[House Report 106-665]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-665

======================================================================



 
             HIGHER EDUCATION TECHNICAL AMENDMENTS OF 2000
                                _______
                                

 June 12, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Goodling, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 4504]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 4504) to make technical amendments to 
the Higher Education Act of 1965, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; REFERENCE; EFFECTIVE DATE.

  (a) Short Title.--This Act may be cited as the ``Higher Education 
Technical Amendments of 2000''.
  (b) Reference.--Except as otherwise expressly provided in this Act, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
  (c) Effective Date.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect as if enacted as part of 
the Higher Education Amendments of 1998 (Public Law 105-244).

SEC. 2. TECHNICAL AMENDMENTS.

  (a) Amendments to Title I.--
          (1) Section 101(a)(1) (20 U.S.C. 1001(a)(1)) is amended by 
        inserting before the semicolon at the end the following: ``, or 
        students who meet the requirements of section 484(d)(3)''.
          (2) Section 102(a)(2)(A) (20 U.S.C. 1002(a)(2)(A)) is amended 
        to read as follows:
                  ``(A) In general.--For the purpose of qualifying as 
                an institution under paragraph (1)(C), the Secretary 
                shall establish criteria by regulation for the approval 
                of institutions outside the United States and for the 
                determination that such institutions are comparable to 
                an institution of higher education as defined in 
                section 101 (except that a graduate medical school, or 
                a veterinary school, located outside the United States 
                shall not be required to meet the requirements of 
                section 101(a)(4)). Such criteria shall include a 
                requirement that a student attending such school 
                outside the United States is ineligible for loans made, 
                insured, or guaranteed under part B unless--
                          ``(i) in the case of a graduate medical 
                        school located outside the United States--
                                  ``(I)(aa) at least 60 percent of 
                                those enrolled in, and at least 60 
                                percent of the graduates of, the 
                                graduate medical school outside the 
                                United States were not persons 
                                described in section 484(a)(5) in the 
                                year preceding the year for which a 
                                student is seeking a loan under part B 
                                of title IV; and
                                  ``(bb) at least 60 percent of the 
                                individuals who were students or 
                                graduates of the graduate medical 
                                school outside the United States (both 
                                nationals of the United States and 
                                others) taking the examinations 
                                administered by the Educational 
                                Commission for Foreign Medical 
                                Graduates received a passing score in 
                                the year preceding the year for which a 
                                student is seeking a loan under part B 
                                of title IV; or
                                  ``(II) the institution has a clinical 
                                training program that was approved by a 
                                State as of January 1, 1992; or
                          ``(ii) in the case of a veterinary school 
                        located outside the United States that does not 
                        meet the requirements of section 101(a)(4)--
                                  ``(I) the institution was certified 
                                by the Secretary as eligible to 
                                participate in the loan program under 
                                part B of title IV before October 1, 
                                1999; and
                                  ``(II) the institution's students 
                                complete their clinical training at an 
                                approved veterinary school located in 
                                the United States.''.
          (3) Section 102(a)(3)(A) (20 U.S.C. 1002(a)(3)(A)) is amended 
        by striking ``section 521(4)(C) of the Carl Perkins Vocational 
        and Applied Technology Education Act'' and inserting ``section 
        3(3)(C) of the Carl D. Perkins Vocational and Technical 
        Education Act of 1998''.
          (4) Section 103(7) (20 U.S.C. 1003(7)) is amended to read as 
        follows:
          ``(7) New borrower.--The term `new borrower' when used with 
        respect to any date for any loan under any provision of--
                  ``(A) part B or part D of title IV means an 
                individual who on that date has no outstanding balance 
                of principal or interest owing on any loan made, 
                insured, or guaranteed under either such part; and
                  ``(B) part E of title IV means an individual who on 
                that date has no outstanding balance of principal or 
                interest owing on any loan made under such part.''.
          (5) Section 131(a)(3)(A)(iii) (20 U.S.C. 1015(a)(3)(A)(iii)) 
        is amended--
                  (A) by striking ``an undergraduate'' and inserting 
                ``a full-time undergraduate''; and
                  (B) in subclause (I), by striking ``section 
                428(a)(2)(C)(i)'' and inserting ``section 
                428(a)(2)(C)(ii)''.
          (6) Section 131(b) is amended by striking ``the costs for 
        typical'' and inserting ``the prices for, and financial aid 
        provided to, typical''.
          (7) Section 131(c)(2)(B) is amended by striking ``costs'' and 
        inserting ``prices''.
          (8) Section 131(d)(1) is amended by striking ``3 years'' and 
        inserting ``4 years''.
          (9) Section 141 (20 U.S.C. 1018) is amended--
                  (A) in subsection (a)(2)(B), by inserting ``total and 
                unit'' after ``to reduce the'';
                  (B) in subsection (c)--
                          (i) in paragraph (1)(A), by striking ``Each 
                        year'' and inserting ``Each fiscal year'';
                          (ii) in paragraph (1)(B), by inserting 
                        ``guaranty agencies,'' after ``lenders,''; and
                          (iii) in paragraph (2)--
                                  (I) in subparagraph (A), by striking 
                                ``expenditures'' and inserting 
                                ``administrative expenditures for the 
                                most recent fiscal year''; and
                                  (II) in subparagraph (B), by striking 
                                ``Chief Financial Officer Act of 1990 
                                and'' and inserting ``Chief Financial 
                                Officers Act of 1990,'' and by 
                                inserting before the period at the end 
                                the following: ``, and other relevant 
                                legislation'';
                  (C) in subsection (f)(3)(A), by striking ``paragraph 
                (1)(A)'' and inserting ``paragraph (1)''; and
                  (D) in subsection (g)(3), by adding at the end the 
                following new sentence: ``The names and compensation 
                for those individuals shall be included in the annual 
                report under subsection (c)(2).''.
  (b) Amendments to Title III.--
          (1) Subsection (g) of section 324 (20 U.S.C. 1063(g)) is 
        amended to read as follows:
  ``(g) Special Rule for Certain District of Columbia Eligible 
Institutions.--
          ``(1) Howard university.--In any fiscal year that the 
        Secretary determines that Howard University will receive an 
        allotment under subsections (b) and (c) which is not in excess 
        of amounts received for such fiscal year by Howard University 
        under the Act of March 2, 1867 (14 Stat. 438; 20 U.S.C. 123), 
        relating to the annual appropriations for Howard University, 
        then Howard University shall be ineligible to receive an 
        allotment under this section.
          ``(2) University of the district of columbia.--In any fiscal 
        year, the University of the District of Columbia may receive 
        financial assistance under this part, or under section 4(c) of 
        the District of Columbia College Access Act of 1999 (P.L. 106-
        98), but not under both this part and such section.''.
          (2) Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) is amended, in 
        the matter preceding subparagraph (A), by inserting a colon 
        after ``the following''.
          (3) Section 342(5)(C) (20 U.S.C. 1066a(5)(C)) is amended--
                  (A) by inserting a comma after ``equipment'' the 
                first place it appears; and
                  (B) by striking ``technology,,'' and inserting 
                ``technology,''.
          (4) Section 343(e) (20 U.S.C. 1066b(e)) is amended by 
        inserting after the sub-section designation the following: 
        ``Sale of Qualified Bonds.--''.
          (5) Section 1024 (20 U.S.C. 1135b-3), as transferred by 
        section 301(a)(5) of the Higher Education Amendments of 1998 
        (Public Law 105-244; 112 Stat. 636), is repealed.
  (c) Amendments to Part A of Title IV.--
          (1) Section 402D (20 U.S.C. 1070a-14) is amended--
                  (A) by redesignating subsection (c) as subsection 
                (d); and
                  (B) by inserting after subsection (b) the following 
                new subsection:
  ``(c) Special Rule.--
          ``(1) Use for student aid.--A recipient of a grant that 
        undertakes any of the permissible services identified in 
        subsection (b) may, in addition, use such funds to provide 
        grant aid to students if the recipient demonstrates in its 
        application, to the satisfaction of the Secretary, that the 
        size of the grants the recipient will provide to students is 
        appropriate and likely to have a significant impact on 
        retention at that institution. In making grants to students 
        under this subsection, an institution shall ensure that 
        adequate consultation takes place between the student support 
        service program office and the institution's financial aid 
        office.
          ``(2) Eligible students.--For purposes of receiving grant aid 
        under this subsection, eligible students shall be current 
        participants in the student support services program offered by 
        the institution and be--
                  ``(A) students who are in their first 2 years of 
                postsecondary education and who are receiving Federal 
                Pell Grants under subpart 1; or
                  ``(B) students who have completed their first 2 years 
                of postsecondary education and who are receiving 
                Federal Pell Grants under subpart 1 if the institution 
                demonstrates to the satisfaction of the Secretary 
                that--
                          ``(i) these students are at high risk of 
                        dropping out; and
                          ``(ii) it will first meet the needs of all 
                        its eligible first- and second-year students 
                        for services under this paragraph.
          ``(3) Determination of need.--A grant provided to a student 
        under paragraph (1) shall not be considered in determining that 
        student's need for grant or work assistance under this title, 
        except that in no case shall the total amount of student 
        financial assistance awarded to a student under this title 
        exceed that student's cost of attendance, as defined in section 
        472.
          ``(4) Matching required.--A recipient of a grant who uses 
        such funds for the purpose described in paragraph (1) shall 
        match the funds used for such purpose, in cash, from non-
        Federal funds, in an amount that is not less than 33 percent of 
        the total amount of funds used for that purpose. This paragraph 
        shall not apply to any grant recipient that is an institution 
        of higher education eligible to receive funds under part A or B 
        of title III or title V.
          ``(5) Reservation.--For any fiscal year after the date of 
        enactment of the Higher Education Technical Amendments of 2000, 
        the Secretary may reserve not more than 20 percent of the funds 
        available under this section for grant aid in accordance with 
        this subsection.''.
          (2)(A) Section 404A(b) (20 U.S.C. 1070a-21(b)) is amended by 
        adding at the end thereof the following new paragraph:
          ``(3) Duration.--An award made by the Secretary under this 
        chapter to an eligible entity described in paragraph (1) or (2) 
        of subsection (c) shall be for a period of 6 years.''.
          (B) The amendment made by subparagraph (A) shall be effective 
        for awards made for fiscal year 2000 and succeeding fiscal 
        years, except that the Secretary shall permit recipients of 5-
        year grants made for fiscal year 1999 to amend their 
        applications to include a 6-year project period.
          (3) Section 415A(a)(2) (20 U.S.C. 1070c(a)(2)) is amended by 
        striking ``section 415F'' and inserting ``section 415E''.
          (4) Section 415E(c) (20 U.S.C. 20 U.S.C. 1070c-3a(c)) is 
        amended to read as follows:
  ``(c) Authorized Activities.--Each State receiving a grant under this 
section may use the grant funds for--
          ``(1) making awards that--
                  ``(A) supplement grants received under section 415A 
                by eligible students who demonstrate financial need; or
                  ``(B) provide grants under section 415A to additional 
                eligible students who demonstrate financial need;
          ``(2) providing scholarships for eligible students--
                  ``(A) who demonstrate financial need; and
                  ``(B) who--
                          ``(i) desire to enter a program of study 
                        leading to a career in--
                                  ``(I) information technology;
                                  ``(II) mathematics, computer science, 
                                or engineering; or
                                  ``(III) another field determined by 
                                the State to be critical to the State's 
                                workforce needs; or
                          ``(ii) demonstrate merit or academic 
                        achievement and desire; and
          ``(3) making awards that--
                  ``(A) supplement community service work-study awards 
                received under section 415A by eligible students who 
                demonstrate financial need; or
                  ``(B) provide community service work-study awards 
                under section 415A to additional eligible students who 
                demonstrate financial need.''.
          (5) Section 415E (20 U.S.C. 20 U.S.C. 1070c-3a) is amended by 
        adding at the end the following:
  ``(f) Special Rule.--Notwithstanding subsection (d), for purposes of 
determining a State's share of the cost of the authorized activities 
described in subsection (c)--
          ``(1) in the case of a State that participates in the program 
        authorized under this section in fiscal year 2000--
                  ``(A) if such State participates in the program in 
                fiscal year 2001, for that year the State shall 
                consider only those expenditures from non-Federal 
                sources that exceed its expenditures for activities 
                authorized under this subpart for fiscal year 1999; or
                  ``(B) if such State does not participate in the 
                program in fiscal year 2001, but participates in the 
                program in a succeeding fiscal year, for the first 
                fiscal year after fiscal year 2001 in which the State 
                participates in the program, the State shall consider 
                only those expenditures from non-Federal sources that 
                exceed its expenditures for activities authorized under 
                this subpart for the preceding fiscal year, or fiscal 
                year 1999, whichever is greater; and
          ``(2) in the case of a State that participates in the program 
        authorized under this section for the first time after fiscal 
        year 2000, for the first fiscal year in which the State 
        participates in the program, the State shall consider only 
        those expenditures from non-Federal sources that exceed its 
        expenditures for activities authorized under this subpart for 
        the preceding fiscal year.
  ``(g) Use of Funds for Administrative Costs Prohibited.--A State 
receiving a grant under this section shall not use any of the grant 
funds to pay administrative costs associated with any of the authorized 
activities described in subsection (c).''.
          (6) Section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)) is amended 
        by inserting ``and'' after the semicolon at the end thereof.
          (7) Section 419D(d) (20 U.S.C. 1070d-34(d)) is amended by 
        striking ``Public Law 95-1134'' and inserting ``Public Law 95-
        134''.
  (d) Amendments to Part B of Title IV.--
          (1) Section 425(a)(1)(A)(i)(II) (20 U.S.C. 
        1075(a)(1)(A)(i)(II)) is amended to read as follows:
                          ``(II) if such student is enrolled in a 
                        program of undergraduate education that is less 
                        than 1 academic year, the maximum annual loan 
                        amount that such student may receive may not 
                        exceed the lesser of--
                                  ``(aa) the amount that bears the same 
                                ratio to the amount specified in 
                                subclause (I) as the length of such 
                                program measured in semester, 
                                trimester, quarter, or clock hours 
                                bears to 1 academic year; or
                                  ``(bb) the amount that bears the same 
                                ratio to the amount specified in 
                                subclause (I) as the length of such 
                                program measured in weeks of 
                                instruction bears to 1 academic 
                                year;''.
          (2) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)(i)) is 
        amended--
                  (A) by striking ``and'' at the end of subclause (II) 
                of clause (i); and
                  (B) by moving the margin of clause (iii) two ems to 
                the left.
          (3) Section 428(b)(1) is amended--
                  (A) in subparagraph (A)(i), by striking subclause 
                (II) and inserting the following:
                                  ``(II) if such student is enrolled in 
                                a program of undergraduate education 
                                that is less than 1 academic year, the 
                                maximum annual loan amount that such 
                                student may receive may not exceed the 
                                lesser of--
                                          ``(aa) the amount that bears 
                                        the same ratio to the amount 
                                        specified in subclause (I) as 
                                        the length of such program 
                                        measured in semester, 
                                        trimester, quarter, or clock 
                                        hours bears to 1 academic year; 
                                        or
                                          ``(bb) the amount that bears 
                                        the same ratio to the amount 
                                        specified in subclause (I) as 
                                        the length of such program 
                                        measured in weeks of 
                                        instruction bears to 1 academic 
                                        year;''; and
                  (B) in subparagraph (Y)(i), by striking 
                ``subparagraph (M)(i)'' and inserting ``subparagraph 
                (M)(i)(I)''.
          (4) Section 428(c)(3)(B) (20 U.S.C. 1078(c)(3)(B)) is amended 
        by inserting before the semicolon at the end the following: 
        ``and recorded in the borrower's file, except that such 
        regulations shall not require such agreements to be in 
        writing''.
          (5) Section 428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is 
        amended by adding at the end the following new clause:
          ``(ii) Loans made under this section shall, to the extent 
        used to discharge loans made under this title, be counted 
        against the applicable limitations on aggregate indebtedness 
        contained in section 425(a)(2), 428(b)(1)(B), 428H(d), 455, and 
        464(a)(2)(B).''.
          (6) Section 428H(d)(2)(A)(ii) (20 U.S.C. 1078-8(d)(2)(A)(ii)) 
        is amended to read as follows:
                          ``(ii) if such student is enrolled in a 
                        program of undergraduate education that is less 
                        than 1 academic year, the maximum annual loan 
                        amount that such student may receive may not 
                        exceed the lesser of--
                                  ``(I) the amount that bears the same 
                                ratio to the amount specified in clause 
                                (i) as the length of such program 
                                measured in semester, trimester, 
                                quarter, or clock hours bears to 1 
                                academic year; or
                                  ``(II) the amount that bears the same 
                                ratio to the amount specified in 
                                subclause (I) as the length of such 
                                program measured in weeks of 
                                instruction bears to 1 academic 
                                year;''.
          (7) Section 428H(e) is amended--
                  (A) by striking paragraph (6); and
                  (B) by redesignating paragraph (7) as paragraph (6).
          (8) Section 432(m)(1) (20 U.S.C. 1082(m)(1)) is amended--
                  (A) in subparagraph (B)--
                          (i) in clause (i), by inserting ``and'' after 
                        the semicolon at the end; and
                          (ii) in clause (ii), by striking ``; and'' 
                        and inserting a period;
                  (B) by striking clause (iv) of subparagraph (D); and
                  (C) by adding at the end the following new 
                subparagraph:
                  ``(E) Perfection of security interests in student 
                loans.--
                          ``(i) In general.--Notwithstanding the 
                        provisions of any State law to the contrary, 
                        including the Uniform Commercial Code as in 
                        effect in any State, a security interest in 
                        loans made under this part, on behalf of any 
                        eligible lender (as defined in section 435(d)) 
                        shall attach, be perfected, and be assigned 
                        priority in the manner provided by the 
                        applicable State's law for perfection of 
                        security interests in accounts, as such law may 
                        be amended from time to time (including 
                        applicable transition provisions). If any such 
                        State's law provides for a statutory lien to be 
                        created in such loans, such statutory lien may 
                        be created by the entity or entities governed 
                        by such State law in accordance with the 
                        applicable statutory provisions that created 
                        such a statutory lien.
                          ``(ii) Collateral description.--In addition 
                        to any other method for describing collateral 
                        in a legally sufficient manner permitted under 
                        the laws of the State, the description of 
                        collateral in any financing statement filed 
                        pursuant to this section shall be deemed 
                        legally sufficient if it lists such loans, or 
                        refers to records (identifying such loans) 
                        retained by the secured party or any designee 
                        of the secured party identified in such 
                        financing statement, including the debtor or 
                        any loan servicer.
                          ``(iii) Sales.--Notwithstanding clauses (i) 
                        and (ii) and any provisions of any State law to 
                        the contrary, other than any such State's law 
                        providing for creation of a statutory lien, an 
                        outright sale of loans made under this part 
                        shall be effective and perfected automatically 
                        upon attachment as defined in the Uniform 
                        Commercial Code of such State.''.
          (9) Section 435(a)(5) (20 U.S.C. 1085(a)(5)) is amended--
                  (A) in subparagraph (A)(i), by striking ``July 1, 
                2002,'' and inserting ``July 1, 2004,''; and
                  (B) in subparagraph (B), by striking ``1999, 2000, 
                and 2001'' and inserting ``1999 through 2003''.
          (10) Subparagraphs (A) and (F) of section 438(b)(2) (20 
        U.S.C. 1087-1(b)(2)) are each amended by striking the last 
        sentence.
          (11) Section 439(d) (20 U.S.C. 1087-2(d)) is amended by 
        striking paragraph (3).
  (e) Amendment to Part C of Title IV.--Section 443(b)(2)(B) (42 U.S.C. 
2753(b)(2)(B)) is amended by inserting ``(including a reasonable amount 
of time spent in travel or training directly related to such community 
service)'' after ``community service''.
  (f) Amendment to Part D of Title IV.--Paragraph (6) of section 455(b) 
(20 U.S.C. 1087e(b)), as redesignated by section 8301(c)(1) of the 
Transportation Equity for the 21st Century Act (112 Stat. 498) is 
redesignated as paragraph (8), and is moved to follow paragraph (7) as 
added by 452(b) of the Higher Education Amendments of 1998 (112 Stat. 
1716).
  (g) Amendments to Part E of Title IV.--
          (1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
        1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly'' 
        after ``consecutive''.
          (2) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is 
        amended by redesignating subclauses (I) and (II) as clauses (i) 
        and (ii), respectively.
          (3) Section 464(c)(2)(A)(iv) is amended by inserting before 
        the semicolon at the end the following: ``, except that 
        interest shall continue to accrue on such loans and such 
        interest shall be eligible for cancellation under section 
        465''.
          (4) Section 464(h) is amended--
                  (A) in paragraph (1)(A)--
                          (i) by inserting ``, and the loan default has 
                        not been reduced to a judgment against the 
                        borrower,'' after ``defaulted on the loan''; 
                        and
                          (ii) by inserting after ``held by the 
                        Secretary,'' the following: ``or if the 
                        borrower of a loan under this part who has 
                        defaulted on the loan elects to make a single 
                        payment equal to the full amount of principal 
                        and interest and collection costs owed on the 
                        loan,''; and
                  (B) by adding at the end the following new paragraph:
          ``(3) Special rule.--At the discretion of the institution or 
        the Secretary, for the purpose of receiving the benefits of 
        this subsection, a loan that is in default and reduced to 
        judgment may be considered rehabilitated if--
                  ``(A) the borrower makes 12 on-time, consecutive, 
                monthly payments of amounts owed on the loan, as 
                determined by the institution, or by the Secretary in 
                the case of a loan held by the Secretary; or
                  ``(B) the borrower makes a single payment equal to 
                the full amount of principal and interest and 
                collection costs owed on the loan.''.
          (5)(A) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is 
        amended--
                  (i) in subparagraph (A), by striking ``section 
                111(c)'' and inserting ``section 1113(a)(5)'';
                  (ii) in subparagraph (C), by striking ``With 
                Disabilities'' and inserting ``with Disabilities''; and
                  (iii) in subparagraph (F), by inserting before the 
                semicolon at the end the following: ``, including full-
                time prosecutors and public defenders earning $30,000 
                or less in adjusted gross income''.
          (B) The amendment made by subparagraph (A)(iii) shall be 
        effective on the date of enactment of this Act, except that 
        such amendment shall not prevent any borrower who, prior to the 
        date of enactment of this Act, was receiving cancellation of 
        indebtedness under section 465(a)(2)(F) of the Higher Education 
        Act of 1965 from continuing to receive such cancellation.
          (6) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by 
        striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A), 
        (4)(B), or (5)''.
          (7) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
                  (A) by striking ``sections 602(a)(1) and 672(1)'' and 
                inserting ``sections 602(3) and 632(5)'';
                  (B) by striking ``qualified professional provider of 
                early intervention services'' and inserting ``early 
                intervention services''; and
                  (C) by striking ``section 672(2)'' and inserting 
                ``section 632(4)''.
  (h) Amendments to Part F of Title IV.--
          (1) Section 471 (20 U.S.C. 1087kk) is amended by striking 
        ``subparts 1 or 2'' and inserting ``subpart 1, 2, or 4''.
          (2) Section 478 (20 U.S.C. 1087rr) is amended--
                  (A) in subsection (b)(1)--
                          (i) by striking ``academic year 1993-1994'' 
                        and inserting ``academic year 2000-2001''; and
                          (ii) by striking ``December 1992'' and 
                        inserting ``December 1999''; and
                  (B) in subsection (h)--
                          (i) by striking ``476(b)(4)(B),''; and
                          (ii) by striking ``meals away from home, 
                        apparel and upkeep, transportation, and 
                        housekeeping services'' and inserting ``food 
                        away from home, apparel, transportation, and 
                        household furnishings and operations''.
          (3)(A) Section 479A(a) (20 U.S.C. 1087tt(a)) is amended by 
        inserting ``a student's status as a ward of the court at any 
        time prior to attaining 18 years of age,'' after ``487,''.
          (B) The amendment made by subparagraph (A) shall be effective 
        for academic years beginning on or after July 1, 2001.
  (i) Amendments to Parts G and H of Title IV.--
          (1) Section 482(a) (20 U.S.C. 1089(a)) is amended by adding 
        at the end the following new paragraph:
          ``(5) The Secretary shall provide a period for public comment 
        of not less than 45 days after publication of any notice of 
        proposed rulemaking published after the date of the enactment 
        of the Higher Education Technical Amendments of 2000 affecting 
        programs under this title.''.
          (2) Section 483(d) (20 U.S.C. 1090(d)) is amended by striking 
        ``that is authorized under section 685(d)(2)(C)'' and inserting 
        ``, or other appropriate provider of technical assistance and 
        information on postsecondary educational services, that is 
        supported under section 685''.
          (3) Section 484 (20 U.S.C. 1091) is amended--
                  (A) in subsection (a)(4), by striking 
                ``certification,,'' and inserting ``certification,'';
                  (B) in subsection (b)(2)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``section 428A'' and inserting 
                        ``section 428H'';
                          (ii) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end thereof;
                          (iii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                          (iv) by striking subparagraph (C);
                  (C) in subsection (d)(3), by inserting ``certifies 
                that he or she'' after ``The student''; and
                  (D) in subsection (l)(1)(B)(i), by striking ``section 
                521(4)(C) of the Carl D. Perkins Vocational and Applied 
                Technology Education Act'' and inserting ``section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998''.
          (4)(A) Section 484(r)(1) is amended by inserting after 
        ``controlled substance'' the following: ``during any period of 
        enrollment for which the student was receiving assistance under 
        this title''.
          (B) Section 484(r) is further amended--
                  (i) by redesignating paragraph (3) as paragraph (5); 
                and
                  (ii) by inserting after paragraph (2) the following 
                new paragraphs:
          ``(3) Consequences of failure to answer.--Any student who 
        fails to answer a question of the common financial aid form 
        developed under section 483 that relates to eligibility or 
        ineligibility under this subsection shall be treated as 
        ineligible until such question is answered.
          ``(4) Notice.--The Secretary shall require each institution 
        of higher education to provide each student upon enrollment 
        with a separate, clear, and conspicuous written notice that 
        advises students of the penalties contained in this 
        subsection.''.
          (C) The amendments made by this paragraph shall be effective 
        for academic years beginning on or after July 1, 2001.
          (5)(A) Section 484B (20 U.S.C. 1091b) is amended--
                  (i) in subsection (a)(1), by inserting ``subpart 4 of 
                part A or'' after ``received under'';
                  (ii) in subsection (a)(3)(B)(ii) by inserting ``(as 
                determined in accordance with subsection (d))'' after 
                ``student has completed''; and
                  (iii) in subsection (b)(2)--
                          (I) in subparagraph (B)(ii), by striking 
                        ``subject to--'' through to the end of such 
                        subparagraph and inserting ``subject to the 
                        procedures described in subparagraph 
                        (C)(ii).''; and
                          (II) by amending subparagraph (C) to read as 
                        follows:
                  ``(C) Grant overpayment requirements.--(i) 
                Notwithstanding subparagraphs (A) and (B), but subject 
                to clause (ii), a student shall not be required to 
                return 50 percent of the total grant assistance 
                received by a student under this title for a payment 
                period or period of enrollment. A student shall not be 
                required to return amounts of less than $50.
                  ``(ii) Subject to clause (iii), a student shall be 
                permitted to repay any grant overpayment determined 
                under this section under terms that permit the student 
                to maintain his or her eligibility for further 
                assistance under this title, including a period during 
                which no payment is due from the student--
                          ``(I) for 6 months, beginning on the day the 
                        student withdrew; and
                          ``(II) while the student is pursuing at least 
                        a half-time course of study, as determined by 
                        the institution.
                  ``(iii) Clause (ii) shall not apply to a student who 
                is in default on any repayment obligations under this 
                title, or who has not made satisfactory repayment 
                arrangements with respect to such obligations.''.
          (B) The amendments made by subparagraph (A) shall be 
        effective for the academic year beginning July 1, 2001, except 
        that, in the case of an institution of higher education that 
        chooses to implement such amendments prior to that date, such 
        amendments shall be effective on the date of such institution's 
        implementation.
          (6) Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is amended by 
        striking ``mailings, and'' and inserting ``mailings, or''.
          (7)(A) Section 485(f)(1) (20 U.S.C. 1092(f)(1)) is amended by 
        adding at the end the following new subparagraphs:
          ``(I) A statement of policy concerning the handling of 
        reports on missing students, including--
                  ``(i) the policy with respect to notification of 
                parents, guardians, and local police agencies and 
                timing of such notification; and
                  ``(ii) the institution's policy for investigating 
                reports on missing students and for cooperating with 
                local police agencies in the investigation of a report 
                of a missing student.
          ``(J) A statement of policy regarding the availability of 
        information, provided by the State to the institution pursuant 
        to section 170101 of the Violent Crime Control and Law 
        Enforcement Act of 1994 (42 U.S.C. 14071), regarding sexually 
        violent predators required to register under such section. Such 
        statement shall include, at a minimum, the following:
                  ``(i) An assurance that the institution shall make 
                available to the campus community, through its law 
                enforcement unit or other office, all such information 
                concerning any person enrolled or employed at the 
                institution.
                  ``(ii) The means by which students and employees 
                obtain access to such information.
                  ``(iii) The frequency at which such information is 
                updated.
                  ``(iv) The type of information to be made available.
          ``(K) A description of campus fire safety practices and 
        standards, including--
                  ``(i) information with respect to each campus 
                residence hall and whether or not such hall is equipped 
                with a fire sprinkler system or other fire safety 
                system;
                  ``(ii) statistics concerning the occurrence on campus 
                of fires and false alarms in residence halls, including 
                information on deaths, injuries, and structural damage 
                caused by such occurrences, if any, during the 2 
                preceding calendar years for which such data are 
                available; and
                  ``(iii) information regarding fire alarms, smoke 
                alarms, fire escape planning or protocols (as defined 
                in local fire codes), rules on portable electrical 
                appliances, smoking and open flames, regular mandatory 
                supervised fire drills, and any planned improvements in 
                fire safety.''.
          (B) The amendment made by this paragraph shall be effective 
        for academic years beginning on or after July 1, 2001.
          (8) Section 485(f) is further amended--
                  (A) in paragraph (3), by inserting after the first 
                sentence the following: ``In addition, each such 
                institution shall make periodic reports to the campus 
                community regarding fires and false fire alarms that 
                are reported to a local fire department.'';
                  (B) in paragraph (5)--
                          (i) by striking ``paragraph (1)(F)'' and 
                        inserting ``subparagraphs (F) and (J) of 
                        paragraph (1)'';
                          (ii) by striking ``and'' at the end of 
                        subparagraph (B);
                          (iii) in subparagraph (C), by striking 
                        ``education, identify'' and all that follows 
                        through the end and inserting the following: 
                        ``education, identify--
                  ``(i) exemplary campus security policies, procedures, 
                and practices and disseminate information concerning 
                those policies, procedures, and practices that have 
                proven effective in the reduction of campus crime; and
                  ``(ii) fire safety policies, procedures, and 
                practices and disseminate information concerning those 
                policies procedures and practices that have proven 
                effective in the reduction of fires on campus; and''; 
                and
                          (iv) by adding at the end the following:
          ``(D) not later than July 1, 2002, prepare and submit a 
        report to Congress containing--
                  ``(i) an analysis of the current status of fire 
                safety systems in college and university facilities, 
                including sprinkler systems;
                  ``(ii) an analysis of the appropriate fire safety 
                standards to apply to these facilities, which the 
                Secretary shall prepare after consultation with such 
                fire safety experts, representatives of institutions of 
                higher education, and Federal agencies as the 
                Secretary, in the Secretary's discretion, considers 
                appropriate;
                  ``(iii) an estimate of the cost of bringing all 
                nonconforming residence halls and other campus 
                buildings into compliance with appropriate building 
                codes; and
                  ``(iv) recommendations concerning the best means of 
                meeting fire safety standards in all college 
                facilities, including recommendations for methods of 
                funding such costs.''.
          (9) Section 485 is further amended by adding at the end the 
        following new subsection:
  ``(h) New or Revised Requirements.--For any new requirement for 
institutional disclosure or reporting under this Act enacted after 
April 1, 2000, the period for which data must be collected shall begin 
no sooner than 180 days after the publication of final regulations or 
guidance. The final regulations or guidance shall include any required 
data elements or method of collection (or both). The Secretary shall 
take reasonable and appropriate steps to ensure that institutions have 
adequate time to collect and prepare the required data before public 
disclosure or submission to the Secretary.''.
          (10) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
                  (A) by redesignating the paragraphs following 
                paragraph (5) (as added by section 2008 of Public Law 
                101-239) as paragraphs (6) through (11), respectively; 
                and
                  (B) in such paragraph (5)--
                          (i) by striking ``(22 U.S.C. 2501 et 
                        seq.)),'' and inserting ``(22 U.S.C. 2501 et 
                        seq.),''; and
                          (ii) by striking the period at the end 
                        thereof and inserting a semicolon.
          (11) Section 487(a)(22) (20 U.S.C. 1094(a)(22)) is amended by 
        striking ``refund policy'' and inserting ``refund of title IV 
        funds policy''.
          (12) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding 
        at the end the following new paragraph:
  ``(3) The appointment of members under subparagraphs (A) and (B) of 
paragraph (1) shall be effective upon publication of the appointment in 
the Congressional Record.''.
          (13) Section 498 (20 U.S.C. 1099c) is amended--
                  (A) in subsection (b)(5), by striking 
                ``institution,'' and inserting ``institution (but 
                subject to the requirements of section 484(b)),'';
                  (B) in subsection (c)(2), by striking ``for profit,'' 
                and inserting ``for-profit,''; and
                  (C) in subsection (d)(1)(B), by inserting ``and'' at 
                the end thereof.
  (j) Amendments to Title V.--
          (1) Section 504(a) (20 U.S.C. 1101c(a)) is amended--
                  (A) by striking ``(1) In general.--''; and
                  (B) by striking paragraph (2).
          (2) The amendments made by this subsection shall be effective 
        on the date of enactment of this Act.
  (k) Amendment to Title VI.--Section 604(c) (20 U.S.C. 1124(c)) is 
amended by striking ``this part'' and inserting ``this title''.
  (l) Amendments to Title VII.--
          (1) Section 701(a) (20 U.S.C. 1134(a)) is amended by striking 
        the third sentence and inserting the following: ``Funds 
        appropriated for a fiscal year shall be obligated and expended 
        for fellowships under this subpart for use in the academic year 
        beginning after July 1 of such fiscal year.''.
          (2) Section 714(c) (20 U.S.C. 1135c(c)) is amended--
                  (A) by striking ``section 716(a)'' and inserting 
                ``section 715(a)''; and
                  (B) by striking ``section 714(b)(2)'' and inserting 
                ``section 713(b)(2)''.
  (m) Amendment to Title VIII.--Section 857(a) of the Higher Education 
Amendments of 1998 (112 Stat. 1824) is amended by striking ``1999'' and 
inserting ``2001''.

                                Purpose

    The purpose of H.R. 4504, the Higher Education Technical 
Amendments of 2000, is to make necessary technical amendments 
to the Higher Education Act of 1965, as well as policy 
adjustments, in order to ensure that the Higher Education 
Amendments of 1998 are implemented according to congressional 
intent.

                                Summary


Section 1

    Section 1 designates the short title of H.R. 4504 as the 
Higher Education Technical Amendments of 2000, specifies that 
the provisions of the bill amend the Higher Education Act of 
1965, and makes these amendments (except as otherwise provided 
in the legislation) effective as if they were enacted as part 
of the Higher Education Amendments of 1998 (P.L. 105-244).

Section 2

    Section 2 of H.R. 4504 amends the Higher Education Act of 
1965 to make technical corrections and in some instances policy 
adjustments to ensure that the Higher Education Amendments of 
1998 (P.L. 105-244) are implemented as intended by Congress. 
Specific adjustments are as follows.
    Subsection (a) amends Title I of the Higher Education Act 
of 1965. It clarifies that institutions of higher education may 
enroll home-schooled students receiving federal financial aid 
under section 484(d)(3) without jeopardizing their Title IV 
eligibility. In addition, subsection (a) corrects a drafting 
error in the Higher Education Amendments of 1998 that would 
have made students at certain non-profit foreign veterinary 
schools ineligible for student loans under the act. It also 
corrects a reference to the Carl Perkins Vocational and Applied 
Technology Education Act, conforms the definition of the term 
``new borrower'' under Part B or Part D of the Higher Education 
Act with that of Part E of the act to mean an individual with 
no outstanding balance of principal or interest, and makes 
clarifying amendments to provisions of the act which provide 
information on the cost of a college education. Finally 
subsection (a) amends Part D of Title I (regarding the 
Performance Based Organization) to include guarantors in the 
consultative process for the annual performance plan, and 
requires the names and compensation of individuals hired under 
the ``excepted service'' clause to be included in the annual 
report submitted to Congress.
    Subsection (b) of H.R. 4504 amends Title III of the Higher 
Education Act of 1965. It clarifies that the University of the 
District of Columbia may receive funding under Part B of Title 
III, or under Part B of the District of Columbia College Access 
Act (P.L. 106-98), but not under both. In addition, it repeals 
an outdated provision of the law regarding college construction 
bonds.
    Subsection (c) of H.R. 4504 amends Part A of Title IV of 
the Higher Education Act of 1965. It allows grantees receiving 
funding under the Student Support Services program within TRIO 
to use part of these funds for direct grant aid to students of 
such aid is likely to have a significant impact on retention 
rates at their institutions. Grantees using funds for this 
purpose are required to match at least 33 percent of the funds 
used for grant aid in cash from non-federal sources. In 
addition, it clarifies services provided under the Gaining 
Early Awareness and Readiness for Undergraduate Programs (GEAR-
UP) may be used to serve a student cohort for a six-year 
period. Finally, subsection (c) clarifies that funds provided 
under the Special Leveraging Educational Partnership Program 
may not be used for administrative purposes, and that required 
matching funds must come from new sources.
    Subsection (d) of H.R. 4504 amends Part B of Title IV of 
the Higher Education Act of 1965. It clarifies provisions 
regarding the proration of student assistance for individuals 
in short-term programs. It allows student loan forbearance to 
be granted without requiring the agreement to be in writing, as 
long as a record is maintained in the borrowers file. It also 
allows borrowers eligibility for half-time deferments, 
regardless of when they took the loan, except that it doesn't 
apply to pre-1987 borrowers due to cost constraints. Subsection 
(d) also conforms the act with current practices regarding the 
perfection of security interests for student loans when 
pledging loans as collateral. Finally, it extends the date for 
eliminating eligibility of Historically Black Colleges and 
Universities (HBCUs) due to high default rates from July 1, 
2002 to July 1, 2004.
    Subsection (e) amends Part C of Title IV of the Higher 
Education Act of 1965 to correct a drafting error in the Higher 
Education Amendments of 1998 that would have limited the use of 
work-study funds for travel and training after Fiscal Year 
1998.
    Subsection (f) corrects a drafting error in Part D of Title 
IV of the Higher Education Act.
    Subsection (g) amends Part E of Title IV of the Higher 
Education Act to clarify that a Perkins loan borrower must make 
six consecutive monthly payments in order to be excluded from 
default rate calculations. It also clarifies that loans in 
deferment as a result of a borrower performing service that 
will result in loan cancellation are reimbursed for interest as 
well as principal, allows borrowers in default to get the 
benefit of rehabilitation if they repay in full with a single 
payment, and allows the secretary or the institution to offer 
rehabilitation even if the loan has been reduced to judgment. 
In addition, a provision was added which allows prosecutors or 
public defenders to receive Perkins Loan forgiveness if their 
adjusted gross income is $30,000 or less.
    Subsection (h) amends Part F of Title IV of the Higher 
Education Act. It clarifies that aid received under the 
Leveraging Educational Assistance Partnership Program is 
excluded from the definition of ``amount of need'' for Title IV 
programs, and that financial aid administrators may exercise 
professional judgment when awarding aid to students that were a 
ward of the court prior to attaining 18 years of age.
    Subsection (i) amends Parts G and H of the Higher Education 
Act. It requires the secretary to provide a 45-day comment 
period after the publication of any Notice of Proposed Rule 
Making (NPRM), and requires that new disclosure or reporting 
requirements shall not go into effect until at least 180 days 
after the publication as final regulations. It clarifies that 
students schooled in home school settings must certify 
completion of a secondary schooleducation for the receipt of 
federal financial assistance. Subsection (i) also amends the drug 
conviction ineligibility requirements to clarify that a student is only 
ineligible if the conviction occurred while the student was enrolled in 
a postsecondary institution and receiving federal financial aid, that 
students must answer the question on the FAFSA pertaining to drug 
convictions prior to receiving assistance, and that schools must report 
these penalties to students. Subsection (i) also corrects the 
department's interpretation of the return of federal funds provisions 
such that schools may use scheduled hours rather than completed hours 
for calculating the amount of aid earned if the student has completed 
70 percent of the scheduled hours, and clarifies that a student is 
never required to return more than 50 percent of grant aid received. It 
also adds provisions so that students are not required to return 
amounts less than $50, may delay repayment for up to six months after 
withdrawing, and may delay repayment while enrolled at least half time. 
This subsection also clarifies that required information may be 
provided to students electronically, rather than in writing. Subsection 
(i) amends the campus crime reporting provisions to require 
institutions to have and publish a policy regarding the handling of 
reports of missing students; to have a policy regarding the 
availability of information on violent sexual predators on campus and 
to make such information available if it is provided by the state; and 
to provide information on fire safety on campus. Finally, subsection 
(i) clarifies that congressional appointments to the Advisory Committee 
on Student Financial Assistance are effective upon publication in the 
Congressional Record.
    Subsection (j) amends Title V of the Higher Education Act 
to eliminate the two-year wait out period for applying for a 
grant for Hispanic-Serving institutions.
    Subsection (k) corrects a reference within Title VI of the 
Higher Education Act.
    Subsection (l) amends Title VII of the Higher Education Act 
to clarify that the Javits program is to receive forward 
funding in the future.
    Subsection (m) amends Title VIII of the Higher Education 
Amendments of 1998 to correct a date reference regarding the 
Web-Based Commission.

                            Committee Action

    On May 19, 2000 Representative Howard P. ``Buck'' McKeon 
(R-CA) introduced H.R. 4504, the Higher Education Technical 
Amendments of 2000. H.R. 4504 makes necessary technical 
corrections and includes clarifying language to the Higher 
Education Amendments of 1998 (P.L. 105-244). In addition, the 
bill also includes specific policy changes that are necessary 
in order to ensure that the 1998 amendments are implemented as 
intended. On the basis of further recommendations from 
Committee members and the higher education community, an 
amendment in the nature of a substitute was prepared. The 
Committee on Education and the Workforce considered this 
substitute to H.R. 4504 in legislative session on May 25, 2000 
during which seven amendments were considered on which two roll 
call votes were taken. The Committee on Education and the 
Workforce with a majority of the Committee present favorably 
reported H.R. 4504 to the House of Representatives by voice 
vote on May 25, 2000.
    Below is a description of the adopted amendments to H.R. 
4504.
     Mr. McKeon (R-CA) offered an amendment in the 
nature of a substitute.
     Mr. Salmon (R-AZ) offered an amendment to the 
Campus Crime Reporting provisions requiring institutions of 
higher education to disclose their policy regarding the 
availability of information about registered sexually violent 
offenders received from a state pursuant to ``Meagan's Law,'' 
including a statement that they will disclose such information 
if the state provides it.
     Mrs. Roukema (R-NJ) offered an amendment to 
include information regarding fire safety and statistics on 
fires and false alarms that occur on collage campuses under the 
campus security section.
     Mr. Miller (D-CA) offered an amendment to require 
institutions of higher education to provide each student upon 
enrollment a separate, clear and conspicuous written notice 
advising the student of the penalties for drug-related offenses 
with regard to their eligibility for federal financial aid.
     Mr. Payne (D-NJ) offered an amendment to extend 
loan forgiveness under the Perkins Loan Program to prosecutors 
and public defenders under the category of law enforcement. Mr. 
Goodling (R-PA) offered a second degree amendment that was 
accepted to limit loan forgiveness to prosecutors and public 
defenders earning $30,000 or less in adjusted gross income.

                            Committee Views

    In addition to the many technical and clarifying changes 
included in the Higher Education Technical Amendments of 2000, 
there are some important policy changes that the Committee 
included in order to improve the specific programs for 
students, institutions of higher education and participants in 
the student loan program.

                        Student Support Services

    One of the significant changes included by the Committee 
affects the Student Support Services Program. This information 
is one of the current TRIO programs and it is targeted to 
students from low-income families who are at risk of dropping 
out of college. Institutions of higher education that have a 
Student Support Services grant provide these students with 
intensive counseling, mentoring services, academic support and 
other services all designed to increase college retention and 
graduate rates for these students. The Committee has decided to 
expand the program in order to allow institutions that provide 
services under this program to use a portion of their grant 
money to provide direct grants to aid students. Institutions 
that wish to use funds for grant aid will have to demonstrate 
in their application that such a use of funds is likely to have 
a significant impact on retention rates at their institution. 
In addition, institutions that wish to use funds for grant aid 
will have to match those funds, in cash, in an amount that is 
not less than 33 percent of the total amount of funds from the 
Student Support Services Program used for direct grant aid.
    While each institution would determine which combination of 
services and assistance to offer its at-risk students, the 
particular services and assistance that would be available are 
designed to address the factors most significantly associated 
with the failure to complete a baccalaureate degree program. 
Support services and a substantial increase in grant aid 
wouldhelp primarily those students who are likely to drop out of 
college as a result of academic problems that often result from a 
student having to work full time while enrolled. The Committee is 
optimistic that an expanded Student Support Services Program will help 
eliminate the discrepancy that currently exists in baccalaureate degree 
attainment rates for students from low- and high-income families by 
supporting specific activities that research has shown to improve 
student retention for students at risk of dropping out of college.

                       Institutional Eligibility

    Another important change included by the Committee impacts 
the eligibility of Historically Black Colleges and Universities 
(HBCUs) to participate in the federal student aid programs. 
These institutions play a vital role in providing access to 
postsecondary education for students who might not otherwise 
enroll in higher education. Under the Higher Education 
Amendments of 1998, HBCUs may participate in the student aid 
programs until July 1, 2002, even though their cohort default 
rates are in excess of 25 percent for the three most recent 
fiscal years for which data are available. The exemption is 
available to these institutions provided that they submit an 
acceptable default management plan to the Department of 
Education by July 1, 1999; engage an independent third party to 
provide technical assistance in implementing the plan; and 
provide evidence of improvement and successful implementation 
of the plan. In adopting this provision, the Committee intended 
that the July 1, 1999 plans and implementation strategies 
result in default rate reductions that would bring the affected 
institutions into compliance and that they would then be 
subject to the same rules as all other institutions. However, 
the elimination of the exemption as of July 1, 2002, does not 
provide sufficient time for the affected institutions to take 
the actions outlined in the default management plans to reduce 
their cohort default rates.
    To illustrate, the first eligibility determinations made 
after July 1, 2002, will be based on cohort default rates for 
fiscal years 1997, 1998 and 1999. The required default 
management plans were not due until July 1, 1999, so any 
actions resulting from the plans could have had no effect on 
the fiscal year 1997 cohort default rate, and only a minimal 
effect on the fiscal year 1998 cohort default rate. In order to 
provide these institutions with an opportunity to implement the 
default management plans and make changes that will affect a 
full three years of cohort default rates, the Committee decided 
to extend the exemption until July 1, 2004. Eligibility 
determinations made after July 1, 2004, will be based on cohort 
default rates for fiscal years 1999, 2000, and 2001, and will 
reflect the impact of the default management plans required by 
this Committee in the Higher Education Amendments of 1998.

                          Perkins Loan Program

    The Committee adopted several changes to the Perkins Loan 
Program in order to improve the administration of the program 
and to assist students in certain circumstances. The first 
change makes clear that the Committee intends for the 
Department of Education to reimburse institutions of higher 
education for principal and interest if a borrower's payments 
are deferred while performing public service that ultimately 
results in a borrower's loan being cancelled. Currently, the 
Department of Education is only reimbursing institutions for 
the amount of outstanding principal which results in a 
reduction in Perkins Loan funds available to other needy 
students. The department's action penalizes future students 
when current borrowers take advantage of the available 
deferment and cancellation benefits allowed under the Perkins 
Loan Program and is contrary to the intent of the Committee.
    The second change affects the eligibility of a Perkins Loan 
borrower who has defaulted on his or her repayment obligations 
to receive the benefit of loan rehabilitation. Currently, the 
law extends the benefits of loan rehabilitation, including 
reinstatement of eligibility for student aid, to borrowers who 
make 12 on-time, consecutive monthly payments. However, a 
borrower who pays his or her defaulted loan in full in one lump 
sum payment is not eligible for the benefits of loan 
rehabilitation. The Committee does not believe that policy is 
in the best interests of the program or the student. If a 
borrower is willing and able to pay their defaulted loan in 
full, including all principal, interest and collection costs, 
that borrower should be eligible for the benefits of loan 
rehabilitation. H.R. 4504 makes that change.
    In addition, the Committee believes that an institution of 
higher education or the secretary, if the secretary holds the 
defaulted loan of a borrower, should have the option to offer 
loan rehabilitation to a borrower even if the defaulted loan 
has been reduced to judgment. However, the Committee does not 
believe that a borrower in this situation should be entitled to 
loan rehabilitation. In many cases, institutions of higher 
education have gone to significant time and expense in 
obtaining a judgment against a borrower who refuses to repay a 
loan in default. In those cases, it may not be in the best 
interest of the program, both financially and legally, to 
require that borrowers be offered the benefits of loan 
rehabilitation. The Committee believes that decision is best 
left to the institution or the secretary, on a case-by-case 
basis.
    The last change reflects an amendment adopted by the 
Committee during consideration of H.R. 4504, and extends loan 
cancellation benefits to full-time public defenders and 
codifies a Department of Education interpretation that full-
time prosecutors are eligible for loan cancellation under the 
law enforcement category. The Committee limited loan 
cancellation for prosecutors and public defenders to those who 
have an adjusted gross income of $30,000 or less. Several 
members of the Committee supported the underlying bill which 
prohibited loan cancellation for both prosecutors and public 
defenders. Those members did not believe that prosecutors and 
public defenders meet the basic test for using taxpayer funds 
for loan forgiveness. Previously, loan forgiveness has been 
targeted to persons who enter low-paying occupations, 
occupations that have severe shortages, or occupations related 
to a national need.

                          Student Eligibility

    H.R. 4504 includes clarifying language related to the 
ineligibility of students convicted of drug offenses to receive 
student aid. Specifically, the Committee clarified that this 
provision only applies to students enrolled in postsecondary 
education and receiving student aid. In addition, H.R. 4505 
makes it clear that a student who fails to answer the drug 
conviction question on the Free Application for Federal Student 
Aid is ineligible to receive federal aid until such time as the 
question is answered. This provision is in direct response to 
the action taken by the Department of Education that allowed 
students who failed to answer the question to receive student 
aid. During the Committee's consideration of H.R. 4504, an 
amendment was adopted requiring all institutions of higher 
education to provide students with a separate, clear 
andconspicuous written notice that advises students of the potential 
loss of student aid if the question of drug convictions is not answered 
on the application.

                    master calendar and disclosures

    The Committee included a change to the master calendar 
provisions and adopted a new provision related to disclosure 
and reporting requirements at the urging of the higher 
education community. The master calendar change requires the 
Secretary of Education to provide not less than 45 days for 
public comment after publication of a notice of proposed 
rulemaking. The Committee believes that it is important to 
ensure that all parties are given adequate time to review and 
comment on significant regulations affecting the student aid 
programs. Although some groups would have preferred a longer 
period of time, the Committee believes that 45 days provides a 
reasonable period of time without causing disruptive delays in 
the regulatory process.
    H.R. 4504 also includes a new provision recommended by the 
higher education community aimed at ensuring that parties have 
sufficient time to comply with new disclosure and reporting 
requirements adopted by Congress. Similar to the regulatory 
comment period, some groups wanted a longer time for complying 
with new requirements that what was adopted by the Committee. 
However, the Committee believes that a period of 180 days after 
publication of final regulations should be sufficient time for 
modifying data systems and reporting documents when a new 
reporting or disclosure requirement is adopted.
    H.R. 4504 includes three new provisions all related to 
campus security. The Committee continues to be concerned about 
the safety of our nation's college students on college campuses 
and believes that college administrators need to provide 
information to students and parents related to campus security. 
The first provision which is based on H.R. 3619 introduced by 
Representative Andrews of New Jersey, requires institutions of 
higher education to have a policy related to the handling of 
reports on missing students, including the notification of 
parents, guardians and local police. This policy must be 
included in the institution's annual security report which is 
distributed to students and employees.
    The second provision which is based on H.R. 4407 introduced 
by Representative Salmon of Arizona, requires institutions to 
have a policy regarding the availability of information 
provided by the state under the Violent Crime Control and Law 
Enforcement Act with respect to registered sexually violent 
predators. Specifically, the policy must include an assurance 
that information received from the state will be made 
available, the means for accessing such information, the 
frequency with which it is updated, and the type of information 
to be made available. This policy must be included in the 
institution's annual security report which is distributed to 
students and employees.
    The third provision which was an amendment offered by 
Representative Roukema of New Jersey requires institutions to 
include in their annual security report a description of campus 
fire safety practices and standards. The information to be 
included must describe the fire sprinkler system or other fire 
safety system maintained in each campus residence hall; 
statistics on fires and false alarms in residence halls, 
including deaths, injuries and structural damage; and other 
information related to smoke alarms, fire escape protocols, 
rules on electrical appliances, smoking, open flames and fire 
drills. Institutions are required to make periodic reports to 
the campus community regarding fires and false alarms and 
report statistics to the Department of Education. The Secretary 
of Education is to report to Congress by July 1, 2002, and 
provide an analysis of current fire safety systems in colleges; 
an analysis of the appropriate fire safety standards to apply 
to these facilities; an estimate of the cost of bringing 
nonconforming facilities into compliance with appropriate 
building codes; and recommendations on how to best meet fire 
safety standards.

                        return of title iv funds

    The most significant change to Title IV of the Higher 
Education Act affects the return of Title IV funds by a 
student. The changes made to the procedures for the return, by 
a student, of grant and loan assistance provided under Title IV 
of the Higher Education Act when he or she withdraws from an 
institution of higher education were a direct result of 
concerns raised by the higher education community with respect 
to the impact of current law on students from low-income 
families. These changes pertain to the return of federal grant 
overpayments and are designed to lessen the impact of the 
changes made by the Higher Education Amendments of 1998 on the 
lowest income students.
    The first change simply clarifies current law in order to 
make it clear that a program that is measured in clock hours 
may, under certain circumstances, use scheduled hours to 
determine the percentage of the payment period or period of 
enrollment for which assistance has been earned.
    The second change, which will assist students from the 
lowest income families who receive large Pell Grant awards, 
makes it clear that students are never to return more than 50 
percent of the total grant assistance they received. The 
student's responsibility under current law to repay, upon 
withdrawal, some portion of Title IV grant assistance that may 
exceed 50 percent of the amount received, can make it difficult 
for a student to return to postsecondary education at a later 
date. This obstacle falls disproportionately on students form 
the lowest income families since they are the recipients of the 
majority of Pell Grant funds. This change would help alleviate 
this burden while ensuring that students are responsible for 
returning some portion of the grant assistance received from 
the federal government.
    The third change would permit a student to repay a grant 
overpayment on terms that enable the student to retain his or 
her eligibility for additional assistance under Title IV. A 
student would receive a six-month grace period that would begin 
on the day the student withdrew in order to give a student an 
opportunity to find the resources necessary to repay the grant 
overpayment. This change makes the repayment of a grant 
overpayment similar to loan repayments which begin six months 
after a student withdraws from a postsecondary education. In 
addition, if a student re-enrolled in postsecondary education 
on at least a half-time basis, repayment of the grant 
overpayment would be deferred during the period of enrollment. 
This change would eliminate a barrier that may currently 
prevent a low-income student from making another attempt to 
obtain a postsecondary education.
    In order to give institutions of higher education 
sufficient time to implement these changes, the effective date 
for implementing the return of funds changes will be the 
academic year beginning July 1, 2001. However, an institution 
of higher education that wishes to provide these benefits to 
students prior to that date has the option to implement these 
changes prior to the stated effective date.

                     hispanic-serving institutions

    H.R. 4504 makes a change to Title V of the Higher Education 
Act with respect to Hispanic-serving institutions. The 
Committee decided to eliminate the two-year wait-out period 
that prevents institutions from applying for a new grant until 
two years have elapsed after the expiration of a prior grant. 
The Committee's action is consistent with H.R. 3629 that was 
reported by the Committee, passed by the House on suspension on 
May 2, 2000 and signed into law by the president on May 26, 
2000. H.R. 3629 deleted that exact same wait-out provision that 
applied to Tribal Colleges and Alaska Native and Native 
Hawaiian-serving institutions under Title III of the Higher 
Education Act. The Committee has determined that there is no 
need for a wait-out period in this program due to the funding 
available and the limited number of institutions eligible for 
grant assistance. By removing this restriction, funds for 
institutional development can go the maximum number of 
institutions that submit a qualified application.

                      Section-by-Section Analysis

    Section 1--sets forth the short title as the Higher 
Education Technical Amendments of 2000; provides that all 
amendments and repeals shall be considered to refer to the 
Higher Education Act of 1965; and sets forth the effective 
date.
    Section 2--provides the provisions making technical 
amendments to the Higher Education Act.
    Section 2(a)--provides the provisions amending Title I.
    Section 2(b)--provides the provisions amending Title III.
    Section 2(c)--provides the provisions amending Title IV, 
Part A.
    Section 2(d)--provides the provisions amending Title IV, 
Part B.
    Section 2(e)--provides the provisions amending Title IV, 
Part C.
    Section 2(f)--provides the provisions amending Title IV, 
Part D.
    Section 2(g)--provides the provisions amending Title IV, 
Part E.
    Section 2(h)--provides the provisions amending Title IV, 
Part F.
    Section 2(i)--provides the provisions amending Title IV, 
Parts G and H.
    Section 2(j)--provides the provisions amending Title V.
    Section 2(k)--provides the provisions amending Title VI.
    Section 2(l)--provides the provisions amending Title VII.
    Section 2(m)--provides the provisions amending Title VIII.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. The purpose of H.R. 4504, the Higher Education 
Technical Amendments of 2000, is to make necessary technical 
amendments to the Higher Education Act of 1965, as well as 
policy adjustments, in order to ensure that the Higher 
Education Amendments of 1998 are implemented according to 
congressional intent. The bill does not prevent legislative 
branch employees from receiving the benefits of this 
legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bail include unfunded 
mandates. The purpose of H.R. 4504 is to make necessary 
technical amendments to the Higher Education Act of 1965, as 
well as policy adjustments, in order to ensure that the Higher 
Education Amendments of 1998 are implemented according to 
congressional intent. As such, the bill does not contain any 
unfunded mandates.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.


  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 4504 from the Director of 
the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 7, 2000.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4504, the Higher 
Education Technical Amendments of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah 
Kalcevic.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippin, Director).
    Enclosure.

H.R. 4504--Higher Education Technical Amendments of 2000

    Summary: H.R. 4504 would amend the Higher Education Act of 
1965 to make numerous technical and clarifying amendments to 
the statutes that govern federal student aid. In addition, the 
bill would change the policy on tuition refunds for Pell 
grants, extend for one additional year the authorization for 
the Web-Based Education Commission, and require the Department 
of Education to conduct a study of fire safety in college 
dormitories.
    CBO estimates that implementing H.R. 4504 would cost $13 
million over the 2001-2005 period, assuming appropriation of 
the necessary funds. Enacting this bill also would increase 
direct spending, so pay-as-you-go procedures would apply; but 
CBO estimates those changes would be negligible.
    H.R. 4504 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA), but CBO estimates 
that the costs, if any, would not exceed the threshold in that 
act ($55 million in 2000, adjusted annually for inflation). Any 
other costs incurred by state, local, or tribal governments 
would result from complying with conditions of aid. The bill 
contains no private-sector mandates as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact H.R. 4504 is shown in the following table. The 
costs of this legislation fall within budget function 500 
(education, employment training, and social services).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2000      2001      2002      2003      2004      2005
----------------------------------------------------------------------------------------------------------------
                                      SPENDING SUBJECT TO APPROPRIATION \1\
Spending Under Current Law:
    Estimated Authorization Level \2\...............     9,375     9,534     9,684     9,853    10,022         0
    Estimated Outlays...............................     9,122     9,711     9,885    10,043    10,215     8,439
Proposed Changes:
    Estimated Authorization Level...................         0         1         3         3         3         3
    Estimated Outlays...............................         0         1     (\3\)         3         3         3
Spending Under H.R. 4504:
    Estimated Authorization Level \2\...............     9,375     9,535     9,687     9,856    10,025         3
    Estimated Outlays...............................     9,122     9,711     9,885    10,046    10,218    8,442
----------------------------------------------------------------------------------------------------------------
\1\ H.R. 4504 also would affect direct spending, but by negligible amounts.
\2\ The 2000 level is the amount appropriated for that year for student financial assistance. Subsequent years
  show CBO baseline levels that include annual adjustments for anticipated inflation. The baseline levels
  without adjustments for inflation would stay constant at $9,375 million.
\3\ =Less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
4504 will be enacted by the end of fiscal year 2000, and that 
funds necessary to implement the bill will be appropriated for 
each year.

Spending subject to appropriation

    H.R. 4504 would increase estimated authorization levels by 
$1 million in 2001 and $13 million over the 2001-2005 period. 
These costs are the sum of several changes in authorizations. 
The bill would:
     Extend the temporary Web-Based Education 
Commission through 2001,
     Authorize the Department of Education to conduct a 
study on the fire safety issues related to college dormitories, 
and
     Make three changes to the refund policy for the 
Pell grants.
    Web-Based Education Commission. Under current law, the 
authorization for the Web-Based Education Commission expires at 
the end of 2000. Funding for this commission is $450,000 for 
2000. H.R. 4504 would extend the authorization at that level 
for one more year.
    Fire Safety Study. H.R. 4504 would authorize the Department 
of Education to conduct a study on the fire safety issues 
related to college dormitories and to estimate the cost of 
bringing all dormitories into compliance with fire codes. The 
bill would require the department to complete the study by July 
2002. Based on information from the department, CBO estimates 
this study would cost about $250,000 over the 2001-2002 period.
    Pell Grant Refund Policy. H.R. 4504 would require the 
refund policies for Pell grants to be altered in several ways 
beginning in academic year 2001-2002. Individual schools could 
implement the change during the 2000-2001 academic year. First, 
the amount of Pell grants that a student who drops out of 
school during a semester would have to repay to the federal 
government would be reduced by 50 percent of the original grant 
awarded. Second, students who owe less than $50 would not have 
to repay any amount to the federal government. Third, students 
would be given a six-month grace period after they drop out to 
begin repayment, and no payments would have to be made while 
they attended school. Currently, students must return 50 
percent of the amount due immediately and without regard to the 
amount owed.
    CBO estimates that these changes would cost $3 million a 
year, beginning in 2002. This estimate is based on data from 
the National Student Loan Data System, which includes 
information on all overpayments of federal grants. These data 
were adjusted to reflect only the amount owed by Pell grant 
recipients who drop out during a semester. Based on the data, 
CBO estimates relatively few students would be affected by 
these refund policy changes.
    Much of the budgetary impact of this change is shown in the 
year following the distribution of the Pell grant to the 
student. Refund payments from students are recorded when the 
dropout occurs so estimated authorization for this change is 
assumed to occur in the year after funds were appropriated for 
the Pell grant.

Direct spending

    H.R. 4504 would make numerous changes in the student loan 
program. Most of the changes are clarifying and technical in 
nature. Some changes could have federal cost impacts, but CBO 
estimates the federal costs of all the changes combined would 
be negligible. In particular, the bill would:
           Extend for two additional years the 
        exemption of certain minority institutions with high 
        default rates,
           Change the requirements under which students 
        convicted for drug offenses can receive federal aid, 
        and
           Modify certain tuition refund rules 
        affecting both student loans and Pell grants.
    Exemption for Certain Institutions of Higher Education with 
High Default Rates. The two-year extension applies to certain 
minority institutions with default rates exceeding 25 percent. 
The current exemptions expire in 2002. Based on information 
published by the Department of Education on Default rates of 
the few schools potentially affected by this amendment, CBO 
estimates that the cost of the extension would be 
insignificant.
    Students with Drug Offenses. H.R. 4504 would change the 
restrictions on receiving federal student aid for students 
convicted of a drug offense. Currently, a student is not 
eligible for federal student aid for a statutory period of time 
after the conviction--the time period increases with the number 
of convictions. Under the bill, only students who were 
convicted of a drug offense while they were receiving federal 
student aid would be prohibited from receiving aid for the 
statutory period. In addition, any student would be deemed 
ineligible for aid if they fail to answer the drug-related 
questions on the application for federal student aid.
    The current drug-related rules are being implemented for 
the first time in academic year 2000-2001. Based on preliminary 
data from early applications and calls to the national student 
aid hotline, CBO estimates that the changes included in H.R. 
4504 would have a minor effect on the participation in and 
costs of federal student aid programs.
    Tuition Refund Policies. The bill also would require 
changes in the tuition refund rules for some postsecondary 
education programs beginning for academic year 2001-2002 
(although schools could implement the rules before that date). 
The change is expected to have a negligible impact on the costs 
of the federal student aid programs. For a program that uses 
clock-hours rather than credit hours to set the length of a 
course, the refund would be based on the percentage of 
scheduled hours that have elapsed rather than completed hours 
in some circumstances.
    The direct spending effects of the refund changes are 
generally associated with the student loan programs, but may 
also occur in the Pell grant program under certain 
circumstances. If the changes affect Pell grants funded out of 
existing appropriations, these effects would be considered 
mandatory spending. Because few schools are expected to 
implement the new refund policy during academic year 2000-2001, 
CBO estimates the tuition refund policy changes would have a 
negligible impact on Pell grants funded out of existing 
appropriations.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Acts sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. Enacting 
H.R. 4504 would affect direct spending, but CBO estimates that 
the effects would be less than $500,000 a year.
    Estimated impact on state, local, and tribal governments: 
H.R. 4504 would preempt certain state laws by limiting states' 
options for securing a creditor's interest in student loans. 
Under current law, some states allow the use of two methods of 
securing such interest: possession of loan notes or filing with 
the state. H.R. 4504 would allow only the filing method, with 
certain exceptions. CBO estimates that any costs of this 
preemption would not exceed the threshold in UMRA ($55 million 
in 2000, adjusted annually for inflation).
    The bill would impose several new reporting requirements on 
institutions of higher education, including a requirement to 
notify students that they would forfeit financial aid if they 
are convicted of violating certain controlled substance laws. 
CBO assumes that these requirements are effectively placed on 
institutions participating in the federal student financial aid 
programs. The bill also would authorize a new use for certain 
grant funds that would require participating institutions to 
provide matching funds. Costs related to these provisions would 
be incurred voluntarily, as a condition of aid.
    Estimated impact on the private sector: H.R. 4504 contains 
no private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: Deborah Kalcevic; 
Impact on State, Local, and Tribal Governments: Susan Seig 
Tompkins; and Impact on the Private Sector: Nabeel Alaslam.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

 Statement of Oversight Findings of the Committee on Government Reform

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform on the 
subject of H.R. 4504.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 4504. The 
Committee believes that the amendments made by this bill to the 
Higher Education Act of 1965 are within Congress' authority 
under Article I, section 8, clause 1 of the Constitution.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 4504. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                      HIGHER EDUCATION ACT OF 1965


               PART I--GENERAL HIGHER EDUCATION PROGRAMS

           *       *       *       *       *       *       *



                      TITLE I--GENERAL PROVISIONS

                          PART A--DEFINITIONS

SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

  (a) Institution of Higher Education.--For purposes of this 
Act, other than title IV, the term ``institution of higher 
education'' means an educational institution in any State 
that--
          (1) admits as regular students only persons having a 
        certificate of graduation from a school providing 
        secondary education, or the recognized equivalent of 
        such a certificate, or students who meet the 
        requirements of section 484(d)(3);

           *       *       *       *       *       *       *


SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF 
                    TITLE IV PROGRAMS.

  (a) Definition of Institution of Higher Education for 
Purposes of Title IV Programs.--
          (1) * * *
          (2) Institutions outside the united states.--
                  [(A) In general.--For the purpose of 
                qualifying as an institution under paragraph 
                (1)(C), the Secretary shall establish criteria 
                by regulation for the approval of institutions 
                outside the United States and for the 
                determination that such institutions are 
                comparable to an institution of higher 
                education as defined in section 101. In the 
                case of a graduate medical or veterinary school 
                outside the United States, such criteria shall 
                include a requirement that a student attending 
                such school outside the United States is 
                ineligible for loans made, insured, or 
                guaranteed under part B unless--
                          [(i)(I) at least 60 percent of those 
                        enrolled in, and at least 60 percent of 
                        the graduates of, the graduate medical 
                        school outside the United States were 
                        not persons described in section 
                        484(a)(5) in the year preceding the 
                        year for which a student is seeking a 
                        loan under part B of title IV; and
                          [(II) at least 60 percent of the 
                        individuals who were students or 
                        graduates of the graduate medical 
                        school outside the United States (both 
                        nationals of the United States and 
                        others) taking the examinations 
                        administered by the Educational 
                        Commission for Foreign Medical 
                        Graduates received a passing score in 
                        the year preceding the year for which a 
                        student is seeking a loan under part B 
                        of title IV; or
                          [(ii) the institution 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.]
                  (A) In general.--For the purpose of 
                qualifying as an institution under paragraph 
                (1)(C), the Secretary shall establish criteria 
                by regulation for the approval of institutions 
                outside the United States and for the 
                determination that such institutions are 
                comparable to an institution of higher 
                education as defined in section 101 (except 
                that a graduate medical school, or a veterinary 
                school, located outside the United States shall 
                not be required to meet the requirements of 
                section 101(a)(4)). Such criteria shall include 
                a requirement that a student attending such 
                school outside the United States is ineligible 
                for loans made, insured, or guaranteed under 
                part B unless--
                          (i) in the case of a graduate medical 
                        school located outside the United 
                        States--
                                  (I)(aa) at least 60 percent 
                                of those enrolled in, and at 
                                least 60 percent of the 
                                graduates of, the graduate 
                                medical school outside the 
                                United States were not persons 
                                described in section 484(a)(5) 
                                in the year preceding the year 
                                for which a student is seeking 
                                a loan under part B of title 
                                IV; and
                                  (bb) at least 60 percent of 
                                the individuals who were 
                                students or graduates of the 
                                graduate medical school outside 
                                the United States (both 
                                nationals of the United States 
                                and others) taking the 
                                examinations administered by 
                                the Educational Commission for 
                                Foreign Medical Graduates 
                                received a passing score in the 
                                year preceding the year for 
                                which a student is seeking a 
                                loan under part B of title IV; 
                                or
                                  (II) the institution has a 
                                clinical training program that 
                                was approved by a State as of 
                                January 1, 1992; or
                          (ii) in the case of a veterinary 
                        school located outside the United 
                        States that does not meet the 
                        requirements of section 101(a)(4)--
                                  (I) the institution was 
                                certified by the Secretary as 
                                eligible to participate in the 
                                loan program under part B of 
                                title IV before October 1, 
                                1999; and
                                  (II) the institution's 
                                students complete their 
                                clinical training at an 
                                approved veterinary school 
                                located in the United States.

           *       *       *       *       *       *       *

          (3) Limitations based on course of study or 
        enrollment.--An institution shall not be considered to 
        meet the definition of an institution of higher 
        education in paragraph (1) if such institution--
                  (A) offers more than 50 percent of such 
                institution's courses by correspondence, unless 
                the institution is an institution that meets 
                the definition in [section 521(4)(C) of the 
                Carl D. Perkins Vocational and Applied 
                Technology Education Act] section 3(3)(C) of 
                the Carl D. Perkins Vocational and Technical 
                Education Act of 1998;

           *       *       *       *       *       *       *


SEC. 103. ADDITIONAL DEFINITIONS.

  In this Act:
          (1) * * *

           *       *       *       *       *       *       *

          [(7) New borrower.--The term ``new borrower'' when 
        used with respect to any date means an individual who 
        on that date has no outstanding balance of principal or 
        interest owing on any loan made, insured, or guaranteed 
        under title IV.]
          (7) New borrower.--The term ``new borrower'' when 
        used with respect to any date for any loan under any 
        provision of--
                  (A) part B or part D of title IV means an 
                individual who on that date has no outstanding 
                balance of principal or interest owing on any 
                loan made, insured, or guaranteed under either 
                such part; and
                  (B) part E of title IV means an individual 
                who on that date has no outstanding balance of 
                principal or interest owing on any loan made 
                under such part.

           *       *       *       *       *       *       *


                    PART C--COST OF HIGHER EDUCATION

SEC. 131. IMPROVEMENTS IN MARKET INFORMATION AND PUBLIC ACCOUNTABILITY 
                    IN HIGHER EDUCATION.

  (a) Improved Data Collection.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Information to institutions.--The Commissioner of 
        Education Statistics shall--
                  (A) develop a standard definition for the 
                following data elements:
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) average amount of financial 
                        assistance received by [an 
                        undergraduate] a full-time 
                        undergraduate student who attends an 
                        institution of higher education, 
                        including--
                                  (I) each type of assistance 
                                or benefit described in 
                                [section 428(a)(2)(C)(i)] 
                                section 428(a)(2)(C)(ii);

           *       *       *       *       *       *       *

  (b) Data Dissemination.--The Secretary shall make available 
the data collected pursuant to subsection (a). Such data shall 
be available in a form that permits the review and comparison 
of the data submissions of individual institutions of higher 
education. Such data shall be presented in a form that is 
easily understandable and allows parents and students to make 
informed decisions based on [the costs for typical] the prices 
for, and financial aid provided to, typical full-time 
undergraduate students.
  (c) Study.--
          (1) * * *
          (2) Evaluation.--The study shall include an 
        evaluation of--
                  (A) * * *
                  (B) the relationship of the expenditures 
                identified in paragraph (1) to college [costs] 
                prices; and

           *       *       *       *       *       *       *

  (d) Student Aid Recipient Survey.--(1) The Secretary shall 
survey student aid recipients on a regular cycle, but not less 
than once every [3] 4 years--
          (A)  * * *

           *       *       *       *       *       *       *


  PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL 
                               ASSISTANCE

SEC. 141. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL 
                    STUDENT FINANCIAL ASSISTANCE.

  (a) Establishment and Purpose.--
          (1) * * *
          (2) Purposes.--The purposes of the PBO are--
                  (A) * * *
                  (B) to reduce the total and unit costs of 
                administering those programs;

           *       *       *       *       *       *       *

  (c) Performance Plan and Report.--
          (1) Performance plan.--
                  (A) In general.--[Each year] Each fiscal 
                year, the Secretary and Chief Operating Officer 
                shall agree on, and make available to the 
                public, a performance plan for the PBO for the 
                succeeding 5 years that establishes measurable 
                goals and objectives for the organization.
                  (B) Consultation.--In developing the 5-year 
                performance plan and any revision to the plan, 
                the Secretary and the Chief Operating Officer 
                shall consult with students, institutions of 
                higher education, Congress, lenders, guaranty 
                agencies, the Advisory Committee on Student 
                Financial Assistance, and other interested 
                parties not less than 30 days prior to the 
                implementation of the performance plan or 
                revision.

           *       *       *       *       *       *       *

          (2) Annual report.--Each year, the Chief Operating 
        Officer shall prepare and submit to Congress, through 
        the Secretary, an annual report on the performance of 
        the PBO, including an evaluation of the extent to which 
        the PBO met the goals and objectives contained in the 
        5-year performance plan described in paragraph (1) for 
        the preceding year. The annual report shall include the 
        following:
                  (A) An independent financial audit of the 
                [expenditures] administrative expenditures for 
                the most recent fiscal year of both the PBO and 
                programs administered by the PBO.
                  (B) Financial and performance requirements 
                applicable to the PBO under the [Chief 
                Financial Officer Act of 1990 and] Chief 
                Financial Officers Act of 1990, the Government 
                Performance and Results Act of 1993, and other 
                relevant legislation.

           *       *       *       *       *       *       *

  (f ) Student Loan Ombudsman.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Functions of ombudsman.--The Ombudsman shall--
                  (A) in accordance with regulations of the 
                Secretary, receive, review, and attempt to 
                resolve informally complaints from borrowers of 
                loans described in paragraph (1), including, as 
                appropriate, attempts to resolve such 
                complaints within the Department of Education 
                and with institutions of higher education, 
                lenders, guaranty agencies, loan servicers, and 
                other participants in the loan programs 
                described in paragraph (1)[(A)]; and

           *       *       *       *       *       *       *

  (g) Personnel Flexibility.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Excepted service.--The Chief Operating Officer 
        may appoint, without regard to the provisions of title 
        5, United States Code, governing appointments in the 
        competitive service, not more than 25 technical and 
        professional employees to administer the functions of 
        the PBO. These employees may be paid without regard to 
        the provisions of chapter 51 and subchapter III of 
        chapter 53 of such title relating to classification and 
        General Schedule pay rates. The names and compensation 
        for those individuals shall be included in the annual 
        report under subsection (c)(2).

           *       *       *       *       *       *       *


                     TITLE III--INSTITUTIONAL AID

           *       *       *       *       *       *       *



   Part B--Strengthening Historically Black Colleges and Universities

           *       *       *       *       *       *       *



SEC. 324. ALLOTMENTS TO INSTITUTIONS.

  (a) * * *

           *       *       *       *       *       *       *

  [(g) Special Rule for Certain District of Columbia Eligible 
Institutions.--In any fiscal year that the Secretary determines 
that Howard University or the University of the District of 
Columbia will receive an allotment under subsections (b) and 
(c) of this section which is not in excess of amounts received 
by Howard University under the Act of March 2, 1867 (14 Stat. 
438; 20 U.S.C. 123), relating to annual authorization of 
appropriations for Howard University, or by the University of 
the District of Columbia under the District of Columbia Self-
Government and Governmental Reorganization Act (87 Stat. 774) 
for such fiscal year, then Howard University and the University 
of the District of Columbia, as the case may be, shall be 
ineligible to receive an allotment under this section.]
  (g) Special Rule for Certain District of Columbia Eligible 
Institutions.--
          (1) Howard university.--In any fiscal year that the 
        Secretary determines that Howard University will 
        receive an allotment under subsections (b) and (c) 
        which is not in excess of amounts received for such 
        fiscal year by Howard University under the Act of March 
        2, 1867 (14 Stat. 438; 20 U.S.C. 123), relating to the 
        annual appropriations for Howard University, then 
        Howard University shall be ineligible to receive an 
        allotment under this section.
          (2) University of the district of columbia.--In any 
        fiscal year, the University of the District of Columbia 
        may receive financial assistance under this part, or 
        under section 4(c) of the District of Columbia College 
        Access Act of 1999 (P.L. 106-98), but not under both 
        this part and such section.

           *       *       *       *       *       *       *


SEC. 326. PROFESSIONAL OR GRADUATE INSTITUTIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Eligibility.--
          (1) In general.--Independent professional or graduate 
        institutions and programs eligible for grants under 
        subsection (a) are the following:
                  (A)  * * *

           *       *       *       *       *       *       *


PART D--HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING

           *       *       *       *       *       *       *


SEC. 342. DEFINITIONS.

  For the purposes of this part:
          (1) * * *

           *       *       *       *       *       *       *

          (5) The term ``capital project'' means, subject to 
        section 344(b) the repair, renovation, or, in 
        exceptional circumstances, the construction or 
        acquisition, of--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) instructional equipment, technology,[,] 
                research instrumentation, and any capital 
                equipment or fixture related to facilities 
                described in subparagraph (A);

           *       *       *       *       *       *       *


SEC. 343. FEDERAL INSURANCE FOR BONDS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Sale of Qualified Bonds._Notwithstanding any other 
provision of law, a qualified bond guaranteed under this part 
may be sold to any party that offers terms that the Secretary 
determines are in the best interest of the eligible 
institution.

           *       *       *       *       *       *       *


      PART E--MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM

Subpart 1--Minority Science and Engineering Improvement Program

           *       *       *       *       *       *       *


[SEC. 1024. MULTIAGENCY STUDY OF MINORITY SCIENCE PROGRAMS.

  The Secretary, in cooperation with the heads of other 
departments and agencies that operate programs similar in 
purposes to the Minority Science Improvement Program which seek 
to increase minority participation and representation in 
scientific fields, shall submit a report to the President and 
Congress summarizing and evaluating such programs by January 1, 
1996.]

           *       *       *       *       *       *       *


                      TITLE IV--STUDENT ASSISTANCE

  Part A--Grants to Students in Attendance at Institutions of Higher 
Education

           *       *       *       *       *       *       *


    Subpart 2--Federal Early Outreach and Student Services Programs

CHAPTER 1--FEDERAL TRIO PROGRAMS

           *       *       *       *       *       *       *


SEC. 402D. STUDENT SUPPORT SERVICES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Special Rule.--
          (1) Use for student aid.--A recipient of a grant that 
        undertakes any of the permissible services identified 
        in subsection (b) may, in addition, use such funds to 
        provide grant aid to students if the recipient 
        demonstrates in its application, to the satisfaction of 
        the Secretary, that the size of the grants the 
        recipient will provide to students is appropriate and 
        likely to have a significant impact on retention at 
        that institution. In making grants to students under 
        this subsection, an institution shall ensure that 
        adequate consultation takes place between the student 
        support service program office and the institution's 
        financial aid office.
          (2) Eligible students.--For purposes of receiving 
        grant aid under this subsection, eligible students 
        shall be current participants in the student support 
        services program offered by the institution and be--
                  (A) students who are in their first 2 years 
                of postsecondary education and who are 
                receiving Federal Pell Grants under subpart 1; 
                or
                  (B) students who have completed their first 2 
                years of postsecondary education and who are 
                receiving Federal Pell Grants under subpart 1 
                if the institution demonstrates to the 
                satisfaction of the Secretary that--
                          (i) these students are at high risk 
                        of dropping out; and
                          (ii) it will first meet the needs of 
                        all its eligible first- and second-year 
                        students for services under this 
                        paragraph.
          (3) Determination of need.--A grant provided to a 
        student under paragraph (1) shall not be considered in 
        determining that student's need for grant or work 
        assistance under this title, except that in no case 
        shall the total amount of student financial assistance 
        awarded to a student under this title exceed that 
        student's cost of attendance, as defined in section 
        472.
          (4) Matching required.--A recipient of a grant who 
        uses such funds for the purpose described in paragraph 
        (1) shall match the funds used for such purpose, in 
        cash, from non-Federal funds, in an amount that is not 
        less than 33 percent of the total amount of funds used 
        for that purpose. This paragraph shall not apply to any 
        grant recipient that is an institution of higher 
        education eligible to receive funds under part A or B 
        of title III or title V.
          (5) Reservation.--For any fiscal year after the date 
        of enactment of the Higher Education Technical 
        Amendments of 2000, the Secretary may reserve not more 
        than 20 percent of the funds available under this 
        section for grant aid in accordance with this 
        subsection.
  [(c)] (d) Requirements for Approval of Applications.--In 
approving applications for student support services projects 
under this chapter for any fiscal year, the Secretary shall--
          (1) require an assurance that not less than two-
        thirds of the persons participating in the project 
        proposed to be carried out under any application--
                  (A) be individuals with disabilities; or
                  (B) be low-income individuals who are first 
                generation college students;
          (2) require an assurance that the remaining students 
        participating in the project proposed to be carried out 
        under any application be low-income individuals, first 
        generation college students, or individuals with 
        disabilities;
          (3) require an assurance that not less than one-third 
        of the individuals with disabilities participating in 
        the project be low-income individuals;
          (4) require that there be a determination by the 
        institution, with respect to each participant in such 
        project, that the participant has a need for academic 
        support in order to pursue successfully a program of 
        education beyond secondary school;
          (5) require that such participants be enrolled or 
        accepted for enrollment at the institution which is the 
        recipient of the grant or contract; and
          (6) consider, in addition to such other criteria as 
        the Secretary may prescribe, the institution's effort, 
        and where applicable past history, in--
                  (A) providing sufficient financial assistance 
                to meet the full financial need of each student 
                in the project; and
                  (B) maintaining the loan burden of each such 
                student at a manageable level.

           *       *       *       *       *       *       *


  CHAPTER 2--GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE 
                                PROGRAMS

SEC. 404A. EARLY INTERVENTION AND COLLEGE AWARENESS PROGRAM AUTHORIZED.

  (a) * * *
  (b) Awards.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Duration.--An award made by the Secretary under 
        this chapter to an eligible entity described in 
        paragraph (1) or (2) of subsection (c) shall be for a 
        period of 6 years.

           *       *       *       *       *       *       *


    Subpart 4--Leveraging Educational Assistance Partnership Program


SEC. 415A. PURPOSE; APPROPRIATIONS AUTHORIZED.

  (a) Purpose of Subpart.--It is the purpose of this subpart to 
make incentive grants available to States to assist States in--
          (1) * * *
          (2) carrying out the activities described in [section 
        415F] section 415E.

           *       *       *       *       *       *       *


SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP 
                    PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Authorized Activities.--Each State receiving a grant 
under this section may use the grant funds for--
          [(1) increasing the dollar amount of grants awarded 
        under section 415B to eligible students who demonstrate 
        financial need;
          [(2) carrying out transition programs from secondary 
        school to postsecondary education for eligible students 
        who demonstrate financial need;
          [(3) carrying out a financial aid program for 
        eligible students who demonstrate financial need and 
        wish to enter careers in information technology, or 
        other fields of study determined by the State to be 
        critical to the State's workforce needs;
          [(4) making funds available for community service 
        work-study activities for eligible students who 
        demonstrate financial need;
          [(5) creating a postsecondary scholarship program for 
        eligible students who demonstrate financial need and 
        wish to enter teaching;
          [(6) creating a scholarship program for eligible 
        students who demonstrate financial need and wish to 
        enter a program of study leading to a degree in 
        mathematics, computer science, or engineering;
          [(7) carrying out early intervention programs, 
        mentoring programs, and career education programs for 
        eligible students who demonstrate financial need; and
          [(8) awarding merit or academic scholarships to 
        eligible students who demonstrate financial need.]
  (c) Authorized Activities.--Each State receiving a grant 
under this section may use the grant funds for--
          (1) making awards that--
                  (A) supplement grants received under section 
                415A by eligible students who demonstrate 
                financial need; or
                  (B) provide grants under section 415A to 
                additional eligible students who demonstrate 
                financial need;
          (2) providing scholarships for eligible students--
                  (A) who demonstrate financial need; and
                  (B) who--
                          (i) desire to enter a program of 
                        study leading to a career in--
                                  (I) information technology;
                                   (II) mathematics, computer 
                                science, or engineering; or
                                  (III) another field 
                                determined by the State to be 
                                critical to the State's 
                                workforce needs; or
                          (ii) demonstrate merit or academic 
                        achievement and desire; and
          (3) making awards that--
                  (A) supplement community service work-study 
                awards received under section 415A by eligible 
                students who demonstrate financial need; or
                  (B) provide community service work-study 
                awards under section 415A to additional 
                eligible students who demonstrate financial 
                need.

           *       *       *       *       *       *       *

  (f) Special Rule.--Notwithstanding subsection (d), for 
purposes of determining a State's share of the cost of the 
authorized activities described in subsection (c)--
          (1) in the case of a State that participates in the 
        program authorized under this section in fiscal year 
        2000--
                  (A) if such State participates in the program 
                in fiscal year 2001, for that year the State 
                shall consider only those expenditures from 
                non-Federal sources that exceed its 
                expenditures for activities authorized under 
                this subpart for fiscal year 1999; or
                  (B) if such State does not participate in the 
                program in fiscal year 2001, but participates 
                in the program in a succeeding fiscal year, for 
                the first fiscal year after fiscal year 2001 in 
                which the State participates in the program, 
                the State shall consider only those 
                expenditures from non-Federal sources that 
                exceed its expenditures for activities 
                authorized under this subpart for the preceding 
                fiscal year, or fiscal year 1999, whichever is 
                greater; and
          (2) in the case of a State that participates in the 
        program authorized under this section for the first 
        time after fiscal year 2000, for the first fiscal year 
        in which the State participates in the program, the 
        State shall consider only those expenditures from non-
        Federal sources that exceed its expenditures for 
        activities authorized under this subpart for the 
        preceding fiscal year.
  (g) Use of Funds for Administrative Costs Prohibited.--A 
State receiving a grant under this section shall not use any of 
the grant funds to pay administrative costs associated with any 
of the authorized activities described in subsection (c).

Subpart 6--Robert C. Byrd Honors Scholarship Program

           *       *       *       *       *       *       *


SEC. 419C. SCHOLARSHIPS AUTHORIZED.

  (a) * * *
  (b) Period of Award.--Scholarships under this section shall 
be awarded for a period of not less than 1 or more than 4 years 
during the first 4 years of study at any institution of higher 
education eligible to participate in any programs assisted 
under this title. The State educational agency administering 
the program ina State shall have discretion to determine the 
period of the award (within the limits specified in the preceding 
sentence), except that--
          (1) if the amount appropriated for this subpart for 
        any fiscal year exceeds the amount appropriated for 
        this subpart for fiscal year 1993, the Secretary shall 
        identify to each State educational agency the number of 
        scholarships available to that State under section 
        419D(b) that are attributable to such excess; and

           *       *       *       *       *       *       *


SEC. 419D. ALLOCATION AMONG STATES.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Consolidation by Insular Areas Prohibited.--
Notwithstanding section 501 of [Public Law 95-1134] Public Law 
95-134 (48 U.S.C. 1469a), funds allocated under this part to an 
Insular Area described in that section shall be deemed to be 
direct payments to classes of individuals, and the Insular Area 
may not consolidate such funds with other funds received by the 
Insular Area from any department or agency of the United States 
Government.

           *       *       *       *       *       *       *


             Part B--Federal Family Education Loan Program

           *       *       *       *       *       *       *



SEC. 425. LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND ON 
                    FEDERAL LOAN INSURANCE.

  (a) Annual and Aggregate Limits.--
          (1) Annual limits.--(A) The total of loans made to a 
        student in any academic year or its equivalent (as 
        determined by the Secretary) which may be covered by 
        Federal loan insurance under this part may not exceed--
                  (i) in the case of a student at an eligible 
                institution who has not successfully completed 
                the first year of a program of undergraduate 
                education--
                          (I) * * *
                          [(II) if such student is enrolled in 
                        a program of undergraduate education 
                        which is less than one academic year, 
                        the maximum annual loan amount that such 
                        student may receive may not exceed the amount 
                        that bears the same ratio to the amount 
                        specified in subclause (I) as the length of 
                        such program measured in semester, trimester, 
                        quarter, or clock hours bears to one academic 
                        year;]
                          (II) if such student is enrolled in a 
                        program of undergraduate education that 
                        is less than 1 academic year, the 
                        maximum annual loan amount that such 
                        student may receive may not exceed the 
                        lesser of--
                                  (aa) the amount that bears 
                                the same ratio to the amount 
                                specified in subclause (I) as 
                                the length of such program 
                                measured in semester, 
                                trimester, quarter, or clock 
                                hours bears to 1 academic year; 
                                or
                                  (bb) the amount that bears 
                                the same ratio to the amount 
                                specified in subclause (I) as 
                                the length of such program 
                                measured in weeks of 
                                instruction bears to 1 academic 
                                year;

           *       *       *       *       *       *       *


SEC. 428. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

  (a) Federal Interest Subsidies.--
          (1) * * *
          (2) Additional requirements to receive subsidy.--(A) 
        Each student qualifying for a portion of an interest 
        payment under paragraph (1) shall--
                  (i) have provided to the lender a statement 
                from the eligible institution, at which the 
                student has been accepted for enrollment, or at 
                which the student is in attendance, which--
                          (I) * * *
                          (II) sets forth a schedule for 
                        disbursement of the proceeds of the 
                        loan in installments, consistent with 
                        the requirements of section 428G; [and]

           *       *       *       *       *       *       *

                  (iii) have provided to the lender at the time 
                of application for a loan made, insured, or 
                guaranteed under this part, the student's 
                driver's number, if any.

           *       *       *       *       *       *       *

  (b) Insurance Program Agreements To Qualify Loans for 
Interest Subsidies.--
          (1) Requirements of insurance program.--Any State or 
        any nonprofit private institution or organization may 
        enter into an agreement with the Secretary for the 
        purpose of entitling students who receive loans which 
        are insured under a student loan insurance program of 
        that State, institution, or organization to have made 
        on their behalf the payments provided for in subsection 
        (a) if the Secretary determines that the student loan 
        insurance program--
                  (A) authorizes the insurance in any academic 
                year, as defined in section 481(a)(2), or its 
                equivalent (as determined under regulations of 
                the Secretary) for any student who is carrying 
                at an eligible institution or in a program of 
                study abroad approved for credit by the 
                eligible home institution at which such student 
                is enrolled at least one-half the normal full-
                time academic workload (as determined by the 
                institution) in any amount up to a maximum of--
                          (i) in the case of a student at an 
                        eligible institution who has not 
                        successfully completed the first year 
                        of a program of undergraduate 
                        education--
                                  (I) * * *
                                  [(II) if such student is 
                                enrolled in a program of 
                                undergraduate education which 
                                is less than 1 academic year, 
                                the maximum annual loan amount 
                                that such student may receive 
                                may not exceed the amount that 
                                bears the same ratio to the 
                                amount specified in subclause 
                                (I) as the length of such 
                                program measured in semester, 
                                trimester, quarter, or clock 
                                hours bears to 1 academic 
                                year;]
                                  (II) if such student is 
                                enrolled in a program of 
                                undergraduate education that is 
                                less than 1 academic year, the 
                                maximum annual loan amount that 
                                such student may receive may 
                                not exceed the lesser of--
                                          (aa) the amount that 
                                        bears the same ratio to 
                                        the amount specified in 
                                        subclause (I) as the 
                                        length of such program 
                                        measured in semester, 
                                        trimester, quarter, or 
                                        clock hours bears to 1 
                                        academic year; or
                                          (bb) the amount that 
                                        bears the same ratio to 
                                        the amount specified in 
                                        subclause (I) as the 
                                        length of such program 
                                        measured in weeks of 
                                        instruction bears to 1 
                                        academic year;

           *       *       *       *       *       *       *

                  (Y) provides that--
                          (i) the lender shall determine the 
                        eligibility of a borrower for a 
                        deferment described in [subparagraph 
                        (M)(i)] subparagraph (M)(i)(I) based on 
                        receipt of--
                                  (I) * * *

           *       *       *       *       *       *       *

  (c) Guaranty Agreements for Reimbursing Losses.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Forbearance.--A guaranty agreement under this 
        subsection--
                  (A) * * *
                  (B) may, to the extent provided in 
                regulations of the Secretary, contain 
                provisions that permit such forbearance for the 
                benefit of the student borrower as may be 
                agreed upon by the parties to an insured loan 
                and approved by the insurer and recorded in the 
                borrower's file, except that such regulations 
                shall not require such agreements to be in 
                writing;

           *       *       *       *       *       *       *


SEC. 428C. FEDERAL CONSOLIDATION LOANS.

  (a) Agreements With Eligible Lenders.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Definition of eligible borrower.--(A) * * *
          (B)(i) * * *
          (ii) Loans made under this section shall, to the 
        extent used to discharge loans made under this title, 
        be counted against the applicable limitations on 
        aggregate indebtedness contained in section 425(a)(2), 
        428(b)(1)(B), 428H(d), 455, and 464(a)(2)(B).

           *       *       *       *       *       *       *


SEC. 428H. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE-INCOME BORROWERS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Loan Limits.--
          (1) * * *
          (2) Annual limits for independent, graduate, and 
        professional students.--The maximum annual amount of 
        loans under this section an independent student (or a 
        student whose parents are unable to borrow under 
        section 428B or the Federal Direct PLUS Loan Program) 
        may borrow in any academic year (as defined in section 
        481(a)(2)) or its equivalent shall be the amount 
        determined under paragraph (1), plus--
                  (A) in the case of such a student attending 
                an eligible institution who has not completed 
                such student's first 2 years of undergraduate 
                study--
                          (i) * * *
                          [(ii) if such student is enrolled in 
                        a program of undergraduate education 
                        which is less than one academic year, 
                        the maximum annual loan amount that 
                        such student may receive may not exceed 
                        the amount that bears the same ratio to 
                        the amount specified in clause (i) as 
                        the length of such program measured in 
                        semester, trimester, quarter, or clock 
                        hours bears to one academic year;]
                          (ii) if such student is enrolled in a 
                        program of undergraduate education that 
                        is less than 1 academic year, the 
                        maximum annual loan amount that such 
                        student may receive may not exceed the 
                        lesser of--
                                  (I) the amount that bears the 
                                same ratio to the amount 
                                specified in clause (i) as the 
                                length of such program measured 
                                in semester, trimester, 
                                quarter, or clock hours bears 
                                to 1 academic year; or
                                  (II) the amount that bears 
                                the same ratio to the amount 
                                specified in subclause (I) as 
                                the length of such program 
                                measured in weeks of 
                                instruction bears to 1 academic 
                                year;

           *       *       *       *       *       *       *

  (e) Payment of Principal and Interest.--
          (1) * * *

           *       *       *       *       *       *       *

          [(6) Repayment period.--For purposes of calculating 
        the repayment period under section 428(b)(9), such 
        period shall commence at the time the first payment of 
        principal is due from the borrower.]
          [(7)] (6) Qualification for forbearance.--A lender 
        may grant the borrower of a loan under this section a 
        forbearance for a period not to exceed 60 days if the 
        lender reasonably determines that such a forbearance 
        from collection activity is warranted following a 
        borrower's request for forbearance, deferment, or a change 
        in repayment plan, or a request to consolidate loans in 
        order to collect or process appropriate supporting 
        documentation related to the request. During any such 
        period, interest on the loan shall accrue but not be 
        capitalized.

           *       *       *       *       *       *       *


SEC. 432. LEGAL POWERS AND RESPONSIBILITIES.

  (a) * * *

           *       *       *       *       *       *       *

  (m) Common Forms and Formats.--
          (1) Common guaranteed student loan application form 
        and promissory note.--
                  (A) * * *
                  (B) Requirements.--The forms prescribed by 
                the Secretary shall--
                          (i) use clear, concise, and simple 
                        language to facilitate understanding of 
                        loan terms and conditions by 
                        applicants; and
                          (ii) be formatted to require the 
                        applicant to clearly indicate a choice 
                        of lender[; and].

           *       *       *       *       *       *       *

                  (D) Master promissory note.--
                          (i) * * *

           *       *       *       *       *       *       *

                          [(iv) Perfection of security 
                        interests in student loans.--
                        Notwithstanding the provisions of any 
                        State law to the contrary, including 
                        the Uniform Commercial Code as in 
                        effect in any State, a security 
                        interest in loans made under this part 
                        created on behalf of any eligible 
                        lender as defined in section 435(d) may 
                        be perfected either through the taking 
                        of possession of such loans (which can 
                        be through taking possession of an 
                        original or copy of the master 
                        promissory note) or by the filing of 
                        notice of such security interest in 
                        such loans in the manner provided by 
                        such State law for perfection of 
                        security interests in accounts.]
                  (E) Perfection of security interests in 
                student loans.--
                          (i) In general.--Notwithstanding the 
                        provisions of any State law to the 
                        contrary, including the Uniform 
                        Commercial Code as in effect in any 
                        State, a security interest in loans 
                        made under this part, on behalf of any 
                        eligible lender (as defined in section 
                        435(d)) shall attach, be perfected, and 
                        be assigned priority in the manner 
                        provided by the applicable State's law 
                        for perfection of security interests in 
                        accounts, as such law may be amended 
                        from time to time (including applicable 
                        transition provisions). If any such 
                        State's law provides for a statutory 
                        lien to be created in such loans, such 
                        statutory lien may be created by the 
                        entity or entities governed by such 
                        State law in accordance with the 
                        applicable statutory provisions that 
                        created such a statutory lien.
                          (ii) Collateral description.--In 
                        addition to any other method for 
                        describing collateral in a legally 
                        sufficient manner permitted under the 
                        laws of the State, the description of 
                        collateral in any financing statement 
                        filed pursuant to this section shall be 
                        deemed legally sufficient if it lists 
                        such loans, or refers to records 
                        (identifying such loans) retained by 
                        the secured party or any designee of 
                        the secured party identified in such 
                        financing statement, including the 
                        debtor or any loan servicer.
                          (iii) Sales.--Notwithstanding clauses 
                        (i) and (ii) and any provisions of any 
                        State law to the contrary, other than 
                        any such State's law providing for 
                        creation of a statutory lien, an 
                        outright sale of loans made under this 
                        part shall be effective and perfected 
                        automatically upon attachment as 
                        defined in the Uniform Commercial Code 
                        of such State.

           *       *       *       *       *       *       *


SEC. 435. DEFINITIONS FOR STUDENT LOAN INSURANCE PROGRAM.

  As used in this part:
  (a) Eligible Institution.--
          (1) * * *

           *       *       *       *       *       *       *

          (5) Reduction of default rates at certain minority 
        institutions.--
                  (A) Beneficiaries of exception required to 
                establish management plan.--After July 1, 1999, 
                any institution that has a cohort default rate 
                that equals or exceeds 25 percent for each of 
                the three most recent fiscal years for which 
                data are available and that relies on the 
                exception in subparagraph (B) to continue to be 
                an eligible institution shall--
                          (i) submit to the Secretary a default 
                        management plan which the Secretary, in 
                        the Secretary's discretion, after 
                        consideration of the institution's 
                        history, resources, dollars in default, 
                        and targets for default reduction, 
                        determines is acceptable and provides 
                        reasonable assurance that the 
                        institution will, by [July 1, 2002,] 
                        July 1, 2004 have a cohort default rate 
                        that is less than 25 percent;

           *       *       *       *       *       *       *

                  (B) Discretionary eligibility conditioned on 
                improvement.--Notwithstanding the expiration of 
                the exception in paragraph (2)(C), the 
                Secretary may, in the Secretary's discretion, 
                continue to treat an institution described in 
                subparagraph (A) of this paragraph as an 
                eligible institution for each of the 1-year 
                periods beginning on July 1 of [1999, 2000, and 
                2001] 1999 through 2003, only if the 
                institution submits by the beginning of such 
                period evidence satisfactory to the Secretary 
                that--
                          (i)  * * *

           *       *       *       *       *       *       *


SEC. 438. SPECIAL ALLOWANCES.

  (a) * * *
  (b) Computation and Payment.--
          (1) * * *
          (2) Rate of special allowance.--(A) Subject to 
        subparagraphs (B), (C), (D), (E), (F), (G), (H), and 
        (I) and paragraph (4), the special allowance paid 
        pursuant to this subsection on loans shall be computed 
        (i) by determining the average of the bond equivalent 
        rates of 91-day Treasury bills auctioned for such 3-
        month period, (ii) by subtracting the applicable 
        interest rate on such loans from such average, (iii) by 
        adding 3.10 percent to the resultant percent, and (iv) 
        by dividing the resultant percent by 4. [If such 
        computation produces a number less than zero, such 
        loans shall be subject to section 427A(f).]

           *       *       *       *       *       *       *

          (F) Subject to paragraph (4), the special allowance 
        paid pursuant to this subsection on loans for which the 
        applicable rate of interest is determined under section 
        427A(h) shall be computed (i) by determining the 
        applicable bond equivalent rate of the security with a 
        comparable maturity, as established by the Secretary, 
        (ii) by subtracting the applicable interest rates on 
        such loans from such applicable bond equivalent rate, 
        (iii) by adding 1.0 percent to the resultant percent, 
        and (iv) by dividing the resultant percent by 4. [If 
        such computation produces a number less than zero, such 
        loans shall be subject to section 427A(f).]

           *       *       *       *       *       *       *


SEC. 439. STUDENT LOAN MARKETING ASSOCIATION.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Authority of Association.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Perfection of security interests in student 
        loans.--Notwithstanding the provisions of any State law 
        to the contrary, including the Uniform Commercial Code 
        as in effect in any State, a security interest in 
        insured student loans created on behalf of the 
        Association or any eligible lender as defined in 
        section 435(a) may be perfected either through the 
        taking of possession of such loans or by the filing of 
        notice of such security interest in such loans in the 
        manner provided by such State law for perfection of 
        security interests in accounts.]

           *       *       *       *       *       *       *


                  Part C--Federal Work-Study Programs

           *       *       *       *       *       *       *



SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

  (a) * * *
  (b) Contents of Agreements.--An agreement entered into 
pursuant to this section shall--
          (1) * * *
          (2) provide that funds granted an institution of 
        higher education, pursuant to section 443, may be used 
        only to make payments to students participating in 
        work-study programs, except that--
                  (A) * * *
                  (B) for fiscal year 2000 and succeeding 
                fiscal years, an institution shall use at least 
                7 percent of the total amount of funds granted 
                to such institution under this section for such 
                fiscal year to compensate students employed in 
                community service (including a reasonable 
                amount of time spent in travel or training 
                directly related to such community service), 
                and shall ensure that not less than 1 tutoring 
                or family literacy project (as described in 
                subsection (d)) is included in meeting the 
                requirement of this subparagraph, except that 
                the Secretary may waive this subparagraph if 
                the Secretary determines that enforcing this 
                subparagraph would cause hardship for students 
                at the institution; and

           *       *       *       *       *       *       *


          PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

SEC. 455. TERMS AND CONDITIONS OF LOANS.

  (a) * * *
  (b) Interest Rate.--
          (1) * * *

           *       *       *       *       *       *       *

          (7)  * * *
          [(6)] (8) Interest rate provision for new loans on or 
        after october 1, 1998, and before july 1, 2003.--
                  (A)  * * *

           *       *       *       *       *       *       *


                     Part E--Federal Perkins Loans


SEC. 462. ALLOCATION OF FUNDS.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Definition of Cohort Default Rate.--
          (1)(A) * * *

           *       *       *       *       *       *       *

          (E) In determining the number of students who default 
        before the end of such award year, the institution, in 
        calculating the cohort default rate, shall exclude--
                  (i) any loan on which the borrower has, after 
                the time periods specified in paragraph (2)--
                          (I) voluntarily made 6 consecutive 
                        monthly payments;

           *       *       *       *       *       *       *


SEC. 464. TERMS OF LOANS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Contents of Loan Agreement.--(1) Any agreement between an 
institution and a student for a loan from a student loan fund 
assisted under this part--
          (A) * * *

           *       *       *       *       *       *       *

          (D) shall provide that the loan shall bear interest, 
        on the unpaid balance of the loan, at the rate of 5 
        percent per year in the case of any loan made on or 
        after October 1, 1981, except that no interest shall 
        accrue [(I)] (i) prior to the beginning date of 
        repayment determined under paragraph (2)(A)(i), or 
        [(II)] (ii) during any period in which repayment is 
        suspended by reason of paragraph (2);

           *       *       *       *       *       *       *

  (2)(A) No repayment of principal of, or interest on, any loan 
from a student loan fund assisted under this part shall be 
required during any period--
          (i) * * *

           *       *       *       *       *       *       *

          (iv) during which the borrower is engaged in service 
        described in section 465(a)(2), except that interest 
        shall continue to accrue on such loans and such 
        interest shall be eligible for cancellation under 
        section 465;

           *       *       *       *       *       *       *

  (h) Rehabilitation of Loans.--
          (1) Rehabilitation.--
                  (A) In general.--If the borrower of a loan 
                made under this part who has defaulted on the 
                loan, and the loan default has not been reduced 
                to a judgment against the borrower, makes 12 
                ontime, consecutive, monthly payments of 
                amounts owed on the loan, as determined by the 
                institution, or by the Secretary in the case of 
                a loan held by the Secretary, or if the 
                borrower of a loan under this part who has 
                defaulted on the loan elects to make a single 
                payment equal to the full amount of principal 
                and interest and collection costs owed on the 
                loan, the loan shall be considered 
                rehabilitated, and the institution that made 
                that loan (or the Secretary, in the case of a 
                loan held by the Secretary) shall request that 
                any credit bureau organization or credit 
                reporting agency to which the default was 
                reported remove the default from the borrower's 
                credit history.

           *       *       *       *       *       *       *

          (3) Special rule.--At the discretion of the 
        institution or the Secretary, for the purpose of 
        receiving the benefits of this subsection, a loan that 
        is in default and reduced to judgment may be considered 
        rehabilitated if--
                  (A) the borrower makes 12 on-time, 
                consecutive, monthly payments of amounts owed 
                on the loan, as determined by the institution, 
                or by the Secretary in the case of a loan held 
                by the Secretary; or
                  (B) the borrower makes a single payment equal 
                to the full amount of principal and interest 
                and collection costs owed on the loan.

           *       *       *       *       *       *       *


SEC. 465. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.

  (a) Cancellation of Percentage of Debt Based on Years of 
Qualifying Service.--(1) * * *
  (2) Loans shall be canceled under paragraph (1) for service--
          (A) as a full-time teacher for service in an academic 
        year in a public or other nonprofit private elementary 
        or secondary school which is in the school district of 
        a local educational agency which is eligible in such 
        year for assistance pursuant to title I of the 
        Elementary and Secondary Education Act of 1965, and 
        which for the purpose of this paragraph and for that 
        year has been determined by the Secretary (pursuant to 
        regulations and after consultation with the State 
        educational agency of the State in which the school is 
        located) to be a school in which the enrollment of 
        children counted under [section 111(c)] section 
        1113(a)(5) of the Elementary and Secondary Education 
        Act of 1965 exceeds 30 percent of the total enrollment 
        of that school;

           *       *       *       *       *       *       *

          (C) as a full-time special education teacher, 
        including teachers of infants, toddlers, children, or 
        youth with disabilities in a public or other nonprofit 
        elementary or secondary school system, or as a full-
        time qualified professional provider of early 
        intervention services in a public or other nonprofit 
        program under public supervision by the lead agency as 
        authorized in section 635(a)(10) of the Individuals 
        [With] with Disabilities Education Act;

           *       *       *       *       *       *       *

          (F) as a full-time law enforcement officer or 
        corrections officer for service to local, State, or 
        Federal law enforcement or corrections agencies, 
        including full-time prosecutors and public defenders 
        earning $30,000 or less in adjusted gross income;

           *       *       *       *       *       *       *


SEC. 467. COLLECTION OF DEFAULTED LOANS: PERKINS LOAN REVOLVING FUND.

  (a) * * *
  (b) Collection of Referred, Transferred, or Assigned Loans.--
The Secretary shall continue to attempt to collect any loan 
referred, transferred, or assigned under paragraph [(5)(A), 
(5)(B)(i), or (6)] (4)(A), (4)(B), or (5) of section 463(a) 
until all appropriatecollection efforts, as determined by the 
Secretary, have been expended.

           *       *       *       *       *       *       *


SEC. 469. DEFINITIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Infants, Toddlers, Children, and Youth With 
Disabilities.--For purposes of this part, the term ``infants, 
toddlers, children, and youth with disabilities'' means 
children with disabilities and infants and toddlers with 
disabilities as defined in [sections 602(a)(1) and 672(1)] 
sections 602(3) and 632(5), respectively, of the Individuals 
with Disabilities Education Act, and the term ``[qualified 
professional provider of early intervention services] early 
intervention services'' has the meaning specified in [section 
672(2)] section 632(4) of such Act.

           *       *       *       *       *       *       *


                         PART F--NEED ANALYSIS

SEC. 471. AMOUNT OF NEED.

  Except as otherwise provided therein, the amount of need of 
any student for financial assistance under this title (except 
[subparts 1 or 2] subpart 1, 2, or 4 of part A) is equal to--
          (1)  * * *

           *       *       *       *       *       *       *


SEC. 478. REGULATIONS; UPDATED TABLES.

  (a) * * *
  (b) Income Protection Allowance.--
          (1) Revised tables.--For each academic year after 
        [academic year 1993-1994] academic year 2000-2001, the 
        Secretary shall publish in the Federal Register a 
        revised table of income protection allowances for the 
        purpose of sections 475(c)(4) and 477(b)(4). Such 
        revised table shall be developed by increasing each of 
        the dollar amounts contained in the table in each such 
        section by a percentage equal to the estimated 
        percentage increase in the Consumer Price Index (as 
        determined by the Secretary) between [December 1992] 
        December 1999 and the December next preceding the 
        beginning of such academic year, and rounding the 
        result to the nearest $10.

           *       *       *       *       *       *       *

  (h) Employment Expense Allowance.--For each award year after 
award year 1993-1994, the Secretary shall publish in the 
Federal Register a revised table of employment expense 
allowances for the purpose of sections 475(c)(5), 476(b)(4), 
and 477(b)(5). Such revised table shall be developed by 
increasing the dollar amount specified in sections 
475(c)(5)(A), 475(c)(5)(B), 476(b)(4)(A), [476(b)(4)(B),] 
477(b)(5)(A), and 477(b)(5)(B) to reflect increases in the 
amount and percent of the Bureau of Labor Statistics budget of 
the marginal costs for [meals away from home, apparel and 
upkeep, transportation, and housekeeping services] food away 
from home, apparel, transportation, and household furnishings 
and operations for a two-worker versus one-worker family.

           *       *       *       *       *       *       *


SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.

  (a) In General.--Nothing in this part shall be interpreted as 
limiting the authority of the financial aid administrator, on 
the basis of adequate documentation, to make adjustments on a 
case-by-case basis to the cost of attendance or the values of 
the data items required to calculate the expected student or 
parent contribution (or both) to allow for treatment of an 
individual eligible applicant with special circumstances. 
However, this authority shall not be construed to permit aid 
administrators to deviate from the contributions expected in 
the absence of special circumstances. Special circumstances may 
include tuition expenses at an elementary or secondary school, 
medical or dental expenses not covered by insurance, unusually 
high child care costs, recent unemployment of a family member, 
the number of parents enrolled at least half-time in a degree, 
certificate, or other program leading to a recognized 
educational credential at an institution with a program 
participation agreement under section 487, a student's status 
as a ward of the court at any time prior to attaining 18 years 
of age, or other changes in a family's income, a family's 
assets, or a student's status. Special circumstances shall be 
conditions that differentiate an individual student from a 
class of students rather than conditions that exist across a 
class of students. Adequate documentation for such adjustments 
shall substantiate such special circumstances of individual 
students. In addition, nothing in this title shall be 
interpreted as limiting the authority of the student financial 
aid administrator in such cases to request and use 
supplementary information about the financial status or 
personal circumstances of eligible applicants in selecting 
recipients and determining the amount of awards under this 
title. No student or parent shall be charged a fee for 
collecting, processing, or delivering such supplementary 
information.

           *       *       *       *       *       *       *


  Part G--General Provisions Relating to Student Assistance Programs

           *       *       *       *       *       *       *



SEC. 482. MASTER CALENDAR.

  (a) Secretary Required To Comply With Schedule.--To assure 
adequate notification and timely delivery of student aid funds 
under this title, the Secretary shall adhere to the following 
calendar dates in the year preceding the award year:
          (1) * * *

           *       *       *       *       *       *       *

          (5) The Secretary shall provide a period for public 
        comment of not less than 45 days after publication of 
        any notice of proposed rulemaking published after the 
        date of the enactment of the Higher Education Technical 
        Amendments of 2000 affecting programs under this title.

           *       *       *       *       *       *       *


SEC. 483. FORMS AND REGULATIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Toll-Free Information.--The Secretary shall contract for, 
or establish, and publicize a toll-free telephone service to 
provide timely and accurate information to the general public. 
The information provided shall include specific instructions on 
completing the application form for assistance under this 
title. Such service shall also include a service accessible by 
telecommunications devices for the deaf (TDD's) and shall, in 
addition to the services provided for in the previous sentence, 
refer such students to the national clearinghouse on 
postsecondary education [that is authorized under section 
685(d)(2)(C)], or other appropriate provider of technical 
assistance and information on postsecondary educational 
services, that is supported under section 685 of the 
Individuals with Disabilities Education Act.

           *       *       *       *       *       *       *


SEC. 484. STUDENT ELIGIBILITY.

  (a) In General.--In order to receive any grant, loan, or work 
assistance under this title, a student must--
          (1) * * *

           *       *       *       *       *       *       *

          (4) file with the Secretary, as part of the original 
        financial aid application process, a [certification,,] 
        certification, which need not be notarized, but which 
        shall include--
                  (A) * * *

           *       *       *       *       *       *       *

  (b) Eligibility for Student Loans.--(1) * * *
  (2) In order to be eligible to receive any loan under 
[section 428A] section 428H for any period of enrollment, a 
student shall--
          (A) have received a determination of need for a loan 
        under section 428(a)(2)(B) of this title; and
          (B) if determined to have need for a loan under 
        section 428, have applied for such a loan[; and].
          [(C) has applied for a loan under section 428H, if 
        such student is eligible to apply for such a loan.]

           *       *       *       *       *       *       *

  (d) Students Who Are Not High School Graduates.--In order for 
a student who does not have a certificate of graduation from a 
school providing secondary education, or the recognized 
equivalent of such certificate, to be eligible for any 
assistance under subparts 1, 3, and 4 of part A and parts B, C, 
D, and E of this title, the student shall meet one of the 
following standards:
          (1) * * *

           *       *       *       *       *       *       *

          (3) The student certifies that he or she has 
        completed a secondary school education in a home school 
        setting that is treated as a home school or private 
        school under State law.

           *       *       *       *       *       *       *

  (l) Courses Offered Through Telecommunications.--
          (1) Relation to correspondence courses.--
                  (A) * * *
                  (B) Requirement.--An institution of higher 
                education referred to in subparagraph (A) is an 
                institution of higher education--
                          (i) that is not an institute or 
                        school described in [section 521(4)(C) 
                        of the Carl D. Perkins Vocational and 
                        Applied Technology Education Act] 
                        section 3(3)(C) of the Carl D. Perkins 
                        Vocational and Technical Education Act 
                        of 1998; and

           *       *       *       *       *       *       *

  (r) Suspension of Eligibility for Drug-Related Offenses.--
          (1) In general.--A student who has been convicted of 
        any offense under any Federal or State law involving 
        the possession or sale of a controlled substance during 
        any period of enrollment for which the student was 
        receiving assistance under this title shall not be 
        eligible to receive any grant, loan, or work assistance 
        under this title during the period beginning on the 
        date of such conviction and ending after the interval 
        specified in the following table:

           *       *       *       *       *       *       *

          (3) Consequences of failure to answer.--Any student 
        who fails to answer a question of the common financial 
        aid form developed under section 483 that relates to 
        eligibility or ineligibility under this subsection 
        shall be treated as ineligible until such question is 
        answered.
          (4) Notice.--The Secretary shall require each 
        institution of higher education to provide each student 
        upon enrollment with a spearate, clear, and conspicuous 
        written notice that advises students of the penalties 
        contained in this subsection.
          [(3)] (5) Definitions.--In this subsection, the term 
        ``controlled substance'' has the meaning given the term 
        in section 102(6) of the Controlled Substances Act (21 
        U.S.C. 802(6)).

           *       *       *       *       *       *       *


SEC. 484B. INSTITUTIONAL REFUNDS.

  (a) Return of Title IV Funds.--
          (1) In general.--If a recipient of assistance under 
        this title withdraws from an institution during a 
        payment period or period of enrollment in which the 
        recipient began attendance, the amount of grant or loan 
        assistance (other than assistance received under 
        subpart 4 of part A or part C) to be returned to the 
        title IV programs is calculated according to paragraph 
        (3) and returned in accordance with subsection (b).

           *       *       *       *       *       *       *

          (3) Calculation of amount of title iv assistance 
        earned.--
                  (A) * * *
                  (B) Percentage earned.--For purposes of 
                subparagraph (A)(i), the percentage of grant or 
                loan assistance under this title that has been 
                earned by the student is--
                          (i) * * *
                          (ii) 100 percent, if the day the 
                        student withdrew occurs after the 
                        student has completed (as determined in 
                        accordance with subsection (d)) 60 
                        percent of the payment period or period 
                        of enrollment.

           *       *       *       *       *       *       *

  (b) Return of Title IV Program Funds.--
          (1) * * *
          (2) Responsibility of the student.--
                  (A) * * *
                  (B) Special rule.--The student (or parent in 
                the case of funds due to a loan borrowed by a 
                parent under part B or D) shall return or 
                repay, as appropriate, the amount determined 
                under subparagraph (A) to--
                          (i) * * *
                          (ii) a grant program under this 
                        title, as an overpayment of such grant 
                        and shall be [subject to--
                                  [(I) repayment arrangements 
                                satisfactory to the 
                                institution; or
                                  [(II) overpayment collection 
                                procedures prescribed by the 
                                Secretary.] subject to the 
                                procedures described in 
                                subparagraph (C)(ii).
                  [(C) Requirement.--Notwithstanding 
                subparagraphs (A) and (B), a student shall not 
                be required to return 50 percent of the grant 
                assistance received by the student under this 
                title, for a payment period or period of 
                enrollment, that is the responsibility of the 
                student to repay under this section.]
                  (C) Grant overpayment requirements.--(i) 
                Notwithstanding subparagraphs (A) and (B), but 
                subject to clause (ii), a student shall not be 
                required to return 50 percent of the total 
                grant assistance received by a student under 
                this title for a payment period or period of 
                enrollment. A student shall not be required to 
                return amounts of less than $50.
                  (ii) Subject to clause (iii), a student shall 
                be permitted to repay any grant overpayment 
                determined under this section under terms that 
                permit the student to maintain his or her 
                eligibility for further assistance under this 
                title, including a period during which no 
                payment is due from the student--
                          (I) for 6 months, beginning on the 
                        day the student withdrew; and
                          (II) while the student is pursuing at 
                        least a half-time course of study, as 
                        determined by the institution.
                  (iii) Clause (ii) shall not apply to a 
                student who is in default on any repayment 
                obligations under this title, or who has not 
                made satisfactory repayment arrangements with 
                respect to such obligations.

           *       *       *       *       *       *       *


SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
                    STUDENTS.

  (a) Information Dissemination Activities.--(1) Each eligible 
institution participating in any program under this title shall 
carry out information dissemination activities for prospective 
and enrolled students (including those attending or planning to 
attend less than full time) regarding the institution and all 
financial assistance under this title. The information required 
by this section shall be produced and be made readily available 
upon request, through appropriate publications, mailings, [and] 
or electronic media, to an enrolled student and to any 
prospective student. Each eligible institution shall, on an 
annual basis, provide to all enrolled students a list of the 
information that is required to be provided by institutions to 
students by this section and section 444 of the General 
Education Provisions Act (also referred to as the Family 
Educational Rights and Privacy Act of 1974), together with a 
statement of the procedures required to obtain such 
information. The information required by this section shall 
accurately describe--
          (A) * * *

           *       *       *       *       *       *       *

  (f) Disclosure of Campus Security Policy and Campus Crime 
Statistics.--(1) Each eligible institution participating in any 
program under this title shall on August 1, 1991, begin to 
collect the following information with respect to campus crime 
statistics and campus security policies of that institution, 
and beginning September 1, 1992, and each year thereafter, 
prepare, publish, and distribute, through appropriate 
publications or mailings, to all current students and 
employees, and to any applicant for enrollment or employment 
upon request, an annual security report containing at least the 
following information with respect to the campus security 
policies and campus crime statistics of that institution:
          (A) * * *

           *       *       *       *       *       *       *

          (I) A statement of policy concerning the handling of 
        reports on missing students, including--
                  (i) the policy with respect to notification 
                of parents, guardians, and local police 
                agencies and timing of such notification; and
                  (ii) the institution's policy for 
                investigating reports on missing students and 
                for cooperating with local police agencies in 
                the investigation of a report of a missing 
                student.
          (J) A statement of policy regarding the availability 
        of information, provided by the State to the 
        institution pursuant to section 170101 of the Violent 
        Crime Control and Law Enforcement Act of 1994 (42 
        U.S.C. 14071), regarding sexually violent predators 
        required to register under such section. Such statement 
        shall include, at a minimum, the following:
                  (i) An assurance that the institution shall 
                make available to the campus community, through 
                its law enforcement unit or other office, all 
                such information concerning any person enrolled 
                or employed at the institution.
                  (ii) The means by which students and 
                employees obtain access to such information.
                  (iii) The frequency at which such information 
                is updated.
                  (iv) The type of information to be made 
                available.
          (K) A description of campus fire safety practices and 
        standards, including--
                  (i) information with respect to each campus 
                residence hall and whether or not such hall is 
                equipped with a fire sprinkler system or other 
                fire safety system;
                  (ii) statistics concerning the occurrence on 
                campus of fires and false alarms in residence 
                halls, including information on deaths, 
                injuries, and structural damage caused by such 
                occurrences, if any, during the 2 preceding 
                calendar years for which such data are 
                available; and
                  (iii) information regarding fire alarms, 
                smoke alarms, fire escape planning or protocols 
                (as defined in local fire codes), rules on 
                portable electrical appliances, smoking and 
                open flames, regular mandatory supervised fire 
                drills, and any planned improvements in fire 
                safety.

           *       *       *       *       *       *       *

  (3) Each institution participating in any program under this 
title shall make timely reports to the campus community on 
crimes considered to be a threat to other students and 
employees described in paragraph (1)(F) that are reported to 
campus security or local law police agencies. In addition, each 
such institution shall make periodic reports to the campus 
community regarding fires and false fire alarms that are 
reported to a local fire department. Such reports shall be 
provided to students and employees in a manner that is timely 
and that will aid in the prevention of similar occurrences.

           *       *       *       *       *       *       *

  (5) On an annual basis, each institution participating in any 
program under this title shall submit to the Secretary a copy 
of the statistics required to be made available under 
[paragraph (1)(F)] subparagraphs (F) and (J) of paragraph (1). 
The Secretary shall--
          (A) * * *
          (B) make copies of the statistics submitted to the 
        Secretary available to the public; [and]
          (C) in coordination with representatives of 
        institutions of higher [education, identify exemplary 
        campus security policies, procedures, and practices and 
        disseminate information concerning those policies, 
        procedures, and practices that have proven effective in 
        the reduction of campus crime.] education, identify--
                  (i) exemplary campus security policies, 
                procedures, and practices and disseminate 
                information concerning those policies, 
                procedures, and practices that have proven 
                effective in the reduction of campus crime; and
                  (ii) fire safety policies, procedures, and 
                practices and disseminate information 
                concerning those policies procedures and 
                practices that have proven effective in the 
                reduction of fires on campus; and
          (D) not later than July 1, 2002, prepare and submit a 
        report to Congress containing--
                  (i) an analysis of the current status of fire 
                safety systems in college and university 
                facilities, including sprinkler systems;
                  (ii) an analysis of the appropriate fire 
                safety standards to apply to these facilities, 
                which the Secretary shall prepare after 
                consultation with such fire safety experts, 
                representatives of institutions of higher 
                education, and Federal agencies as the 
                Secretary, in the Secretary's discretion, 
                considers appropriate;
                  (iii) an estimate of the cost of bringing all 
                nonconforming residence halls and other campus 
                buildings into compliance with appropriate 
                building codes; and
                  (iv) recommendations concerning the best 
                means of meeting fire safety standards in all 
                college facilities, including recommendations 
                for methods of funding such costs.

           *       *       *       *       *       *       *

  (h) New or Revised Requirements.--For any new requirement for 
institutional disclosure or reporting under this Act enacted 
after April 1, 2000, the period for which data must be 
collected shall begin no sooner than 180 days after the 
publication of final regulations or guidance. The final 
regulations or guidance shall include any required data 
elements or method of collection (or both). The Secretary shall 
take reasonable and appropriate steps to ensure that 
institutions have adequate time to collect and prepare the 
required data before public disclosure or submission to the 
Secretary.

           *       *       *       *       *       *       *


SEC. 485B. NATIONAL STUDENT LOAN DATA SYSTEM.

  (a) Development of the System.--The Secretary shall consult 
with a representative group of guaranty agencies, eligible 
lenders, and eligible institutions to develop a mutually 
agreeable proposal for the establishment of a National Student 
Loan Data System containing information regarding loans made, 
insured, or guaranteed under part B and loans made under parts 
D and E, and for allowing the electronic exchange of data 
between program participants and the system. In establishing 
such data system, the Secretary shall place a priority on 
providing for the monitoring of enrollment, student status, 
information about current loan holders and servicers, and 
internship and residency information. Such data system shall 
also permit borrowers to use the system to identify the current 
loan holders and servicers of such borrower's loan not later 
than one year after the date of enactment of the Higher 
Education Amendments of 1998. The information in the data 
system shall include (but is not limited to)--
          (1) the amount and type of each such loan made;
          (2) the names and social security numbers of the 
        borrowers;
          (3) the guaranty agency responsible for the guarantee 
        of the loan;
          (4) the institution of higher education or 
        organization responsible for loans made under parts D 
        and E;
          (5) the exact amount of loans partially or totally 
        canceled or in deferment for service under the Peace 
        Corps Act [(22 U.S.C. 2501 et seq.)),] (22 U.S.C. 2501 
        et seq.), for service under the Domestic Volunteer 
        Service Act of 1973 (42 U.S.C. 4951 et seq.), and for 
        comparable full-time service as a volunteer for a tax-
        exempt organization of demonstrated effectiveness[.];
          [(5)] (6) the eligible institution in which the 
        student was enrolled or accepted for enrollment at the 
        time the loan was made, and any additional institutions 
        attended by the borrower;
          [(6)] (7) the total amount of loans made to any 
        borrower and the remaining balance of the loans;
          [(7)] (8) the lender, holder, and servicer of such 
        loans;
          [(8)] (9) information concerning the date of any 
        default on the loan and the collection of the loan, 
        including any information concerning the repayment 
        status of any defaulted loan on which the Secretary has 
        made a payment pursuant to section 430(a) or the 
        guaranty agency has made a payment to the previous 
        holder of the loan;
          [(9)] (10) information regarding any deferments or 
        forbearance granted on such loans; and
          [(10)] (11) the date of cancellation of the note upon 
        completion of repayment by the borrower of the loan or 
        payment by the Secretary pursuant to section 437.

           *       *       *       *       *       *       *


SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.

  (a) Required for Programs of Assistance; Contents.--In order 
to be an eligible institution for the purposes of any program 
authorized under this title, an institution must be an 
institution of higher education or an eligible institution (as 
that term is defined for the purpose of that program) and 
shall, except with respect to a program under subpart 4 of part 
A, enter into a program participation agreement with the 
Secretary. The agreement shall condition the initial and 
continuing eligibility of an institution to participate in a 
program upon compliance with the following requirements:
          (1) * * *

           *       *       *       *       *       *       *

          (22) The institution will comply with the [refund 
        policy] refund of title IV funds policy established 
        pursuant to section 484B.

           *       *       *       *       *       *       *


SEC. 491. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Membership.--(1) * * *

           *       *       *       *       *       *       *

  (3) The appointment of members under subparagraphs (A) and 
(B) of paragraph (1) shall be effective upon publication of the 
appointment in the Congressional Record.

           *       *       *       *       *       *       *


                       PART H--PROGRAM INTEGRITY

           *       *       *       *       *       *       *


          Subpart 3--Eligibility and Certification Procedures

SEC. 498. ELIGIBILITY AND CERTIFICATION PROCEDURES.

  (a) * * *
  (b) Single Application Form.--The Secretary shall prepare and 
prescribe a single application form which--
          (1) * * *

           *       *       *       *       *       *       *

          (5) provides, at the option of the [institution,] 
        institution (but subject to the requirements of section 
        484(b)), for participation in one or more of the 
        programs under part B or D.
  (c) Financial Responsibility Standards.--(1) * * *
  (2) Notwithstanding paragraph (1), if an institution fails to 
meet criteria prescribed by the Secretary regarding ratios that 
demonstrate financial responsibility, then the institution 
shall provide the Secretary with satisfactory evidence of its 
financial responsibility in accordance with paragraph (3). Such 
criteria shall take into account any differences in generally 
accepted accounting principles, and the financial statements 
required thereunder, that are applicable to [for profit] for-
profit, public, and nonprofit institutions. The Secretary shall 
take into account an institution's total financial 
circumstances in making a determination of its ability to meet 
the standards herein required.

           *       *       *       *       *       *       *

  (d) Administrative Capacity Standard.--The Secretary is 
authorized--
          (1) to establish procedures and requirements relating 
        to the administrative capacities of institutions of 
        higher education, including--
                  (A) * * *
                  (B) maintenance of records; and

           *       *       *       *       *       *       *


                    TITLE V--DEVELOPING INSTITUTIONS

                 PART A--HISPANIC-SERVING INSTITUTIONS

           *       *       *       *       *       *       *


SEC. 504. DURATION OF GRANT.

  (a) Award Period.--
          [(1) In general.--]The Secretary may award a grant to 
        a Hispanic-serving institution under this title for 5 
        years.
          [(2) Waitout period.--A Hispanic-serving institution 
        shall not be eligible to secure a subsequent 5-year 
        grant award under this title until 2 years have elapsed 
        since the expiration of the institution's most recent 
        5-year grant award under this title, except that for 
        the purpose of this subsection a grant under section 
        514(a) shall not be considered a grant under this 
        title.]

           *       *       *       *       *       *       *


               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

           PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES

           *       *       *       *       *       *       *


SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE 
                    PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Funding Support.--The Secretary may use not more than 10 
percent of the total amount appropriated for [this part] this 
title for carrying out the purposes of this section.

           *       *       *       *       *       *       *


                  PART A--GRADUATE EDUCATION PROGRAMS

             Subpart 1--Jacob K. Javits Fellowship Program

SEC. 701. AWARD OF JACOB K. JAVITS FELLOWSHIPS.

  (a) Authority and Timing of Awards.--The Secretary is 
authorized to award fellowships in accordance with the 
provisions of this subpart for graduate study in the arts, 
humanities, and social sciences by students of superior ability 
selected on the basis of demonstrated achievement, financial 
need, and exceptional promise. The fellowships shall be awarded 
to students who are eligible to receive any grant, loan, or 
work assistance pursuant to section 484 and intend to pursue a 
doctoral degree, except that fellowships may be granted to 
students pursuing a master's degree in those fields in which 
the master's degree is the terminal highest degree awarded in 
the area of study. [All funds appropriated in a fiscal year 
shall be obligated and expended to the students for fellowships 
for use in the academic year beginning after July 1 of the 
fiscal year following the fiscal year for which the funds were 
appropriated.] Funds appropriated for a fiscal year shall be 
obligated and expended for fellowships under this subpart for 
use in the academic year beginning after July 1 of such fiscal 
year. The fellowships shall be awarded for only 1 academic year 
of study and shall be renewable for a period not to exceed 4 
years of study.

           *       *       *       *       *       *       *


Subpart 2--Graduate Assistance in Areas of National Need

           *       *       *       *       *       *       *


SEC. 714. AWARDS TO GRADUATE STUDENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Treatment of Institutional Payments.--An institution of 
higher education that makes institutional payments for tuition 
and fees on behalf of individuals supported by fellowships 
under this subpart in amounts that exceed the institutional 
payments made by the Secretary pursuant to [section 716(a)] 
section 715(a) may count such excess toward the amounts the 
institution is required to provide pursuant to [section 
714(b)(2)] section 713(b)(2).

           *       *       *       *       *       *       *

                              ----------                              


         SECTION 857 OF THE HIGHER EDUCATION AMENDMENTS OF 1998


SEC. 857. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated 
$450,000 for fiscal year [1999] 2001 to the Commission to carry 
out this part.

           *       *       *       *       *       *       *


       ADDITIONAL VIEWS OF CONGRESSMAN ROBERT C. ``BOBBY'' SCOTT

    While overall H.R. 4504, the Higher Education Technical 
Amendments Act, makes positive technical changes to the Higher 
Education Act, I continue to oppose Section 484(r) of current 
law and the modifications made to that section by provisions in 
H.R. 4504. Section 484(r) prohibits students convicted of drug 
crimes from receiving federal financial aid. The modification 
to Section 484(r) contained in H.R. 4504 restricts the 
application of the section to offenses occurring while the 
student is enrolled in college. Additionally, H.R. 4504 would 
deny federal student financial assistance to students who 
choose not to report a previous drug conviction on the FAFSA. 
This provision is poorly conceived and could have the 
unfortunate result of denying students access to a higher 
education. The amendment I offered would have repealed Section 
484(r) of current law and removed the language in the bill 
related to this issue.
    There has been no evidence presented that Section 484(r) of 
current law actually reduces drug use among students. Indeed, 
one risk factor of drug use is the lack of appreciation by 
youth of the effect of their present conduct on their future. 
In fact, those very students at highest risk of drug use are 
the last to consider the future intricacies of college 
admissions and financial aid. We do know, however, that for 
those with drug convictions, the factors which will increase 
the likelihood that they will end their involvement with drugs 
include access to positive opportunities, such as a college 
education.
    As there is no evidence that Section 484(r) will aid in 
reducing drug use by college students, attention should be 
directed to the unfairness of its application and effect. 
Because this provision concerns financial aid eligibility, 
students fortunate to be wealthy enough to attend college 
without federal financial assistance are not affected. As a 
result, this poorly conceived provision only affects low-income 
students for whom the denial of financial aid effectively 
denies them access to college.
    Furthermore, these provisions penalize those who have been 
convicted of drug use, not those who actually use drugs. 
African American youth represent approximately 13% of the 
population and, according to studies, also represent 13% of 
drug users. However, because of racial disparities in the 
criminal justice system, such as racial profiling by law 
enforcement, African Americans now comprise 55% of those 
convicted of drug crimes. Section 484(r) only magnifies the 
impact of these disparities.
    The Committee should be similarly concerned that drug 
offenses are the only category of criminal activity that result 
in the loss of eligibility for federal financial aid. This 
penalty is not assessed for students who are convicted of 
driving under the influence, murder, rape, or other serious 
crimes.
    The addition of a new requirement mandating financial aid 
applicants to self-report drug convictions at the risk of 
losing federal assistance also raises questions. This provision 
requires students who have had drug convictions in the past to 
reveal information that has no bearing on their income status. 
Students who committed drug offenses as juveniles may have had 
this information expunged from their record or sealed from the 
public. Indeed, students may even be afraid to apply for 
college if they feel that this information will influence 
decisions made by admissions or financial aid officers.
    Student government associations, civil rights groups, and 
criminologists from across the country have joined together to 
express their opposition to Section 484(r) of current law, as 
well as their opposition to the related provisions contained in 
H.R. 4504. The Scott Amendment, which would have reversed these 
harmful provisions, should have been supported by the 
Committee.

                                                       Bobby Scott.

                      DISSENTING VIEWS OF RON PAUL

    H.R. 4504, like many things in Washington, is misnamed 
since this bill does more than make ``technical corrections'' 
to the Higher Education Act, it forces new mandates on the vast 
majority of colleges and universities who accept federal 
funding. In particular, this bill requires colleges to make 
public their policies for handling reports of missing students 
as well as their policies for cooperating with local police in 
investigations of missing students. Of course, all colleges and 
universities should make this type of information available to 
students and parents. However, the Federal Government has no 
authority to mandate that colleges provide this type of 
information, nor does the Federal Government have any authority 
to interfere with any other aspect of the relationship between 
an institution of higher education and its students.
    The proliferation of federal regulations imposed on 
colleges who meekly obey for fear of losing federal funds show 
just how prescient were those who warned that federal funding 
of higher education would inevitably lead to federal control. 
It is an unconstitutional abuse of power for the federal 
government to levy exorbitant taxes on the American people and 
then force the people to obey federal dictates as the price of 
receiving some of their tax money back for higher education 
programs. Instead of extending federal control of education, my 
colleagues should be putting control over higher education 
resources in the hands of the American people by supporting 
legislation such as H.R. 2750, the Make College Affordable Act. 
This bill makes college tuition tax deductible for millions of 
working and middle-class Americans. Reducing taxes so the 
American people can devote more of their resources to ensure 
their children can receive a quality college education is a far 
more effective (and a constitutional) way of helping people get 
access to college than expanding bureaucratic federal programs.
    Since H.R. 4504 expands the Federal Government's 
unconstitutional control of higher education I must oppose it. 
I urge my colleagues to also oppose further federal control of 
higher education and instead return control over higher 
education to the American people through large education-
related tax cuts and tax credits.

                                                          Ron Paul.

                                  
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