[Congressional Record Volume 148, Number 115 (Thursday, September 12, 2002)]
[Senate]
[Page S8570]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GREGG (for himself, Mr. Enzi, Ms. Collins, and Mr. 
        Cochran):
  S. 2932. A bill to make technical amendments to the Higher Education 
Act of 1965, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. GREGG. Mr. President, today I am proud to introduce, along with 
my colleagues Senator Enzi, Senator Collins, and Senator Cochran, the 
Higher Education Technical Amendments of 2002. This legislation makes 
several technical and non-controversial changes to the Higher Education 
Act, HEA, and is designed to provide relief from burdensome legal 
requirements, improve the financial aid process, and bring greater 
clarity to the law.
  Most importantly, it provides for a one-year extension of two 
provisions in the HEA that are of great importance to students, their 
families, and schools. These provide schools having low student loan 
default rates with exemptions from the requirement that loan proceeds 
be disbursed in multiple installments, and the requirement that the 
disbursement of loan proceeds to first-time undergraduate borrowers be 
delayed for 30 days after classes start. Under current law, these 
provisions are set to expire at the end of this month.
  Thousands of institutions of higher education across America count on 
these exemptions to save them time and money in the disbursement of 
their limited financial aid resources. These provisions also serve as 
an incentive for schools to keep their default rates low. Additionally, 
failing to act now means that students needing loan proceeds for books 
or living expenses could be seriously disadvantaged. At a time when 
both student and institutional budgets are being squeezed, we should do 
what we can to provide them with relief.
  The bill makes a number of other beneficial changes to the HEA. Most 
notably, it: Helps protect home-schooled students by making it clear 
that institutions of higher education will not lose their institutional 
eligibility for Federal financial aid by admitting home-schooled 
students. Clarifies the Federal policy on the return of financial aid 
funds when students withdraw, to better protect students' grant aid. 
Removes barriers to students seeking forbearance from lenders on 
student loan payments, by eliminating the requirement that new 
agreements between lenders and borrowers be in writing. Instead, the 
bill allows a lender to accept a request for forbearance over the 
telephone, as long as a confirmation notice of the agreement reached is 
provided to the borrower and the borrower's file is updated. Makes 
clear that under the Thurgood Marshall Legal Educational Opportunity 
Program, the U.S. Department of Education can provide scholarship aid 
to low-income and minority students to prepare for and attend law 
school. Eases requirements for Hispanic-Serving Institutions, HSIs, by 
allowing them to apply for Federal HSI grants without waiting two years 
between applications. Corrects a drafting error in current law that 
mistakenly bars students attending certain nonprofit schools of 
veterinary medicine from eligibility for the Federal Family Education 
Loan Program. Allows financial aid administrators to use ``professional 
judgment'' to adjust a student's financial need in cases where the 
student is a ward of the court. Expands the use of technology to 
provide voter registration material directly to students in a timely 
manner.
  I am well aware that extending the two provisions set to expire on 
September 30 for another year will cost $10 million. However, we intend 
to find the necessary offsets to pay for these extensions as the bill 
progresses through the Senate. It is my sincere hope that we can all 
work together in these final weeks of the session to see that this 
legislation becomes law.
  The Higher Education Technical Amendments of 2002 will improve the 
financial aid process for everyone involved, but most importantly, for 
our nation's postsecondary students. I urge my colleagues to support 
this legislation.

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