[Congressional Record Volume 144, Number 133 (Tuesday, September 29, 1998)]
[Senate]
[Pages S11069-S11080]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         HIGHER EDUCATION AMENDMENTS OF 1998--CONFERENCE REPORT

  The PRESIDING OFFICER. Under the previous order, the Senate will now 
proceed to the consideration of the conference report accompanying H.R. 
6, which the clerk will report.
  The legislative clerk read as follows:

       The committee on conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     6) have agreed to recommend and do recommend to their 
     respective Houses this report, signed by a majority of the 
     conferees.

  The PRESIDING OFFICER. The Senate will proceed to the consideration 
of the conference report.
  (The conference report is printed in the House proceedings of the 
Record of September 25, 1998.)
  The PRESIDING OFFICER. Time for debate on the conference report is 
limited to 30 minutes equally divided.
  The Senator from Vermont is recognized.


                         Privilege of the Floor

  Mr. JEFFORDS. Mr. President, I ask unanimous consent that Pam Moran, 
a fellow with the Committee on Labor and Human Resources, be allowed 
the privileges of the floor during consideration of the conference 
report accompanying H.R. 6, the Higher Education Amendments of 1998.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. JEFFORDS. Mr. President, I think all you need to do is take a 
look at the conference report as it sits on the desk to understand the 
amount of work that has gone into this bill. This is an extremely 
important bill, and I am extremely pleased that the Senate is on the 
verge of sending to the President the Higher Education Amendments of 
1998.
  Today marks the culmination of 18 months of hard work that, for me, 
began with the Labor Committee's hearing in Burlington, Vermont last 
February.

[[Page S11070]]

  The Higher Education Act is among the most significant statutes under 
the jurisdiction of the Committee on Labor and Human Resources. Since 
its inception in 1965, the Act has been focused on enhancing the 
opportunities of students to pursue postsecondary education. The grant, 
loan, and work study assistance made available by this Act has made the 
difference for countless millions in pursuing their dreams for a better 
life. The legislation we are considering today builds on the proud 
legacy of this Act.
  In the face of rising college costs, Congress will provide students 
with the lowest cost loans in nearly two decades. With increasing 
concern about the quality of our nation's teachers, this bill will take 
giant steps in improving teacher preparation. And with students, 
parents, and--frankly--Senators concerned about the delivery of student 
aid, this bill completely overhauls the federal role by placing it in 
the hands of a professional and accountable agency within the 
Department of Education.
  Getting to this point has been a challenging, but rewarding, journey. 
The process in both the House and Senate has been characterized by a 
spirit of bipartisanship, with members sharing the basic objective of 
making higher education programs work better for students and their 
families. I commend the work of the chairman of the House Committee on 
Education and the Workforce, Representative Bill Goodling, and the 
committee's ranking member Representative Bill Clay. The House 
subcommittee leadership, Representative Buck McKeon, and ranking member 
Representative Dale Kildee have also done a yeoman's job throughout the 
process.
  I would also like to acknowledge in particular the contributions of 
the labor committee's ranking minority member, Senator Kennedy, and the 
efforts of Senator Coats and of Senator Dodd. From the beginning, these 
three members have been steadfast in their commitment to work through 
differences and to craft a solid piece of legislation.
  At the start of the reauthorization process, we set out to achieve a 
number of important goals designed to strengthen higher education 
programs. I am pleased to say that this conference report achieves the 
major objectives identified at the beginning of our efforts: to assist 
students, to improve the quality of teaching, to maintain two viable 
loan programs, and to improve the delivery of student financial aid.
  First, the final bill preserves the focus on students--who are the 
primary reason we have a Higher Education Act in the first place. 
Students now in school will be assured of receiving the lowest interest 
rate in nearly two decades on their loans.
  Students now in high school who aspire to a college education will 
benefit from an expanded early intervention program known as GEAR UP, 
as well as continuing to receive services from the time-tested and 
highly regarded TRIO programs. The new GEAR UP program combines 
features of the existing National Early Intervention Scholarship 
Program, which I sponsored in 1992, with recommendations proposed by 
the Administration and included in the House bill. The GEAR UP program 
preserves the best features of the program now operating successfully 
in 9 states, while expanding the pool of participants and approaches 
involved in early intervention.
  Students who have graduated and are faced with exceptionally high 
loan burdens will be able to take advantage of extended repayment 
options under the guaranteed loan program. In addition, the measure 
provides a four-month window within which students may obtain Direct 
consolidation loans at an interest rate set at the 91-day Treasury bill 
rate plus 2.3 percent.
  Recognizing the toll which ever increasing colleges costs are placing 
on students, the bill builds on recommendations of the National 
Commission on the Cost of Higher Education so that students and their 
families can obtain useful cost information.
  Second, perhaps the most exciting and far-reaching innovation in this 
legislation is its provisions dealing with teacher preparation. 
Numerous small, categorical--and unfunded--teacher training programs 
are repealed and replaced with a comprehensive model for change and 
improvement. The teacher quality provisions included in Title II of 
H.R. 6 are an important first step towards really improving teacher 
training. Working at both the state level to promote system-wide 
reforms and at the local level to develop partnerships to enhance the 
quality of teacher training, the bill offers a comprehensive and 
systematic approach to this pressing national need.
  At its foundation, these provisions embrace the notion that investing 
in the preparation of our nation's teachers is a good one. Well 
prepared teachers play a key role in making it possible for our 
students to achieve the standards required to assure both their own 
well being and the ability of our country to compete internationally. 
In fact, the continued health and strength of our nation depends on our 
country's ability to improve the education of our young people. 
Integral to that is the strength and ability of our nation's teaching 
force. Without a strong, competent, well prepared teaching force, other 
investments in education will be of little value. I think these 
provisions will be viewed as one of the lasting achievements of this 
reauthorization.
  In addition, the legislation provides loan forgiveness for students 
who go into teaching. It is my hope that this new benefit will expand 
the number of talented teachers serving school districts with large 
numbers of low-income children.
  Third, this bill reflects a strong commitment to the maintenance of 
two viable loan programs--the guaranteed or Federal Family Education 
Loan Program (FFELP) and the Direct Loan Program. To the extent 
possible within budgetary constraints, the bill ``levels the playing 
field'' to assure the continuation of fair and healthy competition 
between the two programs. This bill extends the provisions of the 
Emergency Student Loan Consolidation Act of 1997 which permit Direct 
loans to be included in FFELP consolidation packages. Following a four-
month period (October 1, 1998, to January 31, 1999) in which Direct 
consolidation loans will be set at the 91-day Treasury bill rate plus 
2.3 percent, Direct and FFELP consolidation loans will carry the same 
interest rate. That rate will be the weighted average of the loans 
consolidated, rounded up to the nearly one-eighth of a percent and 
capped at 8.25 percent.
  Among the most challenging tasks facing the committee was developing 
a student loan interest rate which could offer the lowest viable 
interest to students while assuring sufficient lender participation to 
preserve full access to loans. After extensive consultation with 
students, lenders, representatives of the higher education community, 
the administration and financial services experts, a compromise 
interest rate package was developed. Lender yield is reduced by 30 
basis points, while students receive the significant interest rate 
reduction they have anticipated. This solution is by no means perfect, 
but it promises to preserve the stability of the FFEL program for the 
nearly 4 million students and their families who depend upon these 
loans each year.
  Fourth, the legislation includes a number of initiatives designed to 
improve the delivery of student financial aid services. It includes a 
new guaranty agency financing model--the goal of which is to achieve 
cost savings and efficiencies in the delivery and administration of 
student aid while ensuring that students, lenders, the Federal 
government, and institutions of higher education receive high quality 
service. Additional efforts to improve the delivery of student aid 
programs include the development of a Performance Based Organization 
(PBO) to strengthen the management of key systems within the Department 
of Education. A number of provisions in the legislation also pave the 
way toward taking advantage of the efficiencies made possible through 
electronic processing and other technological advances.
  Looking toward the future, the bill contains several provisions 
dealing with the Year 2000 computer problem. The Office of Management 
and Budget has raised serious questions about the Department of 
Education's ability to meet the timetable outlined by the General 
Accounting Office for the testing of software renovation work. Failure 
to renovate all mission critical systems could result in disruptions in 
the

[[Page S11071]]

management and delivery of student financial aid to more than 8 million 
students. This is an area which the committee will be following closely 
in the months ahead.
  Finally, I would point out that this legislation complies with the 
Budget Act. In order to bring the bill into balance, the conferees had 
to make a number of difficult decisions. In making these decisions, we 
attempted to select options which would maintain the lowest possible 
interest rates for students and which would preserve new student 
benefits such as extended repayment options under the guaranteed loan 
program and teacher loan forgiveness. I recognize that particular 
concern has been raised about provisions in the bill which eliminate a 
provision of the bankruptcy law that permits individuals filing for 
bankruptcy to have their student loans canceled if the loans have been 
in repayment for seven years or longer. Individuals who file for 
bankruptcy may still have their student loans canceled if the 
bankruptcy court determines that repaying the loans would cause undue 
hardship. Currently, the undue hardship option accounts for 70 percent 
of all student loan discharges. In addition, a number of options are 
available to assist borrowers who are having difficulties repaying 
their loans, including deferment, forbearance, cancellation and 
extended, graduated, income-contingent and income-sensitive repayment 
options. In just about every case, these options are preferable to 
declaring bankruptcy.
  Over the years, the federal effort in higher education has been 
substantial, and this legislation will assure that it will continue to 
be so. The Higher Education Act currently provides $48.5 billion in 
student financial assistance for 8.5 million students and $216 million 
for institutional development. In 1995-96, 55 percent of undergraduate 
students received financial aid under this Act. Over the next ten 
years, the Federal government will guarantee over 88 million student 
loans--totaling over $383.5 billion. Over the next five years, the 
Federal government will provide more than 25.4 million Pell Grants.
  As I said before, Mr. President, this conference report to the Higher 
Education Amendments of 1998 is the culmination of almost two years of 
good bipartisan work. Not only does it represent a huge victory for 
America's students, but it represents a victory for all Americans as it 
shows that Democrats and Republicans can work together when it comes to 
the needs of our next generation. This legislation gives millions of 
students the financial key to unlock the door to higher education. By 
lowering the interest rate for student loans to the lowest levels in 
nearly 20 years and by increasing the level of Pell grants, we are 
allowing higher-learning to mean higher-earnings for more of our 
children. Vermont has a proud tradition when it comes to higher 
education in the United States Senate, from Bob Stafford to Justin 
Smith Morrill. I can only hope that, with the passage of this 
legislation, I will have helped continue that tradition.
  By increasing the access and quality of higher education, this bill 
will help ensure that our nation remains a leader in educational 
excellence for all of our citizens. It deserves the support of all 
members of the Senate.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
  Mr. KENNEDY. Mr. President, as I understand it we have 15 minutes; is 
that correct?
  The PRESIDING OFFICER. That is correct.
  Mr. KENNEDY. I yield 4 minutes to the Senator from Connecticut, 4 
minutes to the Senator from Rhode Island, and I will yield myself, now, 
4 minutes.
  Mr. President, I want first of all to express my appreciation to my 
friend and colleague from Vermont, Senator Jeffords, for his leadership 
in this area. It follows a long tradition of Vermont Senators being 
committed to education policy. Senator Stafford, a long-time friend, 
was strongly committed to education. At a time when there are 
differences that are all too obvious between the two political parties, 
Senator Jeffords constancy and commitment in the area of higher 
education, I think, have been very, very impressive. All of us have 
enjoyed the opportunity to work with him.
  I commend my friend and colleague, Senator Dodd, who has been 
extremely active and involved in the workings of the higher education 
legislation, both in the committee and the conference, and has been a 
key player in his involvement and commitment in higher education.
  I see, as well, my friend Senator Reed, who has a particular interest 
in teacher training programs and has a long tradition, with Senator 
Pell of Rhode Island, and also in the House, of commitment to higher 
education. We have a number of others who I will describe in greater 
detail as time permits, but I am particularly appreciative of my 
colleagues' strong support.
  The Education Act of 1998 is a strong and bipartisan bill that 
deserves the support of all Members. It renews our commitment to make 
higher education more affordable and more accessible to qualified 
students. The House and Senate passed the original versions of the bill 
almost unanimously, and the conference report preserves most of the 
best features of both bills. It enhances benefits for students, 
particularly for students who want to be teachers. It increases the 
maximum authorization for the Pell grants for the neediest students and 
expands the formula for calculating their financial need in order to 
protect a larger amount of income for working parents and students with 
greater opportunity for eligibility for those Pell grants.
  The bill also reduces the cost of Pell grants by almost 1 percentage 
point. This reduction can make a significant difference for students 
who may face a mountain of debt when they graduate. This change will 
result in savings of $700 on the average debt of $13,000, and savings 
of over $1,000 on a debt of $20,000, which is enormously important to 
make these loans--and college--accessible for the sons and daughters of 
working families.
  I am disappointed, however, we could not extend this benefit to all 
recent graduates. Under the bill, the rates for consolidation loans 
will be permanently lowered in both programs from their previous 
statutory rates. The bill does create a short time window for recent 
graduates to consolidate their existing loans under the Direct Lending 
Program at the same low rates applicable for new loans. This 
opportunity will be available for another 4 months in addition to the 
3-month window already in effect, so the students will have a total of 
7 months to consolidate their loans. Many of us would have liked to 
have had a longer period of time, but budgetary restraints constricted 
us. I think it is going to be enormously important that students and 
their parents look into the consolidations that can save them a great 
deal of money.
  One of the key features of the bill is improving the training of 
teachers. The legislation supports local partnerships that include 
elementary-secondary schools and colleges and provides competitive 
grants to States. This assistance is urgently needed to strengthen 
teacher training. If we are to find an area of greatest need, probably 
in our whole education system, it is putting a well-qualified teacher 
in every classroom in this country.
  Mr. President, I reserve the remainder of my time and I yield 4 
minutes to the Senator from Connecticut.
  The PRESIDING OFFICER. The Senator from Connecticut.
  Mr. DODD. Mr. President, I thank my colleague from Massachusetts.
  Let me quickly join with those who will commend our colleagues from 
Vermont and Massachusetts, the chair and the ranking member of the full 
committee, for their terrific work. I also want to thank our colleague 
from Indiana, Senator Coats, and others, whom the chairman of the 
committee put together to work on this bill as sort of a working group 
on higher education. Certainly without their efforts we would not be at 
the point we are today in proposing what I think is a good bill.
  You can ask families all over this country what concerns them the 
most. And the answer, time and time again, is education--particularly 
higher education. Families know that there is little as important to 
their children's lifelong success as achievement in post-secondary 
education.
  And families today are worried about higher education. They worry 
about its cost--which is growing in many instances at outrageous 
levels. They worry that too many students give up

[[Page S11072]]

the dream of college long before graduation from high school. And they 
worry that colleges are not keeping up and educating their children for 
the next century.
  These are fundamental concerns and they have been the driving force 
behind this strong legislation. For two years, I have been working with 
Senator Kennedy, Senator Jeffords, Senator Coats and the other members 
of the Labor and Human Resources Committee, and, in the past few months 
with the House Education and Workforce Committee, to complete this 
important bill. And I think our bipartisan efforts have helped produce 
a bill that will help America's students and families.
  It is a bill that, frankly, I think could have been better--but I 
believe that we have done a good job with the realities that we face.
  This bill does four things that I think are commendable. One, it 
addresses the issues of college costs head-on--really for the first 
time in my memory here that we address this issue. Many of my 
colleagues may not be aware that over the past 20 years the cost of 
college has gone up 304 percent as compared to every other area of our 
economy where inflation has risen about 165 percent. So we are looking 
at a tremendous increase in college costs for families all across this 
Nation.
  For the first time, this bill will ensure that families have access 
to comprehensive, comparable information on cost. I am particularly 
pleased that these disclosure provisions will be enforced by the 
Secretary with the strong fine that I authored in the Senate bill. We 
also authorize a follow-up study on why costs are escalating, as 
recommended by the Cost of College Commission, and we direct the Bureau 
of Labor Statistics to develop a market-basket for higher education so 
that we finally have a workable yardstick with which to judge college 
costs.
  I think that is a critical issue. Every year we see these costs go 
up, parents legitimately ask the question why. And while individual 
institutions can give some reasons, I think we need to get a better 
handle on that. The provisions in this bill are simply a first step and 
a warning to colleges: We are serious about this effort and will no 
longer sit idly by while costs increase far faster than inflation.
  Second, the bill goes right to the heart of the student aid issue. We 
provide students with significantly improved loan rates, with a 
reduction in interest of nearly one percent. As a result of lowering 
the loan rates, students in my State could save as much as $650 a year. 
That may not seem like a lot to some, but to middle-income families in 
my State that kind of a savings can make a huge, huge difference.
  I would also point out this bill, of course, raises the maximum 
amount that can be received under a Pell grant to $4,500. That makes a 
huge difference, again, for families that fall within the category of 
receiving that kind of assistance. So we really reach right out to 
those families with this bill and make a difference for them.
  We also afford students with the largest loans new repayment options 
that will allow them to extend the time of repayment. And we provide 
new teachers serving in needy districts with loan forgiveness.
  Third, we finally really understand the role here of the 
nontraditional student, which is critically important. The 
nontraditional student, candidly, is becoming the traditional student. 
The traditional student is the one who goes to college for 3 or 4 years 
without interruption. Today, more and more students are ones who work, 
who take a year off from studies while they work to save money to pay 
for the next year of education. People need education throughout their 
lives, so they go back to school. This bill really reaches into that 
community and provides some wonderful opportunities, including things 
like distance learning.
  Senator Kennedy of Massachusetts has for years talked about the 
importance of providing educational opportunity for people who do not 
have the time or the resources to go to a traditional setting but can, 
through distance learning, acquire the knowledge and skills necessary 
to improve not only the quality of their lives, but the quality of all 
of our lives through enhanced educational opportunity.
  This bill would also help the non-traditional student through the 
high-quality, affordable campus-based child care programs for low-
income students which I offered.
  Last, beyond meeting the fundamental concerns of students, this bill 
will strengthen our educational institutions themselves. This bill 
fundamentally restructures federal support for teacher training and 
focuses support on high quality reforms that bring and keep excellent 
teachers in our classrooms. Plus, we restructured and improved federal 
support for developing institutions, like community colleges and 
colleges serving at-risk minority populations.
  I am disappointed we did not include the Wellstone amendment on TANF 
eligibility for those pursuing post-secondary education. It is clear 
that education is the best long term solution to ending welfare 
dependency, but we were frankly unable to move the House conferees on 
this issue. I want to continue to work to move this initiative forward 
and pledge to work with Senator Wellstone to identify other legislative 
vehicles for this important reform. I was also disappointed that we 
were forced to adopt two provisions--eliminating the bankruptcy 
discharge of student loans after seven years of repayment and 
increasing the fee on Ginnie Mae loans--outside of our committee's 
jurisdiction to ensure that this bill was budget neutral.
  Again, I admit that this legislation is not perfect. But on the 
whole, I think that this is a very good bill that will help American 
students and families, and it is evidence of what we are capable of 
doing when we all work together.
  I ask unanimous consent the list of staff, key staff people who 
worked on this bill, be printed in the Record.
  There being no objection, the list was ordered to be printed in the 
Record, as follows:

       Senator Jeffords' staff: Susan Hattan, Scott Giles, and 
     Jenny Smulson.
       Senator Kennedy's staff: Marianna Pierce and Jane Oates.
       Senator Coats' staff: Townsend Lange.
       Senator Dodd's staff: Suzanne Day.

  Mr. KENNEDY. I yield 4 minutes to the Senator from Rhode Island.
  The PRESIDING OFFICER. The Senator from Rhode Island has 4 minutes.
  Mr. REED. Mr. President, I first want to thank Senator Kennedy for 
yielding me time and I add my commendation along with that of my 
colleagues to both Senator Jeffords and Senator Kennedy for the 
remarkable work they have done. This has been a long process, but it 
has been one that has been very positive, collaborative, and collegial. 
Senator Jeffords and Senator Kennedy have been very supportive of 
efforts by all the members of the committee and Members of this Senate 
to incorporate, to improve, and to bring forth today legislation of 
which I think we can all be proud.
  This legislation does so much to improve the quality of educational 
opportunity in the United States. One of the keys to our country, not 
just its economic prowess but its social progress, is the ability of 
all of our citizens to go on to higher education. This bill will 
advance that goal significantly. I applaud all of those who 
participated in this process.
  As my colleagues have mentioned, there are many important aspects of 
this legislation that should be noted. First of all, there is an 
increase in the authorization of the Pell grant, which will allow, 
particularly many low-income students, further access to higher 
education. There is a reduction in the interest rates which students 
will pay on loans, which will help them bear the burden of the ever-
increasing cost of college. There is loan forgiveness for teachers, a 
revamping of our early intervention efforts, and a strengthening of the 
TRIO Program, which is a very important program that targets low-income 
students who will be the first in their family to attend college. 
Without TRIO, these students may not have the guidance, the 
information, and the support to make it into and stay in college. Also, 
there has been some significant effort to begin to address cost issues 
with respect to college education.
  All of these are commendable, but there are two very important issues 
which I would like to stress. First, this Senate last year restored the 
State Student Incentive Grant Program, a very important program which 
takes limited Federal resources, matches them with State dollars, and 
provides

[[Page S11073]]

grants to needy undergraduate and graduate students. The Conference 
Report contains legislation I introduced with Senator Collins to reform 
this program. It is now the LEAP Program, the Leveraging Educational 
Assistance Partnership Program. This revamped program will be a 
continuation and a strengthening of our commitment to ensure that all 
Americans have access to quality higher education.
  Also, there is a very, very strong teacher training title in this 
bill. Again, I thank both Senator Jeffords and Senator Kennedy for 
their efforts in this regard. We built on legislation I proposed, and 
we created a situation in which now there will be incentives for 
teacher colleges to have active partnerships with elementary and 
secondary schools.
  We are trying to move in a direction of more clinical training for 
teachers. One of the sad commentaries I have heard--and I am sure my 
colleagues have also--is that for so many teachers, on the first day of 
school, it is practically their first day in a classroom as a teacher. 
This should change. This approach of partnerships between higher 
education institutions and elementary and secondary schools, 
particularly one partnership model known as professional development 
schools, is a positive way to increase the professional development of 
our teachers, which could be the single most important factor in 
improving and reforming education in the United States today.
  This legislation is not perfect, but it is a remarkable achievement 
based upon cooperation and a collegial approach to this issue.
  I commend and thank my colleagues, particularly the chairman, Senator 
Jeffords, and the ranking member, Senator Kennedy, for all of their 
work. I look forward to the speedy acceptance of this conference 
report.
  I yield back my time to the Senator from Massachusetts.


        inclusion of the faculty retirement incentive provision

  Mr. MOYNIHAN. Mr. President, I would like to bring to the attention 
of my colleagues a small, but important, provision included in the 
reauthorization of the Higher Education Act. Title IX clarifies 
existing law by making it permissible for colleges and universities to 
offer voluntary, age-based retirement incentives to tenured faculty in 
addition to their regular retirement benefits.
  The inclusion of the Faculty Retirement Incentive Act in the 
Reauthorization of the Higher Education Act will provide a ``safe 
harbor'' for colleges and universities by clarifying that the early 
retirement incentives are permitted by the Age Discrimination in 
Employment Act. The faculty retirement incentive provision will benefit 
colleges and universities, as well as those faculty who choose to 
participate. As officials for the American Association of University 
Professors have stated, this provision 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.''
  At the beginning of the 105th Congress, Senator Ashcroft and I 
introduced legislation similar to the age-based retirement incentives 
language the House included in its Higher Education reauthorization 
bill. I was very pleased to learn of the diligent effort of those on 
the House Education and Work Force Committee to add this provision to 
their bill.
  I thank the members of the Senate Labor and Human Resources Committee 
for working with Senator Ashcroft and me on this issue. I especially 
thank Chairman Jeffords and Senator Kennedy for their thoughtful 
consideration of this measure and for allowing it to remain in the bill 
during conference. Lastly, I express my appreciation to Senator 
Ashcroft for working closely with me on getting the Faculty Retirement 
Incentive bill into law.
  Mr. HARKIN. Mr. President, few individual pieces of legislation 
embody the spirit of the American dream as does the Higher Education 
Act. First passed in 1965, this legislation opened the doors of college 
and a more prosperous future to millions of students. Without federal 
college grants and loans, most Americans would not be able to get the 
postsecondary education that is essential in today's competitive 
international economy.
  The pending legislation--the Higher Education Amendments of 1998--
strengthens our nation's commitment to a higher education and I am 
pleased to support this important piece of legislation. I congratulate 
Senators Jeffords, Coats, Kennedy, and Dodd for crafting a genuinely 
bipartisan bill. I appreciate their leadership and commitment to 
ensuring access to college for millions of Americans.
  My colleagues have extolled the many fine features of this 
legislation--lower interest rates for students, improved teacher 
preparation programs and a modernization of the system for delivering 
student aid. I am in full agreement on the positive aspects of this 
legislation.
  However, as we all know, legislation involves many compromises and I 
would feel remiss if I did not also express my disappointment about two 
provisions in the legislation.
  We are all acutely aware of the soaring debt accumulated by U.S. 
students. The reduction in the interest rate by nearly eight tenths of 
a point, will provide critical relief to students. As a result, they 
will save hundreds of dollars.
  The bill also allows individuals to refinance outstanding loans at a 
lower interest rate by extending the current interest rate on direct 
loans for four more months. Thereafter, the interest rate on 
consolidation loans will increase to the weighted average of the 
outstanding loans with a cap of 8.25%. The conferees rejected attempts 
to provide a longer period for consolidation at the lower interest rate 
with means that many students will be unable to refinance their loans 
to get more favorable rates.
  Modest cuts in the generous subsidies to lenders and guarantee 
agencies would have enabled us to provide a longer window for 
consolidation. It is my sincere hope that we will continue to work 
together to extent this important benefit to make it easier for 
individuals to pay off their students loans.
  Secondly, to pay for a lender subsidy for students, the legislation 
increased the fee that FHA mortgage borrowers will pay to Ginnie Mae in 
the future from 6 to 9 basis points. If not overturned at a later 
point, this provision will cost hundreds of extra dollars to modest 
income homebuyers in order to acquire a mortgage. Clearly, Ginnie Mae 
which makes insures the mortgages does not need the funding. This is a 
straightforward tax on modest income homebuyers, often making $25,000 
to $40,000 per year inserted into this measure. The conferees may talk 
about their hope that the 3 basis points will be absorbed by mortgage 
bankers. But, given that competitive market, most of that cost will be 
passed on. I will work to overturn this inappropriate source of funds.
  Even though I have reservations about some provisions in this 
legislation, I believe it is a strong bill and worthy of our support. 
The bill strengthens Federal student aid programs for the future, and I 
urge my colleagues to support the Higher Education Amendments of 1998.
  Mr. TORRICELLI. Mr. President, I rise today to offer my appreciation 
to my colleagues on the Labor Committee for their hard work on the 
Higher Education Reauthorization Act of 1998. I am especially grateful 
to the Chairman and Ranking Member, Senator Jeffords and Senator 
Kennedy, for their inclusion of two provisions I authored which are 
critical to the people of this Nation and of my state of New Jersey.
  The first addresses the issue of campus safety. Mr. President, every 
year, over 10 million students and their parents agonize over where to 
attend college. They spend months researching schools and visiting 
campuses in an effort to find the perfect fit. Just as information is 
the key to making an informed choice about professors or scholarships, 
it is the key to choosing a safe learning environment. Currently, 
students and their parents do not have access to all the information.
  Current law requires colleges and universities to report statistics 
on crimes that occur on their campuses. Reports of hate crimes, 
however, is limited to only those that result in murder, rape, or 
aggravated assault. This is the law notwithstanding the fact that these 
3 categories of crimes only represent 16 percent of the total number of 
hate crimes that occur on

[[Page S11074]]

college campuses every year. Over 80% take the form of other crimes, 
including simple assault and robbery.
  An amendment I offered, which is now part of the Higher Education 
Act, will ensure that students and their parents have all the 
information necessary to choose a safe school. This amendment will 
require colleges and universities to report all hate crimes that 
involve either bodily injury or a serious property crime such as 
burglary or arson. It also expands the definition of a hate crime to 
protect women and the disabled. Current law only protects against 
crimes motivated by prejudice based on race, ethnicity, religion, or 
sexual orientation.
  Our children are our future. Their college years are among the most 
exciting and formative of their lives. Expanding the types of hate 
crimes colleges and universities must report will empower students and 
parents with all of the information necessary to ensure that those 
years are as safe as possible.
  I would also like to thank Senators Jeffords and Kennedy for their 
inclusion of another amendment I authored which will freeze the status 
of a student reservist's grace period for paying back their education 
loans until they return from active duty service. All students are 
permitted a grace period of up to nine months after graduating or 
withdrawing from class before they must begin to repay their student 
loans. However, the typical length of active duty service for a 
reservist is currently 270 days, meaning that a student's grace period 
has often expired by the time they return home from military service.
  We should not welcome our courageous men and women in uniform home 
from active duty by handing them a bill. Students who serve their 
country in the armed forces should at least have the peace of mind of 
knowing that their student loans are not increasing while they are 
abroad. This provision will provide them with that peace of mind.
  For these two provisions and for all their hard work on this very 
important piece of legislation, I thank Senator Jeffords, Senator 
Kennedy and all of my colleagues on the Labor Committee.
  Mr. SHELBY. Mr. President, I would like to ask the distinguished 
floor manager of the bill a question.
  Mr. JEFFORDS. Certainly, I will be happy to answer my colleague's 
question.
  Mr. SHELBY. Under Title II of the pending legislation, entitled 
Improving Teacher quality, the Secretary of Education is authorized to 
make teacher training partnership grants. These partnerships may 
include non-profit education organizations, businesses and teacher 
organizations.
  Mr. JEFFORDS. That is correct. The effort is to bring a broad range 
of opportunities to teacher preparedness and training.
  Mr. SHELBY. I know that the Senator from Vermont is quite familiar 
with the work of the State Humanities Councils and he is aware of the 
extensive number of teacher institutes which they have supported over 
the past few years. In Virginia, for example, the council has sponsored 
teacher institutes on local and regional history. The Alabama 
Humanities Foundation's SUPER (School and University Partners for 
Educational Renewal) reached more than 800 Alabama teachers over a two 
year period.
  Mr. JEFFORDS. Yes, I am well aware of the efforts of the state 
councils with respect to teacher institutes. Many of the Councils have 
worked closely with the school systems and local colleges and 
universities to present relevant and cost-effective teacher institutes. 
They have a long history in this effort and considerable experience.
  Mr. SHELBY. I agree. Consequently, I simply wanted to make certain 
that state councils, which are non-profit entities, would qualify for 
participation in the teacher training partnerships.
  Mr. JEFFORDS. I think they would certainly qualify and I would urge 
them to participate whenever they can.
  Mr. SHELBY. I thank the chairman of the committee and I appreciate 
his response.
  Mr. KERREY. Mr. President, I rise in support of H.R. 6, the Higher 
Education Amendments of 1998. As our economy becomes increasingly 
knowledge-based, this legislation represents an important step in 
helping individuals achieve the American Dream.
  A college degree expands learning horizons and increases professional 
opportunities. One of the most satisfying efforts we can make as public 
officials and legislators is helping Americans acquire the knowledge 
and skills needed to seize these opportunities. This bipartisan 
conference agreement makes important strides both in improving the 
education students receive within colleges and universities and in 
increasing access to higher education.
  Nationwide we have about 10 million students enrolled in four-year 
and two-year public colleges and universities. About 83,000 of those 
students are in school in Nebraska. We have about 2.5 million in 
private institutions--19,000 in Nebraska. This legislation helps those 
students stay in college and also opens the door for more students to 
obtain a college degree.
  Approximately $50 billion in this bill is devoted to postsecondary 
grants and loans for students. This is a wise investment for all 
Americans because this financial assistance to obtain higher education 
helps individuals increase their earning power once they graduate. When 
we increase the income of Americans, we reduce spending and in turn 
reduce the tax burden on our citizens.
  According to the US Census, college graduates make an average of 
$600,000 more over their lifetime than do individuals without a college 
degree. That differential has doubled in the last 15 years.
  An individual with a bachelors degree can expect to earn $1.4 million 
over the course of a lifetime. With a professional degree, that person 
can earn over $3 million in a lifetime.
  But currently, only 60% of high school graduates go on to college, 
and by the time they are 25 years old, only about 25% have a college 
degree. We need to focus more attention on those students who do not 
enroll in four-year institutions. For those students we need to create 
a more seamless transition from high school to the workplace, and we 
need to encourage those students to take advantage of the opportunities 
that community colleges offer.
  For those students who choose to seek a college degree, this 
legislation helps to make college more affordable. For instance, it 
cuts the student loan interest rate from 8.25% to 7.46%, which will 
save approximately $11 billion for students over the life of their 
loans. In addition it increases aid to the neediest of students by 
increasing the authorization for maximum Pell Grants to $4,500 for 
1999-2000. We still have much work to do as we try to figure out how to 
make higher education more affordable, but this bill is a step in the 
right direction.
  The bill also authorizes $300 million to make significant 
improvements in teacher training. It establishes grants to partnerships 
between teacher education institutions and school districts to produce 
highly skilled teachers who are competent not only in their content 
area but also in the use of technology. It also encourages partnerships 
that recruit and train teachers to serve in high-need schools. In 
addition, it supports state-level efforts to improve teacher quality 
through State Teacher Quality Enhancement grants, which strengthen 
teacher certification standards and create alternative pathways into 
the teaching profession.
  I am also pleased to contribute personally to this legislation in a 
number of ways. The bill authorizes a Web-Based Education Commission 
which will study the issue of quality control in educational software 
and determine the need for a Federal role in helping parents, students, 
and teachers identify high-quality educational software.
  With Senator Wellstone and others, I helped expand student-aid 
eligibility for distance learning programs so that more non-traditional 
students will be able to obtain a college degree. We also worked 
together to achieve a $10 million authorization for Learn Anytime 
Anywhere Partnerships, which will provide competitive grants to 
partnerships between schools, community organizations, and other public 
and private institutions to develop innovative distance education 
models.
  Mr. President, this is a good piece of legislation, and I am happy to 
be a part of it.
  Mrs. FEINSTEIN. Mr. President, I am pleased today to support the 
conference agreement on H.R. 6, the Higher Education Act bill.

[[Page S11075]]

  The bill has a number of provisions that will be helpful to my state:
  It authorizes $300 million in new initiatives to strengthen teacher 
training for elementary and secondary.
  It continues student loans and increases the maximum authorized Pell 
grant from $4,500 to $5,800 by 2003 to help low-income students get a 
college education.
  It continues federal support for colleges and universities, such as 
science and engineering programs and graduate fellowships.
  The opportunity to pursue an education, particularly a college 
education, has long been a hallmark of American society. In California, 
shifts in the economy make higher education more important than ever. 
Service-related jobs, such as those in high tech industries, have 
displaced many traditional manufacturing jobs. These new jobs require a 
level of knowledge and skill that can for the most part only be gained 
by a college education.
  California has long been a leader in providing a strong higher 
education system. The University of California (UC) has nine campuses 
that serve 132,000 students. Total enrollment at UC is projected to 
grow by about 36,500 students by fall 2006.
  The California State University System (CSU) consists of 22 regional 
campuses with 286,000 students. Enrollment is expected to grow by 31.4 
percent or 105,809 students by year 2006.
  Another important element of higher education in California is the 
California community college system, the largest community college 
system in the world. Its 106 campuses provided vocational, academic, 
and community service programs to over 1.5 million students of varying 
ages, income levels and educational backgrounds in 1997. Roughly three 
of four public postsecondary students were in enrolled in community 
colleges. The system is expected to increase by 28.9 percent as its 
attendance is projected to be over 1.8 million by fall 2006.
  California faces huge challenges in higher education in the coming 
years:
  First, enrollment in California's public schools, the college 
generation of the future, is growing at three times the national rate. 
Enrollment in the three major segments of higher education will 
increase by 28.9 percent, or by 549,144 students, between 1996 and 
2006, according to the state's Department of Finance.
  California will have this surge in college applicants because (1) the 
number of high school graduates has increased by 22 percent since 1993; 
(2) many adult workers are changing careers by choice because of 
organization restructuring, or to enhance their employment skills; (3) 
migration to California from other states and countries is continuing; 
and (4) more Californians over 40 are pursuing lifelong learning.
  Second, California has 21,000 teachers on emergency credentials and 
will need up to 300,000 new teachers in the next decade.
  Third, California has many first generation, bilingual and 
``nontraditional'' students. California State University, for example, 
has a large number of ``nontraditional'' students, students who are 
older than the usual college age. This is because many community 
college graduates transfer to CSU and many CSU students are working 
people seeking to progress professionally or maintain technical 
proficiency. Similarly, approximately 41 percent of community college 
students are in the 20-29 age group.
  I am pleased that the House-Senate conferees accepted several 
provisions that I authored to help students and institutions in my 
state:
  First, the 5th year Pell grant: That authorizes the Secretary of 
Education to award on a case-by-case basis Pell grants for 
disadvantaged students for the fifth year of teacher education required 
in California to get a teaching credential. This could enable 12,000 
disadvantaged students to become teachers in California, according to 
the Congressional Budget Office, at a time when we are facing a severe 
teacher shortage and have 21,000 teachers in the classroom on emergency 
credentials.
  Second, distance learning: The bill also includes two of my 
amendments to the distance learning demonstration (teaching away from 
the traditional campus via a computer, teleconferencing or other 
technologies). The first, clarifies that university ``systems'' (e.g., 
UC system, CSU system) would be eligible and the bill increases the 
number of demonstration sites from five to fifteen.
  Third, school districts with high numbers of limited English 
proficient students: The bill authorizes state grants for innovative 
ways to reduce teacher shortages in high poverty areas. At my 
suggestion, the bill includes as eligible or target areas, school 
districts with disproportionate numbers of limited English speaking 
children. In California, 1.3 million students have limited English 
proficiency, a tripling since 1986 and at least 87 languages are 
spoken.
  Fourth, study of few borrowers: The bill provides that schools whose 
student loan default rate exceeds 25% for three years will be 
ineligible to participate in the student loan program. For schools like 
California's community colleges, that have just a few borrowers, this 
method gives the appearance of having a very high default rate. For 
example, if the school has only four borrowers but two defaulters, they 
would have a 50 percent default rate. The manager's amendment includes 
my suggestion of a study of the effectiveness of this measurement 
method by September 30, 1999.
  Student financial aid is essential to enabling millions of students 
to get a higher education. The California Postsecondary Education 
Commission estimates that 50-55 percent of students at California's 
public and private institutions are receiving some form of state, 
federal or institutional financial assistance. Expenses for tuition and 
supplies at California's postsecondary institutions, public and 
private, averaged $19,500 during the 1997-98 school year. Most families 
have a hard time saving that kind of money.
  By continuing federal student grant and loan programs, this bill will 
continue to open doors to education for many Californians.
  The higher education bill is a bipartisan and constructive bill that 
will help our nation provide a college education to millions of 
Americans. I hope my colleagues and the President to join me in 
enacting this important bill.
  Mr. DASCHLE. Mr. President, I am pleased to join my colleagues in 
support of the conference report on the Higher Education Act. This 
bipartisan legislation takes important steps to lower interest rates on 
student loans, recruit and train new teachers, and strengthen and 
preserve the federal commitment to reducing the cost of obtaining a 
college education. I commend Senator Jeffords and Senator Kennedy for 
their good work and cooperation on this bill.
  The importance of Higher Education Act cannot be understated. In our 
increasingly sophisticated economy, access to higher education can be 
the key to a brighter future for many young people. Our federal student 
aid programs, including Pell grants, student loans, campus-based aid 
and other programs have helped millions of students afford a college 
education. Through these programs, we provide $38 billion in financial 
assistance to more than 19.4 million students in postsecondary 
education institutions.
  The legislation we are sending to the President improves these 
programs in a number of important ways. The maximum Pell Grant is 
increased to $4,500 in 1999, stepping up to $5,800 by 2004. Interest 
rates on student loans are cut from 8.25 percent to 7.46 percent, 
reducing the total cost to students by $11 billion. Borrowers will also 
be able to consolidate and refinance their loan balances at the new 
rate for four months. In addition, the bill creates a new program to 
provide help to disadvantaged students to make sure they know about 
higher education opportunities and are in a position to take advantage 
of them.
  Other key aspects of this bill are provisions to improve teacher 
training and recruitment and to expand professional development 
opportunities for teachers. Grants will be available to develop 
partnerships between teaching colleges and school districts to improve 
teaching skills and integrate technology into the classroom. Support 
will also be available for partnerships that will recruit and train 
teachers willing to serve in high-need schools. We know that putting 
students in a classroom with a well-trained, qualified teacher is one 
of the most effective ways to help them achieve to the best of their 
abilities.

[[Page S11076]]

  I am particularly pleased that the new law will expand opportunities 
for distance learning. This will help many people --especially those in 
rural areas, those with disabilities, and nontraditional students--gain 
access to programs in which they otherwise might not be able to 
participate.
  The conference report retains a proposal, which I cosponsored, to 
encourage colleges to establish campus-based child care for low-income 
students. I also support provisions to help reduce binge-drinking on 
college campuses and reduce campus crime levels.
  Finally, I strongly support the provision creating a new grant 
program for Tribal Colleges and Universities. These institutions do a 
remarkable job of creating educational opportunities for Native 
Americans. They need and deserve federal support. I call on the 
Appropriations Committee to fund these programs so that Native American 
students can have access to a higher education to advance their own 
skills and help their communities address the many challenges that 
exist today in Indian country.
  I also would like to commend the conferees for their efforts to 
maintain a balance between the Family Federal Education Loan program 
and the Direct Loan program. There is strong evidence that a healthy 
competition between these two programs has strengthened both programs 
and ultimately been good for students, and I believe it is important 
that we work to maintain this balance.
  I am disappointed about several aspects of this bill. It is 
unfortunate that resources were not available to reduce costs further 
for students and to extend the period for loan consolidation beyond 
four months.
  I am also disappointed that Senator Wellstone's amendment, which 
would have enabled those receiving Temporary Assistance for Needy 
Families to attend post-secondary programs for 24 months and meet the 
work requirement, was not included in the final bill. I believe this 
proposal should be revisited because of the positive impact higher 
education degrees have been shown to exert on earnings, on access to 
health insurance, and on children's achievement levels, and because of 
the increased flexibility it offers for states. In South Dakota, access 
to higher education is particularly important on the reservations, 
where very few low-skill jobs are available. College degrees have 
empowered Native Americans to assume leadership and professional 
positions in their own tribes, and have enabled many to escape the path 
of poverty, lack of education and under-employment that traps too many 
living on the reservations. I appreciate the conference committee's 
willingness to give Senator Wellstone's proposal careful consideration, 
and I am hopeful that the awareness raised during this debate will 
eventually lead to expanded educational opportunities for low-income 
Americans struggling to become self-sufficient.
  Despite these reservations, Mr. President, I believe this is a good 
bill that will continue our efforts to lower the cost barriers to 
higher education. The Higher Education Act is a vital investment in our 
Nation's future. By enacting this legislation, we will help millions of 
young people gain skills and develop their talents, and help our Nation 
build a strong work force, develop our intellectual capital, and 
nurture the leaders of the next generation. I urge my colleagues to 
join me in supporting this very important piece of legislation.
  Mr. DOMENICI. Mr. President, I rise today in support of the Higher 
Education Act Amendments of 1998. By reauthorizing the Higher Education 
Act (HEA) the Senate is making a down-payment on our nation's future.
  I would begin by saying: it is a simple fact that the future is 
prejudicial in favor of those who can read, write, and do math. A good 
education is a ticket to the secure economic future of the middle 
class. As the earning gap between brains and brawn grows ever larger 
almost no one doubts the link between education and an individual's 
prospects.
  And that is what the Senate is doing today, improving the post-
secondary educational system of our country.
  What does the bill do in a nutshell? It improves financial aid 
opportunities for students, creates a unified program to promote 
excellence in the teachers our schools produce, and streamlines HEA by 
consolidating overlapping programs and eliminating unnecessary 
regulatory requirements.
  Mr. President, before I make some specific comments about provisions 
in the bill, I would like to first talk about how important the bill is 
for New Mexico.
  Approximately 100,000 students are enrolled in New Mexico's public 
colleges and universities, with about 53,000 students enrolled in 
community colleges and about 47,000 enrolled in universities. However, 
the number of high school graduates is expected to increase during the 
next decade and members of the current workforce are also expected to 
seek additional education during that period.
  Consequently, the state must have a high-quality, low-cost college 
education available to a growing number of students, regardless of 
income level, ethnic background or place of residence.
  Students attending New Mexico institutions received more than $200 
million in financial aid, counting grants and loans from all sources, 
during the 1995-96 academic year. About 78 percent of that assistance 
came from federal sources, and during 1995-96, New Mexico students 
contracted for about $110 million in federal loans.
  Thus, I believe that educational performance is a crucial element in 
New Mexico's capacity to prosper in the extremely competitive national 
and international economy.
  New Mexico's colleges and universities directly and indirectly 
contribute to the economic vitality of the state, as they produce 
graduates with considerable intellectual depth and breadth, workers 
whose skills allow them to meet the demands of their employers, and 
first-rate research that helps to expand the boundaries of human 
knowledge.
  Mr. President, I would now like to turn and make a few comments about 
several of the provisions in the bill and especially one that will 
benefit New Mexico.
  Title V establishes a new part dedicated solely to supporting the 
needs of Hispanic Serving Institutions that is authorized at $62.5 
million for fiscal year 1999. The funds may be used for construction or 
maintenance of instructional facilities, support of faculty exchanges 
and faculty development initiatives, the purchase of books and 
periodicals, technological and management improvements, and improving 
and expanding graduate and professional opportunities for Hispanic 
students.
  New Mexico has 17 designated Hispanic Serving Institutions that serve 
more than 23,500 Hispanic students. These school include Albuquerque 
Technical Vocational Institute, College of Santa Fe, College of 
the Southwest, Eastern New Mexico University-Roswell, Luna Vocational 
Technical Institute, New Mexico Highlands University (NMHU), New Mexico 
Junior College, New Mexico State University (NMSU) Las Cruces, NMSU-
Carlsbad, NMSU-Dona Ana, NMSU-Grants, Northern New Mexico Community 
College (NNMCC), Santa Fee Community College, University of New Mexico 
(UNM)-Los Alamos, UNM-Taos Education Center, UNM-Valencia County 
Branch, and Western New Mexico University.

  Title II, entitled Teacher Quality, focuses on improving teacher 
quality and the recruitment of highly qualified. First, the bill seeks 
to improve student achievement, through quality improvement of the 
current and future teaching force by improving the preparation of 
prospective teachers and enhancing professional development activities. 
Second, the bill seeks to increase the number of students who complete 
high-quality teacher preparation programs.
  Title III or the Institutional Aid Title creates a new grant program 
for Tribal Colleges and Universities to strengthen services to Native 
American students. I am especially pleased with this new program 
because of my longstanding involvement with the issues affecting Native 
Americans. Tribally-controlled colleges in New Mexico like the 
Crownpoint Institute of Technology, the Institute of American Indian 
Arts in Santa Fe, the new Navajo Community College in Shiprock, and the 
Southwest Indian Polytechnic Institute (SIPI) in Albuquerque could 
potentially benefit.
  Student financial aid is given a huge boost through several changes. 
First,

[[Page S11077]]

the bill increases the maximum Pell Grant levels to the following 
amounts: $4,500 for academic year 1999-2000; $4,800 for academic year 
2000-2001; $5,100 for academic year 2001-2002; $5,400 for academic year 
2002-2003 and $5,800 for academic year 2003-2004.
  The Federal TRIO Programs are given a boost through changes to the 
Student Assistance section in Title IV. I have always been a strong 
supporter of TRIO and most pleasing is how much the students, schools, 
and communities of New Mexico will benefit.
  The 1,900 current TRIO programs provide benefits to 700,000 students 
nationwide. Two-thirds of participating students come from families 
where neither parent attended college and whose incomes are below 
$24,000.
  The Dissemination/Partnership provision would encourage partnerships 
between TRIO programs and other community based organizations offering 
programs or activities serving at-risk students.
  The Federal Family Education Loan Program (FFEL) is stabilized in the 
following way. Student loan rates will be equal to the 91-day-T-bill-
plus-1.7-percent while students are in school, and plus-2.3-percent 
during repayment after graduation. The interest amount is capped at 
8.25 percent and for PLUS loans, rates will be the 91-day-T-bill-plus-
3.1 percent, capped at 9 percent for borrowers and lenders.
  An innovative loan forgiveness program is also included for teachers. 
Up to $5,000 of a teacher's loans will be forgiven after five years of 
teaching for those choosing to teach in urban or rural school districts 
that serve large populations of low-income children.
  Mr. President, in closing I believe we are taking an important step 
forward today by making an investment in our Nation's future with the 
reauthorization of the Higher Education Act.
  Mr. AKAKA. Mr. President, I rise in support of the conference report 
to H.R. 6, the Higher Education Reauthorization Act. Passage of this 
important measure will ensure that access to higher education remains 
attainable for all Americans.
  The increase in the Pell Grant eligibility included in the bill will 
help families and students offset the growing cost of higher education. 
This successful program has helped ensure that low-income and 
disadvantaged students have the opportunity to pursue a post-secondary 
education.
  The bill also includes the continuation of the concept of the State 
Student Incentive Grants (SSIGs). The new modified program, Leveraging 
Educational Assistance Partnership Program, will continue the 
worthwhile effort of encouraging additional financial opportunities for 
students seeking a higher education.
  The decrease in the student loan interest rate is another effort to 
ensure that students and their families are able to obtain a quality 
higher education. The decrease in the student loan interest rate helps 
students reduce the financial burden of higher education. Too often 
students are forced to chose between their education and the enormous 
financial hardship they must overcome to obtain the education they need 
to improve their lives. The agreement included in the bill helps to 
reduce the financial burden for students and their families.
  Mr. President, the provisions in the bill relating to teacher 
development and preparation are important to ensure that we have the 
quantity and quality of teachers needed for the next generation of 
students. Across the country the shortage of teachers, particularly in 
critical subjects such as special education, math and science where 
there is serious demand, is having an adverse impact on our students. 
However, the problem is not just recruiting students to become 
teachers, the problem is making sure that students have the support and 
encouragement once they have chosen this honorable profession. Teacher 
development and preparation programs are essential if we are to stem 
the tide of teachers leaving the profession before retirement. Too many 
teachers are leaving to seek employment opportunities outside of the 
teaching profession because administrators and communities are failing 
to provide the support they need. The teacher development and 
preparation programs included in the bill will help to address this 
important issue.
  Ensuring that our teachers obtain the educational background needed 
to achieve academic success must start at higher education 
institutions. Colleges and universities should not complain about the 
caliber of students pursuing higher education, while denying their 
educational degree programs the resources and the support that they 
need. The caliber of teachers leaving these institutions has a direct 
impact on the quality of students coming through the front door. The 
provisions in this bill help to address these concerns.
  Mr. President, I would like to thank the Chairman, Senator Jeffords, 
and Senator Kennedy, the Ranking Member, for their support on resolving 
the eligibility concerns surrounding the students from the Federated 
Associated States (FAS). The House, unfortunately, attempted to 
terminate the eligibility of college students from FAS for Pell Grants, 
Supplemental Education Opportunity Grants, and College Work Study. The 
House provision would have upset the unique relationship the United 
States has with the FAS and violated the legal and moral obligation we 
have with the countries under the U.S. Compact of Free Association with 
the Republic of Palau and the U.S. Compact of Free Association with the 
Federated States of Micronesia and the Republic of the Marshall 
Islands. It would have been an embarrassment if the U.S. failed to live 
up to its moral obligations in ensuring that FAS citizens were given 
the educational assistance necessary to become self-governing. The 
agreement worked out in conference ensures continued federal financial 
aid eligibility for FAS students and does not preclude the inclusion of 
such eligibility in the renegotiation of the Compact with the FAS.
  Mr. President, I appreciate the opportunity to express my support for 
this important measure and look forward to its passage. Thank you, Mr. 
President, I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. KENNEDY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, the Higher Education Act of 1998 is a 
strong, bipartisan bill that deserves the support of all Members of the 
Senate. It renews our commitment to make higher education more 
affordable and more accessible for all qualified students.
  The House and Senate passed their original versions of the bill 
almost unanimously, and the conference report preserves most of the 
best features of both bills. It enhances benefits for students, and 
particularly for students who want to be teachers. It increases the 
maximum authorization for Pell grants for the neediest students, and 
expands the formula for calculating their financial need in order to 
protect a larger amount of income of working parents and students.
  The bill also reduces the cost of student loans by almost one 
percentage point. This reduction can make a significant difference for 
students who may face a mountain of debt when they graduate. This 
change will result in savings of $700 on the average debt of $13,000, 
and savings of over $1,000 on a debt of $20,000.
  I am disappointed, however, that we could not extend this benefit to 
all recent graduates. Under the bill, the rates for consolidation loans 
will be permanently lowered in both programs from their previous 
statutory rates. The bill does create a short window for recent 
graduates to consolidate their existing loans under the Direct Lending 
program at the same low rates applicable for new loans. This 
opportunity will be available for another 4 months, in addition to the 
3 month-window already in effect, so students will have a total of 7 
months to consolidate their loans.
  One of the key features of the bill is improving the training of 
teachers. The legislation supports local partnerships that include 
elementary and secondary schools and colleges, and it also provides 
competitive grants to states. This assistance is urgently needed to 
strengthen teacher training. The bill also provides assistance for 
recruitment of new teachers, a critical need for many school districts. 
In addition, it provides loan forgiveness on student loans of up to 
$5,000 for those who teach for five years in high-need

[[Page S11078]]

schools. I hope that we can build on this incentive in future years, as 
an important way to encourage more students to become teachers.
  The bill also includes an early intervention initiative to encourage 
more middle-school students to understand that college is not out of 
reach. It incorporates ideas from the Administration and from Senator 
Jeffords in a new program, ``Gear Up.'' We need to reach out to middle-
school children to help them understand that a college education is 
attainable and affordable.
  The bill also continues the program of Graduate Assistance in Areas 
of National Need, as a critical investment in graduate education. I am 
particularly pleased that the conference report preserves the portable 
Javits Fellowships for talented students in the arts, humanities, and 
social sciences.
  The bill contains a new program based on initiatives sponsored by 
Congresswoman Meek in the House and by myself in the Senate to 
encourage a higher quality of college teaching for students with 
disabilities. In recent years, it has become possible for many more 
students with disabilities to achieve the dream of a college education, 
and we need to do more to ensure that faculty members have the 
experience to teach them. This bill reaches out to all colleges and 
universities, and can include training for graduate teaching 
assistants--the faculty of the future.
  The bill also expands federal aid for learning through distance 
education. Distance learning can open the doors of higher education to 
many students who cannot attend classes on college campuses because 
they live in remote areas, or because of their job and family 
responsibilities. The Department of Education will monitor the 
institutions participating in the distance program, and report to 
Congress on the results. Our goal is to ensure that distance education 
is of the same high quality as traditional education.
  The bill also helps improve the delivery of federal financial aid, by 
creating a Performance Based Organization in the Department of 
Education. Its goal is to streamline and improve the financial aid 
functions of the Department, and give it more flexibility to deal with 
many aspects of federal aid. A principal goal of the PBO is to improve 
services for students, and the bill creates a new position called the 
Student Loan Ombudsman, which student groups have urged.
  The bill also encourages improvements by guaranty agencies, by 
enabling them to enter into voluntary, flexible agreements with the 
Secretary of Education. Under these agreements, the agencies can do 
more to prevent defaults, instead of collecting from students after 
they have defaulted on loans. These voluntary flexible agreements will 
encourage the agencies to be more business-like and responsive to 
students.
  This bill sets the stage for future reforms in student loans. The 
controversy about what level to set interest rates on these loans makes 
clear that Congress should stop setting the rates for banks. The best 
solution is to accept a market-based system for student loans, and let 
competition set the rates for lenders.
  Many Members on both sides of the aisle and in both Houses are 
interested in this fundamental change, and I am pleased that the bill 
calls for a study of competitive mechanisms for the loans. This study 
will help Congress make thoughtful changes in a system that is now far 
too costly and inefficient.
  I am disappointed that the conference report does not contain the 
amendment to the welfare reform act proposed by Senator Wellstone and 
passed by the Senate. Senator Wellstone's amendment would help welfare 
recipients attend college for two years. We have heard from many 
students who have been forced to abandon their pursuit of college 
education because of the harsh provisions of the welfare reform law. 
Senator Wellstone's amendment is well-designed to reduce this serious 
problem, and it deserves to be enacted.
  Overall, the numerous positive changes in this legislation will 
strengthen higher education. I commend the constructive bipartisan 
spirit that has brought us to this point. It is fitting to enact this 
legislation at the beginning of the academic year, and I look forward 
to its adoption and its successful implementation.
  Mr. President, on the teacher training provisions of this Act, which 
our friend and colleague, Senator Reed, is so very interested in, one 
of the new features is a loan forgiveness program--$5,000 for a teacher 
who teaches for 5 years. This is a very modest forgiveness, but it 
really builds on the old National Health Service Corps which provided 
loan forgiveness for doctors to go into underserved areas. The 
forgiveness program was an important incentive and was really very, 
very important and has been effective. We hope this program will be as 
well.
  Also, I want to mention the new program that builds on some 
initiatives of Senator Jeffords and the TRIO Program, which targets 
middle school classes to move the whole class toward continuing 
education. This has worked in different parts of the country. Now we 
have a program to encourage other schools to do that.
  If any one of us goes to any school in this country, in an elementary 
and secondary class, and asks children, even in the most underserved 
part of our Nation, how many want to go to college, before you even get 
the words out of your mouth, every hand goes up. They get discouraged 
in later years. If they know they have the opportunity to continue 
their education if they apply themselves to their studies, it can have 
a dramatic impact in reducing dropouts and also antisocial behavior. 
This is a modest program, but it is very important.
  I want to also mention, Mr. President, that this bill sets the stage 
for future reforms in student loans. The controversy over what level to 
set interest rates on these loans makes clear that Congress should stop 
setting the rates for banks. The best solution is to accept a market-
based system for student loans and let competition set the rate for the 
lenders. We believe in competition. This is a good area in which to try 
it. We have many examples in different public policy areas of where 
auctions work. There is an excellent initiative in the House of 
Representatives by Republican Congressman Petri to try an auction-based 
system. I am very hopeful we can find a bipartisan effort in this area 
to find the savings and return them to the students. It makes sense. 
That is a way we should proceed. We have a study of that program in 
this conference report.
  Finally, I agree with my other colleagues. I am disappointed the 
conference did not accept what I think is the superb amendment of 
Senator Wellstone, which was adopted in this body, about continuing 
education and how this dovetails with the welfare reform program. 
Senator Wellstone will be over here to speak to that issue later on. I 
regret he was not successful, and I will certainly support his efforts 
later on to try to implement that program.
  The PRESIDING OFFICER. All time has expired.
  Mr. JEFFORDS. I yield the Senator 1 minute.
  Mr. KENNEDY. Mr. President, I commend my colleagues on the Labor 
Committee for their skillful work on this bill. Senator Jeffords worked 
hard to accommodate all the concerns of all the members of the 
Committee, and kept the interests of students firmly in mind. Senator 
Coats and Senator Dodd likewise contributed to the bipartisan spirit.
  I also thank the following:
  On Senator Jefford's staff, Susan Hattan, Jenny Smulson, Scott Giles, 
Cory Heyman, and Pam Moran.
  From Senator Coats' staff, Townsend Lange.
  From Senator Dodd's staff, Suzanne Day and Megan Murray.
  From my own office, Marianna Pierce, Jane Oates, and former fellows 
Gloria Corral, Jennifer Kron, Maria McGarrity, and Eileen O'Leary.
  I also thank Debb Kalcevik from CBO; Margot Schenet, Jim Stedman, and 
Barbara Miles from CRS; and Mark Sigurski from the office of 
legislative counsel.
  They have all done an excellent job, and deserve a large share of the 
credit for this achievement.
  Mr. President, I want to single out, in particular, Marianna Pierce 
who is my chief of staff in the area of education. The members of the 
staff performed absolutely superbly and have played an indispensable 
role in helping all of us reach this point. I am enormously grateful to 
her and the other staff.

[[Page S11079]]

  Mr. JEFFORDS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Vermont.
  Mr. JEFFORDS. Mr. President, I am proud to say again that this bill 
preserves the focus on students, who are the primary reason we have a 
Higher Education Act in the first place. Students now in school will be 
assured of receiving the lowest interest rate on their loans in nearly 
two decades.
  Students now in high school who aspire to a college education will 
benefit from an expanded early intervention program known as Gear Up, 
as well as continuing to receive services from the time-tested and 
highly regarded TRIO programs. The new Gear Up Program combines 
features of the existing National Early Intervention Scholarship 
Program, which I sponsored in 1992, with recommendations proposed by 
the administration and included in the House bill.
  The Gear Up Program preserves the best features of the program now 
operating successfully in nine States while expanding the pool of 
participants and approaches involved in early intervention.
  Students who have graduated and are faced with exceptionally high 
loan burdens will be able to take advantage of extended repayment 
options under the Guaranteed Loan Program. In addition, the measure 
provides a 4-month window within which borrowers now in repayment may 
refinance their loans through either the Federal Direct Loan Program or 
the Federal Family Education Loan Program.
  Mr. President, how much time do I have remaining?
  The PRESIDING OFFICER. Seven minutes 54 seconds.
  Mr. JEFFORDS. Mr. President, Senator Coats is on his way. Let me, in 
the interim, mention that education, as we know now, is a top interest 
in poll after poll of Americans. They want to see their educational 
system reformed in a way that can lead them into a position where this 
Nation has the best educational system in the world. Unfortunately, 
that is not the case right now. But we are taking a huge step forward 
with the higher education bill, not just in that matter which affects 
the students in higher education, but also the second title of the bill 
which deals with reforming teacher preparation.
  Nothing is going to change in the classroom until the teacher 
changes, and the teacher isn't going to change until the teacher knows 
what he or she has to do in order to make our system better.
  As we move into the Elementary and Secondary Education Act 
reauthorization next year, we want to make sure that the universities 
are aware that they have a role to play in ensuring that every new 
teacher who comes into the system is ready for the changes which are 
necessary to make our educational system the best in the world.
  I look forward, as we move forward into next year, to continuing the 
effort that our committee has taken to make this Nation's educational 
system the best in the world. I am confident we can do that.
  But right now we do know we have much left to do. But hopefully 
working first with those who are teaching the teachers, we can make 
sure that we stop the flow in of young people who want to teach but do 
not have an adequate education at the universities and colleges that 
they should have in this day and age.
  Mr. COATS. Mr. President, I am happy to rise today to speak in 
support of the conference report for the Higher Education Act 
Amendments of 1998. This higher education bill has been two years in 
the making and I know I join the rest of my colleagues in the Labor 
Committee, and in the Senate, in full support of this very important 
legislation.
  This bill represents a strong bipartisan consensus in the Congress to 
ensure that students maintain access to post-secondary education 
through vital student opportunity programs, such as TRIO; healthy, 
stable, and streamlined loan programs; and a simplified student aid 
process. I am pleased to have had the opportunity to contribute to this 
important bill.
  This conference report, like the underlying Senate bill, was 
developed with several fundamental principles. Our first, and most 
important theme, was to maintain the primary focus of the Higher 
Education Act since its inception in 1965--to ensure that students have 
access and opportunity to purse higher education.
  One of the most important elements of this bill aimed at ensuring 
student access and opportunity is the new, low interest rate for 
student loans. This legislation sets a student loan repayment interest 
rate of 7.43 percent which represents a significant reduction in the 
interest rate for students. The interest rate that was scheduled to 
take effect on July 1, 1998 would have destabilized the successful 
Federal Family Loan Program by causing thousands of lenders to stop 
making student loans, resulting in high numbers of students without 
student loans for this school year. The interest rate included in this 
conference report provides a significant reduction to students while 
maintaining the long-term viability of the student loan programs and 
ensuring that students will continue to have access to private loans at 
the lowest interest rate in 17 years. Depending on the size of their 
loan, this low interest rate will save students hundreds, even 
thousands, of dollars over the course of the loan.
  The conference report also offers students a low interest rate for 
consolidation loans.
  This conference report strengthens the major student opportunity 
programs in the act by focusing much needed attention and resources on 
these vital programs, with particular attention to the needs of low-
income students. This conference report reauthorizes the Pell Grant 
Program at its highest level ever, with maximum grant awards at $4,500 
in the 1999-2000 school year and increasing to $5,800 in the 2003-2004 
academic year. This bill also makes needed reforms to the TRIO program, 
which helps disadvantaged children prepare for college, and increases 
its authorization to $700 million.
  The vital work-study programs are also continued and expanded in this 
conference report. The authorization for the College Work-Study Program 
is increased to $1 billion for fiscal year 1999 from the current 
funding level of $830 million.
  The need analysis formula is also revised to ensure that the growing 
percentage of independents students will be able to retain a greater 
portion of their income.
  Another critical principle for these amendments was the improvement 
and modernization of the student aid delivery system. This legislation 
creates a Performance-Based Organization (PBO) within the Department of 
Education aimed at providing quality service to students and parents. 
The utilization of this PBO which will incorporate the best and most 
successful practices in the private financial sector, coupled with 
other reforms aimed at streamlining the student aid regulatory 
requirements will result in a better managed and higher quality federal 
student aid system.
  In addition to the development of the PBO, this bill includes 
significant reforms to the Federal Family Education Loan Program 
(FFELP), and specifically to guaranty agencies. This bill restructures 
the guaranty agency system to ensure that these important participants 
in the private loan program are given the flexibility they need to help 
students avoid defaulting on their loans while operating in a more cost 
effective and efficient manner which will benefit taxpayers as well as 
students and their families.
  A third principle which guided these amendments was the need for 
much-needed reform of teacher preparation programs. I am very pleased 
that this bill includes a new initiative for teacher training and 
professional development aimed at addressing the shortage of qualified 
teachers in this country which replaces the existing teacher 
preparation programs with a single authorization for three separate 
grant programs.
  This initiative encourages state level reforms intended to produce 
well trained and highly competent teachers, local level partnerships 
intended to improve under-performing teacher education programs, and 
provides a separate grant for States and partnerships to compete for 
funds specifically targeted toward teacher recruitment.
  States will compete to receive 45 percent of these teacher training 
dollars and can use the grants to strengthen their teacher 
certification requirements, create or expand alternative

[[Page S11080]]

certification programs to attract highly qualified people from other 
occupations to the teaching profession, to decrease the shortage of 
highly qualified teachers in high need areas, or to develop programs 
which reward excellent teachers and remove unqualified teachers.
  Partnerships will compete for 45 percent of the funds as well, while 
10 percent of the funds is reserved for recruitment grants.
  This reauthorization was also guided by a strong desire to promote 
college cost-cutting measures, utilizing some of the recommendations of 
the Commission on the Cost of Higher Education which presented its 
findings earlier this year. This legislation includes initiatives to 
ensure that parents and students are kept apprised of college costs and 
provide with comparative data to keep colleges accountable and higher 
education affordable; burdensome federal regulations are reduced; and 
the national role in encouraging affordable higher education is 
strengthened.
  This bill also streamlines and consolidates the many programs and 
activities which are found in the Higher Education Act. This act has 
become increasingly complex over the years and these amendments make 
great strides in simplifying the act and better targeting its programs 
and activities.
  It has been a pleasure to be part of the development of this critical 
legislation. I have found the bipartisanship displayed throughout this 
process encouraging and I would like to thank the staff who have worked 
on this important legislation for the last two years: on Senator 
Jefford's staff, Susan Hattan, Jenny Smulson, Scott Giles, Cory Heyman, 
and Pam Moran have done excellent work on this bill. In addition, 
Marianna Pierce with Senator Kennedy and Suzanne Day with Senator Dodd 
have worked diligently to ensure that this bill represents a strong 
bipartisan consensus. Thank you all so much for your long hours and 
excellent work.
  Again, I am pleased to have been a part of crafting this important 
legislation.


      study of market mechanisms in federal student loan programs

  Mr. DOMENICI. I would like to call attention to a study of market 
mechanisms in federal student loan programs, Section 801 of the 
conference report. I was pleased to see this issue addressed in the 
context of the Higher Education Act. As you know, Chairman Jeffords, 
our fiscal year 1999 Senate budget resolution raised concerns about the 
federal government setting interest rates for student loans and 
encouraged your Committee to look for a long term solution to the 
difficult problem of Congress setting these rates. I believe this study 
is a good first step and hopefully will give a good data on which to 
access where we go after the newly adopted student and lender rates 
sunset in 2003.
  One matter I wish to clarify with the Chairman is the participation 
of the Congressional Budget Office (CBO) in this study. CBO is a 
critical non-partisan analytical body on which we in Congress rely. By 
law they can not recommend specific policies or endorse the policy 
recommendations of others. I would assume then that the purpose for 
which you seek CBO's participation in the study for their expertise on 
student loans, and in general, study design and analysis.
  Mr. JEFFORDS. It is my understanding that the Budget Committee has 
asked CBO to conduct a broader-based study on student loan interest 
rates, subsidies, and the larger student aid program. I expect that 
study to be a valuable as well, and it is my view that the knowledge 
gained through this work could be of great benefit to the Department of 
Education and the Comptroller General as they undertake their own 
study. The role of CBO in the study contained in the conference 
agreement is to assist the other participants ask the right kinds of 
questions, use valid research and analytical tools, analyze the 
validity of the study's design or conclusions, where objective analysis 
can be brought to bear, and be an overall, non-partisan, resource for 
participants in the study.
  Mr. DOMENICI. I appreciate the Chairman's clarification. The study 
language makes reference to additional or dissenting views. Is it the 
intent of the Committee that all members of the study group, including 
CBO, shall have the opportunity to express independent concurring or 
dissenting views within the context of the preliminary as well as final 
report to Congress.
  Mr. JEFFORDS. That is correct.
  Mr. DOMENICI. I thank the Chairman.
  Mr. JEFFORDS. Mr. President, in closing, I am extremely pleased that 
the Senate with this vote, will have completed action on the conference 
report accompanying H.R. 6, the Higher Education Amendments of 1998.
  The scope of the Higher Education Act is so broad that the 
reauthorization of all the programs it covers is necessarily a 
demanding and time-consuming task. Bringing this process to a 
conclusion would not have been possible without the concerted efforts 
of members of both parties in both the House and the Senate.
  I express my particular gratitude to the members of the Labor and 
Human Resources Committee and their staffs, who have pulled together 
over the past 18 months to help shape a bill which will help ensure 
that our nation remains a leader in educational excellence for all of 
our citizens.
  Each and every member of the committee made a positive contribution 
to the development and refinement of this measure. I very much value 
the time, effort, and commitment they have brought to this task.
  I also extend my sincerest thanks to the many staff people who 
contributed to this product.
  I particularly recognize the efforts of Marianna Pierce and Jane 
Oates with Senator Kennedy, Townsend Lange with Senator Coats, and 
Suzanne Day and Megan Murray with Senator Dodd. These individuals--
along with my own staff members, Scott Giles, Susan Hattan, Cory 
Heyman, Pamela Moran, and Jenny Smulson--went ``above and beyond'' in 
terms of their diligent work on each and every aspect of this measure. 
I would also like to acknowledge the work of Heidi Scheuerman, Carolyn 
Dupree, and Leah Booth of my staff--who brought a semblance of control 
to the vast quantities of paper produced throughout this process.
  I also recognize and thank the staff of other members of the 
committee--all of whom have shown great dedication to this cause:
  Jackie Cooney with Senator Gregg;
  Lori Meyer with Senator Frist;
  John Connelly with Senator DeWine;
  Chad Calvert with Senator Enzi;
  Jenny Saunders and Rhett Butler with Senator Hutchinson;
  Julian Haynes with Senator Collins;
  Angie Stewart and Chas Phillips with Senator Warner;
  Robin Bowen and Holly Hacker with Senator McConnell;
  Bev Schroeder with Senator Harkin;
  Deborah Connelly with Senator Mikulski;
  Alexander Russo and Rena Subotnik with Senator Bingaman;
  Roger Wolfson and Robin Burkhe with Senator Wellstone;
  Mike Egan with Senator Murray; and
  Elyse Wasch with Senator Reed.
  I want to acknowledge the extraordinary assistance offered by Debb 
Kalcevic, Robin Seiler, Josh O'Hara, and Justin Latus with the 
Congressional Budget Office, Mark Sigurski with Senate Legislative 
Counsel, and Margot Schenet, Jim Stedman, and Barbara Miles, with the 
Congressional Research Service.
  This process has been a collaborative and bipartisan one every step 
of the way. It has produced a measure of which we can all be proud.
  Mr. President, I have no other requests for time. I yield back the 
remainder of my time.

                          ____________________