these findings, we have seen the average ratio of children to
caregivers increase considerably from 6.8 to 8.5 children per worker
between 1976 and 1990.
Mr. Speaker, as more parents return to work, we can expect the number
of children in child care to increase. In order to provide our children
with quality care, we must have more caregivers per child. Bringing
more well-educated, dedicated early child care graduates into the field
would help alleviate the problem.
Most students who choose a child care career want the best for
children and value the care and education they can provide for each
child. However, child care professionals are paid on average about
$6.90 per hour and receive few, if any, benefits. For students
graduating with $12,000 to $15,000 in college loans, and many more than
that, there is very little incentive to stay in the profession.
As a result, Mr. Speaker, many of the country's best qualified early
education graduates either do not enter or do not remain in the field.
In fact, the turnover rate for child care workers is four times higher
than for their counterparts in the public schools.
As large numbers of the early childhood work force consider leaving
their positions, we have the opportunity to offer a modest yet
meaningful incentive to the most qualified staff members who stay in
the field, loan forgiveness. Our amendment would offer student loan
forgiveness to individuals who earn a degree in early child education
and work in a licensed child care facility, including a home-based
child care center.
In order to maintain stability in the industry, my amendment would
provide an incentive to enter and remain in the child care field. After
the second and third year of service, a child care worker would be
eligible to receive 20 percent loan forgiveness. After the fourth and
fifth years, the child care provider would qualify for 30 percent loan
forgiveness.
In order to ensure efficiency at the end of this 5-year demonstration
program, the Secretary of Education would publish a report on the
initiative. Rather than create an enormous mandatory spending program
to address the need for quality child care, this amendment offers a
focused, reasonable approach to resolving the problem.
By offering loan forgiveness to child care staff, we can begin to
recruit and maintain a more qualified work force. An early child care
work force composed of staff with specialized knowledge about young
children and how they learn and grow will significantly increase the
quality of care in this country. We can expect these graduates to be
effective teachers who provide meaningful learning experiences during
the most critical period of a child's development.
Of course, parents carry the major responsibility for their children.
Part of this responsibility for parents who must work is finding
dependable child care professionals to provide responsible care for
their children. Without the availability of stable care, employers find
that their employees are apt to miss work or in some cases leave their
jobs altogether.
As we try to move forward individuals from welfare to the work force,
we must provide families with the support of a highly trained and
reliable child care work force.
Mr. Chairman, as long as our current economic climate forces parents
to work outside the home, we must provide some assurance that their
children are properly cared for by encouraging bright and qualified
early child care graduates to enter and stay with the profession. This
amendment will help give more families access to quality child care. I
urge my colleagues to adopt it.
Mrs. TAUSCHER. Mr. Chairman, I move to strike the last word.
Mr. Speaker, I rise in support of the Lazio-Gilman-Tauscher amendment
and urge my colleagues to support this important provision. This
amendment is based on a measure recently introduced by the gentleman
from New York (Mr. Lazio) and was included as part the Senate-based
Higher Education Act.
This amendment would authorize funding for a demonstration project
that would forgive Federal student loans for individuals who have an
associate or bachelor's degree in early childhood education and who
work in a licensed child care facility for 5 years.
I believe it is imperative that we as a Nation do more to provide
stability in the lives of our young children. Part of that stability
comes from them having the same providers teaching them and taking care
of them every day. However, trained individuals who want to work for
child care centers often cannot enter this field because they are
unable to find a job that gives them adequate financial footing to pay
back their student loans.
On average, the cost of a 2-year degree at a private college is about
$12,500. And, unfortunately, child care teaching staff earn on average
less than $8 per hour, or only $13,000 per year, for the very valuable
work that they do.
{time} 2215
They earn these low wages despite the fact that they are better
educated than the general population.
[[Page H2576]]
The average salary for child care providers in center-based care is
only about $4500 higher than the Federal poverty guidelines for a
single adult and is nowhere near the $16,000 per year salary which is
considered to be a livable wage for a single adult.
It is no wonder, then, that 31 percent of all child care teachers
leave their jobs each year for other employment. They simply cannot
afford to simultaneously pay back any student loans that they may have
and financially support themselves.
The Lazio-Gilman-Tauscher amendment would help lower this
astronomically high attrition rate among qualified child care providers
by providing loan forgiveness for student loans, thus making it
financially feasible for knowledgeable providers to actually stay and
work in the field for which they were trained. The language in this
amendment is based on the Lazio bill, H.R. 3727, a similar provision is
in my bill, H.R. 3686, the Model States Child Care Enhancement Act
which I introduced a month ago with the gentleman from Maine (Mr.
Allen) and the gentleman from Virginia (Mr. Moran). Although slightly
different in design, the intent is the same.
We must do more to help qualified child care providers make ends
meet, and we must do more to provide our kids with that level of
security in their lives that they require. We must not underestimate
the effect this stability has on our Nation's children.
Quality is a function of experience. Nationwide, only 32 percent of
child care teachers have been employed in their centers for at least 5
years. When teachers have the dual benefit of education and experience,
then we as parents can be assured that our children are receiving the
highest quality in child care. Let us help those people who have made
the educational commitment to caring for children stay in the field and
get that valuable experience.
I am pleased to work so closely with the gentleman from New York (Mr.
Lazio) and the gentleman from New York (Mr. Gilman) and I urge
acceptance of this bipartisan, bicameral amendment.
Mr. FOX of Pennsylvania. Mr. Chairman, I move to strike the requisite
number of words. I would like to thank the gentleman from New York (Mr.
Lazio), the gentleman from New York (Mr. Gilman) and the gentlewoman
from California (Mrs. Tauscher) for offering this important amendment
to the Higher Education Amendments.
Child care is an issue that concerns all families. Making sure that
American families have access to quality child care should be one of
our top priorities in the Congress. As Members may know, an average
child care worker earns less than $7 per hour. It is easy to see that
this does not provide enormous incentive for young graduates to enter
the child care profession.
Moreover, the best child care is provided by educated workers. We all
know the majority of students graduating from college are burdened with
thousands of dollars of student loan debt. This is a further
disincentive to entering the child care field.
The aim of this amendment is to provide an incentive for students to
enter into child care professions. This amendment would forgive a
percentage of the debt owed by graduates that choose to enter the child
care field.
The challenge here is that while students may strongly desire to work
in child care and teach young children, they know that their income
will be so modest that there will be no way possible that they could
ever realistically repay their student loans. This amendment provides a
much-needed incentive for students to choose this vitally important
career path. The amendment would also seek to retain these workers in
the child care field by increasing the percentage of loan forgiveness
the longer they work.
It is very difficult for parents to, of course, leave their children
in the care of others. Unfortunately this is necessary because of our
current economic climate, with many parents working more than one job
and both parents working. Although most parents would prefer to stay
home with their children, about 75 percent of married couples with
children work outside the home. This amendment will go a long way
towards ensuring that our children are left in qualified, well-trained
hands. It will also provide parents important peace of mind.
Again, I would like to thank the gentleman from New York (Mr. Lazio)
for his leadership on this issue. I urge my colleagues to vote for this
important initiative.
Mrs. CLAYTON. Mr. Chairman, I move to strike the requisite number of
words.
Mr. Chairman, I also want to rise to support the Lazio-Gilman-
Tauscher amendment. I want to speak about the importance of providing
quality child care and doing all that we can to increase the supply of
well-trained individuals to provide for our precious children.
A tragic story most poignantly pointed out the need of providing
child care. Recently in the Washington Post we all heard about a police
officer who found that she had to choose between having child care and
taking care of her children. Since she had no child care, she had only
one day job. You heard the story. On her first day of being jobless and
with her children at her side, she held her colleagues who came to her
home at bay with a gun.
While none of us condone her action, we all have to recognize the
pressure, the agony and the desperation she must have felt in trying to
keep her job and to care for her children as well.
We understand that this Nation's future, millions of our babies,
children and youth, spend large quantities of their time in the child
care environment. Therefore, it is understandable that we need to
provide the best-trained individuals to make sure that they are taken
care of.
This modest amendment will have a major impact, because it will help
produce more competent child care workers. These child care providers
are crucial to the health and the welfare of our children. They are
crucial to the parents who must support their families. I urge that
this amendment be adopted so that we can provide the necessary care.
Mr. KILDEE. Mr. Chairman, I move to strike the requisite number of
words. I rise to support the amendment.
I introduced the first child care bill in this House since Richard
Nixon had proposed child care many years ago. Richard Nixon did some
good things, among them his child care bill. In analyzing and studying
child care at the time, I discovered that the workers at our Nation's
zoos, who earn every penny that they earn, they certainly earn it all,
but they make more than child care workers. I have always felt that
those who take care of children should at least be making the amount of
money as those who would take care of the animals at our Nation's zoos.
We have had a desperate situation in child care and the remuneration
to our workers there. I think that the amendment that the gentleman
from New York (Mr. Lazio) is offering will help alleviate that to a
great degree. I support the amendment.
Mr. ANDREWS. Mr. Chairman, I move to strike the requisite number of
words. I also rise in support of the amendment offered by the gentleman
from New York (Mr. Lazio), the gentleman from New York (Mr. Gilman) and
the gentlewoman from California (Mrs. Tauscher).
I think it is important that we understand how much of a sacrifice
people make when they go to work in the child care field. The gentleman
from New York (Mr. Lazio) and the gentlewoman from California (Mrs.
Tauscher) have spoken very clearly and eloquently about that, but I
think there are some numbers that were in the newspaper, in the New
York Times today, which dramatically illustrate the economic priority
we put on taking care of our children as opposed to the rhetoric that
we talk about taking care of our children.
There was a study done which indicates that the median hourly wage of
animal caretakers, people who take care of our pets, is $6.90 an hour;
the median hourly wage of parking lot attendants, people who watch our
cars, is $6.38 an hour; and the median wage of child care workers, who
care for and watch our children, was $6.12 an hour. So we literally pay
people more to watch our pets and our cars than we do our children.
One of the ways that we begin to redress that grievance, and it is a
grievance, is this proposal which suggests that a limited number of
child care
[[Page H2577]]
workers will be able to finance their education by working in quality,
affordable child care.
This is an example, and I know that both the gentlewoman from
California (Mrs. Tauscher) and the gentleman from New York (Mr. Lazio)
are the parents of young children, as am I, so they know this issue
very personally. It is an example of how the two sides of the aisle can
come together on a very practical idea. I commend the authors and
heartily support the amendment.
Ms. JACKSON-LEE of Texas. Mr. Chairman, will the gentleman yield?
Mr. ANDREWS. I yield to the gentlewoman from Texas.
Ms. JACKSON-LEE of Texas. Mr. Chairman, we do appreciate very much
this very forthright and forward thinking legislation.
Another number I would like to share with my colleagues is that the
average salary of a child care worker may be barely $12,000. It is very
important that we provide the opportunities for professionalism, for
training, for incentives, for learning creative techniques and styles
of teaching our very young children.
As Mrs. Clinton has indicated in her emphasis on the zero to 3
development, early development, it is so very important the kind of
exposure our children have, safe and secure environment, and the kind
of caretaker who not only cares and loves them but also has a
professional attitude and an ability to train them.
I want to add my accolades but as well my support enthusiastically to
the kind of legislation that will provide opportunities for
professional child care providers, making this the kind of system that
we can be proud of. I think this will particularly help our mothers
moving from welfare to work. I thank the gentleman for yielding.
Mr. McKEON. Mr. Chairman, I move to strike the requisite number of
words. I want to commend the gentleman from New York (Mr. Lazio),
classmate, subcommittee chairman on another committee, for a well
thought out and good amendment. I want to support his amendment.
This program was patterned after the loan forgiveness for teachers
already included in H.R. 6. Students cannot receive loan forgiveness
until after they have completed their second year of employment, at
which time 20 percent of their loans may be forgiven, 20 percent after
the third year, and 30 percent after the fourth and fifth years of
employment, which guarantees that people will continue to work in the
program for a period of time, which is very beneficial. Loan
forgiveness programs structured in this manner serve as good incentives
to attract and retain qualified teachers, especially in low paying
professions or areas. I urge a ``yes'' vote on the amendment.
Mr. GOODLING. Mr. Chairman, I move to strike the requisite number of
words. I rise to bring reality to the discussion. We are making each
other feel good. The last amendment was a good amendment. This is a
good amendment.
Where is the gentleman from South Carolina (Mr. Spratt) when I need
him? Obviously we know very well that if any of these amendments get
funded, money must be taken from some other place. I do not know where
that will be, but it might be one of your other favorite programs or,
even worse, it might be one of my favorite programs.
I just want to have a little reality check here and make sure
everybody understands. We are feeling good. But if they take money from
us in order to fund these programs, we will not be feeling so good.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from New York (Mr. Lazio).
The amendment was agreed to.
Amendment No. 29 Offered by Ms. Jackson-Lee of Texas
Ms. JACKSON-LEE of Texas. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 29 offered by Ms. Jackson-Lee of Texas:
Page 182, line 14, strike the close quotation marks and
following period and after such line insert the following new
paragraph:
``(7) Authority of the Secretary to Assist Distressed
Institution.--The Secretary is authorized to provide
administrative, fiscal, management, strategic planning and
technical assistance through a qualified third-party
consultant identified by the institution or an organization
representing such institutions. Institutions eligible for
such assistance include those institutions which qualify for
the exemption in paragraph (2)(C)(i), (ii), and (iii) of this
subsection, or which have submitted a default management plan
under paragraph (5) which has been accepted by the Secretary.
Modification to Amendment No. 29 Offered by Ms. Jackson-Lee of Texas
Ms. JACKSON-LEE of Texas. Mr. Chairman, I ask unanimous consent that
my amendment be modified with the modification at the desk.
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:
Amendment No. 29 offered Ms. Jackson-Lee of Texas, as
modified:
Page 182, line 14, strike the close quotation marks and
following period and after such line insert the following new
paragraph:
``(7) Authority of the Secretary to Assist Distressed
Institutions.--The Secretary is authorized pursuant to
section 326(c)(7) to provide administrative, fiscal,
management, strategic planning, and technical assistance
through a qualified third-party consultant identified by the
institution or an organization representing such
institutions. Institutions eligible for such assistance
include those institutions which qualify for the exemption in
paragraph (2)(C)(i), (ii), and (iii) of this subsection, or
which have submitted a default management plan under
paragraph (5) which has been accepted by the Secretary.
Ms. JACKSON-LEE of Texas (during the reading). Mr. Chairman, I ask
unanimous consent that the amendment be considered as read and printed
in the Record.
The CHAIRMAN. Is there objection to the request of the gentlewoman
from Texas?
There was no objection.
The CHAIRMAN. Without objection, the modification is accepted.
There was no objection.
Ms. JACKSON-LEE of Texas. Mr. Chairman, particularly I would like to
thank the leadership of this committee which includes, of course, the
gentleman from Missouri (Mr. Clay), the gentleman from Michigan (Mr.
Kildee), certainly the gentleman from Pennsylvania (Mr. Goodling) and
various other subcommittee chairs for really the cooperative effort and
spirit of this legislation.
It is important for the American people to see that all of the
Congress supports education. This bill I think will help us, Mr.
Chairman, do something that we would really like to see occur, and that
is to see our student loans repaid. This amendment requests a study of
default rates. It will make the lenders happy, it will make the
students happy, it will make the government happy, because it will
provide us with the kind of analysis that will help us determine why
there may be a high default rate, what are the approaches we are using
or not using.
{time} 2230
I would hope that the Micro Computer Technology Institute located in
the City of Houston, which provides technology education to the
residents of the Eighteenth Congressional District, would benefit from
this. Eighty-seven students from my congressional district were
included in the cohort for fiscal year 1993. Of that number, 54 were
adversely effected by what appeared to be improper servicing of their
loans.
There are many issues, Mr. Chairman, that impact why loans are
defaulted. I believe in student loans. I had student loans. I paid back
student loans. I want to see student loans being a viable element of
our higher education. It helps so many of our constituents.
So I would offer this amendment so that we can get, if my colleagues
will, to the bottom of it, provide the kind of information and possibly
avoid the kind of default rates that we have had and the criticism of
our very viable loan programs.
Mr. GOODLING. Mr. Chairman, will the gentlewoman yield?
Ms. JACKSON-LEE of Texas. I yield to the gentleman from Pennsylvania.
Mr. GOODLING. Mr. Chairman, I want to make sure that we have this
clear. We are accepting her amendment, but she said she was offering
29, but she talked about 27. But we are going to accept 29 and 27, but
her discussion was on 27 rather than on 29.
Ms. JACKSON-LEE of Texas. Mr. Chairman, the gentleman may be right.
Because I have had them both here,
[[Page H2578]]
and the gentleman is absolutely right. One was on distressed
institutions.
Mr. GOODLING. We are going to accept both of them.
Ms. JACKSON-LEE of Texas. Great. Then I will not add anything to it
other than to say the one I was speaking about originally was 29, and
that was distressed institutions, and that is the opportunity to use a
third party consultant. Is that the gentleman's understanding?
Mr. GOODLING. Mr. Chairman, the gentlewoman had said 29, but her
discussion was on 27.
Ms. JACKSON-LEE of Texas. Right.
Mr. GOODLING. And we are going to accept both 27 and 29.
Ms. JACKSON-LEE of Texas. And 29 was on distressed institutions that
had to do with using a third party consultant.
Mr. GOODLING. Yes.
Ms. JACKSON-LEE of Texas. And the gentleman will accept that one and
27.
Mr. GOODLING. Right.
Ms. JACKSON-LEE of Texas. All right, Mr. Chairman. I thank the
gentleman.
Mr. Chairman, I rise today in support of my amendment to H.R. 6, the
Higher Education Amendments of 1998, which would allow distressed
institutions that are already provided for in the text of this bill,
the opportunity to utilize a third party consultant, if they so desire,
to conduct their administrative, fiscal and technical assistance. This
addition is not simply about the fact that a third party consultant,
specifically trained and prepared to offer this kind of assistance,
will generally provide a higher level of quality and performance than
an advisor assigned by a federal agency to consult an institution of
higher education, but there are serious ethical issues at play here as
well.
A Department of Education official that is assigned to consult a
college or university about possible improvements in their
administrative or fiscal management procedures is not only charged to
improve the quality of the college's or university's procedures, but as
well, they are required to report any violations of federal law or
regulations conducted by the college/university that they observe. It
is one thing for our larger colleges and universities with seemingly
unlimited resources to hold to this high standard of review, but it is
highly unlikely that a Harvard or Yale or a University of Texas, even,
would ever need fiscal, administrative or technical assistance from the
Department of Education.
No, it will be our smaller colleges and universities that will be
requesting help from the government, and they often make mistakes in
their procedures and policies that they need not be penalized for by
the very group that they are requesting help from. But the Department
of Education's officials have an ethical mandate to report any
infractions that they observe whether they are done by omission or by
commission. On the other hand, however, a valid technical argument can
be made by our smaller colleges and universities against Department of
Education consultation. Essentially, why should a college or university
be forced to take into counsel a representative from a group that has
an oversight relationship with them? It makes no sense. Our small
colleges and universities should be able to have impartial consultation
about their administrative or fiscal needs without facing consequences
for previous actions from the federal government.
The only logical solution to this ethical dilemma for both the
Department of Education and our small colleges and universities, is to
allow a third-party consultant to advise the institution about its
needs and concerns, if they so desire. This way, a college or
university can begin steps to correct any procedural mistakes they may
be making, without experiencing the unfair possibility of facing future
Department of Education penalties. We must not punish those who
sincerely need our help, but encourage them to make their institution
the very best that it can be. So I urge you to support this amendment
to level the playing field for our many distressed institutions of
higher learning in need of comprehensive assistance.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from Texas (Ms. Jackson-Lee), as modified.
The amendment, as modified, was agreed to.
Amendment No. 27 Offered by Ms. Jackson-Lee of Texas
Ms. JACKSON-LEE of Texas. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 27 offered by Ms. Jackson-Lee of Texas:
Page 136, line 19 add the following new section:
TITLE IV--GUARANTY AGENCY REFORMS
SEC. 413. GUARANTY AGENCY REFORMS.
Directs the Secretary to conduct a study to investigate to
what extent the actions of the lenders and the guarantors
impact upon the default rates of student borrowers as it
relates to the servicing of the loans or the due diligence of
the loan.
Ms. JACKSON-LEE of Texas. Mr. Chairman, because of the kindness of
the gentleman from Pennsylvania (Mr. Goodling) the gentleman from
Michigan (Mr. Kildee) the gentleman from Missouri (Mr. Clay) and
others, I will be brief on this.
This, again, has to do with guarantee agency reforms which is to
allow the Secretary of Education to conduct a study to determine if the
actions and guarantors of student loans impact default rates. Simply,
this provides us with information; and, as I said earlier in my
comments, this helps to avoid some of the dilemma that we face with
default rates. Let us find out why, let us try to improve it, and let
us insure that student loans remains a viable part of our educational
process.
With that, Mr. Chairman, I ask my colleagues to support this
amendment that can only help to enhance our educational system for
higher education.
Mr. Chairman, I rise to offer the following amendment to H.R. 6, the
Higher Education Amendment of 1998.
This amendment would result in a study to determine to what extent
the actions of the lenders and the guarantors impact upon the default
rates of student borrowers as it relates to the servicing of the loans
or the due diligence of the loan. The goal of this study will be to
determine the source of default rates of student loans.
The Microcomputer Technology Institute located in the City of Houston
provides technology educations to residents of the 18th Congressional
District which I represent. Eighty-seven students from my Congressional
district were included in the Cohort for Fiscal year 1993. Of that
number, 54 were adversely affected by what appeared to be improper
servicing of their loans by one of the lender/guarantor units used by
the Microcomputer Technology Institute during that period. The
remaining 33 students did much better, their loans having been serviced
by a different lender/guarantor combination, which resulted in a cohort
default rate approximately one-third that of the first group.
It is evident that the way and manner that loans are serviced can and
will affect certain students ability to pay back the loans as well as
the resultant cohort default rate assigned to an institution.
If Microcomputer Technology Institute had placed all of its students
loans with the first lender that had a high default rate then its
potential default rate could have been greater than 40%--defining
Microcomputer Technology Institute as a bad school for the purpose of
Department of Education approval of Federal Student Loans.
Currently, under the Department of Education rule, if the borrower
made even a single payment on the loan, the default can not be due to
improper servicing, no matter how deficient the servicing has been.
Lending institutions and guarantors may accomplish servicing in a
wide variety of ways from those which do an excellent job of providing
payment coupons, and reminder calls to those which rely on a letter
serving notice that repayment of a loan is due.
I would contend that the level of repayment is directly related to
the due diligence of the loan, because the effort put into generating
payments once a student has concluded their education is of vital
importance in securing repayment.
I believe that we should not let this issue continue without study
because the results of high loan default rates are penalties to the
educationally institution.
There are many factors that may contribute to student loan default
rates, but without this study there will be no way to determine if more
should or could be done to reduce the number of loan defaults.
Congress recognized the responsibility of lenders and guaranty
agencies when the Higher Education Amendments of 1992 amended the
Higher Education Act of 1965 to require the Department to calculate and
publish cohort default rates for original lenders, current holders, and
guaranty agencies.
Congress should pursue its interest in student loan defaults with a
study to learn what if any thing could be done to improve student
repayment rates. In Fiscal Year 1995 of the 7,644 schools reviewed with
a total of 1,918,453 borrowers there were a total of 199,346 defaults.
I ask my colleagues to join me in support of this important
amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from Texas (Ms. Jackson-Lee).
[[Page H2579]]
The amendment was agreed to.
Amendment No. 30 Offered by Ms. Jackson-Lee of Texas
Ms. JACKSON-LEE of Texas. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 30 offered by Ms. Jackson-Lee:
Page 270, after line 16, insert the following new section:
SEC. 480. RELIEF FROM OBLIGATION.
To the extent authorized in advance in an appropriation
Act, the Secretary may, in settlement of claims found or
arising under audits and program reviews under title IV of
the Higher Education Act of 1965, forgive the obligations to
pay such claims of Texas Southern University relating to the
administration of programs under such title, subject to such
terms and conditions as Secretary may require with respect to
conduct of programs under such title on and after the date of
enactment of this Act.
Ms. JACKSON-LEE of Texas. Mr. Chairman, simply, my amendment deals
specifically with concerns of an institution that has a great history
in our community. Texas Southern University was a State or is a State
institution founded in 1948. It was founded on the basis of students in
Texas, African Americans, not being allowed to go to the white
institutions in Texas out of segregation. And over the years Texas
Southern University has educated a high degrees of our pharmacists, our
lawyers, our educators. In fact, Texas Southern University has educated
most of the teachers in the State of Texas.
It particularly serves a significant number of low-income minority
students in Texas. It trains a significant percentage of the State's
legal and pharmaceutical students as well as it trains a huge number of
our Hispanic attorneys in the State of Texas.
Texas Southern University has historically been underfunded by the
State of Texas. That is something that we are trying to work on.
However, this has resulted in its reduced ability to marginize many of
its internal systems, some of them so very important to keeping the
appropriate or the kinds of records necessary in this fast-paced
economy. As a result of this historical underfunding, it has not been
able to maintain sufficient staff to provide total administrational
support that is necessary.
Problems created by prior inadequate funding have been identified and
are in the process of being resolved, currently negotiating with the
Department of Education to resolve its prior deficiencies and to
identify such deficiencies and result in a settlement.
My amendment acknowledges the historical role that Texas Southern
University has and would ask that we would, if my colleagues will,
forgive any settlement that might come about so that Texas Southern
University might move forward, establishing a more proper procedure and
as well to survive in this particular competitive climate.
I would hope that the point made about Texas Southern University is
that it is trying to correct its deficiencies, that it is a valuable
institution and that, hopefully, we would be able to agree with the
fact that an institution such as Texas Southern University needs to be
preserved.
Mr. Chairman, I ask the gentleman from Pennsylvania, as he responds
to me, I may want to have this amendment withdrawn, and I would like to
have enough time to be able to speak on that point.
Mr. GOODLING. Mr. Chairman, will the gentlewoman yield?
Ms. JACKSON-LEE of Texas. I yield to the gentleman from Pennsylvania.
Mr. GOODLING. Mr. Chairman, I was under the impression that the
gentlewoman was going to withdraw this amendment.
Ms. JACKSON-LEE of Texas. And I am, Mr. Chairman.
Mr. GOODLING. Of course, the major reason is we have already had four
requests similar, and we have a pay-go problem, and so they will have
to deal with the secretaries to try to get it all straightened out.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I will take the gentleman's
remarks as a positive. They will have to deal with the secretary. It
certainly does not speak against the historical nature of Texas
Southern University, but we are in the process of doing that. We hope
that we will have positive results, and I was hoping to get relief here
on the floor of the House, and I respect the chairman.
Mr. Chairman, I rise today in support of my amendment to forgive the
debt obligation of Texas Southern University to the United States
Department of Education incurred as a result of difficulties that arose
in the Administration of their Title IX Student Financial Aid program.
This amendment, Mr. Chairman, seeks only to give the same protections
to some of our smaller institutions of higher learning, which
desperately need financial and technical assistance from the Department
of Education, that the Department of Commerce and the Small Business
Administration currently give to our small and disadvantaged
businesses. Essentially, the relationship is no different.
Our small colleges and universities in this country are a valuable
resource in giving certain people an opportunity to receive an
undergraduate education that might not otherwise be able to do so. A
prime example of one of these colleges and universities is Texas
Southern University in Houston, Texas. Texas Southern University, or
TSU as it is popularly called, was founded as a compromise in the
settlement of a lawsuit between a man named Herman Sweatt and the
University of Texas. Sweatt, the plaintiff in the famous 1950 Supreme
Court case of Sweatt v. Painter, was fighting the Texas Constitutional
provision which mandated separate treatment of Blacks and Whites, so
that he might be able to attend the University of Texas Law School. In
the midst of Sweatt's four year long protracted legal battle, state
officials thought he might be pacified by the creation of a ``Negro''
university that was also funded by the State. So in 1947, the Texas
State University for Negroes was created, and in 1951, after Sweatt's
victory in the Supreme Court, the university's name was changed to
Texas Southern University.
And even though Texas Southern's mandate from the State was to
provide ``courses equivalent'' to those provided by other state-
supported universities, over the last 4 decades, the University has
been consistently underfunded. This open secret culminated in 1981 when
the Office of Civil Rights found that the State of Texas was operating
``a dual and unequal system of higher education''. The bottomline is
that for too long, our small colleges and universities have been
treated like ``unwanted stepchildren'' by our state funding agencies.
Despite all of this, TSU has become an institution that enrolls
students of all racial, religious, cultural, and ethnic backgrounds
from Texas, the nation, and the world. It is more than just a
collection of students, it is a conduit between cultures, races and
lifestyles; truly a constant source of viable political, civic, and
business leaders for the Greater Houston community. So why not help our
small colleges and universities like TSU?
These institutions need our technical assistance and long-term
financial support in order to encourage greater institutional
stability, a trademark of our larger colleges and universities. Today,
I ask for only Texas Southern University, because I recognize that this
forgiveness from financial obligation must not be abused. But as
special and worthwhile cases may arise, like this one, we should not,
we can not, we must not, shrink from our responsibility to help those
institutions of higher learning that need us most. We are not forgiving
the debt of a ``fat cat'', multinational corporation; quite to the
contrary, we are setting forth an honorable act of absolution to an
institution that genuinely needs our help. Simply stated, we are
allowing tens of thousands of children the opportunity to maximize the
potential; to someday realize their dreams. For this reason, above all,
I ask all of my colleagues to support this amendment, and preserve the
sacred gift of education.
Mr. Chairman, I ask unanimous consent to withdraw the amendment.
The CHAIRMAN. Is there objection to the request of the gentlewoman
from Texas?
There was no objection.
The CHAIRMAN. The amendment is withdrawn.
Amendment No. 59 Offered by Mr. Souder
Mr. SOUDER. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 59 offered by Mr. Souder:
Page 237, strike lines 4 through 10 and insert the
following:
``(2) Rehabilitation.--A student whose eligibility has been
suspended under paragraph (l) may resume eligibility before
the end of the period determined under such paragraph if the
student satisfactorily completes a drug rehabilitation
program that complies with such criteria as the Secretary
shall prescribe for purposes of this paragraph and that
includes two unannounced drug tests.
Mr. SOUDER. Mr. Chairman, my amendment is very simple. On page 237
[[Page H2580]]
it strikes lines 4 through 10 and inserts the following: Under
rehabilitation, a student whose eligibility has been suspended under
paragraph 1 may resume eligibility before the end of the period
determined under such paragraph if the student satisfactorily completes
a drug rehabilitation program that complies with such criteria as the
Secretary shall prescribe for purposes of this paragraph and that
includes two unannounced drug tests.
The addition to the underlying bill is that it includes 2 unannounced
drug tests.
This amendment has no estimated drug spending, unless, of course,
somebody would fail the drug test and then, while that is not our goal,
it would actually save money. But our goal is to make sure that,
actually, the students are clean when they come back.
Now let me go through the history of how this got in the main bill
and then discuss particularly my change which I hope will be considered
a friendly amendment and can be supported. It is not general drug
testing. It is not testing of anyone other than people who have been
convicted of drug use and are now under this bill going through drug
rehab and making sure they are actually clean.
But I want to go through the actual epidemic that we are facing. We
have a major crisis in this country, and the question is are we serious
about it or not. And this bill has an important first step, and I would
like to just refine this a little bit more. It is easy for us to
criticize Mexico; it is easy for us to criticize Columbia. The question
is, are we really committed in this country?
The Chronicle of Higher Education, March 21, 1997, states that crime
data from 489 of the largest colleges and universities in this country
indicate that drug arrests on college campuses jumped by close to 18
percent in 1995 when they have the data in the fourth consecutive year
with a double digit increase. By comparison, all other crimes,
including murder, robbery, aggravated assault, burglary, vehicle theft
and violations of weapons laws declined. So it is clear in our
universities we have had drug use as an increasing problem. This 18
percent jump is even more troubling when you consider that those are
the kids that get caught.
According to this same article, researchers at the University of
Michigan found that 33.5 percent of the college students surveyed in
1995 had used illegal drugs within that year up 2.1 percent from 1994
and up even further from an earlier survey.
I have recently seen the survey study, and it included 17-year-olds
who are just about to head to college. They are seniors in high school,
and in there two-thirds said that they knew where they could get
marijuana within a day, and 44 percent within an hour or less, that our
schools are, in fact, not drug-free even in high school. Thirty-seven
percent of the principles said they were drug-free; 46 percent of the
teachers. But 76 percent of the students said that their school was not
drug-free. They understand they are at risk when they were asked, 17-
year-olds, what they thought their greatest problem was. Drugs were not
seen as much of a problem, as their major problem, as all the other
issues combined.
Now this suggests that our children know they are at risk, and we
need to take some steps to make sure they are not in danger.
This amendment, to go through some of the history, has been in our
bill before coming through the House, the full underlying amendment
that came through committee before this adjustment, and my colleague
and friend, the gentleman from New York (Mr. Solomon) has been the
pioneer and the leader with this. He is a great American, and I am
going to miss him, and many others are. He has been a crusader for the
values that made this country great.
He had this in the Higher Ed Reauthorization bill in 1992. We lost it
in conference, and we are coming back again with the underlying
treatment amendment in the beginning, and let me explain what the
underlying amendment does:
One loses their taxpayer subsidized loan for 1 year for first
offense, 2 years for their second offense and indefinitely for the
third. If they sell drugs, they get suspended for 2 years for a first
offense and indefinitely on a second offense.
The point here is not to get people out of college. That is why we
have the treatment program and then they come back in. We want to get
people rehabbed so they can learn. But the problem here is we need to
make sure not just that they are going through treatment programs and
insurance companies can make a lot of money and treatment programs can
make a lot of money, but that, in fact, people are cured.
This can be done, quite frankly, faster than the suspension period.
If they successfully complete a rehab program and they get through a
drug test that is clean, they are back in school.
I have no desire to eliminate anybody's opportunity to climb out of
the situation they are in to advance their career, but the best way to
do that is to make sure one is clean of drugs. And I believe that this
amendment will actually make the underlying amendment that we had in
committee even stronger and put teeth in that, and I hope that it can
be supported by all sides. Because, once again, I want to say it is not
a general testing amendment; it is only for people who have been
convicted and lost their student loan.
Mr. GOODLING. Mr. Chairman, I rise in support of the amendment
offered by the gentleman from Indiana.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Indiana (Mr. Souder).
The amendment was agreed to.
The CHAIRMAN. Are there further amendments to title IV?
Amendment No. 18 Offered by Mrs. Clayton
Mrs. Clayton. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 18 offered by Mrs. Clayton:
Page 248, line 4, strike ``and''; on line 10, strike the
second period and insert ``; and'', and after line 10 insert
the following:
(7) by adding at the end the following new paragraph:
``(23) The institution will distribute to each student,
during registration for enrollment in its instructional
program, the mail voter registration application form
described in section 9(a)(2) of the National Voter
Registration Act of 1993, unless the student, in writing,
declines to receive such form.''.
Mrs. CLAYTON. Mr. Chairman, this is an amendment to allow that
college students, as they begin their career as college students, to
have the opportunity to begin their careers also as citizens
participating in our great democracy. As my colleagues well know, the
ages between 18 and 24 happened to be the lowest rate of participation.
All Americans really should be ashamed at the rate we are participating
but, simply put, this allows a simple access to a college student
coming to register to also be able to register to vote.
{time} 2245
To our knowledge, this does not require any Federal funds, so it
should not be a question about the funding of this.
This amendment simply addresses access and opportunity. Currently,
the Motor Voter registration allows for anyone to register at a
library. It simply means that the Board of Elections of those
particular cities will send this information or registration form to
the colleges.
This is not a partisan amendment; this does not have added costs.
This is simply a way for college students to participate in the
democracy.
Mr. Chairman, with that, I will yield to the gentleman from
Pennsylvania (Mr. Goodling).
Mr. GOODLING. Mr. Chairman, I am going to say the same thing that the
gentleman from California (Mr. McKeon) was told to say, which is the
same thing that he mentioned.
We are accepting this amendment this evening with the understanding
that if it creates too much heartburn, we will discuss it in
conference.
Mrs. CLAYTON. Mr. Chairman, reclaiming my time, we appreciate the
gentleman's willingness to accept the amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentlewoman from North Carolina (Mrs. Clayton).
The amendment was agreed to.
Amendment No. 16 Offered by Mr. Andrews
Mr. ANDREWS. Mr. Chairman, I offer an amendment numbered 16.
[[Page H2581]]
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 16 offered by Mr. Andrews:
Page 164, after line 25, insert the following new
subsection:
(t) Notice of Availability of Income-sensitive Repayment
Option.--
(1) Amendment.--Section 428 is further amended by adding at
the end the following new subsection:
``(o) Notice of Availability of Income-sensitive Repayment
Option.--At the time of offering a borrower a loan under this
part, and at the time of offering the borrower the option of
repaying a loan in accordance with this subsection, the
lender shall provide the borrower with a notice that informs
the borrower, in a form prescribed by the Secretary by
regulation--
``(1) that all borrowers are eligible for income-sensitive
repayment through loan consolidation under section 428C;
``(2) the procedures by which the borrower may elect
income-sensitive repayment; and
``(3) where and how the borrower may obtain additional
information concerning income-sensitive repayment.''.
(2) Conforming amendments.--
(A) Section 428(b)(1)(E)(i) is amended by inserting before
the semicolon the following: ``or of repaying the loan in
accordance with an income-sensitive repayment schedule
offered pursuant to section 428C''.
(B) Section 485(b)(1)(A) is amended--
(i) by striking ``and'' at the end of clause (i);
(ii) by striking the period at the end of clause (ii) and
inserting ``; and''; and
(iii) by adding at the end the following new clause:
``(iii) the information required to be disclosed by lenders
pursuant to section 428(o).''.
Mr. ANDREWS. Mr. Chairman, the purpose of this amendment is to help
deal with the very real problem of people who graduate from school with
a significant student loan debt. I think we widely agree that the best
solution is to try to find a way to moderate the cost of higher
education. I think there are many things we have in this bill that
begin to do that. The second best solution is more scholarship aid so
more people are able to earn and win scholarships, whether based on
merit or need.
We are still faced with the reality, though, that many students are
required to borrow in order to finance their education. I believe that
it is therefore imperative that we try to find ways that make that
borrowing easier for students and their families to deal with.
One such way is to encourage the use of income-contingent or income-
sensitive loans. In short, this concept means that one's obligation to
pay one's loan back is based in large part upon their income, upon
their ability to pay. So the less one makes, the less of an obligation
one has to pay, but as their income rises, so does their obligation to
pay.
This is the first of 2 amendments I am going to offer on this
subject. This one makes it clear that whether students are under the
direct loan program or the bank-based guarantee loan program, they are
fully aware of their right to have all of their loans consolidated into
the Department of Education and then converted through the income-
sensitive option.
What this means is that a young man or a young woman who graduates
with a significant debt, with a $20,000 or $30,000 or $40,000 debt, who
chooses to go into a job or profession, or must go into a job or
profession that earns a lower salary will have the opportunity to make
that choice, will not be compelled to choose between pursuing the
highest and best education they can get or accepting a job that they do
not wish to pursue.
I think this is a sensible amendment. I believe it will encourage
people to borrow prudently, but give them an opportunity to repay their
loan on a fair and reasonable basis. It is a way to deal with the
burgeoning problem of too much debt upon graduation.
Mr. Chairman, I yield to my friend, the gentleman from New Jersey
(Mr. Pascrell), who has proposed legislation that is very similar in
concept to this. He accomplishes this goal by extending the period of
time that people can pay back their loans, and I believe it is very
much in sync with this idea.
Mr. PASCRELL. Mr. Chairman, I believe that the amendment of the
gentleman is right on target. One of the largest and most severe
problems facing college students is an ever-mounting debt. When I look
at the students in my own State and how that debt has increased over
the past several years, moving up to close to $13,000 on the average,
and by another 2 years, that debt will increase to perhaps a little bit
more than $20,000. I think that the indirect loan program to those
students who are not taking advantage of the direct loans, 10 years is
certainly questionable at this time.
I am not offering an amendment, Mr. Chairman. What I would like to do
is in conference, if it is possible with the leadership, to consider
the possibility of extending from 10 to 25 years those indirect loans.
If we do not, then I think that we are in jeopardy for those students
who graduate who want to take on some noble service like teaching or
social work or joining the Peace Corps, that becomes impossible if one
has to pay that loan off, that debt in 10 years. I hope we could extend
it to 25 years. We have looked at the numbers on it and I think it is
very doable. This will allow students more flexibility in their
repayment schedules and make it easier for them to both adjust to the
working world and take low-paying, public service-oriented jobs.
I have asked the students in my district about this, Mr. Chairman.
They support this idea and I believe it is best for them, best for
education, and best for America.
Mr. ANDREWS. Mr. Chairman, reclaiming my time, I yield to the
gentleman from California (Mr. McKeon), the chairman of the
subcommittee on this issue.
Mr. McKEON. Mr. Chairman, I want to thank the gentleman from New
Jersey, Mr. Andrews, for this amendment. I think it does strengthen the
bill, as others do, and I would be happy to support it.
Mr. ANDREWS. Mr. Chairman, I thank the gentleman.
Mr. FOX of Pennsylvania. Mr. Chairman, I move to strike the last
word, and I rise in support of the Andrews amendment.
I believe this is certainly a key issue for this Congress. When I
speak to people from my district, they always talk about how can we
help assist students in need who want to have college loans and grants.
Students frankly across America want to make sure they achieve the
American dream by community service, by helping their country. If they
cannot get the college loan or grant, then they may be foreclosed from
higher education just because we in Congress did not take advantage of
the Andrews amendment.
By seizing the moment here tonight in a bipartisan fashion, we are
able to work with the gentleman from New Jersey (Mr. Andrews) and
others to make sure that the vision that we have for America, to make
sure our young people have the chance, through this flexible system, to
be able to have more college loans and grants available, and that is
certainly the idea of why people sent us to Congress.
So I ask my colleagues to unanimously support it.
Mr. ANDREWS. Mr. Chairman, will the gentleman yield?
Mr. FOX of Pennsylvania. I yield to the gentleman from New Jersey.
Mr. ANDREWS. Mr. Chairman, I would like to thank my friend from
Pennsylvania for his support. I also wanted to make special note of the
cosponsorship of the gentleman from Wisconsin (Mr. Petri) of this
amendment and thank him for his help on it.
Mr. FOX of Pennsylvania. Mr. Chairman, reclaiming my time, the fact
is that this kind of amendment is what the American vision has been
working on where it is bipartisan, where it shows that across the aisle
when it comes to our children, we can work together for education and
for opportunity.
I ask again that my colleagues support this wholeheartedly.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from New Jersey (Mr. Andrews).
The amendment was agreed to.
Amendment No. 15 Offered by Mr. Andrews
Mr. ANDREWS. Mr. Chairman, I offer an amendment No. 15.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 15 offered by Mr. Andrews:
Page 163, strike out lines 16 and 17 and insert in lieu
thereof the following:
(p) Lenders-of-Last-Resort.--Section 428(j)(3) is amended--
[[Page H2582]]
(1) in subparagraph (A)--
(A) in the heading thereof, by striking ``during transition
to direct lending'';
(B) by striking out ``during the transition from the
Federal Family Education Loan Program under this part to the
Federal Direct Student Loan Program under part D of the
title,'' and inserting a comma;
(C) by inserting ``designated for a State'' immediately
after ``a guaranty agency''; and
(D) by inserting ``subparagraph (C) and immediately before
``section 422(c)(7),''; and
(2) by adding at the end thereof the following new
subparagraph:
``(C) The Secretary shall exercise the authority described
in subparagraph (A) only if the Secretary determines that
eligible borrowers are seeking and are unable to obtain loans
under this part, and that the guaranty agency designated for
that State has the capability to provide lender-of-last-
resort loans in a timely manner, in accordance with its
obligations under paragraph (1), but cannot do so without
advances provided by the Secretary under this paragraph. If
the Secretary makes the determinations described in the
preceding sentence and determines that it would be cost-
effective to do so, the Secretary may provide advances under
this paragraph to that guaranty agency. If the Secretary
determines that guaranty agency does not have such
capability, or will not provide such loans in a timely
fashion, the Secretary may provide such advances to enable
another guaranty agency, that the Secretary determines to
have such capability, to make lender-of-last-resort loans to
eligible borrowers in that State who are experiencing loan
access problems.''.
Mr. ANDREWS. Mr. Chairman, this amendment is an important priority of
the Department of Education and the administration, and I believe all
of us on both sides of the aisle want to clarify the status of the
Lender of Last Resort program.
I would like to first of all thank the gentleman from Pennsylvania
(Mr. Goodling), the chairman of the committee, and the gentleman from
California (Mr. McKeon) and their staffs for their cooperation, and of
course the gentleman from Missouri (Mr. Clay), and the gentleman from
Michigan (Mr. Kildee) and their staffs for their cooperation.
The purpose of this amendment is to make it clear that under the law,
when a student is unable to secure a bank-based loan or does not attend
a direct lending institution, that that student has the right under law
and under this bill to go to a guarantee agency or other credit
facilitators named in the bill as a lender of last resort.
Put simply, this is the safety net when all of the other mechanisms
fail to students not at a direct lending school. If there is a problem
obtaining a bank loan, this is the safety net that assures that man or
woman that a student loan is available under the terms and conditions
of this law.
It is my understanding that both sides of the aisle are in accord
with this objective, and I would be happy to yield to the gentleman
from California (Mr. McKeon), the subcommittee chairman at this time.
Mr. McKEON. Mr. Chairman, I want to thank the gentleman again for his
amendment. We have been working hard to avoid a disaster, and I am
hopeful that our bill will be passed and signed into law before we hit
the wall. But I think this makes good sense to make sure that in the
event that there is a disaster, we do have this money there available
for these lenders of last resort. So I am happy to support the
amendment.
Mr. ANDREWS. Mr. Chairman, I thank the gentleman for his cooperation.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from New Jersey (Mr. Andrews).
The amendment was agreed to.
Amendment No. 44 Offered by Mr. McGovern
Mr. McGOVERN. Mr. Chairman, I offer amendment No. 44.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 44 offered by Mr. McGovern:
Page 96, after line 7, insert the following new subsection
(and redesignate the succeeding subsections accordingly):
(f) Pell Grant Incentives.--Subpart 1 of part A of title IV
of the Higher Education Act of 1965 is amended by inserting
after section 401 (20 U.S.C. 1070a) the following new
section:
``SEC. 401A. PELL GRANT INCENTIVES.
``(a) Program Authority.--From the amounts appropriated
pursuant to subsection (d), the Secretary shall establish a
program to increase the Pell grant awards under section 401
during their first two academic years of undergraduate
education to students who graduate after May 1, 1998, in the
top 10 percent of their high school graduating class.
``(b) Amount of Increase.--The additional amount of Pell
grant that shall be awarded under this section to any student
who qualifies under this section shall be an amount equal to
the amount for which the student is eligible under section
401 (determined without regard to the provisions of this
section), except that if the amount appropriated pursuant to
subsection (d) is less than the amount required to award such
additional amounts to all such students, the additional
amount awarded to each such student under this section shall
be ratably reduced.
``(c) Determinations of Eligibility.--
``(1) Procedures established by regulation.--The Secretary
shall establish by regulation procedures for the
determination of eligibility of students for increased Pell
grant awards under this section. Such procedures shall
include measures to prevent any secondary school from
certifying more than 10 percent of it's students for
eligibility under this section.
``(2) Coordination with need analysis.--In prescribing
procedures under paragraph (1), the Secretary shall ensure
that the determination of eligibility and the amount of the
increase in the Pell grant award is determined in a timely
manner consistent with the requirements of section 482 and
the submission of the financial aid form required by section
483. For such purposes, the Secretary may provide that, for
the first of a student's two academic years of eligibility
under this section, class rank may be determined prior to
graduation, at such time and in such manner as the Secretary
may specify in the regulations prescribed under this
subsection.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to award increased Pell grants
under this section $240,000,000 for fiscal year 1999 and such
sums as may be necessary for each of the 4 succeeding fiscal
years.''.
Mr. McGOVERN. Mr. Chairman, the amendment I offer today provides both
an incentive and a reward for Pell-eligible students who pursue and
achieve academic excellence by graduating in the top 10 percent of
their high school class. Too often we exhort parents and students,
teachers and communities to do more, to do better, to do it all, but we
offer few incentives and even fewer rewards.
This amendment that I am offering today will provide those Pell-
eligible students who, against all odds, graduate in the top 10 percent
of their high school class, an achievement benefit for their first two
years of postsecondary education. The amount of that achievement
benefit will match the amount of the Pell Grant awarded to that
individual.
For example, Bill Smith graduates in the top 10 percent of his high
school class and receives a $900 Pell Grant. The achievement benefit
that matches that award is an additional $900 grant. So Bill Smith
receives Federal assistance of $1,800 for years 1 and 2 of his college
education, and his Pell Grant continues at $900 for years 3 and 4.
According to the Congressional Research Service, over 84,000 young
men and women nationwide would benefit from this achievement award.
This amendment will increase the affordability of a higher education
without increasing the debt of students and their families. But
everyone in this Chamber recognizes that we need to increase grant
assistance for higher education, not just at the Federal level, but at
the State and local level; not just in the public sector, but from the
private sector as well. My amendment is just one modest proposal to do
just that, while encouraging students to achieve the very highest
academic level.
This amendment increases the accessibility of a higher education and
expands the options of college choice available to students and their
families. This amendment will not alter the Pell Grant formula or
program. Let me emphasize that again. This amendment will not affect
the Pell Grant program or its funding. It will not penalize those Pell-
eligible students who do not graduate in the top 10 percent of their
class. Instead, it provides a matching grant, if you will, that would
double the amount of a student's Pell Grant award should the
achievement benefit become fully funded.
This amendment is endorsed by the American Council on Education, the
Association of Jesuit Colleges and Universities, and many others.
Regarding this amendment the Association of Jesuit Colleges and
Universities has stated that this program would send the encouraging
message to students struggling to achieve under difficult circumstances
that their hard
[[Page H2583]]
work and perseverance will be well rewarded.
The American Council on Education has said that early information
about the availability of increased grant assistance could have a
profoundly positive impact on students' academic performance and
aspirations.
No one knows better than low-income, college-bound students that the
cost of an education is often perceived as a major barrier to the
fulfillment of their dreams. We need to do all that we can to encourage
these students, especially those with exceptional ability and
determination, to strive for their ultimate potential in higher
education and beyond.
This amendment will require a separate appropriation, and in order to
be sensitive to the budget constraints in which we are all working, the
amendment includes a provision to rateably reduce the achievement
benefit based on the appropriations. What this means is that if the
full amount to carry out this provision is appropriated, then the
achievement benefit we will match will be 100 percent, dollar for
dollar.
{time} 2300
However if the appropriations were only half the amount needed, then
the achievement benefit would be equal to half the amount of the
student's Pell Grant, and so on.
Mr. Chairman I recognize and support current funding priorities in
higher education, to resolve the question of student loan interest
rates, to increase overall funding for Pell Grants, to establish the
High Hopes program and so on. But there will not be another opportunity
for 6 years to authorize the establishment of this grant benefit.
It is my hope over the next few years, we might explore this type of
achievement incentive. And if in fiscal year 2000 or 2001, we as a
Congress decide to fund such an achievement award, then we need to
create its authorization in this bill.
Mr. Chairman, this amendment is wholly subject to an appropriation.
It breaks no budget authority or spending caps. No one has been more
supportive of Pell Grants or grant assistance than the gentleman from
Pennsylvania (Chairman Goodling), the gentleman from Missouri (Mr.
Clay), or the gentleman from California (Mr. McKeon), or the gentleman
from Michigan (Mr. Kildee), and I want thank them for their leadership
and persistence on this issue.
Mr. Chairman, this amendment will reduce student debt, increase the
affordability and accessibility of a college education, motivate young
people to strive for academic excellence, and reassure families that a
college education is not out of financial reach for their determined,
hard-working daughter or son.
I hope that my House colleagues will support this amendment
overwhelmingly and establish this achievement benefit.
Mr. Chairman, I submit the following for the Record:
American Council on Education,
Washington, DC, February 17, 1998.
Hon. James P. McGovern,
U.S. House of Representatives,
Washington, DC.
Dear Representative McGovern: I write to express my
interest in and appreciation for the bill you are sponsoring,
the ``Incentives for Achievement Through Pell Grants Act,''
which will establish a program to increase Pell Grant awards
to students who graduate in the top 10 percent of their high
school class. This bill is clear evidence of your commitment
to providing greater access to higher education for students
from low- and middle-income families.
Your proposal to provide an incentive to students with
early information about the availability of an increased Pell
Grant could have a profoundly positive impact on students'
academic performances and aspirations. This will help to
mitigate students' concern that resources necessary to fund a
postsecondary education are beyond their financial reach, and
will instead motivate them to achieve greater academic
success.
I congratulate you for introducing this innovative
legislation. I look forward to working with you as
reauthorization of the Higher Education Act progresses.
Sincerely,
Terry W. Hartle,
Senior Vice President.
____
Association of
Jesuit Colleges and Universities,
Washington, DC, February 17, 1998.
Hon. James P. McGovern,
U.S. House of Representatives,
Washington, DC.
Dear Congressman McGovern: On behalf of the Association of
Jesuit Colleges and Universities, I want to commend and
support your initiative in introducing the ``Incentives for
Achievement Through Pell Grants Act,'' for needy students who
have demonstrated special achievement.
The doubling of the Pell Grant for recipients who graduate
in the top 10% of their high school class can provide both an
incentive and a reward for those students. This program would
send the encouraging message to students struggling to
achieve under difficult circumstances that their hard work
and perseverance will be rewarded.
The new Hope Tax Scholarship Credit and Life-Long Learning
Tax Credit assist middle income families in providing an
education for their children. Your program addresses the
needs of lower income families.
Pell Grants have long been a critical component of federal
student financial aid programs on our campuses. Our
association has consistently worked diligently to preserve
these and all campus-based programs at the same time we have
significantly increased our own institutional commitment to
financial aid for our students. Your new program very
importantly supplements these efforts, rather than replacing
them.
Our special thanks to you for this latest example of your
leadership, this time in support of deserving and needy
students who will help create our nation's future.
Sincerely and gratefully,
Charles L. Currie, S.J.,
President.
____
Assumption College News . . . Dr. Charles L. Flynn, Jr. Endorses Pell
Grant Legislation
Worcester.--Dr. Charles L. Flynn Jr., acting president and
provost of Assumption College, spoke in support of
Congressman James J. McGovern's Pell Grant legislation today.
Dr. Flynn remarked, ``On behalf of Assumption College, it
is my pleasure to commend Congressman McGovern for leading
the effort to increase Pell Grants. Pell is the federal
government's largest, most important program of need-based
financial aid. More than any other federal program, it
targets low and middle-income students.
``Congressman McGovern's proposal to create a `Double' Pell
Grant for students of high academic achievement is
particularly impressive. This proposal simultaneously
addresses two important national needs. First is the need to
make educational opportunity available to all citizens
without regard to family wealth. Second is the importance of
encouraging outstanding student achievement. Congressman
McGovern's legislation will help to keep the doors of higher
education open to students who need financial assistance; it
will also reward high school students who strive hard, learn
more, and earn better grades.
``Last year, 16 percent of Assumption students who applied
for financial aid were eligible to receive Pell Grants. The
average award to these students was $1,500. Those Pell Grants
were supplemented by other federal and state loans and
grants. And by far, the largest amount of financial aid came
to students and their families from the College itself. The
system I am describing, therefore, is a partnership of
colleges, state government, and the federal government. This
partnership is essential if we are to continue to be a nation
of true opportunity.
``Congressman McGovern, you are playing a vital role in the
Congress of the United States. At Assumption, we share your
view that Congress should do more to ensure opportunity for
low and middle-income students. I hope that everyone here
today will send a message to our congressional leadership
that the McGovern Bill is important, not only to Central
Massachusetts, but also to higher education nationally.
``Higher education serves several purposes. As chief
academic officer of this liberal arts college, I am
particularly aware of the humanizing role of a college
education. At Assumption, in reason and in faith, we prepare
citizens. We prepare students for the good use of their
talents, the responsible exercise of their rights, and the
fulfillment of their obligations to others. That is true for
our graduates at work, at home, and in the public square. In
that way, too, I am keenly aware of the importance of higher
education to the future of Central Massachusetts. If we are
to have a community of hope and economic opportunity, we must
have a highly skilled workforce. The McGovern Bill promises
to keep the doors of higher education wide open, and thus to
further both the noble and practical ends of our colleges and
universities.''
____
Statement of Paul J. Lynskey, Director of EDCENTRAL, Colleges of
Worcester Consortium
``Those of us who work with low income college bound
students know that the cost of an education is often
perceived as a major barrier. We need to do all that we can
to encourage these students especially those with exceptional
ability, to strive for their ultimate potential in higher
education and beyond.''
Mr. GOODLING. Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, the gentleman is correct when he says it would not take
from one low-income student and give to another student because it does
call for a separate authorization. However, if it got the second
authorization, then
[[Page H2584]]
the money would have to come from somewhere if they were going to
appropriate it.
This is the problem we get into. The Presidential Access Scholarship
Program in 1992 was designed to do just this. Now, it has never been
funded. It has never been funded simply because every time we raise a
Pell Grant by $100, it costs $300 million. So I rise in opposition to
this amendment for that reason.
The second reason that I would bring to the House's attention is the
fact that an A student here may be a B student in another school. There
is no question about that. And, therefore, we could be rewarding
someone who really is not doing all that well if they were in this
school. But they are in this school so they are doing quite well.
And so I would rise in opposition for those two reasons and remind
everyone again, if we get a separate authorization, which this would
do, and then the appropriators would happen to say, ``Gee, this does
not sound too bad,'' and they would appropriate, they would then have
to find money elsewhere in order to do that. And so I rise in
opposition to the amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Massachusetts (Mr. McGovern).
The question was taken; and the Chairman announced that the noes
appeared to have it.
Mr. McGOVERN. Mr. Speaker, I demand a recorded vote.
The CHAIRMAN. Pursuant to House Resolution 411, further proceedings
on the amendment offered by the gentleman from Massachusetts (Mr.
McGovern) will be postponed.
Are there further amendments to title IV?
Amendment No. 25 Offered by Mr. Gordon
Mr. GORDON. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 25 offered by Mr. Gordon:
Page 154, beginning on line 5, strike subparagraph (F)
through page 155, line 19, and insert the following:
``(F) Subject to paragraph (4), the special allowances paid
pursuant to this subsection on loans made on or after July 1,
1998 for which the applicable interest rate is determined
under section 427A(a) shall be computed--
``(i) by determining the bond equivalent rate of the
average of the quotes as reported by the Federal Reserve of
the 3-month commercial paper (financial) rate in effect for
each of the days in the quarter for which the rate is being
determined;
``(ii) by subtracting the applicable interest rate on such
loan from such applicable bond equivalent rate;
``(iii)(I) for Stafford loans during any period in which
principal need not be paid (whether or not such principal is
in fact paid) by reason of provision described in section
428(b)(1)(M) or 427(a)(2)(C), by adding 1.8 percent to the
resultant percent, (II) for Stafford loans during any other
periods, by adding 2.39 percent to the resultant percent, or
(III) or PLUS loans, by adding 3.1 percent to the resultant
percent; and
``(iv) by dividing the resultant percent by 4.''.
Mr. GORDON. Mr. Chairman, there have been a number of accolades,
well-deserved accolades given to the gentleman from Pennsylvania
(Chairman Goodling), the gentleman from Missouri (Mr. Clay), the
gentleman from California (Chairman McKeon), and the gentleman from
Michigan (Mr. Kildee). As I say, those are well-deserved and I just
have to say that it is just a pleasant experience tonight to see a
constructive committee working on an important issue and their
leadership I think is making the whole committee and the House work
together. It is just hopefully a model that we can follow some more in
this body. I hope we could do that in the future.
The amendment that the gentleman from Pennsylvania (Mr. Kanjorski)
and I have offered tonight will add greater efficiency to the
compromise that was reached by the Committee on Education and the
Workforce to address the 1998 interest rate problem. If nothing is
done, the change that is set to go into effect on July 1 would
destabilize the student loan program that has provided $240 billion to
students over the past 30 years resulting in a $25 billion increase in
the annual volume of loans for the Department of Education, which I
fear such a shift to the Department could create a complete collapse of
the student loan system. Then no student would be able to get a loan.
And if a student could not get a loan, the interest rate does not
matter.
I have concerns about the increasing volatility of the current and
proposed mechanism for determining the loan interest rates, the 91-day
T bill. As we all know, the budget is becoming balanced and we are
looking ahead to a surplus. This has caused a reduction in the issuance
of the 91-day T bill by the Treasury. In fact, the amount of 91-day T
bills auctioned weekly has declined 56 percent over the past year. This
volatility creates tremendous financial risk.
Mr. Chairman, this amendment would change the basis for the student
loan interest rates from the 91-day T bill to an index which is a large
and growing source of short-term financing, 3-month commercial paper.
And though we would make this change, the rate paid by the students and
returned to the lenders would be equal to the committee solution in
this bill. Let me repeat, the interest rate and the rate of return
would stay the same as they are in this bill.
This proposal does not hurt anyone, not students nor the government.
All it will do is provide a more efficient way for lenders to finance
the loans they are making. Commercial paper is a widely used index
which many U.S. corporations use for short-term financing. There has
been concern about this proposal incurring an additional Federal cost.
I have addressed these concerns and will tell the House that the
proposal actually saves money.
Mr. Chairman, for the last 8 years I have been working hard to
eliminate wasteful spending in the student loan programs making them
more efficient and effective. The change to commercial paper will allow
lenders to use a more efficient means for financing these loans. This
is a common sense proposal to ensure the longevity of our student loan
program.
I have had a number of conversations with the gentleman from
California (Mr. McKeon), our committee chairman, as well as our ranking
member, and I would like to take just a moment to address the gentleman
and ask for his view on the commercial paper amendment.
Mr. McKEON. Mr. Chairman, will the gentleman yield?
Mr. GORDON. I yield to the gentleman from California.
Mr. McKEON. Mr. Chairman, I appreciate the opportunity to engage in
this colloquy, and I was thinking back many months ago when the
gentleman from Tennessee (Mr. Gordon) and the gentleman from Michigan
(Mr. Kildee) and I drew many of these people together to begin the
process on this. Does the gentleman remember that meeting?
Mr. GORDON. Yes, sir.
Mr. McKEON. Mr. Chairman, it has been an interesting process and it
is good to be together on this part of it as we are moving this far
along on the issue. And it has been a real pleasure working with the
gentleman from Tennessee.
I want to thank the gentleman for his efforts to find the most
efficient index for student loan interest rates. I think it is clear to
everyone that indexing interest rates for these loans to the 10- or 20-
year bond rate just does not work. I believe we need to ensure access
to loans while reducing interest rates to students basing those loans
on the most efficient index.
As we move towards conference, I am committed to working towards the
inclusion of the most efficient index and examining commercial paper
within that context as part of the conference report.
Mr. KILDEE. Mr. Chairman, will the gentleman yield?
Mr. GORDON. I yield to the gentleman from Michigan.
Mr. KILDEE. Mr. Chairman, I too am interested in looking at
commercial paper as a possible index for student loan interest rates.
Unfortunately, the committee has not had enough time to thoroughly
assess the gentleman's proposal. The interest rate compromise is a
delicate one and any changes will have to be carefully studied.
I, along with the gentleman from California (Chairman McKeon), will
use the time between now and conference with the other body to assess
the option of using commercial paper as the index.
[[Page H2585]]
Mr. GORDON. Mr. Chairman, reclaiming my time, I thank the gentleman
from Michigan and the gentleman from California. With those encouraging
words, I ask unanimous consent to withdraw my amendment.
The CHAIRMAN. Without objection, the amendment is withdrawn.
There was no objection.
The CHAIRMAN. Are there further amendments to title IV.
Amendment No. 41 Offered by Mr. McKeon
Mr. McKEON. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment offered by Mr. McKeon:
Page 161, after line 9, insert the following new subsection
(and redesignate the succeeding subsections accordingly):
(j) Delay in Commencement of Repayment Period.--Section
428(b(7) is amended by inserting after subparagraph (C) the
following new subparagraph:
``(D) There shall be excluded from the 6 months determined
under subparagraph (A)(i) any period during which the student
was called or ordered to active duty in a reserve component
of the Armed Forces of the United States.''.
Mr. McKEON. Mr. Chairman, currently a student must begin repayment of
his or her student loan six months after he or she ceases to take
classes on at least a half-time basis. But a college student serving as
a reservist may be called to active duty for more than six months,
forcing him or her to begin repayment.
Mr. Chairman, it does not seem fair that a student called to serve
his or her country should be forced to begin repayment, especially when
they did not leave school by choice. This goes against the whole
purpose of the repayment and of the six-month grace period.
The amendment which I offer, along with the gentleman from Wisconsin
(Mr. Klug) would allow those student reservists to forgo prepayment
while serving on active duty. I urge all Members to support this
amendment.
Mr. KILDEE. Mr. Chairman, I move to strike the last word.
Mr. Chairman, as the father of two sons in the military, I find this
a very attractive amendment and I support it.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from California (Mr. McKeon).
The amendment was agreed to.
The CHAIRMAN. Are there further amendments to title IV?
Amendment No. 14 Offered by Mr. Andrews
Mr. ANDREWS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 14 offered by Mr. Andrews:
Page 156, after line 3, insert the following new section
(and redesignate the succeeding sections and conform the
table of contents accordingly):
SEC. 417. INCOME CONTINGENT REPAYMENT UNDER THE FFEL PROGRAM.
Part B of title IV is amended by inserting after section
427A (20 U.S.C. 1077a) the following new section:
``SEC. 427B. INCOME CONTINGENT REPAYMENT OPTION
``(a) Availability of Option.--
``(1) Individual loans.--An individual who has only one
loan outstanding under this part shall, not more than 6
months prior to the date on which the borrower's first
payment is due, be offered by the lender the option of
repaying the loan in accordance with this section.
``(2) Multiple loans.--An individual who has two or more
loans outstanding under this part may obtain a consolidation
loan under section 428C for the purposes of obtaining the
option of repaying the loan in accordance with this section.
``(3) Direct loans.--An individual who has one or more
loans under part D of this title may obtain income contingent
repayment pursuant to section 455(e).
``(4) Restriction of option to new borrowers.--
Notwithstanding paragraphs (1) through (3), the option of
repaying a loan in accordance with this section shall be
available only to borrowers who, on the date of enactment of
this section, do not have any outstanding balance of
principal or interest on any loan made under this part or
part D.
``(b) Terms of Repayment under Option.--
``(1) Loan obligations under option.--A loan that is
subject to repayment under this section shall be repaid in
installments that--
``(A) are determined in accordance with paragraph (2) for
each one year period beginning on July 1; and
``(B) notwithstanding the note or other written evidence of
the loan and subparagraphs (D) and (E) of section 428(b)(1),
shall continue to be paid until--
``(i) the borrower has repaid the principal and any accrued
or capitalized interest on the loan; or
``(ii) the remaining obligations of the borrower are
discharged under subsection (c).
``(2) Calculation of installments.--
``(A) Installment amounts.--The total amount that a
borrower shall be required to pay as installments on a loan
of such borrower that is subject to repayment under this
section is equal to--
``(i) one-fourth of the annual amount determined under
subparagraph (B), in the case of a loan that is repaid in
quarterly installments; or
``(ii) one-twelfth of such annual amount, in the case of a
loan that is repaid in monthly installments.
``(B) Annual amount.--The annual amount for a loan that is
subject to repayment under this section is determined for
each one year period beginning on July 1 of each calendar
year. The annual amount is determined by reference to the
taxable income of the borrower for the taxable year ending in
the calendar year preceding the calendar year in which the
determination is made. The annual amount is determined in
accordance with the following table:
Annual limit
------------------------------------------------------------------------
If the taxable income of the borrower is-- Then the annual amount is--
------------------------------------------------------------------------
Less than $20,000......................... 3% of taxable income
$20,001-$40,000........................... 5% of taxable income
$40,001-$60,000........................... 7% of taxable income
$60,001-$90,000........................... 10% of taxable income
$90,001-$120,000.......................... 15% of taxable income
$120,001 or more.......................... 20% of taxable income
------------------------------------------------------------------------
``(C) Special rule for joint returns.--If an individual who
is a borrower of a loan that is subject to repayment under
this section files a joint return for the taxable year on
which the annual amount is based, then the annual amount for
such individual is determined under subparagraph (B) by
treating the taxable income of such individual as equal to
one-half the taxable income indicated on such joint return.
``(3) Capitalization of unpaid interest.--If the amount
that any borrower pays as an installment under paragraph (2)
on a loan that is subject to repayment under this section is
less than the interest that has accrued since the preceding
installment, then the remaining unpaid interest shall be
added, not more frequently than quarterly, to the principal
amount of the loan. Such capitalization of interest shall not
be deemed to exceed the annual insurable limit on the account
of the borrower.
``(c) Discharge of Obligation.--
``(1) Unpaid balance remaining after 25 years.--If the
unpaid balance on a loan that is subject to repayment under
this section has not been repaid in full at the end of 25
years of repayment, then--
``(A) the Secretary shall repay the holder of such loan
such unpaid balance and the holder of the loans shall be
deemed to have a contractual right, as against the United
States, to receive from the Secretary such unpaid balance
without administrative delay after the receipt by the
Secretary of an accurate and complete request for payment;
and
``(B) such payment by the Secretary shall be applied to
discharge the borrower from any remaining obligation with
respect to the loan.
``(2) Unpaid balance.--For the purposes of paragraph (1),
the unpaid balance of a loan is the sum of unpaid principal
and unpaid accrued and capitalized interest, and any fees,
such as late charges, assessed on such loan in accordance
with the requirements of this part and the regulations
thereunder.
``(e) Information Needed for Collection.--
``(1) Access to taxpayer information.--The Secretary may
obtain such information as is reasonably necessary regarding
the taxable income of a borrower (and the borrower's spouse,
if applicable) of a loan that is subject to repayment under
this section for the purpose of determining the installment
caps under subsection (b)(2). Returns and return information
(as defined in section 6103 of the Internal Revenue Code of
1986) may be obtained under the preceding sentence only to
the extent authorized by section 6103(l)(13) of such Code.
``(2) Additional documents.--A borrower of a loan that is
subject to repayment under this section and for whom taxable
income is unavailable or does not reasonably reflect the
borrower's current income, shall provide to the Secretary
other documentation of income satisfactory to the Secretary.
``(3) Transmission of data to lenders.--The Secretary
shall, by regulation, establish procedures for the
transmission of data gathered under (1) and (2) to the lender
or holder of a loan that is subject to repayment under this
section.
``(4) Notification to borrowers.--The Secretary shall
establish procedures under which a borrower of a loan that is
subject to repayment under this section is notified of the
terms and conditions of such loan, including notification of
such borrower--
``(A) that the Internal Revenue Service will disclose to
the Secretary tax return information as authorized under
section 6103(l)(13) of the Internal Revenue Code of 1986; and
``(B) that if a borrower considers that special
circumstances, such as a loss of employment by the borrower
or the borrower's spouse, warrant an adjustment in the
borrower's loan repayment as determined using
[[Page H2586]]
the information described in subparagraph (A), or the
alternative documentation described in paragraph (2), the
borrower may contact the Secretary, who shall determine
whether such adjustment is appropriate, in accordance with
criteria established by the Secretary.
``(f) Definitions.--For purposes of this section:
``(1) Taxable income.--The taxable income of a borrower is
determined in the manner provided in section 63 of the
Internal Revenue Code of 1986.
``(2) Taxable year.--The term `taxable year' means the
taxable year of a taxpayer for purposes of subtitle A of such
Code.''.
Page 204, after line 5, insert the following new section
(and redesignate the succeeding sections and conform the
table of contents accordingly):
SEC. 438. INCOME CONTINGENT REPAYMENT UNDER THE FEDERAL
DIRECT LOAN PROGRAM.
Section 455(e) of the Higher Education Act of 1965 (20
U.S.C. 1087e(e)) is amended to read as follows:
``(e) Parallel income contingent repayment.--
``(1) In general.--The Secretary shall offer borrowers
under this part the option of repaying their loans in the
same manner as loans that are subject to repayment in
accordance with section 427B.
``(2) Exceptions.--The Secretary shall prescribe any
regulations necessary to implement the requirements of
paragraph (1).''.
Mr. ANDREWS. Mr. Chairman, this is the second amendment I am offering
on the issue of income-contingent or income-sensitive loans. Let me say
at the outset, and pursuant to my discussion with the subcommittee
staff of the gentleman from California (Mr. McKeon), I intend to simply
explain the concept and ask for unanimous consent to withdraw it, based
upon the assumption we can continue talking about this basic idea.
First, I wish to reiterate my appreciation for the acceptance of the
first amendment on this subject. I think it gives us an excellent base
on which to build. The purpose of this second amendment is to build on
that base by specifying two things. One is that I believe that loans
under the FFEL program should also have the income-contingent loan
feature without consolidation, as this bill would now call for. And
second, I believe in a different structure of income-sensitive
repayment. I think there should be a specific gradation where the
student's income is then tied to a percentage repayment.
My proposal calls for students making a taxable income of $20,000 or
less to pay 3 percent of their income as their repayment. Students
making $40,000 or less and down to $20,000, to pay 5 percent, and have
similar gradations beyond that.
I believe that when this issue is fully scored by the Congressional
Budget Office, it will show a very, very nominal cost, and yet have a
great benefit for students as it will permit them to repay their loans
in rising payments as their incomes rise. I believe another benefit of
this proposal will be a substantial reduction in loan defaults. This is
because the obligation of the student to pay will be more closely tied
to the ability of the student to pay.
Mr. Chairman, I am aware of the fact that there are jurisdictional
and budgetary issues that need to be discussed. I also know there are
some substantive disagreements, but I did want to get on the record my
adherence to this principle. Again, I express my appreciation for the
adoption of the basic idea and amendment in No. 16.
Mr. McKEON. Mr. Chairman, will the gentleman yield?
Mr. ANDREWS. I yield to the gentleman from California.
Mr. McKEON. Mr. Chairman, I want to thank the gentleman for
presenting his amendment, and withdrawing it, and we will continue to
work on that issue.
Mr. ANDREWS. Mr. Chairman, reclaiming my time, I ask unanimous
consent to withdraw my amendment.
The CHAIRMAN. Without objection, the amendment is withdrawn.
There was no objection.
The CHAIRMAN. Are there further amendments to title IV?
Amendment No. 39 Offered by Mr. Klink
Mr. KLINK. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 39 offered by Mr. Klink:
Page 164, after line 25, insert the following new
subsections:
(t) Notice to Institutions of Defaults.--
(1) Administrative and fiscal procedures.--Section
428(c)(2)(A) is amended by striking ``proof that reasonable
attempts were made'' and inserting ``proof that the
institution and the State licensing board were contacted and
other reasonable attempts were made''
(2) Reimbursement.--Section 428(c)(2)(G) (20 U.S.C.
1078(c)(2)(G)) is amended by striking ``certifies to the
Secretary that diligent attempts have been made'' and
inserting ``demonstrates to the Secretary that diligent
attempts, including direct contact with the institution and
the State licensing board, have been made.''.
(3) Notice to secretary and payment of loss.--The third
sentence of section 430(a) (20 U.S.C. 1080(a)) is amended by
inserting ``the institution and the State licensing board
were contacted and other'' after ``submit proof that''.
Modification to Amendment No. 39 Offered by Mr. Klink
Mr. KLINK. Mr. Chairman, I ask unanimous consent that the
modifications that we have at the desk be included in my amendment.
The CHAIRMAN. The Clerk will report the modification.
The Clerk read as follows:
Modification to amendment No. 39 offered by Mr. Klink:
Page 164, after line 25, insert the following new
subsection:
(t) Notice to Institutions of Defaults.--
(1) Administrative and fiscal procedures.--Section
428(c)(2)(A) is amended by striking ``proof that reasonable
attempts were made'' and inserting ``proof that the
institution was contacted and other reasonable attempts were
made''.
(2) Reimbursement.--Section 428(c)(2)(G) (20 U.S.C.
1078(c)(2)(G)) is amended by striking ``certifies to the
Secretary that diligent attempts have been made'' and
inserting ``demonstrates to the Secretary that diligent
attempts, including direct contact with the institution have
been made.''.
(3) Notice to secretary and payment of loss.--The third
sentence of section 430(a) (20 U.S.C. 1080(a)) is amended by
inserting ``the institution was contacted and other'' after
``submit proof that''.
Mr. KLINK (during the reading). Mr. Chairman, I ask unanimous consent
that the amendment be considered as read and printed in the Record.
The CHAIRMAN. Is there objection to the request of the gentleman from
Pennsylvania?
There was no objection.
The CHAIRMAN. Is there objection to the modification to the amendment
offered by the gentleman from Pennsylvania?
There was no objection.
{time} 2315
Mr. KLINK. Mr. Chairman, for my friend, we have taken out the line
about the State licensing boards. That was the agreement that we had on
the amendment. This is simply to say that before the loan goes into
default that we should have some communications, that the school should
be notified by the guaranty agency.
Mr. GOODLING. Mr. Chairman, will the gentleman yield?
Mr. KLINK. I yield to my friend, the gentleman from Pennsylvania.
Mr. GOODLING. Mr. Chairman, we accept the amendment.
Mr. KLINK. Mr. Chairman, I thank the gentleman. I always learned that
when the jury starts nodding their heads, you stop talking.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Pennsylvania (Mr. Klink).
The amendment was agreed to.
Amendment No. 40 Offered By Mr. Klink
Mr. KLINK. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 40 offered by Mr. Klink:
Page 177, after line 1, insert the following new
subparagraph (and redesignate the succeeding subparagraph
accordingly):
(A) by striking ``for the fiscal year for which the
determination is made and for the two succeeding fiscal
years'' and inserting ``for the period determined under
subparagraph (D);
Page 177, after line 14, insert the following new paragraph
(and redesignate the succeeding paragraphs accordingly):
(3) by adding at the end of paragraph (2) the following new
subparagraph:
``(D) An institution that is ineligible to participate
pursuant to a determination under paragraph (A) shall be
ineligible for a period beginning with the fiscal year for
which the determination is made and ending on the earlier
of--
``(1) the expiration of the two succeeding fiscal years; or
``(1) the date on which the final cohort default rates
published with respect to such institution are less than the
threshold percentage specified in subparagraph (B) for any
two of the three most recent fiscal years for which data are
available.'';
[[Page H2587]]
Mr. KLINK. Again, I really want to commend both chairmen for the
wonderful work that they have done, and the ranking members, too.
This is another common sense, I think a good government reform
amendment to the student loan program. I think it will save money. I
think it will reduce student loan defaults and help maintain student
access to educational resources.
This amendment is a little more complex. Currently, an institution of
higher education would become ineligible for participation in the
student loan program if it has three consecutive annual default rates
over 25 percent. That is very good. There really has to be some
accountability for the schools that cannot manage their default rates.
They should be held accountable.
An institution currently can regain its eligibility after 2 years if
it has one default rate under 25 percent during that period. I do not
think that is really enough incentive for schools to really make a
commitment to default management.
This amendment would offer another path for those schools to regain
their eligibility. If an ineligible institution can post two default
rates under 25 percent, it would then regain its eligibility regardless
of the time it has been ineligible. I want emphasis put on the rates,
not on the time served. We really want to bring the rates down.
The CBO has scored this amendment as having a very minimal cost. Let
me say this for the budget conscious: We think that providing an
incentive for schools to lower their default rate would mean better
management and fewer defaults, which would mean savings, I believe.
This amendment will, in fact, save money in the long run, and I would
urge my colleagues to support it.
I understand that the majority, if we would withdraw this amendment,
would work with us on this in conference. If that is the case, I would
yield to the gentleman from Pennsylvania (Mr. Goodling), the chairman,
to see if that is the agreement we have. If we could work with the
gentleman in conference on this, I would then withdraw the amendment.
Mr. GOODLING. Mr. Chairman, if the gentleman will yield, we would be
very happy to work with the gentleman on this.
Mr. KLINK. Mr. Chairman, I thank the gentleman. He is a gentleman, a
scholar, and a great friend from Pennsylvania, and I am happy to work
with him.
Mr. Chairman, I ask unanimous consent to withdraw the amendment.
The CHAIRMAN. Is there objection to the request of the gentleman from
Pennsylvania?
There was no objection.
The CHAIRMAN. The amendment is withdrawn.
Amendment No. 13 Offered by Mr. Andrews
Mr. ANDREWS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 13 offered by Mr. Andrews:
Page 154, line 18 strike ``2.8 percent'' and insert ``2.3
percent''.
Page 155, strike lines 2 and 3 and insert the following:
paragraph shall be applied by substituting `1.7 percent' for
`2.3 percent.'
In clause (iv) as amended by the Manager's amendment to
page 155, lines 12 though 23, relating to consolidation
loans, strike ``for 2.8 percent', subject'' and insert ``for
2.3 percent', subject''.
Mr. ANDREWS. Mr. Chairman, this Congress, working with President
Clinton and Vice-President Gore and Secretary Riley and the Department
of Education, I think has built a laudable record of achievement in
higher education. The Hope Scholarship tax credits that were enacted
last year are a matter that is benefiting millions of families across
the country. Virtually every family in my district has the opportunity
to benefit from it in one way or the other.
Working with this committee and this Congress, Pell grants are at
their highest level ever. More students are benefiting from Pell
grants, and those students who benefit are benefiting at a higher
level.
We have been able to enact and improve work-study programs and
national service and many, many other areas. The administration and the
Congress, I believe, have an exemplary record also in the area of
student loans. Loan default costs have fallen precipitously.
I think Members of both parties and this committee deserve a lot of
credit for that, working with the Department of Education. It is with
that context in mind that I think the administration's proposal on the
interest rate issue merits some consideration.
I realize that the gentleman from California (Mr. McKeon) and the
gentleman from Michigan (Mr. Kildee) and the gentleman from
Pennsylvania (Mr. Goodling) and other leaders of this committee have
worked to construct a very delicate balance on this compromise. For
that reason, it is not my intention to press this matter for a vote at
this time. It is, in fact, my intention to ask for unanimous consent to
withdraw the amendment at the conclusion of these remarks.
But I do believe, and I think that belief is shared by many others in
this body, that the administration's proposal of the subsidy number,
which is the 91-day T-bill rate plus 1.7 percent for in-school interest
and 2.3 percent for out-of-school interest, is a better number. That
truly represents the level at which this program could operate
efficiently for the lenders, profitably for the lenders, at a lower
cost for the students, and perhaps most importantly, at a lower cost
for the taxpayer.
I would repeat an admonition that the gentleman from South Carolina
(Mr. Spratt) made earlier this evening, that some of us have also
embraced, that there is a lingering question as to how this compromise
would be paid for.
I fully respect and appreciate the long-standing effort that the
leadership of this committee has made to construct this compromise. It
is not my desire to upset it or to be unduly critical of it.
I do wish to go on record, though, that I believe the administration
position is the right one. As we proceed in negotiations with the other
body and the administration, I would hope that we continue to have an
open mind about this. With the intention of withdrawing the amendment,
I would yield to either the full or subcommittee chairman at this
point.
Mr. McKEON. Mr. Chairman, if the gentleman will yield, I would be
happy to discuss this just shortly with the gentleman from New Jersey.
I wish we had the wisdom of Solomon.
Mr. ANDREWS. Does the gentleman mean the chairman of the Committee on
Rules?
Mr. McKEON. Yes, that is exactly who I was speaking about.
Mr. Chairman, I wish I could say this is a perfect number, but we
talk about banks and we talk about lending institutions, and each of
them has a different profit margin. Some of them this will drive out.
Some of them will be able to stay in. Some we could go to a lower
number and still keep some in and drive some out.
I think what we really need to look at is where is the risk. I guess
the driving pitfall for me has been we need to protect the students. My
concern is, as we drive banks out of the system, the ones that will get
hurt first will be the students that need the help the most.
I looked at weighing the risk. If you put the risk here, if we put
the number a little bit too high, the risk is that some banks will make
a little bit extra profit and pay a little bit more taxes; whereas if
we put the number too low and drive banks out, some of those students
that rely heavily on this, that are maybe not the 18 or 19-year-old
students, but there are some that come back that have been out in the
workplace and now come back, they are going to community colleges or
going to proprietary schools or going to night school, they really need
that loan or they really need that help. They are the ones I am most
concerned about in this process.
Mr. ANDREWS. Mr. Chairman, reclaiming my time, I freely acknowledge
and commend both the gentleman from Pennsylvania (Mr. Goodling), the
committee chairman, and the gentleman from California (Mr. McKeon), the
subcommittee chairman, for making significant reductions in payments to
both lenders and guaranty agencies in this and prior bills.
They certainly recognize the ability to have efficiencies. We may
disagree about where that efficiency lies, but I
[[Page H2588]]
certainly respect the effort and appreciate the time.
Mr. Chairman, I ask unanimous consent to withdraw the amendment.
The CHAIRMAN. Is there objection to the request of the gentleman from
Pennsylvania?
There was no objection.
The CHAIRMAN. The amendment is withdrawn.
The CHAIRMAN. Are there further amendments to title IV?
Amendment No. 12 offered by Mr. Andrews
Mr. ANDREWS. Mr. Chairman, I offer one more amendment listed as No.
12.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 12 offered by Mr. Andrews:
Page 153, before line 13, insert the following new
subsection (and redesignate the succeeding subsections
accordingly):
``(b) Consolidation Loans.--Notwithstanding any provision
of subsection (a), with respect to any consolidation loan
made under section 428C for which the first disbursement is
made on or after July 1, 1998, the applicable rate of
interest shall, during any 12-month period beginning on July
1 and ending on June 30, be determined on the preceding June
1 and be equal to--
``(1) the bond equivalent rate of 91-day Treasury bills
auctioned at the final auction held prior to such June 1;
plus
``(2) 2.3 percent, except that such rate shall not exceed
8.25 percent.
Mr. ANDREWS. Mr. Chairman, there is an issue here as to the interest
rate that students pay when they consolidate their loans, when they
consolidate their direct loans in this case. The question is whether or
not the students should pay a blended rate, which is to say the rate of
all of the loans that he or she is consolidating, averaged and blended
in as a weighted average, or whether the students should pay the
interest rate paid on newly issued direct loans.
I believe that the students should pay the interest rate on newly
issued direct loans. I do not believe there is a significant cost
consideration here. I think that this is effectively a benefit to
students in this way.
If interest rates in the long term continue to moderate or even drop,
as we have been fortunate to see in the last 3 or 4 years, I think
students should get the benefit of that. I think if rates dropped, then
students who consolidate their loan should get the same kind of benefit
that homeowners get when they refinance their home mortgage.
I understand that there are some issues of parity between the FFEL
Program and the direct loan program. I frankly would like to see those
issues resolved by giving persons who consolidate an FFEL loan the same
low rate that students who consolidate direct loans get. I think this
parity matter should be resolved in favor of the students rather than
the lenders or the government.
Having said that, I understand there are issues respecting the pay-
as-you-go rules here. I also understand the desire to promote the
continuing parity between the direct loan and guaranty loan programs.
With the understanding that this also is an issue that is open to
continued discussion among those of us in this House, the Senate, the
Department of Education and the administration, it would be my
intention to withdraw this amendment.
Mr. Chairman, I am happy to yield to the subcommittee chairman or
full committee chairman at this time.
Mr. McKEON. Mr. Chairman, I gave my speech last time, and I would
just like to thank the gentleman for his presentation and for
withdrawing his amendment.
Mr. ANDREWS. Would the gentleman like to accept the amendment?
Mr. McKEON. My colleague heard me. I thank the gentleman for
withdrawing the amendment.
Mr. ANDREWS. I appreciate the gentleman's indulgence.
Mr. Chairman, I ask unanimous consent to withdraw the amendment.
The CHAIRMAN. Is there objection to the request of the gentleman from
New Jersey?
There was no objection.
The CHAIRMAN. The amendment is withdrawn.
Are there further amendments to title IV?
The Clerk will designate title V.
The text of title V is as follows:
TITLE V--DEVELOPING INSTITUTIONS
SEC. 501. ESTABLISHMENT OF NEW TITLE V.
Title V is amended to read as follows:
``TITLE V--DEVELOPING INSTITUTIONS
``PART A--HISPANIC-SERVING INSTITUTIONS
``SEC. 501. PROGRAM AUTHORIZED.
``The Secretary shall provide grants and related assistance
to Hispanic-serving institutions to enable such institutions
to improve and expand their capacity to serve Hispanic and
other low-income students.
``SEC. 502. ELIGIBILITY; DEFINITIONS.
``(a) Definitions.--For the purpose of this part:
``(1) Hispanic-serving institution.--The term `Hispanic-
serving institution' means an institution of higher education
which--
``(A) is an eligible institution;
``(B) at the time of application, has an enrollment of
undergraduate full-time equivalent students that is at least
25 percent Hispanic students; and
``(C) provides assurances that not less than 50 percent of
its Hispanic students are low-income individuals.
``(2) Eligible institution.--The term `eligible
institution' means--
``(A) an institution of higher education--
``(i) which has an enrollment of needy students as required
by subsection (b) of this section;
``(ii) except as provided in section 522(b), the average
educational and general expenditures of which are low, per
full-time equivalent undergraduate student, in comparison
with the average educational and general expenditures per
full-time equivalent undergraduate student of institutions
that offer similar instruction;
``(iii) which is--
``(I) legally authorized to provide, and provides within
the State, an educational program for which such institution
awards a bachelor's degree; or
``(II) a junior or community college;
``(iv) which is accredited by a nationally recognized
accrediting agency or association determined by the Secretary
to be reliable authority as to the quality of training
offered or which is, according to such an agency or
association, making reasonable progress toward accreditation;
``(v) which meets such other requirements as the Secretary
may prescribe; and
``(vi) which is located in a State; and
``(B) any branch of any institution of higher education
described under subparagraph (A) which by itself satisfies
the requirements contained in clauses (i) and (ii) of such
subparagraph.
For purposes of the determination of whether an institution
is an eligible institution under this paragraph, the factor
described under subparagraph (A)(i) shall be given twice the
weight of the factor described under subparagraph (A)(ii).
``(3) Low-income individual.--The term `low-income
individual' means an individual from a family whose taxable
income for the preceding year did not exceed 150 percent of
an amount equal to the poverty level determined by using
criteria of poverty established by the Bureau of the Census.
``(4) Full-time equivalent students.--The term `full-time
equivalent students' means the sum of the number of students
enrolled full time at an institution, plus the full-time
equivalent of the number of students enrolled part time
(determined on the basis of the quotient of the sum of the
credit hours of all part-time students divided by 12) at
such institution.
``(5) Junior or community college.--The term `junior or
community college' means an institution of higher education--
``(A) that admits as regular students persons who are
beyond the age of compulsory school attendance in the State
in which the institution is located and who have the ability
to benefit from the training offered by the institution;
``(B) that does not provide an educational program for
which it awards a bachelor's degree (or an equivalent
degree); and
``(C) that--
``(i) provides an educational program of not less than 2
years that is acceptable for full credit toward such a
degree, or
``(ii) offers a 2-year program in engineering, mathematics,
or the physical or biological sciences, designed to prepare a
student to work as a technician or at the semiprofessional
level in engineering, scientific, or other technological
fields requiring the understanding and application of basic
engineering, scientific, or mathematical principles of
knowledge.
``(6) Educational and general expenditures.--For the
purpose of this part, the term `educational and general
expenditures' means the total amount expended by an
institution of higher education for instruction, research,
public service, academic support (including library
expenditures), student services, institutional support,
scholarships and fellowships, operation and maintenance
expenditures for the physical plant, and any mandatory
transfers which the institution is required to pay by law.
``(7) Endowment fund.--For the purpose of this part, the
term `endowment fund' means a fund that--
``(A) is established by State law, by an institution of
higher education, or by a foundation that is exempt from
Federal income taxation;
``(B) is maintained for the purpose of generating income
for the support of the institution; and
``(C) does not include real estate.
``(b) Enrollment of Needy Students.--For the purpose of
this part, the term `enrollment of needy students' means an
enrollment at an institution of higher education or a junior
or community college which includes--
``(1) at least 50 percent of the degree students so
enrolled who are receiving need-based assistance under title
IV of this Act in the second fiscal year preceding the fiscal
year for which the
[[Page H2589]]
determination is being made (other than loans for which an
interest subsidy is paid pursuant to section 428), or
``(2) a substantial percentage of students receiving Pell
Grants in the second fiscal year preceding the fiscal year
for which determination is being made, in comparison with the
percentage of students receiving Pell Grants at all such
institutions in the second fiscal year preceding the fiscal
year for which the determination is made, unless the
requirement of this subdivision is waived under section
522(a).
``SEC. 503. AUTHORIZED ACTIVITIES.
``(a) Types of Activities Authorized.--Grants awarded under
this part shall be used by Hispanic-serving institutions of
higher education to assist such institutions to plan,
develop, undertake, and carry out programs.
``(b) Authorized Activities.--Grants awarded under this
section shall be used for one or more of the following
activities:
``(1) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes, including
instructional and research purposes;
``(2) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and other
instructional facilities;
``(3) support of faculty exchanges, faculty development,
curriculum development, academic instruction, and faculty
fellowships to assist in attaining advanced degrees in their
field of instruction;
``(4) purchase of library books, periodicals, and other
educational materials, including telecommunications program
material;
``(5) tutoring, counseling, and student service programs
designed to improve academic success;
``(6) funds management, administrative management, and
acquisition of equipment for use in strengthening funds
management;
``(7) joint use of facilities, such as laboratories and
libraries;
``(8) establishing or improving a development office to
strengthen or improve contributions from alumni and the
private sector;
``(9) establishing or improving an endowment fund;
``(10) creating or improving facilities for Internet or
other distance learning academic instruction capabilities,
including purchase or rental of telecommunications technology
equipment or services;
``(11) establishing or enhancing a program of teacher
education designed to qualify students to teach in public
elementary and secondary schools;
``(12) establishing community outreach programs which will
encourage elementary and secondary school students to develop
academic skills and the interest to pursue postsecondary
education;
``(13) improving and expanding graduate and professional
opportunities for Hispanic students; and
``(14) other activities proposed in the application
submitted pursuant to section 504 that--
``(A) contribute to carrying out the purposes of this
section; and
``(B) are approved by the Secretary as part of the review
and acceptance of such application.
``(c) Endowment Fund Limitations.--
``(1) Portion of grant.--An institution may not use more
than 20 percent of its grant under this part for any fiscal
year for establishing or improving an endowment fund.
``(2) Matching required.--An institution that uses any
portion of its grant under this part for any fiscal year for
establishing or improving an endowment fund shall provide an
equal or greater amount for such purposes from non-Federal
funds.
``(3) Regulations.--The Secretary shall publish rules and
regulations specifically governing the use of funds for
establishing or improving an endowment fund.
``SEC. 504. APPLICATION PROCESS.
``(a) Institutional Eligibility.--Each Hispanic-serving
institution desiring to receive assistance under this part
shall submit to the Secretary such enrollment data as may be
necessary to demonstrate that it is a Hispanic-serving
institution, along with such other information and data as
the Secretary may by regulation require.
``(b) Applications.--Any institution which is determined by
the Secretary to be a Hispanic-serving institution (on the
basis of the information and data submitted under subsection
(a)) may submit an application for assistance under this
section to the Secretary. Such application shall include--
``(1) a 5-year plan for improving the assistance provided
by the Hispanic-serving institution to Hispanic and other
low-income students; and
``(2) such other information and assurance as the Secretary
may require.
``(c) Priority.--The Secretary shall give priority to
applications that contain satisfactory evidence that such
institution has entered into or will enter into a
collaborative arrangement with at least one local educational
agency or community-based organization having demonstrated
effectiveness to provide such agency with assistance (from
funds other than funds provided under this part) in reducing
Hispanic dropout rates, improving Hispanic rates of academic
achievement, and increasing the rates at which Hispanic high
school graduates enroll in higher education.
``(d) Special Rule.--For the purposes of this part, no
Hispanic-serving college or university which is eligible for
and receives funds under this part may concurrently receive
other funds under title III.
``SEC. 505. DURATION OF GRANT.
``(a) Award Period.--The Secretary may award a grant to an
eligible institution under this part for 5 years, except that
no institution shall be eligible to secure a subsequent 5-
year grant award under this part until two years have elapsed
since the expiration of its most recent 5-year grant award.
``(b) Limitations.--In awarding grants under this part the
Secretary shall give priority to applicants who are not
already receiving a grant under this part, except that for
the purpose of this subsection a grant under section
524(a)(1) shall not be considered a grant under this part.
``(c) Planning Grants.--Notwithstanding subsection (a), the
Secretary may award a grant to an eligible institution under
this part for a period of one year for the purpose of
preparation of plans and applications for a grant under this
part.
``PART B--GENERAL PROVISIONS
``SEC. 521. APPLICATIONS FOR ASSISTANCE.
``(a) Applications.--
``(1) Applications Required.--Any institution which is
eligible for assistance under this title shall submit to the
Secretary an application for assistance at such time, in such
form, and containing such information, as may be necessary to
enable the Secretary to evaluate its need for assistance.
Subject to the availability of appropriations to carry out
this title, the Secretary may approve an application for a
grant under this title only if the Secretary determines
that--
``(A) the application meets the requirements of subsection
(b);
``(B) the applicant is eligible for assistance in
accordance with the part of this title under which the
assistance is sought; and
``(C) the applicant's performance goals are sufficiently
rigorous as to meet the purposes of this title and the
performance objectives and indicators for this title
established by the Secretary pursuant to the Government
Performance and Results Act.
``(2) Preliminary applications.--In carrying out paragraph
(1), the Secretary shall develop a preliminary application
for use by eligible institutions applying under part A prior
to the submission of the principal application.
``(b) Contents.--An institution, in its application for a
grant, shall--
``(1) set forth, or describe how the institution will
develop, a comprehensive development plan to strengthen the
institution's academic quality and institutional management,
and otherwise provide for institutional self-sufficiency and
growth (including measurable objectives for the institution
and the Secretary to use in monitoring the effectiveness of
activities under this title);
``(2) set forth policies and procedures to ensure that
Federal funds made available under this title for any fiscal
year will be used to supplement and, to the extent practical,
increase the funds that would otherwise be made available for
the purposes of section 503, and in no case supplant those
funds;
``(3) set forth policies and procedures for evaluating the
effectiveness in accomplishing the purpose of the activities
for which a grant is sought under this title;
``(4) provide for such fiscal control and fund accounting
procedures as may be necessary to ensure proper disbursement
of and accounting for funds made available to the applicant
under this title;
``(5) provide (A) for making such reports, in such form and
containing such information, as the Secretary may require to
carry out the functions under this title and the Government
Performance and Results Act, including not less than one
report annually setting forth the institution's progress
toward achieving the objectives for which the funds were
awarded, and (B) for keeping such records and affording such
access thereto, as the Secretary may find necessary to assure
the correctness and verification of such reports;
``(6) provide that the institution will comply with the
limitations set forth in section 526;
``(7) describe in a comprehensive manner any proposed
project for which funds are sought under the application and
include--
``(A) a description of the various components of the
proposed project, including the estimated time required to
complete each such component;
``(B) in the case of any development project which consists
of several components (as described by the applicant pursuant
to subparagraph (A)), a statement identifying those
components which, if separately funded, would be sound
investments of Federal funds and those components which would
be sound investments of Federal funds only if funded under
this title in conjunction with other parts of the development
project (as specified by the applicant);
``(C) an evaluation by the applicant of the priority given
any proposed project for which funds are sought in relation
to any other projects for which funds are sought by the
applicant under this title, and a similar evaluation
regarding priorities among the components of any single
proposed project (as described by the applicant pursuant to
subparagraph (A));
``(D) a detailed budget showing the manner in which funds
for any proposed project would be spent by the applicant; and
``(E) a detailed description of any activity which involves
the expenditure of more than $25,000, as identified in the
budget referred to in subparagraph (D); and
``(8) include such other information as the Secretary may
prescribe.
``(c) Priority Criteria Publication Required.--The
Secretary shall publish in the Federal Register, pursuant to
chapter 5 of title 5, United States Code, all policies and
procedures required to exercise the authority set forth in
subsection (a). No other criteria, policies, or procedures
shall apply.
``(d) Eligibility Data.--The Secretary shall use the most
recent and relevant data concerning the number and percentage
of students receiving need-based assistance under title IV of
this Act in making eligibility determinations and shall
advance the base-year forward following each annual grant
cycle.
[[Page H2590]]
``SEC. 522. WAIVER AUTHORITY AND REPORTING REQUIREMENT.
``(a) Waiver Requirements; Need-Based Assistance
Students.--The Secretary may waive the requirements set forth
in section 502(a)(2)(A)(i) in the case of an institution--
``(1) which is extensively subsidized by the State in which
it is located and charges low or no tuition;
``(2) which serves a substantial number of low-income
students as a percentage of its total student population;
``(3) which is contributing substantially to increasing
higher education opportunities for educationally
disadvantaged, underrepresented, or minority students, who
are low-income individuals;
``(4) which is substantially increasing higher educational
opportunities for individuals in rural or other isolated
areas which are unserved by postsecondary institutions; or
``(5) wherever located, if the Secretary determines that
the waiver will substantially increase higher education
opportunities appropriate to the needs of Hispanic Americans.
``(b) Waiver Determinations; Expenditures.--(1) The
Secretary may waive the requirements set forth in section
502(a)(2)(A)(ii) if the Secretary determines, based
on persuasive evidence submitted by the institution, that
the institution's failure to meet that criterion is due to
factors which, when used in the determination of
compliance with such criterion, distort such
determination, and that the institution's designation as
an eligible institution under part A is otherwise
consistent with the purposes of such part.
``(2) The Secretary shall submit to the Congress every
other year a report concerning the institutions which,
although not satisfying the criterion contained in section
502(a)(2)(A)(ii), have been determined to be eligible
institutions under part A institutions which enroll
significant numbers of Black American, Hispanic, Native
American, Asian American, or Native Hawaiian students under
part A, as the case may be. Such report shall--
``(A) identify the factors referred to in paragraph (1)
which were considered by the Secretary as factors that
distorted the determination of compliance with section
502(a)(2)(A)(ii); and
``(B) contain a list of each institution determined to be
an eligible institution under part A including a statement of
the reasons for each such determination.
``SEC. 523. APPLICATION REVIEW PROCESS.
``(a) Review Panel.--All applications submitted under this
title by institutions of higher education shall be read by a
panel of readers composed of individuals selected by the
Secretary. The Secretary shall assure that no individual
assigned under this section to review any application has any
conflict of interest with regard to the application which
might impair the impartiality with which the individual
conducts the review under this section.
``(2) All readers selected by the Secretary shall receive
thorough instruction from the Secretary regarding the
evaluation process for applications submitted under this
title and consistent with the provisions of this title,
including--
``(A) an enumeration of the factors to be used to determine
the quality of applications submitted under this title; and
``(B) an enumeration of the factors to be used to determine
whether a grant should be awarded for a project under this
title, the amount of any such grant, and the duration of any
such grant.
``(b) Recommendations of Panel.--In awarding grants under
this title, the Secretary shall take into consideration the
recommendations of the panel made under subsection (a).
``(c) Notification.--Not later than June 30 of each year,
the Secretary shall notify each institution of higher
education making an application under this title of--
``(1) the scores given the applicant by the panel pursuant
to this section;
``(2) the recommendations of the panel with respect to such
application; and
``(3) the reasons for the decision of the Secretary in
awarding or refusing to award a grant under this title, and
any modifications, if any, in the recommendations of the
panel made by the Secretary.
``SEC. 524. COOPERATIVE ARRANGEMENTS.
``(a) General Authority.--The Secretary may make grants to
encourage cooperative arrangements with funds available to
carry out part A, between institutions eligible for
assistance under part A and between such institutions and
institutions not receiving assistance under this title for
the activities described in section 503 so that the resources
of the cooperating institutions might be combined and shared
to achieve the purposes of such part and avoid costly
duplicative efforts and to enhance the development of part A
eligible institutions.
``(b) Priority.--The Secretary shall give priority to
grants for the purposes described under subsection (a)
whenever the Secretary determines that the cooperative
arrangement is geographically and economically sound or will
benefit the applicant institution.
``(c) Duration.--Grants to institutions having a
cooperative arrangement may be made under this section for a
period as determined under section 505.
``SEC. 525. ASSISTANCE TO INSTITUTIONS UNDER OTHER PROGRAMS.
``(a) Assistance Eligibility.--Each institution which the
Secretary determines to be an institution eligible under part
A may be eligible for waivers in accordance with subsection
(b).
``(b) Waiver Applicability.--(1) Subject to, and in
accordance with, regulations promulgated for the purpose of
this section, in the case of any application by an
institution referred to in subsection (a) for assistance
under any programs specified in paragraph (2), the Secretary
is authorized, if such application is otherwise approvable,
to waive any requirement for a non-Federal share of the cost
of the program or project, or, to the extent not inconsistent
with other law, to give, or require to be given, priority
consideration of the application in relation to applications
from other institutions.
``(2) The provisions of this section shall apply to any
program authorized by title IV or VII of this Act.
``(c) Limitation.--The Secretary shall not waive, under
subsection (b), the non-Federal share requirement for any
program for applications which, if approved, would require
the expenditure of more than 10 percent of the appropriations
for the program for any fiscal year.
``SEC. 526. LIMITATIONS.
The funds appropriated under section 528 may not be used--
``(1) for a school or department of divinity or any
religious worship or sectarian activity;
``(2) for an activity that is inconsistent with a State
plan for desegregation of higher education applicable to such
institution;
``(3) for an activity that is inconsistent with a State
plan of higher education applicable to such institution; or
``(4) for purposes other than the purposes set forth in the
approved application under which the funds were made
available to the institution.
``SEC. 527. PENALTIES.
Whoever, being an officer, director, agent, or employee of,
or connected in any capacity with, any recipient of Federal
financial assistance or grant pursuant to this title
embezzles, willfully misapplies, steals, or obtains by fraud
any of the funds which are the subject of such grant or
assistance, shall be fined not more than $10,000 or
imprisoned for not more than 2 years, or both.
``SEC. 528. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) Authorizations.--There are authorized to be
appropriated to carry out part A, $80,000,000 for fiscal year
1999, and such sums as may be necessary for each of the 4
succeeding fiscal years.
``(b) Use of Multiple Year Awards.--In the event of a
multiple year award to any institution under this title, the
Secretary shall make funds available for such award from
funds appropriated for this title for the fiscal year in
which such funds are to be used by the recipient.''.
The CHAIRMAN. Are there amendments to title V?
Amendment No. 57 Offered By Mr. Clay
Mr. CLAY. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 57 offered by Mr. Clay:
Page 271, strike line 14 and insert the following:
``(A)(i) is an eligible institution; or
``(ii) is an institution of higher education (as such term
is defined in section 101(a)(2)) that provides a 4-year
baccalaureate program, is regionally accredited, and serves
at least 1,500 Hispanic students;
Mr. CLAY. Mr. Chairman, this is an amendment offered by the gentleman
from New York (Mr. Serrano) which would expand the definition of
Hispanic serving institutions. I understand that the majority is
willing to accept the amendment, so I will leave it at that.
Mr. GOODLING. Mr. Chairman, will the gentleman yield to me?
Mr. CLAY. I yield to the gentleman from Pennsylvania.
Mr. GOODLING. Mr. Chairman, we accept the amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Missouri (Mr. Clay).
The amendment was agreed to.
The CHAIRMAN. Are there further amendments to title V?
The Clerk will designate title VI.
The text of title VI is as follows:
TITLE VI--INTERNATIONAL AND GRADUATE EDUCATION PROGRAMS
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.
(a) Statutory Structure.--Title VI is amended--
(1) by striking
``PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES''
and inserting the following:
``PART A--INTERNATIONAL EDUCATION
``Subpart 1--International and Foreign Language Studies'';
(2) by striking
``PART B--BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS''
and inserting the following:
``Subpart 2--Business and International Education Programs'';
(3) by striking
``PART C--INSTITUTE FOR INTERNATIONAL PUBLIC POLICY''
and inserting the following:
``Subpart 3--Institute for International Public Policy''; and
(4) by striking
``PART D--GENERAL PROVISIONS''
and inserting the following:
``Subpart 4--General Provisions''.
(b) Findings and Purposes.--Section 601 (20 U.S.C. 1121) is
amended to read as follows:
[[Page H2591]]
``SEC. 601. FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds as follows:
``(1) The security, stability, and economic vitality of the
United States in a complex global era depend upon American
experts in and citizens knowledgeable about world regions,
foreign languages and international affairs, as well as on a
strong research base in these areas.
``(2) Advances in communications technology and the growth
of regional and global problems make knowledge of other
countries and the ability to communicate in other languages
more essential to the promotion of mutual understanding and
cooperation among nations and their peoples.
``(3) Dramatic post-Cold War changes in the world's
geopolitical and economic landscapes are creating needs for
American expertise and knowledge about a greater diversity of
less commonly taught foreign languages and nations of the
world.
``(4) Systematic efforts are necessary to enhance the
capacity of institutions of higher education in the United
States and to encourage a broader cross-section of
institutions of higher education to develop and expand
programs for producing graduates with international and
foreign language expertise and knowledge, and research on
such areas, in a variety of disciplines and at all levels of
graduate and undergraduate education.
``(5) Cooperative efforts among the Federal Government,
institutions of higher education, and the private sector are
necessary to promote the generation and dissemination of
information about world regions, foreign languages, and
international affairs throughout education, government,
business, civic, and nonprofit sectors in the United States.
``(b) Purposes.--The purposes of this part are--
``(1)(A) to support centers, programs and fellowships in
institutions of higher education in the United States for
producing increased numbers of trained personnel and research
in foreign languages, area and other international studies;
``(B) to develop a pool of international experts to meet
national needs;
``(C) to develop and validate specialized materials and
techniques for foreign language acquisition and fluency,
emphasizing (but not limited to) the less commonly taught
languages;
``(D) to promote access to research and training overseas;
and
``(E) to advance the internationalization of a variety of
disciplines throughout undergraduate and graduate education;
``(2) to support cooperative efforts promoting access to
and the dissemination of international and foreign language
knowledge, teaching materials and research throughout
education, government, business, civic and nonprofit sectors
in the United States through the use of advanced
technologies; and
``(3) to coordinate the programs of the Federal Government
in the areas of foreign language, area and other
international studies, including professional international
affairs education and research.''.
(c) Graduate and Undergraduate National Resource Centers.--
(1) National resource centers.--Section 602(a) (20 U.S.C.
1122(a)) is amended--
(A) in the heading, by striking ``National Language and
Area Centers Authorized'' and inserting ``National Resource
Centers for Foreign Language and Area or International
Studies Authorized'';
(B) in paragraph (1)(A), by striking ``comprehensive
language and area centers'' and inserting ``comprehensive
foreign language and area or international studies centers'';
(C) in paragraph (1)(B), by striking ``language and area
centers'' and inserting ``foreign language and area or
international studies centers''; and
(D) by striking paragraph (2) and inserting the following:
``(2) Authorized activities.--
``(A) In general.--Any grant made under paragraph (1) may
be used to pay all or part of the cost of establishing or
operating a center or program, in accordance with this
subsection.
``(B) Mandatory activities.--Activities to be conducted by
centers assisted under this subsection shall include--
``(i) support for the instruction of foreign languages and
the offering of courses in a variety of nonlanguage
disciplines that cover the center's subject area or topic,
and the incorporation of such instruction in baccalaureate
and graduate programs of study in a variety of disciplinary,
interdisciplinary, or professional fields;
``(ii) support for teaching and research materials,
including library acquisitions, in the center's subject area
or topic;
``(iii) programs of outreach or linkage with State and
local educational agencies, postsecondary education
institutions at all levels, professional schools, government,
business, media, or the general public; and
``(iv) program coordination and development, curriculum
planning and development, and student advisement.
``(C) Permissible activities.--Activities to be conducted
by centers assisted under this subsection may include--
``(i) support for the creation of faculty positions in
disciplines that are underrepresented in the center's
instructional program;
``(ii) establishment and maintenance of linkages with
overseas institutions of higher education for the purpose of
contributing to the teaching and research of the center;
``(iii) support for bringing visiting scholars and faculty
to the center to teach or conduct research;
``(iv) professional development of the center's faculty and
staff;
``(v) projects conducted in cooperation with other National
Resource Centers addressing themes of world regional, cross-
regional, international, or global importance;
``(vi) summer institutes in the United States or abroad
designed to provide language and area training in the
center's field or topic; and
``(vii) support for faculty, staff, and student travel in
foreign areas, regions, or countries, and for the development
and support of educational programs abroad for students.''.
(2) Graduate fellowships; expense limitations.--Section 602
is further amended by striking subsections (b) and (c) and
inserting the following:
``(b) Graduate Fellowships for Foreign Language and Area or
International Studies.--
``(1) Authority.--The Secretary is authorized to make
grants to institutions of higher education or combinations of
such institutions for the purpose of paying fellowships to
individuals undergoing advanced training in any center or
program approved by the Secretary under this part.
``(2) Eligible students.--Students receiving fellowships
described in paragraph (1) shall be individuals who are
engaged in an instructional program with stated performance
goals for functional foreign language use or in a program
developing such performance goals, in combination with area
studies, international studies, or the international aspects
of a professional studies program, including predissertation
level studies, preparation for dissertation research,
dissertation research abroad, and dissertation writing.
``(c) Rules With Respect to Expenses.--
``(1) Undergraduate travel.--No funds may be expended under
this part for undergraduate travel except in accordance with
rules prescribed by the Secretary setting forth policies and
procedures to assure that Federal funds made available for
such travel are expended as part of a formal program of
supervised study.
``(2) Graduate dependent and travel expenses.--Fellowships
awarded to graduate level recipients may include allowances
for dependents and for travel for research and study in the
United States and abroad.''.
(d) Language Resource Centers.--Section 603(a) (20 U.S.C.
1123(a)) is amended--
(1) by striking paragraph (5) and inserting the following:
``(5) a significant focus on the teaching and learning
needs of the less commonly taught languages, including an
assessment of the strategic needs, the determination of ways
to meet those needs nationally, and the publication and
dissemination of instructional materials in the less commonly
taught languages;'';
(2) by striking the period at the end of paragraph (6) and
inserting ``; and''; and
(3) by inserting after paragraph (6) the following new
paragraph:
``(7) the operation of intensive summer language institutes
to train advanced foreign language students, provide
professional development, and improve language instruction
through preservice and inservice language training for
teachers.''.
(e) Undergraduate International Studies and Foreign
Language Programs.--Section 604 (20 U.S.C. 1124) is amended--
(1) in the heading of subsection (a), by striking
``Incentives'' and all that follows through ``Programs'' and
inserting ``Program Incentives'';
(2) in subsection (a)(1)--
(A) by striking ``or combinations of such institutions'' in
the first sentence and inserting ``, combinations of such
institutions, or partnerships between nonprofit educational
organizations and such institutions,'';
(B) by striking ``a program'' and inserting ``programs'';
and
(C) by striking the second sentence and inserting the
following: ``Such grants shall be awarded for the purpose of
seeking to create new programs or to strengthen existing
programs in undergraduate area studies, foreign languages,
and other international fields.'';
(3) by striking paragraphs (2) and (3) and inserting the
following:
``(2) Use of funds.--Grants made under this section may be
used for Federal share of the cost of projects and activities
which are an integral part of such a program, such as--
``(A) planning for the development and expansion of
programs in undergraduate international studies, and foreign
languages and the internationalization of undergraduate
education;
``(B) teaching, research, curriculum development, and other
related activities;
``(C) training of faculty members in foreign countries;
``(D) expansion of existing and development of new
opportunities for learning foreign languages, including the
less commonly taught languages;
``(E) programs under which foreign teachers and scholars
may visit institutions as visiting faculty;
``(F) international education programs designed to develop
or enhance linkages between two- and four-year institutions
of higher education, or baccalaureate and postbaccalaureate
programs or institutions;
``(G) the development of an international dimension in
preservice and inservice teacher training;
``(H) the development of undergraduate educational programs
in locations abroad where such opportunities are not
otherwise available or which serve students for whom such
opportunities are not otherwise available and which provide
courses that are closely related to on-campus foreign
language and international curricula;
``(I) the integration of new and continuing education
abroad opportunities for undergraduate students into
curricula of specific degree programs;
[[Page H2592]]
``(J) the development of model programs to enrich or
enhance the effectiveness of educational programs abroad,
including predeparture and postreturn programs, and the
integration of educational programs abroad into the
curriculum of the home institution;
``(K) the expansion of library and teaching resources;
``(L) the development of programs designed to integrate
professional and technical education with area studies,
foreign languages, and other international fields;
``(M) the establishment of linkages overseas with
institutions of higher education and organizations that
contribute to the educational objectives of this subsection;
``(N) the conduct of summer institutes in foreign area and
other international fields to provide faculty and curriculum
development, including the integration of professional and
technical education with foreign area and other international
studies, and to provide foreign area and other international
knowledge or skills to government personnel or private sector
professionals in international activities;
``(O) the development of partnerships between institutions
of higher education and the private sector, government, and
elementary and secondary education institutions to enhance
international knowledge and skills; and
``(P) the use of innovative technology to increase access
to international education programs.
``(3) Non-federal share.--The non-Federal share of the cost
of the programs assisted under this subsection may be
provided in cash from the private sector corporations or
foundations in an amount equal to one-third of the total
requested grant amount, or may be provided as in-cash or in-
kind contribution from institutional and noninstitutional
funds, including State and private sector corporation or
foundation contributions, equal to one-half of the total
requested grant amount.'';
(4) by adding at the end of subsection (a) the following
new paragraphs:
``(5) Special rule.--The Secretary may waive or reduce the
required non-Federal share for title III-eligible
institutions which have submitted a grant application under
this section.
``(6) Evaluation criteria and report.--As a condition for
the award of any grant under this subsection, the Secretary
may establish criteria for evaluating programs and require an
annual report which evaluates the progress and performance of
students in such programs.''.
(5) by striking subsection (b);
(6) by redesignating subsection (c) as subsection (b); and
(7) by adding at the end the following new subsection:
``(c) Funding Support.--The Secretary may use no more than
10 percent of the total amount appropriated for this title,
other than amounts appropriated for part D, for carrying out
the purposes of this section.''.
(f) Intensive Summer Language Institutes.--Section 605 (20
U.S.C. 1124a) is repealed.
(g) Research; Studies; Annual report.--Section 606(a) (20
U.S.C. 1125(a)) is amended--
(1) in paragraph (4), by inserting before the semicolon at
the end the following: ``, area studies, or other
international fields'';
(2) by striking ``and'' at the end of paragraph (5);
(3) by striking the period at the end of paragraph (6) and
inserting ``; and''; and
(4) by inserting after paragraph (6) the following new
paragraph:
``(7) studies and surveys of the uses of technology in
foreign language, area and international studies programs.''.
(h) Periodicals.--Section 607 (20 U.S.C. 1125a) is amended
to read as follows:
``SEC. 607. TECHNOLOGICAL INNOVATION AND COOPERATION FOR
FOREIGN INFORMATION ACCESS.
``(a) Authority.--The Secretary is authorized to make
grants to institutions of higher education, public or
nonprofit private library institutions, or consortia of such
institutions, to develop innovative techniques or programs
using new electronic technologies to collect, organize,
preserve and widely disseminate information on world regions
and countries other than the United States that address the
nation's teaching and research needs in international
education and foreign languages.
``(b) Authorized Activities.--Grants under this section may
be used--
``(1) to facilitate access to or preserve foreign
information resources in print or electronic forms;
``(2) to develop new means of immediate, full-text document
delivery for information and scholarship from abroad;
``(3) to develop new means of shared electronic access to
international data;
``(4) to support collaborative projects of indexing,
cataloging, and other means of bibliographic access for
scholars to important research materials published or
distributed outside the United States;
``(5) to develop methods for the wide dissemination of
resources written in non-Roman language alphabets;
``(6) to assist teachers of less commonly taught languages
in acquiring, via electronic and other means, materials
suitable for classroom use; and
``(7) to promote collaborative technology based projects in
foreign languages, area and international studies among grant
recipients under this title.
``(c) Application.--Each institution or consortium desiring
a grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by
such information and assurances as the Secretary may
reasonably require.
``(d) Match Required.--The Federal share of the total cost
of carrying out a program supported by a grant under this
section shall not be more than 66\2/3\ percent. The non-
Federal share of such cost may be provided either in-kind or
in cash, and may include contributions from private sector
corporations or foundations.''.
(i) Development Grants.--Section 610 (20 U.S.C. 1127) is
amended by adding at the end the following new subsection:
``(d) Development Grants Authorized.--The Secretary is
encouraged to consider the establishment of new centers, and
may use at least 10 percent of the funds available for this
section to make grants for the establishment of such new
centers.''.
(j) Authorization of Appropriations.--Section 610A (20
U.S.C. 1128) is amended by striking ``1993'' and inserting
``1999''.
(k) Conforming Amendment.--Title VI is further amended by
redesignating sections 606, 607, 608, 609, 610, and 610A as
sections 605 through 610, respectively.
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
(a) Centers for International Business Education.--Section
612 (20 U.S.C. 1130-1) is amended--
(1) in subsection (c)(1)(B), by striking ``advanced'';
(2) in subsection (c)(1)(C), by striking ``evening or
summer programs,'' and inserting ``programs''; and
(3) in subsection (d)(2)(G), by inserting before the period
at the end the following: ``, such as a representative of a
community college in the region served by the center''.
(b) Authorization of Appropriations.--Section 614 (20
U.S.C. 1130b) is amended by striking ``1993'' each place it
appears and inserting ``1999''.
(c) Technical Amendment.--The heading of section 611 (20
U.S.C. 1130) is amended to read as follows:
``SEC. 611. FINDINGS AND PURPOSES.''.
SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.
(a) Minority Foreign Service Professional Development
Program.--Section 621(e) (20 U.S.C. 1131(e)) is amended by
striking ``one-fourth'' and inserting ``one-half''.
(b) Junior Year and Summer Abroad Program.--Section 622 (20
U.S.C. 1131a) is amended--
(1) in the heading of such section, by inserting ``AND
SUMMER'' after ``YEAR'';
(2) in subsection (a)--
(A) by striking ``shall conduct'' and inserting ``is
authorized to conduct'';
(B) by inserting ``and summer'' after ``junior year'' each
place it appears in the first and second sentences;
(C) by inserting ``in a junior year abroad program'' after
``Each student'' in the last sentence;
(3) in subsection (b)(2), by inserting ``or summer'' after
``junior year''; and
(4) in subsection (c)--
(A) by inserting ``or summer abroad program'' after
``junior year abroad program'' each place it appears; and
(B) by striking ``abroad or internship'' and inserting
``abroad, summer abroad, or internship''.
(c) Internships.--Section 624 (20 U.S.C. 1132c) is
amended--
(1) by striking ``The Institute'' and inserting ``(a) In
General.--The Institute''; and
(2) by adding at the end the following new subsection:
``(b) Postbaccalaureate Internships.--The Institute shall
enter into agreements with institutions of higher education
described in the first sentence of subsection (a) to conduct
internships in Washington, DC, for students who have
completed study for the baccalaureate degree. The
Internship program authorized by this subsection shall--
``(1) be designated to assist the students to prepare for a
master's degree program;
``(2) be carried out with the assistance of the Woodrow
Wilson Fellowship program;
``(3) contain work experience for the students designated
to contribute to the objectives set forth in paragraph (1);
and
``(4) contain such other elements as the Institute
determines will carry out the objectives of this
subsection.''.
(d) New Programs.--Title VI is further amended--
(1) by redesignating sections 625 through 627 (20 U.S.C.
1131d-1131f) as sections 627 through 629; and
(2) by inserting after section 624 the following new
sections:
``SEC. 625. INSTITUTIONAL DEVELOPMENT.
``(a) In General.--The Institute shall make grants, from
amounts available to it in each fiscal year, to Historically
Black Colleges and Universities, Hispanic-serving
Institutions, Tribally Controlled Indian Community Colleges,
and minority institutions, to enable such colleges,
universities, and institutions to strengthen international
affairs programs.
``(b) Application.--No grant may be made by the Institute
under this section unless an application is made by the
college, university, or institution at such time, in such
manner, and accompanied by such information as the Institute
may require.
``(c) Definitions.--As used in this section--
``(1) the term `Historically Black College and University'
has the same meaning given the term by section 322(2) of this
Act;
``(2) the term `Hispanic-serving Institution' has the same
meaning given the term by section 316(b)(1) of this Act;
``(3) the term `Tribally controlled Indian community
college' has the same meaning given that term by the Tribally
Controlled Community College Assistance Act of 1978; and
``(4) the term `minority institution' has the same meaning
given that term in section 347 of this Act.
``SEC. 626. INTERAGENCY COMMITTEE ON MINORITY CAREERS IN
INTERNATIONAL AFFAIRS.
``(a) Establishment.--There is established in the executive
branch of the Federal Government
[[Page H2593]]
an Interagency Committee on Minority Careers in International
Affairs composed of 7 members. The members of the Committee
shall be--
``(1) the Undersecretary for International Affairs and
Commodity Programs of the Department of Agriculture,
appointed by the Secretary of Agriculture;
``(2) the Assistant Secretary and Director General, the
Commercial Service of the Department of Commerce, appointed
by the Secretary of Commerce;
``(3) the Undersecretary of Defense for Personnel and
Readiness of the Department of Defense, appointed by the
Secretary of Defense;
``(4) the Assistant Secretary for Postsecondary Education
in the Department of Education, appointed by the Secretary of
Education;
``(5) the Director General of the Foreign Service of the
Department of State, appointed by the Secretary of State;
``(6) the General Counsel of the Agency for International
Development, appointed by the Administrator; and
``(7) the Associate Director for Educational and Cultural
Affairs of the United States Information Agency, appointed by
the Director.
``(b) Functions.--The Interagency Committee established by
this section shall--
``(1) advise the Secretary and the Institute with respect
to programs authorized by this part; and
``(2) promote policies in each department and agency
participating on the Committee that are designed to carry out
the objectives of this part.''.
(e) Authorization.--Section 629 (20 U.S.C. 1131f) (as
redesignated by subsection (d)) is amended by striking
``1993'' and inserting ``1999''.
SEC. 604. GENERAL PROVISIONS.
(a) Definitions.--Section 631(a) (20 U.S.C. 1132(a)) is
amended--
(1) by striking ``and'' at the end of paragraph (7);
(2) by striking the period at the end of paragraph (8) and
inserting ``; and''; and
(3) by inserting after paragraph (8) the following new
paragraphs:
``(9) the term `internationalization of undergraduate
education' means the incorporation of foreign languages and
area and international studies perspectives in any
undergraduate course or curriculum in order to provide
international content for that course of study; and
``(10) the term `educational programs abroad' means
programs of study, internships, or service learning outside
the United States which are part of a foreign language or
other international curriculum at the undergraduate or
graduate education levels.''.
(b) Repeal.--Section 632 (20 U.S.C. 1132-1) is repealed.
SEC. 605. TRANSFER AND REAUTHORIZATION OF GRADUATE ASSISTANCE
IN AREAS OF NATIONAL NEED PROGRAM.
(a) Amendment.--Title VI is amended by adding at the end
the following new part:
``PART B--GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED
``SEC. 651. PURPOSE.
``In order to sustain and enhance the capacity for graduate
education in areas of national need, it is the purpose of
this part to provide, through academic departments and
programs of institutions of higher education, a fellowship
program to assist graduate students of superior ability who
demonstrate financial need.
``SEC. 652. GRANTS TO ACADEMIC DEPARTMENTS AND PROGRAMS OF
INSTITUTIONS.
``(a) Grant Authority.--
``(1) In general.--The Secretary shall make grants to
academic departments and programs and other academic units of
institutions of higher education that provide courses of
study leading to a graduate degree in order to enable such
institutions to provide assistance to graduate students in
accordance with this part. The Secretary shall coordinate the
administration and regulation of programs under this part
with other Federal programs providing graduate assistance to
minimize duplication and improve efficiency.
``(2) Additional grants.--The Secretary may also make
grants to such departments and programs and to other units of
institutions of higher education granting graduate degrees
which submit joint proposals involving nondegree granting
institutions which have formal arrangements for the support
of doctoral dissertation research with degree-granting
institutions. Nondegree granting institutions eligible for
awards as part of such joint proposals include any
organization which--
``(A) is described in section 501(c)(3) of the Internal
Revenue Code of 1986, and is exempt from tax under section
501(a) of such Code;
``(B) is organized and operated substantially to conduct
scientific and cultural research and graduate training
programs;
``(C) is not a private foundation;
``(D) has academic personnel for instruction and counseling
who meet the standards of the institution of higher education
in which the students are enrolled; and
``(E) has necessary research resources not otherwise
readily available in such institutions to such students.
``(b) Award and Duration of Grants.--
``(1) Awards.--The principal criterion for the allocation
of awards shall be the relative quality of the graduate
programs presented in competing applications. Consistent with
an allocation of awards based on quality of competing
applications, the Secretary shall, in making such grants,
promote an equitable geographic distribution among eligible
public and private institutions of higher education.
``(2) Duration.--The Secretary shall approve a grant
recipient under this part for a 3-year period. From the sums
appropriated under this part for any fiscal year, the
Secretary shall not make a grant to any academic department
or program of an institution of higher education of less than
$125,000 or greater than $750,000 per fiscal year.
``(3) Reallotment.--Whenever the Secretary determines that
an academic department or program of an institution of higher
education is unable to use all of the amounts available to it
under this part, the Secretary shall, on such dates during
each fiscal year as the Secretary may fix, reallot the
amounts not needed to academic departments and programs of
institutions which can use the grants authorized by this
part.
``SEC. 653. INSTITUTIONAL ELIGIBILITY.
``(a) Eligibility Criteria.--Any academic department or
program of an institution of higher education that offers a
program of postbaccalaureate study leading to a graduate
degree in an area of national need (as designated under
subsection (b)) may apply for a grant under this part. No
department or program shall be eligible for a grant unless
the program of postbaccalaureate study has been in existence
for at least 4 years at the time of application for
assistance under this part.
``(b) Designation of Areas of National Need.--After
consultation with appropriate Federal and nonprofit agencies
and organizations, the Secretary shall designate areas of
national need. In making such designations, the Secretary
shall take into account the extent to which the interest is
compelling, the extent to which other Federal programs
support postbaccalaureate study in the area concerned, and an
assessment of how the program could achieve the most
significant impact with available resources.
``SEC. 654. CRITERIA FOR APPLICATIONS.
``(a) Selection of Applications.--The Secretary shall make
grants to academic departments and programs of institutions
of higher education on the basis of applications submitted in
accordance with subsection (b). Applications shall be ranked
on program quality by review panels of nationally recognized
scholars and evaluated on the quality and effectiveness of
the academic program and the achievement and promise of the
students to be served. To the extent possible (consistent
with other provisions of this section), the Secretary shall
make awards that are consistent with recommendations of the
review panels.
``(b) Contents of Applications.--An academic department or
program of an institution of higher education, in its
application for a grant, shall--
``(1) describe the current academic program of the
applicant for which the grant is sought;
``(2) provide assurances that the applicant will provide,
from other non-Federal funds, for the purposes of the
fellowship program under this part an amount equal to at
least 25 percent of the amount of the grant received under
this part, which contribution may be in cash or in kind
fairly valued;
``(3) describe the number, types, and amounts of the
fellowships that the applicant intends to offer under the
grant;
``(4) set forth policies and procedures to assure that, in
making fellowship awards under this part, the institution
will make awards to individuals who--
``(A) have financial need, as determined under part F of
title IV;
``(B) have excellent academic records in their previous
programs of study; and
``(C) plan to pursue the highest possible degree available
in their course of study;
``(5) set forth policies and procedures to ensure that
Federal funds made available under this part for any fiscal
year will be used to supplement and, to the extent practical,
increase the funds that would otherwise be made available for
the purpose of this part and in no case to supplant those
funds;
``(6) provide assurances that, in the event that funds made
available to the academic department or program under this
part are insufficient to provide the assistance due a student
under the commitment entered into between the academic
department or program and the student, the academic
department or program will, from any funds available to it,
fulfill the commitment to the student;
``(7) provide that the applicant will comply with the
limitations set forth in section 655;
``(8) provide assurances that the academic department will
provide at least 1 year of supervised training in instruction
for students; and
``(9) include such other information as the Secretary may
prescribe.
``SEC. 655. AWARDS TO GRADUATE STUDENTS.
``(a) Commitments to Graduate Students.--
``(1) In general.--An academic department or program of an
institution of higher education shall make commitments to
eligible graduate students as defined in section 484
(including students pursuing a doctoral degree after having
completed a master's degree program at an institution of
higher education) at any point in their graduate study to
provide stipends for the length of time necessary for a
student to complete the course of graduate study, but in no
case longer than 3 years.
``(2) Special rule.--No such commitments shall be made to
students under this part unless the academic department or
program has determined adequate funds are available to
fulfill the commitment either from funds received or
anticipated under this part, or from institutional funds.
``(b) Amount of Stipends.--The Secretary shall make
payments to institutions of higher education for the purpose
of paying stipends to individuals who are awarded fellowships
under this part. The stipends the Secretary establishes shall
reflect the purpose of this program to encourage highly
talented students to undertake graduate study as described in
this part. In the
[[Page H2594]]
case of an individual who receives such individual's first
stipend under this part in academic year 1999-2000 or any
succeeding academic year, such stipend shall be set at a
level of support equal to that provided by the National
Science Foundation graduate fellowships, except such amount
shall be adjusted as necessary so as not to exceed the
fellow's demonstrated level of need as determined under part
F of title IV.
``(c) Treatment of Institutional Payments.--An institution
of higher education that makes institutional payments for
tuition and fees on behalf of individuals supported by
fellowships under this part in amounts that exceed the
institutional payments made by the Secretary pursuant to
section 656(a) may count the excess of such payments toward
the amounts the institution is required to provide pursuant
to section 654(b)(2).
``(d) Academic Progress Required.--Notwithstanding the
provisions of subsection (a), no student shall receive an
award--
``(1) except during periods in which such student is
maintaining satisfactory progress in, and devoting
essentially full time to, study or research in the field in
which such fellowship was awarded, or
``(2) if the student is engaging in gainful employment
other than part-time employment involved in teaching,
research, or similar activities determined by the institution
to be in support of the student's progress towards a degree.
``SEC. 656. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION.
``(a) Institutional Payments.--(1) The Secretary shall (in
addition to stipends paid to individuals under this part) pay
to the institution of higher education, for each individual
awarded a fellowship under this part at such institution, an
institutional allowance. Except as provided in paragraph (2),
such allowance shall be--
``(A) $10,000 annually with respect to individuals who
first received fellowships under this part prior to academic
year 1999-2000; and
``(B) with respect to individuals who first receive
fellowships during or after academic year 1999-2000--
``(i) $10,000 for the academic year 1999-2000; and
``(ii) for succeeding academic years, $10,000 adjusted
annually thereafter in accordance with inflation as
determined by the Department of Labor's Consumer Price Index
for the previous calendar year.
``(2) The institutional allowance paid under paragraph (1)
shall be reduced by the amount the institution charges and
collects from a fellowship recipient for tuition and other
expenses as part of the recipient's instructional program.
``(b) Use for Overhead Prohibited.--Funds made available
pursuant to this part may not be used for the general
operational overhead of the academic department or program.
``SEC. 657. CONTINUATION AWARDS.
``Before making new awards under this part for any fiscal
year, the Secretary shall, as appropriate, making
continuation awards to recipients of awards under parts B, C,
and D of title IX as in effect prior to the enactment of the
Higher Education Amendments of 1998.
``SEC. 658. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated $40,000,000 for
fiscal year 1999 and such sums as may be necessary for each
of the 4 succeeding fiscal years to carry out this part.''.
(b) Repeal.--Title IX (20 U.S.C. 1134 et seq.) is repealed.
The CHAIRMAN. Are there any amendments to title VI?
Amendment No. 21 Offered By Mr. Kildee
Mr. KILDEE. Mr. Chairman, I offer an amendment on behalf of the
gentleman from California (Mr. Farr).
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 21 offered by Mr. Kildee:
Page 310, strike line 3 and insert the following (and
redesignate the succeeding paragraph accordingly):
(3) in subsection (c)(2)--
(A) by striking ``and'' at the end of subparagraph (E);
(B) by redesignating subparagraph (F) as subparagraph (G);
and
(C) by inserting after subparagraph (E) the following new
subparagraph;
``(F) professional graduate degrees in translation and
interpretation; and''; and
Mr. KILDEE. Mr. Chairman, I will be very brief. This provides funds
under section F for professional graduate degrees in translation and
interpretation. It adds those being eligible for funds.
Mr. GOODLING. Mr. Chairman, will the gentleman yield to me?
Mr. KILDEE. I yield to the gentleman from Pennsylvania.
Mr. GOODLING. Mr. Chairman, we accept the amendment.
Mr. KILDEE. Mr. Chairman, I thank the gentleman for accepting the
amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Michigan (Mr. Kildee).
The amendment was agreed to.
The CHAIRMAN. Are there further amendments to title VI?
The Clerk will designate title VII.
The text of title VII is as follows:
TITLE VII--CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC
FACILITIES
SEC. 701. EXTENSION OF PRIOR RIGHTS AND OBLIGATIONS.
Section 702(a) (20 U.S.C. 1132a-1(a)) is amended by
striking ``fiscal year 1993'' and inserting ``fiscal year
1999''.
SEC. 702. REPEAL OF PART A.
(a) Repeal.--Part A of title VII (20 U.S.C. 1132b et seq.)
is repealed.
(b) Conforming Amendments.--
(1) Section 701(b) (20 U.S.C. 1132a(b)) is amended by
striking ``part A or B'' and inserting ``part B''.
(2) Part B of title VII is amended by striking section 726
(20 U.S.C. 1132c-5).
(3) Section 781 (20 U.S.C. 1132i) is amended by striking
``part A of this title, or'' each place it appears.
SEC. 703. EXTENSION OF AUTHORIZATION OF PART B.
Section 727(c) (20 U.S.C. 1132c-6(c)) is amended by
striking ``fiscal year 1993'' and inserting ``fiscal year
1999''.
SEC. 704. EXTENSION OF AUTHORIZATION OF PART C.
Section 735 (20 U.S.C. 1132d-4) is amended by striking
``fiscal year 1993'' and inserting ``fiscal year 1999''.
Mr. GOODLING. Mr. Chairman, I move that the Committee do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Riggs) having assumed the chair, Mr. Gutknecht, Chairman of the
Committee of the Whole House on the State of the Union, reported that
that Committee, having had under consideration the bill (H.R. 6) to
extend the authorization of programs under the Higher Education Act of
1965, and for other purposes, had come to no resolution thereon.
____________________