[House Report 105-499]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-499
_______________________________________________________________________


 
PROVIDING FOR THE CONSIDERATION OF H.R. 6, HIGHER EDUCATION AMENDMENTS 
                                OF 1998

                                _______
                                

   April 28, 1998.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


Mr. Hastings of Washington, from the Committee on Rules, submitted the 
                               following

                              R E P O R T

                       [To accompany H. Res. 411]

    The Committee on Rules, having had under consideration 
House Resolution 411, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 6, 
the ``Higher Education Amendments of 1998'' under a modified 
open rule, providing one hour of general debate divided equally 
between the chairman and ranking minority member of the 
Committee on Education and the Workforce.
    The rule waives all points of order against consideration 
of the bill. The rule provides that the amendment in the nature 
of a substitute recommended by the Committee on Education and 
the Workforce now printed in the bill, modified by the 
amendments printed in part 1 of this report shall be considered 
as an original bill for the purpose of amendment.
    The rule provides that that amendment in the nature of a 
substitute shall be considered by title and that each title 
shall be considered as read. The rule waives all points of 
order against that amendment in the nature of a substitute.
    The rule provides that before consideration of any other 
amendment it shall be in order to consider the amendment 
printed in part 2 of this report, if offered by Representative 
Goodling or his designee. The rule provides that that amendment 
shall be considered as read, shall be debatable for twenty 
minutes equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be 
subject to a demand for division of the question in the House 
or in the Committee of the Whole. The rule waives all points of 
order against that amendment.
    The rule provides that if that amendment is adopted, the 
provisions of the amendment in the nature of a substitute as 
then perfected shall be considered as original text for the 
purpose of further amendment.
    The rule provides that no other amendment to the amendment 
in the nature of a substitute shall be in order except those 
printed in the Congressional Record.
    The rule allows for the Chairman of the Committee of the 
Whole to postpone votes during consideration of the bill, and 
to reduce votes to five minutes on a proposed question if the 
vote follows a fifteen minute vote.
    Finally, the rule provides one motion to recommit with or 
without instructions.

  summary of chairman goodling's manager's amendment, prepared by the 
                committee on education and the workforce

    The Chairman's Amendment makes five significant changes to 
H.R. 6 as reported by the Education and the Workforce Committee 
and many technical and conforming changes.
    The significant changes include:
          Modifications to the Teacher Quality Enhancement 
        Grants to specifically increase emphasis on 
        partnerships between Governors, exemplary schools of 
        education and local education agencies. It also narrows 
        recruitment activities to schools most in need of 
        quality teachers, such as in poor urban and rural 
        areas;
          The adoption of a program to provide grants to combat 
        violent crimes against women on campuses which was 
        considered by the Committee and modified for inclusion 
        in the Chairman's Amendment. This program authorizes 
        the Secretary of Education to provide grant assistance 
        to institutions of higher education for use in 
        providing training to administrators, security 
        personnel, campus personnel and student organizations 
        in order to strengthen effective security and improve 
        victim services for women who are victims of violent 
        crimes;
          Modifications to the development of the Free 
        Application for Federal Student Aid that will ensure 
        the inclusion of data items necessary to assist States 
        in the awarding of State financial assistance;
          The establishment of interest rates for consolidation 
        loans made on or after October 1, 1998 that will 
        provide borrowers with an interest rate based on the 
        weighted average of their loans consolidated, capped at 
        a maximum rate of 8.25%; and
          Establishes clear application requirements for 
        institutions of higher education that wish to offer 
        expanded distance education programs to students. The 
        application requirements are designed to ensure that 
        students are being provided quality education through 
        distance education programs.

Offsetting amendments

    Default Definition: For all newly delinquent loans after 
October 1, 1998, change the time period before lenders may file 
a default claim from the 180th day from the first delinquency 
to the 270th day. The guaranty agency time period for filing a 
reinsurance claim with the Federal government would change from 
225th day from the first delinquency to the 315th day. This 
assumes both outstanding and new loans are affected.
    Interest Capitalization: Under current law, the guaranty 
loan program lenders may capitalize ``no more frequently than 
quarterly''. The Administration has proposed to capitalize the 
interest accrued on unsubsidized and parent loans only at the 
time that the borrower enters repayment. Assume only new loans 
are affected.
    Recall Guaranty Agency Reserves: Recall an additional $65 
million in guaranty agency reserves. OMB estimates that 
guaranty agency reserves currently total $2.5 billion.

                                 PART I

    Amendments modifying the amendment in the nature of a 
substitute recommended by the Committee on Education and the 
Workforce:
    Page 189, beginning on line 12, strike paragraph (6) and 
redesignate the succeeding paragraphs accordingly.
    Page 210, beginning on line 10, strike paragraph (7) 
through line 14 (and redesignate the succeeding paragraph 
accordingly).
    At the end of the bill add the following new title:

                       TITLE XI--OFFSETS REQUIRED

SEC. 1101. ASSURANCE OF OFFSETS.

    (a) Declaration.--None of the provisions in this Act should 
take effect unless it contains the mandatory offsets set forth 
in subsection (b).
    (b) Enumeration of offsets.--The offsets referred to in 
subsection (a) are provisions that--
          (1) change the definition of default contained in 
        section 435(l) to extend the period of delinquency 
        prior to default by an additional 90 days;
          (2) capitalize the interest accrued on unsubsidized 
        and parent loans at the time that the borrower enters 
        repayment;
          (3) recall $65,000,000 in guaranty agency reserves, 
        in addition to the amount required to be recalled 
        pursuant to the amendments in section 422 of the Higher 
        Education Act of 1965 contained in this Act;
          (4) eliminate the dischargability in bankruptcy of 
        student loans made after the date of enactment of this 
        Act for the cost of attendance for a baccalaureate or 
        advanced degree, and for which the first payment was 
        due more than seven years before the commencement of 
        the bankruptcy action; and
          (5) sell sufficient commodities from the National 
        Defense stockpile to generate receipts of $80,000,000 
        in fiscal year 1999 and $480,000,000 over five years.
                              ----------                              


      1. An Amendment To Be Offered by Representative Goodling of 
         Pennsylvania, or a Designee, Debatable for 20 Minutes

  Page 8, line 5, strike ``is redesignated'' and insert ``is 
amended by striking subsection (a), and by redesignating 
subsection (b)''.
  Page 23, line 21, insert ``or veterinary'' after ``medical''; 
and on lines 23 and 24, strike ``a graduate medical school'' 
and insert ``such school''.
  Page 24, strike lines 22 through 24 and insert the following:
                                  ``(II) the institution has a 
                                clinical training program that 
                                was approved by a State as of 
                                January 1, 1992, or the 
                                institution's students complete 
                                their clinical training at an 
                                approved veterinary school 
                                located in the United States.
  Page 33, line 7, strike ``105(b)'' and insert ``105''.
  Page 58, beginning on line 21, strike part E through page 68, 
line 11, and insert the following:

              ``PART E--TEACHER QUALITY ENHANCEMENT GRANTS

``SEC. 271. PURPOSE.

  ``The purposes of this part are--
          ``(1) to provide competitive grants to States for 
        assistance in strengthening the quality of the teaching 
        force by improving the academic knowledge of teachers 
        in the subject areas in which they teach;
          ``(2) to hold institutions of higher education with 
        teacher preparation programs accountable for preparing 
        teachers who are highly competent in the academic 
        content areas in which they plan to teach, including 
        training in the effective uses of technologies in the 
        classroom; and
          ``(3) to recruit high quality individuals, including 
        individuals from other occupations, into the teaching 
        force.

``SEC. 272. ELIGIBILITY.

  ``(a) Definitions.--For purposes of this part:
          ``(1) Eligible grant recipient.--The term `eligible 
        grant recipient' means--
                  ``(A) other than for the purpose of section 
                273(b), a Governor of a State, except that if, 
                pursuant to the law or constitution of such 
                State, another individual, entity, or agency in 
                a State that is responsible for the teacher 
                certification and preparation activities 
                contained in the application, such term means 
                that individual, entity, or agency; and
                  ``(B) for the purpose of section 273(b), an 
                eligible partnership.
          ``(2) Eligible partnership.--The term `eligible 
        partnership' means an entity consisting of an exemplary 
        private independent or State-supported public 
        institution of higher education which prepares 
        teachers, and a local educational agency, and which may 
        also consist of the eligible grant recipient, other 
        institutions of higher education, public charter 
        schools, public and private nonprofit elementary and 
        secondary schools, or other public and private 
        nonprofit agencies or organizations.
  ``(b) Applications.--To be eligible to receive a grant under 
this part, an eligible grant recipient shall, at the time of 
the initial grant application, submit an application to the 
Secretary that meets the requirements of this part.
  ``(c) Contents of Application.--Such application shall 
include a description of how the eligible grant recipient 
intends to use funds provided under this part and such other 
information and assurances as the Secretary may require.

``SEC. 273. USE OF FUNDS.

  ``(a) General Activities.--The eligible grant recipient of a 
State that receives a grant under this subpart shall use a 
portion of such grant to carry out 1 or more of the following 
activities:
          ``(1) Reforming State teacher certification 
        requirements to ensure that current and future teachers 
        possess the necessary academic content knowledge in the 
        subject areas in which they are certified and assigned 
        to teach.
          ``(2) Providing prospective teachers alternatives to 
        schools of education through programs at colleges of 
        arts and sciences or at nonprofit organizations.
          ``(3) Funding programs which establish or expand 
        alternative routes to State certification for highly 
        qualified individuals, including mid-career 
        professionals from other occupations, 
        paraprofessionals, and former military personnel.
          ``(4) Implementing reforms which hold institutions of 
        higher education with teacher preparation programs 
        accountable for preparing teachers who are highly 
        competent in the academic content areas in which they 
        plan to teach.
          ``(5) Developing and implementing effective 
        mechanisms to expeditiously remove incompetent or 
        unqualified teachers.
          ``(6) Recruiting minorities, and others, into the 
        teaching and counseling professions, including 
        education paraprofessionals, former military personnel, 
        and mid-career professionals, by providing financial 
        and other assistance related to instruction, induction, 
        mentoring, and support services that include pre-
        service and in-service components, to serve within 
        schools which have--
                  ``(A) a high percentage of children in 
                poverty;
                  ``(B) low retention rates for teachers; or
                  ``(C) a high percentage of teachers teaching 
                subjects for which they are not qualified to 
                teach.
  ``(b) Partnership Activities.--An eligible partnership that 
receives a grant under this subpart shall use such funds to 
carry out 1 or more of the following activities:
          ``(1) Implementing reforms which hold institutions of 
        higher education with teacher preparation programs 
        accountable for preparing teachers who are highly 
        competent in the academic content areas in which they 
        plan to teach;
          ``(2) Creating opportunities for enhanced and ongoing 
        professional development which improves the academic 
        content knowledge of teachers in the subject areas in 
        which they are certified to teach or in which they are 
        working toward certification to teach.
          ``(3) Providing programs designed to implement the 
        successful integration of technology into teaching and 
        learning.
          ``(4) Recruiting minorities, and others, into the 
        teaching and counseling professions, including 
        education paraprofessionals, former military personnel, 
        and mid-career professionals, by providing financial 
        and other assistance related to instruction, induction, 
        mentoring, and support services that include pre-
        service and in-service components, to serve within 
        schools which have--
                  ``(A) a high percentage of children in 
                poverty;
                  ``(B) low retention rates for teachers; or
                  ``(C) a high percentage of teachers teaching 
                subjects for which they are not qualified to 
                teach.

``SEC. 274. COMPETITIVE AWARDS.

  ``(a) Competitive Grants.--
          ``(1) Applicability.--The Secretary shall make grants 
        in accordance with the requirements of this subsection 
        for any fiscal year for which the amount appropriated 
        under section 276 does not equal or exceed 
        $250,000,000.
          ``(2) Competitive basis for awards.--The Secretary 
        shall make annual grants under this subsection on a 
        competitive basis.
          ``(3) Peer review panel.--The Secretary shall provide 
        the applications submitted by eligible grant recipients 
        under section 272 to a peer review panel for 
        evaluation. With respect to each application, the peer 
        review panel shall initially recommend the application 
        for funding or for disapproval.
          ``(4) Priority.--In recommending applications to the 
        Secretary, the panel shall give priority to--
                  ``(A) applications from States with proposals 
                which promise initiatives to reform State 
                teacher certification requirements which are 
                designed to ensure that current and future 
                teachers possess the necessary academic content 
                knowledge in the subject areas in which they 
                are certified to teach or which include 
                innovative reforms to hold institutions of 
                higher education with teacher preparation 
                programs accountable for preparing teachers who 
                are highly competent in the academic content 
                areas in which they plan to teach; and
                  ``(B) eligible partnership applications 
                which--
                          ``(i) include the eligible grant 
                        recipient and demonstrate a high degree 
                        of collaboration with the State agency 
                        responsible for teacher certification 
                        and preparation; and
                          ``(ii) include a local educational 
                        agency which includes a school with--
                                  ``(I) a high percentage of 
                                children in poverty;
                                  ``(II) low retention rates 
                                for teachers; or
                                  ``(III) a high percentage of 
                                teachers teaching subjects for 
                                which they are not qualified to 
                                teach.
          ``(5) Ranking of applications.--With respect to each 
        application recommended for funding, the panel shall 
        assign the application a rank, relative to other 
        recommended applications, based on the priority 
        described in subsection (c), the extent to which the 
        application furthers the purposes of this part, and the 
        overall quality of the application, based onthe quality 
and scope of State-supported strategies to improve quality of teacher 
preparation and their teaching force.
          ``(6) Recommendation of amount.--With respect to each 
        application recommended for funding, the panel shall 
        make a recommendation to the Secretary with respect to 
        the amount of the grant that should be made. The 
        Secretary shall use \1/3\ of the funds made available 
        under this part to fund applications submitted by 
        eligible partnerships.
          ``(7) Secretarial selection.--
                  ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall determine, based on 
                the peer review panel's recommendations, which 
                applications shall receive funding and the 
                amounts of such grants. In determining grant 
                amounts, the Secretary shall take into account 
                the total amount of funds available for all 
                grants under this part and the types of 
                activities proposed to be carried out.
                  ``(B) Effect of ranking by panel.--In making 
                grants under this part, the Secretary shall 
                select applications according to the ranking of 
                the applications by the peer review panel, 
                except in cases where the Secretary determines, 
                for good cause, that a variation from that 
                order is appropriate.
  ``(b) Formula Grants.--
          ``(1) Allotment.--For any fiscal year for which the 
        amount appropriated to carry out this part exceeds 
        $250,000,000, the Secretary shall make allotments to 
        the eligible grant recipient of each State, pursuant to 
        the formula described in paragraph (2), to enable the 
        eligible grant recipient to carry out the activities 
        under this part, including the funding of eligible 
        partnerships to carry out activities described in 
        section 273(b).
          ``(2) Allotment formula.--For any such fiscal year, 
        an eligible grant recipient from each State that 
        submits an application under section 272(a) shall 
        receive an allotment under this part in an amount that 
        bears the same ratio to the amount appropriated as the 
        school age population ages 5 through 17 of the State 
        bears to the school age population ages 5 through 17 of 
        all the States, except that no State shall receive less 
        than an amount equal to \1/4\ of 1 percent of the total 
        amount.
  ``(c) Additional Requirements.--
          ``(1) Matching requirement.--Each State receiving 
        funds under this part shall provide, from non-Federal 
        sources, an amount equal to \1/2\ of the amount of the 
        grant in cash or in kind to carry out the activities 
        supported by the grant.
          ``(2) Limitation on administrative expenses.--An 
        eligible recipient that receives a grant under this 
        part may use not more than 2 percent of the grant funds 
        for administrative costs.
          ``(3) Reporting.--
                  ``(A) In general.--An eligible grant 
                recipient that receives a grant under this 
                section shall submit an accountability report 
                to the Secretary and the Committee on Education 
                and the Workforce of the House of 
                Representatives and the Committee on Labor and 
                Human Resources of the Senate. Such reports 
                shall include a description of the degree to 
                which substantial progress has been made in 
                meeting the following goals:
                          ``(i) Raising the State academic 
                        standards required to enter the 
                        teaching profession.
                          ``(ii) Increasing the percentage of 
                        classes taught in core academic subject 
                        areas by teachers fully certified by 
                        the State to teach in those subject 
                        areas.
                          ``(iii) Decreasing shortages of 
                        qualified teachers in poor urban and 
                        rural areas.
                          ``(iv) Increasing opportunities for 
                        enhanced and ongoing professional 
                        development which improves the academic 
                        content knowledge of teachers in the 
                        subject areas in which they are 
                        certified to teach or in which they are 
                        working toward certification to teach.
                  ``(B) Accountability of state institution of 
                higher education.--Prior to receiving funds 
                under this part, an eligible grant recipient 
                shall demonstrate that at least 80 percent of 
                graduates of each of the exemplary institutions 
                of higher education in any eligible partnership 
                described in section 273(a)(2) who enter the 
                field of teaching pass all applicable State 
                qualification assessments of new teachers, 
                which must include assessments of each 
                prospective teacher's subject matter knowledge 
                in the content area or areas in which the 
                teacher provides instruction. Prior to each 
                subsequent receipt of funds under this part, 
                such State shall demonstrate that 70 percent of 
                the graduates of each institution of higher 
                education in the State have met such goal and 
                continue to progress to exceed such goal. Such 
                assessment shall be at least as rigorous as 
                those in place on the date of enactment of this 
                Act and shall have qualifying scores no lower 
                than those in place on the date of enactment of 
                this Act.
                  ``(C) Provision to peer review panel.--The 
                Secretary shall provide the reports submitted 
                under subparagraph (A) to the peer review panel 
                convened under subsection (a)(3). The panel 
                shall use such accountability report in 
                recommending applications for subsequent 
                funding under this section.
          ``(4) Teachers qualifications provided to parent upon 
        request.--Any local educational agency that 
        participates as an eligible recipient or partner under 
        this part shall make available, upon request and in an 
        understandable and uniform format, to any parent of a 
        student attending any school in the local educational 
        agency, information regarding the qualifications of the 
        student's classroom teacher, both generally and with 
        regard to the subject matter in which the teacher 
        provides instruction.

``SEC. 275. LIMITATIONS.

  ``(a) Federal Control Prohibited.--Nothing in this part shall 
be construed to permit, allow, encourage, or authorize any 
Federal control over any aspect of any private, religious, or 
home school, whether or not a home school is treated as a 
private school or home school under State law. This section 
shall not be construed to bar private, religious, or home 
schools from participation in programs or services under this 
part.
  ``(b) No Change in State Control Encouraged or Required.--
Nothing in this part shall be construed to encourage or require 
any change in a State's treatment of any private, religious, or 
home school, whether or not a home school is treated as a 
private school or home school under State law.
  ``(c) National System of Teacher Certification Prohibited.--
Nothing in this part shall be construed to permit, allow, 
encourage, or authorize any national system of teacher 
certification.

``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this 
part such sums as may be necessary for each of the fiscal years 
1999 through 2003.''.
  Page 68, after line 11, insert the following new sections 
(and redesignate the succeeding section and conform the table 
of contents accordingly):

SEC. 206. CAMPUS SAFETY.

  (a) Grants to Combat Violent Crimes Against Women on 
Campuses.--Title II is further amended by adding at the end the 
following new part:

  ``PART F--GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON CAMPUSES

``SEC. 281. GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON CAMPUSES.

  ``(a) Grants Authorized.--
          ``(1) In general.--The Secretary is authorized to 
        make grants to institutions of higher education for use 
        to provide training to administrators, security 
        personnel, and campus personnel and student 
        organizations for the purpose of developing and 
        strengthening effective security and investigation 
        strategies to combat violent crimes against women on 
        campuses, and to develop and strengthen victim services 
        in cases involving violent crimes against women on 
        campuses, which may include partnerships with local 
        criminal justice authorities and community-based 
        victims services agencies.
          ``(2) Award basis.--The Secretary shall award grants 
        and contracts under this section on a competitive 
        basis.
          ``(3) Equitable participation.--The Secretary shall 
        make every effort to ensure the equitable participation 
        of private and public institutions of higher education 
        and to ensure the equitable geographic participation of 
        such institutions in the activities assisted under this 
        part.
          ``(4) Priority.--In the award of grants and contracts 
        under this section, the Secretary shall give priority 
        to institutions of higher education or consortia of 
        such institutions that show the greatest need for the 
        sums requested.
  ``(b) Use of Grant Funds.--Funds provided under this part may 
be used for the following purposes:
          ``(1) To provide training for campus security and 
        college personnel, including campus disciplinary or 
        judicial boards, that address the issues of sexual 
        assaults, stalking, and domestic violence.
          ``(2) To implement and operate education programs for 
        the prevention of violent crimes against women.
          ``(3) To develop, enlarge, or strengthen support 
        services programs including medical or psychological 
        counseling for victims of sexual offense crimes.
          ``(4) To create, disseminate, or otherwise provide 
        assistance and information about victims' options on 
        and off campus to bring disciplinary or other legal 
        action.
          ``(5) To train campus administrators and campus 
        security personnel to more effectively identify and 
        respond to violent crimes against women on campus, 
        including the crimes of sexual assault, stalking, and 
        domestic violence.
          ``(6) To develop and implement more effective campus 
        policies, protocols, orders, and services specifically 
        devoted to prevent, identify, and respond to violent 
        crimes against women on campus, including the crimes of 
        sexual assault, stalking, and domestic violence.
          ``(7) To develop, enlarge, or strengthen victim 
        services programs for local campuses and to improve 
        delivery of victim services on campuses.
          ``(8) To provide capital improvements (including 
        improved lighting and communications facilities but not 
        including the construction of buildings) on campuses to 
        address violent crimes against women on campus, 
        including the crimes of sexual assault, stalking, and 
        domestic violence.
          ``(9) To support improved coordination between campus 
        administrators, campus security personnel, and local 
        law enforcement to reduce violent crimes against women 
        on campus.
  ``(c) Applications.--
          ``(1) In general.--In order to be eligible to be 
        awarded a grant under this section for any fiscal year, 
        an institution of higher education shall submit an 
        application to the Secretary at such time and in such 
        manner as the Secretary shall prescribe.
          ``(2) Contents.--Each application submitted under 
        paragraph (1) shall--
                  ``(A) describe the need for grant funds and 
                the plan for implementation for any of the 
                purposes described in subsection (b);
                  ``(B) describe how the campus authorities 
                shall consult and coordinate with nonprofit and 
                other victim services programs, including 
                sexual assault and domestic violence victim 
                services programs;
                  ``(C) provide measurable goals and expected 
                results from the use of the grants funds;
                  ``(D) provide assurances that the Federal 
                funds made available under this section shall 
                be used to supplement and, to the extent 
                practical, increase the level of funds that 
                would, in the absence of Federal funds, be made 
                available by the applicant for the purpose 
                described in this part; and
                  ``(E) include such other information and 
                assurances as the Secretary reasonably 
                determines to be necessary.
          ``(3) Compliance with campus crime reporting 
        required.--No institution of higher education shall be 
        eligible for a grant under this section unless such 
        institution is in compliance with the requirements of 
        section 485(f) of this Act.
  ``(d) Reporting.--Not later than 180 days after the end of 
the fiscal year for which grants are made under this part, the 
Secretary shall submit to the committees of the House of 
Representatives and the Senate responsible for issues relating 
to higher education and crime, a report that includes--
          ``(1) the number of grants and funds distributed 
        under this part;
          ``(2) a summary of the purposes for which these 
        grants were provided and an evaluation of their 
        progress;
          ``(3) a statistical summary of the persons served, 
        detailing the nature of victimization, and providing 
        data on age, sex, race, ethnicity, disability, 
        relationship to offender, geographic distribution, and 
        type of campus; and
          ``(4) an evaluation of the effectiveness of programs 
        funded under this part, including an evaluation based 
        on the reduction observed in crimes reported pursuant 
        to section 485(f).
  ``(f) Grantee Reporting.--Upon completion of the grant or 
contract period under this section, the grantee institution or 
consortium of such institutions shall file a performance report 
with the Secretary explaining the activities carried out 
together with an assessment of the effectiveness of those 
activities in achieving the purposes of this section. The 
Secretary shall suspend funding for an approved application if 
an applicant fails to submit an annual performance report.
  ``(g) Definitions.--In this part--
          ``(1) the term `domestic violence' includes acts or 
        threats of violence, not including acts of self-
        defense, committed by a current or former spouse of the 
        victim, by a person with whom the victim shares a child 
        in common, by a person who is cohabitating with or has 
        cohabitated with the victim, by a person similarly 
        situated to a spouse of the victim under the domestic 
        or family violence laws of the jurisdiction, or by any 
        other person against a victim who is protected from 
        that person's acts under the domestic or family 
        violence laws of the jurisdiction;
          ``(2) the term `sexual assault' means any conduct 
        proscribed by chapter 109A of title 18, United States 
        Code, whether or not the conduct occurs in the special 
        maritime and territorial jurisdiction of the United 
        States or in a Federal prison and includes both 
        assaults committed by offenders who are strangers to 
        the victim and assaults committed by offenders who are 
        known or related by blood or marriage to the victim; 
        and
          ``(3) the term `victim services' means a nonprofit, 
        nongovernmental organization that assists domestic 
        violence or sexual assault victims, including campus 
        women's centers, rape crisis centers, battered women's 
        shelters, and other sexual assault or domestic violence 
        programs including campus counseling support and victim 
        advocate organizations with domestic violence, 
        stalking, and sexual assault programs, whether or not 
        organized and staffed by students.
  ``(h) Authorization of Appropriations.--For the purpose of 
carrying out this part, there are authorized to be appropriated 
$10,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years.''.
  Page 108, line 19, insert ``State agencies,'' after ``such 
as''.
  Page 132, line 15, strike ``computer-related careers'' and 
insert ``careers in information technology''.
  Page 135, line 12, strike ``September 30, 2001'' and insert 
``the earlier of the date of enactment of the Higher Education 
Amendments of 1998 or October 1, 1998''.
  Page 141, beginning on line 22, strike paragraph (5) through 
page 142, line 4, and insert the following:
          ``(5) interest earned on the Federal Fund during the 
        first 3 years after the date of enactment of this 
        section by a limited number of guaranty agencies (not 
        to exceed 10) that demonstrate to the Secretary the 
        potential for a negative cash flow in the Operating 
        Fund during the restructuring of their operations in 
        accordance with the requirements of this section and 
        section 422A.
  Page 144, line 23, strike ``$30,000,000'' and insert 
``$43,000,000''.
  Page 145, line 16, strike ``$150,000,000'' and insert 
``$215,000,000''.
  Page 145, line 21, insert ``agency'' after ``guaranty''.
  Page 148, strike lines 10 through 17 and insert the 
following:
          (3) Guaranty agency reserve level.--Section 428(c)(9) 
        is amended--
                  (A) in subparagraph (A), by striking ``.5 
                percent'' and inserting ``0.25 percent''; and
                  (B) in subparagraph (C)--
                          (i) by striking ``80 percent pursuant 
                        to section 428(c)(1)(B)(ii)'' and 
                        inserting ``85 percent pursuant to 
                        paragraph (1)(B)(i) of this 
                        subsection''; and
                          (ii) by striking ``30 working days'' 
                        and inserting ``45 working days''.
  Page 149, beginning on line 23, strike ``presented that the 
guaranty agency successfully brings'' and insert ``paid as a 
result of the loan being brought''.
  Page 150, beginning on line 8, strike ``the borrower'' and 
all that follows through the period on line 10 and insert the 
following: ``at least 12 months has elapsed between the date 
the borrower became current in his or her payments and the date 
the lender filed a subsequent default aversion assistance 
request.''.
  Page 153, strike lines 5 through 12 and insert the following:
          ``(3) PLUS loans.--With respect to any loan under 
        section 428B for which the first disbursement is made 
        on or after July 1, 1998, the applicable rate of 
        interest shall, during any 12-month period beginning on 
        July 1 and ending on June 30, be determined on the 
        preceding June 1 and be equal to the lesser of--
                  ``(A)(i) the bond equivalent rate of 91-day 
                Treasury bills auctioned at the final auction 
                held prior to such June 1; plus
                  ``(ii) 3.1 percent; or
                  ``(B) 9.0 percent.
          ``(4) Consolidation loans.--With respect to any 
        consolidation loan under section 428C for which the 
        application is received by an eligible lender on or 
        after October 1, 1998, the applicable rate of interest 
        shall be at an annual rate on the unpaid principal 
        balance of the loan that is equal to the lesser of--
                  ``(A) the weighted average of the interest 
                rates on the loans consolidated, rounded to the 
                nearest higher one-eighth of one percent; or
                  ``(B) 8.25 percent.
  Page 154, line 8, after ``paragraph,'' insert ``and except as 
provided in subparagraph (B),''.
  Page 155, line 10, strike ``clause (iv)'' and insert ``clause 
(v)''.
  Page 155, strike lines 12 through 23 and insert the 
following:
                  ``(iv) Consolidation loans.--In the case of 
                any consolidation loan for which the 
                application is received by an eligible lender 
                on or after October 1, 1998, and for which the 
                applicable interest rate is determined under 
                section 427A(a)(4), clause (i)(III) of this 
                subparagraph shall be applied by substituting 
                `3.1 percent' for `2.8 percent', subject to 
                clause (v) of this subparagraph.
                  ``(v) Limitation on special allowances for 
                PLUS and consolidation loans.--In the case of 
                PLUS loans made under section 428B and 
                disbursed on or after July 1, 1998, for which 
                the interest rate is determined under 
                427A(a)(3), a special allowance shall not be 
                paid for such loan unless the rate determined 
                under subparagraph (A) of such section (without 
                regard to subparagraph (B) of such section) 
                exceeds 9.0 percent. In the case of 
                consolidation loans made under section 428C for 
                which the application is received by an 
                eligible lender on or after October 1, 1998, 
                and for which the applicable interest rate is 
                determined under section 427A(a)(4), a special 
                allowance shall not be paid for such loan 
                unless the rate determined under subparagraph 
                (A) of such section (without regard to 
                subparagraph (B) of such section) exceeds 8.25 
                percent.''.
          (2) Consolidation loans.--Section 428C(c)(1) (20 
        U.S.C. 1078-3) is amended--
                  (A) by striking everything preceding 
                subparagraph (D) and inserting the following:
          ``(1) Interest rate.--(A) Except as provided in 
        subparagraph (B), with respect to any loan made under 
        this section for which the application is received by 
        an eligible lender on or after October 1, 1998, the 
        applicable interest rate shall be determined under 
        section 427A(a)(4).''; and
                  (B) by redesignating subparagraph (D) as 
                subparagraph (B).
          (3) Conforming amendment.--Section 438(b)(2)(C)(ii) 
        is amended by striking ``In the case'' and inserting 
        ``Subject to subparagraph (F), in the case''.
  Page 156, strike line 21 and all that follows through page 
157, line 5, and insert the following:
        that sets forth a schedule for disbursement of the 
        proceeds of the loan in installments, consistent with 
        the requirements of section 428G.
  Page 157, line 6, strike ``clause (ii) of''.
  Page 164, strike lines 21 and 22 and insert the following:
          ``(2) Limitations on blanket certificate of 
        guaranty.--(A) An eligible lender may not make a loan 
        to a borrower under this section after such lender 
        receives a notification from the guaranty agency that 
        the borrower is not an eligible borrower.
          ``(B) A guaranty agency and eligible lender
  Page 171, strike line 23 and all that follows through page 
172, line 6, and insert the following:

statement that sets forth a schedule for disbursement of the 
proceeds of the loan in installments, consistent with the 
requirements of section 428G.''.
  Page 172, after line 22, insert the following new subsection 
(and redesignate the succeeding subsections accordingly):
  (c) Capitalization of Interest.--Section 428H(e)(2) is 
amended to read as follows:
          ``(2) Capitalization of interest.--Interest on loans 
        made under this section for which payments of principal 
        are not required during the in-school and grace periods 
        or for which payments are deferred under sections 
        427(a)(2)(C) and 428(b)(1)(M) shall, if agreed upon by 
        the borrower and the lender--
                  ``(A) be paid monthly or quarterly; or
                  ``(B) be added to the principal amount of the 
                loan by the lender only--
                          ``(i) when the loan enters repayment;
                          ``(ii) at the expiration of a grace 
                        period, in the case of a loan that 
                        qualifies for a grace period;
                          ``(iii) at the expiration of a period 
                        of deferment; and
                          ``(iv) when the borrower defaults.
                Such capitalization of interest shall not be 
                deemed to exceed the annual insurable limit on 
                account of the student.''.
  Page 176, line 5, insert ``in accordance'' after ``note''.
  Page 184, after line 16, insert the following new 
subsections:
  (d) Definition of Default.--
          (1) Amendment.--Section 435(l) is amended--
                  (A) by striking ``180 days'' and inserting 
                ``270 days''; and
                  (B) by striking ``240 days'' and inserting 
                ``330 days''.
          (2) Effective date.--The amendment made by paragraph 
        (1) shall apply with respect to loans for which the 
        first day of delinquency occurs on or after the date of 
        enactment of this Act.
  (e) Cohort Default Rate: Rehabilitation.--Section 
435(m)(2)(C) is amended by adding at the end the following new 
sentences: ``Within 2 years after the date of enactment of the 
Higher Education Amendments of 1998, the Secretary shall, by 
regulation, require guaranty agencies to collect data with 
respect to defaulted loans in a manner that will permit the 
identification of any defaulted loan for which (i) the borrower 
is currently making payments and has made not less than 6 
consecutive on-time payments by the end of such following 
fiscal year, and (ii) a guaranty agency has renewed the 
borrower's title IV eligibility as provided in section 428F(b). 
Upon a determination by the Secretary that such data is 
available, the Secretary shall, by regulation, prescribe the 
extent to which any such defaulted loan may be excluded from 
the calculation of the cohort default rate under this 
subsection.''.
  Page 184, beginning on line 18, strike subsection (a) through 
line 22 (and redesignate the succeeding subsections 
accordingly).
  Page 184, line 23, strike ``(b) Discharge.--''.
  Page 203, after line 2, insert the following new paragraph 
(and redesignate the succeeding paragraphs accordingly):
          ``(4) Consolidation loans.--Any Federal Direct 
        Consolidation loan for which the application is 
        received on or after October 1, 1998, shall bear 
        interest at an annual rate on the unpaid principal 
        balance of the loan that is equal to the lesser of--
                  ``(i) the weighted average of the interest 
                rates on the loans consolidated, rounded to the 
                nearest higher one-eighth of one percent; or
                  ``(ii) 8.25 percent.
  Page 203, line 23, strike ``The amendments'' and insert 
``Except as otherwise provided therein, the amendments''.
  Page 220, line 14, strike ``and'' and after line 14 insert 
the following new subparagraph (and redesignate the succeeding 
subparagraph accordingly):
                  (F) in paragraph (3)(A)(i), by striking 
                ``(H), or (I)'' and inserting ``(H), (I), (J), 
                or (K)''; and
  Page 224, strike lines 15 though 21 and insert the following:
          ``(6) Allowance for parents' negative adjusted 
        available income.--The allowance for parents' negative 
        adjusted available income is the amount, if any, by 
        which the sum of the amounts deducted under 
        subparagraphs (A) through (F) of paragraph (2) exceeds 
        the sum of the parents' total income (as defined in 
        section 480) and the family contribution from assets 
        (as determined in accordance with subsection (c).''.
  Page 227, line 17, strike ``1997-1998'' and insert ``1999-
2000''.
  Page 227, line 25, strike ``1996'' and insert ``1998''.
  Page 228, after line 2, insert the following new section (and 
redesignate the succeeding sections and conform the table of 
contents accordingly):

SEC. 452. SIMPLIFIED NEEDS TEST; ZERO EXPECTED FAMILY CONTRIBUTION.

  Section 479 is amended--
          (1) in subsection (b)(3)--
                  (A) in the matter preceding subparagraph (A), 
                by striking ``this paragraph'' and inserting 
                ``this subsection, or subsection (c), as the 
                case may be,'';
                  (B) in subparagraph (A), by striking ``or'' 
                at the end thereof;
                  (C) by redesignating subparagraph (B) as 
                subparagraph (C); and
                  (D) by inserting after subparagraph (A) the 
                following new subparagraph:
                  ``(B) a form 1040 (including any prepared or 
                electronic version of such form) required 
                pursuant to the Internal Revenue Code of 1986, 
                except that such form shall be considered a 
                qualifying form only if the student or family 
                files such form in order to take a tax credit 
                under section 25A of the Internal Revenue Code 
                of 1986, and would otherwise be eligible to 
                file a form described in subparagraph(A); or'';
          (2) in subsection (c)--
                  (A) by amending paragraph (1)(A) to read as 
                follows:
                  ``(A) the student's parents file, or are 
                eligible to file, a form described in 
                subsection (b)(3), or certify that they are not 
                required to file an income tax return and the 
                student files, or is eligible to file, such a 
                form, or certifies that the student is not 
                required to file an income tax return; and''; 
                and
                  (B) by amending paragraph (2)(A) to read as 
                follows:
                  ``(A) the student (and the student's spouse, 
                if any) files, or is eligible to file, a form 
                described in subsection (b)(3), or certifies 
                that the student (and the student's spouse, if 
                any) is not required to file an income tax 
                return; and''.
  Page 231, line 15, strike ``and'', and after such line insert 
the following new subparagraph (and redesignate the succeeding 
subparagraph accordingly):
                  (C) by striking the second sentence and 
                inserting the following: ``The Secretary shall 
                include on the form developed under this 
                subsection such data items as the Secretary 
                determines are appropriate for inclusion, 
                selected in consultation with States to assist 
                in the awarding of State financial assistance, 
                except that in no case shall the number of such 
                data items be less than the number included on 
                the form on the date of enactment of the Higher 
                Education Amendments of 1998.''; and
  Page 232, line 12, strike ``graph'' and insert ``graphs''.
  Page 233, strike lines 6 through 18, and on line 19, strike 
``No fee shall'' and insert the following:
          ``(C) No fee shall
  Page 234, line 17, strike the close quotation marks and 
following period and after such line insert the following new 
paragraph:
          ``(6) Support to third party servicers and private 
        software providers.--The Secretary shall support 
        private organizations and consortia thereof in the 
        development of software used by eligible institutions 
        for the administration of funds under this title. The 
        Secretary shall provide in a timely manner to such 
        organizations and consortia all necessary 
        specifications that data and software developed, 
        produced, and distributed (including any diskette, 
        modem, or network communications) must meet. These 
        specifications shall contain record layouts for 
        required data and test cases that such organizations or 
        consortia may use to test the accuracy of its software. 
        The Secretary shall develop in advance of each 
        processing cycle an annual schedule for providing such 
        specifications. The Secretary shall, to the extent 
        practicable, use means of providing such support, 
        including conferences and other meetings, outreach, and 
        technical support mechanisms (including telephone 
        support, training and printed reference materials). The 
        Secretary shall, from time to time, solicit from such 
        organizations and consortia means of improving the 
        support provided by the Secretary.''.
  Page 235, line 12, strike ``and''; on line 17, strike the 
period and insert ``; and''; and after line 17 insert the 
following new paragraph:
          (3) in paragraph (5), by striking ``Trust Territory 
        of the Pacific Islands'' and inserting ``the Federated 
        States of Micronesia, the Republic of the Marshall 
        Islands, or the Republic of Palau''.
  Page 235, strike lines 18 through 20 and insert the 
following:
  (b) Termination of Eligibility.--Section 484(j) is amended to 
read as follows:
  ``(j) Assistance Under Subparts 1 and 3, of Part A, and Part 
C.--Notwithstanding any other provision of law, a student shall 
be eligible until September 30, 2001, if otherwise qualified, 
for assistance under subparts 1 and 3 of part A, and part C, of 
this title, if the student is otherwise qualified and--
          ``(1) is a citizen of the Federated States of 
        Micronesia, the Republic of the Marshall Islands, or 
        the Republic of Palau, and attends an institution of 
        higher education in Guam or a public or nonprofit 
        private institution of higher education in the 
        Federated States of Micronesia, the Republic of the 
        Marshall Islands, or the Republic of Palau; or
          ``(2) meets the requirements of subsection (a)(5) and 
        attends a public or nonprofit private institution of 
        higher education in the Federated States of Micronesia, 
        the Republic of the Marshall Islands, or the Republic 
        of Palau.''.
  Page 236, line 2, after ``income,'' insert ``Federal income 
taxes paid,''.
  Page 245, line 17, strike the close quotation marks and 
following period and after such line insert the following:
  ``(10) Nothing in this section shall require the reporting or 
disclosure of privileged information.''.
  Page 252, line 16, after the period insert the following:

Each application shall include--
          ``(1) a description of the institution or 
        consortium's consultation with a recognized accrediting 
        agency or association with respect to quality 
        assurances for the distance education programs to be 
        offered;
          ``(2) a description of the statutory and regulatory 
        requirements described in subsection (b)(2) for which a 
        waiver is sought and the reasons for which the waiver 
        is sought;
          ``(3) a description of the distance education 
        programs to be offered;
          ``(4) a description of the students to whom distance 
        education programs will be offered;
          ``(5) an assurance that the institution or consortium 
        will offer full cooperation with the ongoing 
        evaluations of the demonstration program provided for 
        in this section; and
          ``(6) such other information as the Secretary may 
        require.
  Page 252, line 18, insert ``of'' after ``sample''.
  Page 253, strike lines 9 and 10 and insert the following:
                  ``(A) the extent to which the institution or 
                consortia of institutions has met the goals set 
                forth in its application to the Secretary, 
                including the measures of program quality 
                assurance;
  Page 262, line 15, insert ``and'' after the semicolon, and 
strike lines 16 through 20 and insert the following:
                  (I) by striking ``(J), and (L)'' and 
                inserting ``and (K)'';
  Page 306, strike line 14, and insert the following: ``this 
part for''.
  Page 335, after line 15, insert the following new section 
(and conform the table of contents accordingly):

SEC. 808. PROCEDURES FOR CANCELLATIONS AND DEFERMENTS FOR ELIGIBLE 
                    DISABLED VETERANS.

  The Secretary shall, in consultation with the Secretary of 
Veterans Affairs, develop and implement a procedure under which 
Department of Veterans Affairs physicians shall provide the 
certification and affidavits needed to enable eligible disabled 
veterans to document their eligibility for deferments and 
cancellations of student loans made, insured, or guaranteed 
under this title. Not later than 6 months after the date of the 
enactment of this Act, the Secretaries of Education and 
Veterans Affairs shall jointly report to Congress on the 
progress made in developing and implementing this procedure.
  Page 345, beginning on line 9, strike subsection (c) (and 
redesignate the succeeding subsections accordingly).
  Page 347, beginning on line 1, strike title X and insert the 
following:

                 TITLE X--FACULTY RETIREMENT PROVISIONS

SEC. 1001. VOLUNTARY RETIREMENT INCENTIVE PLANS.

  (a) In general.--Section 4 of the Age Discrimination in 
Employment Act of 1967 (29 U.S.C. 623) is amended by adding at 
the end the following:
  ``(m) Notwithstanding subsection (f)(2)(B), it shall not be a 
violation of subsection (a), (b), (c), or (e) solely because a 
plan of an institution of higher education (as defined in 
section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 
1141(a))) offers employees who are serving under a contract of 
unlimited tenure (or similar arrangement providing for 
unlimited tenure) supplemental benefits upon voluntary 
retirement that are reduced or eliminated on the basis of age, 
if--
          ``(1) such institution does not implement with 
        respect to such employees any age-based reduction or 
        cessation of benefits that are not such supplemental 
        benefits, except as permitted by other provisions of 
        this Act;
          ``(2) such supplemental benefits are in addition to 
        any retirement or severance benefits which have been 
        offered generally to employees serving under a contract 
        of unlimited tenure (or similar arrangement providing 
        for unlimited tenure), independent of any early 
        retirement or exit-incentive plan, within the preceding 
        365 days; and
          ``(3) any employee who attains the minimum age and 
        satisfies all non-age-based conditions for receiving a 
        benefit under the plan has an opportunity lasting not 
        less than 180 days to elect to retire and to receive 
        the maximum benefit that could then be elected by a 
        younger but otherwise similarly situated employee, and 
        the plan does not require retirement to occur sooner 
        than 180 days after such election.''.
  (b) Plans Permitted.--Section 4(i)(6) of the Age 
Discrimination in Employment Act of 1967 (29 U.S.C. 623(i)(6)) 
is amended by adding after the word ``accruals'' the following: 
``or it is a plan permitted by subsection (m).''
  (c) Construction.--Nothing in the amendment made by 
subsection (a) shall affect the application of section 4 of the 
Age Discrimination in Employment Act of 1967 (29 U.S.C. 623) 
with respect to--
          (1) any plan described in subsection (m) of section 4 
        of such Act (as added by subsection (a)), for any 
        period prior to enactment of such Act;
          (2) any plan not described in subsection (m) of 
        section 4 of such Act (as added by subsection (a)); or
          (3) any employer other than an institution of higher 
        education (as defined in section 1201(a) of the Higher 
        Education Act of 1965).
  (d) Effective Date.--
          (1) In general.--This section shall take effect on 
        the date of enactment of this Act.
          (2) Effect on causes of action existing before date 
        of enactment.--The amendment made by subsection (a) 
        shall not apply with respect to any cause of action 
        arising under the Age Discrimination in Employment Act 
        of 1967 prior to the date of enactment of this Act.

                                
