[Journal of the House of Representatives, 1992]
[Thursday, March 26, 1992 (35), Para 35.17 Roll No. 61]
[Pages 438-526]
[From the U.S. Government Publishing Office, www.gpo.gov]
Para. 35.17 [Roll No. 61]
AYES--94
Allen
Bateman
Bentley
Bereuter
Broomfield
Camp
Campbell (CA)
Coble
Coleman (MO)
Combest
Cox (CA)
Crane
Cunningham
DeLay
Doolittle
Dreier
Duncan
Emerson
Fawell
Fields
Gallegly
Gillmor
Gingrich
Goss
Grandy
Green
Hammerschmidt
Hancock
Hastert
Hefley
Henry
Hobson
Holloway
Hopkins
Hunter
Hyde
Inhofe
Ireland
Johnson (SD)
Kolbe
Kyl
Lagomarsino
Lewis (CA)
Lightfoot
Lipinski
Livingston
Lowery (CA)
Marlenee
McCollum
McGrath
McMillan (NC)
Meyers
Michel
Molinari
Moody
Moorhead
Moran
Myers
Neal (NC)
Nichols
Oxley
Packard
Paxon
Penny
Petri
Quillen
Ramstad
Ravenel
Rhodes
Riggs
Ritter
Rogers
Rohrabacher
Ros-Lehtinen
Roth
Schiff
Schulze
Sensenbrenner
Solomon
Stearns
Stump
Sundquist
Taylor (NC)
Thomas (WY)
Upton
Vander Jagt
Vucanovich
Walker
Weber
Weldon
Wolf
Young (AK)
Zeliff
Zimmer
NOES--276
Abercrombie
Ackerman
Alexander
Allard
Anderson
Andrews (ME)
Andrews (NJ)
Andrews (TX)
Annunzio
Anthony
Applegate
Aspin
Atkins
Bacchus
Barnard
Beilenson
Bennett
Bilbray
Bilirakis
Blackwell
Boehlert
Bonior
Borski
Brewster
Brooks
Browder
Brown
Bruce
Bryant
Bustamante
Byron
Callahan
Campbell (CO)
Cardin
Carper
Carr
Chandler
Chapman
Clay
Clement
Clinger
Coleman (TX)
Collins (IL)
Collins (MI)
Condit
Conyers
Cooper
Costello
Cox (IL)
Coyne
Cramer
Darden
de la Garza
DeFazio
DeLauro
Dellums
Derrick
Dickinson
Dicks
Dingell
Dixon
Dooley
Dorgan (ND)
Downey
Durbin
Dymally
Early
Eckart
Edwards (CA)
Edwards (OK)
Edwards (TX)
Engel
English
Erdreich
Espy
Evans
Fascell
Fazio
Fish
Flake
Foglietta
Ford (MI)
Ford (TN)
Frank (MA)
Franks (CT)
Frost
Gallo
Gaydos
Gejdenson
Gekas
Gephardt
Geren
Gibbons
Gilchrest
Gilman
Glickman
Gonzalez
Goodling
Gordon
Guarini
Gunderson
Hall (OH)
Hall (TX)
Hamilton
Hansen
Harris
Hatcher
Hayes (IL)
Hayes (LA)
Hefner
Hertel
Hoagland
Hochbrueckner
Horn
Horton
Houghton
Hoyer
Hubbard
Huckaby
Hughes
Hutto
Jacobs
James
Jefferson
Johnson (TX)
Johnston
Jones (GA)
Jones (NC)
Jontz
Kanjorski
Kaptur
Kasich
Kennedy
Kildee
Kleczka
Klug
Kopetski
Kostmayer
LaFalce
Lancaster
Lantos
LaRocco
Leach
Lehman (CA)
Lent
Levin (MI)
Lewis (FL)
Lewis (GA)
Lloyd
Long
Lowey (NY)
Luken
Machtley
Manton
Markey
Martin
Matsui
Mavroules
Mazzoli
McCloskey
McCurdy
McDade
McDermott
McHugh
McMillen (MD)
McNulty
Mfume
Miller (CA)
Miller (OH)
Mineta
Mink
Moakley
Mollohan
Montgomery
Morella
Murphy
Murtha
Nagle
Natcher
Neal (MA)
Nowak
Nussle
Oakar
Oberstar
Obey
Olver
Ortiz
Orton
Owens (NY)
Owens (UT)
Pallone
Panetta
Parker
Patterson
Payne (NJ)
Payne (VA)
Pease
Pelosi
Perkins
Peterson (MN)
Pickett
Pickle
Porter
Poshard
Price
Rahall
Rangel
Ray
Reed
Regula
Richardson
Rinaldo
Roe
Roemer
Rose
Rostenkowski
Roukema
Rowland
Roybal
Sabo
Sanders
Sangmeister
Sarpalius
Savage
Sawyer
Saxton
Schaefer
Scheuer
Schroeder
Schumer
Serrano
Sharp
Shaw
Shays
Shuster
Sikorski
Skaggs
Skeen
Skelton
Slattery
Smith (FL)
Smith (IA)
Smith (OR)
Snowe
Solarz
Spence
Spratt
Staggers
Stallings
Stokes
Studds
Swett
Swift
Tallon
Tanner
Tauzin
Taylor (MS)
Thornton
Torres
Towns
Traficant
Unsoeld
Valentine
Vento
Visclosky
Volkmer
Walsh
Washington
Waters
Weiss
Wheat
Williams
Wise
Wyden
Wylie
Yates
NOT VOTING--64
Archer
Armey
AuCoin
Baker
Ballenger
Barrett
Barton
Berman
Bevill
Bliley
Boehner
Boucher
Boxer
Bunning
Burton
Coughlin
Dannemeyer
Davis
Donnelly
Dornan (CA)
Dwyer
Ewing
Feighan
Gradison
Herger
Jenkins
Johnson (CT)
Kennelly
Kolter
Laughlin
Lehman (FL)
Levine (CA)
Martinez
McCandless
McCrery
McEwen
Miller (WA)
Morrison
Mrazek
Olin
Pastor
Peterson (FL)
Pursell
Ridge
Roberts
Russo
Santorum
Sisisky
Slaughter
Smith (NJ)
Smith (TX)
Stark
Stenholm
Synar
Thomas (CA)
Thomas (GA)
Torricelli
Traxler
Waxman
Whitten
Wilson
Wolpe
Yatron
Young (FL)
So the amendment was not agreed to.
The SPEAKER resumed the Chair.
When Mr. PEASE, Chairman, pursuant to House Resolution 403, reported
the bill back to the House with an amendment adopted by the Committee.
The previous question having been ordered by said resolution.
The following amendment, reported from the Committee of the Whole
House on the state of the Union, was agreed to:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Higher
Education Amendments of 1992''.
(b) References.--References in this Act to ``the Act'' are
references to the Higher Education Act of 1965.
(c) Table of Contents.--
Sec. 1. Short title; references; table of contents.
Sec. 2. General effective date.
TITLE I--PARTNERSHIPS FOR EDUCATIONAL EXCELLENCE
Sec. 101. Revision of Title I.
``TITLE I--PARTNERSHIPS FOR EDUCATIONAL EXCELLENCE
``Sec. 100. Authorization of appropriations.
``Part A--Urban Community Service
``Sec. 101. Statement of purpose.
``Sec. 102. Application for urban community service grants.
``Sec. 103. Allowable activities.
``Part B--Urban and Rural College, University, and School Partnerships
``Sec. 121. Purpose.
``Sec. 122. Agreement.
``Sec. 123. Grants.
``Sec. 124. Grant application.
``Part C--Administrative Provisions for Parts A and B
``Sec. 131. Peer review.
``Sec. 132. Disbursement of funds.
``Sec. 133. National network.
``Sec. 134. Definitions.
``Part D--Articulation Agreements
``Sec. 141. Findings.
``Sec. 142. Purpose.
``Sec. 143. Authorization of grants.
``Sec. 144. State application.
``Sec. 145. Local applications.
``Sec. 146. Articulation agreement.
``Sec. 147. State administration.
``Sec. 148. Priority.
``Sec. 149. Reports.
``Part E--Access and Equity to Education for All Americans Through
Telecommunications
``Sec. 171. Establishment of program.
TITLE II--ACADEMIC LIBRARY AND INFORMATION TECHNOLOGY ENHANCEMENT
Sec. 201. Revision of title II.
``TITLE II--ACADEMIC LIBRARIES IN AN ELECTRONIC NETWORKED ENVIRONMENT
``Sec. 201. Purpose; authorization.
``Sec. 202. Notification of State agency.
``Sec. 203. Administration.
``Part A--College Library Technology and Cooperation Grants
``Sec. 211. Grants for technology, networking, and other purposes.
``Part B--Library Education, Research, and Development
``Sec. 221. Grants authorized.
``Sec. 222. Library education and human resource development.
``Sec. 223. Research and demonstration.
``Sec. 224. Consultation requirements.
``Part C--Improving Access to Research Library Resources
``Sec. 231. Research library resources.
``Sec. 232. Geographical distribution of grants.
``Part D--Strengthening Library and Information Science Programs and
Libraries in Historically Black Colleges and Universities
``Sec. 241. Strengthening library and information science programs and
libraries in Historically Black Colleges and
Universities.
``Part E--Funding Prohibition
``Sec. 251. Funding prohibition.
TITLE III--INSTITUTIONAL AID
Sec. 301. Findings.
Sec. 302. Amendments to part A.
Sec. 303. Amendments to part B.
Sec. 304. Amendments to part C.
Sec. 305. Amendments to part D.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
subpart 1--federal pell grants
Sec. 411. Federal Pell Grant program.
Sec. 412. Unification of needs analysis systems.
subpart 2--federal supplemental educational opportunity grants
Sec. 413. Amendments to subpart 2 of part A.
subpart 3--state student incentive grants
Sec. 415. Amendments to subpart 3 of part A.
[[Page 429]]
subpart 4--federal early outreach and student services programs
Sec. 417. Establishment of new subpart.
``subpart 1--federal early outreach and student services programs
``Sec. 401. Findings.
``CHAPTER 1--TRIO PROGRAMS
``Sec. 401A. Program authority; authorization of appropriations.
``Sec. 401B. Talent search.
``Sec. 401C. Upward Bound.
``Sec. 401D. Student support services.
``Sec. 401E. Postbaccalaureate achievement program authority.
``Sec. 401F. Educational opportunity centers.
``Sec. 401G. Staff development activities.
``Sec. 401H. Outreach grants.
``Sec. 401I. Evaluation for project improvement.
``CHAPTER 2--NATIONAL LIBERTY SCHOLARSHIPS AND PARTNERSHIPS PROGRAMS
``Sec. 403A. Programs authorized.
``Sec. 403B. State eligibility; State plan.
``Sec. 403C. Financial aid program.
``Sec. 403D. Partnership program.
``Sec. 403E. Payment requirements.
``Sec. 403F. Allotment.
``Sec. 403G. Definitions.
``Sec. 403H. Appropriations.
``CHAPTER 3--MODEL PROGRAM COMMUNITY PARTNERSHIP COUNSELING GRANTS
``Sec. 404A. Model program grants.
``Sec. 404B. Diffusion network activities.
``Sec. 404C. Authorization of appropriations.
``CHAPTER 4--CONGRESSIONAL HONORS AWARDS
``Sec. 405A. Scholarships authorized.
``Sec. 405B. Eligibility of scholars.
``Sec. 405C. Eligible early intervention programs.
``Sec. 405D. Scholarship amount.
``Sec. 405E. Award procedures.
``CHAPTER 5--TECHNICAL ASSISTANCE FOR TEACHERS AND COUNSELORS
``Sec. 406A. Technical assistance grants.
``CHAPTER 6--NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM
``Sec. 407A. National student savings demonstration program.
``CHAPTER 7--PUBLIC INFORMATION
``Sec. 408A. Database and information line.
``Sec. 408B. Public advertising.
``Sec. 408C. Database and information line.
``CHAPTER 8--PRESIDENTIAL ACHIEVEMENT SCHOLARSHIP PROGRAM
``Sec. 409A. Purpose; appropriations authorized.
``Sec. 409B. Scholarships authorized.
``Sec. 409C. Eligibility of scholars.
``Sec. 409D. Award procedures.
``Sec. 409E. Scholarship amount.
``CHAPTER 9--ADVANCED PLACEMENT FEE PAYMENT PROGRAM
``Sec. 410A. Advanced placement fee payment program.
subpart 5--amendments to subparts 5 through 8 of part a
Sec. 418. HEP/CAMP.
Sec. 419. Byrd Honors Scholarship Program.
Sec. 420. Repeal of assistance to institutions of higher education.
Sec. 420A. Child care services.
Part B--Federal Family Education Loans
Sec. 421. Name of programs.
Sec. 422. Guarantee authority contingent on timely rulemaking.
Sec. 423. Guaranty agency funding.
Sec. 424. Graduated repayment.
Sec. 425. Study abroad.
Sec. 426. Applicable interest rates.
Sec. 427. Amendments to section 428.
Sec. 428. Supplemental loan program.
Sec. 429. Plus loans.
Sec. 430. Consolidation loans.
Sec. 430A. Default reduction programs.
Sec. 431. Disbursement rules.
Sec. 432. Unsubsidized loans; extended collection demonstration
program.
Sec. 433. Administrative provisions.
Sec. 434. Student loan information.
Sec. 435. Definitions.
Sec. 436. Repayments by Secretary.
Sec. 436A. Debt management options.
Sec. 437. Special rule; elimination of discounting.
Sec. 438. Student Loan Marketing Association facility financing.
Sec. 439. Student Loan Marketing Association financial safety and
soundness.
Part C--Federal Work-Study Programs
Sec. 441. Amendments to part C of title IV.
Part D--Federal Direct Loans
Sec. 451. Establishment of Federal direct loan program.
``Part D--Federal Direct Loan Demonstration Program
``Sec. 451. Program and payment authority.
``Sec. 452. Payment rules.
``Sec. 453. Selection by the Secretary.
``Sec. 454. Agreement required.
``Sec. 455. Withdrawal and termination procedures.
``Sec. 456. Terms and conditions.
``Sec. 457. Loan collection functions under competitive procurement
contracts.
``Sec. 458. Reports.
``Sec. 459. Schedule of regulatory activities by the Secretary.
``Sec. 459A. Authorization of appropriations.''.
Sec. 452. Administrative expenses.
Part E--Federal Perkins Loans
Sec. 461. Amendments to part E of title IV.
Part F--Need Analysis
Sec. 471. Revision of part F.
``Part F--Need Analysis
``Sec. 471. Amount of need.
``Sec. 472. Cost of attendance.
``Sec. 473. Family contribution.
``Sec. 474. Data elements used in determining expected family
contribution.
``Sec. 475. Family contribution for dependent students.
``Sec. 476. Family contribution for independent students without
dependent children.
``Sec. 477. Family contribution for independent students with dependent
children.
``Sec. 478. Regulations; updated tables.
``Sec. 479. Simplified needs test.
``Sec. 479A. Discretion of student financial aid administrators.
``Sec. 479B. Disregard of student aid in other Federal programs.
``Sec. 479C. Native American students.
``Sec. 480. Definitions.
Part G--General Provisions
Sec. 481. Definitions.
Sec. 482. Master calendar.
Sec. 483. Forms and regulations.
Sec. 484. Student eligibility.
Sec. 485. Statute of limitations.
Sec. 486. Information.
Sec. 487. Student loan data system.
Sec. 488. Training in financial aid and student support services.
Sec. 489. Program participation agreements.
Sec. 490. Quality assurance; identification numbers.
Sec. 491. Inter-program transfers.
Sec. 492. Administrative expenses.
Sec. 493. Criminal penalties; extent of liability.
Sec. 494. Advisory Committee on Student Financial Assistance.
Sec. 495. Performance based regulatory relief.
Sec. 496. Regional meetings and negotiated rulemaking.
Part H--Program Integrity
Sec. 497. Establishment of new part H.
``Part H--Program Integrity
``Sec. 494. State postsecondary review agency program.
``Sec. 495. State postsecondary review agency agreements.
``Sec. 496. Federal reimbursement of State postsecondary review agency
costs.
``Sec. 497. Functions of State review agencies.
Sec. 497A. Definitions.
Sec. 497B. Effective dates.
Part I--Conforming Amendments
Sec. 499. Conforming amendments.
Part J--Amendments to Related Programs
Sec. 499A. Excellence in Mathematics, Science and Engineering Education
Act of 1990.
Part K--Amendments to Related Programs
Sec. 499B. Excellence in Mathematics, Science and Engineering Education
Act of 1990.
Part L--Amendments to Related Programs
Sec. 499C. Excellence in Mathematics, Science and Engineering Education
Act of 1990.
TITLE V--EDUCATOR RECRUITMENT, RETENTION, AND DEVELOPMENT
Sec. 501. Revision of title V.
``TITLE V--EDUCATOR RECRUITMENT, RETENTION, AND DEVELOPMENT
``Sec. 501. Statement of findings and purpose.
``Sec. 502. Authorization of appropriations.
``Part A--State and Local Programs for Teacher Excellence
``Sec. 511. Authority and allocation of funds.
``Sec. 512. State application.
``Sec. 513. Local application and use of funds.
``Sec. 514. State uses of funds.
``Sec. 515. Institutions of higher education uses of funds.
``Sec. 516. Federal funds to supplement, not supplant regular
nonfederal funds.
``Sec. 517. Coordination with other programs.
``Part B--Teacher Scholarships and Fellowships
``subpart 1--paul douglas teacher corps scholarships
``Sec. 521. Purpose.
``Sec. 522. Allocation among States.
``Sec. 523. Grant applications.
``Sec. 524. Amount and duration of and relation to other assistance.
``Sec. 525. Selection of Paul Douglas Teacher Corps scholars.
``Sec. 526. Scholarship conditions.
``Sec. 527. Scholarship repayment provisions.
``Sec. 528. Exceptions to repayment provisions.
``Sec. 529. Federal administration of State programs; judicial review.
``Sec. 530. Designation of shortage areas.
[[Page 430]]
``subpart 2--christa mcauliffe fellowship program
``Sec. 531. Declaration of purpose; designation.
``Sec. 532. Use of funds for fellowships and administration.
``Sec. 533. Christa McAuliffe fellowships.
``Sec. 534. Selection of Christa McAuliffe teacher fellowships.
``Sec. 535. Evaluation of applications.
``Sec. 536. Fellowship repayment provisions.
``Sec. 537. Information dissemination.
``Part C--National Programs
``subpart 1--national mini corps program
``Sec. 541. National Mini Corps.
``subpart 2--national teacher board
``Sec. 546. National Board for Professional Teaching Standards.
``subpart 3--partnerships for innovative teacher education
``Sec. 551. Findings.
``Sec. 552. Purpose.
``Sec. 553. Program authority.
``Sec. 554. Applications.
``Sec. 555. Uses of funds.
``Sec. 556. Reservation of funds; cost sharing.
``Sec. 557. Definitions.
``subpart 4--teacher opportunity corps
``Sec. 561. Purpose.
``Sec. 562. Definitions.
``Sec. 563. Allocation among States.
``Sec. 564. Agreements.
``Sec. 565. State grant applications.
``Sec. 566. General criteria for State grants.
``subpart 5--national job bank for teacher recruitment
``Sec. 571. Study.
``Sec. 572. National Teacher Job Bank demonstration.
``Sec. 573. Use of funds.
``Sec. 574. Definition.
``subpart 6--midcareer teacher training for nontraditional students
``Sec. 581. Statement of purpose.
``Sec. 582. Selection of procedures.
``Sec. 583. Applications.
``Sec. 584. Amount of grants.
``Sec. 585. Reports and information.
``subpart 7--alternative routes to teacher certification and licensure
``Sec. 586. Short title.
``Sec. 587. Findings.
``Sec. 588. Purpose.
``Sec. 589. Allotments.
``Sec. 590. State applications.
``Sec. 591. Use of funds.
``Sec. 592. Coordination requirement.
``Sec. 593. Definition.
``subpart 8--training for teachers of drug-exposed children
``Sec. 594. Program authorized.
``subpart 9--teacher recruitment and placement
``Sec. 594A. Program authorized.
``Sec. 594B. Use of funds.
``Sec. 594C. Application.
``Sec. 594D. Federal share.
``subpart 10--partnerships for encouraging minority students to become
teachers
``Sec. 595A. Program authorized.
``Sec. 595B. Partnership agreement.
``Sec. 595C. Application.
``Subpart 11--Veterans Teacher Corps
``Sec. 596A. Statement of purpose.
``Sec. 596B. Veterans teacher corps authorized.
``Sec. 596C. Applications.
``Sec. 596D. Limitations on amount and duration of assistance.
``Sec. 596E. Priority in awards.
``Sec. 596F. Reports and information.
``Part D--Foreign Language Instruction
``Subpart 1--Demonstration Grants for Critical Language and Area
Studies
``Sec. 597A. Demonstration Grants for Critical Language and Area
Studies.
``Subpart 2--Development of Foreign Language and Culture Instructional
Materials
``Sec. 597B. Development of Foreign Language and Culture Instructional
Materials.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 601. Revision of title VI.
``TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
``Part A--International and Foreign Language Studies
``Sec. 601. Findings and purposes.
``Sec. 602. Graduate and undergraduate language and area centers.
``Sec. 603. Language resource centers.
``Sec. 604. Undergraduate international studies and foreign language
programs.
``Sec. 605. Intensive summer language institutes.
``Sec. 606. Research; studies; annual report.
``Sec. 607. Periodicals and other research materials published outside
the United States.
``Sec. 608. Selection of grant recipients.
``Sec. 609. Equitable distribution of funds.
``Sec. 610. Authorization of appropriations.
``Part B--Business and International Education Programs
``Sec. 611. Findings and purposes.
``Sec. 612. Centers for International Business Education.
``Sec. 613. Joint venturing agreements.
``Sec. 614. Education and training programs.
``Sec. 615. Authorization of appropriations.
``Part C--General Provisions
``Sec. 631. Definitions.
``Sec. 632. Preservation of pre-1992 programs.
``Part D--Institute for International Public Policy
``Sec. 641. Establishment.
``Sec. 642. Academic year abroad program.
``Sec. 643. Masters degree in international relations.
``Sec. 644. Internships.
``Sec. 645. Board of visitors.
``Sec. 646. Program requirements.
``Sec. 647. Gifts and donations.
``Sec. 648. Authorization.
TITLE VII--CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC
FACILITIES
Sec. 701. Purposes.
Sec. 702. Authorization of appropriations.
Sec. 703. Revision of part A.
``Part A--Grants for the Construction, Reconstruction, and Renovation
of Undergraduate Academic Facilities
``Sec. 711. Grants.
Sec. 704. Consolidation of parts C and F and elimination of part G.
``Part C--Loans for Construction, Reconstruction and Renovation of
Academic, Housing, and Other Educational Facilities
``Sec. 731. Federal assistance in the form of loans.
``Sec. 732. General provisions.
``Sec. 733. Apportionment.
``Sec. 734. Definitions.
Sec. 705. Amendment to part E.
Sec. 706. Historically Black college and university capital financing.
``Part F--Historically Black College and University Capital Financing
``Sec. 761. Findings.
``Sec. 762. Definitions.
``Sec. 763. Federal insurance for bonds.
``Sec. 764. Limitations on Federal insurance for bonds issued by the
designated bonding authority.
``Sec. 765. Authority of the Secretary.
``Sec. 766. HBCU Capital Financing Advisory Board.
``Sec. 767. Minority business enterprise utilization.
Sec. 707. Forgiveness of certain title VII loans.
Sec. 708. Repeal.
TITLE VIII--COOPERATIVE EDUCATION
Sec. 801. Authorization of appropriations; reservations.
Sec. 802. Grants for cooperative education.
TITLE IX--GRADUATE PROGRAMS
Sec. 901. Purpose; administrative provisions.
Sec. 902. Amendments to part A.
Sec. 903. Amendments to part B.
``Part B--Postbaccalaureate Opportunity and Harris Fellowship Programs
``subpart 1--postbaccalaureate opportunity fellowships
``subpart 2--patricia roberts harris graduate fellowship program
``Sec. 926. Statement of purpose; designation of awards.
``Sec. 927. Program authorized.
``Sec. 928. Award of fellowships.
Sec. 904. Amendments to part C.
Sec. 905. Amendments to part D.
Sec. 906. Amendment to part E.
Sec. 907. Amendments to part F.
Sec. 908. Addition of new part; authorization of appropriations.
``Part G--Grants to Institutions To Encourage Minorities To Enter the
Higher Education Professorate
``Sec. 971. Program authorized.
``Sec. 972. Designation of fellows.
``Sec. 973. Applications and awards.
``Sec. 974. Fellowships.
``Sec. 975. Teaching requirement.
``Sec. 976. Consequences of noncompliance.
``Sec. 977. Exceptions to repayment provisions.
``Part H--Authorization of Appropriations
``Sec. 981. Authorization of appropriations.
TITLE X--POSTSECONDARY IMPROVEMENT PROGRAM
Sec. 1001. Amendments to part A.
Sec. 1002. Amendments to part B.
Sec. 1003. Amendment to part C.
``Part C--Special Projects in Areas of National Need
Sec. 1004. Women and Minorities Science and Engineering Outreach
Demonstration Program.
``Part D--Women and Minorities Science and Engineering Outreach
Demonstration Program
``Sec. 1071. Purpose.
``Sec. 1072. Program authorized.
``Sec. 1073. Eligible institutions.
``Sec. 1074. Amount, duration, and use of funds.
``Sec. 1075. Application.
``Sec. 1076. Evaluation.
``Sec. 1077. Federal share.
``Sec. 1078. Supplement/not supplant.
``Sec. 1079. Authorization of appropriations.
TITLE XI--STUDENT COMMUNITY SERVICE
Sec. 1101. Revision of title.
[[Page 431]]
``TITLE XI--STUDENT COMMUNITY SERVICE
``Part A--Higher Education Innovative Projects for Community Service
``Sec. 1101. Higher education innovative projects for community
service.
``Part B--Student Literacy Corps and Student Mentoring Corps
``Sec. 1111. Purpose.
``Sec. 1112. Literacy corps program and mentoring corps program.
``Sec. 1113. Uses of funds.
``Sec. 1114. Applications.
``Sec. 1115. Technical assistance and coordination contract.
``Sec. 1116. Authorization of appropriations.
``Sec. 1117. Definition.
``Part C--Innovative Projects for Community Services and Student
Financial Independence
``Sec. 1121. Statement of purpose.
``Sec. 1122. Innovative projects for community services and student
financial independence.
``Sec. 1123. Authorization of appropriations.
``Part D--Community Service-Learning
``Sec. 1131. Program authority.
``Part E--Grants for Sexual Offenses Education
``Sec. 1171. Grants for campus sexual offenses education.
``Part F--Dwight D. Eisenhower Leadership Program
``Sec. 1181. Short title; establishment of program.
TITLE XII--GENERAL PROVISIONS
Sec. 1201. Definitions.
Sec. 1202. Antidiscrimination.
Sec. 1203. The National Advisory Committee on Accreditation and
Institutional Eligibility.
Sec. 1204. Approval of accrediting agency or association.
Sec. 1205. Disclosure of foreign gifts and foreign ownership.
Sec. 1206. Admission of minority students.
TITLE XIII--INDIAN HIGHER EDUCATION PROGRAMS
Part A--Tribally Controlled Community Colleges
Sec. 1301. Reauthorization of the Tribally Controlled Community
Colleges Act.
``Sec. 403. Authorization of appropriations.
Part B--Higher Education Tribal Grant Authorization Act
Sec. 1311. Short title.
Sec. 1312. Findings.
Sec. 1313. Program authority.
Sec. 1314. Qualification for grants to tribes.
Sec. 1315. Allocation of grant funds.
Sec. 1316. Limitations on use of funds.
Sec. 1317. Administrative provisions.
Part C--Critical Needs for Tribal Development Act
Sec. 1321. Short title.
Sec. 1322. Definitions.
Sec. 1323. Service conditions permitted.
Sec. 1324. Critical area service agreements.
Sec. 1325. General provisions.
Part D--Institute of American Indian Native Culture and Arts
Development
Sec. 1331. Institute of American Indian Native Culture and Arts
development.
``Sec. 1519. Provision of facilities.
Part E--Tribal Development Student Assistance Revolving Loan Program
Sec. 1341. Short title.
Sec. 1342. Findings; purposes.
Sec. 1343. Revolving fund.
Sec. 1344. Eligible recipients.
Sec. 1345. Terms of loans.
Sec. 1346. Service fulfillment and conditions; repayments; waivers.
Sec. 1347. Administration.
Sec. 1348. Authorization of appropriations.
TITLE XIV--MISCELLANEOUS
Part A--Studies
Sec. 1401. Data on nontraditional students.
Sec. 1402. Study of Federal benefit coordination.
Sec. 1403. National survey of factors associated with participation.
Sec. 1404. Evaluation of assistance guaranty programs.
Sec. 1405. Information on graduate education.
Sec. 1406. Study of the Center for International Education's staffing
requirements.
Sec. 1407. Study of environmental hazards in institutions of higher
education.
Sec. 1408. Study of civilian education training programs.
Sec. 1409. Amendments to General Education Provisions Act.
Sec. 1410. Training and technical assistance for school-based
decisionmakers demonstration program.
Sec. 1411. Report on the use of Pell Grants by prisoners.
Part B--National Clearinghouse for Postsecondary Education Materials
Sec. 1421. National Clearinghouse for Postsecondary Education
Materials.
Part C--National Center for the Workplace
Sec. 1431. Purpose; designation.
Sec. 1432. Establishment.
Sec. 1433. Use of funds.
Sec. 1434. Board of advisors.
Sec. 1435. Gifts and donations.
Sec. 1436. Authorization.
TITLE XV--BUY AMERICA
Sec. 1501. Sense of Congress.
Sec. 1502. Notice.
SEC. 2. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this Act, the amendments
made by this Act shall take effect on October 1, 1992.
TITLE I--PARTNERSHIPS FOR EDUCATIONAL EXCELLENCE
SEC. 101. REVISION OF TITLE I.
Title I of the Act is amended to read as follows:
``TITLE I--PARTNERSHIPS FOR EDUCATIONAL EXCELLENCE
``SEC. 100. AUTHORIZATION OF APPROPRIATIONS.
``(a) Urban Community Service.--There are authorized to be
appropriated to carry out part A of this title, $25,000,000
for fiscal year 1993, and such sums as may be necessary for
the 4 succeeding fiscal years.
``(b) Urban and Rural College, University, and School
Partnerships.--There are authorized to be appropriated to
carry out part B of this title, $25,000,000 for fiscal year
1993, and such sums as may be necessary for the 4 succeeding
fiscal years.
``(c) Articulation Agreements.--There are authorized to be
appropriated to carry out part D of this title, $50,000,000
for fiscal year 1993, and such sums as may be necessary for
the 4 succeeding fiscal years.
``(d) Access and Equity to Education for All Americans
Through Telecommunications.--There are authorized to be
appropriated to carry out part E of this title, for fiscal
year 1993 $10,000,000 and such sums as may be necessary for
the 4 succeeding fiscal years.
``PART A--URBAN COMMUNITY SERVICE
``SEC. 101. STATEMENT OF PURPOSE.
``It is the purpose of this part to provide incentives to
urban institutions (including academic, private, and civic
bodies) to work together to devise and implement solutions to
the most pressing and severe problems in their communities.
``SEC. 102. APPLICATION FOR URBAN COMMUNITY SERVICE GRANTS.
``(a) Application and Plan.--Any institution seeking
assistance under this part shall submit to the Secretary an
application at such time, in such form, and containing or
accompanied by such information and assurances as the
Secretary may require by regulation. Such application shall
contain a plan agreed to by the members of a consortium that
includes (1) a public or private 4 year institution (and,
where possible and appropriate, a community college) in
partnership with (2) an urban school system, a local
government, a private business, or a nonprofit institution.
The Secretary may waive this consortium requirement for those
applicants who can demonstrate that they have devised an
integrated and coordinated plan which meets the purpose of
this part.
``(b) Priority in Selection of Applications.--The Secretary
shall give priority to those applications that--
``(1) include plans agreed to by a consortium composed of
several members from the categories described in subsection
(a); and
``(2) propose to conduct joint projects supported by other
local, State, and Federal programs.
``(c) Selection Procedures.--The Secretary shall, by
regulation, develop a formal procedure for the submission of
applications and publish in the Federal Register an
announcement with respect to that procedure and the
availability of funds.
``SEC. 103. ALLOWABLE ACTIVITIES.
``(a) In General.--Funds made available under this part
shall be used to support planning, applied research,
training, resource exchanges or technology transfers, the
delivery of services, or other activities the purpose of
which is to design and implement programs to assist urban
communities to meet and address their most pressing problems.
``(b) Authorized Activities.--Activities conducted with
funds made available under this part may include research on
resource exchanges, technology transfer, technical training,
the delivery of services, and technical assistance in the
following areas--
``(1) urban poverty and its alleviation;
``(2) health care, including its delivery and access;
``(3) under-performing school systems and students;
``(4) problems faced by the elderly in urban settings;
``(5) crime: prevention and alternative interventions;
``(6) urban housing;
``(7) urban infrastructure;
``(8) economic development; and
``(9) other problem areas which participants in the
agreement required by section 102 agree are of high priority
in the urban area covered by such agreement.
``PART B--URBAN AND RURAL COLLEGE, UNIVERSITY, AND SCHOOL PARTNERSHIPS
``SEC. 121. PURPOSE.
``It is the purpose of this part to encourage partnerships
between urban or rural institutions of higher education or
consortia of such institutions and secondary schools and
school systems serving low-income and educationally
disadvantaged urban or rural students to support programs
that may assist in improving the retention and graduation
rates of such secondary schools, improve the
[[Page 432]]
academic skills of their public and private nonprofit
secondary school students, increase their opportunities to
continue their education beyond the secondary level, and to
improve their prospects for productive employment.
``SEC. 122. AGREEMENT.
``(a) Agreement.--To be eligible for a grant under this
part, an urban or rural institution of higher education or
consortium must enter into a written partnership agreement
with a local educational agency. Such partnership may include
businesses, labor organizations, professional associations,
community-based organizations or other public or private
agencies or organizations.
``(b) Contents of Agreement.--The agreement required under
this section shall include--
``(1) a listing of all participants in the partnership;
``(2) a description of the responsibilities of each
participant in the partnership; and
``(3) a listing of the resources to be contributed by each
participant.
``SEC. 123. GRANTS.
``(a) In General.--The Secretary may use funds appropriated
for this part to make grants to university-school
partnerships. The grants may be used to support partnership
activities which are directly related to the purposes set
forth in section 121.
``(b) Amount and Use of Grants.--From such funds, the
Secretary shall make grants of no less than $250,000 and no
more than $1,000,000.
``(c) Preferences.--In making grants under this part, the
Secretary shall give a preference to--
``(1) programs which will serve predominantly low-income
neighborhoods;
``(2) partnerships which will run programs during the
regular school year and during the summer;
``(3) programs which will serve educationally disadvantaged
students, potential dropouts, pregnant, adolescent and teen-
aged parents or children whose parents or parent are
migratory agriculture workers or migratory fishermen; and
``(4) programs designed to encourage women and minorities
who are underrepresented in the fields of science and
mathematics to pursue these fields.
``(d) Maintenance of Effort.--Any local educational agency
or institution of higher education participating in an
agreement under this part shall not reduce its combined
fiscal effort per student or its aggregate expenditures on
education.
``SEC. 124. GRANT APPLICATION.
``(a) Application Required.--A partnership desiring to
receive a grant under this part shall submit an application
to the Secretary, in such form and providing such information
as the Secretary, by regulation, shall require.
``(b) Contents of Application.--The application shall
include--
``(1) the partnership agreement described in section 122;
``(2) a listing of all the schools to be involved in the
program;
``(3) a description of the programs to be developed and
operated by the partnership; and
``(4) assurances to the Secretary--
``(A) that the partnership will establish a governing body
including one representative from each participant in the
partnership;
``(B) that Federal funds will provide no more than 70
percent of the cost of the project in the first year; 60
percent of such costs in the second year, and 50 percent of
such costs in the third and any subsequent year;
``(C) that any local educational agency or institution of
higher education participating in this partnership shall
utilize any Federal funds it shall receive from a grant under
this part to supplement, and, to the extent practicable,
increase the resources that would, in the absence of such
Federal funds, be made available from non-Federal sources for
the education of students described in this part; and
``(D) that in no case shall funds under such a grant be
used to supplant non-Federal funds already available.
``PART C--ADMINISTRATIVE PROVISIONS FOR PARTS A AND B
``SEC. 131. PEER REVIEW.
``The Secretary shall designate a peer review panel to
review applications submitted under parts A and B and make
recommendations for funding to the Secretary. In selecting
the peer review panel, the Secretary may consult with other
appropriate Cabinet-level officials and with non-Federal
organizations, to ensure that the panel will be
geographically balanced and be composed of representatives
from public and private institutions of higher education,
labor, business, State and local government, who have
expertise in urban community service.
``SEC. 132. DISBURSEMENT OF FUNDS.
``(a) Multiyear Availability.--Subject to the availability
of appropriations, grants under part A may be made on a
multiyear basis, except that no institution, individually or
as a participant in a combination of such institutions, may
receive a grant for more than 5 years.
``(b) Distribution Requirement.--The Secretary shall award
grants under parts A and B in such manner as to achieve
widespread and equitable utilization of the grants in all
parts of the nation.
``(c) Matching Requirement.--An applicant under part A of
this title and the local governments associated with its
application shall contribute to the conduct of the program
supported by the grant an amount from non-Federal funds equal
to at least one-fourth of the amount of the grant, which
contribution may be in cash or in services, supplies or
equipment.
``(d) Waiver of Matching Requirement.--The Secretary may
waive the requirements of subsection (c) of this section with
respect to an eligible institution that demonstrates a unique
hardship that precludes its compliance with that requirement.
``SEC. 133. NATIONAL NETWORK.
``(a) Program Authority.--The Secretary may establish a
national network among urban and rural grant institutions, so
that the results of individual projects funded under parts A
and B can be generalized, disseminated, replicated, and
applied throughout the Nation.
``(b) Funding.--From any funds appropriated for carrying
out parts A and B, the Secretary may set aside not to exceed
5 percent, or $500,000 in any fiscal year, whichever is less,
for the purposes of carrying out subsection (a) of this
section.
``SEC. 134. DEFINITIONS.
``(a) Definitions.--As used in parts A and B--
``(1) The term `eligible institution' has the meaning given
such term by the first sentence of section 1201(a) of this
Act.
``(2) The term `urban area' means a metropolitan
statistical area having a population of not less than
400,000, or two contiguous metropolitan statistical areas
having a population of not less than 400,000, or, in any
State which does not have a metropolitan statistical area
which has such a population, the entity of the State having
an agreement under section 1203, or, if no such entity has an
agreement, the Secretary, shall designate one urban area for
the purposes of this part.
``(3) The term `urban institution of higher education'
means a nonprofit municipal university, established by the
governing body of the city in which it is located, and
operating as of the date of enactment of this part under that
authority, or an institution of higher education, or a
consortium of such institutions any one of which meets all of
the requirements of this paragraph, which--
``(A) is located in an urban area,
``(B) draws a substantial portion of its undergraduate
students from the urban area in which it is located, or
contiguous areas,
``(C) carries out programs to make postsecondary
educational opportunities more accessible to residents of
such urban area, or contiguous areas,
``(D) has the present capacity to provide resources
responsive to the needs and priorities of such urban area, or
contiguous areas,
``(E) offers a range of professional, technical, or
graduate programs sufficient to sustain its capacity to
provide such resources, and
``(F) has demonstrated and sustained a sense of
responsibility to such urban area and contiguous areas and
its people.
``(b) Publication Required.--
``(1) The Secretary shall, not later than 6 months
following the enactment of this title, publish in the Federal
Register a preliminary list of all public and private
nonprofit institutions of higher education which shall meet
the qualifications prescribed in subparagraphs (A) through
(E) of subsection (a)(3).
``(2) The Secretary shall, annually, provide an opportunity
for any unlisted institution to apply to be added to this
list, and shall publish such additions in the Federal
Register.
``PART D--ARTICULATION AGREEMENTS
``SEC. 141. FINDINGS.
``The Congress finds that--
``(1) because more than one-half of all first-time first-
year students attending postsecondary institutions attend
community or junior colleges, and because almost one-half of
minority students enrolled in higher education attend 2-year
institutions, community and junior colleges represent a
substantial and an important educational resource;
``(2) declining participation rates for low-income students
and minorities at institutions of higher education is of
growing concern to the higher education community and
Congress; and
``(3) there is growing awareness of the need to assist low-
income, minority and other nontraditional students in
bridging the gap between 2-year to 4-year institutions,
enabling them to reach their individual potential, as well as
contribute to the larger society.
``SEC. 142. PURPOSE.
``The purpose of this part is to improve the educational
opportunities of this Nation's postsecondary students by
creating comprehensive articulation agreements and planning
between partnerships of 2-year and 4-year institutions of
higher education.
``SEC. 143. AUTHORIZATION OF GRANTS.
``(a) Assistance for Articulation Partnerships.--From
amounts appropriated for this part, the Secretary shall make
grants to States to enable States to make awards, either on a
competitive basis or on the basis of a formula determined by
the State, to articulation partnerships between--
``(1) a qualified 2-year institution; and
``(2) a qualified 4-year institution.
``(b) Qualified Institutions.--For purposes of subsection
(a)--
``(1) a qualified 2-year institution is an institution of
higher education (as determined under section 481(a)) that is
an eligible institution under section 435(a) and that--
``(A) is a nonprofit institution that offers a 2-year
associate degree or a 2-year certificate program; or
[[Page 433]]
``(B) is a proprietary institution that offers a 2-year
associate degree program; and
``(2) a qualified 4-year institution is an institution of
higher education (as determined under section 481(a)) that is
an eligible institution under section 435(a) and that offers
a baccalaureate degree program.
``(c) Allocation and State Grants.--
``(1) Formula allocation.--In any fiscal year for which the
amount made available under section 100 to carry out the
provisions of this part equals or exceeds $50,000,000, the
Secretary shall allot an amount that bears the same ratio to
the amount appropriated under section 100(c) for such fiscal
year as the total amount received under title IV by students
attending institutions of higher education in that State for
such fiscal year bears to the total amount received under
title IV by all students for such fiscal year, based on the
most recent year for which such data are available.
``(2) Competitive grants.--In any fiscal year for which the
amount made available under section 100 to carry out the
provisions of this part do not equal or exceed $50,000,000,
the Secretary is authorized, in accordance with the
provisions of this part, to make grants to States to carry
out articulation agreements under sections 145 and 146.
``SEC. 144. STATE APPLICATION.
``Each State that desires to receive a grant under this
part shall submit an application to the Secretary in such
form and containing or accompanied by such information as the
Secretary may require. Such application shall--
``(1) after consultation with the State agencies
responsible for supervision of community colleges, technical
institutes, or other 2-year postsecondary institutions,
designate a sole State agency as the State agency responsible
for the administration and supervision of activities carried
out with assistance under this part;
``(2) describe how funds will be allocated in a manner
consistent with section 145;
``(3) contain assurances that the State will comply with
the requirements of this part;
``(4) provide for an annual submission of data concerning
the use of funds and students served with assistance under
this part; and
``(5) provide that the State will keep such records and
provide such information to the Secretary as may be required
for purposes of financial audits and program evaluation.
``SEC. 145. LOCAL APPLICATIONS.
``Any articulation partnership comprised of qualified
institutions that desires to receive a grant from a State
under this part shall submit an application to the State in
such form and containing or accompanied by such information
as the State may require and shall--
``(1) include in the articulation agreement--
``(A) assurances that academic credit earned at the
qualified institution described in section 143(b)(1) will be
transferable to the qualified institution or institutions as
described in section 143(b)(2);
``(B) development of articulation agreement programs and
services appropriate to the needs of the partnership
participants;
``(C) activities that facilitate the development of
programs and services appropriate to the needs of the
students attending courses covered by the articulation
agreement;
``(D) inservice training for faculty designed to implement
effective articulation agreements;
``(E) counseling services; and
``(F) information concerning programs contained in the
articulation agreement;
``(2) include assurances that the articulation partnership
has the qualified personnel required--
``(A) to develop, administer, and implement the program
required by this part, and
``(B) to provide special training necessary to prepare
staff for the program; and
``(3) include a plan of operation for the program which
includes--
``(A) a description of the program goals,
``(B) a description of the uses of funds as required by
paragraph (2),
``(C) a description of the activities and services which
will be provided under the program (including training and
preparation of staff), and
``(D) a description of the subject areas to be included in
the articulation agreement.
``SEC. 146. ARTICULATION AGREEMENT.
``(a) Length of Grant.--Each recipient of a grant from a
State shall use the amounts provided under the grant to
develop and operate articulation agreements for 6 years.
``(b) Use of Funds.--Funds provided to an articulation
partnership under this part may be used--
``(1) to perform any activity or program required by
section 145;
``(2) as part of the program's planning activities, to
acquire technical assistance from Federal, State, or local
entities that have successfully designed, established, and
operated articulation programs;
``(3) to provide workshops with students and teachers,
counseling for students to continue their education to a
bachelors degree, orientation visits at institutions
participating in the consortia;
``(4) to develop agreements with local educational agencies
for vocational course equivalency approval procedures for
purposes of satisfying entrance requirements to qualified
institutions; and
``(5) to provide outreach to potential students.
``SEC. 147. STATE ADMINISTRATION.
``A State may reserve not more than 3 percent of the
amounts available under this title for any fiscal year for
State administrative costs including monitoring and technical
assistance.
``SEC. 148. PRIORITY.
``The State shall give priority to grant applications for
programs which--
``(1) encourage teacher education,
``(2) have, as one of the partners participating in an
articulation agreement, an entity that meets the requirements
of section 344(b) of the Carl D. Perkins Vocational and
Applied Technology Education Act,
``(3) contribute their own institutional resources,
``(4) are not subject to a default reduction agreement
under section 428F,
``(5) encourage technology education, or
``(6) encourage articulation in subject areas of national
importance as determined by the Secretary.
``SEC. 149. REPORTS.
``(a) State Reports.--Each State shall submit to the
Secretary an annual report on the operation of the program
under this part in such State during the preceding year. Such
report shall include such information as the Secretary may
require by regulation.
``(b) Evaluation and Dissemination.--The Secretary shall,
on the basis of the reports submitted under subsection (a),
evaluate all or a sample of the programs conducted under this
part for the purposes of (1) determining the success or
failure of such programs in increasing access and entry of
students from 2-year institutions to 4-year institutions, and
(2) identifying the most successful programs under this part
and the causes for such success. The Secretary shall, not
later than January 31, 1996, submit a report to the Congress
on the results of such evaluation. The Secretary shall
disseminate the findings made pursuant to clause (2) through
appropriate agencies and organizations. The Secretary may
reserve up to 3 percent of the amount appropriated under
section 100 to carry out this subsection.
``PART E--ACCESS AND EQUITY TO EDUCATION FOR ALL AMERICANS THROUGH
TELECOMMUNICATIONS
``SEC. 171. ESTABLISHMENT OF PROGRAM.
``(a) General Authority.--The Secretary is authorized in
accordance with provisions of this part to make grants to
eligible entities for the Federal share of the cost of
telecommunications services to promote access and equity to
education.
``(b) Eligible Applicants.--In order to be eligible for a
grant under this part eligible applicants shall consist of a
public broadcasting entity (or a consortium of such entities)
and an institution of higher education (or a consortium of
such entities) and may also include a State, a local unit of
government, or a public or private nonprofit organization.
``(c) Application.--Each eligible applicant which desires
to receive a grant under this part shall submit an
application to the Secretary at such time, in such manner and
containing or accompanied by such information as the
Secretary may reasonably require. Each such application
shall--
``(1) describe education telecommunications services to be
supported with the grant;
``(2) describe the administrative and management structure
supporting the activities funded by the grant;
``(3) provide that the applicant shall match each dollar of
funding received under this part on a one-to-one basis;
``(4) provide assurances that the financial interests of
the United States in the telecommunications equipment,
software and other facilities shall be protected for the use
of the life of such facilities;
``(5) describe the manner in which nontraditional
postsecondary education students will benefit in the services
supported;
``(6) describe the manner in which special services
including captioned films, television, descriptive video and
education media for handicapped individuals shall be
supported; and
``(7) provide evidence that each dollar received under this
part shall be matched by funds from other, non-Federal
sources.
``(d) Activities Supported.--Grants under this part shall
support one or more of the following activities--
``(1) acquisition of site equipment to provide the
technical ability to receive diverse education services at
school, campus, and work site locations;
``(2) satellite, fiberoptic and other distribution systems
and for local broadcast or other local distribution
capability;
``(3) preservice or inservice education and training for K-
12 teachers through interactive television conferencing;
``(4) preparation of telecommunications programs and
software which support national, regional, or statewide
efforts to provide teaching and learning materials not
otherwise available for local use; and
``(5) a loan service of captioned films, descriptive video
and educational media for the purpose of making such
materials available, in accordance with regulations, in the
United States for nonprofit purposes to individuals with
disabilities, parents of individuals with disabilities, and
other individuals directly involved in activities for the
advancement of individuals with disabilities, including for
the purpose of addressing problems of illiteracy among
individuals with disabilities.
``(e) Approval of Applications.--(1) The Secretary shall,
in approving applications under this part, give priority to
applications which--
[[Page 434]]
``(A) include support for services to make captioned films,
descriptive video and educational media available to
individuals with disabilities who otherwise lack access to
such educational materials;
``(B) will provide, directly or indirectly, services to a
significant number of postsecondary institutions;
``(C) improve access to creditworthy telecommunications
coursework to individuals otherwise denied such opportunity;
``(D) will be available in the multistate area;
``(E) include evidence of significant business support; or
``(F) includes matching funds, exceeding the minimum amount
required under this part.
``(2) In approving applications under this part the
Secretary shall insure equitable geographic distribution of
grant awards.
``(f) Definition.--The term `Public Broadcasting Entity'
has the same meaning given that term in section 397 of the
Communications Act of 1934.
``(g) Report.--Each recipient of a grant under this part
shall submit a report including a description of activities
supported, a description of the population served, an
assessment of the ability of private sector entities to
continue the support of the activities in the absence of
Federal funding and shall submit such reports to the
Secretary no later than 30 days after the conclusion of the
grant period. The Secretary shall select reports received
under this subsection appropriate for dissemination to the
education community and shall make such reports available
through the National Diffusion Network.''.
TITLE II--ACADEMIC LIBRARY AND INFORMATION TECHNOLOGY ENHANCEMENT
SEC. 201. REVISION OF TITLE II.
Title II of the Act is amended to read as follows:
``TITLE II--ACADEMIC LIBRARIES IN AN ELECTRONIC NETWORKED ENVIRONMENT
``SEC. 201. PURPOSE; AUTHORIZATION.
``(a) Purpose.--The Secretary shall carry out a program to
assist--
``(1) college and university libraries in acquiring
technological equipment and in conducting research in
information technology in accordance with part A;
``(2) in the education and training of persons in library
and information science and to encourage research and
development relating to improvement of libraries (including
the promotion of economical and effective information
delivery, cooperative efforts, and developmental projects) in
accordance with part B;
``(3) the Nation's major research libraries, in maintaining
and strengthening their collections, and in making
information resources available to other libraries whose
users have need for research materials in accordance with
part C; and
``(4) historically black colleges and universities with
programs in library and information sciences to train and
educate African Americans and other underrepresented racial,
national origin, and ethnic minorities in such programs in
accordance with part D.
``(b) Authorization.--(1) There are authorized to be
appropriated to carry out part A $25,000,000 for fiscal year
1993 and such sums as may be necessary for each of the 4
succeeding fiscal years.
``(2) There are authorized to be appropriated to carry out
part B $25,000,000 for fiscal year 1993 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
``(3) There are authorized to be appropriated to carry out
part C $25,000,000 for fiscal year 1993 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
``(4) There are authorized to be appropriated to carry out
part D $25,000,000 for fiscal year 1993 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
``SEC. 202. NOTIFICATION OF STATE AGENCY.
``Each institution of higher education which receives a
grant under this title shall annually inform the State agency
designated pursuant to section 1203 of its activities under
this title.
``SEC. 203. ADMINISTRATION.
``Programs under this title shall be administered in the
Department by appropriate experts in library technology,
library education, and related fields.
``PART A--COLLEGE LIBRARY TECHNOLOGY AND COOPERATION GRANTS
``SEC. 211. GRANTS FOR TECHNOLOGY, NETWORKING, AND OTHER
PURPOSES.
``(a) Authorization.--The Secretary is authorized to make
grants for technological equipment, networking, and other
special purposes to--
``(1) institutions of higher education which demonstrate a
need for special assistance for the planning, development,
acquisition, maintenance, or upgrading of technological
equipment necessary to organize, access, or utilize materials
in electronic formats and to participate in networks for the
accessing and sharing of library and information resources;
``(2) combinations of higher education institutions which
demonstrate a need for special assistance in establishing and
strengthening joint-use library facilities, resources, or
equipment for the accessing and sharing of library and
information resources;
``(3) other public and private nonprofit organizations
which provide library and information services to
institutions of higher education on a formal, cooperative
basis for the purpose of establishing, developing, or
expanding programs or projects that improve their services to
institutions of higher education; and
``(4) institutions of higher education conducting research
or demonstration projects that improve information services
to meet special national or regional needs by utilizing
technology to enhance library or information services such as
via the National Research and Education Network.
``(b) Awards Requirements.--From funds appropriated for
this part, the Secretary shall make competitive awards to
institutions or combinations of institutions in each of the
categories described in paragraphs (1) through (4) of
subsection (a). The minimum award shall be $25,000 and may be
expended over a 3-year period.
``(c) Grants Amount.--For grants under section 211(a)(1)
the maximum award per institution shall be $35,000. The
Secretary shall give priority under section 211(a)(1) to
projects which assist those developing institutions seeking
to link one or more institutions to resource sharing
networks.
``(d) Grants Criteria.--A grant under this section may be
made only if the application (whether by an individual
institution or a combination of institutions) is approved by
the Secretary on the basis of criteria prescribed in
regulations and provides satisfactory assurance that the
applicant will expend during the 3-year period for which the
grant is sought (from funds other than funds received under
this title), for the same purpose as such grant, an amount
from such other sources equal to not less than one-third of
such grant.
``PART B--LIBRARY EDUCATION, RESEARCH, AND DEVELOPMENT
``SEC. 221. GRANTS AUTHORIZED.
``From the amounts appropriated for this part for any
fiscal year, the Secretary shall make grants in accordance
with sections 222 and 223. Of such amount, two-thirds shall
be available for the purpose of section 222 and one-third
shall be available for the purpose of section 223.
``SEC. 222. LIBRARY EDUCATION AND HUMAN RESOURCE DEVELOPMENT.
``(a) Purpose and Grant Criteria.--The Secretary is
authorized to make grants to, and contract with, institutions
of higher education and library organizations or agencies to
assist them in educating and training persons in library and
information science, particularly in areas of critical needs,
such as recruitment and retention of minorities. Such grants
or contracts may be used by such institutions, library
organizations, or agencies--
``(1) to assist in covering the cost of courses of study or
staff development (including short term or regular session
institutes),
``(2) to establish and maintain fellowships or traineeships
with stipends (including allowances for travel, subsistence,
and other expenses) for fellows who demonstrate need and who
are working toward a graduate degree and their dependents,
not in excess of such maximum amounts as may be determined by
the Secretary, and
``(3) to establish, develop, or expand programs of library
and information science, including new techniques of
information transfer and communication technology.
``(b) Additional Requirements.--Not less than 50 percent of
the grants made under this section shall be for the purpose
of establishing and maintaining fellowships or traineeships
under subsection (a)(2).
``SEC. 223. RESEARCH AND DEMONSTRATION.
``The Secretary is authorized to make grants to, and
contract with, institutions of higher education and other
public and private agencies, institutions, and organizations
for research and development projects related to the
improvement of libraries, education in library and
information science, the enhancement of library services
through effective and efficient use of new technologies, and
for the dissemination of information derived from such
projects.
``SEC. 224. CONSULTATION REQUIREMENTS.
``The Secretary shall consult with the appropriate library
and information science professional bodies in the
determination of critical needs under section 222 and in the
determination of priorities under section 223.
``PART C--IMPROVING ACCESS TO RESEARCH LIBRARY RESOURCES
``SEC. 231. RESEARCH LIBRARY RESOURCES.
``(a) Purpose and Definitions.--(1) From the amount
appropriated for this part, the Secretary shall make grants
to institutions with major research libraries.
``(2) For the purposes of this part, the term `major
research library' means a public or private nonprofit
institution (including the library resources of an
institution of higher education), an independent research
library, or a State or other public library, having a library
collection which is available to qualified users and which--
``(A) makes a significant contribution to higher education
and research;
``(B) is broadly based and is recognized as having national
or international significance for scholarly research;
``(C) is of a unique nature, and contains material not
widely available; and
``(D) is in substantial demand by researchers and scholars
not connected with that institution.
[[Page 435]]
``(b) Eligibility.--In determining eligibility for
assistance under this part, the Secretary shall permit
institutions that do not otherwise qualify to provide
additional information or documents to demonstrate the
national or international significance for scholarly research
of the particular collection described in the grant proposal.
``SEC. 232. GEOGRAPHICAL DISTRIBUTION OF GRANTS.
``In making grants under this part, the Secretary shall
endeavor to achieve broad and equitable geographical
distribution throughout the Nation.
``PART D--STRENGTHENING LIBRARY AND INFORMATION SCIENCE PROGRAMS AND
LIBRARIES IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
``SEC. 241. STRENGTHENING LIBRARY AND INFORMATION SCIENCE
PROGRAMS AND LIBRARIES IN HISTORICALLY BLACK
COLLEGES AND UNIVERSITIES.
``(a) In General.--(1) The Secretary is authorized (A) to
make grants to, and contract with, historically black
colleges and universities to assist them in strengthening
their library and information science programs and library
resources, and (B) to make grants to, and contract with,
historically black colleges and universities and library
organizations or agencies which have nationally approved
programs in library and information science to assist them in
education and training of African Americans and other
underrepresented racial, national origin, and ethnic
minorities, particularly in areas of critical needs of
library and information science.
``(2) Such grants or contracts may be used by such
institutions, library organizations, or agencies--
``(A) to establish, develop, or strengthen libraries and
library and information science programs, including new
techniques of information transfer and communication
technology,
``(B) to assist in covering the cost of courses of study or
staff development (including short-term or regular session
institutes), and
``(C) to establish and maintain fellowships or traineeships
with stipends (including allowances for travel, subsistence,
and other expenses) for fellows who demonstrate need and who
are working toward a graduate degree and their dependents,
not in excess of such maximum amounts as may be determined by
the Secretary.
``(b) Traineeships.--Not less than 50 percent of the grants
made under this section shall be for the purpose of
establishing and maintaining fellowships or traineeships
under subsection (a)(2).
``PART E--FUNDING PROHIBITION
``SEC. 251. FUNDING PROHIBITION.
``Notwithstanding any other provision of law, amendments to
this title establishing new programs or expanding existing
programs, enacted pursuant to the Higher Education Amendments
of 1992, shall not be funded in fiscal year 1993, or the 4
succeeding fiscal years, unless and until Congress enacts
appropriations for programs under this title enacted prior to
such amendments at a level no less than the level of funding
in effect for such preexisting programs for fiscal year
1992.''.
TITLE III--INSTITUTIONAL AID
SEC. 301. FINDINGS.
Section 301(a)(1) of the Act is amended to read as follows:
``(1) there are a significant number of institutions of
higher education serving high percentages of minority
students and students from low-income backgrounds, that face
problems that threaten their ability to survive;''.
SEC. 302. AMENDMENTS TO PART A.
(a) Grants Awards.--Section 311(b) of the Act is amended to
read as follows:
``(b) Grants Awarded; Allowable Activities.--From the sums
available for this part under section 360(a)(1), the
Secretary may award grants to any eligible institution with
an application approved under section 351 in order to assist
such an institution to plan, develop, or implement activities
that promise to strengthen the institution, including--
``(1) faculty development;
``(2) funds and administrative management;
``(3) development and improvement of academic programs;
``(4) acquisition of equipment for use in strengthening
funds management and academic programs;
``(5) joint use of facilities such as libraries and
laboratories; and
``(6) student services.''.
(b) Eligible Institutions.--Section 312(b) of the Act is
amended--
(1) in paragraph (1)--
(A) by inserting ``and'' after the semicolon at the end of
subparagraph (D):
(B) by striking subparagraph (E);
(C) by redesignating subparagraph (F) as subparagraph (E);
and
(D) by inserting ``and'' after the semicolon at the end of
paragraph (1);
(2) by striking the semicolon at the end of paragraph (2)
and inserting a period; and
(3) by striking paragraphs (3), (4), and (5).
(c) Enrollment of Needy Students.--Section 312(c)(2) of the
Act is amended by striking ``second preceding fiscal year''
and inserting ``second fiscal year preceding the fiscal year
for which the determination is made''.
(d) Award Limitations.--Subsections (a) and (b) of section
313 of the Act are amended to read as follows:
``(a) Award Period.--The Secretary may award a grant to an
eligible institution under this part for not to exceed 5
years.
``(b) Prohibition.--An eligible institution that is awarded
a grant under subsection (a) shall not be eligible to receive
a grant under this part during the 5 years immediately
following the period that it received such a grant.''.
(e) Goals for Financial Management and Academic Program.--
Part A of title III of the Act is further amended by adding
at the end the following new section:
``goals for financial management and academic program
``Sec. 315. (a) Goals.--Any application for a grant under
this part shall describe measurable goals for the
institution's financial management and academic programs, and
include a plan of how the applicant intends to achieve those
goals.
``(b) Continuation Requirements.--Any continuation
application shall demonstrate the progress made toward
achievement of the goals described pursuant to subsection
(a).''.
SEC. 303. AMENDMENTS TO PART B.
(a) Uses of Funds.--Section 323(a) of the Act is amended by
adding at the end the following new paragraphs:
``(9) Establishing or improving a development office to
strengthen or improve contributions from alumni and the
private sector.
``(10) Establishing or enhancing a program of teacher
education designed to qualify students to teach elementary or
secondary education in public schools in the State, and which
includes as part of such program, preparation for teacher
certification.
``(11) Establishing community outreach programs which will
encourage elementary and secondary students to develop the
academic skills and the interest to pursue postsecondary
education.''.
(b) Allotment.--Section 324(c) of the Act is amended by
inserting ``, within 5 years of graduation with a
baccalaureate degree,'' after ``who are admitted to and in
attendance at''.
(c) Minimum Allotments.--Section 324(d) of the Act is
amended by striking ``$350,000'' and inserting ``$500,000''.
(d) Goals for Financial Management and Academic Programs.--
Section 325 of the Act is amended by adding at the end the
following new subsection:
``(c) Goals for Financial Management and Academic
Programs.--Any application for a grant under this part shall
describe measurable goals for the institution's financial
management and academic programs, and include a plan of how
the applicant intends to achieve those goals.''.
(e) Eligible Professional and Graduate Institutions.--
Section 326(e) of the Act is amended--
(1) by striking ``and'' at the end of paragraph (4);
(2) by striking the period at the end of paragraph (5) and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(6) Xavier University School of Pharmacy;
``(7) Southern University School of Law;
``(8) Texas Southern University School of Law or School of
Pharmacy;
``(9) Florida A&M University School of Pharmaceutical
Sciences;
``(10) North Carolina Central University School of Law;
``(11) Morgan State Graduate School;
``(12) Hampton University Graduate School;
``(13) Alabama A&M Graduate School;
``(14) North Carolina A&T State University Graduate School;
``(15) University of Maryland Eastern Shore Graduate
School; and
``(16) Jackson State Graduate School.''.
(f) Funding Rules for Graduate and Professional
Institutions.--Section 326 of the Act is further amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Funding Rule.--(1) No grant may be made in any fiscal
year beginning after September 30, 1991, for institutions
described in paragraphs (6) through (16) of subsection (f)
unless (A) funds appropriated and available for the
institutions described in paragraphs (1) through (5) of
subsection (f) exceeds the amount so appropriated and
available for fiscal year 1991; and (B) an additional amount
is appropriated and available for a grant of reasonable size
to each of the institutions described in paragraphs (6)
through (16) of subsection (f).
``(2) No grant may be made in any fiscal year beginning
after September 30, 1991, for any institution described in
paragraphs (1) through (5) of subsection (f) in excess of the
amount the institution received in fiscal year 1991, unless
an amount is appropriated and available for each of the
institutions described in paragraphs (6) through (16) of
subsection (f) which is sufficient to make a grant of
$500,000 to each such institution.
``(3) In any fiscal year which the requirements of
paragraph (2) of this subsection are met and an additional
amount is appropriated and available for this section, the
grant attributable to such additional amount made to each
institution described in paragraphs (1) through (16) of
subsection (f) shall be equal, except that the requirement of
this paragraph may be waived if any such institution cannot
meet the matching requirement of subsection (a)(2) with
respect to that institution, and the amount available by
reason of this exception shall be dis-
[[Page 436]]
tributed equally among the remaining institutions described
in subsection (f).
``(4) In any fiscal year beginning after September 30,
1992, in which the amount appropriated for this section is
less than the amount appropriated for the previous fiscal
year, the amount which institutions described in subsection
(f) receive in that fiscal year shall be ratably reduced. In
case additional amounts become available for making grants
under this section for the fiscal year during which the
preceding sentence is applicable, such reduced amounts shall
be increased on the same basis as they were reduced, except
that the Morehouse School of Medicine shall not receive less
than $3,000,000 in that fiscal year.''.
(g) Prohibition.--Section 326 is amended by adding a new
subsection:
``(g) Prohibition.--A grant may be made in any fiscal year
under this section to either but not both of the institutions
described in subsection (e)(8) of this section.''.
SEC. 304. AMENDMENTS TO PART C.
(a) Program Consolidation.--Part C of title III of the Act
is amended--
(1) by amending the heading of such part to read as
follows:
``Part C--Endowment Challenge Grants for Institutions Eligible for
Assistance Under Part A or Part B'';
(2) by striking section 331; and
(3) by redesignating section 332 as section 331.
(b) Eligible Institution.--Section 331(a)(2) of the Act (as
redesignated by subsection (a) of this section) is amended by
adding at the end the following new subparagraph:
``(D) The term `eligible institution' means an institution
that is--
``(i) an eligible institution under part A or would be
considered to be such an institution if section 312(b)(1)(C)
referred to a postgraduate degree rather than a bachelor's
degree;
``(ii) an institution under part B or would be considered
to be such an institution if section 324 referred to a
postgraduate degree rather than a baccalaureate degree; or
``(iii) an institution that makes a substantial
contribution to postgraduate medical educational
opportunities for minorities and the economically
disadvantaged.
The Secretary may waive the requirements of clauses (i) and
(ii) of this subparagraph with respect to a postgraduate
degree in the case of any institution otherwise eligible
under this subparagraph for an endowment challenge grant upon
determining that the institution makes a substantial
contribution to medical education opportunities for
minorities and the economically disadvantaged.''.
(c) Endowment Challenge Grants.--Section 331(b) of the Act
(as so redesignated) is amended--
(1) by inserting ``endowment'' before ``challenge grants''
in paragraph (1);
(2) by striking ``$10,000,000'' in paragraph (2)(B) and
inserting ``$20,000,000'';
(3) by amending paragraph (2)(C) to read as follows:
``(C)(i) Except as provided in clause (ii), if the
appropriation for this part in a fiscal year is $20,000,000
or less, an eligible institution of higher education that it
awarded a grant under subsection (b)(2)(B) of this section
shall not be eligible to reapply for a grant under subsection
(b)(2)(B) of this section during the 10 years immediately
following the period that is received such a grant.
``(ii) If the appropriation for this part in any fiscal
year is greater than $20,000,000, an eligible institution of
higher education that is awarded a grant under subsection
(b)(2)(B) of this section shall not be eligible to reapply
for a grant under subsection (b)(2)(B) of this section during
the 5 years immediately following the period that it received
such a grant. This provision shall apply for the fiscal year
in which the appropriation is greater than $20,000,000 and
subsequent fiscal years, regardless of the appropriation in
those fiscal years.'';
(4) by striking ``section 331(a)(1)'' in paragraph (4)(A)
and inserting ``subsection (a)(2)(D) of this section'';
(5) by striking ``a challenge grant under this section'' in
paragraph (4)(B) and inserting ``an endowment challenge grant
under this section'';
(6) by striking ``a challenge grant under this section to
an eligible institution year'' in paragraph (5) and inserting
``an endowment challenge grant under this section to an
eligible institution'';
(7) by amending paragraph (5)(B) to read as follows:
``(B) not more than $500,000 for fiscal year 1992 or any
succeeding fiscal year.''.
(d) Selection Criteria.--Section 331(f)(1) of the Act (as
so redesignated) is amended by inserting before the semicolon
at the end the following: ``, or to an applicant that has
received a grant under part A or part B of this title within
the 5 fiscal years prior to the fiscal year in which the
applicant is applying for a grant under this section''.
(e) Application.--Section 331(g) of the Act (as so
redesignated) is amended by inserting before the period at
the end of the first sentence the following: ``, including a
description of the long- and short-term plans for raising and
using the funds under this part''.
(f) Set-Aside.--Section 331 of the Act (as so redesignated)
is amended by adding at the end the following new subsection:
``(i) Set-Aside for Historically Black Colleges and
Universities.--In any fiscal year beginning after September
30, 1992, the Secretary shall set aside 30 percent of the
amount appropriated for that fiscal year pursuant to section
360 for challenge grants to Historically Black Colleges and
Universities unless there are an insufficient number of
quality applications or an insufficient number of
applications due to the provisions in subsection (b)(2)(C) or
subsection (b)(4)(B).''.
SEC. 305. AMENDMENTS TO PART D.
(a) Contents of Applications.--Section 351(b)(7) of the Act
is amended--
(1) by striking subparagraph (D); and
(2) by redesignating subparagraphs (E) and (F) as
subparagraphs (D) and (E), respectively.
(b) Repeals.--Part D of title III of the Act is further
amended--
(1) by striking sections 355 and 359; and
(2) by redesignating sections 356, 357, 358, and 360 as
sections 355, 356, 357, and 358, respectively.
(c) Authorizations.--Section 358(a) of the Act (as
redesignated) is amended to read as follows:
``Sec. 358. (a) Authorizations.--(1) There are authorized
to be appropriated to carry out part A, $150,000,000 for
fiscal year 1993, and such sums as may be necessary for the 4
succeeding fiscal years.
``(2)(A) There are authorized to be appropriated to carry
out part B (other than section 326), $150,000,000 for fiscal
year 1993, and such sums as may be necessary for the 4
succeeding fiscal years.
``(B) There are authorized to be appropriated to carry out
section 326, $20,000,000 for fiscal year 1993, and such sums
as may be necessary for the 4 succeeding fiscal years.
``(3) There are authorized to be appropriated to carry out
part C, $60,000,000 for fiscal year 1993, and such sums as
may be necessary for the 4 succeeding fiscal years.''.
(d) Additional Amendments to Section 360.--Section 358(c)
of the Act (as redesignated) is amended by striking ``1986--
'' and paragraphs (1) and (2) and inserting the following:
``1986, the Secretary shall, for such fiscal year--
``(1) allocate 25 percent of the excess (above the amount
appropriated for part A for fiscal year 1986) among eligible
institutions at which at least 60 percent of the students are
Black Americans, Hispanic Americans, Native Americans, Asian
Americans, Native Hawaiians, or Pacific Islanders, or any
combination thereof; and
``(2) allocate 75 percent of such excess among other
eligible institutions.''.
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
Subpart 1--Federal Pell Grants
SEC. 411. FEDERAL PELL GRANT PROGRAM.
(a) Authorization.--Section 411(a)(1) of the Act is
amended--
(1) by striking ``September 30, 1992,'' and inserting
``September 30, 1998,''; and
(2) by striking ``paragraph (2)'' and inserting
``subsection (b)''.
(b) Name of Program.--Section 411(a)(3) of the Act is
amended by striking ``as `Pell Grants' '' and inserting ``as
`Federal Pell Grants' ''.
(c) Proportion of Cost.--Section 411(b)(1) of the Act is
amended--
(1) by striking ``(A) as determined'' and all that follows
through ``and (B)'';
(2) by striking ``parental or independent student'' and
inserting ``family and student''; and
(3) by striking ``subparts 2 and 3'' and inserting
``subparts 3 and 4''.
(d) Grant Amounts.--(1) Section 411(b)(2)(A) of the Act is
amended--
(A) by inserting ``maximum'' before ``basic''; and
(B) by striking out clause (i) and all that follows through
``that year.'' and inserting the following:
``(i) $4,500 for academic year 1992-1993, and
``(ii) the amount determined under subparagraph (B) for
academic year 1993-1994 and each academic year thereafter
through academic year 1998-1999.''.
(2) Section 411(b)(2) of the Act is amended--
(A) by redesignating subparagraph (B) as subparagraph (C);
and
(B) by inserting after subparagraph (A) the following new
subparagraph:
``(B)(i) The maximum amount to which a student is entitled
under clause (ii) of subparagraph (A) for each academic year
shall be the amount determined under subparagraph (A) for the
academic year preceding the academic year for which the
determination is made, increased by the percentage increase
in the Consumer Price Index determined in accordance with
clause (ii), rounded to the nearest $25.
``(ii) The Secretary of Labor shall publish in the Federal
Register, not later than July 31 in each year (beginning with
July, 1992) the percentage change in the Consumer Price Index
published for the year ending June 30 of the year in which
the publication is made. If the percentage in any year
published under the preceding sentence indicates an increase
in the Consumer Price Index, the Secretary shall publish in
the Federal Register, not later than August 31 in each year
the amount of the maximum grant, as specified in clause (ii)
of subparagraph (A), for the academic year that begins in the
succeeding calendar year. If the percentage so published does
not indicate an increase in the Consumer Price Index, the
amount of the maximum grant for the academic year for which
the determination is made shall be the amount of the grant
for the preceding academic year.
``(iii) For the purpose of this subparagraph, the term
`Consumer Price Index' means the
[[Page 437]]
Consumer Price Index for Wage Earners and Clerical Workers
published by the Bureau of Labor Statistics.''.
(3) Subparagraph (C) of section 411(b)(2) of the Act (as
redesignated by paragraph (2) of this subsection) is amended
in the first sentence therein--
(A) by inserting immediately after ``full-time basis'' the
following: ``(including a student who attends an institition
of higher
education on less than a half-time basis)''; and
(B) by inserting before the period at the end thereof the
following: ``, computed in accordance with this subpart''.
(4) Section 411(b)(3) of the Act is amended to read as
follows:
``(3)(A) The amount of a basic grant to which a student is
entitled under this subpart for any academic year in which
the
maximum basic grant is established under paragraph (2)(A)(i)
shall be determined by locating, on the following tables, the
intersection between the student's tuition (as determined
under subparagraph (D)) and the student's expected family
contribution (as determined under part F of this title):
____________________
TABLE 1.--PELL GRANT PAYMENT SCHEDULE
Dependent Students, Independent Students with Dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$0 $1-200 $201-400 $401-600 $601-800
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $2,750 $2,427 $2,347 $2,266 $2,185
200-399.................................................. 2,825 2,502 2,422 2,341 2,260
400-599.................................................. 2,875 2,552 2,472 2,391 2,310
600-799.................................................. 2,925 2,602 2,522 2,441 2,360
800-999.................................................. 2,975 2,652 2,572 2,491 2,410
1,000-1,199.............................................. 3,025 2,702 2,622 2,541 2,460
1,200-1,399.............................................. 3,075 2,752 2,672 2,591 2,510
1,400-1,599.............................................. 3,125 2,802 2,722 2,641 2,560
1,600-1,799.............................................. 3,175 2,852 2,772 2,691 2,610
1,800-1,999.............................................. 3,225 2,902 2,822 2,741 2,660
2,000-2,199.............................................. 3,275 2,952 2,872 2,791 2,710
2,200-2,399.............................................. 3,325 3,002 2,922 2,841 2,760
2,400-2,599.............................................. 3,375 3,052 2,972 2,891 2,810
2,600-2,799.............................................. 3,425 3,102 3,022 2,941 2,860
2,800-2,999.............................................. 3,475 3,152 3,072 2,991 2,910
3,000-3,199.............................................. 3,525 3,202 3,122 3,041 2,960
3,200-3,399.............................................. 3,575 3,252 3,172 3,091 3,010
3,400-3,599.............................................. 3,625 3,302 3,222 3,141 3,060
3,600-3,799.............................................. 3,675 3,352 3,272 3,191 3,110
3,800-3,999.............................................. 3,725 3,402 3,322 3,241 3,160
4,000-4,199.............................................. 3,775 3,452 3,372 3,291 3,210
4,200-4,399.............................................. 3,825 3,502 3,422 3,341 3,260
4,400-4,599.............................................. 3,875 3,552 3,472 3,391 3,310
4,600-4,799.............................................. 3,925 3,602 3,522 3,441 3,360
4,800-4,999.............................................. 3,975 3,652 3,572 3,491 3,410
5,000-5,199.............................................. 4,025 3,702 3,622 3,541 3,460
5,200-5,399.............................................. 4,075 3,752 3,672 3,591 3,510
5,400-5,599.............................................. 4,125 3,802 3,722 3,641 3,560
5,600-5,799.............................................. 4,175 3,852 3,772 3,691 3,610
5,800-5,999.............................................. 4,225 3,902 3,822 3,741 3,660
6,000-6,199.............................................. 4,275 3,952 3,872 3,791 3,710
6,200-6,399.............................................. 4,325 4,002 3,922 3,841 3,760
6,400-6,599.............................................. 4,375 4,052 3,972 3,891 3,810
6,600-6,799.............................................. 4,425 4,102 4,022 3,941 3,860
6,800-6,999.............................................. 4,475 4,152 4,072 3,991 3,910
7,000+................................................... 4,500 4,177 4,097 4,016 3,935
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 1.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: -----------------------------------------------------------------------------------------------------------------
$801-1,000 $1,001-1,200 $1,201-1,400 $1,401-1,600 $1,601-1,800 $1,801-2,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
-----------------------------------------------------------------------------------------------------------------
$0-$199............................... $2,105 $2,008 $1,877 $1,745 $1,614 $1,483
200-399............................... 2,180 2,083 1,952 1,820 1,689 1,558
400-599............................... 2,230 2,133 2,002 1,870 1,739 1,608
600-799............................... 2,280 2,183 2,052 1,920 1,789 1,658
800-999............................... 2,330 2,233 2,102 1,970 1,839 1,708
1,000-1,199........................... 2,380 2,283 2,152 2,020 1,889 1,758
1,200-1,399........................... 2,430 2,333 2,202 2,070 1,939 1,808
1,400-1,599........................... 2,480 2,383 2,252 2,120 1,989 1,858
1,600-1,799........................... 2,530 2,433 2,302 2,170 2,039 1,908
1,800-1,999........................... 2,580 2,483 2,352 2,220 2,089 1,958
2,000-2,199........................... 2,630 2,533 2,402 2,270 2,139 2,008
2,200-2,399........................... 2,680 2,583 2,452 2,320 2,189 2,058
2,400-2,599........................... 2,730 2,633 2,502 2,370 2,239 2,108
2,600-2,799........................... 2,780 2,683 2,552 2,420 2,289 2,158
2,800-2,999........................... 2,830 2,733 2,602 2,470 2,339 2,208
3,000-3,199........................... 2,880 2,783 2,652 2,520 2,389 2,258
3,200-3,399........................... 2,930 2,833 2,702 2,570 2,439 2,308
3,400-3,599........................... 2,980 2,883 2,752 2,620 2,489 2,358
3,600-3,799........................... 3,030 2,933 2,802 2,670 2,539 2,408
3,800-3,999........................... 3,080 2,983 2,852 2,720 2,589 2,458
4,000-4,199........................... 3,130 3,033 2,902 2,770 2,639 2,508
4,200-4,399........................... 3,180 3,083 2,952 2,820 2,689 2,558
4,400-4,599........................... 3,230 3,133 3,002 2,870 2,739 2,608
4,600-4,799........................... 3,280 3,183 3,052 2,920 2,789 2,658
4,800-4,999........................... 3,330 3,233 3,102 2,970 2,839 2,708
5,000-5,199........................... 3,380 3,283 3,152 3,020 2,889 2,758
5,200-5,399........................... 3,430 3,333 3,202 3,070 2,939 2,808
5,400-5,599........................... 3,480 3,383 3,252 3,120 2,989 2,858
5,600-5,799........................... 3,530 3,433 3,302 3,170 3,039 2,908
5,800-5,999........................... 3,580 3,483 3,352 3,220 3,089 2,958
6,000-6,199........................... 3,630 3,533 3,402 3,270 3,139 3,008
6,200-6,399........................... 3,680 3,583 3,452 3,320 3,189 3,058
6,400-6,599........................... 3,730 3,633 3,502 3,370 3,239 3,108
6,600-6,799........................... 3,780 3,683 3,552 3,420 3,289 3,158
6,800-6,999........................... 3,830 3,733 3,602 3,470 3,339 3,208
7,000 +............................... 3,855 3,758 3,627 3,495 3,364 3,233
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 438]]
TABLE 1.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ------------------------------------------------------------------------------------------------------------------------------------
$2,001-2,200 $2,201-2,400 $2,401-2,600 $2,601-2,800 $2,801-3,000 $3,001-3,200 $3,201-3,400
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
------------------------------------------------------------------------------------------------------------------------------------
$0-$199.................................................... $1,329 $1,143 $957 $780 $620 $459 $0
200-399.................................................... 1,404 1,218 1,032 855 695 534 0
400-599.................................................... 1,454 1,268 1,082 905 745 584 423
600-799.................................................... 1,504 1,318 1,132 955 795 634 473
800-999.................................................... 1,554 1,368 1,182 1,005 845 684 523
1,000-1,199................................................ 1,604 1,418 1,232 1,055 895 734 573
1,200-1,399................................................ 1,654 1,468 1,282 1,105 945 784 623
1,400-1,599................................................ 1,704 1,518 1,332 1,155 995 834 673
1,600-1,799................................................ 1,754 1,568 1,382 1,205 1,045 884 723
1,800-1,999................................................ 1,804 1,618 1,432 1,255 1,095 934 773
2,000-2,199................................................ 1,854 1,668 1,482 1,305 1,145 984 823
2,200-2,399................................................ 1,904 1,718 1,532 1,355 1,195 1,034 873
2,400-2,599................................................ 1,954 1,768 1,582 1,405 1,245 1,084 923
2,600-2,799................................................ 2,004 1,818 1,632 1,455 1,295 1,134 973
2,800-2,999................................................ 2,054 1,868 1,682 1,505 1,345 1,184 1,023
3,000-3199................................................. 2,104 1,918 1,732 1,555 1,395 1,234 1,073
3,200-3,399................................................ 2,154 1,968 1,782 1,605 1,445 1,284 1,123
3,400-3,599................................................ 2,204 2,018 1,832 1,655 1,495 1,334 1,173
3,600-3,799................................................ 2,254 2,068 1,882 1,705 1,545 1,384 1,223
3,800-3,999................................................ 2,304 2,118 1,932 1,755 1,595 1,434 1,273
4,000-4,199................................................ 2,354 2,168 1,982 1,805 1,645 1,484 1,323
4,200-4,399................................................ 2,404 2,218 2,032 1,855 1,695 1,534 1,373
4,400-4,599................................................ 2,454 2,268 2,082 1,905 1,745 1,584 1,423
4,600-4,799................................................ 2,504 2,318 2,132 1,955 1,795 1,634 1,473
4,800-4,999................................................ 2,554 2,368 2,182 2,005 1,845 1,684 1,523
5,000-5,199................................................ 2,604 2,418 2,232 2,055 1,895 1,734 1,573
5,200-5,399................................................ 2,654 2,468 2,282 2,105 1,945 1,784 1,623
5,400-5,599................................................ 2,704 2,518 2,332 2,155 1,995 1,834 1,673
5,600-5,799................................................ 2,754 2,568 2,382 2,205 2,045 1,884 1,723
5,800-5,999................................................ 2,804 2,618 2,432 2,255 2,095 1,934 1,773
6,000-6,199................................................ 2,854 2,668 2,482 2,305 2,145 1,984 1,823
6,200-6,399................................................ 2,904 2,718 2,532 2,355 2,195 2,034 1,873
6,400-6,599................................................ 2,954 2,768 2,582 2,405 2,245 2,084 1,923
6,600-6,799................................................ 3,004 2,818 2,632 2,455 2,295 2,134 1,973
6,800-6,999................................................ 3,054 2,868 2,682 2,505 2,345 2,184 2,023
7,000+..................................................... 3,079 2,893 2,707 2,530 2,370 2,209 2,048
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 1.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ------------------------------------------------------------------------------------------------------------------------------------
$3,401-3,600 $3,601-3,800 $3,801-4,000 $4,001-4,200 $4,201-4,400 $4,401-4,600 $4,601-4,800
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
------------------------------------------------------------------------------------------------------------------------------------
$0-$199.................................................... 0 0 0 0 0 0 0
200-399.................................................... 0 0 0 0 0 0 0
400-599.................................................... 0 0 0 0 0 0 0
600-799.................................................... 0 0 0 0 0 0 0
800-999.................................................... 0 0 0 0 0 0 0
1,000-1,199................................................ $434 0 0 0 0 0 0
1,200-1,399................................................ 484 0 0 0 0 0 0
1,400-1,599................................................ 534 0 0 0 0 0 0
1,600-1,799................................................ 584 $447 0 0 0 0 0
1,800-1,999................................................ 634 497 0 0 0 0 0
2,000-2,199................................................ 684 547 $410 0 0 0 0
2,200-2,399................................................ 734 597 460 0 0 0 0
2,400-2,599................................................ 784 647 510 0 0 0 0
2,600-2,799................................................ 834 697 560 $423 0 0 0
2,800-2,999................................................ 884 747 610 473 0 0 0
3,000-3,199................................................ 934 797 660 523 $407 0 0
3,200-3,399................................................ 984 847 710 573 457 0 0
3,400-3,599................................................ 1,034 897 760 623 507 0 0
3,600-3,799................................................ 1,084 947 810 673 557 $440 0
3,800-3,999................................................ 1,134 997 860 723 607 490 0
4,000-4,199................................................ 1,184 1,047 910 773 657 540 $424
4,200-4,399................................................ 1,234 1,097 960 823 707 590 474
4,400-4,599................................................ 1,284 1,147 1,010 873 757 640 524
4,600-4,799................................................ 1,334 1,197 1,060 923 807 690 574
4,800-4,999................................................ 1,384 1,247 1,110 973 857 740 624
5,000-5,199................................................ 1,434 1,297 1,160 1,023 907 790 674
5,200-5,399................................................ 1,484 1,347 1,210 1,073 957 840 724
5,400-5,599................................................ 1,534 1,397 1,260 1,123 1,007 890 774
5,600-5,799................................................ 1,584 1,447 1,310 1,173 1,057 940 824
5,800-5,999................................................ 1,634 1,497 1,360 1,223 1,107 990 874
6,000-6,199................................................ 1,684 1,547 1,410 1,273 1,157 1,040 924
6,200-6,399................................................ 1,734 1,597 1,460 1,323 1,207 1,090 974
6,400-6,599................................................ 1,784 1,647 1,510 1,373 1,257 1,140 1,024
6,600-6,799................................................ 1,834 1,697 1,560 1,423 1,307 1,190 1,074
6,800-6,999................................................ 1,884 1,747 1,610 1,473 1,357 1,240 1,124
7,000+..................................................... 1,909 1,772 1,635 1,498 1,382 1,265 1,149
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 1.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ------------------------------------------------------------------------------------------------------------------------------------
$4,801-5,000 $5,001-5,200 $5,201-5,400 $5,401-5,600 $5,601-5,800 $5,801-6,000 $6,001-6,200
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
------------------------------------------------------------------------------------------------------------------------------------
$0-$199.................................................... 0 0 0 0 0 0 0
200-399.................................................... 0 0 0 0 0 0 0
400-599.................................................... 0 0 0 0 0 0 0
600-799.................................................... 0 0 0 0 0 0 0
800-999.................................................... 0 0 0 0 0 0 0
[[Page 439]]
1,000-1,199................................................ 0 0 0 0 0 0 0
1,200-1,399................................................ 0 0 0 0 0 0 0
1,400-1,599................................................ 0 0 0 0 0 0 0
1,600-1,799................................................ 0 0 0 0 0 0 0
1,800-1,999................................................ 0 0 0 0 0 0 0
2,000-2,199................................................ 0 0 0 0 0 0 0
2,200-2,399................................................ 0 0 0 0 0 0 0
2,400-2,599................................................ 0 0 0 0 0 0 0
2,600-2,799................................................ 0 0 0 0 0 0 0
2,800-2,999................................................ 0 0 0 0 0 0 0
3,000-3,199................................................ 0 0 0 0 0 0 0
3,200-3,399................................................ 0 0 0 0 0 0 0
3,400-3,599................................................ 0 0 0 0 0 0 0
3,600-3,799................................................ 0 0 0 0 0 0 0
3,800-3,999................................................ 0 0 0 0 0 0 0
4,000-4,199................................................ 0 0 0 0 0 0 0
4,200-4,399................................................ 0 0 0 0 0 0 0
4,400-4,599................................................ $407 0 0 0 0 0 0
4,600-4,799................................................ 457 0 0 0 0 0 0
4,800-4,999................................................ 507 0 0 0 0 0 0
5,000-5,199................................................ 557 $444 0 0 0 0 0
5,200-5,399................................................ 607 494 0 0 0 0 0
5,400-5,599................................................ 657 544 $445 0 0 0 0
5,600-5,799................................................ 707 594 495 0 0 0 0
5,800-5,999................................................ 757 644 545 $446 0 0 0
6,000-6,199................................................ 807 694 595 496 0 0 0
6,200-6,399................................................ 857 744 645 546 $447 0 0
6,400-6,599................................................ 907 794 695 596 497 0 0
6,600-6,799................................................ 957 844 745 646 547 $448 0
6,800-6,999................................................ 1,007 894 795 696 597 498 0
7,000+..................................................... 1,032 919 820 721 622 523 $420
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 2.--PELL GRANT PAYMENT SCHEDULE
Single Independent Students
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$0-2,000 $2,001-2,200 $2,201-2,400 $2,401-2,600 $2,601-2,800
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $2,750 $2,447 $2,137 $1,826 $1,515
200-399.................................................. 2,825 2,522 2,212 1,901 1,590
400-599.................................................. 2,875 2,572 2,262 1,951 1,640
600-799.................................................. 2,925 2,622 2,312 2,001 1,690
800-999.................................................. 2,975 2,672 2,362 2,051 1,740
1,000-1,199.............................................. 3,025 2,722 2,412 2,101 1,790
1,200-1,399.............................................. 3,075 2,772 2,462 2,151 1,840
1,400-1,599.............................................. 3,125 2,822 2,512 2,201 1,890
1,600-1,799.............................................. 3,175 2,872 2,562 2,251 1,940
1,800-1,999.............................................. 3,225 2,922 2,612 2,301 1,990
2,000-2,199.............................................. 3,275 2,972 2,662 2,351 2,040
2,200-2,399.............................................. 3,325 3,022 2,712 2,401 2,090
2,400-2,599.............................................. 3,375 3,072 2,762 2,451 2,140
2,600-2,799.............................................. 3,425 3,122 2,812 2,501 2,190
2,800-2,999.............................................. 3,475 3,172 2,862 2,551 2,240
3,000-3,199.............................................. 3,525 3,222 2,912 2,601 2,290
3,200-3,399.............................................. 3,575 3,272 2,962 2,651 2,340
3,400-3,599.............................................. 3,625 3,322 3,012 2,701 2,390
3,600-3,799.............................................. 3,675 3,372 3,062 2,751 2,440
3,800-3,999.............................................. 3,725 3,422 3,112 2,801 2,490
4,000-4,199.............................................. 3,775 3,472 3,162 2,851 2,540
4,200-4,399.............................................. 3,825 3,522 3,212 2,901 2,590
4,400-4,599.............................................. 3,875 3,572 3,262 2,951 2,640
4,600-4,799.............................................. 3,925 3,622 3,312 3,001 2,690
4,800-4,999.............................................. 3,975 3,672 3,362 3,051 2,740
5,000-5,199.............................................. 4,025 3,722 3,412 3,101 2,790
5,200-5,399.............................................. 4,075 3,772 3,462 3,151 2,840
5,400-5,599.............................................. 4,125 3,822 3,512 3,201 2,890
5,600-5,799.............................................. 4,175 3,872 3,562 3,251 2,940
5,800-5,999.............................................. 4,225 3,922 3,612 3,301 2,990
6,000-6,199.............................................. 4,275 3,972 3,662 3,351 3,040
6,200-6,399.............................................. 4,325 4,022 3,712 3,401 3,090
6,400-6,599.............................................. 4,375 4,072 3,762 3,451 3,140
6,600-6,799.............................................. 4,425 4,122 3,812 3,501 3,190
6,800-6,999.............................................. 4,475 4,172 3,862 3,551 3,240
7,000+................................................... 4,500 4,197 3,887 3,576 3,265
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 2.--PELL GRANT PAYMENT SCHEDULE--Continued
Single Independent Students
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$2,801-3,000 $3,001-3,200 $3,201-3,400 $3,401-3,600 $3,601-3,800
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $1,205 $894 $584 0 0
200-399.................................................. 1,280 969 659 0 0
400-599.................................................. 1,330 1,019 709 0 0
600-799.................................................. 1,380 1,069 759 $448 0
800-999.................................................. 1,430 1,119 809 498 0
1,000-1,199.............................................. 1,480 1,169 859 548 0
1,200-1,399.............................................. 1,530 1,219 909 598 0
1,400-1,599.............................................. 1,580 1,269 959 648 0
1,600-1,799.............................................. 1,630 1,319 1,009 698 0
1,800-1,999.............................................. 1,680 1,369 1,059 748 $437
2,000-2,199.............................................. 1,730 1,419 1,109 798 487
2,200-2,399.............................................. 1,780 1,469 1,159 848 537
2,400-2,599.............................................. 1,830 1,519 1,209 898 587
[[Page 440]]
2,600-2,799.............................................. 1,880 1,569 1,259 948 637
2,800-2,999.............................................. 1,930 1,619 1,309 998 687
3,000-3,199.............................................. 1,980 1,669 1,359 1,048 737
3,200-3,399.............................................. 2,030 1,719 1,409 1,098 787
3,400-3,599.............................................. 2,080 1,769 1,459 1,148 837
3,600-3,799.............................................. 2,130 1,819 1,509 1,198 887
3,800-3,999.............................................. 2,180 1,869 1,559 1,248 937
4,000-4,199.............................................. 2,230 1,919 1,609 1,298 987
4,200-4,399.............................................. 2,280 1,969 1,659 1,348 1,037
4,400-4,599.............................................. 2,330 2,019 1,709 1,398 1,087
4,600-4,799.............................................. 2,380 2,069 1,759 1,448 1,137
4,800-4,999.............................................. 2,430 2,119 1,809 1,498 1,187
5,000-5,199.............................................. 2,480 2,169 1,859 1,548 1,237
5,200-5,399.............................................. 2,530 2,219 1,909 1,598 1,287
5,400-5,599.............................................. 2,580 2,269 1,959 1,648 1,337
5,600-5,799.............................................. 2,630 2,319 2,009 1,698 1,387
5,800-5,999.............................................. 2,680 2,369 2,059 1,748 1,437
6,000-6,199.............................................. 2,730 2,419 2,109 1,798 1,487
6,200-6,399.............................................. 2,780 2,469 2,159 1,848 1,537
6,400-6,599.............................................. 2,830 2,519 2,209 1,898 1,587
6,600-6,799.............................................. 2,880 2,569 2,259 1,948 1,637
6,800-6,999.............................................. 2,930 2,619 2,309 1,998 1,687
7,000+................................................... 2,955 2,644 2,334 2,023 1,712
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 2.--PELL GRANT PAYMENT SCHEDULE--Continued
Single Independent Students
----------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ---------------------------------------------------------------------------
$3,801-4,000 $4,001-4,200 $4,201-4,400 $4,401-4,600
----------------------------------------------------------------------------------------------------------------
Then the award is:
---------------------------------------------------------------------------
$0-$199............................. 0 0 0 0
200-399............................. 0 0 0 0
400-599............................. 0 0 0 0
600-799............................. 0 0 0 0
800-999............................. 0 0 0 0
1,000-1,199......................... 0 0 0 0
1,200-1,399......................... 0 0 0 0
1,400-1,599......................... 0 0 0 0
1,600-1,799......................... 0 0 0 0
1,800-1,999......................... 0 0 0 0
2,000-2,199......................... 0 0 0 0
2,200-2,399......................... 0 0 0 0
2,400-2,599......................... 0 0 0 0
2,600-2,799......................... 0 0 0 0
2,800-2,999......................... 0 0 0 0
3,000-3,199......................... $427 0 0 0
3,200-3,399......................... 477 0 0 0
3,400-3,599......................... 527 0 0 0
3,600-3,799......................... 577 0 0 0
3,800-3,999......................... 627 0 0 0
4,000-4,199......................... 677 0 0 0
4,200-4,399......................... 727 $416 0 0
4,400-4,599......................... 777 466 0 0
4,600-4,799......................... 827 516 0 0
4,800-4,999......................... 877 566 0 0
5,000-5,199......................... 927 616 0 0
5,200-5,399......................... 977 666 0 0
5,400-5,599......................... 1,027 716 $405 0
5,600-5,799......................... 1,077 766 455 0
5,800-5,999......................... 1,127 816 505 0
6,000-6,199......................... 1,177 866 555 0
6,200-6,399......................... 1,227 916 605 0
6,400-6,599......................... 1,277 966 655 0
6,600-6,799......................... 1,327 1,016 705 0
6,800-6,999......................... 1,377 1,066 755 $445
7,000+.............................. 1,402 1,091 780 470
----------------------------------------------------------------------------------------------------------------
``(B) Except as provided in paragraph (5), the amount of a
basic grant to which a student is entitled under this subpart
for any academic year in which the maximum basic grant is
established under paragraph (2)(A)(ii) shall be determined by
locating, on tables prescribed by the Secretary under this
subparagraph, the intersection between the student's tuition
(as determined under subparagraph (D)) and the student's
expected family contribution (as determined under part F of
this title). The Secretary shall prescribe such tables for
any such academic year--
``(i) by subtracting $4,500 from the amount of the maximum
grant established under paragraph (2)(A)(ii) for such
academic year;
``(ii) by dividing the remainder determined under clause
(i) by 2;
``(iii) by adding the quotient of that division to each of
the cells specifying an award amount in the tables following
clause (v);
``(iv)(I) by eliminating all rows following the first row
in which such maximum grant amount appears;
``(II) by changing the tuition amounts in the last row (as
determined pursuant to clause (I)) to indicate that such row
applies to all higher tuition amounts; and
``(III) by reducing the award amount in any such row that
exceeds such maximum grant to an amount equal to such maximum
grant; and
``(v) by changing the amount in any such cell that is less
than $200 to zero.
The tables which the Secretary shall use under this
subparagraph are as follows:
____________________
TABLE 3.--PELL GRANT PAYMENT SCHEDULE
Dependent Students, Independent Students with Dependents
----------------------------------------------------------------------------------------------------------------
And expected family contribution is:
Tuition is: ---------------------------------------------------------------------------
0 $1-200 $201-400 $401-600
----------------------------------------------------------------------------------------------------------------
Then the award is:
---------------------------------------------------------------------------
$0-$199............................. $2,750 $2,427 $2,347 $2,266
200-399............................. 2,825 2,502 2,422 2,341
[[Page 441]]
400-599............................. 2,875 2,552 2,472 2,391
600-799............................. 2,925 2,602 2,522 2,441
800-999............................. 2,975 2,652 2,572 2,491
1,000-1,199......................... 3,025 2,702 2,622 2,541
1,200-1,399......................... 3,075 2,752 2,672 2,591
1,400-1,599......................... 3,125 2,802 2,722 2,641
1,600-1,799......................... 3,175 2,852 2,772 2,691
1,800-1,999......................... 3,225 2,902 2,822 2,741
2,000-2,199......................... 3,275 2,952 2,872 2,791
2,200-2,399......................... 3,325 3,002 2,922 2,841
2,400-2,599......................... 3,375 3,052 2,972 2,891
2,600-2,799......................... 3,425 3,102 3,022 2,941
2,800-2,999......................... 3,475 3,152 3,072 2,991
3,000-3,199......................... 3,525 3,202 3,122 3,041
3,200-3,399......................... 3,575 3,252 3,172 3,091
3,400-3,599......................... 3,625 3,302 3,222 3,141
3,600-3,799......................... 3,675 3,352 3,272 3,191
3,800-3,999......................... 3,725 3,402 3,322 3,241
4,000-4,199......................... 3,775 3,452 3,372 3,291
4,200-4,399......................... 3,825 3,502 3,422 3,341
4,400-4,599......................... 3,875 3,552 3,472 3,391
4,600-4,799......................... 3,925 3,602 3,522 3,441
4,800-4,999......................... 3,975 3,652 3,572 3,491
5,000-5,199......................... 4,025 3,702 3,622 3,541
5,200-5,399......................... 4,075 3,752 3,672 3,591
5,400-5,599......................... 4,125 3,802 3,722 3,641
5,600-5,799......................... 4,175 3,852 3,772 3,691
5,800-5,999......................... 4,225 3,902 3,822 3,741
6,000-6,199......................... 4,275 3,952 3,872 3,791
6,200-6,399......................... 4,325 4,002 3,922 3,841
6,400-6,599......................... 4,375 4,052 3,972 3,891
6,600-6,799......................... 4,425 4,102 4,022 3,941
6,800-6,999......................... 4,475 4,152 4,072 3,991
7,000-7,199......................... 4,525 4,202 4,122 4,041
7,200-7,399......................... 4,575 4,252 4,172 4,091
7,400-7,599......................... 4,625 4,302 4,222 4,141
7,600-7,799......................... 4,675 4,352 4,272 4,191
7,800-7,999......................... 4,725 4,402 4,322 4,241
8,000-8,199......................... 4,775 4,452 4,372 4,291
8,200-8,399......................... 4,825 4,502 4,422 4,341
8,400-8,599......................... 4,875 4,552 4,472 4,391
8,600-8,799......................... 4,925 4,602 4,522 4,441
8,800-8,999......................... 4,975 4,652 4,572 4,491
9,000-9,199......................... 5,025 4,702 4,622 4,541
9,200-9,399......................... 5,075 4,752 4,672 4,591
9,400-9,599......................... 5,125 4,802 4,722 4,641
9,600-9,799......................... 5,175 4,852 4,772 4,691
9,800-9,999......................... 5,225 4,902 4,822 4,741
10,000-10,199....................... 5,275 4,952 4,872 4,791
10,200-10,399....................... 5,325 5,002 4,922 4,841
10,400-10,599....................... 5,375 5,052 4,972 4,891
10,600-10,799....................... 5,425 5,102 5,022 4,941
10,800-10,999....................... 5,475 5,152 5,072 4,991
11,000-11,199....................... 5,525 5,202 5,122 5,041
11,200-11,399....................... 5,575 5,252 5,172 5,091
----------------------------------------------------------------------------------------------------------------
TABLE 3.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$601-800 $801-1,000 $1,001-1,200 $1,201-1,400 $1,401-1,600
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $2,185 $2,105 $2,008 $1,887 $1,745
200-399.................................................. 2,260 2,180 2,083 1,952 1,820
400-599.................................................. 2,310 2,230 2,133 2,002 1,870
600-799.................................................. 2,360 2,280 2,183 2,052 1,920
800-999.................................................. 2,410 2,330 2,233 2,102 1,970
1,000-1,199.............................................. 2,460 2,380 2,283 2,152 2,020
1,200-1,399.............................................. 2,510 2,430 2,333 2,202 2,070
1,400-1,599.............................................. 2,560 2,480 2,383 2,252 2,120
1,600-1,799.............................................. 2,610 2,530 2,433 2,302 2,170
1,800-1,999.............................................. 2,660 2,580 2,483 2,352 2,220
2,000-2,199.............................................. 2,710 2,630 2,533 2,402 2,270
2,200-2,399.............................................. 2,760 2,680 2,583 2,452 2,320
2,400-2,599.............................................. 2,810 2,730 2,633 2,502 2,370
2,600-2,799.............................................. 2,860 2,780 2,683 2,552 2,420
2,800-2,999.............................................. 2,910 2,830 2,733 2,602 2,470
3,000-3,199.............................................. 2,960 2,880 2,783 2,652 2,520
3,200-3,399.............................................. 3,010 2,930 2,833 2,702 2,570
3,400-3,599.............................................. 3,060 2,980 2,883 2,752 2,620
3,600-3,799.............................................. 3,110 3,030 2,933 2,802 2,670
3,800-3,999.............................................. 3,160 3,080 2,983 2,852 2,720
4,000-4,199.............................................. 3,210 3,130 3,033 2,902 2,770
4,200-4,399.............................................. 3,260 3,180 3,083 2,952 2,820
4,400-4,599.............................................. 3,310 3,230 3,133 3,002 2,870
4,600-4,799.............................................. 3,360 3,280 3,183 3,052 2,920
4,800-4,999.............................................. 3,410 3,330 3,233 3,102 2,970
5,000-5,199.............................................. 3,460 3,380 3,283 3,152 3,020
5,200-5,399.............................................. 3,510 3,430 3,333 3,202 3,070
5,400-5,599.............................................. 3,560 3,480 3,383 3,252 3,120
5,600-5,799.............................................. 3,610 3,530 3,433 3,302 3,170
5,800-5,999.............................................. 3,660 3,580 3,483 3,352 3,220
6,000-6,199.............................................. 3,710 3,630 3,533 3,402 3,270
6,200-6,399.............................................. 3,760 3,680 3,583 3,452 3,320
6,400-6,599.............................................. 3,810 3,730 3,633 3,502 3,370
6,600-6,799.............................................. 3,860 3,780 3,683 3,552 3,420
6,800-6,999.............................................. 3,910 3,830 3,733 3,602 3,470
7,000-7,199.............................................. 3,960 3,880 3,783 3,652 3,520
7,200-7,399.............................................. 4,010 3,930 3,833 3,702 3,570
7,400-7,599.............................................. 4,060 3,980 3,883 3,752 3,620
7,600-7,799.............................................. 4,110 4,030 3,933 3,802 3,670
7,800-7,999.............................................. 4,160 4,080 3,983 3,852 3,720
[[Page 442]]
8,000-8,199.............................................. 4,210 4,130 4,033 3,902 3,770
8,200-8,399.............................................. 4,260 4,180 4,083 3,952 3,820
8,400-8,599.............................................. 4,310 4,230 4,133 4,002 3,870
8,600-8,799.............................................. 4,360 4,280 4,183 4,052 3,920
8,800-8,999.............................................. 4,410 4,330 4,233 4,102 3,970
9,000-9,199.............................................. 4,460 4,380 4,283 4,152 4,020
9,200-9,399.............................................. 4,510 4,430 4,333 4,202 4,070
9,400-9,599.............................................. 4,560 4,480 4,383 4,252 4,120
9,600-9,799.............................................. 4,610 4,530 4,433 4,302 4,170
9,800-9,999.............................................. 4,660 4,580 4,483 4,352 4,220
10,000-10,199............................................ 4,710 4,630 4,533 4,402 4,270
10,200-10,399............................................ 4,760 4,680 4,583 4,452 4,320
10,400-10,599............................................ 4,810 4,730 4,633 4,502 4,370
10,600-10,799............................................ 4,860 4,780 4,683 4,552 4,420
10,800-10,999............................................ 4,910 4,830 4,733 4,602 4,470
11,000-11,199............................................ 4,960 4,880 4,783 4,652 4,520
11,200-11,399............................................ 5,010 4,930 4,833 4,702 4,570
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 3.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$1,601-1,800 $1,801-2,000 $2,001-2,200 $2,201-2,400 $2,401-2,600
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $1,614 $1,483 $1,329 $1,143 $957
200-399.................................................. 1,689 1,558 1,404 1,218 1,032
400-599.................................................. 1,739 1,608 1,454 1,268 1,082
600-799.................................................. 1,789 1,658 1,504 1,318 1,132
800-999.................................................. 1,839 1,708 1,554 1,368 1,182
1,000-1,199.............................................. 1,889 1,758 1,604 1,418 1,232
1,200-1,399.............................................. 1,939 1,808 1,654 1,468 1,282
1,400-1,599.............................................. 1,989 1,858 1,704 1,518 1,332
1,600-1,799.............................................. 2,039 1,908 1,754 1,568 1,382
1,800-1,999.............................................. 2,089 1,958 1,804 1,618 1,432
2,000-2,199.............................................. 2,139 2,008 1,854 1,668 1,482
2,200-2,399.............................................. 2,189 2,058 1,904 1,718 1,532
2,400-2,599.............................................. 2,239 2,108 1,954 1,768 1,582
2,600-2,799.............................................. 2,289 2,158 2,004 1,818 1,632
2,800-2,999.............................................. 2,339 2,208 2,054 1,868 1,682
3,000-3,199.............................................. 2,389 2,258 2,104 1,918 1,732
3,200-3,399.............................................. 2,439 2,308 2,154 1,968 1,782
3,400-3,599.............................................. 2,489 2,358 2,204 2,018 1,832
3,600-3,799.............................................. 2,539 2,408 2,254 2,068 1,882
3,800-3,999.............................................. 2,589 2,458 2,304 2,118 1,932
4,000-4,199.............................................. 2,639 2,508 2,354 2,168 1,982
4,200-4,399.............................................. 2,689 2,558 2,404 2,218 2,032
4,400-4,599.............................................. 2,739 2,608 2,454 2,268 2,082
4,600-4,799.............................................. 2,789 2,658 2,504 2,318 2,132
4,800-4,999.............................................. 2,839 2,708 2,554 2,368 2,182
5,000-5,199.............................................. 2,889 2,758 2,604 2,418 2,232
5,200-5,399.............................................. 2,939 2,808 2,654 2,468 2,282
5,400-5,599.............................................. 2,989 2,858 2,704 2,518 2,332
5,600-5,799.............................................. 3,039 2,908 2,754 2,568 2,382
5,800-5,999.............................................. 3,089 2,958 2,804 2,618 2,432
6,000-6,199.............................................. 3,139 3,008 2,854 2,668 2,482
6,200-6,399.............................................. 3,189 3,058 2,904 2,718 2,532
6,400-6,599.............................................. 3,239 3,108 2,954 2,768 2,582
6,600-6,799.............................................. 3,289 3,158 3,004 2,818 2,632
6,800-6,999.............................................. 3,339 3,208 3,054 2,868 2,682
7,000-7,199.............................................. 3,389 3,258 3,104 2,918 2,732
7,200-7,399.............................................. 3,439 3,308 3,154 2,968 2,782
7,400-7,599.............................................. 3,489 3,358 3,204 3,018 2,832
7,600-7,799.............................................. 3,539 3,408 3,254 3,068 2,882
7,800-7,999.............................................. 3,589 3,458 3,304 3,118 2,932
8,000-8,199.............................................. 3,639 3,508 3,354 3,168 2,982
8,200-8,399.............................................. 3,689 3,558 3,404 3,218 3,032
8,400-8,599.............................................. 3,739 3,608 3,454 3,268 3,082
8,600-8,799.............................................. 3,789 3,658 3,504 3,318 3,132
8,800-8,999.............................................. 3,839 3,708 3,554 3,368 3,182
9,000-9,199.............................................. 3,889 3,758 3,604 3,418 3,232
9,200-9,399.............................................. 3,939 3,808 3,654 3,468 3,282
9,400-9,599.............................................. 3,989 3,858 3,704 3,518 3,332
9,600-9,799.............................................. 4,039 3,908 3,754 3,568 3,382
9,800-9,999.............................................. 4,089 3,958 3,804 3,618 3,432
10,000-10,199............................................ 4,139 4,008 3,854 3,668 3,482
10,200-10,399............................................ 4,189 4,058 3,904 3,718 3,532
10,400-10,599............................................ 4,239 4,108 3,954 3,768 3,582
10,600-10,799............................................ 4,289 4,158 4,004 3,818 3,632
10,800-10,999............................................ 4,339 4,208 4,054 3,868 3,682
11,000-11,199............................................ 4,389 4,258 4,104 3,918 3,732
11,200-11,399............................................ 4,439 4,308 4,154 3,968 3,782
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 3.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$2,601-2,800 $2,801-3,000 $3,001-3,200 $3,201-3,400 $3,401-3,600
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $780 $620 $459 $298 $159
200-399.................................................. 855 695 534 373 234
400-599.................................................. 905 745 584 423 284
600-799.................................................. 955 795 634 473 334
800-999.................................................. 1,005 845 684 523 384
1,000-1,199.............................................. 1,055 895 734 573 434
[[Page 443]]
1,200-1,399.............................................. 1,105 945 784 623 484
1,400-1,599.............................................. 1,155 995 834 673 534
1,600-1,799.............................................. 1,205 1,045 884 723 584
1,800-1,999.............................................. 1,255 1,095 934 773 634
2,000-2,199.............................................. 1,305 1,145 984 823 684
2,200-2,399.............................................. 1,355 1,195 1,034 873 734
2,400-2,599.............................................. 1,405 1,245 1,084 923 784
2,600-2,799.............................................. 1,455 1,295 1,134 973 834
2,800-2,999.............................................. 1,505 1,345 1,184 1,023 884
3,000-3,199.............................................. 1,555 1,395 1,234 1,073 934
3,200-3,399.............................................. 1,605 1,445 1,284 1,123 984
3,400-3,599.............................................. 1,655 1,495 1,334 1,173 1,034
3,600-3,799.............................................. 1,705 1,545 1,384 1,223 1,084
3,800-3,999.............................................. 1,755 1,595 1,434 1,273 1,134
4,000-4,199.............................................. 1,805 1,645 1,484 1,323 1,184
4,200-4,399.............................................. 1,855 1,695 1,534 1,373 1,234
4,400-4,599.............................................. 1,905 1,745 1,584 1,423 1,284
4,600-4,799.............................................. 1,955 1,795 1,634 1,473 1,334
4,800-4,999.............................................. 2,005 1,845 1,684 1,523 1,384
5,000-5,199.............................................. 2,055 1,895 1,734 1,573 1,434
5,200-5,399.............................................. 2,105 1,945 1,784 1,623 1,484
5,400-5,599.............................................. 2,155 1,995 1,834 1,673 1,534
5,600-5,799.............................................. 2,205 2,045 1,884 1,723 1,584
5,800-5,999.............................................. 2,255 2,095 1,934 1,773 1,634
6,000-6,199.............................................. 2,305 2,145 1,984 1,823 1,684
6,200-6,399.............................................. 2,355 2,195 2,034 1,873 1,734
6,400-6,599.............................................. 2,405 2,245 2,084 1,923 1,784
6,600-6,799.............................................. 2,455 2,295 2,134 1,973 1,834
6,800-6,999.............................................. 2,505 2,345 2,184 2,023 1,884
7,000-7,199.............................................. 2,555 2,395 2,234 2,073 1,934
7,200-7,399.............................................. 2,605 2,445 2,284 2,123 1,984
7,400-7,599.............................................. 2,655 2,495 2,334 2,173 2,034
7,600-7,799.............................................. 2,705 2,545 2,384 2,223 2,084
7,800-7,999.............................................. 2,755 2,595 2,434 2,273 2,134
8,000-8,199.............................................. 2,805 2,645 2,484 2,323 2,184
8,200-8,399.............................................. 2,855 2,695 2,534 2,373 2,234
8,400-8,599.............................................. 2,905 2,745 2,584 2,423 2,284
8,600-8,799.............................................. 2,955 2,795 2,634 2,473 2,334
8,800-8,999.............................................. 3,005 2,845 2,684 2,523 2,384
9,000-9,199.............................................. 3,055 2,895 2,734 2,573 2,434
9,200-9,399.............................................. 3,105 2,945 2,784 2,623 2,484
9,400-9,599.............................................. 3,155 2,995 2,834 2,673 2,534
9,600-9,799.............................................. 3,205 3,045 2,884 2,723 2,584
9,800-9,999.............................................. 3,255 3,095 2,934 2,773 2,634
10,000-10,199............................................ 3,305 3,145 2,984 2,823 2,684
10,200-10,399............................................ 3,355 3,195 3,034 2,873 2,734
10,400-10,599............................................ 3,405 3,245 3,084 2,923 2,784
10,600-10,799............................................ 3,455 3,295 3,134 2,973 2,834
10,800-10,999............................................ 3,505 3,345 3,184 3,023 2,884
11,000-11,199............................................ 3,555 3,395 3,234 3,073 2,934
11,200-11,399............................................ 3,605 3,445 3,284 3,123 2,984
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 3.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$3,601-3,800 $3,801-4,000 $4,001-4,200 $4,201-4,400 $4,401-4,600
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $22 -$115 -$252 -$368 -$485
200-399.................................................. 97 -40 -177 -293 -410
400-599.................................................. 147 10 -127 -243 -360
600-799.................................................. 197 60 -77 -193 -310
800-999.................................................. 247 110 -27 -143 -260
1,000-1,199.............................................. 297 160 23 -93 -210
1,200-1,399.............................................. 347 210 73 -43 -160
1,400-1,599.............................................. 397 260 123 7 -110
1,600-1,799.............................................. 447 310 173 57 -60
1,800-1,999.............................................. 497 360 223 107 -10
2,000-2,199.............................................. 547 410 273 157 40
2,200-2,399.............................................. 597 460 323 207 90
2,400-2,599.............................................. 647 510 373 257 140
2,600-2,799.............................................. 697 560 423 307 190
2,800-2,999.............................................. 747 610 473 357 240
3,000-3,199.............................................. 797 660 523 407 290
3,200-3,399.............................................. 847 710 573 457 340
3,400-3,599.............................................. 897 760 623 507 390
3,600-3,799.............................................. 947 810 673 557 440
3,800-3,999.............................................. 997 860 723 607 490
4,000-4,199.............................................. 1,047 910 773 657 540
4,200-4,399.............................................. 1,097 960 823 707 590
4,400-4,599.............................................. 1,147 1,010 873 757 640
4,600-4,799.............................................. 1,197 1,060 923 807 690
4,800-4,999.............................................. 1,247 1,110 973 857 740
5,000-5,199.............................................. 1,297 1,160 1,023 907 790
5,200-5,399.............................................. 1,347 1,210 1,073 957 840
5,400-5,599.............................................. 1,397 1,260 1,123 1,007 890
5,600-5,799.............................................. 1,447 1,310 1,173 1,057 940
5,800-5,999.............................................. 1,497 1,360 1,223 1,107 990
6,000-6,199.............................................. 1,547 1,410 1,273 1,157 1,040
6,200-6,399.............................................. 1,597 1,460 1,323 1,207 1,090
6,400-6,599.............................................. 1,647 1,510 1,373 1,257 1,140
6,600-6,799.............................................. 1,697 1,560 1,423 1,307 1,190
6,800-6,999.............................................. 1,747 1,610 1,473 1,357 1,240
7,000-7,199.............................................. 1,797 1,660 1,523 1,407 1,290
7,200-7,399.............................................. 1,847 1,710 1,573 1,457 1,340
7,400-7,599.............................................. 1,897 1,760 1,623 1,507 1,390
7,600-7,799.............................................. 1,947 1,810 1,673 1,557 1,440
7,800-7,999.............................................. 1,997 1,860 1,723 1,607 1,490
8,000-8,199.............................................. 2,047 1,910 1,773 1,657 1,540
8,200-8,399.............................................. 2,097 1,960 1,823 1,707 1,590
8,400-8,599.............................................. 2,147 2,010 1,873 1,757 1,640
8,600-8,799.............................................. 2,197 2,060 1,923 1,807 1,690
[[Page 444]]
8,800-8,999.............................................. 2,247 2,110 1,973 1,857 1,740
9,000-9,199.............................................. 2,297 2,160 2,023 1,907 1,790
9,200-9,399.............................................. 2,347 2,210 2,073 1,957 1,840
9,400-9,599.............................................. 2,397 2,260 2,123 2,007 1,890
9,600-9,799.............................................. 2,447 2,310 2,173 2,057 1,940
9,800-9,999.............................................. 2,497 2,360 2,223 2,107 1,990
10,000-10,199............................................ 2,547 2,410 2,273 2,157 2,040
10,200-10,399............................................ 2,597 2,460 2,323 2,207 2,090
10,400-10,599............................................ 2,647 2,510 2,373 2,257 2,140
10,600-10,799............................................ 2,697 2,560 2,423 2,307 2,190
10,800-10,999............................................ 2,747 2,610 2,473 2,357 2,240
11,000-11,199............................................ 2,797 2,660 2,523 2,407 2,290
11,200-11,399............................................ 2,847 2,710 2,573 2,457 2,340
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 3.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$4,601-4,800 $4,801-5,000 $5,001-5,200 $5,201-5,400 $5,401-5,600
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. -$601 -$718 -$831 -$930 -$1,029
200-399.................................................. -526 -643 -756 -855 -954
400-599.................................................. -476 -593 -706 -805 -904
600-799.................................................. -426 -543 -656 -755 -854
800-999.................................................. -376 -493 -606 -705 -804
1,000-1,199.............................................. -326 -443 -556 -655 -754
1,200-1,399.............................................. -276 -393 -506 -605 -704
1,400-1,599.............................................. -226 -343 -456 -555 -654
1,600-1,799.............................................. -176 -293 -406 -505 -604
1,800-1,999.............................................. -126 -243 -356 -455 -554
2,000-2,199.............................................. -76 -193 -306 -405 -504
2,200-2,399.............................................. -26 -143 -256 -355 -454
2,400-2,599.............................................. 24 -93 -206 -305 -404
2,600-2,799.............................................. 74 -43 -156 -255 -354
2,800-2,999.............................................. 124 7 -106 -205 -304
3,000-3,199.............................................. 174 57 -56 -155 -254
3,200-3,399.............................................. 224 107 -6 -105 -204
3,400-3,599.............................................. 274 157 44 -55 -154
3,600-3,799.............................................. 324 207 94 -5 -104
3,800-3,999.............................................. 374 257 144 45 -54
4,000-4,199.............................................. 424 307 194 95 -4
4,200-4,399.............................................. 474 357 244 145 46
4,400-4,599.............................................. 524 407 294 195 96
4,600-4,799.............................................. 574 457 344 245 146
4,800-4,999.............................................. 624 507 394 295 196
5,000-5,199.............................................. 674 557 444 345 246
5,200-5,399.............................................. 724 607 494 395 296
5,400-5,599.............................................. 774 657 544 445 346
5,600-5,799.............................................. 824 707 594 495 396
5,800-5,999.............................................. 874 757 644 545 446
6,000-6,199.............................................. 924 807 694 595 496
6,200-6,399.............................................. 974 857 744 645 546
6,400-6,599.............................................. 1,024 907 794 695 596
6,600-6,799.............................................. 1,074 957 844 745 646
6,800-6,999.............................................. 1,124 1,007 894 795 696
7,000-7,199.............................................. 1,174 1,057 944 845 746
7,200-7,399.............................................. 1,224 1,107 994 895 796
7,400-7,599.............................................. 1,274 1,157 1,044 945 846
7,600-7,799.............................................. 1,324 1,207 1,094 995 896
7,800-7,999.............................................. 1,374 1,257 1,144 1,045 946
8,000-8,199.............................................. 1,424 1,307 1,194 1,095 996
8,200-8,399.............................................. 1,474 1,357 1,244 1,145 1,046
8,400-8,599.............................................. 1,524 1,407 1,294 1,195 1,096
8,600-8,799.............................................. 1,574 1,457 1,344 1,245 1,146
8,800-8,999.............................................. 1,624 1,507 1,394 1,295 1,196
9,000-9,199.............................................. 1,674 1,557 1,444 1,345 1,246
9,200-9,399.............................................. 1,724 1,607 1,494 1,395 1,296
9,400-9,599.............................................. 1,774 1,657 1,544 1,445 1,346
9,600-9,799.............................................. 1,824 1,707 1,594 1,495 1,396
9,800-9,999.............................................. 1,874 1,757 1,644 1,545 1,446
10,000-10,199............................................ 1,924 1,807 1,694 1,595 1,496
10,200-10,399............................................ 1,974 1,857 1,744 1,645 1,546
10,400-10,599............................................ 2,024 1,907 1,794 1,695 1,596
10,600-10,799............................................ 2,074 1,957 1,844 1,745 1,646
10,800-10,999............................................ 2,124 2,007 1,894 1,795 1,696
11,000-11,199............................................ 2,174 2,057 1,944 1,845 1,746
11,200-11,399............................................ 2,224 2,107 1,994 1,895 1,796
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 3.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$5,601-5,800 $5,801-6,000 $6,001-6,200 $6,201-6,400 $6,401-6,600
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. -$1,128 -$1,227 -$1,330 -$1,433 -$1,535
200-399.................................................. -1,053 -1,152 -1,255 -1,358 -1,460
400-599.................................................. -1,003 -1,102 -1,205 -1,308 -1,410
600-799.................................................. -953 -1,052 -1,155 -1,258 -1,360
800-999.................................................. -903 -1,002 -1,105 -1,208 -1,310
1,000-1,199.............................................. -853 -952 -1,055 -1,158 -1,260
1,200-1,399.............................................. -803 -902 -1,005 -1,108 -1,210
1,400-1,599.............................................. -753 -852 -955 -1,058 -1,160
1,600-1,799.............................................. -703 -802 -905 -1,008 -1,110
1,800-1,999.............................................. -653 -752 -855 -958 -1,060
[[Page 445]]
2,000-2,199.............................................. -603 -702 -805 -908 -1,010
2,200-2,399.............................................. -553 -652 -755 -858 -960
2,400-2,599.............................................. -503 -602 -705 -808 -910
2,600-2,799.............................................. -453 -552 -655 -758 -860
2,800-2,999.............................................. -403 -502 -605 -708 -810
3,000-3,199.............................................. -353 -452 -555 -658 -760
3,200-3,399.............................................. -303 -402 -505 -608 -710
3,400-3,599.............................................. -253 -352 -455 -558 -660
3,600-3,799.............................................. -203 -302 -405 -508 -610
3,800-3,999.............................................. -153 -252 -355 -458 -560
4,000-4,199.............................................. -103 -202 -305 -408 -510
4,200-4,399.............................................. -53 -152 -255 -358 -460
4,400-4,599.............................................. -3 -102 -205 -308 -410
4,600-4,799.............................................. 47 -52 -155 -258 -360
4,800-4,999.............................................. 97 -2 -105 -208 -310
5,000-5,199.............................................. 147 48 -55 -158 -260
5,200-5,399.............................................. 197 98 -5 -108 -210
5,400-5,599.............................................. 247 148 45 -58 -160
5,600-5,799.............................................. 297 198 95 -8 -110
5,800-5,999.............................................. 347 248 145 42 -60
6,000-6,199.............................................. 397 298 195 92 -10
6,200-6,399.............................................. 447 348 245 142 40
6,400-6,599.............................................. 497 398 295 192 90
6,600-6,799.............................................. 547 448 345 242 140
6,800-6,999.............................................. 597 498 395 292 190
7,000-7,199.............................................. 647 548 445 342 240
7,200-7,399.............................................. 697 598 495 392 290
7,400-7,599.............................................. 747 648 545 442 340
7,600-7,799.............................................. 797 698 595 492 390
7,800-7,999.............................................. 847 748 645 542 440
8,000-8,199.............................................. 897 798 695 592 490
8,200-8,399.............................................. 947 848 745 642 540
8,400-8,599.............................................. 997 898 795 692 590
8,600-8,799.............................................. 1,047 948 845 742 640
8,800-8,999.............................................. 1,097 998 895 792 690
9,000-9,199.............................................. 1,147 1,048 945 842 740
9,200-9,399.............................................. 1,197 1,098 995 892 790
9,400-9,599.............................................. 1,247 1,148 1,045 942 840
9,600-9,799.............................................. 1,297 1,198 1,095 992 890
9,800-9,999.............................................. 1,347 1,248 1,145 1,042 940
10,000-10,199............................................ 1,397 1,298 1,195 1,092 990
10,200-10,399............................................ 1,447 1,348 1,245 1,142 1,040
10,400-10,599............................................ 1,497 1,398 1,295 1,192 1,090
10,600-10,799............................................ 1,547 1,448 1,345 1,242 1,140
10,800-10,999............................................ 1,597 1,498 1,395 1,292 1,190
11,000-11,199............................................ 1,647 1,548 1,445 1,342 1,240
11,200-11,399............................................ 1,697 1,598 1,495 1,392 1,290
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 3.--PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
----------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ---------------------------------------------------------------------------
$6,601-6,800 $6,801-7,000 $7,001-7,200 $7,201-7,400
----------------------------------------------------------------------------------------------------------------
Then the award is:
---------------------------------------------------------------------------
$0-$199............................. -$1,638 -$1,740 -$1,843 -$1,945
200-399............................. -1,563 -1,665 -1,768 -1,870
400-599............................. -1,513 -1,615 -1,718 -1,820
600-799............................. -1,463 -1,565 -1,668 -1,770
800-999............................. -1,413 -1,515 -1,618 -1,720
1,000-1,199......................... -1,363 -1,465 -1,568 -1,670
1,200-1,399......................... -1,313 -1,415 -1,518 -1,620
1,400-1,599......................... -1,263 -1,365 -1,468 -1,570
1,600-1,799......................... -1,213 -1,315 -1,418 -1,520
1,800-1,999......................... -1,163 -1,265 -1,368 -1,470
2,000-2,199......................... -1,113 -1,215 -1,318 -1,420
2,200-2,399......................... -1,063 -1,165 -1,268 -1,370
2,400-2,599......................... -1,013 -1,115 -1,218 -1,320
2,600-2,799......................... -963 -1,065 -1,168 -1,270
2,800-2,999......................... -913 -1,015 -1,118 -1,220
3,000-3,199......................... -863 -965 -1,068 -1,170
3,200-3,399......................... -813 -915 -1,018 -1,120
3,400-3,599......................... -763 -865 -968 -1,070
3,600-3,799......................... -713 -815 -918 -1,020
3,800-3,999......................... -663 -765 -868 -970
4,000-4,199......................... -613 -715 -818 -920
4,200-4,399......................... -563 -665 -768 -870
4,400-4,599......................... -513 -615 -718 -820
4,600-4,799......................... -463 -565 -668 -770
4,800-4,999......................... -413 -515 -618 -720
5,000-5,199......................... -363 -465 -568 -670
5,200-5,399......................... -313 -415 -518 -620
5,400-5,599......................... -263 -365 -468 -570
5,600-5,799......................... -213 -315 -418 -520
5,800-5,999......................... -163 -265 -368 -470
6,000-6,199......................... -113 -215 -318 -420
6,200-6,399......................... -63 -165 -268 -370
6,400-6,599......................... -13 -115 -218 -320
6,600-6,799......................... 37 -65 -168 -270
6,800-6,999......................... 87 -15 -118 -220
7,000-7,199......................... 137 35 -68 -170
7,200-7,399......................... 187 85 -18 -120
7,400-7,599......................... 237 135 32 -70
7,600-7,799......................... 287 185 82 -20
7,800-7,999......................... 337 235 132 30
8,000-8,199......................... 387 285 182 80
8,200-8,399......................... 437 335 232 130
8,400-8,599......................... 487 385 282 180
8,600-8,799......................... 537 435 332 230
8,800-8,999......................... 587 485 382 280
9,000-9,199......................... 637 535 432 330
9,200-9,399......................... 687 585 482 380
9,400-9,599......................... 737 635 532 430
[[Page 446]]
9,600-9,799......................... 787 685 582 480
9,800-9,999......................... 837 735 632 530
10,000-10,199....................... 887 785 682 580
10,200-10,399....................... 937 835 732 630
10,400-10,599....................... 987 885 782 680
10,600-10,799....................... 1,037 935 832 730
10,800-10,999....................... 1,087 985 882 780
11,000-11,199....................... 1,137 1,035 932 830
11,200-11,399....................... 1,187 1,085 982 880
----------------------------------------------------------------------------------------------------------------
TABLE 4.--PELL GRANT PAYMENT SCHEDULE
Single Independent Students
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$0-2,000 $2,001-2,200 $2,201-2,400 $2,401-2,600 $2,601-2,800
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $2,750 $2,447 $2,137 $1,826 $1,515
200-399.................................................. 2,825 2,522 2,212 1,901 1,590
400-599.................................................. 2,875 2,572 2,262 1,951 1,640
600-799.................................................. 2,925 2,622 2,312 2,001 1,690
800-999.................................................. 2,975 2,672 2,362 2,051 1,740
1,000-1,199.............................................. 3,025 2,722 2,412 2,101 1,790
1200-1,399............................................... 3,075 2,772 2,462 2,151 1,840
1400-1,599............................................... 3,125 2,822 2,512 2,201 1,890
1,600-1,799.............................................. 3,175 2,872 2,562 2,251 1,940
1,800-1,999.............................................. 3,225 2,922 2,612 2,301 1,990
2,000-2,199.............................................. 3,275 2,972 2,662 2,351 2,040
2,200-2,399.............................................. 3,325 3,022 2,712 2,401 2,090
2,400-2,599.............................................. 3,375 3,072 2,762 2,451 2,140
2,600-2,799.............................................. 3,425 3,122 2,812 2,501 2,190
2,800-2,999.............................................. 3,475 3,172 2,862 2,551 2,240
3,000-3,199.............................................. 3,525 3,222 2,912 2,601 2,290
3,200-3,399.............................................. 3,575 3,272 2,962 2,651 2,340
3,400-3,599.............................................. 3,625 3,322 3,012 2,701 2,390
3,600-3,799.............................................. 3,675 3,372 3,062 2,751 2,440
3,800-3,999.............................................. 3,725 3,422 3,112 2,801 2,490
4,000-4,199.............................................. 3,775 3,472 3,162 2,851 2,540
4,200-4,399.............................................. 3,825 3,522 3,212 2,901 2,590
4,400-4,599.............................................. 3,875 3,572 3,262 2,951 2,640
4,600-4,799.............................................. 3,925 3,622 3,312 3,001 2,690
4,800-4,999.............................................. 3,975 3,672 3,362 3,051 2,740
5,000-5,199.............................................. 4,025 3,722 3,412 3,101 2,790
5,200-5,399.............................................. 4,075 3,772 3,462 3,151 2,840
5,400-5,599.............................................. 4,125 3,822 3,512 3,201 2,890
5,600-5,799.............................................. 4,175 3,872 3,562 3,251 2,940
5,800-5,999.............................................. 4,225 3,922 3,612 3,301 2,990
6,000-6,199.............................................. 4,275 3,972 3,662 3,351 3,040
6,200-6,399.............................................. 4,325 4,022 3,712 3,401 3,090
6,400-6,599.............................................. 4,375 4,072 3,762 3,451 3,140
6,600-6,799.............................................. 4,425 4,122 3,812 3,501 3,190
6,800-6,999.............................................. 4,475 4,172 3,862 3,551 3,240
7,000-7,199.............................................. 4,525 4,222 3,912 3,601 3,290
7,200-7,399.............................................. 4,575 4,272 3,962 3,651 3,340
7,400-7,599.............................................. 4,625 4,322 4,012 3,701 3,390
7,600-7,799.............................................. 4,675 4,372 4,062 3,751 3,440
7,800-7,999.............................................. 4,725 4,422 4,112 3,801 3,490
8,000-8,199.............................................. 4,775 4,472 4,162 3,851 3,540
8,200-8,399.............................................. 4,825 4,522 4,212 3,901 3,590
8,400-8,599.............................................. 4,875 4,572 4,262 3,951 3,640
8,600-8,799.............................................. 4,925 4,622 4,312 4,001 3,690
8,800-8,999.............................................. 4,975 4,672 4,362 4,051 3,740
9,000-9,199.............................................. 5,025 4,722 4,412 4,101 3,790
9,200-9,399.............................................. 5,075 4,772 4,462 4,151 3,840
9,400-9,599.............................................. 5,125 4,822 4,512 4,201 3,890
9,600-9,799.............................................. 5,175 4,872 4,562 4,251 3,940
9,800-9,999.............................................. 5,225 4,922 4,612 4,301 3,990
10,000-10,199............................................ 5,275 4,972 4,662 4,351 4,040
10,200-10,399............................................ 5,325 5,022 4,712 4,401 4,090
10,400-10,599............................................ 5,375 5,072 4,762 4,451 4,140
10,600-10,799............................................ 5,425 5,122 4,812 4,501 4,190
10,800-10,999............................................ 5,475 5,172 4,862 4,551 4,240
11,000-11,199............................................ 5,525 5,222 4,912 4,601 4,290
11,200-11,399............................................ 5,575 5,272 4,962 4,651 4,340
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 4.--PELL GRANT PAYMENT SCHEDULE--Continued
Single Independent Students
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$2,801-3,000 $3,001-3,200 $3,201-3,400 $3,401-3,600 $3,601-3,800
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. $1,205 $894 $584 $273 -$38
200-399.................................................. 1,280 969 659 348 37
400-599.................................................. 1,330 1,019 709 398 87
600-799.................................................. 1,380 1,069 759 448 137
800-999.................................................. 1,430 1,119 809 498 187
1,000-1,199.............................................. 1,480 1,169 859 548 237
1,200-1,399.............................................. 1,530 1,219 909 598 287
1,400-1,599.............................................. 1,580 1,269 959 648 337
1,600-1,799.............................................. 1,630 1,319 1,009 698 387
1,800-1,999.............................................. 1,680 1,369 1,059 748 437
2,000-2,199.............................................. 1,730 1,419 1,109 798 487
2,200-2,399.............................................. 1,780 1,469 1,159 848 537
2,400-2,599.............................................. 1,830 1,519 1,209 898 587
2,600-2,799.............................................. 1,880 1,569 1,259 948 637
[[Page 447]]
2,800-2,999.............................................. 1,930 1,619 1,309 998 687
3,000-3,199.............................................. 1,980 1,669 1,359 1,048 737
3,200-3,399.............................................. 2,030 1,719 1,409 1,098 787
3,400-3,599.............................................. 2,080 1,769 1,459 1,148 837
3,600-3,799.............................................. 2,130 1,819 1,509 1,198 887
3,800-3,999.............................................. 2,180 1,869 1,559 1,248 937
4,000-4,199.............................................. 2,230 1,919 1,609 1,298 987
4,200-4,399.............................................. 2,280 1,969 1,659 1,348 1,037
4,400-4,599.............................................. 2,330 2,019 1,709 1,398 1,087
4,600-4,799.............................................. 2,380 2,069 1,759 1,448 1,137
4,800-4,999.............................................. 2,430 2,119 1,809 1,498 1,187
5,000-5,199.............................................. 2,480 2,169 1,859 1,548 1,237
5,200-5,399.............................................. 2,530 2,219 1,909 1,598 1,287
5,400-5,599.............................................. 2,580 2,269 1,959 1,648 1,337
5,600-5,799.............................................. 2,630 2,319 2,009 1,698 1,387
5,800-5,999.............................................. 2,680 2,369 2,059 1,748 1,437
6,000-6,199.............................................. 2,730 2,419 2,109 1,798 1,487
6,200-6,399.............................................. 2,780 2,469 2,159 1,848 1,537
6,400-6,599.............................................. 2,830 2,519 2,209 1,898 1,587
6,600-6,799.............................................. 2,880 2,569 2,259 1,948 1,637
6,800-6,999.............................................. 2,930 2,619 2,309 1,998 1,687
7,000-7,199.............................................. 2,980 2,669 2,359 2,048 1,737
7,200-7,399.............................................. 3,030 2,719 2,409 2,098 1,787
7,400-7,599.............................................. 3,080 2,769 2,459 2,148 1,837
7,600-7,799.............................................. 3,130 2,819 2,509 2,198 1,887
7,800-7,999.............................................. 3,180 2,869 2,559 2,248 1,937
8,000-8,199.............................................. 3,230 2,919 2,609 2,298 1,987
8,200-8,399.............................................. 3,280 2,969 2,659 2,348 2,037
8,400-8,599.............................................. 3,330 3,019 2,709 2,398 2,087
8,600-8,799.............................................. 3,380 3,069 2,759 2,448 2,137
8,800-8,999.............................................. 3,430 3,119 2,809 2,498 2,187
9,000-9,199.............................................. 3,480 3,169 2,859 2,548 2,237
9,200-9,399.............................................. 3,530 3,219 2,909 2,598 2,287
9,400-9,599.............................................. 3,580 3,269 2,959 2,648 2,337
9,600-9,799.............................................. 3,630 3,319 3,009 2,698 2,387
9,800-9,999.............................................. 3,680 3,369 3,059 2,748 2,437
10,000-10,199............................................ 3,730 3,419 3,109 2,798 2,487
10,200-10,399............................................ 3,780 3,469 3,159 2,848 2,537
10,400-10,599............................................ 3,830 3,519 3,209 2,898 2,587
10,600-10,799............................................ 3,880 3,569 3,259 2,948 2,637
10,800-10,999............................................ 3,930 3,619 3,309 2,998 2,687
11,000-11,199............................................ 3,980 3,669 3,359 3,048 2,737
11,200-11,399............................................ 4,030 3,719 3,409 3,098 2,787
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 4.--PELL GRANT PAYMENT SCHEDULE--Continued
Single Independent Students
----------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ---------------------------------------------------------------------------
$3,801-4,000 $4,001-4,200 $4,201-4,400 $4,401-4,600
----------------------------------------------------------------------------------------------------------------
Then the award is:
---------------------------------------------------------------------------
$0-$199............................. -$348 -$659 -$970 -$1,280
200-399............................. -273 -584 -895 -1,205
400-599............................. -223 -534 -845 -1,155
600-799............................. -173 -484 -795 -1,105
800-999............................. -123 -434 -745 -1,055
1,000-1,199......................... -73 -384 -695 -1,005
1,200-1,399......................... -23 -334 -645 -955
1,400-1,599......................... 27 -284 -595 -905
1,600-1,799......................... 77 -234 -545 -855
1,800-1,999......................... 127 -184 -495 -805
2,000-2,199......................... 177 -134 -445 -755
2,200-2,399......................... 227 -84 -395 -705
2,400-2,599......................... 277 -34 -345 -655
2,600-2,799......................... 327 16 -295 -605
2,800-2,999......................... 377 66 -245 -555
3,000-3,199......................... 427 116 -195 -505
3,200-3,399......................... 477 166 -145 -455
3,400-3,599......................... 527 216 -95 -405
3,600-3,799......................... 577 266 -45 -355
3,800-3,999......................... 627 316 5 -305
4,000-4,199......................... 677 366 55 -255
4,200-4,399......................... 727 416 105 -205
4,400-4,599......................... 777 466 155 -155
4,600-4,799......................... 827 516 205 -105
4,800-4,999......................... 877 566 255 -55
5,000-5,199......................... 927 616 305 -5
5,200-5,399......................... 977 666 355 45
5,400-5,599......................... 1,027 716 405 95
5,600-5,799......................... 1,077 766 455 145
5,800-5,999......................... 1,127 816 505 195
6,000-6,199......................... 1,177 866 555 245
6,200-6,399......................... 1,227 916 605 295
6,400-6,599......................... 1,277 966 655 345
6,600-6,799......................... 1,327 1,016 705 395
6,800-6,999......................... 1,377 1,066 755 445
7,000-7,199......................... 1,427 1,116 805 495
7,200-7,399......................... 1,477 1,166 855 545
7,400-7,599......................... 1,527 1,216 905 595
7,600-7,799......................... 1,577 1,266 955 645
7,800-7,999......................... 1,627 1,316 1,005 695
8,000-8,199......................... 1,677 1,366 1,055 745
8,200-8,399......................... 1,727 1,416 1,105 795
8,400-8,599......................... 1,777 1,466 1,155 845
8,600-8,799......................... 1,827 1,516 1,205 895
8,800-8,999......................... 1,877 1,566 1,255 945
9,000-9,199......................... 1,927 1,616 1,305 995
9,200-9,399......................... 1,977 1,666 1,355 1,045
9,400-9,599......................... 2,027 1,716 1,405 1,095
9,600-9,799......................... 2,077 1,766 1,455 1,145
9,800-9,999......................... 2,127 1,816 1,505 1,195
10,000-10,199....................... 2,177 1,866 1,555 1,245
10,200-10,399....................... 2,227 1,916 1,605 1,295
[[Page 448]]
10,400-10,599....................... 2,277 1,966 1,655 1,345
10,600-10,799....................... 2,327 2,016 1,705 1,395
10,800-10,999....................... 2,377 2,066 1,755 1,445
11,000-11,199....................... 2,427 2,116 1,805 1,495
11,200-11,399....................... 2,477 2,166 1,855 1,545
----------------------------------------------------------------------------------------------------------------
TABLE 4.--PELL GRANT PAYMENT SCHEDULE--Continued
Single Independent Students
--------------------------------------------------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ----------------------------------------------------------------------------------------------
$4,601-4,800 $4,801-5,000 $5,001-5,200 $5,201-5,400 $5,401-5,600
--------------------------------------------------------------------------------------------------------------------------------------------------------
Then the award is:
----------------------------------------------------------------------------------------------
$0-$199.................................................. -$1,591 -$2,017 -$2,332 -$2,647 -$2,962
200-399.................................................. -1,516 -1,942 -2,257 -2,572 -2,887
400-599.................................................. -1,466 -1,892 -2,207 -2,522 -2,837
600-799.................................................. -1,416 -1,842 -2,157 -2,472 -2,787
800-999.................................................. -1,366 -1,792 -2,107 -2,422 -2,737
1,000-1,199.............................................. -1,316 -1,742 -2,057 -2,372 -2,687
1,200-1,399.............................................. -1,266 -1,692 -2,007 -2,322 -2,637
1,400-1,599.............................................. -1,216 -1,642 -1,957 -2,272 -2,587
1,600-1,799.............................................. -1,166 -1,592 -1,907 -2,222 -2,537
1,800-1,999.............................................. -1,116 -1,542 -1,857 -2,172 -2,487
2,000-2,199.............................................. -1,066 -1,492 -1,807 -2,122 -2,437
2,200-2,399.............................................. -1,016 -1,442 -1,757 -2,072 -2,387
2,400-2,599.............................................. -966 -1,392 -1,707 -2,022 -2,337
2,600-2,799.............................................. -916 -1,342 -1,657 -1,972 -2,287
2,800-2,999.............................................. -866 -1,292 -1,607 -1,922 -2,237
3,000-3,199.............................................. -816 -1,242 -1,557 -1,872 -2,187
3,200-3,399.............................................. -766 -1,192 -1,507 -1,822 -2,137
3,400-3,599.............................................. -716 -1,142 -1,457 -1,772 -2,087
3,600-3,799.............................................. -666 -1,092 -1,407 -1,722 -2,037
3,800-3,999.............................................. -616 -1,042 -1,357 -1,672 -1,987
4,000-4,199.............................................. -566 -992 -1,307 -1,622 -1,937
4,200-4,399.............................................. -516 -942 -1,257 -1,572 -1,887
4,400-4,599.............................................. -466 -892 -1,207 -1,522 -1,837
4,600-4,799.............................................. -416 -842 -1,157 -1,472 -1,787
4,800-4,999.............................................. -366 -792 -1,107 -1,422 -1,737
5,000-5,199.............................................. -316 -742 -1,057 -1,372 -1,687
5,200-5,399.............................................. -266 -692 -1,007 -1,322 -1,637
5,400-5,599.............................................. -216 -642 -957 -1,272 -1,587
5,600-5,799.............................................. -166 -592 -907 -1,222 -1,537
5,800-5,999.............................................. -116 -542 -857 -1,172 -1,487
6,000-6,199.............................................. -66 -492 -807 -1,122 -1,437
6,200-6,399.............................................. -16 -442 -757 -1,072 -1,387
6,400-6,599.............................................. 34 -392 -707 -1,022 -1,337
6,600-6,799.............................................. 84 -342 -657 -972 -1,287
6,800-6,999.............................................. 134 -292 -607 -922 -1,237
7,000-7,199.............................................. 184 -242 -557 -872 -1,187
7,200-7,399.............................................. 234 -192 -507 -822 -1,137
7,400-7,599.............................................. 284 -142 -457 -772 -1,087
7,600-7,799.............................................. 334 -92 -407 -722 -1,037
7,800-7,999.............................................. 384 -42 -357 -672 -987
8,000-8,199.............................................. 434 8 -307 -622 -937
8,200-8,399.............................................. 484 58 -257 -572 -887
8,400-8,599.............................................. 534 108 -207 -522 -837
8,600-8,799.............................................. 584 158 -157 -472 -787
8,800-8,999.............................................. 634 208 -107 -422 -737
9,000-9,199.............................................. 684 258 -57 -372 -687
9,200-9,399.............................................. 734 308 -7 -322 -637
9,400-9,599.............................................. 784 358 43 -272 -587
9,600-9,799.............................................. 834 408 93 -222 -537
9,800-9,999.............................................. 884 458 143 -172 -487
10,000-10,199............................................ 934 508 193 -122 -437
10,200-10,399............................................ 984 558 243 -72 -387
10,400-10,599............................................ 1,034 608 293 -22 -337
10,600-10,799............................................ 1,084 658 343 28 -287
10,800-10,999............................................ 1,134 708 393 78 -237
11,000-11,199............................................ 1,184 758 443 128 -187
11,200-11,399............................................ 1,234 808 493 178 -137
--------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 4.--PELL GRANT PAYMENT SCHEDULE--Continued
Single Independent Students
----------------------------------------------------------------------------------------------------------------
And expected family contribution is:
If tuition is: ---------------------------------------------------------------------------
$5,601-5,800 $5,801-6,000 $6,001-6,200 $6,201-6,400
----------------------------------------------------------------------------------------------------------------
Then the award is:
---------------------------------------------------------------------------
$0-$199............................. -$3,276 -$3,591 -$3,906 -$4,220
200-399............................. -3,201 -3,516 -3,831 -4,145
400-599............................. -3,151 -3,466 -3,781 -4,095
600-799............................. -3,101 -3,416 -3,731 -4,045
800-999............................. -3,051 -3,366 -3,681 -3,995
1,000-1,199......................... -3,001 -3,316 -3,631 -3,945
1,200-1,399......................... -2,951 -3,266 -3,581 -3,895
1,400-1,599......................... -2,901 -3,216 -3,531 -3,845
1,600-1,799......................... -2,851 -3,166 -3,481 -3,795
1,800-1,999......................... -2,801 -3,116 -3,431 -3,745
2,000-2,199......................... -2,751 -3,066 -3,381 -3,695
2,200-2,399......................... -2,701 -3,016 -3,331 -3,645
2,400-2,599......................... -2,651 -2,966 -3,281 -3,595
2,600-2,799......................... -2,601 -2,916 -3,231 -3,545
2,800-2,999......................... -2,551 -2,866 -3,181 -3,495
3,000-3,199......................... -2,501 -2,816 -3,131 -3,445
3,200-3,399......................... -2,451 -2,766 -3,081 -3,395
3,400-3,599......................... -2,401 -2,716 -3,031 -3,345
[[Page 449]]
3,600-3,799......................... -2,351 -2,666 -2,981 -3,295
3,800-3,999......................... -2,301 -2,616 -2,931 -3,245
4,000-4,199......................... -2,251 -2,566 -2,881 -3,195
4,200-4,399......................... -2,201 -2,516 -2,831 -3,145
4,400-4,599......................... -2,151 -2,466 -2,781 -3,095
4,600-4,799......................... -2,101 -2,416 -2,731 -3,045
4,800-4,999......................... -2,051 -2,366 -2,681 -2,995
5,000-5,199......................... -2,001 -2,316 -2,631 -2,945
5,200-5,399......................... -1,951 -2,266 -2,581 -2,895
5,400-5,599......................... -1,901 -2,216 -2,531 -2,845
5,600-5,799......................... -1,851 -2,166 -2,481 -2,795
5,800-5,999......................... -1,801 -2,116 -2,431 -2,745
6,000-6,199......................... -1,751 -2,066 -2,381 -2,695
6,200-6,399......................... -1,701 -2,016 -2,331 -2,645
6,400-6,599......................... -1,651 -1,966 -2,281 -2,595
6,600-6,799......................... -1,601 -1,916 -2,231 -2,545
6,800-6,999......................... -1,551 -1,866 -2,181 -2,495
7,000-7,199......................... -1,501 -1,816 -2,131 -2,445
7,200-7,399......................... -1,451 -1,766 -2,081 -2,395
7,400-7,599......................... -1,401 -1,716 -2,031 -2,345
7,600-7,799......................... -1,351 -1,666 -1,981 -2,295
7,800-7,999......................... -1,301 -1,616 -1,931 -2,245
8,000-8,199......................... -1,251 -1,566 -1,881 -2,195
8,200-8,399......................... -1,201 -1,516 -1,831 -2,145
8,400-8,599......................... -1,151 -1,466 -1,781 -2,095
8,600-8,799......................... -1,101 -1,416 -1,731 -2,045
8,800-8,999......................... -1,051 -1,366 -1,681 -1,995
9,000-9,199......................... -1,001 -1,316 -1,631 -1,945
9,200-9,399......................... -951 -1,266 -1,581 -1,895
9,400-9,599......................... -901 -1,216 -1,531 -1,845
9,600-9,799......................... -851 -1,166 -1,481 -1,795
9,800-9,999......................... -801 -1,116 -1,431 -1,745
10,000-10,199....................... -751 -1,066 -1,381 -1,695
10,200-10,399....................... -701 -1,016 -1,331 -1,645
10,400-10,599....................... -651 -966 -1,281 -1,595
10,600-10,799....................... -601 -916 -1,231 -1,545
10,800-10,999....................... -551 -866 -1,181 -1,495
11,000-11,199....................... -501 -816 -1,131 -1,445
11,200-11,399....................... -451 -766 -1,081 -1,395
----------------------------------------------------------------------------------------------------------------
``(C) The Secretary shall publish the tables required by
subparagraph (B) not later than the date on which the
Secretary publishes the maximum grant amount under
subparagraph (B)(ii). Such tables shall apply to Pell Grant
determinations for the academic year that begins in the
succeeding calendar year.
``(D) For the purpose of this paragraph, the term `tuition'
means the tuition and fees specified in subsection (l) of
such section 472.''.
(5) Section 411(b)(4) of the Act is amended by striking
``411F'' and inserting ``472''.
(6) Section 411(b)(5) of the Act is amended by striking
``$200'' and inserting ``$400, except that, for a student
attending on a less-than-half-time basis, no basic grant
shall be awarded if the amount so determined is less than
$200''.
(e) Eligibility of Less-Than-Half-Time Students.--Section
411(b) of the Act is further amended by striking paragraphs
(6) and (7) and inserting the following:
``(6) No basic grant shall be awarded under this subpart to
any individual who is incarcerated in any Federal or State
penal institution.''.
(f) Period of Eligibility.--Section 411(c)(1) is amended by
striking everything following ``except that'' and inserting
``any period during which the student is enrolled in a
noncredit or remedial course of study as defined in paragraph
(2) shall not be counted for the purpose of this
paragraph.''.
(g) Eligibility for Study Abroad.--Section 411(c)(2) of the
Act is amended by adding at the end thereof the following new
sentence: ``Nothing in this section shall exclude from
eligibility programs of study abroad that are approved for
credit by the institution.''.
(h) Eligibility Index.--Section 411(f) of the Act is
amended by striking ``an estimate of'' and inserting ``as a
part of its regular output document''.
(i) Insufficient Appropriations.--Section 411(g) of the Act
(20 U.S.C. 1070a(g)) is amended to read as follows:
``(g) Insufficient Appropriations.--If, for any fiscal
year, the funds appropriated for payments under this subpart
are insufficient to satisfy fully all entitlements, as
calculated under subsection (b) (but at the maximum grant
level specified in such apprpriation), the Secretary shall
promptly transmit a notice of such insufficiency to each
House of the Congress, and identify in such notice the
additional amount that would be required to be appropriated
to satisfy fully all entitlements (as so calculated at such
maximum grant level).''.
(j) Treatment of Recipients.--Section 411(i) of the Act is
amended--
(1) by striking ``Noncontractor Status of Institutions''
and inserting ``Treatment of Institutions and Students Under
Other Laws''; and
(2) by adding at the end the following new sentence:
``Recipients of Pell Grants shall not be considered to be
individual grantees for purposes of part D of title V of
Public Law 100-690.''.
SEC. 412. UNIFICATION OF NEEDS ANALYSIS SYSTEMS.
Subpart 1 of part A of title IV of the Act is amended by
striking sections 411A through 411F.
Subpart 2--Federal Supplemental Educational Opportunity Grants
SEC. 413. AMENDMENTS TO SUBPART 2 OF PART A.
(a) Title of Program.--The heading of subpart 2 of part A
of title IV of the Act is amended to read as follows:
``Subpart 2--Federal Supplemental Educational Opportunity Grants''.
(b) Authorization of Appropriations.--Section 413A(b) of
the Act is amended to read as follows:
``(b) Authorization of Appropriations.--(1) For the purpose
of enabling the Secretary to make payments to institutions of
higher education which have made agreements with the
Secretary in accordance with section 413C(a), for use by such
institutions for payments to undergraduate students of
supplemental grants awarded to them under this subpart, there
are authorized to be appropriated $700,000,000 for fiscal
year 1993 and such sums as may be necessary for the 4
succeeding fiscal years.
``(2) Sums appropriated pursuant to this subsection for any
fiscal year shall be available for payments to institutions
until the end of the second fiscal year succeeding the fiscal
year for which they were appropriated.''.
(c) Eligibility for Study Abroad.--Section 413B(a)(1)(A) of
the Act is amended by inserting ``or in a program of study
abroad that is approved for credit by the institution'' after
``at the institution''.
(d) Federal Share.--Section 413C(a)(2) of the Act is
amended to read as follows:
``(2) agrees that the Federal share of awards under this
subpart will not exceed 75 percent, except that the Federal
share may be exceeded if the Secretary determines, pursuant
to regulations establishing objective criteria for such
determinations, that a larger Federal share is required to
further the purpose of this subpart; and''.
(e) Targeting.--Section 413C(c)(2) is amended to read as
follows:
``(2)(A) In carrying out paragraph (1) of this subsection,
each institution of higher education shall, in the agreement
made under section 487, assure that the selection procedures
will be designed to award supplemental grants under this
subpart, first, to students with exceptional need.
``(B) For the purpose of subparagraph (A), the term
`students with exceptional need' means students with the
greatest financial need as determined under part F of this
title.''.
(f) Use of Funds to Nontraditional Students.--Section
413C(d) of the Act is amended to read as follows:
``(d) Use of Funds to Nontraditional Students.--If the
institution's allocation under this subpart is directly or
indirectly based in part on the financial need demonstrated
by students who are (1) attending the institution less than
full time, (2) age 24 or older, (3) single parents, or (4)
independent students, a reasonable proportion of the
institution's allocation shall be made available to such
students.''.
(g) Transfer of Funds.--Section 413C(e) of the Act is
amended by striking ``, and may transfer such funds in
accordance with the provisions of section 488''.
[[Page 450]]
(h) Consequences of Failure To Award.--Section 413D(e) of
the Act is amended--
(1) by inserting ``(1)'' after the subsection heading; and
(2) by adding at the end the following new paragraph:
``(2) If under paragraph (1) of this subsection an
institution returns more than 10 percent of its allocation,
the institution's allocation for the next fiscal year shall
be reduced by the amount returned. The Secretary may waive
this paragraph for a specific institution if the Secretary
finds that enforcing it would be contrary to the interest of
the program.''.
Subpart 3--State Student Incentive Grants
SEC. 415. AMENDMENTS TO SUBPART 3 OF PART A.
(a) Eligibility for Study Abroad.--Section 415A(a) of the
Act is amended by--
(1) striking ``providing grants'' and inserting ``providing
grants (1)''; and
(2) striking ``and grants'' and inserting ``or
participating in programs of study abroad that are approved
for credit by the institution of higher education; or (2)''.
(b) Authorization of Appropriations.--Section 415A(b) of
the Act is amended to read as follows:
``(b) Authorization of Appropriations; Availability.--(1)
There are authorized to be appropriated $125,000,000 for
fiscal year 1993, and such sums as may be necessary for the 4
succeeding fiscal years.
``(2) Sums appropriated pursuant to paragraph (1) for any
fiscal year shall remain available for payments to States
under this subpart until the end of the fiscal year
succeeding the fiscal year for which such sums were
appropriated.''.
(c) Maximum Grant.--Section 415C(b)(2) of the Act is
amended by striking ``$2,500'' and inserting ``$5,000''.
(d) Covering Tuition Increases.--Section 415C(b)(8) of the
Act is amended by inserting before the semicolon the
following: ``, except that for years in which more than
$75,000,000 is appropriated, States shall receive more than
that amount designated in section 415B only if total State
appropriations for all need-based grants exceed the prior 3
years' average of the State's appropriations for all need-
based grants''.
(e) Allocation Rule.--Section 415C(b)(7) of the Act is
amended to read as follows:
``(7) provides that if the State's allocation under this
subpart is based in part on the financial need demonstrated
by students who are--
``(A) attending the institution less than full time,
``(B) age 24 or older,
``(C) single parents, or
``(D) independent students,
a reasonable proportion of the State's allocation shall be
made available to such students;''.
Subpart 4--Federal Early Outreach and Student Services Programs
SEC. 417. ESTABLISHMENT OF NEW SUBPART.
(a) Amendments.--Part A of title IV of the Act is amended--
(1) by repealing subpart 4;
(2) by redesignating subparts 1, 2, and 3, as subparts 2,
3, and 4, respectively;
(3) by redesignating section 401 as section 400; and
(4) by inserting after such section the following new
subpart:
``Subpart 1--Federal Early Outreach and Student Services Programs
``SEC. 401. FINDINGS.
``The Congress finds that--
``(1) the demands for services to qualified individuals
from disadvantaged backgrounds and students with disabilities
far exceeds currently available services;
``(2) success in secondary schools is an important
determinant of success of postsecondary education;
``(3) individuals must be served at younger ages to make
them successful in secondary school and postsecondary
education;
``(4) many elementary and secondary school students and
their parents are not aware of college opportunities and the
options for financing college early enough in their schooling
to allow them to study and plan for their graduation from
secondary school and to apply to colleges;
``(5) many potential college students do not complete
secondary school or pursue college education due to financial
barriers;
``(6) emerging demographic projections of children in
prekindergarten through high school age groups point to a
growing number who will likely experience such barriers;
``(7) new incentives must be found to promote school
performance and reduce the number of students who drop out
before completing secondary school by assuring that low-
income students and students with disabilities who complete
secondary school or the equivalent and are accepted into
college will have the opportunity to receive a college
education, and to inform students early in their education of
such opportunities;
``(8) for the well-being of the United States and in order
to develop the full potential of each citizen, all students,
including students with disabilities, and their families must
receive pertinent and thorough higher education counseling
and information on the availability and extent of student
financial assistance programs;
``(9) information on postsecondary education opportunities,
with emphasis on precollege guidance and college admission
counseling should be made readily available to school
counselors, teachers (including vocational and special
education teachers), and school administrative staff;
``(10) all schools and public libraries should have
thorough and up-to-date information on financial assistance
programs;
``(11) schools should have access to information on various
types of precollege guidance counseling programs, including
what programs have been successful in what environments, such
as rural, suburban and urban, in order to fashion programs
that are most beneficial to their community;
``(12) counselors, teachers, and principals in schools
which have a low rate of students who continue on to higher
education should receive extra training in precollege
guidance and financial assistance opportunities, and
especially in early intervention programs; and
``(13) counseling and motivating students to strive for
postsecondary education opportunities will have the added
benefit of retaining more students in high school to complete
the work necessary to obtain their high school diplomas.
``CHAPTER 1--TRIO PROGRAMS
``SEC. 401A. PROGRAM AUTHORITY; AUTHORIZATION OF
APPROPRIATIONS.
``(a) Grants and Contracts Authorized.--The Secretary
shall, in accordance with the provisions of this chapter,
carry out a program of making grants and contracts designed
to identify qualified individuals from disadvantaged
backgrounds, to prepare them for a program of postsecondary
education, to provide support services for such students who
are pursuing programs of postsecondary education, to motivate
and prepare students for doctoral programs, and to train
individuals serving or preparing for service in programs and
projects so designed.
``(b) Eligible Grant and Contract Recipients.--For the
purposes described in subsection (a), the Secretary is
authorized, without regard to section 3709 of the Revised
Statutes (41 U.S.C. 5), to make grants to, and contracts
with, institutions of higher education, public and private
agencies and organizations, combinations of such
institutions, agencies, and organizations, and, in
exceptional circumstances, secondary schools for planning,
developing, or carrying out one or more of the services
assisted under this chapter.
``(c) Awarding Grants and Contracts.--(1) In making grants
and contracts under this chapter, the Secretary shall
consider the prior experience of service delivery under the
particular program for which funds are sought by each
applicant. For fiscal years after 1985, the level of
consideration given to prior experience shall not vary from
the level of consideration given this factor for fiscal year
1985.
``(2) The Secretary shall fund applications received under
this chapter in the order of the scores received in the peer
review process required under section 1210 as adjusted for
prior experience under section 401A(c)(1).
``(3) In any year in which appropriations permit, the
Secretary shall provide inflationary increases to
institutions continuing to sponsor projects under this
chapter. Such inflation adjustment shall reflect the rate of
increase in the Consumer Price Index.
``(4) After making the adjustment required in section
401A(c)(3), in any year in which the appropriations
authorized under this chapter exceed the prior year
appropriation as adjusted for inflation, the Secretary shall
use 80 percent of the amount appropriated above the current
services level to bring the award up to the minimum grant
level or the amount requested by the institution or agency,
whichever is less. The minimum grant level (A) for programs
authorized under section 401D or 401G, shall not be less than
$170,000 for fiscal year 1993; (B) for programs authorized
under section 401B or 401F shall not be less than $180,000
for fiscal year 1994; and (C) for programs authorized under
section 401C or 401E shall not be less than $190,000 for
fiscal year 1995.
``(5) Grants or contracts made under this chapter should be
for a period of five years, subject to continuing
appropriations allowing for such awards.
``(6) For institutions, agencies, and organizations
sponsoring projects authorized under this chapter, the
Secretary shall inform the institution, agency, or
organization regarding the status of their application for
continued funding at least 10 months prior to the expiration
of existing funding. For institutions, agencies, and
organizations seeking funding for a project under this
chapter not currently operated by the institution,
organization or agency, the Secretary shall inform the
institution, agency or organization regarding the status of
their application at least ten months prior to the proposed
start-up-date. The Secretary shall ensure that the start-up
date for new grants authorized under this chapter immediately
follows upon the termination of the preceding grant so that,
for successful applicants, no break in funding occurs.
``(d) Early Notification and Technical Training.--(1) The
Secretary shall provide notification about deadlines for
submission of applications to potential providers of programs
and projects assisted under this chapter including
institutions of higher education, community based
organizations, local educational agencies, and public and
private nonprofit organizations. The Secretary shall provide
such information no later than 120 days prior to the deadline
of submission for applications and shall consult national,
State, and regional organizations about candidates for
notification.
``(2) The Secretary shall provide technical training to
applicants for projects and programs authorized under this
chapter. Tech-
[[Page 451]]
nical training activities shall include the provision of
information on authorizing legislation, goals and objectives
of the program, required activities, eligibility
requirements, the application process and application
deadlines, and assistance in the development of program
proposals and the completion of program applications. Such
training shall be furnished at conferences, seminars, and
workshops to be conducted at no less than 10 sites throughout
the country to ensure that all areas of the country with
large concentrations of eligible participants are served.
``(e) Application Review Process.--(1) The Secretary shall
assure that, to the extent practicable, members of groups
underrepresented in higher education, including Blacks,
Hispanics, Native Americans, Asian Americans, Native American
Pacific Islanders (including Native Hawaiians), are
represented as readers of applications submitted under this
subpart in proportions which reflect their eligibility for
the programs and projects assisted under this chapter. The
Secretary shall also assure that persons from rural
backgrounds are represented as readers.
``(2) The Secretary shall assure that each application
submitted under this subpart is read by at least 3 outside
readers.
``(f) Applications for Grants and Contracts Under This
Chapter.--The Secretary shall not limit the number of
applications submitted by an institution, agency, or
organization under any program authorized under this chapter.
``(g) Authorization of Appropriations.--For the purpose of
making grants and contracts under this chapter, there are
authorized to be appropriated $750,000,000 for fiscal year
1993, and such sums as may be necessary for the 4 succeeding
fiscal years.
``(h) Definitions.--For the purpose of this chapter:
``(1) The term `first generation college student' means--
``(A) an individual both of whose parents did not complete
a baccalaureate degree; or
``(B) in the case of any individual who regularly resided
with and received support from only one parent, an individual
whose only such parent did not complete a baccalaureate
degree.
``(2) The term `low-income individual' means an individual
from a family whose taxable income for the preceding year did
not exceed 150 percent of an amount equal to the poverty
level determined by using criteria of poverty established by
the Bureau of the Census. For purposes of establishing
eligibility for the services under sections 401B and 401F
documentation that an individual is a low-income individual
may only include the following: a signed statement from the
parent or legal guardian, verification from another
governmental source, a signed financial aid application, a
signed Federal tax return, or for individuals over eighteen
and for individuals defined as independent students under
section 480, a signed statement from the individual. For
purposes of establishing eligibility for services under
section 401C documentation that an individual is a low-income
individual may only include the following: a signed statement
from a parent or legal guardian, verification from another
governmental source, or a signed Federal income tax return.
For purposes of establishing eligibility for services under
sections 401D and 401E documentation that an individual is a
low-income individual may only include a signed financial aid
application.
``(3) No veteran shall be deemed ineligible to participate
in any program under this chapter by reason of such
individual's age who--
``(A) served on active duty for a period of more than 180
days, any part of which occurred after January 31, 1955, and
was discharged or released therefrom under conditions other
than dishonorable; or
``(B) served on active duty after January 31, 1955, and was
discharged or released therefrom because of a service
connected disability.
``(i) Coordination With Other Programs for Disadvantaged
Students.--The Secretary shall encourage coordination of
programs funded under this chapter with other programs for
disadvantaged students operated by the sponsoring institution
or agency, regardless of funding source. The Secretary shall
publish no regulation which limits an institution,
organization, or agency's ability to receive funding under
this subpart by virtue of its sponsorship of similar programs
regardless of funding source. The Secretary shall not require
a separate director for a project funded under this chapter
if the imposition of this requirement would hinder
coordination among projects funded under this chapter or of
similar projects funded under this chapter with projects
funded through other sources.
``SEC. 401B. TALENT SEARCH.
``(a) Program Authority.--The Secretary shall carry out a
program to be known as talent search which shall be
designed--
``(1) to identify qualified youths with potential for
education at the postsecondary level and to encourage such
youths to complete secondary school and to undertake a
program of postsecondary education;
``(2) to publicize the availability of student financial
assistance available to persons who pursue a program of
postsecondary education; and
``(3) to encourage persons who have not completed programs
of education at the secondary or postsecondary level, but who
have the ability to complete such programs, to reenter such
programs.
``(b) Permissible Services.--Any talent search project
assisted under this chapter may provide services such as--
``(1) academic advice and assistance in high school and
college course selection;
``(2) assistance in completing college admission and
financial aid applications;
``(3) assistance in preparing for college entrance
examinations;
``(4) guidance on high school reentry or entry to GED or
other alternative education programs for high school
dropouts;
``(5) personal and career counseling;
``(6) tutorial services;
``(7) exposure to college campuses as well as cultural
events, academic programs and other sites or activities not
usually available to disadvantaged youth;
``(8) workshops and counseling for parents of students
served;
``(9) mentoring programs involving elementary or secondary
school teachers, faculty members at institutions of higher
education, students, or any combination of such persons; and
``(10) programs and activities as described in paragraphs
(1) through (9) which are specially designed for students of
limited English proficiency.
``(c) Requirements for Approval of Applications.--In
approving applications for talent search projects under this
chapter for any fiscal year the Secretary shall--
``(1) require an assurance that not less than two-thirds of
the individuals participating in the project proposed to be
carried out under any application be low-income individuals
who are first generation college students;
``(2) require that such participants be persons who either
have completed 5 years of elementary education or are at
least 11 years of age but not more than 27 years of age,
unless the imposition of any such limitation with respect to
any person would defeat the purposes of this section or the
purposes of section 401F;
``(3) require an assurance that individuals participating
in the project proposed in the application do not have access
to services from another project funded under this section or
under section 401F; and
``(4) require an assurance that the project will be located
in a setting accessible to the persons proposed to be served
by the project.
``SEC. 401C. UPWARD BOUND.
``(a) Program Authority.--The Secretary shall carry out a
program to be known as upward bound which shall be designed
to generate skills and motivation necessary for success in
education beyond high school.
``(b) Permissible Services.--Any upward bound project
assisted under this chapter may provide services such as--
``(1) instruction in reading, writing, study skills,
mathematics, and other subjects necessary for success beyond
high school;
``(2) personal counseling;
``(3) academic advice and assistance in high school course
selection;
``(4) tutorial services;
``(5) exposure to cultural events, academic programs, and
other activities not usually available to disadvantaged
youth;
``(6) activities designed to acquaint youths participating
in the project with the range of career options available to
them;
``(7) instruction designed to prepare youths participating
in the project for careers in which persons from
disadvantaged backgrounds are particularly underrepresented;
``(8) on-campus residential programs;
``(9) mentoring programs involving elementary or secondary
school teachers, faculty members at institutions of higher
education, students, or any combination of such persons; and
``(10) programs and activities as described in paragraphs
(1) through (9) which are specially designed for students of
limited English proficiency.
``(c) Required Services.--Any upward bound project assisted
under this chapter which has received funding for two or more
years shall include mathematics through precalculus, a
minimum of one laboratory science, and composition and
literature as part of their core curriculum.
``(d) Requirements for Approval of Applications.--In
approving applications for upward bound projects under this
chapter for any fiscal year, the Secretary shall--
``(1) require an assurance that not less than two-thirds of
the youths participating in the project proposed to be
carried out under any application be low-income individuals
who are first generation college students;
``(2) require an assurance that the remaining youths
participating in the project proposed to be carried out under
any application be either low-income individuals or first
generation college students;
``(3) 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 high
school; and
``(4) require that such participants be persons who have
completed 8 years of elementary education and are at least 13
years of age but not more than 19 years of age, unless the
imposition of any such limitation would defeat the purposes
of this section.
``(e) Maximum Stipends.--Youths participating in a project
proposed to be carried out under any application may be paid
stipends not in excess of $60 per month during June, July,
and August, and not in excess of $40 per month during the
remaining period of the year.
``SEC. 401D. STUDENT SUPPORT SERVICES.
``(a) Program Authority.--The Secretary shall carry out a
program to be known as
[[Page 452]]
student support services which shall be designed--
``(1) to increase college retention and graduation rates
for eligible students;
``(2) to increase the transfer rates of eligible students
from two year or four year institutions; and
``(3) to foster an institutional climate supportive of the
success of low-income and first generation college students
and individuals with disabilities.
``(b) Permissible Services.--A student support services
project assisted under this chapter may provide services such
as--
``(1) instruction in reading, writing, study skills,
mathematics, and other subjects necessary for success beyond
high school;
``(2) personal counseling;
``(3) academic advice and assistance in course selection;
``(4) tutorial services and counseling and peer counseling;
``(5) exposure to cultural events and academic programs not
usually available to disadvantaged students;
``(6) activities designed to acquaint students
participating in the project with the range of career options
available to them;
``(7) activities designed to assist students participating
in the project in securing admission and financial assistance
for enrollment in graduate and professional programs;
``(8) activities designed to assist students currently
enrolled in 2-year institutions in securing admission and
financial assistance for enrollment in a four-year program of
postsecondary education;
``(9) mentoring programs involving either elementary/
secondary school teachers, faculty members at institutions of
higher education, students, or any combination of such
persons; and
``(10) programs and activities as described in paragraphs
(1) through (9) which are specially designed for students of
limited English proficiency.
``(c) 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 either 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
high 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) require an assurance from the institution which is
the recipient of the grant or contract that each student
enrolled in the project will be offered sufficient financial
assistance to meet that student's full financial need.
``SEC. 401E. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHORITY.
``(a) Program Authority.--The Secretary shall carry out a
program to be known as the
`Ronald E. McNair Postbaccalaureate Achievement Program' that
shall be designed to provide disadvantaged college students
with effective preparation for doctoral study.
``(b) Services.--A postbaccalaureate achievement project
assisted under this section may provide services such as--
``(1) opportunities for research or other scholarly
activities at the institution or at graduate centers designed
to provide students with effective preparation for doctoral
study;
``(2) summer internships;
``(3) seminars and other educational activities designed to
prepare students for doctoral study;
``(4) tutoring;
``(5) academic counseling;
``(6) activities designed to assist students participating
in the project in securing admission to and financial
assistance for enrollment in graduate programs;
``(7) mentoring programs involving elementary or secondary
school teachers, faculty members at institutions of higher
education, students, or any combination of such persons; and
``(8) exposure to cultural events and academic programs not
usually available to disadvantaged students.
``(c) Requirements.--In approving applications for
postbaccalaureate achievement projects assisted under this
section for any fiscal year, the Secretary shall require--
``(1) an assurance that not less than two-thirds of the
individuals participating in the project proposed to be
carried out under any application be low-income individuals
who are first generation college students;
``(2) an assurance that the remaining persons participating
in the project proposed to be carried out be from a group
that is underrepresented in graduate education;
``(3) an assurance that participants be enrolled in a
degree program at an eligible institution in accordance with
the provisions of section 487; and
``(4) an assurance that participants in summer research
internships have completed their sophomore year in
postsecondary education.
``(d) Award Considerations.--In addition to such other
selection criteria as may be prescribed by regulations, the
Secretary shall consider in making awards to institutions
under this section--
``(1) the quality of research and other scholarly
activities in which students will be involved;
``(2) the level of faculty involvement in the project and
the description of the research in which students will be
involved; and
``(3) the institution's plan for identifying and recruiting
participants including students enrolled in projects
authorized under this section.
``(e) Stipends.--Students participating in research under a
postbaccalaureate achievement project may receive stipends
not to exceed $2,400 per annum. In addition, costs for summer
room and board, summer tuition, and transportation to summer
programs may be paid.
``SEC. 401F. EDUCATIONAL OPPORTUNITY CENTERS.
``(a) Program Authority; Services Provided.--The Secretary
shall carry out a program to be known as educational
opportunity centers which shall be designed--
``(1) to provide information with respect to financial and
academic assistance available for individuals desiring to
pursue a program of postsecondary education; and
``(2) to provide assistance to such persons in applying for
admission to institutions at which a program of postsecondary
education is offered, including preparing necessary
applications for use by admissions and financial aid
officers.
``(b) Permissible Services.--An educational opportunity
center assisted under this chapter may provide services such
as--
``(1) public information campaigns designed to inform the
community regarding opportunities for postsecondary education
and training;
``(2) academic advice and assistance in course selection;
``(3) assistance in completing college admission and
financial aid applications;
``(4) assistance in preparing for college entrance
examinations;
``(5) guidance on high school reentry or entry to GED or
other alternative education programs for high school
dropouts;
``(6) personal counseling;
``(7) tutorial services;
``(8) career workshops and counseling;
``(9) mentoring programs involving elementary or secondary
school teachers, faculty members at institutions of higher
education, students, or any combination of such persons; and
``(10) programs and activities as described in paragraphs
(1) through (9) which are specially designed for students of
limited English proficiency.
``(c) Requirements for Approval of Applications.--In
approving applications for educational opportunity centers
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 be low-income individuals
who are first generation college students;
``(2) require that such participants be persons who are at
least nineteen years of age, unless the imposition of such
limitation with respect to any person would defeat the
purposes of this section or the purposes of section 401B; and
``(3) require an assurance that individuals participating
in the project proposed in the application do not have access
to services from another project funded under this section or
under section 401B.
``SEC. 401G. STAFF DEVELOPMENT ACTIVITIES.
``For the purpose of improving the operation of the
programs and projects authorized by this chapter, the
Secretary is authorized to make grants to institutions of
higher education and other public and private nonprofit
institutions and organizations to provide training for staff
and leadership personnel employed in, or preparing for
employment in, such programs and projects. Such training
shall include conferences, internships, seminars, workshops,
and the publication of manuals designed to improve the
operation of such programs and projects and shall be carried
out in the various regions of the Nation in order to ensure
that the training opportunities are appropriate to meet the
needs in the local areas being served by such programs and
projects. Such training shall be offered annually for new
directors of projects funded under this chapter as well as
annually on the following topics and other topics chosen by
the Secretary: legislative and regulatory requirements for
the operation of programs funded under this chapter,
assisting students in receiving adequate financial aid from
programs funded under this title and other programs, and the
design and operation of model programs for projects funded
under this chapter. Grants for the purposes of this section
shall be made only after consultation with regional and State
professional associations of persons having special knowledge
with respect to the needs and problems of such programs and
projects.
``SEC. 401H. OUTREACH GRANTS.
``For the purpose of better serving populations eligible
for programs and projects au-
[[Page 453]]
thorized under this subpart, the Secretary is authorized to
make grants to institutions of higher education, community-
based organizations and other public and private nonprofit
organizations to provide outreach to potential providers of
programs and projects authorized under this subpart including
institutions of higher education, community-based
organizations, local educational agencies, and other public
and private nonprofit organizations. Outreach activities
shall seek to inform potential providers that could serve
groups underrepresented in the program about authorizing
legislation, goals and objectives of the program, required
activities, eligibility requirements, the application process
and deadlines for submission of applications, and suggestions
for successful programs. Such activities shall include the
publication of informational materials, information
dissemination, and informational meetings.
``SEC. 401I. EVALUATION FOR PROJECT IMPROVEMENT.
``For the purpose of improving the operation of the
programs and projects authorized by this chapter, the
Secretary is authorized to make grants and contracts to
institutions of higher education and other public and private
institutions and organizations to evaluate the effectiveness
of the various programs authorized under this chapter in
meeting the purposes identified in the chapter. Such
evaluations shall identify institutional, community and
program practices particularly effective in increasing the
access of low-income and first generation college students to
postsecondary education, their preparation for postsecondary
education, and their success in postsecondary education. In
order to improve program effectiveness, the results of these
on-going evaluations shall be disseminated to similar
programs funded under this chapter as well as other
individuals concerned with the postsecondary access and
retention of low-income, first generation college students.
``CHAPTER 2--NATIONAL LIBERTY SCHOLARSHIPS AND PARTNERSHIPS PROGRAMS
``SEC. 403A. PROGRAMS AUTHORIZED.
``The Secretary is authorized, in accordance with the
requirements of this chapter, to establish--
``(1) a program to encourage States to provide or maintain
a guarantee to low-income students who obtain a high-school
diploma (or its equivalent), of the financial assistance
necessary to permit them to attend an institution of higher
education; and
``(2) a program to provide incentives to States, in
cooperation with local educational agencies, institutions of
higher education, and community organizations, to provide
additional counseling, outreach, and supportive services--
``(A) to elementary, middle, and secondary school students
who are at risk of dropping out of school; and
``(B) to students and their parents regarding their college
financing options.
``SEC. 403B. STATE ELIGIBILITY; STATE PLAN.
``(a) In General.--In order for a State to qualify for a
grant under this chapter, the State shall submit to the
Secretary a plan for carrying out its programs under this
chapter. Such plan shall be in such form, contain or be
accompanied by such information or assurances, and be
submitted at such time as the Secretary may require by
regulation.
``(b) Financial Aid Requirement.--The Secretary shall not
approve a plan submitted under subsection (a) for payments
under section 403E(a) unless such plan--
``(1) provides that the State will provide, from State,
local, or private funds, not less
than one-half the cost of the financial aid program required
by section 403C;
``(2) specifies the methods by which such share of the
costs will be paid;
``(3) designates as eligible for participation in the
program all qualified students; and
``(4) provides that the State will provide first preference
for payments of funds under subpart 3 of this part to those
students eligible for grants under section 403C.
``(c) Partnership Requirements.--The Secretary shall not
approve a plan submitted under subsection (a) for payments
under section 403E(b) unless such plan--
``(1) provides that the State will match, from State,
local, or private funds, the amount provided by section
403E(b) for the comprehensive mentoring, counseling,
outreach, and support service programs required by section
403D;
``(2) specifies the methods by which such share of the
costs will be paid;
``(3) includes provisions designed to assure that the State
education agency or State higher education agency will
administer the mentoring, counseling, outreach, and support
services program authorized by this chapter in the State;
``(4) includes provisions designed to assure that the
mentoring, counseling, outreach, and support services program
is comprehensive and addresses personal and educational needs
and financing options, each of which shall be designed to
ensure high school completion and college enrollment of at-
risk children; and
``(5) includes provisions designed to assure that funds
provided under section 403B(c)(1) shall supplement and not
supplant funds expended for existing State and local
programs.
``(d) Methods for Complying With Matching Requirement.--A
State may count toward the contribution required by
subsection (b)(1) the sum of--
``(1) the amount of the grants paid to students from State,
local, or private funds under section 403C; and
``(2) the amount of tuition, fees, room or board waived or
reduced for recipients of grants funded by section 403C.
``SEC. 403C. FINANCIAL AID PROGRAM.
``(a) In General.--In order to receive payments under
section 403E(a), a State shall establish or maintain a
financial assistance program that awards grants to students
in accordance with the requirements of this chapter.
``(b) Grant Amounts.--The maximum amount of the grant that
a qualified student in any participating State shall be
eligible to receive under this chapter shall be established
by the State. The minimum amount of the grant shall not be
less than 75 percent of the average cost of attendance for an
in-State student, in a 4-year program of instruction, at
public institutions of higher education in such State, as
determined in accordance with regulations prescribed by the
Secretary, except that the maximum grant shall be reduced by
the total amount of other grant assistance for which the
qualified student is eligible.
``(c) Grant Recipient Selection.--Selection of recipients
of these grants will be on the basis of substantial financial
need determined annually on the basis of criteria established
by the State and approved by the Secretary, except that all
recipients must satisfy the requirements of section 403G.
``SEC. 403D. PARTNERSHIP PROGRAM.
``(a) In General.--In order to receive payments under
section 403E(b), a State shall demonstrate to the
satisfaction of the Secretary that the State has increased
the aggregate amount expended by the State to provide
comprehensive mentoring, counseling, outreach, and supportive
services.
``(b) Programs Qualifying for Credit.--
``(1) Criteria.--The Secretary shall, by regulation,
establish criteria for determining whether comprehensive
mentoring, counseling, outreach, and supportive services
programs may be counted for purposes of subsection (a).
``(2) Permissible activities.--Examples of acceptable
activities include:
``(A) Activities designed to ensure high school completion
and college enrollment of at-risk children, including
identification of at-risk children, after school and summer
tutoring, assistance in obtaining summer jobs, academic
counseling, volunteer and parent involvement and former or
current scholarship recipients as mentor or peer counselors,
skills assessment, personal counseling, family counseling and
home visits, and staff development, and programs and
activities as described above which are specially designed
for students of limited English proficiency; and
``(B) Prefreshman summer programs that--
``(i) are at institutions of higher education that also
have programs of academic year supportive services for
disadvantaged students through projects authorized under
section 401D of this subpart or through comparable projects
funded by the State or other sources;
``(ii) assure the participation of students who qualify as
disadvantaged under the provisions of section 401D of this
part or who are eligible for comparable programs funded by
the State;
``(iii)(I) provide summer instruction in remedial,
developmental or supportive courses; (II) provide such summer
services as counseling, tutoring, or orientation; and (III)
provide grant aid to students to cover prefreshman summer
costs for books, supplies, living costs and personal
expenses; and
``(iv) assure that participating students will receive
financial aid during each academic year they are enrolled at
the participating institution after the prefreshman summer.
Such criteria shall exclude administrative and overhead
expenses.
``(c) Options for Participation in Partnerships.--In
establishing a partnership program, a State may include
participation of businesses, religious organizations,
community groups, institutions of higher education, nonprofit
and philanthropic organizations, and other organizations
which the Secretary deems appropriate.
``SEC. 403E. PAYMENT REQUIREMENTS.
``(a) Financial Aid Payments.--Upon submission by a State
of such documents as the Secretary may, by regulation,
require for demonstrating the total amount of grants awarded
in accordance with section 403C for a fiscal year, the
Secretary shall, from such State's allotment under section
403F for such fiscal year, pay to such State an amount equal
to not more than one-half of the total amount of such grants.
``(b) Payments for Partnerships.--
``(1) Upon submission by a State of such documents as the
Secretary may, by regulation, require for demonstrating the
total amount expended by the State in accordance with section
403D for a fiscal year, the Secretary shall, from such
State's allotment under section 403F for such fiscal year,
pay to such State an amount equal to not more than one-half
of the total amount so expended.
``(2) In computing the total amount expended by a State in
accordance with section 403D, the Secretary shall include
documented, targeted, long-term mentoring and counseling
provided by volunteers or paid staff of nonschool
organizations, including businesses, religious organizations,
community groups, postsecondary educational insti-
[[Page 454]]
tutions, nonprofit and philanthropic organizations, and other
organizations.
``SEC. 403F. ALLOTMENT.
``(a) Allotment Based on Title I ESEA Allocations.--From
the sums appropriated pursuant to section 403H, the Secretary
shall allot to each State an amount which bears the same
ratio to such sums as--
``(1) the amount allocated under section 1005 of the
Elementary and Secondary Education Act of 1965 to the local
education agencies in the State,
bears to--
``(2) the total amount allocated under such section to all
such agencies in all States.
``(b) 50 Percent Limit on Use for Section 403E.--No State
may use less than 25 percent or more than 50 percent of its
allotment for the comprehensive counseling, outreach, and
support services program authorized by section 403D.
``(c) Reallotment.--The amount of any State's allotment
under subsection (a) for any fiscal year which the Secretary
determines will not be required for such fiscal year for the
program of that State shall be available for reallotment from
time to time, on such dates during such year as the Secretary
may fix, to other States in proportion to the original
allotments to such States for such year, but with such
proportionate amount for any of such States being reduced to
the extent it exceeds the sum the Secretary estimates such
State needs and will be able to use for such year for
carrying out such programs. The total of such reductions
shall be similarly reallotted among the States whose
proportionate amounts were not so reduced.
``SEC. 403G. DEFINITIONS.
``As used in this chapter:
``(1) The term `qualified student' means a student--
``(A) who is less than 22 years old at time of first grant
award;
``(B) who (i) is receiving a Pell Grant for the academic
year for which the award is being made under this chapter, or
(ii) would be eligible to receive a Pell Grant for such
academic year, but for the student's attendance on a less
than half-time basis;
``(C) who receives a high school diploma or a certificate
of high school equivalence on or after January 1, 1993; and
``(D) who is enrolled or accepted for enrollment in a
program of instruction at an institution of higher education
as defined in section 481 and is located within the State's
boundaries; as a State option, States can offer grant program
portability for recipients who attend eligible higher
education institutions in States which participate in the
program authorized by section 403C.
``SEC. 403H. APPROPRIATIONS.
``There is authorized an appropriation to make grants under
this chapter $250,000,000 for fiscal year 1993 and such sums
as may be necessary for each of the four succeeding fiscal
years.
``CHAPTER 3--MODEL PROGRAM COMMUNITY PARTNERSHIP COUNSELING GRANTS
``SEC. 404A. MODEL PROGRAM GRANTS.
``(a) Program Authority.--From the amounts appropriated
under section 404C(b), the Secretary shall award grants to
develop model programs--
``(1) to counsel students, at an early age, about college
opportunities, precollege requirements, the college
admissions procedure, financial aid opportunities, and
student support services that are specially designed or
customized for use in specific geographic, social, and
cultural environments; or
``(2) which stimulate community partnerships with schools
by providing tutoring, mentoring, work experiences, and other
services which support making postsecondary education a
realistic goal for all students.
``(b) Priorities in Selection.--The Secretary shall give
priority to those model programs which are directed at areas
which have a high proportion of minority, limited English
proficiency, economically disadvantaged, disabled,
nontraditional, or at-risk students and those model programs
which serve these students from rural or urban environments.
``(c) Proposal Requirements.--
``(1) Tailoring.--To receive a grant under subsection
(a)(1), the proposal submitted to the Secretary shall
demonstrate that the counseling on college opportunities,
precollege requirements, the college admissions procedure,
and financial aid opportunities (including early intervention
counseling), is tailored to a specific geographic, social or
cultural environment.
``(2) Community partnerships.--To receive a grant under
subsection (a)(2), the proposal submitted to the Secretary
shall demonstrate the active involvement of a local
educational agency and at least one of the following:
``(A) local businesses,
``(B) labor organizations, or
``(C) community groups.
``(3) Goals and outcomes.--To receive a grant under this
section, each proposal shall contain a statement of specific,
measurable goals and methods for obtaining statistics on the
number of participants who continue on to postsecondary
education.
``SEC. 404B. DIFFUSION NETWORK ACTIVITIES.
``(a) Collection of Information.--The Secretary shall
collect information concerning--
``(1) successful programs including those supported under
section 404A which counsel students about college
opportunities, precollege requirements, the college
admissions procedure, and financial aid opportunities;
``(2) successful early intervention programs which set
students on the path toward staying in school and pursuing a
postsecondary education;
``(3) model programs which counsel students in specific
environments, such as urban, rural, and suburban; and
``(4) model programs which develop school/community
partnerships to provide mentoring, tutoring, work experiences
and other services which support making postsecondary
education a realistic goal for all students.
``(b) Dissemination.--The Secretary shall insure that the
information collected under subsection (a) be disseminated
through the National Diffusion Network.
``SEC. 404C. AUTHORIZATION OF APPROPRIATIONS.
``(a) Model Program Grants.--There are authorized to be
appropriated $70,000,000 for fiscal year 1993 and such sums
as may be necessary for each of the 4 succeeding fiscal years
to carry out section 404A.
``(b) Dissemination Activities.--There are authorized to be
appropriated $20,000,000 for fiscal year 1993 and such sums
as may be necessary for each of the 4 succeeding fiscal years
to carry out section 404B.
``CHAPTER 4--CONGRESSIONAL HONORS AWARDS
``SEC. 405A. SCHOLARSHIPS AUTHORIZED.
``(a) Program Authority.--The Secretary is authorized, in
accordance with this chapter, to award Congressional Honors
scholarships to students who are Pell Grant recipients, who
have participated in a preparatory program for postsecondary
education, and who demonstrate academic achievement.
``(b) Period of Awards.--A student who satisfies the
requirements of section 405B may receive a Congressional
Honors scholarship for each year that the student receives a
Pell Grant.
``(c) Congressional Honors Scholars.--Students awarded
scholarships under this chapter shall be known as
`Congressional Honors Scholars'.
``(d) Authorization.--There are authorized to be
appropriated such sums as may be necessary for fiscal year
1993 and each of the four succeeding fiscal years to carry
out this chapter.
``SEC. 405B. ELIGIBILITY OF SCHOLARS.
``(a) Requirements for Students in First Year of
Postsecondary Education.--In order for a student who will be
attending his or her first year of postsecondary education to
be eligible to receive a scholarship under this chapter for
that academic year, the student must--
``(1) have participated, for a minimum period of thirty-six
months, in an early intervention program that meets the
requirements of section 405C;
``(2) complete a program of secondary education including
three years of mathematics, two years of science and four
years of English;
``(3) earn a gradepoint average of 2.5 or higher, on a
scale of 4.0, in the final two years of high school; and
``(4) receive a Pell Grant under subpart 2 for that
academic year.
``(b) Requirements for Other Students.--In order for a
student who will be attending postsecondary education for a
year other than his or her first year, to be eligible to
receive a scholarship under this chapter for that academic
year, the student must--
``(1) have received a Congressional Honors Award in a
previous academic year;
``(2) maintain satisfactory academic progress as defined
under section 484(c); and
``(3) receive a Pell Grant under subpart 2 for that
academic year.
``SEC. 405C. ELIGIBLE EARLY INTERVENTION PROGRAMS.
``(a) Participation in Trio Programs and Liberty
Scholarship Programs.--Participation in a program authorized
under section 401B, 401C, 403D, or 404A for a thirty-six
month period shall meet the requirement of section
405B(a)(1).
``(b) Other Eligible Early Intervention Program.--
Participation in another early intervention program
regardless of sponsorship for a thirty-six month period,
shall qualify students for Congressional Honors Awards if the
program--
``(1) meets at least biweekly during the academic year for
a period of at least two hours outside regular school hours;
``(2) meets any other requirements established by the
Secretary; and
``(3) is certified by the Governor as an Honors Scholars
Program.
``SEC. 405D. SCHOLARSHIP AMOUNT.
``(a) Amount of Award.--Except as provided in subsection
(b), the amount of a scholarship awarded under this chapter
for any academic year shall be equal to 25 percent of the
Pell Grant that the recipient is awarded for that year.
``(b) Relation to Cost of Attendance and Other
Assistance.--Notwithstanding subsection (a), the amount of a
scholarship awarded under this chapter shall be reduced by
the postsecondary institution that the student is or will be
attending, by the amount that the scholarship when combined
with other Federal or non-Federal grant or scholarship
assistance the student receives in any academic year, exceeds
the student's cost of attendance as defined in section 472.
``SEC. 405E. AWARD PROCEDURES.
``(a) Award Procedures.--By a date set by the Secretary,
each Early Intervention Program identified in section 405C
shall provide
[[Page 455]]
to the Secretary the names of all graduating seniors who meet
the requirements of section 405B(a). The Secretary shall
provide each contractor processing applications for awards
under subpart 2 with these names and notify the Congressional
Honors Scholars. Students who meet the requirements of
section 405B shall also identify themselves on the
application for Federal student aid.
``(b) Payment of Scholarships.--Payments of awards under
this section shall be made in conjunction with payment of
awards under the Pell Grant program provided under section
411 in accordance with regulations promulgated by the
Secretary for such purpose. Each contractor processing
applications for awards under section 411 shall in a timely
manner furnish to the student financial aid administrator at
each institution of higher education the names of students
eligible for Congressional Honors Awards in attendance at
that institution.
``(c) Adjustment for Insufficient Appropriations.--If,
after the Secretary determines the total number of eligible
applicants for an academic year in accordance with section
405B, funds available in a fiscal year are insufficient to
fully fund all awards for that academic year under this
chapter, the amount paid to each student shall be reduced
proportionately.
``(d) Awards Ceremony.--Each year the Secretary shall
conduct an awards ceremony honoring first-year recipients of
Congressional Honors Awards.
``CHAPTER 5--TECHNICAL ASSISTANCE FOR TEACHERS AND COUNSELORS
``SEC. 406A. TECHNICAL ASSISTANCE GRANTS.
``(a) Program Authority.--From the amounts appropriated
under subsection (f), the Secretary shall award grants to
local educational agencies to use for the purpose of
obtaining specialized training for guidance counselors,
teachers, and principals to counsel students about college
opportunities, precollege requirements, the college
admissions procedure, and financial aid opportunities.
``(b) Selection of Grant Recipients.--
``(1) Priority.--In making grants under this section, the
Secretary shall give priority to those local educational
agencies serving school districts (A) from which the
proportion of students who continue on to higher education is
significantly below the national average, and (B) in which
the proportion of students who are educationally
disadvantaged is significantly above the national average.
``(2) Selection procedures.--The Secretary shall develop a
formal procedure for the submission of proposals and publish
in the Federal Register an announcement with respect to that
procedure and the availability of funds.
``(c) Local Plan.--To receive a grant under this section, a
local educational agency shall submit to the Secretary a plan
that--
``(1) specifies the methods to be used for outreach,
implementation, and follow-up with those students most in
need and at-risk for dropping out or failing to pursue
postsecondary education;
``(2) demonstrates the methods by which the agency will
target funds to those schools within the district that have
the lowest rate of students who continue on to higher
education;
``(3) utilizes early intervention programs for counseling
minority, economically disadvantaged, disabled, and at-risk
students about postsecondary education;
``(4) includes a strategy for keeping the guidance
counselors, teachers (including elementary, secondary,
vocational, and special education teachers), and principals
who have been trained up-to-date on financial aid
information;
``(5) contains a statement of specific goals and methods
for obtaining statistics on the number of participants who
continue on to postsecondary education; and
``(6) contains a description of the costs of the training
and other activities to be undertaken.
``(d) Duration of Grants.--Grants under this section shall
be available for 2 years.
``(e) Evaluation.--
``(1) Conduct of evaluations.--The Secretary shall reserve
not more than 2 percent of any amount appropriated under
subsection (f) for the purpose of carrying out an independent
evaluation of the effectiveness of the training programs
assisted under this section in--
``(A) increasing the number of personnel in a school who
regularly counsel students regarding college opportunities,
precollege requirements, the college admission procedure, and
financial aid opportunities; and
``(B) increasing the number of students who continue on to
postsecondary education from a school which has had personnel
trained using monies from this section.
``(2) Report.--The Secretary shall submit to the
appropriate committees of the Congress a report which
contains the findings of the evaluation required by paragraph
(1).
``(f) Technical Assistance Grants.--There are authorized to
be appropriated $70,000,000 for fiscal year 1993 and such
sums as may be necessary for each of the 4 succeeding fiscal
years to carry out this section.
``CHAPTER 6--NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM
``SEC. 407A. NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM.
``(a) Statement of Purpose.--It is the purpose of this
section to--
``(1) create a demonstration program to test the
feasibility of establishing a national student savings
program to encourage families to save for their children's
college education and thereby reduce the loan indebtedness of
college students; and
``(2) help determine the most effective means of achieving
the activities described in paragraph (1).
``(b) Demonstration Program Authorized.--
``(1) In general.--The Secretary is authorized to award a
demonstration grant to not more than 5 States to enable each
such State to conduct a student savings program in accordance
with this section.
``(2) Amount of grant.--The amount of each grant awarded
pursuant to paragraph (1) shall be computed on the basis of--
``(A) a Federal match in an amount equal to the initial
State deposit into each account established pursuant to
subsection (c)(2)(B), except that such Federal match shall
not exceed $50 per child; multiplied by
``(B) the number of children participating in the program
assisted under this part.
``(3) Priority.--In awarding grants under this section the
Secretary shall give priority to States proposing programs
that establish accounts for a child prior to the age of
compulsory school attendance in the State in which such child
resides.
``(4) Special consideration.--In awarding grants under this
section the Secretary shall give special consideration to
States--
``(A) that permit employers to use pretax income in making
contributions to a child's account; and
``(B) that provide assurances that interest earned in
accounts shall be exempt from State taxes.
``(c) Application.--
``(1) In general.--Each State desiring a grant under this
section shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information as
the Secretary may reasonably require.
``(2) Contents.--Each application submitted pursuant to
paragraph (1) shall--
``(A) describe the student savings program to be
established and the number of children to be served;
``(B) contain assurances that an account shall be
established for each child participating in the program
assisted under this section and set forth the initial amount
to be deposited into each such account by the State;
``(C) contain assurances that deposits into such account
shall be invested in a responsible manner that provides a
reasonable rate of return;
``(D) contain assurances that funds in the account shall
only be used to pay the cost of attendance (as such term is
defined in section 472) at any eligible institution (as such
term is defined in section 481);
``(E) describe the amount of the Federal contribution
requested for starting each child's account, which shall not
exceed $50 per child participating in the program;
``(F) describe the age at which children in the State may
establish such accounts;
``(G) indicate whether the program will be open to all
children, regardless of family income, or only to
disadvantaged children;
``(H) describe how additional deposits into each account
from the State or other resources will be earned by a child
for performance of community service, academic performance,
or other activities or achievements;
``(I) contain assurances that contributions in an account
shall be refundable to the contributor without interest if
the child is unable to attend college;
``(J) contain assurances that the State shall encourage
individuals and organizations to make contributions to a
child's account;
``(K) contain assurances that the State shall provide
incentives to employers to make contributions to a child's
account and participate in the program assisted under this
section; and
``(L) contain assurances that if a child leaves the State
in which such child has an account, then such child shall
retain the right to make contributions to the account, except
that the State shall not be required to make any additional
deposits other than interest.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated $10,000,000 for fiscal year
1993 and such sums as may be necessary for each of the 4
succeeding fiscal years to carry out this section.
``CHAPTER 7--PUBLIC INFORMATION
``SEC. 408A. DATABASE AND INFORMATION LINE.
``From the funds available under section 408C, the
Secretary of Education shall award a contract to establish
and maintain--
``(1) a computerized database of all public and private
financial assistance programs, to be accessible to schools
and libraries through either modems or toll-free telephone
lines; and
``(2) a toll-free information line, including access by
telecommunications devices for the deaf (`TDD's'), to provide
individualized financial assistance information to parents,
students, and other individuals, including individuals with
disabilities, and to refer students with disabilities and
their families to the postsecondary clearinghouse that is
authorized under section 633(c) of the Individuals with
Disabilities Education Act.
``SEC. 408B. PUBLIC ADVERTISING.
``The Secretary shall encourage private nonprofit agencies
and organizations to work with persons engaged in video
production to develop and deliver public service
announcements and paid advertising messages that encourage
economically disadvantaged, minority, or at-risk individuals
to seek higher
[[Page 456]]
education, and to seek higher education and financial
assistance counseling at public schools and libraries. These
announcements and messages may be specially designed for
students of limited English proficiency. The Secretary shall
keep the appropriate committees of the Congress informed with
respect to the efforts made pursuant to this section and
shall recommend any additional legislative authority that
will serve the purposes of this section.
``SEC. 408C. DATABASE AND INFORMATION LINE.
``There are authorized to be appropriated $20,000,000 for
fiscal year 1993 and such sums as may be necessary for each
of the 4 succeeding fiscal years to carry out this chapter.
``CHAPTER 8--PRESIDENTIAL ACHIEVEMENT SCHOLARSHIP PROGRAM
``SEC. 409A. PURPOSE; APPROPRIATIONS AUTHORIZED.
``(a) Purpose.--It is the purpose of this chapter to award
scholarships to Pell Grant recipients who demonstrate high
academic achievement, and thereby encourage financially needy
students to excel in their elementary and secondary studies,
enter postsecondary education, and continue to demonstrate
high levels of academic achievement at the postsecondary
level.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated $170,000,000 for fiscal year
1993, and such sums as may be necessary for each of the 4
succeeding fiscal years to carry out the purposes of this
chapter. Funds shall remain available for expenditure until
the end of the fiscal year immediately succeeding the fiscal
year for which such funds were appropriated.
``SEC. 409B. SCHOLARSHIPS AUTHORIZED.
``(a) Program Authority.--The Secretary is authorized, in
accordance with this chapter, to carry out a program of
awarding scholarships to students who are Pell Grant
recipients and demonstrate high levels of academic
achievement.
``(b) Period of Awards.--(1) A student who satisfies the
requirements of section 409C may receive a scholarship, for a
period of one academic year, for full-time undergraduate
study at an institution of higher education.
``(2) A student who satisfies the requirements of section
409C may receive up to four scholarships, each awarded for a
period of 1 academic year, except that, in the case of a
student who is enrolled in a full-time undergraduate course
of study that requires attendance for 5 academic years, the
student may receive up to 5 scholarships under this chapter.
``(c) Presidential Achievement Scholarships.--Students
awarded scholarships under this chapter shall be known as
`Presidential Achievement Scholars'.
``SEC. 409C. ELIGIBILITY OF SCHOLARS.
``(a) Requirements for Students in First Year of
Postsecondary Education.--In order for a student who will be
attending his or her first year of postsecondary education to
be eligible to receive a scholarship under this subpart for
that academic year, the student must--
``(1)(A) rank, or have ranked, in the top 10 percent, by
grade point average, of his or her high school graduating
class; or
``(B) achieve at least the minimum score, announced by the
Secretary for this purpose by notice in the Federal Register,
on 1 of the nationally administered, standardized tests
identified by the Secretary; and
``(2) receive a Pell Grant under subpart 2 of this part for
that academic year.
``(b) Requirements for Other Students.--In order for a
student who will be attending a year of postsecondary
education, other than his or her first year, to be eligible
to receive a scholarship under this chapter for that academic
year, the student must--
``(1) be enrolled in a program of study of not less than 2
academic years in length that leads to a degree or
certificate;
``(2) rank in the top 20 percent, by cumulative grade point
average (or its equivalent, if the institution does not use a
system of ranking its students by grade point averages), of
his or her postsecondary education class as of the last
academic year of study completed; and
``(3) receive a Pell Grant under subpart 2 of this part for
that academic year.
``(c) Prior Scholarships.--Except in relation to the
aggregate limits on the receipt of scholarships in section
409B(b)(2), a student's eligibility for a Presidential
Achievement Scholarship for a given academic year is not
dependent on whether the student received a Presidential
Achievement Scholarship or a Pell Grant in the previous
academic year.
``(d) Full-Time Attendance Required.--A student who is
attending an institution of higher education on a less than
full-time basis is not eligible to receive a Presidential
Achievement Scholarship.
``SEC. 409D. AWARD PROCEDURES.
``(a) Award Procedures.--(1) The Secretary shall establish
the procedures through regulations by which Presidential
Achievement Scholarships shall be awarded.
``(2) A participating institution of higher education shall
provide such information as is required by the Secretary
regarding a potential scholarship recipient's class rank or
test score.
``(b) Deadlines.--The Secretary shall specify, by notice in
the Federal Register, the date after which no additional
students may be considered for scholarships under this
chapter for a given academic year. The Secretary shall then
determine the total number of eligible applicants for that
academic year, and, if necessary, apply the reduction
procedures specified in section 409E(c).
``(c) Disbursal of Scholarship Proceeds.--Scholarship
proceeds shall be disbursed on behalf of students who receive
scholarships under this chapter to the institutions of higher
education at which the students are enrolled. No scholarship
proceeds shall be disbursed on behalf of a student until the
student is enrolled at an institution of higher education.
``SEC. 409E. SCHOLARSHIP AMOUNT.
``(a) Amount of Award.--Except as provided in subsections
(b) and (c), the amount of a scholarship awarded under this
chapter for any academic year shall be $500.
``(b) Relation to Cost of Attendance and Other
Assistance.--Notwithstanding subsection (a), the amount of a
scholarship awarded under this chapter shall be reduced, by
the institution of higher education that the student is or
will be attending, by the amount that the scholarship--
``(1) exceeds the student's cost of attendance, as defined
in section 472; or
``(2) when combined with other Federal or non-Federal grant
or scholarship assistance the student receives in any
academic year, exceeds the student's cost of attendance, as
defined in section 472.
``(c) Adjustments for Insufficient Appropriations.--If,
after the Secretary determines the total number of eligible
applicants for an academic year in accordance with section
409D(b), funds available in a fiscal year are insufficient to
fully fund all awards for that academic year under this
chapter, the amount paid to each student shall be reduced
proportionately.
``CHAPTER 9--ADVANCED PLACEMENT FEE PAYMENT PROGRAM
``SEC. 410A. ADVANCED PLACEMENT FEE PAYMENT PROGRAM.
``(a) Program Established.--The Secretary shall carry out,
by contract, a program which shall be designed to provide
payments, to cover the cost of advance placement test fees,
to low-income individuals who--
``(1) are enrolled in an advanced placement class; and
``(2) plan to take an advanced placement test.
``(b) Information Dissemination.--The Secretary shall
disseminate information on the availability of test fee
payments under this section to eligible individuals through
secondary school teachers and guidance counselors.
``(c) Requirements for Approval of Applications.--In
approving applications for advance placement test fee payment
under this section in any fiscal year, the contractor
selected by the Secretary shall--
``(1) require that each such application contain a
description of the advance placement test fees the Secretary
is requested to pay;
``(2) require an assurance that any funds received under
this section shall only be used to pay advanced placement
test fees; and
``(3) contain such information as the contractor may
require to demonstrate that the student is eligible for
payments under this section.
``(d) Supplementation of Funding.--Funds provided under
this section shall be used to supplement and not supplant
other Federal, State, and local funds available to assist
low-income individuals in paying for advanced placement
testing.
``(e) Regulations.--The Secretary shall prescribe such
regulations as are necessary to carry out this section.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated $3,600,000 for fiscal year 1993
and such sums as may be necessary for each of the 4
succeeding fiscal years to carry out the provisions of this
section.
``(g) Definition.--As used in this section, the term
`advanced placement test' includes only an advanced placement
test approved by the Secretary for the purposes of this
section.''.
(b) Reference.--Reference in any provision of law (other
than the Act) to subpart 1, 2, or 3 of part A of title IV of
the Act shall, after the date of enactment of this Act, be
deemed to refer to subpart 2, 3, or 4 of such part,
respectively.
Subpart 5--Amendments to Subparts 5 Through 8 of Part A
SEC. 418. HEP/CAMP.
(a) Eligible Persons.--
(1) Section 418A(b)(1) of the Act is amended to read as
follows:
``(1) recruitment services to reach persons who are 17
years of age and over who, themselves or whose parents have
spent a minimum of 75 days during the past 24 months in
migrant and seasonal farmwork or who have participated in
programs under subpart 1 of part D of chapter 1 of title I of
the Elementary and Secondary Education Act of 1965 or section
402 of the Job Training Partnership Act, and who lack a high
school diploma or its equivalent;''.
(2) Section 418A(c)(1) of the Act is amended to read as
follows:
``(1) outreach and recruitment services to reach persons
who themselves or whose parents have spent a minimum of 75
days during the past 24 months in migrant and seasonal
farmwork or who have participated in programs under subpart 1
of part D of chapter 1 of title I of the Elementary and
Secondary Education Act of 1965 or section 402 of the Job
Training Partnership Act, and who meet the minimum
qualifications for attendance at a college or university;''.
(b) Grant Cycles.--Section 418A(e) of the Act is amended--
[[Page 457]]
(1) in the subsection heading, by striking ``Three-year''
and inserting ``Five-year''; and
(2) by striking ``3-year period'' and inserting ``5-year
period''.
(c) Authorization of Appropriations.--Section 418A(g) of
the Act is amended to read as follows:
``(g) Authorization of Appropriations.--(1) There are
authorized to be appropriated for the high school equivalency
program $15,000,000 for fiscal year 1993 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
``(2) There are authorized to be appropriated for the
college assistance migrant program $5,000,000 for fiscal year
1993 and such sums as may be necessary for each of the 4
succeeding fiscal years.''.
SEC. 419. BYRD HONORS SCHOLARSHIP PROGRAM.
(a) Authorization of Appropriations.--Section 419K of the
Act is amended to read as follows:
``authorization of appropriations
``Sec. 419K. There are authorized to be appropriated for
this subpart $10,000,000 for fiscal year 1993 and such sums
as may be necessary for the 4 succeeding fiscal years.''.
(b) Definitions.--Section 419B of the Act is repealed.
SEC. 420. REPEAL OF ASSISTANCE TO INSTITUTIONS OF HIGHER
EDUCATION.
Subpart 7 of part A of title IV of the Act is repealed.
SEC. 420A. CHILD CARE SERVICES.
Section 420B(c) of the Act is amended by striking ``fiscal
year 1987'' and inserting ``fiscal year 1993''.
PART B--FEDERAL FAMILY EDUCATION LOANS
SEC. 421. NAME OF PROGRAMS.
Part B of title IV of the Act is amended--
(1) by striking the heading of such part and inserting the
following:
``Part B--Federal Family Education Loan Program''; and
(2) by striking section 421(c) and inserting the following:
``(c) Designation.--The program established under this part
shall be referred to as the `Federal Stafford Student Loan
Program'. Loans made pursuant to sections 427 and 428 shall
be known as `Federal Stafford Loans'.''.
SEC. 422. GUARANTEE AUTHORITY CONTINGENT ON TIMELY
RULEMAKING.
Section 421 of the Act is amended by inserting after
subsection (c) the following new subsection:
``(d) Limitation on Authorization To Guarantee New Loans
Under This Part.--Notwithstanding any other provision of this
part, no new loan guarantees shall be issued after June 30,
1994, if the Secretary does not issue final regulations
implementing the changes made to this part under the Higher
Education Amendments of 1992 prior to that date. The
authority to issue new loan guarantees shall resume upon the
Secretary's issuance of such regulations.''.
SEC. 423. GUARANTY AGENCY FUNDING.
Section 422 of the Act is amended by adding at the end the
following new subsection:
``(e) Correction for Errors Under Reduction of Excess Cash
Reserves.--
``(1) Correction for errors.--The Secretary shall pay any
guaranty agency the amount of reimbursement of claims under
section 428(c)(1), filed between September 1988 and December
31, 1989, which were previously withheld or canceled in order
to be applied to satisfy such agency's obligation to
eliminate excess cash reserves held by such agency, based on
the maximum cash reserve (as defined in section 422(e) as in
effect on September 1, 1988) permitted at the end of 1986, if
such maximum cash reserve was miscalculated because of
erroneous financial information provided by such agency to
the Secretary if (A) such erroneous information is verified
by an audited financial statement of the reserve fund, signed
by a certified public accountant and (B) such audited
financial statement is provided to the Secretary prior to
January 1, 1993.
``(2) Amount of reimbursement.--The amount of reimbursement
for claims shall be equal to the amount of reimbursement for
claims withheld or canceled in order to be applied to such
agency's obligation to eliminate excess cash reserves, which
exceeds the amount of that which would have been withheld or
canceled, if the maximum excess reserves had been accurately
calculated.''.
SEC. 424. GRADUATED REPAYMENT.
(a) FISL Amendments.--Section 427 of the Act is amended--
(1) in subsection (a)(2)--
(A) by striking ``and'' at the end of subparagraph (G);
(B) by redesignating subparagraph (H) as subparagraph (I);
and
(C) by inserting after subparagraph (G) the following:
``(H) provides that, no more than 6 months prior to the
date on which the borrower's first payment on a loan is due,
the lender shall offer the borrower the option of repaying
the loan in accordance with a graduated or income-sensitive
repayment schedule established by the lender and approved by
the Secretary; and''; and
(2) in subsection (c), by striking ``Minimum Repayment
Rate.--The total of the payments'' and inserting ``Special
Repayment Rules.--Except as provided in subsection (a)(2)(H),
the total of the payments''.
(b) GSL Amendments.--Section 428(b)(1)(E) of the Act is
amended to read as follows:
``(E) subject to subparagraphs (D) and (L), and except as
provided by subparagraph (M), provides that--
``(i) not more than 6 months prior to the date on which the
borrower's first payment is due, the lender shall offer the
borrower of a loan made, insured or guaranteed under this
section or section 428A, the option of repaying the loan in
accordance with a graduated or income-sensitive repayment
schedule established by the lender and approved by the
Secretary;
``(ii) for the first 2 years of repayment, the borrower
shall receive monthly statements that designate the principal
and interest that has been repaid; and
``(iii) repayment of loans shall be in installments over a
period of not less than 5 years (unless the student, during
the 6 months immediately preceding the start of the repayment
period, specifically requests that repayment be made over a
shorter period) nor more than 10 years, beginning 6 months
after the month in which the student ceases to carry at least
one-half the normal full-time academic workload as determined
by the institution;''.
SEC. 425. STUDY ABROAD.
(a) Disbursement.--
(1) Insured loans.--Section 427(a)(3) of the Act is amended
to read as follows:
``(3) the funds borrowed by a student are disbursed to the
institution by check or other means that is payable to and
requires the endorsement or other certification by such
student, except--
``(A) nothing in this title shall be interpreted--
``(i) to allow the Secretary to require checks to be made
copayable to the institution and the borrower; or
``(ii) to prohibit the disbursement of loan proceeds by
means other than by check; and
``(B) in the case of students who are studying outside the
United States in a program of study abroad that is approved
for credit by the institution, the funds shall be delivered
directly to the student and the checks may be endorsed
pursuant to an authorized power-of-attorney; and''.
(2) Guaranteed loans.--Section 428(b)(1)(N) of the Act is
amended by striking ``except in the case of attendance at an
institution outside the United States, the funds shall be
delivered directly to the student;'' and inserting ``except
in the case of students who are studying outside the United
States in a program of study abroad that is approved for
credit by the institution, the funds shall be delivered
directly to the student and the checks may be endorsed
pursuant to an authorized power-of-attorney;''.
(b) Multiple Disbursement.--
(1) Insured loans.--Section 427(b)(2) of the Act is amended
by striking ``or made to a student to cover the cost of
attendance at an eligible institution outside the United
States'' and inserting before the period at the end thereof
the following: ``or in a program of study abroad approved for
credit by an eligible institution''.
(2) Guaranteed loans.--Section 428G(e) of the Act is
amended by striking ``made to a student to cover the cost of
attendance at an eligible institution outside the United
States'' and inserting ``made to a student enrolled in a
program of study abroad approved for credit by an eligible
institution''.
(c) Loan Amounts.--Section 428(b)(1)(A) of the Act is
amended by inserting ``, or in a program of study abroad
approved for credit by the eligible institution'' after ``at
an eligible institution''.
SEC. 426. APPLICABLE INTEREST RATES.
(a) Plus Loan Interest Rate.--Section 427A(c)(4) of the Act
is amended by adding at the end the following new
subparagraph:
``(D) Notwithstanding subparagraphs (A) through (C), for
any loan made pursuant to section 428B and disbursed on or
after July 1, 1993, the interest rate shall not exceed 10
percent.''.
(b) New Borrower Rates.--Section 427A(d)(1) of the Act is
amended by striking ``on the date of the disbursement of the
loan'' and inserting ``on the date on which the repayment
period begins, pursuant to section 428(b)(1)(E)''.
(c) Excess Interest Payments.--Section 427A(e) of the Act
is amended--
(1) in paragraph (1)--
(A) by striking ``In general'' and inserting ``Excess
Interest on 10 Percent Loans'';
(B) by striking ``paragraph (3)'' and inserting ``paragraph
(5)'';
(2) in paragraph (2), by inserting ``for 10 percent loans''
after ``(2) Amount of adjustment'';
(3) by redesignating paragraphs (3), (4), and (5) as
paragraphs (5), (6), and (7), respectively;
(4) by inserting the following new paragraphs after
paragraph (2):
``(3) Excess interest on 8 percent loans.--If, with respect
to a loan for which the applicable interest rate is 8 percent
under subsection (d) of this section at the close of any
calendar quarter, the sum of the average of the bond
equivalent rates of 91-day Treasury bills auctioned for that
quarter and 3.25 percent is less than 8 percent, then an
adjustment shall be made--
``(A) by calculating excess interest in the amount computed
under paragraph (4) of this subsection; and
``(B)(i) during any period in which a student is eligible
to have interest payments paid on his or her behalf by the
Government pursuant to section 428(a), by crediting the
excess interest to the Government; or
``(ii) during any other period, by crediting such excess
interest to the reduction of principal to the extent provided
in paragraph (5) of this subsection.
[[Page 458]]
``(4) Amount of adjustment for 8 percent loans.--The amount
of any adjustment of interest on a loan to be made under this
subsection for any quarter shall be equal to--
``(A) 8 percent minus the sum of (i) the average of the
bond equivalent rates of 91-day Treasury bills auctioned for
such calendar quarter, and (ii) 3.25 percent; multiplied by
``(B) the outstanding principal balance of the loan (not
including unearned interest added to principal) at the end of
such calendar quarter; divided by
``(C) four.'';
(5) in paragraph (5), as redesignated--
(A) by striking ``or by reducing the number of payments''
and inserting ``by reducing the number of payments''; and
(B) by striking the period at the end and inserting ``, or
by reducing the amount of the final payment of the loan.
Nothing in this paragraph shall be construed to require the
lender to make additional disclosures pursuant to section
433(b).''; and
(6) by striking paragraph (7), as redesignated.
SEC. 427. AMENDMENTS TO SECTION 428.
(a) Loans That Have Not Been Consummated.--Section 428(a)
of the Act is amended by inserting after paragraph (6) the
following new paragraph:
``(7) Loans that have not been consummated.--Lenders may
not charge interest or receive interest subsidies for loans
that have not been consummated (loans for which the
disbursement checks have not been cashed).''.
(b) Proration of Loan Eligibility to Course Load.--
(1) Amendment.--Section 428(b)(1)(A) of the Act is amended
by striking clauses (i), (ii), and (iii) and inserting the
following:
``(i) in the case of a student at an eligible institution
who has not successfully completed the first and second year
of a program of undergraduate education--
``(I) $2,625, if such student is enrolled in a program
whose length is one academic year in length (as provided for
in section 481(d));
``(II) $1,750, if student is enrolled in a program whose
length is at least \2/3\ of an academic year; and
``(III) $875, if such student is enrolled in a program
whose length is less than \2/3\, but at least \1/3\, of an
academic year (as provided for in section 481(b));
``(ii) in the case of a student at an eligible institution
who has successfully completed such first and second year but
has not successfully completed the remainder of a program of
undergraduate study--
``(I) $4,000, if such student is enrolled in a program
whose length is one academic year in length (as provided for
in section 481(d));
``(II) $2,675, if such student is enrolled in a program
whose length is at least \2/3\ of an academic year; and
``(III) $1,350, if such student is enrolled in a program
whose length is less than \2/3\, but at least \1/3\, of an
academic year (as provided for in section 481(b)); and
``(iii) in the case of a graduate or professional student
(as defined in regulations of the Secretary) at an eligible
institution, $7,500;''.
(2) Conforming amendment.--Section 425(a)(1) of the Act is
amended by striking clauses (i), (ii), and (iii) of
subparagraph (A) and inserting the following:
``(i) in the case of a student at an eligible institution
who has not successfully completed the first and second year
of a program of undergraduate education--
``(I) $2,625, if such student is enrolled in a program
whose length is one academic year in length (as provided for
in section 481(d));
``(II) $1,750, if such student is enrolled in a program
whose length is at least \2/3\ of an academic year; and
``(III) $875, if such student is enrolled in a program
whose length is less than \2/3\, but at least \1/3\, of an
academic year (as provided for in section 481(b));
``(ii) in the case of a student at an eligible institution
who has successfully completed such first and second year but
has not successfully completed the remainder of a program of
undergraduate study--
``(I) $4,000, if such student is enrolled in a program
whose length is one academic year in length (as provided for
in section 481(d));
``(II) $2,675, if such student is enrolled in a program
whose length is at least \2/3\ of an academic year; and
``(III) $1,350, if such student is enrolled in a program
whose length is less than \2/3\, but at least \1/3\, of an
academic year (as provided for in section 481(b)); and
``(iii) in the case of a graduate or professional student
(as defined in regulations of the Secretary) at an eligible
institution, $7,500.''.
(c) Minimum Payment for Married Couples; Minimum Payment of
Interest.--
(1) GSL amendment.--Section 428(b)(1)(L)(i) of the Act is
amended by striking ``, except that, in the case of a husband
and wife'' and all that follows through ``whichever is less''
and inserting ``(but in no instance less than the amount of
interest due and payable)''.
(2) FISL amendment.--Section 427(c) of the Act is further
amended by striking ``, except that in the case of a husband
and wife'' and all that follows through ``whichever is less''
and inserting ``(but in no instance less than the amount of
interest due and payable)''.
(d) Deferments.--
(1) Amendment.--Section 428(b)(1)(M) of the Act is
amended--
(A) in the matter preceding clause (i), by inserting ``by
the Secretary'' after ``shall accrue and be paid'';
(B) in clause (i), by striking ``for which the student has
obtained a loan under this part''; and
(C) by striking clauses (ii) through (xi) and inserting the
following:
``(ii) not in excess of 24 months at the request of the
borrower, during which the borrower is seeking and unable to
find full-time employment; and
``(iii) not in excess of 36 months for any reason which the
lender deems will cause economic hardship for the borrower,
pursuant to regulation by the Secretary, who shall consider
the borrower's income and debt-to-income ratio as primary
factors in promulgating such regulations;
except that, for the purposes of clause (i), an eligible
institution includes institutions ineligible for
participation in programs under this part under section
435(a)(2);''.
(2) Conforming amendment.--Section 427(a)(2)(C) of the Act
is amended by striking clauses (ii) through (xi) and
inserting the following:
``(ii) not in excess of 24 months at the request of the
borrower, during which the borrower is seeking and unable to
find full-time employment; and
``(iii) not in excess of 36 months for any reason which the
lender deems will cause economic hardship for the borrower,
pursuant to regulation by the Secretary, who shall consider
the borrower's income and debt-to-income ratio as primary
factors in promulgating such regulations;
except that, for the purposes of clause (i), an eligible
institution includes institutions ineligible for
participation in programs under this part under section
435(a)(2),''.
(e) Exclusion of Forbearance From Repayment Period
Calculation.--Subparagraphs (D) and (E) of section 428(b)(1)
of the Act are amended to read as follows:
``(D) provides that (i) the student borrower shall be
entitled to accelerate without penalty the whole or any part
of an insured loan, (ii) the repayment period of any insured
loan may not exceed 10 years, and (iii) the note, or other
written evidence of any loan, may contain such reasonable
provisions relating to repayment in the event of default by
the borrower as may be authorized by regulations of the
Secretary in effect at the time such note or written evidence
was executed;
``(E) subject to subparagraph (D)(i), provides that
repayment of loans shall be in installments over a period of
not less than 5 years (unless the student, during the 6
months preceding the start of the repayment period,
specifically requests that repayments be made over a shorter
period) nor more than 10 years beginning 6 months after the
month in which the student ceases to carry at least one-half
the normal full-time academic workload as determined by the
institution;''.
(f) Consequences of LS&T Actions.--Section 428(b)(1)(T) is
amended to read as follows:
``(T) authorize (i) the limitation of the total number of
loans or volume of loans, made under this part to students
attending a particular eligible institution during any
academic year; and (ii) the limitation, suspension, or
termination of the eligibility of an eligible institution
if--
``(I) such institution is ineligible under regulations for
the emergency action, limitation, suspension, or termination
of eligible institutions under regulations issued by the
Secretary or is ineligible pursuant to criteria, rules, or
regulations issued under the student loan insurance program
which are substantially the same as regulations with respect
to emergency action, limitation, suspension, or termination
of such eligibility issued by the Secretary;
``(II) there is a State constitutional prohibition
affecting the eligibility of such an institution;
``(III) such institution fails to make timely refunds to
students as required by regulations issued by the Secretary
or has not satisfied within 30 days of issuance a judgment
obtained by a student;
``(IV) such institution or an owner, director, or officer
of such institution is found guilty in any criminal, civil or
administrative proceeding or such institution or an owner,
director, or officer of such institution is found liable in
any civil or administrative proceeding regarding the
obtaining, maintenance, or disbursement of State or Federal
grant, loan, or work assistance funds; or
``(V) such institution or an owner, director, or officer of
such institution has unpaid financial liabilities involving
the improper acquisition, expenditure, or refund of State or
Federal financial aid funds;
except that, if a guaranty agency limits, suspends, or
terminates the participation of an eligible institution, the
Secretary shall apply that limitation, suspension, or
termination to all institutions with the Department of
Education institution identification code of such
institution, unless the Secretary finds within 30 days of
notification of the action by the guaranty agency that the
guaranty agency's action did not comply with the requirements
of this section;''.
(g) Audits of Lenders.--Section 428(b)(1)(U) of the Act is
amended--
(1) in clause (i), by striking out ``and'' at the end
thereof;
(2) by inserting before the semicolon at the end thereof
the following: ``, and (iii) for (I) a compliance audit of a
lender at least once a year and covering the period since the
most recent audit, conducted by a qualified, independent
organization or person in accordance with standards
established by the Comptroller General for the audit of
governmental organizations, programs, and functions, and as
prescribed in regulations of the
[[Page 459]]
Secretary, the results of which shall be submitted to the
Secretary, or (II) with regard to a lender that is audited
under chapter 75 of title 31, United States Code, such audit
shall be deemed to satisfy the requirements of subclause (I)
for the period covered by such audit;''.
(h) Credit Checks; Confession of Judgment.--
(1) GSL program.--Section 428(b)(1) of the Act is amended--
(A) by striking subparagraphs (W) and (X); and
(B) by redesignating subparagraph (Y) (as added by section
423(b)(3) of this Act) as subparagraph (W).
(2) FISL program.--Section 427(a)(2)(A) of such Act is
amended to read as follows:
``(A) is made without security and without endorsement,
except that if the borrower is a minor and such note or other
written agreement executed by the borrower would not, under
the applicable law, create a binding obligation, endorsement
may be required;''.
(i) Participation Agreements Between Guaranty Agencies and
Institutions.--Section 428(b)(1) is amended by adding at the
end thereof the following new subparagraph:
``(X) provides for a participation agreement between the
guaranty agency and each eligible institution within its
designated service area.''.
(j) Audits of Guaranty Agencies.--Section 428(b)(2)(D)(i)
of the Act is amended by striking out ``at least once every 2
years'' and inserting in lieu thereof ``on at least an annual
basis''.
(k) Notice to Borrower of Loan Sale.--Section 428(b)(2) of
the Act is amended--
(1) by striking ``and'' at the end of subparagraph (D);
(2) by striking the period at the end of subparagraph (E)
and inserting a semicolon; and
(3) by adding at the end the following new subparagraphs:
``(F) provide that if the sale, other transfer, or
assignment of a loan made under this part to another holder
will result in a change in the identity of the party to whom
the borrower must send subsequent payments, the transferor
and the transferee shall, no later than 45 days from the date
the transferee acquires a legally enforceable right to
receive payment from the borrower on such loan, each provide
a separate notice to the borrower of--
``(i) the sale or other transfer;
``(ii) the identity of the transferee;
``(iii) the name and address of the party to whom
subsequent payments must be sent; and
``(iv) the telephone numbers of both the transferor and the
transferee; and
``(G) provide that, upon the request of the last
institution attended by the borrower prior to the beginning
of the repayment of any loan made under this part, the
transferor and transferee shall provide such institution with
a copy of the notices required by subparagraph (F).''.
(l) Guaranty Agency Incentive Payments.--Section 428(b)(3)
of the Act is amended--
(1) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively; and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) offer, directly or indirectly, any premium, payment,
or other inducement to any lender, or any agent or employee
of any lender, in order to secure the designation of that
guaranty agency loans made under this part (other than a loan
made under section 428H);''.
(m) Elimination of Teacher Deferment.--Section 428(b) of
the Act is amended by striking paragraph (4) and
redesignating paragraphs (5) and (6) as paragraph (4) and
(5), respectively.
(n) Procedures for Deferments.--Section 428(b)(4) of the
Act (as redesignated) is amended by adding at the end thereof
the following new sentence: ``Requests for deferment of
repayment of loans under this part by students engaged in
graduate or postgraduate fellowship-supported study (such as
pursuant to a Fulbright grant) outside the United States may
be approved until completion of the period of the
fellowship.''.
(o) Restrictions on Guaranty Agency Officers and
Employees.--Section 428(b) of the Act is amended by adding at
the end the following new paragraph:
``(6) Conflict-of-interest procedures.--Each guaranty
agency shall, in accordance with regulations prescribed by
the Secretary, establish procedures to--
``(A) require each policymaking or contracting officer or
employee to make such financial disclosures as may be
necessary to enable the guaranty agency to determine whether
such officer or employee has a direct financial interest in,
or serves as an officer or employee of, any eligible lender,
secondary market maker, contractor, or service provider with
which the guaranty agency does business;
``(B) conduct such investigations as may be necessary
concerning any allegation of conduct described in
subparagraph (A);
``(C) determine whether such conduct poses an actual
conflict of interest which could harm the operations of such
agency: Provided, That compliance with applicable State law
and regulation is not deemed in and of itself a conflict of
interest;
``(D) impose such remedies as be necessary to prevent such
harm;
``(E) report the results of such investigations and
determinations, and identify the remedies imposed, in reports
to the Secretary; and
``(F) take such corrective actions as the Secretary may
require after review of such reports, including payments of
such civil penalties as the Secretary may impose upon the
guaranty agency for a substantial failure to correct.''.
(p) Information From State Licensing Boards.--Section
428(b) of the Act is further amended by adding at the end the
following new paragraphs:
``(7) State guaranty agency information request of state
licensing boards.--Each guaranty agency is authorized to
enter into agreements with each appropriate State licensing
board under which the State licensing board, upon request,
will furnish the guaranty agency with the address of a
student borrower in any case in which the location of the
student borrower is unknown or unavailable to the guaranty
agency.
``(8) Repayment period.--(A) In the case of a loan made
under section 427 or 428, the repayment period shall begin on
the day immediately following the expiration of the period of
time, specified in section 428(b)(1)(E), after the student
ceases to carry the required academic workload, unless the
borrower requests and is granted a repayment schedule that
provides for repayment to commence at an earlier point in
time, and shall exclude any period of authorized deferment or
forbearance.
``(B) In the case of a loan made under section 428A, the
repayment period shall begin on the day the loan is
disbursed, or, if the loan is disbursed in multiple
installments, on the day of the last such disbursement, and
shall exclude any period of authorized deferment or
forbearance.
``(C) In the case of a loan made under section 428B or
428C, the repayment period shall begin on the day the loan is
disbursed, and shall exclude any period of authorized
deferment or forbearance.''.
(q) Guaranty Agency Agreements.--Section 428(c)(1)(A) of
the Act is amended by striking out the period at the end
thereof and inserting in lieu thereof a comma and ``or later
than 45 days after the guaranty agency discharges its
insurance obligation on the loan.''.
(r) Additional Review of Exceptional Performance
Prohibited.--Section 428(c)(1) is amended by adding at the
end the following new subparagraph:
``(D) Reimbursements of losses made by the Secretary on
loans submitted for claim by an eligible lender, or guaranty
agency designated for exceptional performance under paragraph
(10) of this subsection shall not be subject to additional
review by the Secretary or repurchase by the guaranty agency
for any reason other than a determination by the Secretary
that the eligible lender, or guaranty agency engaged in fraud
or other purposeful misconduct in obtaining designation for
exceptional performance.''.
(s) Borrower Location.--Section 428(c)(2) of the Act is
amended--
(1) by striking ``and'' at the end of subparagraph (F);
(2) by redesignating subparagraph (G) as subparagraph (H):
and
(3) by inserting after subparagraph (F) the following new
subparagraph:
``(G) set forth assurances that the guaranty agency has
established and implemented procedures providing for the
submission to institutions of higher education of lists of
borrowers on which the guaranty agency has received default
claims for the purpose of providing the institution that the
borrower has indicated as having last attended with an
opportunity to comment on the accuracy of the list prior to
claims for reinsurance being filed with the Secretary; and''.
(t) Forbearance.--(1) Section 428(b)(1)(V) of the Act is
amended--
(A) by striking out ``and'' at the end of clause (i);
(B) by striking the period at the end of clause (ii) and
inserting a semicolon; and
(C) by inserting after clause (ii) the following new
clauses:
``(iii) provides that, upon written request, a lender shall
grant a borrower forbearance of principal and interest (or
principal only at the option of the borrower) and renewable
at 12-month intervals for a period not to exceed 3 years, on
such terms as are otherwise consistent with the regulations
of the Secretary set forth in writing by the parties to the
loan, if the borrower's debt burden under this title equals
or exceeds 20 percent of gross income; and
``(iv) provides that the form of forbearance granted by the
lender for purposes of this subparagraph shall be the
temporary cessation of payments, unless the borrower selects
forbearance in the form of an extension of time for making
payments, or smaller payments than were previously
scheduled.''.
(2) Section 428(c)(3) of the Act is amended to read as
follows:
``(3) Forbearance.--A guaranty agreement under this
subsection--
``(A) shall contain provisions providing for forbearance in
accordance with subsection (b)(1)(V) for the benefit of the
student borrower serving in a medical or dental internship or
residency program;
``(B) shall contain provisions which require forbearance
for the benefit of the borrower when such a borrower has
indicated his or her willingness to pay in accordance with
the terms of the loan, but has demonstrated his or her
present inability to do so; and
``(C) shall contain provisions that specify that the form
of forbearance granted by the lender for purposes of this
paragraph shall be the temporary cessation of payments,
unless the borrower selects forbearance in the form
[[Page 460]]
of an extension of time for making payments, or smaller
payments than were previously scheduled.
Guaranty agencies shall not be precluded from permitting the
parties to such a loan from entering into a forbearance
agreement solely because the loan is in default. The
Secretary shall permit lenders to exercise administrative
forbearances, not requiring the agreement of the borrower,
under conditions authorized by the Secretary, which shall
include, but not be limited to, forbearances for borrowers
who are delinquent at the time of the granting of an
authorized period of deferment under section 428(b)(1)(M) or
427(a)(2)(C) and forbearances for borrowers on loans which
are sold or transferred, if the borrower is less than 60 days
delinquent on such loans at the time of sale or transfer.''.
(u) Third Party Servicer.--Section 428(c)(6)(C)(iii) of the
Act is amended by striking out ``servicer'' each place it
appears and inserting in lieu thereof ``third party
servicer''.
(v) Special Rules for Exceptional Performance in Loans
Collection by Eligible Lenders, and Guaranty Agencies.--
Section 428(c) of the Act is amended by adding at the end
thereof the following new paragraph:
``(10) Special insurance rules for certain eligible
lenders; special reinsurance rules for guaranty agencies.--
(A) Whenever the Secretary determines that an eligible lender
or guaranty agency has a compliance performance rating with
respect to due diligence in the collection of loans insured
under this part for each year for which the determination is
made which equals, or exceeds, 95 percent of all due
diligence requirements with respect to such loans serviced
during the period by the eligible lender, or on which loan
collection was attempted by the guaranty agency, the
Secretary shall designate the eligible lender or guaranty
agency, as the case may be, for exceptional performance. The
Secretary shall notify each appropriate guaranty agency of
the eligible lenders designated under this paragraph.
``(B)(i) Each guaranty agency shall pay each eligible
lender designated under subparagraph (A) 100 percent of the
unpaid principal and interest of all loans for which claims
are submitted for payment by that eligible lender for the
one-year period following the receipt by the guaranty agency
of the notification of designation under this paragraph.
``(ii) The Secretary shall pay to each guaranty agency
designated under subparagraph (A) the appropriate percentage
under paragraph (1)(B) of this subsection for the one-year
period following the receipt by the guaranty agency of the
notification of designation under this paragraph.
``(C)(i) Each eligible lender desiring a designation under
subparagraph (A) shall have a financial and compliance audit
of the loan portfolio of such eligible lender conducted
annually by a qualified independent organization or person in
accordance with standards established by the Comptroller
General and the Secretary. The standards shall include a
defined statistical sampling technique designed to measure
the performance rating of the eligible lender for the purpose
of this paragraph. Each eligible lender shall submit the
audit required by this paragraph to the Secretary and to each
appropriate guaranty agency.
``(ii) Each appropriate guaranty agency shall provide the
Secretary with such other information in its possession
regarding an eligible lender desiring designation as may
relate to the Secretary's determination under subparagraph
(A).
``(iii) The Secretary shall make the determination under
subparagraph (A) based upon the audits submitted under this
paragraph and such other information as the appropriate
guaranty agency provides under clause (ii). If the results of
the audit are not persuasively rebutted by such other
information, the Secretary shall inform the eligible lender
and the appropriate guaranty agency that its application for
designation as an exceptional eligible lender has been
approved.
``(iv) Each eligible lender shall pay for all of the costs
of the audits required by this subparagraph.
``(v) Designation as an exceptional eligible lender may be
revoked at any time by the Secretary upon 60 days notice and
an opportunity for a hearing before the Secretary if the
Secretary determines that the eligible lender has failed to
maintain an overall level of regulatory compliance consistent
with the audit submitted by the eligible lender under this
paragraph.
``(D)(i) Each guaranty agency desiring a designation under
subparagraph (A) shall have a financial and compliance audit
of the defaulted loan portfolio of such agency conducted
annually by a qualified independent organization or person in
accordance with standards established by the Comptroller
General and the Secretary. The standards shall include
defined statistical sampling techniques designed to measure
the performance rating of the guaranty agency for the purpose
of this paragraph. Each guaranty agency shall submit the
audit required by this subparagraph to the Secretary.
``(ii) The Secretary shall make the determination under
subparagraph (A) based upon the audits submitted under this
subparagraph and other information in his possession. If the
results of the audit are not persuasively rebutted by such
other information, the Secretary shall inform the guaranty
agency that its application for designation as an exceptional
guaranty agency has been approved.
``(iii) Each guaranty agency shall pay for all of the costs
of the audits required by this paragraph.
``(iv) Designation as an exceptional guaranty agency may be
revoked by the Secretary upon 60 days notice and an
opportunity for a hearing before the Secretary upon a finding
by the Secretary that the guaranty agency has failed to
maintain an overall level of regulatory compliance by the
guaranty agency under this paragraph.
``(E) For purposes of this paragraph, the term `due
diligence requirements' means the activities required to be
performed by lenders on delinquent loans under regulations
establishing requirements for due diligence by lenders in the
collection of guarantee agency loans and the activities
required to be performed by guaranty agencies on collection
of defaulted loans under fiscal administrative and
enforcement requirements issued by the Secretary and any
related or successor regulations.
``(F) Nothing in this paragraph shall be construed (i) to
affect the processing of claims on student loans of eligible
lenders not subject to this paragraph, or (ii) to limit the
authority of the Secretary to approve more than one standard
of due diligence in the collection of loans insured under
this part.''.
(w) Cost of Lender Participation Promotion.--Section
428(f)(1)(A)(i) of the Act is amended by striking
``commercial lender'' and inserting ``eligible lender''.
(x) Income Contingent Repayment.--
(1) Establishment of repayment mechanism.--Section 428 of
the Act is amended by adding at the end the following new
subsection:
``(m) Income Contingent Repayment.--
``(1) Establishment of terms and conditions.--The Secretary
may establish by regulation terms and conditions requiring
the income contingent repayment of loans that are required to
be repaid under this subsection. Such regulations shall
specify the schedules under which the borrower's income will
be assessed for repayment of loans, shall permit the
discharge of remaining obligation on the loan not later than
25 years after the commencement of income contingent
repayment, and may provide for the potential collection of
amounts in excess of the principal and interest owed on the
original loan or loans.
``(2) Collection mechanism.--The Secretary shall, to the
extent funds are available therefor, enter into one or more
contracts or other agreements with private firms or other
agencies of the Government as necessary to carry out the
purposes of this subsection. The regulations required by
paragraph (1) shall not be effective unless the Secretary
publishes a finding that--
``(A) the Secretary has, pursuant to this paragraph,
established a collection mechanism that will provide a high
degree of certainty that collections will be made in
accordance with the repayment option established under
paragraph (1); and
``(B) the use of such repayment option and collection
mechanism will result in an increase in the net amount the
Government will collect.
``(3) Loans for which income contingent repayment is
required.--A loan made under this part (other than under
section 428B) is required to be repaid under this section
if--
``(A) the note or other evidence of the loan contains a
notice that it is subject to repayment under this subsection;
``(B) the note or other evidence of the loan has been
assigned to the Secretary for collection pursuant to
subsection (b)(8); and
``(C) the Secretary has published the finding required by
paragraph (2) of this subsection.
``(4) Additional authority.--The Secretary is authorized to
prescribe such regulations as are necessary to carry out the
purposes of this section and to protect the Federal fiscal
interest.''.
(b) Conforming Amendment.--Section 428(b)(1)(D) is amended
by inserting before the semicolon at the end thereof the
following: ``, and shall contain a notice that repayment may,
following a default by the borrower, be subject to repayment
in accordance with the regulations required by subsection (m)
if the Secretary has published the finding required by
paragraph (2) of such subsection''.
SEC. 428. SUPPLEMENTAL LOAN PROGRAM.
(a) Name of the Program.--Section 428A of the Act is
amended by striking the heading of such section and inserting
the following:
``federal supplemental loans for students''.
(b) Coordination of Stafford and SLS Repayment.--Section
428A(c)(1) of the Act is amended by adding at the end the
following new sentence: ``In the case of a borrower under
this section who is also a borrower under a program of
student loan insurance covered by an agreement under sections
427 or 428(b), the repayment period shall commence six months
after the student ceases to carry at an eligible institution
at least one-half the normal full-time academic workload, as
determined by the institution, except that interest shall
begin to accrue, and shall be paid in accordance with
paragraph (2), notwithstanding such delay in the commencement
of the repayment period.''.
(c) Capitalization of Interest.--Section 428A(c)(2) of the
Act is amended to read as follows:
``(2) Capitalization of Interest.--Interest on loans made
under this section which are disbursed in installments, for
which pay-
[[Page 461]]
ments of principal are deferred under sections
427(a)(2)(C)(i) and 428(b)(1)(M)(i), or for which the
commencement of the repayment period is delayed in accordance
with paragraph (1) to coincide with the commencement of the
repayment period of a loan made under section 427 or 428,
shall, if agreed upon by the borrower and the lender (A) be
paid monthly or quarterly, or (B) be added to the principal
amount of the loan no more frequently than quarterly by the
lender. Such capitalization of interest shall not be deemed
to exceed the annual insurable limit on account of the
student.''.
(d) Limitation.--Section 428A of the Act is amended by
adding at the end the following new subsection:
``(e) Limitation.--No student shall be eligible to borrow
funds under this section if the student is enrolled in an
undergraduate degree or nondegree program of less than 2
academic years in an institution of higher education as
defined in section 481(b) unless the student is ineligible to
receive a Stafford loan.''.
SEC. 429. PLUS LOANS.
(a) Name of the Program.--Section 428B of the Act is
amended by striking the heading of such section and inserting
the following:
``federal plus loans''.
(b) Checks Copayable.--Section 428B of the Act is amended--
(1) in subsection (a)--
(A) by striking ``subsections (c) and (d)'' and inserting
``subsections (c), (d), and (e)''; and
(B) by inserting after ``Parents of a dependent student''
the following: ``, who have no adverse credit history
determined pursuant to regulations of the Secretary,''; and
(2) in subsection (b)--
(A) by striking the subsection designation and heading and
paragraphs (1) and (2); and
(B) by redesignating paragraph (3) as subsection (b);
(3) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(4) by inserting after subsection (b) the following new
subsection:
``(c) PLUS Loan Disbursement.--All loans made under this
section shall be disbursed by--
``(1) an electronic transfer of funds from the lender to
the eligible institution; or
``(2) making the loan copayable to the eligible institution
and the parent borrower.''.
(c) Limitation of Deferral.--Section 428B(d)(1) of the Act
(as redesignated) is amended to read as follows:
``(1) Commencement of repayment.--Repayment of principal on
loans made under this section shall commence not later than
60 days after the date such loan is disbursed by the lender,
subject to deferral during any period during which the parent
meets the conditions required for a deferral under section
427(a)(2)(C) or 428(b)(1)(M).''.
(d) Capitalization of Interest.--Section 428B(d)(2) of the
Act (as redesignated) is amended to read as follows:
``(2) Capitalization of interest.--Interest on loans made
under this section for which payments of principal are
deferred pursuant to paragraph (1) of this subsection shall,
if agreed upon by the borrower and the lender (A) be paid
monthly or quarterly, or (B) be added to the principal amount
of the loan no more frequently than quarterly by the lender.
Such capitalization of interest shall not be deemed to exceed
the annual insurable limit on account of the student.''.
SEC. 430. CONSOLIDATION LOANS.
(a) Name of the Program.--Section 428C of the Act is
amended by striking the heading of such section and inserting
the following:
``federal consolidation loans''.
(b) Use of Consolidation to Avoid Default.--
(1) Eligible borrower.--(A) Section 428C(a)(3)(A)(i) is
amended by striking ``$5,000'' and inserting in lieu thereof
``$10,000''.
(B) Section 428C(a)(3)(A)(ii) is amended to read as
follows:
``(ii) is in repayment status, or in a grace period
preceding repayment, or is a delinquent or defaulted borrower
who will reenter repayment through loan consolidation.''.
(2) Eligible loans.--Section 428C(a)(4)(A) of the Act is
amended to read as follows:
``(A) made, insured, or guaranteed under this part,
including loans on which the borrower has defaulted (but has
made arrangements to repay the obligation on the defaulted
loans satisfactory to the Secretary or guaranty agency,
whichever insured the loans), except for loans made to parent
borrowers under section 428B as in effect prior to the
enactment of the Higher Education Amendments of 1986;''.
(c) Extension of Consolidation Eligibility Period.--Section
428C(a)(3)(B) is amended by striking the first sentence and
inserting the following: ``An individual's status as an
eligible borrower under this section terminates upon receipt
of a consolidation loan under this section except (i) that
loans received prior to the date of the consolidation loan
may be added to the consolidation loan during the 180-day
period following the making of the consolidation loan; and
(ii) with respect to eligible student loans received after
the date of receipt of the consolidation loan.''.
(d) Consolidation of Loans of Married Borrowers.--Section
428C(a)(3) of the Act is amended by adding at the end the
following new subparagraph:
``(C)(i) A married couple, each of whom has eligible
student loans, may be treated as if they were an individual
borrowing under subparagraphs (A) and (B) if they agree to be
held jointly and severally liable for the repayment of a
consolidation loan, without regard to the amounts of their
respective loan obligations that are to be consolidated, and
without regard to any subsequent change that may occur in
their marital status.
``(ii) Only one spouse in a married couple applying for a
consolidation loan under this subparagraph need meet any of
the requirements of subparagraph (A) of this section, except
that each spouse shall (I) individually make the initial
certification that no other application is pending provided
for in subsection (b)(1)(A), and (II) agree to notify the
holder concerning any change of address as provided for in
subsection (b)(4).''.
(e) Interest During Deferral.--Section 428C(b)(4)(C) of the
Act is amended to read as follows:
``(C) provides that periodic installments of principal need
not be paid, but interest shall accrue and be paid by the
Secretary, during any period for which the borrower would be
eligible for a deferral under section 428(b)(1)(M);''.
(f) Repayment Schedules.--Section 428C(c)(2) of the Act is
amended by--
(1) striking ``may'' in the first sentence and inserting
``shall''; and
(2) by striking the second sentence and inserting the
following: ``Such repayment terms shall require that if the
sum of the consolidation loan and the amount outstanding on
other student loans to the individual--
``(i) is equal to or greater than $10,000 but less than
$20,000, then such consolidation loan shall be repaid in not
more than 15 years;
``(ii) is equal to or greater than $20,000 but less than
$40,000, then such consolidation loan shall be repaid in not
more than 20 years;
``(iii) is equal to or greater than $40,000 but less than
$60,000, then such consolidation loan shall be repaid in not
more than 25 years; or
``(iv) is equal to or greater than $60,000, then such
consolidation loan shall be repaid in not more than 30
years.''.
SEC. 430A. DEFAULT REDUCTION PROGRAMS.
Section 428F of the Act (20 U.S.C. 1078-6) is amended--
(1) by striking subsection (a);
(2) in subsection (b)--
(A) in subparagraph (A) of paragraph (1)--
(i) by striking ``Upon'' and inserting ``Each guaranty
agency shall enter into an agreement with the Secretary which
shall provide that upon''; and
(ii) by adding at the end the following new sentence:
``Neither the guaranty agency nor the Secretary shall demand
from a borrower as monthly payment amounts referred to in
this paragraph more than is reasonable and affordable based
upon the borrower's total financial circumstances.''; and
(B) in paragraph (3), by inserting ``or grants'' after
``loans'';
(3) by redesignating subsection (b) (as amended in
paragraph (2)) as subsection (a); and
(4) by adding at the end the following new subsection:
``(b) Special Rule.--Each guaranty agency shall establish a
program which allows a borrower with a defaulted loan or
loans to renew their eligibility for all title IV student
financial assistance (regardless of whether their defaulted
loan has been sold to an eligible lender) upon the borrower's
payment of 6 consecutive monthly payments. The guaranty
agency shall not demand from a borrower as a monthly payment
amount under this subsection more than is reasonable and
affordable based upon the borrower's total financial
circumstances.''.
SEC. 431. DISBURSEMENT RULES.
(a) Monthly or Weekly Disbursement.--Section 428G(c) of the
Act is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) Notwithstanding subsection (a)(2), may, with the
permission of the borrower, be disbursed on a weekly or
monthly basis, provided that the proceeds of the loan are
disbursed in substantially equal weekly or monthly
installments, as the case may be, over the period of
enrollment for which the loan is made.''.
(b) Overaward Adjustments.--Section 428G(d)(2) of the Act
is amended by inserting before the period at the end of the
first sentence the following: ``, except that overawards
permitted pursuant to section 443(b)(4) of the Act shall not
be construed to be overawards for purposes of this
paragraph''.
SEC. 432. UNSUBSIDIZED LOANS; EXTENDED COLLECTION
DEMONSTRATION PROGRAM.
Part B of title IV of the Act is amended by inserting after
section 428G the following new sections:
``unsubsidized stafford loans for middle-income borrowers
``Sec. 428H. (a) In General.--It is the purpose of this
section to authorize insured loans under this part for
borrowers who do not qualify for Federal interest subsidy
payments under section 428 of this Act. Except as provided in
this section, all terms and conditions for Federal Stafford
loans established under section 428 shall apply to loans made
pursuant to this section.
``(b) Eligible Borrowers.--Any student meeting the
definition of student eligibility under section 484 shall be
entitled to borrow an unsubsidized Stafford loan. Such
student
[[Page 462]]
shall provide to the lender a statement from the eligible
institution at which the student has been accepted for
enrollment, or at which the student is in attendance, which--
``(1) sets forth such student's estimated cost of
attendance (as determined under section 472);
``(2) sets forth such student's estimated financial
assistance, including a loan which qualifies for subsidy
payments under section 428 (as defined in section
428(a)(2)(C)(i)); and
``(3) certifies the eligibility of the student to receive a
loan under this section and the amount of the loan for which
such student is eligible, in accordance with subsection (c).
``(c) Determination of Amount of Loan.--The determination
of the amount of a loan by an eligible institution under
subsection (b) shall be calculated by subtracting from the
estimated cost of attendance at the eligible institution any
estimated financial assistance reasonably available to such
student. An eligible institution may not, in carrying out the
provisions of subsection (b) of this section, provide a
statement which certifies the eligibility of any student to
receive any loan under this section in excess of the maximum
amount applicable to such loan.
``(d) Loan Limits.--The annual and aggregate limits for
loans under this section shall be the same as those
established under section 428(b)(1), less any amount received
by such student pursuant to the subsidized Stafford Loan
Program established under section 428.
``(e) Payment of Principal and Interest.--
``(1) Commencement of repayment.--Repayment of principal on
loans made under this section shall commence 6 months after
the month in which the student ceases to carry at least one-
half the normal full-time workload as determined by the
institution.
``(2) Capitalization of interest.--Interest on loans made
under this section for which payments of principal are not
required during the in-school and grace periods or are
deferred under sections 427(a)(2)(C) and 428(b)(1)(M) shall,
if agreed upon by the borrower and the lender (A) be paid at
least quarterly or (B) be added to the principal amount of
the loan on a quarterly basis by the lender. Such
capitalization of interest shall not be deemed to exceed the
annual insurable limit on account of the student.
``(3) Subsidies prohibited.--No payments to reduce interest
costs shall be paid pursuant to section 428(a) of this part
on loans made pursuant to this section.
``(4) Applicable rates of interest.--Interest on loans made
pursuant to this section shall be at the applicable rate of
interest provided in section 427A(d).
``(f) Insurance Premium.--
``(1) Amount of insurance premium.--No origination fee
shall be collected on a loan made pursuant to this section.
However, the lender shall charge the borrower an insurance
premium in an amount of 3 percent of the principal amount of
the loan, to be deducted proportionately from each
installment payment of the proceeds of the loan prior to
payment to the borrower.
``(2) Relation to applicable interest.--Such insurance
premium shall not be taken into account for purposes of
determining compliance with section 427A.
``(3) Disclosure required.--The lender shall disclose to
the borrower the amount and method of calculating the
insurance premium.
``(4) Use of insurance premium to offset default costs.--
Each lender making loans under this section shall transmit
all insurance premiums authorized to be collected from
borrowers to the Secretary, who shall use such premiums to
pay the Federal costs of default claims paid for loans under
this section and to reduce the cost of special al-
lowances paid thereon, if any, under section 438(b).
``(g) Single Application Form.--Where practicable, a
guaranty agency shall use a single application form for
subsidized Stafford loans made pursuant to section 428 and
for unsubsidized Stafford loans made pursuant to this
section.
``extended collection demonstration program
``Sec. 428I. (a) Agreements for Demonstration Program.--The
Secretary shall, in accordance with the provisions of this
section, enter into agreements with guaranty agencies for the
establishment of not to exceed 9 demonstration programs
designed to reduce defaults under this part through extended
efforts on delinquent student loans originally guaranteed by
such agencies.
``(b) Selection of Participants.--
``(1) Submission of applications.--Each guaranty agency
desiring to participate in the program authorized by this
section shall submit an application to the Secretary at such
time and in such manner as the Secretary may prescribe.
``(2) Selection of participants.--The Secretary shall
select participants to establish extended collection programs
under this section on the basis of--
``(A) the applicant's experience and success in working
with borrowers and eligible lenders to prevent default,
including the use of forbearance;
``(B) the applicant's experience and success in the use of
preclaims assistance and supplemental preclaims assistance to
reduce defaults;
``(C) evidence that the applicant will use the program
authorized by this section for borrowers who attend all types
of institutions of higher education, in a manner which
substantially reflects the overall loans guaranteed by the
applicant which are delinquent;
``(D) the novel and innovative approaches that the
applicant proposes to use in the extended collection
demonstration program; and
``(E) the commitment of the applicant to the program, as
documented in the application.
``(3) Application requirements.--Each such application
shall include--
``(A) the modified lender agreement the guaranty agency has
adopted by use by eligible lenders participating in the
program;
``(B) a description of the novel and innovative approaches
that the applicant will use in the extended collection
demonstration program; and
``(C) such additional information as the Secretary may
reasonably require to evaluate applications.
``(4) Priorities.--In selecting participants under this
section, the Secretary shall give priority to applications
submitted by guaranty agencies having extensive experience in
the administration and collection of student loans, either
directly or through use of contract loan services.
``(c) Program Agreement.--Each agreement entered into under
this section shall include--
``(1) the provision of individualized or flexible repayment
plans, including plans designed to meet the needs of
borrowers participating in the program who face financial
difficulty in repaying their loan;
``(2) the performance of aggressive and concentrated due
diligence efforts by the holder; and
``(3) a requirement that eligible lenders furnish to the
guaranty agency records of collection efforts and techniques,
as specified by the guaranty agency or the Secretary, or
both.
``(d) Eligibility.--
``(1) Eligibility.--Loans made under this part shall be
eligible for extended collection pursuant to this section
if--
``(A) the location of the borrower is known;
``(B) the borrower has made no payments or has missed at
least two consecutive payments;
``(C) the loans are at least 120 days but less than 180
days delinquent, and all due diligence required has been
performed;
``(D) the loan entered repayment if fiscal year 1990 or
later;
``(E) the participating guaranty agency has provided
preclaims assistance pursuant to a request by the eligible
lender at 60 to 90 days of delinquency; and
``(F) the eligible lender providing extended collection
efforts is not in possession of information that the loan may
be uncollectible.
``(2) Lender eligibility to participate.--An eligible
lender may participate in the program authorized by this
section if--
``(A) the eligible lender has an agreement with the
guaranty agency with which the application is being filed for
the guaranty of consolidation loans under section 428C;
``(B) the eligible lender is not subject to a limitation,
suspension, or termination agreement or Default Management
Plan under this part; and
``(C) the eligible lender meets such other criteria as the
guaranty agency and the Secretary may reasonably require.
``(e) Extended Collection Period.--Notwithstanding any
other provision of law, loans held pursuant to this part and
included in the program authorized by this section may be
held by the eligible lender for--
``(1) 540 days after the loan becomes delinquent with
respect to any installment;
``(2) not more than 30 days after the eligible lender
participating under this section determines in accordance
with guidelines promulgated by the guaranty agency, that no
further collection effort on the loan is likely to result in
repayment by the borrower; or
``(3) a period that is within 30 days after notification
from the guaranty agency, but no earlier than the 270th day
of delinquency, whichever comes first.
``(f) Reports to the Secretary and to the Congress.--
``(1) Annual reports.--Each participant with an agreement
with the Secretary to offer an extended collection program
shall submit a report once a year to the Secretary
describing--
``(A) the effectiveness of the program, including
statistics on the number of accounts brought into repayment
between the 180th day and the submission of the claim;
``(B) a statistical summary of the basis for cures of
delinquent loans brought current through the program,
including specific summaries of the numbers of loans brought
into repayment through forbearances, payments, and loan
consolidation;
``(C) information on strategies used by eligible lenders in
the program to effectuate the initiation of repayment; and
``(D) evidence of efforts to use the program authorized by
this section for borrowers who attended traditional 4-year
institutions, community colleges, and vocational and
technical schools, which substantially reflect the overall
portfolio of the eligible lenders.
``(2) Report by the secretary.--The Secretary shall, not
later than September 30, 1993, prepare and submit an interim
report and not later than September 30, 1995, prepare and
submit a final report on the demonstration project authorized
by this section. The reports shall evaluate the results of
the demonstration conducted under this section, assess the
costs and benefits of this demonstration and include such
rec-
[[Page 463]]
ommendations as the Secretary may deem appropriate, including
expansion of the demonstration program.
``(g) Regulations.--The Secretary shall prescribe
regulations for the administration of this section within 240
days of the enactment of this Act.
``(h) Applicability of Other Terms, Conditions, and
Benefits.--A loan subject to the provisions of this section
shall be subject to the same terms and conditions and qualify
for the same benefits and privileges as other loans made
under this part, except as otherwise specifically provided
for in this section.
``(i) Termination.--The demonstration program shall
terminate on September 30, 1995.''.
SEC. 433. ADMINISTRATIVE PROVISIONS.
(a) Authority To Regulate Servicers.--Section 432(a)(1) is
amended by inserting before the semicolon the following: ``,
including regulations with respect to third party servicers
(including but not limited to regulations concerning
financial responsibility standards for, and the assessment of
liabilities for program violations against, such servicers)
to ensure sound management and accountability of programs
under this part''.
(b) Limitation, Suspension, and Termination.--Section 432
of the Act is amended--
(1) in subsection (a)(3), by striking out ``on the
record,'' and inserting a comma;
(2) in subsection (g)(1), by striking out ``on the
record,'' and inserting a comma;
(3) in subsection (h)(2)(A)--
(A) by striking out ``shall, in accordance with sections
556 and 557 of title 5, United States Code,'' in the first
sentence and inserting ``shall''; and
(B) by striking out ``The Secretary'' and all that follows
through ``disqualification--'' in the second sentence and
inserting the following: ``The Secretary shall uphold the
imposition of such limitation, suspension, or termination in
the student loan insurance program of each of the guaranty
agencies under this part, and shall notify such guaranty
agencies of such sanction--'';
(4) in subsection (h)(2)(B), by striking out
``disqualification'' each place it appears and inserting
``sanction''; and
(5) by redesignating subparagraph (B) of subsection (h)(2)
as subparagraph (C) and by inserting after subparagraph (A)
the following new subparagraph:
``(B) The Secretary's review under this paragraph of the
limitation, suspension, or termination imposed by a guaranty
agency pursuant to section 428(b)(1)(U) shall be limited to--
``(i) a review of the written record of the proceedings in
which the guaranty agency imposed such sanctions; and
``(ii) a determination as to whether the guaranty agency
complied with section 428(b)(1)(U) and any notice and hearing
requirements specified in regulations prescribed under this
part.''; and
(6) in subsection (h)(3)(A)--
(A) by striking out ``shall, in accordance with sections
556 and 557 of title 5, United States Code,'' in the first
sentence and inserting ``shall''; and
(B) by striking out ``The Secretary'' and all that follows
through ``disqualification--'' in the second sentence and
inserting the following: ``The Secretary shall uphold the
imposition of such limitation, suspension, or termination in
the student loan insurance program of each of the guaranty
agencies under this part, and shall notify such guaranty
agencies of such sanctions--'';
(7) in subsection (h)(3)(B), by striking out
``disqualification'' each place it appears and inserting
``sanction''; and
(8) by redesignating subparagraph (B) of subsection (h)(3)
as subparagraph (C), and by inserting after subparagraph (A)
the following new subparagraph:
``(B) The Secretary's review under this paragraph of the
limitation, suspension, or termination imposed by a guaranty
agency pursuant to section 428(b)(1)(T) shall be limited to--
``(i) a review of the written record of the proceedings in
which the guaranty agency imposed such sanctions; and
``(ii) a determination as to whether the guaranty agency
complied with section 428(b)(1)(T) and any notice and hearing
requirements specified in regulations prescribed under this
part.''.
(c) Standardization of Forms, Procedures, and Data
Reporting.--Section 432 of the Act is amended by adding at
the end the following new subsections:
``(k) Regulations on Standardization and Simplification of
Forms and Procedures.--
``(1) Community recommendations.--Within 240 days following
the enactment of this Act, guaranty agencies, lenders,
institutions of higher education, third party servicers and
other organizations involved in providing loans under this
part shall make recommendations to the Secretary, which the
Secretary shall promulgate as regulations to simplify
administration of the loan programs authorized under this
part and to eliminate differences between forms, procedures
and standards between guaranty agencies. Such regulations
shall be designed to--
``(A) simplify all aspects of the student loan process to
simplify the application, disbursement and origination
processes, communications with lenders and guarantors, and to
enhance understanding of the loan obligation on the part of
borrowers;
``(B) simplify fulfillment of institutional
responsibilities under this part by institutions of higher
education;
``(C) improve the administration and oversight of the
program by the United States Department of Education.
``(2) Simplification requirements.--Such regulations shall
include--
``(A) standardization of computer formats, forms design and
guaranty agency procedures relating to the origination,
servicing and collection of loans made under this part;
``(B) authorization of alternate means of documents
retention, including the use of microfilm, microfiche, laser
disc, compact disc, and other methods allowing the production
of a facsimile of the original documents;
``(C) authorization of the use of computer or similar
electronic methods of maintaining records relating to the
performance of servicing, collection and other regulatory
requirements under this Act; and
``(D) authorization and implementation of electronic data
linkages for the exchange of information to and from lenders,
guarantors, institutions of higher education, third party
servicers, and the Department for student status confirmation
reports, claim filing, interest and special allowance
billing, deferment processing, and all other administrative
steps relating to loans made pursuant to this part where
using electronic data linkage is feasible.
``(3) Regulations by the secretary.--If guaranty agencies,
lenders, institutions of higher education, and other
organizations involved in providing loans under this part are
unable to agree upon recommendations to standardize and
simplify forms and procedures within 240 days of enactment of
the Higher Education Amendments of 1992, the Secretary is
authorized to issue such regulations meeting the requirements
of this subsection as he shall deem appropriate.
``(4) Additional recommendations.--The Secretary shall seek
additional recommendations from guaranty agencies, lenders,
institutions of higher education, third party servicers and
other organizations involved in providing loans under this
part, no less frequently than annually, for additional
methods of simplifying and standardizing the administration
of the programs authorized by this part.
``(l) Standardization of Data Reporting.--
``(1) Common reporting formats.--The Secretary shall
promulgate standards including necessary rules, regulations
(including the definitions of all relevant terms) and
procedures so as to require all lenders and guaranty agencies
to report information on all aspects of loans made under this
part in uniform formats, so as to permit the direct
comparison of data submitted by individual lenders, servicers
or guaranty agencies.
``(2) Establishment of standards.--For the purpose of
establishing standards under this section, the Secretary
shall--
``(A) adopt the recommendation of guaranty agencies,
lenders, institutions of higher education, and organizations
representing these groups, if submitted to the Secretary
within 240 days of the date of the enactment of the Higher
Education Amendments of 1992;
``(B) develop standards designed to be implemented by all
guaranty agencies and lenders with minimum modifications to
existing data processing hardware and software;
``(C) publish the specifications selected to be used, so as
to encourage the automation of exchanges of information
between all parties involved in loans under this part.''.
(d) Repayment by Employers.--Section 432 is further amended
by adding at the end the following new subsection:
``(m) Program to Encourage Employer Repayment.--The
Secretary shall undertake a program to encourage corporations
and other private and public employers, including the Federal
Government, to assist borrowers in repaying loans received
under this title, including providing employers with options
for payroll deduction of loan payments and for offering loan
repayment matching provisions as part of employee benefit
packages. The Secretary shall publicize models for providing
such repayment assistance and each year select entities that
deserve recognition, through means devised by the Secretary,
for their development of innovative plans for providing such
assistance to their employees. Within one year after the date
of enactment of this Act, the Secretary shall recommend to
the appropriate committees in the House and Senate changes to
statutes that could be made in order to further encourage
such efforts.''.
(e) Default Reduction.--Section 432 of the Act is amended
by adding at the end the following new subsection:
``(n) Default Reduction Management.--
``(1) Authorization.--There are authorized to be
appropriated $25,000,000 for fiscal year 1993 and each of the
four succeeding fiscal years for the Secretary to expend for
default reduction management activities to result in a
performance measure of reducing defaults by 5 percent
relative to the prior fiscal year. Such funds shall be in
addition to, and not in lieu of, other appropriations made
for such purposes.
``(2) Allowable activities.--Allowable activities for which
such funds shall be expended by the Secretary shall include
(but not be limited to) the following: (A) program reviews;
(B) audits; (C) debt management programs; (D) training
activities; and (E) such other management improvement
activities approved by the Secretary.
``(3) Plan for use required.--The Secretary shall submit a
plan, for inclusion in the materials accompanying the
President's budget each fiscal year, detailing the
expenditure of funds authorized by this section to accomplish
the 5 percent reduction in defaults. At the conclusion of the
fiscal year, the Secretary shall report his findings and
activities concerning the expenditure of
[[Page 464]]
funds and whether the performance measure was met. If the
performance measure was not met, the Secretary shall report
the following:
``(A) why the goal was not met, including an indication of
any managerial deficiencies or of any legal obstacles;
``(B) plans and schedule for achieving the established
performance goal;
``(C) recommended legislative or regulatory changes
necessary to achieve the goal; and
``(D) if the performance standard or goal is impractical or
infeasible, why that is the case and what action is
recommended, including whether the goal should be changed or
the program altered or eliminated.
This report shall be submitted to the Appropriations
Committees of the House of Representatives and the Senate and
to the Committee on Education and Labor of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate.
``(4) Training activities.--Not less than \1/5\ of the
amount made available under paragraph (1) for fiscal year
1993 and each of the four succeeding fiscal years shall be
used to carry out section 486 of this Act.''.
(f) Consequences of Guaranty Agency Insolvency.--Section
432 of the Act is further amended by adding at the end the
following new subsections:
``(o) Consequences of Guaranty Agency Insolvency.--In the
event that the Secretary has determined that a guaranty
agency is unable to meet its insurance obligations under this
part, the holder of loans insured by the guaranty agency may
submit insurance claims directly to the Secretary and the
Secretary shall pay to the holder the full insurance
obligation of the guaranty agency, in accordance with
insurance requirements no more stringent than those of the
guaranty agency. Such arrangements shall continue until the
Secretary is satisfied that the loans have been transferred
to another guarantor who can meet the insurance obligations
or a successor will assume the outstanding insurance
obligations.
``(p) Insolvency of a Guaranty Agency.--
``(1) Information collection; standards.--Each guaranty
agency shall provide, on at least an annual basis as
determined by the Secretary, financial information (including
at a minimum the amount of current reserves, cash
disbursements, and accounts payable and receivable) requested
by the Secretary to use in an evaluation of the financial
solvency of the agency. The Secretary, based on the
information provided under this paragraph, shall establish a
standard for use in determining which guaranty agencies shall
be subject to guaranty agency management plans under
paragraph (2).
``(2) Management plans.--Any guaranty agency determined by
the Secretary, under the standards established pursuant to
paragraph (1), as in need of corrective measures shall be
subject to a guaranty agency management plan. The plan shall
be drafted by the guaranty agency and shall identify
management, investment, operational, and policy changes
designed to improve the financial viability of the agency.
The plan shall be submitted to the Secretary under a schedule
and in a form established by the Secretary, and shall be
subject to approval by the Secretary.
``(3) Agency failure to submit acceptable plan or to
improve under plan.--If a guaranty agency fails to submit a
guaranty agency management plan acceptable to the Secretary
on a timely basis, the Secretary determines that the guaranty
agency has failed to improve substantially its administrative
and financial condition in accordance with its management
plan under this subsection, or the guaranty agency is
otherwise determined by the Secretary to not be financially
viable, the Secretary shall take one or more of the following
steps--
``(A) provide the guaranty agency with additional advance
funds in accordance with section 422(c)(7) in order to meet
immediate cash needs of the guaranty agency and ensure the
uninterrupted payment of claims, with such restrictions on
the use of such funds as determined appropriate by the
Secretary;
``(B) require the transfer of guarantees to another
guaranty agency, subject to such terms and conditions as the
receiving agency and the Secretary may mutually agree to;
``(C) terminate the reinsurance agreement of the guaranty
at a specified date, or require the merger or consolidation
of the guaranty agency with another agency or other agencies,
subject to such terms and conditions as the receiving agency
or agencies and the Secretary may mutually agree to;
``(D) transfer guarantees to the Department for the purpose
of servicing and collection of the loans guaranteed by such
agency, and, after notice to the affected lenders, the
payment of claims thereon, and process such claims using the
claims standards of the guaranty agency, if such standards
are determined by the Secretary to be in compliance with the
Act; or
``(E) take any other action deemed necessary by the
Secretary to ensure the proper servicing and collection of
such loans and the payment of default claims to lenders, and
avoid disruption to the student loan program.
``(4) Congressional reports.--The Secretary within 3 months
after the end of each fiscal year, shall submit to the House
Committee on Education and Labor and the Senate Committee on
Labor and Human Resources a report specifying the Secretary's
assessment of the fiscal soundness of the guaranty agency
system, together with recommendations for legislative
changes, if necessary, for the maintenance of a strong
guaranty agency system.
``(5) Confidential treatment of information.--
Notwithstanding any other provision of law, the information
transmitted to the Secretary pursuant to this subsection
shall be confidential and exempt from disclosure under
section 552a of title 5, United State Code, relating to
freedom of information, or any other Federal law.''.
(g) Conforming Amendments.--(1) Section 422(c) of the Act
is amended--
(A) by striking ``Advances pursuant to this subsection'' in
paragraph (5) and inserting ``Except as provided in paragraph
(7), advances pursuant to this subsection''; and
(B) by inserting, after paragraph (6), the following new
paragraph:
``(7) Emergency advances.--The Secretary is authorized to
make advances, on terms and conditions satisfactory to the
Secretary, to a guaranty agency in accordance with section
432(o) in order to assist the agency in meeting its immediate
cash needs and ensure the uninterrupted payment of default
claims by lenders.''.
(2) Section 428(b)(1) of the Act is amended--
(A) by striking out the period at the end of subparagraph
(X) and inserting ``; and''; and
(B) by adding at the end the following new subparagraph:
``(Y) provides information to the Secretary in accordance
with section 432(o) and maintains reserve funds determined by
the Secretary to be sufficient in relation to such agency's
guarantee obligations.''.
SEC. 434. STUDENT LOAN INFORMATION.
Section 433(a) of the Act is amended--
(1) in paragraph (3), by inserting ``interest rates,''
before ``origination fee'';
(2) by striking paragraphs (4), (5), (7), (9), (10), (12),
and (13);
(3) by redesignating paragraph (6) as paragraph (4);
(4) by redesignating paragraph (8) as paragraph (5);
(5) by redesignating paragraph (11) as paragraph (6) and
inserting ``and'' after the semicolon at the end thereof; and
(6) by adding at the end the following:
``(7) a statement that--
``(A) the borrower's loan repayment obligation is separate
and distinct from the institution's obligation to the
borrower and that, except in the case of a loan originated by
the institution, a failure by the institution to comply with
any Federal, State, or local law cannot excuse any portion of
the borrower's obligation to repay the loan; and
``(B) prominently and clearly states that the borrower is
receiving a loan which must be repaid.
For purposes of paragraph (7), an institution shall be deemed
to have `originated' a loan if a special relationship exists
between the institution and lender with respect to the loan--
``(i) under which the lender delegates to the institution
substantial loan-making functions normally performed by
lenders in making loans under this part; or
``(ii) which is evidenced by (i) a written agreement
between the institution and the lender providing for such
delegation; or (ii) in the case of an institution which, with
the consent of the lender, completes the lender's section of
the loan application on behalf of the lender and signs such
application as agent for the lender.''.
SEC. 435. DEFINITIONS.
(a) Eligible Institution.--Section 435(a) of the Act is
amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), the
term `eligible institution' means an institution of higher
education, as defined in section 481.'';
(2) in paragraph (3)(B)(ii), by striking ``30 percent'' and
inserting ``25 percent''; and
(3) by redesignating paragraph (3) as paragraph (2).
(b) Repeal of Separate Definition of Institution of Higher
Education.--
(1) Amendment.--Subsection (b) of section 435 of the Act is
repealed.
(2) Reference.--With respect to reference in any other
provision of law to the definition of institution of higher
education contained in section 435(b) of the Act, such
provision shall be deemed to refer to section 481(a) of the
Act.
(c) Repeal of Definition of Vocational School.--Subsection
(c) of section 435 of the Act is repealed.
(d) Eligible Lender.--Section 435(d) of the Act is
amended--
(1) in paragraph (1)(A)--
(A) by striking ``a trust company,''; and
(B) in clause (ii)--
(i) by inserting ``or'' at the end of subclause (I); and
(ii) by striking ``, or (III)'' and all that follows
through ``January 1, 1981;'' and inserting the following:
``(III) in the case of Union Bank and Trust Company of
Lincoln, Nebraska, that institution's portfolio of loans held
under this part does not exceed 96.09 percent nor fall below
50 percent of its total consumer credit portfolio, the volume
of loans it makes under this part in any calendar year does
not exceed $143,800,000, and its holdings of loans under this
part do not exceed $397,200,000;'';
(2) in paragraph (2)--
(A) by striking ``institutions; and'' at the end of
subparagraph (C) and inserting ``institution;'';
(B) by inserting ``and'' after the semicolon at the end of
subparagraph (D); and
[[Page 465]]
(C) by inserting after subparagraph (D) the following new
subparagraphs:
``(E) shall not have a cohort default rate above 15 percent
as defined in section 435(m); and
``(F) shall use the proceeds from special allowance
payments and interest payments from borrowers for need-based
grant programs, except for reasonable reimbursement for
direct administrative expenses;''; and
(3) by inserting after paragraph (5) the following new
paragraph:
``(6) Loans that have not been consummated.--Loans that
have not been consummated (loans for which the disbursement
checks have not been cashed) may not be purchased from the
original lender.''.
(e) Repeal of Additional Definitions.--Section 435 of the
Act is further amended by striking subsections (g), (h), and
(n).
(f) Definition of Cohort Default Rate.--Section 435(m) of
the Act is amended by striking out the third sentence and
inserting ``For any fiscal year in which less than 30 of the
institution's current and former students enter repayment,
the term `cohort default rate' means the percentage of such
current and former students who entered repayment on such
loans in any of the three most recent fiscal years, who
default before the end of the fiscal year immediately
following the year in which they entered repayment.''.
SEC. 436. REPAYMENTS BY SECRETARY.
Section 437 of the Act is amended to read as follows:
``repayment by the secretary of loans of bankrupt, deceased, or
disabled borrowers; treatment of borrowers attending closed schools or
falsely certified as eligible to borrow
``Sec. 437. (a) Repayment in Full for Death and
Disability.--If a student borrower who has received a loan
described in subparagraph (A) or (B) of section 428(a)(1)
dies or becomes permanently and totally disabled (as
determined in accordance with regulations of the Secretary),
then the Secretary shall discharge the borrower's liability
on the loan by repaying the amount owed on the loan.
``(b) Repayment of Amount Subject to Bankruptcy Action.--If
the collection of a loan described in subparagraph (A) or (B)
of section 428(a)(1) or sections 428A, 428B, 428C, or 428H is
stayed in any action under the Bankruptcy Code, the Secretary
shall repay the unpaid balance of principal and interest owed
on the loan.
``(c) Write-off for Borrowers at Closed Schools and for
Borrowers Whose Eligibility was Falsely Certified.--
``(1) Discharge of borrower's liability.--If a student
borrower who received a loan described in subparagraph (A) or
(B) of section 428(a)(1) is unable to complete a course of
instruction during the loan period for which he borrowed, due
to the closing of the eligible institution at which he was in
attendance, or if his eligibility to borrow under this part
was fraudulently certified by the eligible institution, the
Secretary shall discharge the borrower's liability on the
loan by repaying the amount owed on the loan and shall
subsequently pursue any claim available to such borrower
against the institution or settle the loan obligation
pursuant to the bonding authority under section 487(c).
``(2) Assignment of right.--A borrower whose loan has been
discharged pursuant to this subsection shall be deemed to
have assigned to the United States the right to a loan refund
up to the amount discharged against the institution, its
affiliates, and principals.
``(3) Eligibility for additional assistance.--(A) The
period of a student's attendance at an institution at which
the student was unable to complete a course of study due to
the closing of the institution shall not be considered for
purposes of calculating the student's period of eligibility
for additional assistance under this title; and
``(B) a borrower whose loan has been discharged pursuant to
this subsection shall not be precluded from receiving
additional grants, loans, or work assistance under this title
for which he would be otherwise eligible, except for
defaulting on a loan which has been discharged.
``(4) Report to credit bureaus.--The Secretary shall report
to credit bureaus with respect to loans which have been
discharged pursuant to this subsection.
``(5) Effective date.--This subsection shall apply to any
unpaid balance of loans made to borrowers who were in
attendance at an institution which ceased to provide
instruction on or after January 1, 1986.''.
SEC. 436A. DEBT MANAGEMENT OPTIONS.
Part B of title IV of the Act is amended by inserting after
section 437 the following new section:
``debt management options
``Sec. 437A. (a) Program Authority.--For the purpose of
offering additional debt management options, the Secretary is
authorized, to the extent of funds appropriated under
subsection (d)--
``(1) to acquire from eligible holders the notes of
borrowers under this part (other than section 428B) who are
considered to be at high risk of default and who submit a
request to the Secretary for an alternative repayment option;
``(2) to offer such borrowers one or more alternative
repayment options, which may include graduated or extended
repayment and which shall, subject to subsection (b)(2),
include an income contingent repayment option established in
accordance with subsection (b); and
``(3) to enter into contracts or other agreements with
private firms or other agencies of the Government as
necessary to carry out the purposes of this section.
``(b) Income Contingent Repayment Option.--
``(1) Regulations.--For the purposes of subsection (a)(2),
the Secretary shall, by regulation, establish the terms and
conditions for an income contingent repayment option. Such
regulations shall specify the schedules under which income
will be assessed for repayment of loans, shall permit the
discharge of remaining obligation on the loan not later than
25 years after the commencement of income contingent
repayment, and may provide for the potential collection of
amounts in excess of the principal and interest owed on the
original loan or loans.
``(2) Collection mechanism determination required.--Such
regulations shall not be effective unless the Secretary
publishes a finding that--
``(A) the Secretary has, pursuant to subsection (a)(3),
established a collection mechanism that will provide a high
degree of certainty that collections will be made in
accordance with the repayment option established under
paragraph (1); and
``(B) the use of such repayment option and collection
mechanism will result in an increase in the net amount the
Government will collect.
``(c) Determinations of High Risk of Default.--In making
determinations under subsection (a)(1), the Secretary shall--
``(1) consider the ratio of part B debt repayment to
income; or
``(2) establish, by regulation, such other indicators of
high risk as the Secretary considers appropriate
``(d) Loan Limitation.--Not more than $200,000,000 may be
used to acquire loans under this section in any fiscal year.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for fiscal year 1994 and for each of
the 4 succeeding fiscal years.''.
SEC. 437. SPECIAL RULE; ELIMINATION OF DISCOUNTING.
(a) Special Allowance.--Section 438(b)(2) of the Act is
amended--
(1) in subparagraph (A)(iii), by striking ``3.25'' and
inserting ``3.0, for periods after the beginning of the
repayment period pursuant to section 428(b)(8), and 2.85 at
all other times''; and
(2) in subparagraph (D)(i), by striking ``3.25'' and
inserting ``3.0, for periods after the beginning of the
repayment period pursuant to section 428(b)(8), and 2.85 at
all other times''.
(b) Special Allowance Permitted on Unsubsidized Loans.--
Section 438(b)(5)(A)(ii) of the Act is amended by inserting
``428H,'' after ``428C,''.
(c) Special Rule.--Section 438(b)(5) is amended by adding
at the end thereof the following flush sentence:
``As used in this section, the term `eligible loan' includes
all loans subject to section 428(c)(10).''.
(d) Origination Fees.--Section 438(c) is amended--
(1) in paragraph (2), by striking ``With'' and inserting
``Subject to paragraph (6) of this subsection, with''; and
(2) by adding at the end the following new paragraphs:
``(6) SLS and plus loans.--With respect to any loans made
under section 428A or 428B on or after October 1, 1992, each
eligible lender under this part shall charge the borrower an
origination fee of 5 percent of the principal amount of the
loan, to be deducted proportionately from each installment
payment of the proceeds of the loan prior to payments to the
borrower.
``(7) Distribution of origination fees.--All origination
fees collected pursuant to this section on loans authorized
under section 428A or 428B shall be deposited in the fund
authorized under section 431 of this part.''.
(e) Discounting.--Section 438(d)(2)(C) of the Act is
amended by striking ``or discount''.
SEC. 438. STUDENT LOAN MARKETING ASSOCIATION FACILITY
FINANCING.
Section 439(d)(5) of the Act is amended by striking ``third
highest rating'' and inserting ``second highest rating''.
SEC. 439. STUDENT LOAN MARKETING ASSOCIATION FINANCIAL SAFETY
AND SOUNDNESS.
(a) Capital Standards and Reporting.--Section 439 of the
Higher Education Act of 1965 is amended by adding the
following new subsection:
``(r) Safety and Soundness of the Association.--
``(1) Reports by the association.--The Association shall
promptly furnish to the Secretary and the Secretary of
Education copies of all periodic financial reports publicly
distributed by the Association and reports on the Association
prepared by nationally recognized statistical rating
organizations which are received by the Association.
``(2) Audit by the secretary and access to relevant
information.--(A) The Secretary is authorized at his
discretion to appoint auditors to audit the Association from
time to time to determine the condition of the Association
for the purpose of assessing its financial safety and
soundness. The Secretary is authorized to contract for
services of such technical experts as the Secretary deems
necessary and appropriate to provide technical assistance to
any auditor appointed under this subsection. Each auditor
appointed under this subsection shall make an audit of the
Association to the extent re-
[[Page 466]]
quested by the Secretary and shall make a report to the
Secretary of the results of such audit. A copy of such report
shall be furnished to the Association at the same time it is
delivered to the Secretary and the Secretary of Education.
``(B) The Association shall provide full and prompt access
to the Secretary to its books and records and other
information requested by the Secretary.
``(3) Capital standard.--If the capital ratio is less than
2 percent at the end of the Association's most recent
calendar quarter the Association shall, within 60 days of
such occurrence, submit to the Secretary a plan, in
reasonable detail, which the Association believes is adequate
to cause within 36 months the capital ratio to equal or
exceed 2 percent.
``(4) Capital plan.--
``(A) Submission, approval, and implementation.--(i) The
Secretary and the Association shall consult with respect to
any plan submitted pursuant to paragraph (3) and the
Secretary shall approve such plan (or a modification thereof
accepted by the Association) or disapprove such plan within
30 days after such plan is first submitted to the Secretary
by the Association, unless the Association and Secretary
mutually agree to a longer consideration period. If the
Secretary approves a plan (including a modification of a plan
accepted by the Association), the Association shall forthwith
proceed with diligence to implement such plan to the best of
its ability.
``(ii) If the Secretary does not approve a plan as provided
herein, then not later than the earlier of the date the
Secretary disapproves of such plan by written notice to the
Association or the expiration of the 30-day consideration
period referred to above (as such period may have been
extended by mutual agreement), the Secretary shall submit the
Association's plan, in the form most recently proposed to the
Secretary by the Association, together with a report on his
reasons for disapproval of such plan to the Chairman and
ranking member of the Senate Committee on Labor and Human
Resources and to the Chairman and ranking member of the House
Committee on Education and Labor. A copy of such submission
simultaneously shall be sent to the Association and the
Secretary of Education by the Secretary. Upon receipt of the
submission by the Association, it shall forthwith proceed
with diligence to implement the most recently proposed plan
of the Association. The Association, within 30 days after
receipt from the Secretary of such submission, shall submit
to such Chairman and ranking members a written response to
such submission, setting out fully the nature and extent of
its agreement or the disagreement with the Secretary with
respect to the plan submitted to the Secretary and any
findings of the Secretary.
``(B) Modified plan.--(i) If the capital ratio does not
exceed 1.5 percent, the Association shall submit to the
Secretary a modified plan to increase promptly its capital
ratio to equal or exceed 1.5 percent. The Secretary and the
Association shall consult with respect to any modified plan
submitted pursuant to this subparagraph. The Secretary shall
approve such plan (or a modification thereof accepted by the
Association) or disapprove such plan within 30 days after
such plan is first submitted to the Secretary by the
Association, unless the Association and Secretary mutually
agree to a longer consideration period. If the Secretary
approves a plan (including a modification of a plan accepted
by the Association), the Association shall forthwith proceed
with diligence to implement such plan to the best of its
ability.
``(ii) If the Secretary disapproves a plan submitted
pursuant to this subparagraph,
then, not later than the earlier of the date the Secretary
disapproves of such plan (by written notice to the
Association) or the expiration of the 30-day consideration
period described in clause (i) of this subparagraph (as such
period may have been extended by mutual agreement), the
Secretary shall prepare and submit a plan, together with a
report on his reasons for disapproval of the Association's
plan, to the Committee on Labor and Human Resources of the
Senate and to the Committee on Education and Labor of the
House of Representatives. A copy of such submission
simultaneously shall be sent to the Association and the
Secretary of Education by the Secretary. The Association,
within 5 days after receipt from the Secretary of such
submission, shall submit to such Committees a written
response to such submission, setting out fully the nature and
extent of its agreement or disagreement with the Secretary
with respect to the disapproved plan and the plan of the
Secretary and any findings of the Secretary. If, within 60
legislative days after the date of the Secretary's submission
under this subparagraph, the Congress has not otherwise
expressly provided by law, the Association shall forthwith
proceed with diligence to implement the plan proposed by the
Secretary under this subparagraph. For purposes of this
subparagraph, the term `legislative days' means only days on
which either House of Congress is in session.
``(5) Substantial capital ratio reduction.--If the capital
ratio of the Association does not equal or exceed 1.5
percent, the Secretary may, until the capital ratio equals or
exceeds 1.5 percent, take any one or more of the following
actions:
``(A) Limit increase in liabilities.--Limit any increase
in, or order the reduction of, any liabilities of the
Association, except as necessary to fund student loan
purchases and warehousing advances.
``(B) Restrict growth.--Restrict or eliminate growth of the
Association's assets, other than student loans purchases and
warehousing advances.
``(C) Restrict distributions.--Restrict the Association
from making any capital distribution.
``(D) Require issuance of new capital.--Require the
Association to issue new capital in any form and in any
amount sufficient to restore at least a 1.5 percent capital
ratio.
``(E) Limit executive compensation.--Prohibit the
Association from increasing for any executive officer any
compensation including bonuses at a rate exceeding that
officer's average rate of compensation during the previous 12
calendar months and prohibiting the Board from adopting any
new employment severance contracts.
``(6) Critical capital standard.--If the capital ratio is
less than 1 percent at the end of the Association's most
recent calendar quarter--
``(A) and the Association has already submitted a plan to
the Secretary pursuant to paragraph (3), the Association
shall forthwith proceed with diligence to implement the most
recently proposed plan with such modifications as the
Secretary determines are necessary to cause within 60 months
the capital ratio to equal or exceed 2 percent; or
``(B) and the Association has not submitted a plan to the
Secretary pursuant to paragraph (3), the Association shall--
``(i) within 14 days of such occurrence submit a plan to
the Secretary which it believes is adequate to cause within
60 months the capital ratio to equal or exceed 2 percent; and
``(ii) forthwith proceed with diligence to implement such
plan with such modifications as the Secretary determines are
necessary to cause within 60 months the capital ratio to
equal or exceed 2 percent;
the Secretary shall immediately submit the plan to be
implemented to the Chairman and ranking member of the Senate
Committee on Labor and Human Resources, to the Chairman and
ranking member of the House Committee on Education and Labor,
and to the Secretary of Education.
``(7) Additional reports to committees.--The Association
shall submit a copy of its plan, modifications proposed to
the Secretary, and proposed modifications received from the
Secretary to the Congressional Budget Office and General
Accounting Office upon their submission to the Secretary or
receipt from the Secretary. Notwithstanding any other
provision of law, the Congressional Budget Office and General
Accounting Office shall maintain the confidentiality of
information received pursuant to the previous sentence. In
the event that the Secretary does not approve a plan as
provided in paragraph (4), or in the event that a plan is
modified by the Secretary pursuant to paragraph (6), the
Congressional Budget Office and General Accounting Office
shall each submit a report within 30 days of the Secretary's
submission to the Chairmen and ranking members as required in
paragraphs (4) and (6) to such Chairmen and ranking members--
``(A) analyzing the financial condition of the Association;
``(B) analyzing the plan and reasons for its disapproval
contained in the Secretary's submission made pursuant to
paragraph (4), or the plan proposed by the Association and
the modifications made by the Secretary pursuant to paragraph
(6);
``(C) analyzing the impact of the plan and reasons for its
disapproval contained in the Secretary's submission made
pursuant to paragraph (4), or the impact of the plan proposed
by the Association and the modifications made by the
Secretary pursuant to paragraph (6), and analyzing the impact
of the recommendations made pursuant to subparagraph (D) of
this paragraph, on--
``(i) the ability of the Association to fulfill its purpose
and authorized activities as provided in this section, and
``(ii) the operation of the student loan programs; and
``(D) recommending steps which the Association should take
to increase its capital ratio without impairing its ability
to perform its purpose and authorized activities as provided
in this section.
``(8) Review by secretary of education.--The Secretary of
Education shall review the Secretary's submission required
pursuant to paragraph (4) or (6) and shall submit a report
within 30 days to the Chairman and ranking member of the
Senate Committee on Labor and Human Resources and to the
Chairman and ranking member of the House Committee on
Education and Labor--
``(A) describing any administrative or legislative
provisions governing the student loan programs which
contributed to the decline in the Association's capital
ratio; and
``(B) recommending administrative and legislative changes
in the student loan programs to maintain the orderly
operation of such programs and to enable the Association to
fulfill its purpose and authorized activities consistent with
the capital ratio specified in paragraph (3).
``(9) Safe harbor.--The Association shall be deemed in
compliance with the capital ratios described in paragraphs
(3) and (5) if--
``(A) the Association is rated in 1 of the 2 highest full
rating categories (such categories to be determined without
regard to designations within categories) by 2 nationally
recognized statistical rating organizations determined
without regard to the Association's status as a federally
chartered corporation; or
``(B) the Association is rated in 1 of the 2 highest full
rating categories (such cat-
[[Page 467]]
egories to be determined without regard to designations
within categories) by 1 nationally recognized statistical
rating organization determined without regard to the
Association's status as a federally chartered corporation and
no other such rating organization is willing to provide a
rating without regard to the Association status as a
federally chartered corporation.
``(10) Treatment of confidential information.--
Notwithstanding any other provision of law, the Secretary,
the Secretary of Education, the Congressional Budget Office,
and the General Accounting Office shall not disclose any
information treated as confidential by the Association and
obtained pursuant to this subsection. Nothing in this
paragraph shall authorize the Secretary, the Secretary of
Education, the Congressional Budget Office, and the General
Accounting Office to withhold information from Congress, or
prevent the Secretary of Education, the Congressional Budget
Office, and the General Accounting Office from complying with
a request for information from any other Federal department
or agency requesting the information for purposes within the
scope of its jurisdiction, or complying with an order of a
court of the United States in an action brought by the United
States. For purposes of section 522 of title 5, United States
Code, this paragraph shall be considered a statute described
in subsection (b)(3) of such section 552.
``(11) Definitions.--As used in this subsection:
``(A) The term `nationally recognized statistical rating
organization' means any entity recognized as such by the
Securities and Exchange Commission.
``(B) The term `Secretary' means the Secretary of the
Treasury.
``(C) The term `capital ratio' means the ratio of total
stockholders' equity, as shown on the Association's most
recent quarterly consolidated balance sheet prepared in the
ordinary course of its business, to the sum of--
``(i) the total assets of the Association, as shown on the
balance sheet prepared in the ordinary course of its
business; and
``(ii) 50 percent of the credit equivalent amount of the
following off-balance sheet items of the Association as of
the date of such balance sheet--
``(I) all financial standby letters of credit and other
irrevocable guarantees of the repayment of financial
obligations of others; and
``(II) all interest rate contracts and exchange rate
contracts, including interest exchange agreements, floor,
cap, and collar agreements and similar arrangements.
For purposes of this subparagraph, the calculation of the
credit equivalent amount of the items set forth in clause
(ii) of this subparagraph, the netting of such items and
eliminations for the purpose of avoidance of double-counting
of such items shall be made in accordance with the measures
for computing credit conversion factors for off-balance sheet
items for capital maintenance purposes established for
commercial banks from time to time by the Federal Reserve
Board, but without regard to any riskweighing provisions in
such measures.''.
(b) Enhanced Corporate Governance.--
(1) Section 439(f) of the Higher Education Act of 1965 is
amended to read as follows:
``(f) Stock of the Association.--
``(1) Voting common stock.--The Association shall have
voting common stock having such par value as may be fixed by
the Board from time to time. Each share of voting common
stock shall be entitled to 1 vote with rights of cumulative
voting at all elections of directors.
``(2) Number of shares; transferability.--The maximum
number of shares of voting common stock that the Association
may issue and have outstanding at any one time shall be fixed
by the Board from time to time. Any voting common stock issue
shall be fully transferable, except that, as to the
Association, it shall be transferred only on the books of the
Association.
``(3) Dividends.--To the extent that net income is earned
and realized, subject to subsection (g)(2), dividends may be
declared on voting common stock by the Board. Such dividends
as may be declared by the Board shall be paid to the holders
of outstanding shares of voting common stock, except that no
such dividends shall be payable with respect to any share
which has been called for redemption past the effective date
of such call.
``(4) Single class of voting common stock.--As of the
effective date of the Student Loan Marketing Association
Financial Safety and Soundness Act of 1991, all of the
previously authorized shares of voting common stock and
nonvoting common stock of the Association shall be converted
to shares of a single class of voting common stock on a
share-for-share basis, without any further action on the part
of the Association or any holder. Each outstanding
certificate for voting or nonvoting common stock shall
evidence ownership of the same number of shares of voting
stock into which it is converted. All preexisting rights and
obligations with respect to any class of common stock of the
Association shall be deemed to be rights and obligations with
respect to such converted shares.''.
(2) Section 439(c) of the Higher Education Act of 1965 is
amended to read as follows:
``(c) Board of Directors.--
``(1) Composition of board; chairman.--The Association
shall have a Board of Directors which shall consist of 21
members, 7 of whom shall be appointed by the President of the
United States and shall be representative of the general
public. The remaining 14 directors shall be elected by the
common stockholders of the Association entitled to vote
pursuant to subsection (f). Commencing with the annual
shareholders meeting to be held in 1992--
``(A) 7 of the elected directors shall be affiliated with
an eligible institution, and
``(B) 7 of the elected directors shall be affiliated with
an eligible lender.
The President shall designate 1 of the directors to serve as
Chairman.
``(2) Terms of appointed and elected members.--The
directors appointed by the President shall serve at the
pleasure of the President and until their successors have
been appointed and have qualified. The remaining directors
shall each be elected for a term ending on the date of the
next annual meeting of the common stockholders of the
Association, and shall serve until their successors have been
elected and have qualified. Any appointive seat on the Board
which becomes vacant shall be filled by appointment of the
President. Any elective seat on the Board which becomes
vacant after the annual election of the directors shall be
filled by the Board, but only for the unexpired portion of
the term.
``(3) Affiliated members.--For the purpose of this
subsection, the references to a director `affiliated with the
eligible institution' or a director `affiliated with an
eligible lender' means an individual who is, or within 5
years of election to the Board has been, an employee,
officer, director, or similar official of--
``(A) an eligible institution or an eligible lender;
``(B) an association whose members consist primarily of
eligible institutions or eligible lenders; or
``(C) a State agency, authority, instrumentality,
commission, or similar institution, the primary purpose of
which relates to educational matters or banking matters.
``(4) Meetings and functions of the board.--The Board of
Directors shall meet at the call of its Chairman, but at
least semiannually. The Board shall determine the general
policies which shall govern the operations of the
Association. The Chairman of the Board shall, with the
approval of the Board, select, appoint, and compensate
qualified persons to fill the offices as may be provided for
in the bylaws, with such functions, powers, and duties as may
be prescribed by the bylaws or by the Board of Directors, and
such person shall be the officers of the Association and
shall discharge all such functions, powers, and duties.''.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. AMENDMENTS TO PART C OF TITLE IV.
(a) Program Title.--
(1) Amendment.--The heading of part C of title IV of the
Act is amended to read as follows:
``Part C--Federal Work-Study Programs''.
(2) Conforming amendment.--The heading of section 443 is
amended by inserting ``federal'' before ``work-study''.
(b) Authorization of Appropriations.--Section 441(b) of the
Act is amended to read as follows:
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this part,
$900,000,000 for fiscal year 1993 and such sums as may be
necessary for each of the 4 succeeding fiscal years.''.
(c) Definition of Community Service.--Section 441 of the
Act is amended by adding at the end the following new
subsection:
``(c) Community Services.--For purposes of this part, the
term `community services' means services which are identified
by an institution of higher education, through formal or
informal consultation with local nonprofit, governmental, and
community-based organizations, as designed to improve the
quality of life for community residents, particularly low-
income individuals, or to solve particular problems related
to their needs, including (but not limited to) such fields as
health care, child care, literacy training, education
(including tutorial services), welfare, social services,
transportation, housing and neighborhood improvement, public
safety, crime prevention and control, recreation, rural
development, and community improvement, and includes support
services to students with disabilities and activities in
which a student serves as a mentor for such purposes as--
``(1) tutoring;
``(2) supporting educational and recreational activities;
and
``(3) counseling, including career counseling.''.
(d) Consequences of Failure To Award.--Section 442(e) of
the Act is amended to read as follows:
``(e) Reallocation of Excess Allocations.--If an
institution returns to the Secretary any portion of the sums
allocated to such institution under this section for any
fiscal year, the Secretary shall reallot 25 percent of such
excess to eligible institutions to carry out community
service work-study programs, which may include programs under
section 1131.''.
(e) Use for Community Service.--Section 447(b)(2)(A) of the
Act is amended to read as follows:
``(A) in fiscal year 1994 and succeeding fiscal years, an
institution shall be encouraged to use at least 10 percent of
the total amount of funds granted to such institution under
this section in any fiscal year to compensate students
employed in community service work-study programs;''.
[[Page 468]]
(f) Overaward Income Limit.--Section 443(b)(4) of the Act
is amended to read as follows:
``(4) provide that for a student employed in a work-study
program under this part, at the time income derived from any
need-based employment is in excess of the determination of
the amount of such student's need by more than $300,
continued employment shall not be subsidized with funds
appropriated under this part;''.
(g) Allocation.--Section 443(b)(3) of the Act is amended to
read as follows:
``(3) provide that in the selection of students for
employment under such work-study program, only students, who
demonstrate financial need in accordance with part F of this
title, and who meet the requirements of section 484 will be
assisted, and provide that, if the institution's grant under
this part is directly or indirectly based in part on the
financial need demonstrated by students who are (A) attending
the institution less than full time, (B) age 24 or older, (C)
single parents, or (D) independent students, a reasonable
proportion of the institution's grant shall be made available
to such students;''.
(h) Federal Share.--Section 443(b)(5) of the Act is
amended--
(1) by striking ``; and'' at the end of subparagraph (A)
and inserting a period;
(2) by striking subparagraph (B); and
(3) by striking ``except that--'' and all that follows
through ``the Federal share may'' and inserting ``except that
the Federal share may''.
(i) Study Abroad.--Section 443 of the Act is amended by
adding at the end thereof the following new subsection:
``(d) Eligibility for Study Abroad.--The agreements under
this section shall allow an institution of higher education
to devise suitable work opportunities for students studying
abroad in a program of study abroad approved for credit by
the institution, including work for foreign colleges,
universities, and nonprofit or service organizations and
shall permit the establishment of internship programs
involving work for foreign or multinational organizations
that are relevant to the student's course of study, including
compensation for eligible students from funds under this
part.''.
(j) Individuals With Disabilities.--Section 443(b) of the
Act is amended--
(1) by redesignating paragraph (9) as paragraph (11);
(2) by striking ``and'' at the end of paragraph (8); and
(3) by inserting after paragraph (8) the following new
paragraphs:
``(9) provide assurances that employment made available
from funds under this part may be used to support programs
for supportive services to students with disabilities;
``(10) provide assurances that the institution will inform
all eligible students of the opportunity to perform community
service work-study, and will consult with local nonprofit,
governmental, and community-based organizations to identify
such opportunities; and''.
(k) Carry-Back Authority.--Section 445(b) of the Act is
amended--
(1) by inserting ``(1)'' after the subsection heading; and
(2) by adding at the end the following new paragraph:
``(2) An eligible institution may make payments to students
of wages earned after the end of the academic year, but prior
to the beginning of the succeeding fiscal year, from such
succeeding fiscal year's appropriations.''.
(l) Job Location and Development.--Section 446 of the Act
is amended to read as follows:
``job location and development programs
``Sec. 446. (a) Agreements Required.--(1) The Secretary is
authorized to enter into agreements with eligible
institutions under which such institution may use not more
than 10 percent or $50,000 of its allotment under section
442, whichever is less, to establish or expand a program
under which such institution, separately or in combination
with other eligible institutions, locates and develops jobs,
including community service jobs, for currently enrolled
students.
``(2) Jobs located and developed under this section shall
be jobs that are suitable to the scheduling and other needs
of such students and that, to the maximum extent practicable,
complement and reinforce the educational programs or
vocational goals of such students.
``(b) Contents of Agreements.--Agreements under subsection
(a) shall--
``(1) provide that the Federal share of the cost of any
program under this section will not exceed 80 percent of such
cost;
``(2) provide satisfactory assurance that funds available
under this section will not be used to locate or develop jobs
at an eligible institution;
``(3) provide satisfactory assurance that funds available
under this section will not be used for the location or
development of jobs for students to obtain upon graduation,
but rather for the location and development of jobs available
to students during and between periods of attendance at such
institution;
``(4) provide satisfactory assurance that the location or
development of jobs pursuant to programs assisted under this
section will not result in the displacement of employed
workers or impair existing contracts for services;
``(5) provide satisfactory assurance that Federal funds
used for the purpose of this section can realistically be
expected to help generate student wages exceeding, in the
aggregate, the amount of such funds, and that if such funds
are used to contract with another organization, appropriate
performance standards are part of such contract; and
``(6) provide that the institution will submit to the
Secretary an annual report on the uses made of funds provided
under this section and an evaluation of the effectiveness of
such program in benefiting the students of such
institution.''.
(m) Work Colleges.--Section 447 of the Act is amended to
read as follows:
``work colleges
``Sec. 447. (a) Purpose.--The purpose of this section is to
recognize, encourage, and promote the use of comprehensive
work-learning programs as a valuable educational approach
when it is an integral part of the institution's educational
program and a part of a financial plan which decreases
reliance on grants and loans.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$10,000,000 for fiscal year 1993 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
``(c) Match Required.--Funds shall be allocated to
qualifying institutions in lieu of allocations pursuant to
section 442 upon application, for eligible students as
defined in section 484. An institution receiving an
allocation under this section shall expend, from non-Federal
sources, an amount for purposes of the program under this
section equal to the amount of that allocation.
``(d) Activities Authorized.--From the sums appropriated
pursuant to subsection (b), eligible institutions may,
following approval of an application under subsection (g) by
the Secretary--
``(1) support the educational costs of qualified students
through self-help payments or credits provided under the
work-learning program of the institution within the limits of
part F of this title;
``(2) promote the work-learning-service experience as a
tool of postsecondary education, financial self-help and
community service-learning opportunities; and
``(3) be used for the administration, development, and
assessment of comprehensive college work-learning programs,
including community based work-learning that expand
opportunities for community service and career-related work;
and the development of programs that develop sound
citizenship and personal values, encourage student
persistence, and make optimum use of college work-study
dollars in title IV aid in education and student development.
``(e) Flexible Use of Funds.--Funds allocated to the
institution under subpart 2 of part A, part C, and part E of
this title may be transferred for use under this section to
provide flexibility in strengthening the self-help-through-
work element in financial aid packaging.
``(f) Eligible Institutions.--Postsecondary institutions
eligible to participate in this section--
``(1) shall be public or private nonprofit institutions
with stated commitments to service;
``(2) shall have a comprehensive work-learning-service
program, for at least 2 years;
``(3) shall require service by all resident students
through a comprehensive work-learning program as an integral
part of the institution's educational program, and the
provision of services and as part of the institution's
educational philosophy; and
``(4) shall provide through the institutional work program
an opportunity for the students to contribute to the overall
educational program and to the welfare of the community as a
whole.
``(g) Application.--Each eligible institution may submit an
application for funds authorized by subsection (b) at such
time and in such manner as the Secretary, by regulation, may
reasonably require.
``(h) Definitions.--For purposes of this section, the term
`comprehensive student work-learning program' means a student
work/service program that is an integral and stated part of
the institution's educational philosophy and program;
requires participation of all resident students for
enrollment, participation, and graduation; includes learning
objectives, evaluation and a record of work performance as
part of the student's college record; provides programmatic
leadership by college personnel at levels comparable to
traditional academic programs; recognizes the educational
role of work-learning supervisors; and includes consequences
for nonperformance or failure in the work-learning program
similar to the consequences for failure in the regular
academic program.''.
PART D--FEDERAL DIRECT LOANS
SEC. 451. ESTABLISHMENT OF FEDERAL DIRECT LOAN PROGRAM.
Part D of title IV of the Act is amended to read as
follows:
``PART D--FEDERAL DIRECT LOAN DEMONSTRATION PROGRAM
``SEC. 451. PROGRAM AND PAYMENT AUTHORITY.
``(a) Program Authority.--The Secretary shall, in
accordance with the provisions of this part, carry out a loan
demonstration program for qualified students and parents at
selected institutions of higher education to enable the
students to pursue their courses of study at such
institutions during the period beginning on July 1, 1994 and
ending on June 30, 1998.
``(b) Payment Authority.--
``(1) General authority.--The Secretary shall, from funds
made available under sec-
[[Page 469]]
tion 459, make payments under this part for any fiscal year
to institutions of higher education having an agreement under
section 454, on the basis of the estimated needs of students
at each institution and parents for student or parent loans
taking into consideration the demand and eligibility of such
students and parents for loans under this part.
``(2) Entitlement provision.--An institution of higher
education which has an agreement with the Secretary under
section 454 shall be deemed to have a contractual right
against the United States to receive payments according to
that agreement.
``SEC. 452. PAYMENT RULES.
``(a) In General.--The Secretary shall make payments
required by section 451 in such installments as the Secretary
determines--
``(1) reflect accurately the disbursement of funds for
student and parent loans by the institution of higher
education, and
``(2) will best carry out the objectives of this part.
``(b) Initial Payments.--The initial payments for any
academic year required by section 451 shall be made available
to each institution of higher education not later than 10
days prior to the beginning of the academic year at such
institution.
``SEC. 453. SELECTION BY THE SECRETARY.
``(a) Entry Requirement.--The Secretary shall enter into
agreements with institutions of higher education, at which
the total loan volume under the Federal Stafford Loan
program, the Federal Supplemental Loans for Students program,
and the Federal Plus loan program was $500,000,000 in the
most recent year for which data is available, to participate
in the loan demonstration program to make loans for the
period beginning with the academic year beginning on July 1,
1994, and ending with loans made before June 30, 1998. Such
agreements shall be concluded not later than January 1, 1994.
``(b) Selection Criteria.--The Secretary shall enter into
agreements with institutions of higher education which
represent a cross-section of all institutions of higher
education participating in part B of this title in terms of
control of the institution, length of academic program,
highest degree offered, size of student enrollment,
percentage of students borrowing under part B, geographic
location, annual loan volume, default experience and
composition of the student body.
``(c) Preference for Applying Institutions.--In
constituting the cross-section of institutions of higher
education required by the previous subsection, the Secretary
shall first enter into agreements, to the maximum extent
possible consistent with the requirements of constituting the
cross-section, with institutions of higher education which
apply to participate in the loan demonstration program.
Institutions of higher education desiring to participate in
the demonstration shall submit an application containing such
information as the Secretary may by regulation prescribe.
``(d) Designation of Additional Institutions.--If an
insufficient number of institutions of higher education apply
to satisfy the conditions provided in subsections (a) and (b)
of this section, the Secretary shall designate additional
institutions of higher education from among those eligible to
participate in part B to participate in the loan
demonstration program in order to satisfy the conditions
provided in subsections (a) and (b) of this section. An
institution of higher education designated by the Secretary
pursuant to this subsection may decline to participate in the
loan demonstration program for good cause pursuant to
regulations established by the Secretary.
``(e) Limitation.--The Secretary shall assure that the
annual loan volume under the Federal Stafford Loan program,
the Federal Supplemental Loans for Students program, and the
Federal Plus loan program at the institutions of higher
education with which the Secretary enters into agreements
under this part represents, in the most recent fiscal year
for which data are available, not more than 15 percent of the
loan guarantees under these programs of any guaranty agency
and the Secretary shall determine that such guaranty agency
will remain financially sound.
``SEC. 454. AGREEMENT REQUIRED.
``An agreement with any institution of higher education for
participation in the loan demonstration program shall--
``(1) provide for the establishment and maintenance of a
loan demonstration program at the institution of higher
education under which--
``(A) the institution of higher education will identify
eligible students at such institution, in accordance with
section 484;
``(B) the institution of higher education will estimate the
need of each such student as required by part F;
``(C) the institution of higher education will originate
loans to such eligible students and eligible parents in
accordance with this part, and will not charge any
administrative fees to such students or parents for such
origination activities;
``(D) the institution of higher education will provide
timely information concerning the status of student and
parent borrowers to the contractor or contractors responsible
for loan collection pursuant to section 457; and
``(E) the institution of higher education will participate
in the loan demonstration program for its duration, subject
to procedures for withdrawal established by section 455;
``(2) provide assurances that the institution of higher
education will comply with the provisions of section 463A,
relating to student loan information, with respect to loans
made under this part;
``(3) provide that the note or evidence of obligation on
the loan shall be the property of the Secretary and that the
institution of higher education will act as the agent of the
Secretary for the purpose of making loans under the loan
demonstration program;
``(4) provide that the institution of higher education will
accept responsibility and liability stemming from its failure
to perform its functions pursuant to the agreement;
``(5) provide that students at the institution of higher
education and their parents will not be eligible to
participate in the Federal Stafford Loan program, the Federal
Supplemental Loans to Students program, or the Federal Plus
loan program for the period during which such institution
participates in the loan demonstration program;
``(6) in the case of 20 percent of the institutions
selected by the Secretary for operations under this part,
include such terms and conditions as the Secretary may
require by regulation for testing income contingent repayment
methods, which shall include--
``(A) requiring such institutions to offer the option of
income contingent repayment, based on an annual review of the
borrowers Federal income tax return, to any student who
applies for a loan under this part;
``(B) the additional or different terms and conditions to
be included in the notes or other agreements entered into by
the borrower, as required by such regulations, including
provisions with respect to the disclosure by the borrower of
subsequent income;
``(C) providing for the discharge of loans after not more
than 25 years of income contingent repayment; and
``(D) such data and reporting requirements and such other
provisions as the Secretary considers necessary to carry out
the purposes of section 458(d)(2) and to the protection of
the Federal fiscal interest; and
``(7) include such other provisions as may be necessary to
protect the financial interest of the United States and to
promote the purposes of this part.
``SEC. 455. WITHDRAWAL AND TERMINATION PROCEDURES.
``The Secretary shall establish by regulation procedures
which enable institutions of higher education who have made
agreements with the Secretary pursuant to section 454 to
withdraw or to be terminated from the loan demonstration
program.
``SEC. 456. TERMS AND CONDITIONS.
``Unless otherwise specified in this part, the loans made
under this part shall have the same terms, conditions, and
benefits as loans made under sections 428, 428A, and 428B of
this title. Any loan made under this part shall be eligible
for consolidation under section 428C of part B of this title.
``SEC. 457. LOAN COLLECTION FUNCTIONS UNDER COMPETITIVE
PROCUREMENT CONTRACTS.
``(a) In General.--The Secretary shall provide, through
contracts awarded on a competitive basis, for--
``(1) the collection of principal and interest on loans
made under this part by no less than 5 contracts, at least
one of which shall be for serving loans that are subject to
income contingent repayment;
``(2) the collection of defaulted loans made under this
part;
``(3) the establishment and operation of a central data
system for the maintenance of records on all loans made under
this part;
``(4) programs for default prevention; and
``(5) such other programs as the Secretary determines are
necessary to assure the success of the loan demonstration
program.
``(b) Servicing for Income Contingent Loans.--The Secretary
shall, through contract, ensure the availability of servicing
of loans made pursuant to section 454(6) at a cost comparable
to that available for loans under part B of this title (that
are not subject to income contingent repayment).
``(c) Information on Income Contingent Loans.--The
Secretary shall acquire such information as is necessary
regarding the adjusted gross income of borrowers (under this
part and under part B) of loans that are subject to income
contingent repayment for the purpose of determining the
annual repayment obligations of such borrowers. The Secretary
shall, not less often than once per year, provide to the
servicer, lender, or holder of a loan the Secretary's
determination of the borrower's repayment obligation on that
loan for such year.
``SEC. 458. REPORTS.
``(a) Annual Reports.--The Secretary shall submit to the
Congress not later than July 1, 1993, and each July 1 for the
5 succeeding years an annual report describing the progress
and status of the loan demonstration program.
``(b) Interim Final Report.--The Comptroller General shall
submit to the Congress not later than July 1, 1997, an
interim final report evaluating the experience of the
Department of Education, the participating institutions of
higher education, students, and parents with respect to the
loan demonstration program. The report shall include (but not
be limited to)--
``(1) the administrative costs per loan incurred by
participating institutions of higher education in
administering the loan demonstration program;
``(2) the administrative costs per loan incurred by the
Department of Education and its contractors in carrying out
its responsibilities, including the costs of origination,
data systems, servicing, and collection;
[[Page 470]]
``(3) an evaluation of the effectiveness of the loan
demonstration program in providing services to students,
including loan application, loan origination, student
financial aid packaging, tracking of student status,
responsiveness to student inquiries and processing of
deferments, forbearances, and repayments;
``(4) the frequency and cost of borrower delinquency and
default under the loan demonstration program and losses
incurred by institutions of higher education and servicers,
including losses caused by improper origination or servicing
of loans;
``(5) the timeliness of capital availability to
institutions of higher education and of loans to students and
the cost of loan capital;
``(6) a comparison of the experience of institutions of
higher education, students, and parents participating in loan
demonstration program with the experience of institutions and
students in a control group with respect to the subjects
indicated in paragraphs (1) through (5) of this subsection;
``(7) a comparison of the cost of loan capital for loans
for the loan demonstration program with the cost of loan
capital for the comparable programs in part B of this title;
and
``(8) recommendations for modifications, continuation,
suspension or termination of the loan demonstration program.
``(c) Final Report.--The Comptroller General shall submit
to the Congress not later than May 1, 1998, a final report
evaluating the experience of the Department of Education, the
participating institutions of higher education, and students
with respect to the loan demonstration program. The report
shall include (but not be limited to) the same matters
provided for in subsection (b) of this section.
``(d) Control Group.--
``(1) Regular repayment.--to assist the Comptroller General
in preparing the reports required by subsections (b)(6) and
(c) of this section, the Secretary shall select a control
group of institutions of higher education, at which the total
loan volume under the Federal Stafford Loan program, the
Federal Supplemental Loans for Students program, and the
Federal Plus loan program was $500,000,000 in the most recent
year for which data is available, which represent a cross-
section of all institutions of higher education participating
in part B of this title and which is comparable to the cross-
section of institutions of higher education selected for
participation in the loan demonstration program pursuant to
section 453(b).
``(2) Income contingent repayment.--Within the control
group selected under paragraph (1), the Secretary shall
identify a group of institutions to serve as a control group
for comparison with the institutions offering income
contingent loans under this part pursuant to section 454(6).
The institutions selected for the control group under this
paragraph shall select a reasonable cross section of the
institutions selected under paragraph (1). The Secretary
shall publish an identification of the institutions that are
so selected. Any eligible lender of a loan to a student for
attendance at any such institution shall, in accordance with
regulations prescribed by the Secretary, offer such students
the option of repaying such loans on an income contingent
basis consistent with such regulations.
``(3) Income contingent terms and conditions.--The
Secretary shall, by regulation, establish the terms and
conditions for loans that are subject to paragraph (2) of
this subsection. Such terms and conditions shall, to the
extent practicable, be the same as the terms and conditions
of loans made pursuant to section 454(6). The Secretary is
authorized to enter into such agreements (and amendments to
agreements) under part B of this title as may be necessary to
carry out paragraph (2) and this paragraph.
``(e) Treatment of Costs.--In reporting with respect to
costs in the reports required by subsections (b) and (c) of
this section, the Comptroller General shall report separately
the nonrecurrent costs such as start-up costs associated with
the loan demonstration program, the administrative costs
incurred by institutions of higher education in providing
information to enable the Comptroller General to prepare the
reports required by subsections (b) and (c) of this section
and the normal costs of operating the loan demonstration
program.
``SEC. 459. SCHEDULE OF REGULATORY ACTIVITIES BY THE
SECRETARY.
``(a) Proposed Regulations.--The Secretary shall publish in
the Federal Register not later than April 1, 1993, all
proposed regulations for carrying out the program established
by this part, including (but not limited to) regulations with
respect to--
``(1) payments to institutions of higher education;
``(2) the selection of institutions of higher education to
participate in the loan demonstration program;
``(3) application by institutions of higher education to
participate in the loan demonstration program;
``(4) agreements between the Secretary and institutions of
higher education participating in the loan demonstration
program;
``(5) procedures with respect to the withdrawal and
termination of institutions of higher education from the loan
demonstration program; and
``(6) procedures by which institutions designated by the
Secretary pursuant to section 453(d) may decline to
participate in the loan demonstration program.
``(b) Final Regulations.--The Secretary shall publish in
the Federal Register not later than July 1, 1993, all final
regulations for carrying out the program established by this
part, including (but not limited to) regulations with respect
to the same matters provided for in subsection (a) of this
section.
``(c) Closing Date for Applications From Institutions.--The
Secretary shall establish October 1, 1993, as the closing
date for receiving applications from institutions of higher
education desiring to participate in the loan demonstration
program pursuant to section 453(c).
``(d) Publication of List of Participating Institutions and
Control Group.--Not later than January 1, 1994, the Secretary
shall publish in the Federal Register a list of the
institutions of higher education selected to participate in
the loan demonstration program pursuant to section 453 and a
list of the institutions of higher education in the control
group required by section 457.
``(e) Procurement Contracts.--The Secretary shall award
contracts pursuant to section 457 not later than February 1,
1994.
``SEC. 459A. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as may
be necessary for fiscal year 1993 and the 5 succeeding fiscal
years for administrative expenses necessary for carrying out
this part.''.
SEC. 452. ADMINISTRATIVE EXPENSES.
Part G of title IV of the Act is amended by adding at the
end the following new section:
``authorization of appropriations for administrative expenses
``Sec. 492. There are authorized to be appropriated such
sums as may be necessary for fiscal year 1993 and for each
succeeding fiscal year thereafter for administrative expenses
necessary for carrying out this title, including expenses for
staff personnel, program reviews, and compliance
activities.''.
PART E--FEDERAL PERKINS LOANS
SEC. 461. AMENDMENTS TO PART E OF TITLE IV.
(a) Program Title.--
(1) Heading.--The heading of part E of title IV is amended
to read as follows:
``Part E--Federal Perkins Loans''.
(2) Name of loans.--Section 461(a) of the Act is amended by
striking ``as `Perkins Loans' '' and inserting ``as `Federal
Perkins Loans' ''.
(b) Authorization of Appropriations.--Section 461(b) of the
Act is amended to read as follows:
``(b) Authorization of Appropriations.--(1) For the purpose
of enabling the Secretary to make contributions to student
loan funds established under this part, there are authorized
to be appropriated $300,000,000 for fiscal year 1993 and such
sums as may be necessary for each of the 4 succeeding fiscal
years.
``(2) In addition to the funds authorized under paragraph
(1), there are hereby authorized to be appropriated such sums
for fiscal year 1997 and each of the 5 succeeding fiscal
years as may be necessary to enable students who have
received loans for academic years ending prior to October 1,
1997, to continue or complete courses of study.''.
(c) Eligibility for Study Abroad.--Section 461(a) of the
Act is amended by inserting ``or while engaged in programs of
study abroad approved for credit by such institutions'' after
``in such institutions''.
(d) Institutional Allocation.--Section 462(a)(1)(A) of the
Act is amended by striking ``such institution received'' and
inserting ``allocated to such institution''.
(e) Default Reduction and Default Penalties.--Section
462(f) of the Act is amended to read as follows:
``(f) Default Reduction and Default Penalties.--(1) For any
fiscal year prior to fiscal year 1994, any institution which
has a default rate which equals or exceeds 7.5 percent but
does not exceed the maximum default rate applicable to the
award year under subsection (g), the institution's default
penalty is a percentage equal to the complement of such
default rate. For any institution which has a default rate
that does not exceed 7.5 percent, the institution's default
penalty is equal to one.
``(2) For fiscal year 1994 and any succeeding fiscal year,
any institution with a cohort default rate (as defined under
subsection (h)) which--
``(A) equals or exceeds 15 percent, shall establish a
default reduction plan pursuant to regulations issued by the
Secretary;
``(B) equals or exceeds 20 percent, but is less than 25
percent, shall have a default penalty of 0.9;
``(C) equals or exceeds 25 percent, but is less than 30
percent, shall have a default penalty of 0.7; and
``(D) equals or exceeds 30 percent shall have a default
penalty of zero.''.
(f) Applicable Maximum Default Rate.--Section 462(g) of the
Act is amended to read as follows:
``(g) Applicable Maximum Default Rate.--(1) For award years
1992 and 1993, the applicable maximum default rate is 15
percent.
``(2) For award year 1994 and subsequent years, the maximum
cohort default rate is 30 percent.''.
(g) Definitions of Default Rate and Cohort Default Rate.--
Section 462(h) of the Act is amended--
(1) by striking the title of the subsection and inserting
``Definitions of Default Rate and Cohort Default Rate.'';
(2) in paragraph (1), by striking ``For the purpose of this
section,'' and inserting ``For any award year prior to award
year 1994, for the purpose of this section,'';
(3) by redesignating paragraph (3) as paragraph (4); and
[[Page 471]]
(4) by inserting after paragraph (2) the following new
paragraph:
``(3) For award year 1994 and any succeeding year, the term
`cohort default rate' means, for any fiscal year in which 30
or more current and former students at the institution enter
repayment on loans under this part (received for attendance
at the institution), the percentage of those current and
former students who enter repayment on such loans (received
for attendance at that institution) in that fiscal year who
default before the end of the following fiscal year. In
determining the number of students who default before the end
of such fiscal year, the Secretary shall, in calculating the
cohort default rate, exclude any loans which, due to improper
servicing or collection, would result in an inaccurate or
incomplete calculation of the cohort default rate. For any
fiscal year in which less than 30 of the institution's
current and former students enter repayment, the term `cohort
default rate' means the percentage of such current and former
students who entered repayment on such loans in any of the
three most recent fiscal years and who default before the end
of the fiscal year immediately following the year in which
they entered repayment. A loan on which a payment is made by
the institution of higher education, its owner, agency,
contractor, employee, or any other entity or individual
affiliated with such institution, in order to avoid default
by the borrower, is considered as in default for the purposes
of this subsection. The Secretary shall prescribe regulations
designed to prevent an institution from evading the
application to that institution of a default rate
determination under this subsection through the use of such
measures as branching, consolidation, change of ownership or
control or other means as determined by the Secretary.''.
(h) Consequences of Failure To Award.--Section 462(j) of
the Act is amended--
(1) by inserting ``(1)'' after the subsection heading; and
(2) by adding at the end the following new paragraph:
``(2) If under paragraph (1) of this subsection an
institution returns more than 10 percent of its allocation,
the institution's allocation for the next fiscal year shall
be reduced by the amount returned. The Secretary may waive
this paragraph for a specific institution if the Secretary
finds that enforcing it is contrary to the interest of the
program.''.
(i) Campus Match.--Section 463(a)(2)(B) of the Act is
amended to read as follows:
``(B) a capital contribution--
``(i) by an institution that--
``(I) is granted permission by the Secretary to participate
in an Expanded Lending Option under the program, and
``(II) has a default rate which does not exceed 7.5
percent,
in an amount not less than the amount of the Federal capital
contributions described in subparagraph (A); or
``(ii) by any other institution, in an amount not less than
one-third of the amount of the Federal capital contributions
described in subparagraph (A);''.
(j) Credit Reporting Requirements.--Section 463(c) of the
Act is amended by adding at the end thereof the following new
paragraph:
``(4) Each institution of higher education, after
consultation with the Secretary, shall disclose to any credit
bureau organization with which the Secretary has an agreement
under paragraph (1)--
``(A) the date of each disbursement and the amount of any
loan made under this part to any borrower by such
institution; and
``(B) the type of information described in paragraphs (1),
(2), and (3) of section 430A(a), as it pertains to such
loan.''.
(k) Loan Limits.--Section 464(a)(2) of the Act is amended
to read as follows:
``(2) The aggregate of the loans for all years made by
institutions of higher education from loan funds established
pursuant to agreements under this part may not exceed--
``(A) for institutions that have an agreement with the
Secretary to participate in the Expanded Lending Option under
section 463(a)(2)(B)(i)--
``(i) $32,000 in the case of any graduate or professional
student (as defined by regulations of the Secretary, and
including any loans from such funds made to such person
before he became a graduate or professional student);
``(ii) $20,000 in the case of a student who has
successfully completed 2 years of a program of education
leading to a bachelor's degree but who has not completed the
work necessary for such a degree (determined under
regulations of the Secretary, and including any loans from
such funds made to such person before he became such a
student); and
``(iii) $8,000 in the case of any other student; or
``(B) for all other institutions--
``(i) $25,000 in the case of any graduate or professional
student (as defined by regulations of the Secretary, and
including any loans from such funds made to such person
before he became a graduate or professional student);
``(ii) $15,000 in the case of a student who has
successfully completed 2 years of a program of education
leading to a bachelor's degree, but who has not completed the
work necessary for such a degree (determined under
regulations of the Secretary, and including any loans from
such funds made to such person before he became such a
student); and
``(iii) $6,000 in the case of any other student.''.
(l) Loans to Nontraditional Students.--Section 464(b)(2) of
the Act is amended to read as follows:
``(2) If the institution's capital contribution under
section 462 is directly or indirectly based in part on the
financial need demonstrated by students who are (A) attending
the institution less than full time, (B) age 24 or older, (C)
single parents, or (D) independent students, a reasonable
proportion of the institution's loans shall be made available
to such students.''.
(m) Minimum Monthly Payments.--Section 464(c)(1)(C) of the
Act is amended to read as follows:
``(C)(i) for loans made before July 1, 1993, may provide,
at the option of the institution, in accordance with
regulations of the Secretary, that during the repayment
period of the loan, payments of principal and interest by the
borrower with respect to all outstanding loans made to the
student from a student loan fund assisted under this part
shall be at a rate equal to not less than $30 per month,
except that the institution may, subject to such regulations,
permit a borrower to pay less than $30 per month for a period
of not more than one year where necessary to avoid hardship
to the borrower, but without extending the 10-year maximum
repayment period provided for in subparagraph (A) of this
paragraph;
``(ii) for loans made on or after July 1, 1993, may
provide, at the option of the institution, in accordance with
regulations of the Secretary, that during the repayment
period of the loan, payments of principal and interest by the
borrower with respect to all outstanding loans made to the
student from a student loan fund assisted under this part
shall be at a rate equal to not less than $50 per month,
except that the institution may, subject to such regulations,
permit a borrower to pay less than $50 per month for a period
of not more than one year where necessary to avoid hardship
to the borrower, but without extending the 10-year maximum
repayment period provided for in subparagraph (A) of this
paragraph; and
``(iii) may provide that the total payments by a borrower
for a monthly or similar payment period with respect to the
aggregate of all loans held by the institution may, when the
amount of a monthly or other similar payment is not a
multiple of $5, be rounded to the next highest whole dollar
amount that is a multiple of $5;''.
(n) Overaward Tolerance.--Section 464(b) of the Act is
amended by adding at the end the following new paragraph:
``(3) Notwithstanding paragraph (1) of this subsection, if
the sum of a loan award for any student and the other
financial aid obtained subsequently by such student exceeds
the amount of assistance for which the student is eligible
under this title by $300 or more, the institution such
student is attending shall adjust the disbursement of such
loan accordingly.''.
(o) Elimination of Defense Infancy.--Section 464(c)(1)(E)
of the Act is amended by striking ``unless the borrower is a
minor and the note or other evidence of obligation executed
by him would not, under applicable law, create a binding
obligation,''.
(p) Deferment for Family Service Agency Employees.--
Subparagraph (A) of section 464(c)(2) of the Higher Education
Act of 1965 is amended--
(1) by striking ``or'' at the end of clause (viii);
(2) by striking the period at the end of clause (ix) and
inserting a semicolon and ``or''; and
(3) by inserting after clause (ix) the following new
clause:
``(x) is employed full-time by a public or private
nonprofit child or family service agency to provide, or
supervise the provision of, services to high-risk children
who are from low-income communities and the families of such
children.''.
(q) Repayment Period.--Section 464(c) of the Act is further
amended--
(1) in paragraph (2), by striking subparagraph (B) and
redesignating subparagraph (C) as subparagraph (B);
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) The repayment period for a loan made under this part
shall begin on the day immediately following the expiration
of the period, specified in paragraph (1)(A), after the
student ceases to carry the required academic workload,
unless the borrower requests and is granted a repayment
schedule that provides for repayment to commence at an
earlier point in time, and shall exclude any period of
authorized deferment, forbearance, or cancellation.''.
(r) Deferments for Study Abroad.--Section 464(c) of the Act
is amended by adding at the end thereof the following new
paragraph:
``(6) Requests for deferment of repayment of loans under
this part by students engaged in graduate or postgraduate
fellowship-supported study (such as pursuant to a Fulbright
grant) outside the United States may be approved until
completion of the period of the fellowship.''.
(s) Special Authority To Compromise Repayment.--Section 464
of the Act is amended by adding at the end the following new
subsection:
``(e) Special Repayment Rule Authority.--(1) Subject to
such restrictions as the Secretary may prescribe to protect
the interest of the United States, in order to encourage
repayment of loans made under this part
[[Page 472]]
which are in default, the Secretary may, in the agreement
entered into under this part, authorize an institution of
higher education to compromise on the repayment of such
defaulted loans in accordance with paragraph (2). The Federal
share of the compromise repayment shall bear the same
relation to the institution's share of such compromise
repayment as the Federal capital contribution to the
institution's loan fund under this part bears to the
institution's capital contribution to such fund.
``(2) No compromise repayment of a defaulted loan as
authorized by paragraph (1) may be made unless the student
borrower pays--
``(A) 90 percent of the loan under this part;
``(B) the interest due on such loan; and
``(C) any collection fees due on such loan;
in a lump sum payment.''.
(t) Cancellation for Service.--
(1) Amendment.--Section 465(a)(2) of the Act is amended--
(A) in subparagraph (A), by striking ``and such
determination shall not be made with respect to more than 50
percent of the total number of schools in the State receiving
assistance under such chapter 1'';
(B) by inserting before the semicolon at the end of
subparagraph (A) the following: ``, except that in the case
of a borrower qualifying for cancellation under this
subparagraph, cancellation shall be granted for one year
following any year in which the qualifying elementary or
secondary school loses its chapter 1 designation'';
(C) by striking subparagraph (C) and inserting the
following:
``(C) as a full-time teacher 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 676(b)(9) of the Individuals With Disabilities
Education Act;''.
(D) by striking ``or'' at the end of subparagraph (E);
(E) by striking the period at the end of subparagraph (F)
and inserting a semicolon; and
(F) by adding at the end thereof the following new
subparagraphs:
``(G) as a full-time nurse or medical technician providing
health care services; or
``(H) as a full-time employee of a public or private
nonprofit child or family service agency who is providing, or
supervising the provision of, services to high-risk children
who are from low-income communities and the families of such
children.''.
(2) Rate of cancellation.--Section 465(a)(3)(A)(i) of such
Act is amended by striking ``(A), (C), or (F)'' and inserting
``(A), (C), (F), (G), or (H)''.
(u) Excess Capital Rule.--Section 466(c) of the Act is
amended--
(1) by striking out ``Upon'' and inserting ``(1) Upon'';
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B); and
(3) by adding at the end thereof the following:
``(2) No finding, that the liquid assets of a student loan
fund established under this part exceed the amount required,
under paragraph (1) of this subsection may be made prior to a
date which is 2 years after the institution of higher
education received the funds from its allocation under
section 462 with respect to such funds.''.
(v) Recapture of Certain Loan Funds.--(1) Section 467 of
the Act is amended by adding at the end thereof the following
new subsection:
``(c) Perkins Loan Revolving Fund.--(1) There is
established by the Perkins Loan Re-
volving Fund which shall be available without fiscal year
limitation to the Secretary to make payments under this part,
in accordance with paragraph (2) of this subsection. There
shall be deposited in the Perkins Revolving Loan Fund--
``(A) all funds collected by the Secretary on any loan
referred, transferred, or assigned under paragraph (5)(A),
(5)(B)(i), or (6) of section 463(a);
``(B) all funds collected by the Secretary on any loan
referred under paragraph (5)(B)(ii) of section 463(a);
``(C) all funds paid to the Secretary under section
466(c)(1)(A);
``(D) all funds from a student loan fund under this part
received by the Secretary as the result of the closure of an
institution of higher education;
``(E) all funds received by the Secretary as a result of an
audit of a student loan fund established under this part; and
``(F) all funds which have been appropriated and which the
Secretary determines are not necessary for carrying out
section 465, relating to the cancellation of certain loans
under this part for qualifying service.
``(2) Notwithstanding any other provision of law, the
Secretary shall, from the Perkins Loan Revolving Fund
established under paragraph (1), pay allocations of
additional capital contributions to eligible institutions of
higher education in accordance with section 462, except that
funds described in subparagraph (B) of paragraph (1) shall be
repaid to the institution of higher education which referred
the loan, as specified in section 463(a)(5)(B)(ii). The
Secretary shall make the payments required by this paragraph
in a manner designed to maximize the availability of capital
loan funds under this part.''.
(2) The heading of section 467 of the Act is amended to
read as follows:
``collection of defaulted loans: perkins loan revolving fund''.
(w) Definitions; Limitations.--Part E of title IV is
further amended by adding at the end the following new
section:
``definitions
``Sec. 469. (a) Low-Income Communities.--For the purpose of
this part, the term `low-income communities' means
communities in which there is a high concentration of
children eligible to be counted under chapter 1 of title I of
the Elementary and Secondary Education Act of 1965.
``(b) High-Risk Children.--For the purposes of this part,
the term `high-risk children' means individuals under the age
of 21 who are low-income or at risk of abuse or neglect, have
been abused or neglected, have serious emotional, mental, or
behavioral disturbances, reside in placements outside their
homes, or are involved in the juvenile justice system.
``(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),
respectively, of the Individuals with Disabilities Education
Act, and the term `qualified professional provider of early
intervention services' has the meaning specified in section
672(2) of such Act.''.
PART F--NEED ANALYSIS
SEC. 471. REVISION OF PART F.
Part F of title IV of the Act is amended to read as
follows:
``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 subpart 4 of part A) is equal to--
``(1) the cost of attendance of such student, minus
``(2) the expected family contribution for such student,
minus
``(3) estimated financial assistance not received under
this title (as defined in section 480(j)).
``SEC. 472. COST OF ATTENDANCE.
``For the purpose of this title, the term `cost of
attendance' means--
``(1) tuition and fees normally assessed a student carrying
the same academic workload as determined by the institution,
and including costs for rental or purchase of any equipment,
materials, or supplies required of all students in the same
course of study;
``(2) an allowance for books, supplies, transportation, and
miscellaneous personal expenses for a student attending the
institution on at least a half-time basis, as determined by
the institution;
``(3) an allowance (as determined by the institution) for
room and board costs incurred by the student which--
``(A) shall be an allowance of not less than $1,500 for a
student without dependents residing at home with parents;
``(B) for students without dependents residing in
institutionally owned or operated housing, shall be a
standard allowance determined by the institution based on the
amount normally assessed most of its residents for room and
board; and
``(C) for all other students shall be an allowance based on
the expenses reasonably incurred by such students for room
and board, except that the amount may not be less than
$2,500;
``(4) for less than half-time students (as determined by
the institution) tuition and fees and an allowance for only
books, supplies, and transportation (as determined by the
institution) and dependent care expenses (in accordance with
paragraph (7));
``(5) for incarcerated students only tuition and fees and,
if required, books and supplies;
``(6) for a student enrolled in an academic program in a
program of study abroad approved for credit by the student's
home institution, reasonable costs associated with such study
(as determined by the institution);
``(7) for a student with one or more dependents, an
allowance based on the estimated expenses incurred for such
dependent care, based on the number and age of such
dependents. The period for which dependent care is required
includes, but is not limited to, class-time, study-time,
field work, internships, and commuting time;
``(8) for a student with a disability, an allowance (as
determined by the institution) for those expenses related to
his or her disability, including special services,
transportation, equipment, and supplies that are reasonably
incurred and not provided for by other assisting agencies;
``(9) for a student receiving all or part of his or her
instruction by means of telecommunications technology, no
distinction shall be made with respect to the mode of
instruction in determining costs, but this paragraph shall
not be construed to permit including the cost of rental or
purchase of equipment;
``(10) for a student engaged in a program of study by
correspondence, only tuition and fees and, if required, books
and supplies, travel, and room and board costs incurred
specifically in fulfilling a required period of residential
training; and
``(11) for a student placed in a work experience under a
cooperative education program, an allowance for reasonable
costs associated with such employment (as determined by the
institution).
``SEC. 473. FAMILY CONTRIBUTION.
``For the purpose of this title, except subpart 4 of part
A, the term `family contribu-
[[Page 473]]
tion' with respect to any student means the amount which the
student and his or her family may be reasonably expected to
contribute toward his or her postsecondary education for the
academic year for which the determination is made, as
determined in accordance with this part.
``SEC. 474. DATA ELEMENTS USED IN DETERMINING EXPECTED FAMILY
CONTRIBUTION.
``The following data elements are considered in determining
the expected family contribution:
``(1) the available income of (A) the student and his or
her spouse, or (B) the student and the student's parents, in
the case of a dependent student;
``(2) the number of dependents in the family of the
student;
``(3) the number of dependents in the family of the student
(except parents) who are enrolled or accepted for enrollment,
on at least a half-time basis, in a degree, certificate, or
other program leading to a recognized educational credential
at an institution of higher education that is an eligible
institution in accordance with the provisions of section 487
and for whom the family may reasonably be expected to
contribute to their postsecondary education;
``(4) the net assets of (A) the student and his or her
spouse, and (B) the student and the student's parents, in the
case of a dependent student;
``(5) the marital status of the student;
``(6) the age of the older parent, in the case of a
dependent student, and the student;
``(7) the number of dependent children other than the
student enrolled in a private elementary or secondary
institution and the unreimbursed tuition paid (A) in the case
of a dependent student, by the student's parents for such
dependent children, or (B) in the case of an independent
student with dependents, by the student or his or her spouse
for such dependent children who are so enrolled; and
``(8) the additional expenses incurred (A) in the case of a
dependent student, when both parents of the student are
employed or when the family is headed by a single parent who
is employed, or (B) in the case of an independent student,
when the student is married and his or her spouse is
employed, or when the employed student qualifies as a
surviving spouse or as a head of a household under section 2
of the Internal Revenue Code of 1986.
``SEC. 475. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
``(a) Computation of Expected Family Contribution.--For
each dependent student the expected family contribution is
equal to the sum of--
``(1) the parents' contribution from adjusted available
income (determined in accordance with subsection (b));
``(2) the student contribution from available income
(determined in accordance with subsection (g)); and
``(3) the student contribution from assets (determined in
accordance with subsection (h)).
``(b) Parents' Contribution From Adjusted Available
Income.--The parents' contribution from adjusted available
income is equal to the amount determined by--
``(1) computing adjusted available income by adding--
``(A) the parents' available income (determined in
accordance with subsection (c)); and
``(B) the parents' contribution from assets (determined in
accordance with subsection (d));
``(2) assessing such adjusted available income in
accordance with the assessment schedule set forth in
subsection (e); and
``(3) dividing the assessment resulting under paragraph (2)
by the number of the dependent children of the parent (or
parents) who are enrolled or accepted for enrollment, on at
least a half-time basis, in a degree, certificate, or other
program leading to a recognized educational credential at an
institution of higher education that is an eligible
institution in accordance with the provisions of section 487
during the award period for which assistance under this title
is requested.
``(c) Parents' Available Income.--
``(1) In general.--The parents' available income is
determined by deducting from total income (as defined in
section 480)--
``(A) Federal income taxes;
``(B) an allowance for State and other taxes, determined in
accordance with paragraph (2);
``(C) an allowance for social security taxes, determined in
accordance with paragraph (3);
``(D) an income protection allowance, determined in
accordance with paragraph (4);
``(E) an employment expense allowance, determined in
accordance with paragraph (5); and
``(F) an educational expense allowance, determined in
accordance with paragraph (6).
``(2) Allowance for state and other taxes.--The allowance
for State and other taxes is equal to an amount determined by
multiplying total income (as defined in section 480) by a
percentage determined according to the following table (or a
successor table prescribed by the Secretary under section
478):
``Percentages for Computation of State and Other Tax Allowance
------------------------------------------------------------------------
And parents' total
income is--
If parents' State or territory of residence -------------------------
is-- less than $15,000 or
$15,000 or more
------------------------------------------------------------------------
(1)then the percentage is--
-------------------------
Alaska, Puerto Rico, Wyoming.................. 3 2
American Samoa, Guam, Louisiana, Nevada,
Texas, Trust Territory, Virgin Islands....... 4 3
Florida, South Dakota, Tennessee, New Mexico.. 5 4
North Dakota, Washington...................... 6 5
Alabama, Arizona, Arkansas, Indiana,
Mississippi, Missouri, Montana, New
Hampshire, Oklahoma, West Virginia........... 7 6
Colorado, Connecticut, Georgia, Illinois,
Kansas, Kentucky............................. 8 7
California, Delaware, Idaho, Iowa, Nebraska,
North Carolina, Ohio, Pennsylvania, South
Carolina, Utah, Vermont, Virginia, Canada,
Mexico....................................... 9 8
Maine, New Jersey............................. 10 9
District of Columbia, Hawaii, Maryland,
Massachusetts, Oregon, Rhode Island.......... 11 10
Michigan, Minnesota........................... 12 11
Wisconsin..................................... 13 12
New York...................................... 14 13
Other......................................... 9 8
------------------------------------------------------------------------
``(3) Allowance for social security taxes.--The allowance
for social security taxes is equal to the amount earned by
each parent multiplied by the social security withholding
rate appropriate to the tax year of the earnings, up to the
maximum statutory social security tax withholding amount for
that same tax year.
``(4) Income protection allowance.--The income protection
allowance is determined by the following table (or a
successor table prescribed by the Secretary under section
478):
``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
Family Size Number in College
----------------------------------------------------------------------------------------------------------------
For each
(including student) 1 2 3 4 5 additional
subtract:
----------------------------------------------------------------------------------------------------------------
2 $10,270 $8,560
3 12,840 11,130 $9,420
4 15,790 14,080 12,370 $10,660
5 18,750 17,040 15,330 13,620 $11,910
6 21,830 20,120 18,410 16,700 14,990 $1,710
For each
additional
add: 2,570 2,570 2,570 2,570 2,570
----------------------------------------------------------------------------------------------------------------
``(5) Employment expense allowance.--The employment expense
allowance is determined as follows (or using a successor
provision prescribed by the Secretary under section 478):
``(A) If both parents were employed in the year for which
their income is reported and both have their incomes reported
in determining the expected family contribution, such
allowance is equal to the lesser of $2,600 or 35 percent of
the earned income of the student or spouse with the lesser
earned income.
``(B) If a parent qualifies as a surviving spouse or as a
head of household as defined in section 2 of the Internal
Revenue Code, such allowance is equal to the lesser of $2,600
or 35 percent of his or her earned income.
``(6) Educational expense allowance.--The educational
expense allowance is equal to the unreimbursed tuition and
fees paid by the student's parents for each dependent child,
other than the student, enrolled in an elementary or
secondary school, not to exceed for each such child the
national average per pupil cost as published by the Center
for Educational Statistics using the most recent available
data.
``(d) Parents' Contribution From Assets.--
``(1) In general.--The parents' contribution from assets is
equal to--
``(A) the parental net worth (determined in accordance with
paragraph (2)); minus
``(B) the asset protection allowance (determined in
accordance with paragraph (3)); minus
``(C) the educational savings protection allowance
(determined in accordance with paragraph (4)); multiplied by
``(D) the asset conversion rate (determined in accordance
with paragraph (5)), except that the result shall not be less
than zero.
``(2) Parental net worth.--The parental net worth is
calculated by adding--
``(A) the current balance of checking and savings accounts
and cash on hand;
``(B) the net value of investments and real estate,
excluding the net value of the principal place of residence;
and
``(C) the adjusted net worth of a business or farm,
computed on the basis of the net worth of such business or
farm (hereafter in this subsection referred to as `NW'),
determined in accordance with the following table (or a
successor table prescribed by the Secretary under section
478), except as provided under section 480(f):
``Adjusted Net Worth of a Business or Farm
------------------------------------------------------------------------
If the net worth of a business or farm is-- Then the adjusted net worth
is:
------------------------------------------------------------------------
Less than $1.............................. $0
$1-$75,000................................ 40 percent of NW
$75,001-$225,000.......................... $30,000 plus 50 percent of
NW over $75,000
$225,001-$370,000......................... $105,000 plus 60 percent of
NW over $225,000
$370,001 or more.......................... $192,000 plus 100 percent of
NW over $370,000
------------------------------------------------------------------------
``(3) Asset protection allowance.--The asset protection
allowance is calculated ac-
[[Page 474]]
cording to the following table (or a successor table
prescribed by the Secretary under section 478):
``Asset Protection Allowances for Families and Students
------------------------------------------------------------------------
And there are
If the age of the oldest parent is-- ---------------------------
two parents one parent
------------------------------------------------------------------------
.......................................... then the asset protection
.................................................. allowance is--.....
---------------------------
25 or less.................................. $ 0 $0
26.......................................... 2,700 1,900
27.......................................... 5,300 3,800
28.......................................... 8,000 5,600
29.......................................... 10,600 7,500
30.......................................... 13,300 9,400
31.......................................... 15,900 11,300
32.......................................... 18,600 13,200
33.......................................... 21,200 15,000
34.......................................... 23,900 16,900
35.......................................... 26,500 18,800
36.......................................... 29,200 20,700
37.......................................... 31,800 22,600
38.......................................... 34,500 24,400
39.......................................... 37,100 26,300
40.......................................... 39,800 28,200
41.......................................... 40,800 28,900
42.......................................... 41,900 29,400
43.......................................... 42,600 30,200
44.......................................... 43,800 30,700
45.......................................... 44,900 31,500
46.......................................... 46,000 32,300
47.......................................... 47,200 32,900
48.......................................... 48,800 33,700
49.......................................... 50,000 34,500
50.......................................... 51,300 35,300
51.......................................... 52,900 36,200
52.......................................... 54,300 37,000
53.......................................... 56,000 37,900
54.......................................... 57,700 39,100
55.......................................... 59,200 40,000
56.......................................... 61,000 40,900
57.......................................... 62,900 42,100
58.......................................... 65,200 43,100
59.......................................... 67,200 44,400
60.......................................... 69,300 45,700
61.......................................... 71,700 47,000
62.......................................... 74,300 48,300
63.......................................... 76,500 49,700
64.......................................... 79,200 51,100
65 or more.................................. 81,900 52,700
------------------------------------------------------------------------
``(4) Educational savings protection allowance.--The
educational savings protection allowance is calculated if the
parental net worth (determined in accordance with paragraph
(2)) minus the asset protection allowance (determined in
accordance with paragraph (3)) is greater than zero and the
parents' available income is greater than zero. This
allowance is determined according to the following table on
the basis of the parents' available income (hereinafter in
this paragraph referred to as `AI') as determined under
subsection (c), except that this allowance shall not be less
than zero:
``Parents' Education Savings Protection Allowance
------------------------------------------------------------------------
Then the savings protection
If AI is-- allowance is--
------------------------------------------------------------------------
Less than $9,300.......................... 22% of AI
$9,301 to $11,600......................... $2,046 + 25% of AI over
$9,300
$11,601 to $14,000........................ $2,621 + 29% of AI over
$11,600
$14,001 to $16,300........................ $3,317 + 34% of AI over
$14,000
$16,301 to $18,700........................ $4,099 + 40% of AI over
$16,300
$18,701 or more........................... $5,059 + 47% of AI over
$18,700
------------------------------------------------------------------------
``(5) Asset conversion rate.--The asset conversion rate is
12 percent.
``(e) Assessment Schedule.--The adjusted available income
(as determined under subsection (b)(1) and hereafter in this
subsection referred to as `AAI') is assessed according to the
following table (or a successor table prescribed by the
Secretary under section 478):
``Parents' Assessment From Adjusted Available Income (AAI)
------------------------------------------------------------------------
If AAI is-- Then the assessment is--
------------------------------------------------------------------------
Less than -$3,409......................... -$750
-$3,409 to $9,300......................... 22% of AAI
$9,301 to $11,600......................... $2,046 + 25% of AAI over
$9,300
$11,601 to $14,000........................ $2,621 + 29% of AAI over
$11,600
$14,001 to $16,300........................ $3,317 + 34% of AAI over
$14,000
$16,301 to $18,700........................ $4,099 + 40% of AAI over
$16,300
$18,701 or more........................... $5,059 + 47% of AAI over
$18,700
------------------------------------------------------------------------
``(f) Computations in Case of Separation, Divorce,
Remarriage, or Death.--
``(1) Divorced or separated parents.--Parental income and
assets for a student whose parents are divorced or separated
is determined under the following procedures:
``(A) Include only the income and assets of the parent with
whom the student resided for the greater portion of the 12-
month period preceding the date of the application.
``(B) If the preceding criterion does not apply, include
only the income and assets of the parent who provided the
greater portion of the student's support for the 12-month
period preceding the date of application.
``(C) If neither of the preceding criteria apply, include
only the income and assets of the parent who provided the
greater support during the most recent calendar year for
which parental support was provided.
``(2) Death of a parent.--Parental income and assets in the
case of the death of any parent is determined as follows:
``(A) If either of the parents has died, the student shall
include only the income and assets of the surviving parent.
``(B) If both parents have died, the student shall not
report any parental income or assets.
``(3) Remarried parents.--Income in the case of a parent
whose income and assets are taken into account under
paragraph (1) of this subsection, or a parent who is a widow
or widower and whose income is taken into account under
paragraph (2) of this subsection, has remarried, is
determined as follows: The income (but not assets) of that
parent's spouse shall be included in determining the parent's
adjusted available income only if--
``(A) the student's parent and the stepparent are married
as of the date of application for the award year concerned;
and
``(B) the student is not an independent student.
``(g) Student Contribution From Available Income.--
``(1) In general.--The student contribution from available
income is equal to--
``(A) the student's total income (determined in accordance
with section 480); minus
``(B) the adjustment to student income (determined in
accordance with paragraph (2); multiplied by
``(C) the assessment rate as determined in paragraph (5).
``(2) Adjustment to student income.--The adjustment to
student income is equal to the sum of--
``(A) actual Federal income taxes of the student;
``(B) an allowance for State and other income taxes
(determined in accordance with paragraph (3)); and
``(C) an allowance for social security taxes determined in
accordance with paragraph (4).
``(3) Allowance for state and other income taxes.--The
allowance for State and other income taxes is equal to an
amount determined by multiplying total income (as defined in
section 480) by a percentage determined according to the
following table (or a successor table prescribed by the
Secretary under section 478):
``Percentages for Computation of State and Other Income Tax Allowance
------------------------------------------------------------------------
If the students' State or territory of residence is-- The percentage is--
------------------------------------------------------------------------
Alaska, American Samoa, Florida, Guam, Nevada, South
Dakota, Tennessee, Texas, Trust Territory, Virgin
Islands, Washington, Wyoming....................... 0
Connecticut, Louisiana, Puerto Rico................. 1
Arizona, New Hampshire, New Mexico, North Dakota.... 2
Alabama, Colorado, Illinois, Indiana, Kansas,
Mississippi, Missouri, Montana, Nebraska, New
Jersey, Oklahoma................................... 3
Arkansas, Georgia, Iowa, Kentucky, Maine,
Pennsylvania, Utah, Vermont, Virginia, West
Virginia, Canada, Mexico........................... 4
California, Idaho, Massachusetts, North Carolina,
Ohio, Rhode Island, South Carolina................. 5
Hawaii, Maryland, Michigan, Wisconsin............... 6
Delaware, District of Columbia, Minnesota, Oregon... 7
New York............................................ 8
------------------------------------------------------------------------
``(4) Allowance for social security taxes.--The allowance
for social security taxes is equal to the amount earned by
the student multiplied by the social security withholding
rate appropriate to the tax year of the earnings, up to the
maximum statutory social security tax withholding amount for
that same tax year.
``(5) The student's available income (determined in
accordance with paragraph (1) of this subsection) is assessed
at 50 percent.
``(h) Student Contribution From Assets.--The student
contribution from assets is determined by calculating the net
assets of the student (not including amounts reported for
purposes of subsection (g)) and multiplying such amount by 35
percent, except that the result shall not be less than zero.
``(i) Adjustments to Parents' Contribution for Enrollment
Periods Other Than 9 Months For Purposes Other Than Subpart 2
of Part A of This Title.--For periods of enrollment other
than 9 months, the parents' contribution from adjusted
available income (as determined under subsection (b)) is
determined as follows for purposes other than subpart 2 of
part A of this title:
``(1) For periods of enrollment less than 9 months, the
parents' contribution from adjusted available income is
divided by 9 and the result multiplied by the number of
months enrolled.
``(2) For periods of enrollment greater than 9 months--
``(A) the parents' adjusted available income (determined in
accordance with subsection (b)(1)) is increased by the
difference between the income protection allowance
(determined in accordance with subsection (c)(4)) for a
family of four and a family of five, each with one child in
college;
``(B) the resulting revised parents' adjusted available
income is assessed according to subsection (e) and adjusted
according to subsection (b)(3) to determine a revised
parents' contribution from adjusted available income;
``(C) the original parents' contribution from adjusted
available income is subtracted from the revised parents'
contribution from adjusted available income, and the result
is divided by 12 to determine the monthly adjustment amount;
and
``(D) the original parents' contribution from adjusted
available income is increased by the product of the monthly
adjustment amount multiplied by the number of months greater
than 9 for which the student will be enrolled.
``(j) Adjustments for Enrollment Periods Other Than 9
Months.--For periods of enrollment other than 9 months, the
student's contribution (as determined under subsection (g))
is adjusted for purposes other than subpart 2 of part A of
this title based on individual circumstances.
[[Page 475]]
``SEC. 476. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS
WITHOUT DEPENDENT CHILDREN.
``(a) Computation of Expected Family Contribution.--For
each independent student without dependent children, the
expected family contribution is determined by--
``(1) adding--
``(A) the family's contribution from available income
(determined in accordance with subsection (b)); and
``(B) the family's contribution from assets (determined in
accordance with subsection (c)); and
``(2) dividing the sum resulting under paragraph (1) by the
number of students who are enrolled or accepted for
enrollment, on at least a half-time basis, in a degree,
certificate, or other program leading to a recognized
educational credential at an institution of higher education
that is an eligible institution in accordance with the
provisions of section 487 during the award period for which
assistance under this title is requested;
except that the amount determined under this subsection shall
not be less than zero.
``(b) Family's Contribution From Available Income.--
``(1) In general.--The family's contribution from income is
determined by--
``(A) deducting from total income (as defined in section
480)--
``(i) an allowance for Federal income taxes;
``(ii) an allowance for State and other taxes, determined
in accordance with paragraph (2);
``(iii) an allowance for social security taxes, determined
in accordance with paragraph (3);
``(iv) an income protection allowance for periods of
nonenrollment not to exceed (I) $1,200 per month for single
students; and (II) $750 per person, per month for married
students; and
``(v) in the case where a spouse is present, an employment
expense allowance, as determined in accordance with paragraph
(4); and
``(B) assessing such available income in accordance with
paragraph (5).
``(2) Allowance for state and other taxes.--The allowance
for State and other taxes is equal to an amount determined by
multiplying total income (as defined in section 480) by a
percentage determined according to the following table (or a
successor table prescribed by the Secretary under section
478):
``Percentages for Computation of State and Other Income Tax Allowance
------------------------------------------------------------------------
If the students' State or territory of residence is-- The percentage is--
------------------------------------------------------------------------
Alaska, American Samoa, Florida, Guam, Nevada, South
Dakota, Tennessee, Texas, Trust Territory, Virgin
Islands, Washington, Wyoming....................... 0
Connecticut, Louisiana, Puerto Rico................. 1
Arizona, New Hampshire, New Mexico, North Dakota.... 2
Alabama, Colorado, Illinois, Indiana, Kansas,
Mississippi, Missouri, Montana, Nebraska, New
Jersey, Oklahoma................................... 3
Arkansas, Georgia, Iowa, Kentucky, Maine,
Pennsylvania, Utah, Vermont, Virginia, West
Virginia, Canada, Mexico........................... 4
California, Idaho, Massachusetts, North Carolina,
Ohio, Rhode Island, South Carolina................. 5
Hawaii, Maryland, Michigan, Wisconsin............... 6
Delaware, District of Columbia, Minnesota, Oregon... 7
New York............................................ 8
Other............................................... 4
------------------------------------------------------------------------
``(3) Allowance for social security taxes.--The allowance
for social security taxes is equal to the amount earned by
the student (and spouse, if appropriate), multiplied by the
social security withholding rate appropriate to the tax year
preceding the award year, up to the maximum statutory social
security tax withholding amount for that same tax year.
``(4) Employment expenses allowance.--The employment
expense allowance is determined as follows (or using a
successor provision prescribed by the Secretary under section
478):
``(A) If the student is married and his or her spouse is
employed in the year for which income is reported, such
allowance is equal to the lesser of $2,600 or 35 percent of
the earned income of the student or spouse with the lesser
earned income.
``(B) If a student is not married, the employment expense
allowance is zero.
``(5) Assessment of available income.--The family's
available income (determined in accordance with paragraph
(1)(A) of this subsection) is assessed at 50 percent.
``(c) Family Contribution From Assets.--
``(1) In general.--The family's income supplemental amount
from assets is equal to--
``(A) the family's net worth (determined in accordance with
paragraph (2)); minus
``(B) the asset protection allowance (determined in
accordance with paragraph (3)); multiplied by
``(C) the asset conversion rate (determined in accordance
with paragraph (4));
except that the family's contribution from assets shall not
be less than zero.
``(2) Family's net worth.--The family's net worth is
calculated by adding--
``(A) the current balance of checking and savings accounts
and cash on hand;
``(B) the net value of investments and real estate,
excluding the net value in the principal place of residence;
and
``(C) the adjusted net worth of a business or farm,
computed on the basis of the net worth of such business or
farm (hereafter referred to as `NW'), determined in
accordance with the following table (or a successor table
prescribed by the Secretary under section 478), except as
provided under section 480(f):
``Adjusted Net Worth of a Business or Farm
------------------------------------------------------------------------
If the net worth of a business or farm is-- Then the adjusted net worth
is--
------------------------------------------------------------------------
Less than $1.............................. $0
$1-$75,000................................ 40 percent of NW
$75,001-$225,000.......................... $30,000 plus 50 percent of
NW over $75,000
$225,001-$370,000......................... $105,000 plus 60 percent of
NW over $225,000
$370,001 or more.......................... $192,000 plus 100 percent of
NW over $370,000
------------------------------------------------------------------------
``(3) Asset protection allowance.--The asset protection
allowance is calculated according to the following table (or
a successor table prescribed by the Secretary under section
478):
``Asset Protection Allowances for Families and Students
------------------------------------------------------------------------
And the student is
If the age of the student is-- ---------------------------------
married single
------------------------------------------------------------------------
.................................... then the asset protection
............................................. allowance is--.......
---------------------------------
25 or less............................ $0 $0
26.................................... 2,700 1,900
27.................................... 5,300 3,800
28.................................... 8,000 5,600
29.................................... 10,600 7,500
30.................................... 13,300 9,400
31.................................... 15,900 11,300
32.................................... 18,600 13,200
33.................................... 21,200 15,000
34.................................... 23,900 16,900
35.................................... 26,500 18,800
36.................................... 29,200 20,700
37.................................... 31,800 22,600
38.................................... 34,500 24,400
39.................................... 37,100 26,300
40.................................... 39,800 28,200
41.................................... 40,800 28,900
42.................................... 41,900 29,400
43.................................... 42,600 30,200
44.................................... 43,800 30,700
45.................................... 44,900 31,500
46.................................... 46,000 32,300
47.................................... 47,200 32,900
48.................................... 48,800 33,700
49.................................... 50,000 34,500
50.................................... 51,300 35,300
51.................................... 52,900 36,200
52.................................... 54,300 37,000
53.................................... 56,000 37,900
54.................................... 57,700 39,100
55.................................... 59,200 40,000
56.................................... 61,000 40,900
57.................................... 62,900 42,100
58.................................... 65,200 43,100
59.................................... 67,200 44,400
60.................................... 69,300 45,700
61.................................... 71,700 47,000
62.................................... 74,300 48,300
63.................................... 76,500 49,700
64.................................... 79,200 51,700
65 or more............................ 81,900 52,700
------------------------------------------------------------------------
``(4) Asset conversion rate.--The asset conversion rate is
35 percent.
``SEC. 477. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH
DEPENDENT CHILDREN.
``(a) Computation of Expected Family Contribution.--For
each independent student with dependent children the expected
family contribution is equal to the amount determined by--
``(1) computing adjusted available income by adding--
``(A) the family's available income (determined in
accordance with subsection (b)); and
``(B) the family's contribution from assets (determined in
accordance with subsection (c));
``(2) assessing such adjusted available income in
accordance with an assessment schedule set forth in
subsection (d); and
``(3) dividing the assessment resulting under paragraph (2)
by the number of family members who are enrolled or accepted
for enrollment, on at least a half-time basis, in a degree,
certificate, or other program leading to a recognized
educational credential at an institution of higher education
that is an eligible institution in accordance with the
provisions of section 487 during the award period for which
assistance under this title is requested;
except that the amount determined under this subsection shall
not be less than zero.
``(b) Family's Available Income.--
``(1) In general.--The family's available income is
determined by deducting from total income (as defined in
section 480)--
``(A) an allowance for Federal income taxes;
``(B) an allowance for State and other taxes, determined in
accordance with paragraph (2);
``(C) an allowance for social security taxes, determined in
accordance with paragraph (3);
``(D) an income protection allowance, determined in
accordance with paragraph (4);
``(E) an employment expense allowance, determined in
accordance with paragraph (5); and
``(F) an educational expense allowance, determined in
accordance with paragraph (6).
``(2) Allowance for state and other taxes.--The allowance
for State and other taxes is equal to an amount determined by
multiplying total income (as defined in section 480) by a
percentage determined according to the following table (or a
successor table prescribed by the Secretary under section
478):
[[Page 476]]
``Percentages for Computation of State and Other Tax Allowance
------------------------------------------------------------------------
And family's total income
is--
If student's State or territory of residence ---------------------------
is-- less than $15,000 or
$15,000 more
------------------------------------------------------------------------
......................................... then the percentage is--
---------------------------
..........................................
Alaska, Puerto Rico, Wyoming................ 3 2
American Samoa, Guam, Louisiana, Nevada,
Texas, Trust Territory, Virgin Islands..... 4 3
Florida, South Dakota, Tennessee, New Mexico 5 4
North Dakota, Washington.................... 6 5
Alabama, Arizona, Arkansas, Indiana,
Mississippi, Missouri, Montana, New
Hampshire, Oklahoma, West Virginia......... 7 6
Colorado, Connecticut, Georgia, Illinois,
Kansas, Kentucky........................... 8 7
California, Delaware, Idaho, Iowa, Nebraska,
North Carolina, Ohio, Pennsylvania, South
Carolina, Utah, Vermont, Virginia, Canada,
Mexico..................................... 9 8
Maine, New Jersey........................... 10 9
District of Columbia, Hawaii, Maryland,
Massachusetts, Oregon, Rhode Island........ 11 10
Michigan, Minnesota......................... 12 11
Wisconsin................................... 13 12
New York.................................... 14 13
Other....................................... 9 8
------------------------------------------------------------------------
``(3) Allowance for social security taxes.--The allowance
for social security taxes is equal to the amount estimated to
be earned by the student (and spouse, if appropriate)
multiplied by the social security withholding rate
appropriate to the tax year preceding the award year, up to
the maximum statutory social security tax withholding amount
for that same tax year.
``(4) Income protection allowance.--The income protection
allowance is determined by the following table (or a
successor table prescribed by the Secretary under section
478):
``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
Family size Number in college
----------------------------------------------------------------------------------------------------------------
For each
(including student) 1 2 3 4 5 additional
subtract:
----------------------------------------------------------------------------------------------------------------
2 $10,270 $8,560
3 12,840 11,130 $9,420
4 15,790 14,080 12,370 $10,660
5 18,750 17,040 15,330 13,620 $11,910
6 21,830 20,120 18,410 16,700 14,990 $1,710
For each..........................................
additional........................................
add: 2,570 2,570 2,570 2,570 2,570
----------------------------------------------------------------------------------------------------------------
``(5) Employment expense allowance.--The employment expense
allowance is determined as follows (or a successor table
prescribed by the Secretary under section 478):
``(A) If the student is married and his or her spouse is
employed in the year for which their income is reported, such
allowance is equal to the lesser of $2,600 or 35 percent of
the earned income of the student or spouse with the lesser
earned income.
``(B) If a student qualifies as a surviving spouse or as a
head of household as defined in section 2 of the Internal
Revenue Code, such allowance is equal to the lesser of $2,600
or 35 percent of his or her earned income.
``(6) Educational expense allowance.--The educational
expense allowance is equal to the unreimbursed tuition and
fees paid by the student or the student's spouse, or both,
for each dependent child, enrolled in elementary or secondary
school, not to exceed for each such child the national
average per pupil cost as published by the Center for
Educational Statistics using the most recent available data.
``(c) Family's Contribution From Assets.--
``(1) In general.--The family's contribution from assets is
equal to--
``(A) the family net worth (determined in accordance with
paragraph (2)); minus
``(B) the asset protection allowance (determined in
accordance with paragraph (3)); multiplied by
``(C) the asset conversion rate (determined in accordance
with paragraph (4)), except that the result shall not be less
than zero.
``(2) Family net worth.--The family net worth is calculated
by adding--
``(A) the current balance of checking and savings accounts
and cash on hand;
``(B) the net value of investments and real estate,
excluding the net value in the principal place of residence;
and
``(C) the adjusted net worth of a business or farm,
computed on the basis of the net worth of such business or
farm (hereafter referred to as `NW'), determined in
accordance with the following table (or a successor table
prescribed by the Secretary under section 478), except as
provided under section 480(f):
``Adjusted Net Worth of a Business or Farm
------------------------------------------------------------------------
If the net worth of a business or farm is-- Then the adjusted net worth
is--
------------------------------------------------------------------------
Less than $1.............................. $0
$1-$75,000................................ 40 percent of NW
$75,001-$225,000.......................... $30,000 plus 50 percent of
NW over $75,000
$225,001-$370,000......................... $105,000 plus 60 percent of
NW over $225,000
$370,001 or more.......................... $192,000 plus 100 percent of
NW over $370,000
------------------------------------------------------------------------
``(3) Asset protection allowance.--The asset protection
allowance is calculated according to the following table (or
a successor table prescribed by the Secretary under section
478):
``Asset Protection Allowances for Families and Students
------------------------------------------------------------------------
And the student is
If the age of the student is-- ---------------------------
married single
------------------------------------------------------------------------
.......................................... then the asset protection
.................................................. allowance is--.....
---------------------------
25 or less.................................. $0 $0
26.......................................... 2,700 1,900
27.......................................... 5,300 3,800
28.......................................... 8,000 5,600
29.......................................... 10,600 7,500
30.......................................... 13,300 9,400
31.......................................... 15,900 11,300
32.......................................... 18,600 13,200
33.......................................... 21,200 15,000
34.......................................... 23,900 16,900
35.......................................... 26,500 18,800
36.......................................... 29,200 20,700
37.......................................... 31,800 22,600
38.......................................... 34,500 24,400
39.......................................... 37,100 26,300
40.......................................... 39,800 28,200
41.......................................... 40,800 28,900
42.......................................... 41,900 29,400
43.......................................... 42,600 30,200
44.......................................... 43,800 30,700
45.......................................... 44,900 31,500
46.......................................... 46,000 32,300
47.......................................... 47,200 32,900
48.......................................... 48,800 33,700
49.......................................... 50,000 34,500
50.......................................... 51,300 35,300
51.......................................... 52,900 36,200
52.......................................... 54,300 37,000
53.......................................... 56,000 37,900
54.......................................... 57,700 39,100
55.......................................... 59,200 40,000
56.......................................... 61,000 40,900
57.......................................... 62,900 42,100
58.......................................... 65,200 43,100
59.......................................... 67,200 44,400
60.......................................... 69,300 45,700
61.......................................... 71,700 47,000
62.......................................... 74,300 48,300
63.......................................... 76,500 49,700
64.......................................... 79,200 51,100
65 or more.................................. 81,900 52,700
------------------------------------------------------------------------
``(4) Asset conversion rate.--The asset conversion rate is
12 percent.
``(d) Assessment Schedule.--The adjusted available income
(as determined under subsection (a)(1) and hereafter referred
to as `AAI') is assessed according to the following table (or
a successor table prescribed by the Secretary under section
478):
``Assessment From Adjusted Available Income (AAI)
------------------------------------------------------------------------
If AAI is-- Then the assessment is--
------------------------------------------------------------------------
Less than -$3,409......................... -$750
-$3,409 to $9,300......................... 22% of AAI
$9,301 to $11,600......................... $2,046 + 25% of AAI over
$9,300
$11,601 to $14,000........................ $2,621 + 29% of AAI over
$11,600
$14,001 to $16,300........................ $3,317 + 34% of AAI over
$14,000
$16,301 to $18,700........................ $4,099 + 40% of AAI over
$16,300
$18,701 or more........................... $5,059 + 47% of AAI over
$18,700
------------------------------------------------------------------------
``SEC. 478. REGULATIONS; UPDATED TABLES.
``(a) Authority To Prescribe Regulations Restricted.--(1)
Notwithstanding any other provision of law, the Secretary
shall not have the authority to prescribe regulations to
carry out this part except--
``(A) to prescribe updated tables in accordance with
subsections (b) through (e) of this section; or
``(B) to propose modifications in the need analysis
methodology required by this part.
``(2) Any regulation proposed by the Secretary that (A)
updates tables in a manner that does not comply with
subsections (b) through (e) of this section, or (B) that
proposes modifications under paragraph (1)(B) of this
subsection, shall not be effective unless approved by joint
resolution of the Congress by May 1 following the date such
regulations are published in the Federal Register in
accordance with section 482. If the Congress fails to approve
such regulations by such May 1, the Secretary shall publish
in the Federal Register in accordance with section 482
updated tables for the applicable award year that are
prescribed in accordance with subsections (b) through (e) of
this section.
``(b) Income Protection Allowance.--(1) For each award year
after award year 1992-1993, 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 using the
most recent data from the Consumer Expenditure Survey
Integrated Survey Data and multiplying it as necessary by the
percentage change in the Consumer Price Index. The income
protection allowance for a family of three with one in
college is equal to the lower living standard less a
percentage for sales taxes (determined in accordance with
paragraph (2)), less an amount (determined in accordance with
paragraph (3)) for education expenditures, and less a
student-in-college allowance (determined in accordance with
paragraph (4)). The result is multiplied by the percentage
change in the Consumer Price Index. The income protection
allowance for other families is determined by using the
appropriate equivalency scale in paragraph (5).
``(2) From the mean total household expenditures
(prevailing standard), a 5 percent allowance is subtracted
for sales taxes. The result is multiplied by 75 percent to
reach the median total household expenditures and again
multiplied by 67 percent to arrive at the lower living
standard.
``(3) Education expenditures are those associated with
elementary, secondary, and postsecondary tuition as
identified in the Consumer Expenditure Survey Integrated
Survey Data. The result is multiplied by 75 percent to reach
the median total expenditures in these categories and again
multiplied by 67 percent to arrive at the lower living
standard.
``(4) The student-in-college adjustment is equal to nine
months of mean individual expenses for food, apparel,
transportation, entertainment, and personal care, minus a 5
percent allowance for sales taxes. The result is multiplied
by 75 percent to reach the median total individual
expenditures in these categories and again multiplied by 67
percent to arrive at the lower living standard.
[[Page 477]]
``(5) The following equivalency scales are based on an
average family size of 3:
``Parents' Assessment From Adjusted Available Income (AAI)
------------------------------------------------------------------------
Family Size Equivalency
------------------------------------------------------------------------
1......................................... .64
2......................................... .80
3......................................... 1.00
4......................................... 1.23
5......................................... 1.46
6......................................... 1.70
------------------------------------------------------------------------
``(6) There is an additional adjustment necessary for
families of seven or more. This adjustment is determined by
applying the appropriate equivalency percentage to derive the
income protection allowance amount for a family size of seven
and establishing the difference between this figure and the
income protection allowance for a family size of six as the
standard adjustment.
``(7) There is an additional adjustment necessary for
families with more than five students enrolled in
postsecondary education. This adjustment is determined by
multiplying the student-in-college adjustment (determined in
accordance with paragraph (4)) as appropriate by the Consumer
Price Index.
``(8) The monthly maintenance allowance for purposes of
section 476(b)(1)(B)(iv)(I) is calculated by--
``(A) adding the student in college adjustment (determined
in accordance with paragraph (4)) to the income protection
allowance (determined in accordance with paragraph (1));
``(B) multiplying the result by 0.64 to derive the income
protection allowance for a family size of 1;
``(C) dividing the result by 12 to obtain a monthly amount;
and
``(D) multiplying the result by 1.5 and rounding upward to
the nearest $50 to derive the prevailing level amount.
``(9) The monthly maintenance allowance for purposes of
section 476(b)(1)(B)(iv)(II) is calculated by--
``(A) adding the student in college adjustment (determined
in accordance with paragraph (4)) to the income protection
allowance (determined in accordance with paragraph (1));
``(B) multiplying the result by 80 percent to derive the
income protection allowance for a family size of 2;
``(C) dividing the result by 12 to obtain a monthly amount;
``(D) dividing the result by 2 to determine a per person
amount; and
``(E) multiplying the result by 150 percent and rounding
upward to the nearest $50 to derive the prevailing level
amount.
``(c) Adjusted Net Worth of a Business.--For each award
year after award year 1992-1993, the Secretary shall publish
in the Federal Register a revised table of adjusted net worth
of a business for purposes of sections 475(d)(2)(C),
476(c)(2)(C), and 477(c)(2)(C). Such revised table shall be
developed--
``(1) by increasing each dollar amount that refers to net
worth of a business by a percentage equal to the estimated
percentage increase in the Consumer Price Index (as
determined by the Secretary) between 1992 and the December
next preceding the beginning of such award year, and rounding
the result to the nearest $5,000; and
``(2) by adjusting the dollar amounts `$30,000',
`$105,000', and `$192,000' to reflect the changes made
pursuant to paragraph (1).
``(d) Asset Protection Allowance.--(1) For each award year
after award year 1992-1993, the Secretary shall publish in
the Federal Register a revised table of asset protection
allowances for the purpose of sections 475(d)(3), 476(c)(3),
and 477(c)(3). Such revised table shall be developed by using
the most
recent data from the Consumer Expenditure Survey Integrated
Survey Data according to paragraph (2) of this subsection.
``(2) Such revised table shall be developed by determining
the present value cost, rounded to the nearest $100 and based
on annually determined average life expectancy, of an annuity
that would provide, for each age cohort of 40 and above, a
supplemental income at age 65 (adjusted for inflation) equal
to the difference between the prevailing standard level of
the Consumer Expenditure Survey (adjusted as appropriate by
the Consumer Price Index), and the current average social
security retirement benefits. For each age cohort below 40,
the asset protection allowance shall be computed by
decreasing the asset protection allowance for age 40, as
updated, by one-fifteenth for each year of age below age 40
and rounding the result to the nearest $100. In making such
determinations--
``(A) inflation shall be presumed to be 6 percent per year;
``(B) the rate of return of an annuity shall be presumed to
be 8 percent; and
``(C) the sales commission on an annuity shall be presumed
to be 6 percent.
``(e) Assessment Schedules and Rates.--For each award year
after award year 1992-1993, the Secretary shall publish in
the Federal Register a revised table of assessments from
adjusted available income for the purpose of sections 475(e)
and 477(d). Such revised table shall be developed--
``(1) by increasing each dollar amount that refers to
adjusted available income by a percentage equal to the
estimated percentage increase in the Consumer Price Index (as
determined by the Secretary) between December 1992 and the
December next preceding the beginning of such academic year,
rounded to the nearest $100; and
``(2) by adjusting the other dollar amounts to reflect the
changes made pursuant to paragraph (1).
``(f) Definition of Consumer Price Index.--As used in this
section, the term `Consumer Price Index' means the Consumer
Price Index for All Urban Consumers published by the
Department of Labor. Each annual update of tables to reflect
changes in the Consumer Price Index shall be corrected for
misestimation of actual changes in such Index in previous
years.
``(g) State and Other Tax Allowance.--For each award year
after award year 1992-1993, the Secretary shall publish in
the Federal Register a revised table of State and other tax
allowances for the purpose of sections 475(c)(2), 475(q)(3),
476(b)(2), and 477(b)(2). The Secretary shall develop such
revised table after review of the Department of the
Treasury's Statistics of Income file and determination of the
percentage of income that each State's taxes represent.
``(h) Employment Expense Allowance.--For each award year
after award year 1992-1993, 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 using
the most recent expense data from the Consumer Expenditure
Survey Integrated Survey Data and updating it as appropriate
by the Consumer Price Index. Such revised table shall be
developed--
``(1) by determining according to the Consumer Price
Expenditure Survey for each of the most recent three years,
the difference between average expenditures for two-earner
and one-earner families on meals away from home, clothing,
transportation, and personal household services;
``(2) multiplying each resulting amount as appropriate by
the Consumer Price Index;
``(3) multiplying each result by 70 percent;
``(4) determining a three-year average for such
expenditures; and
``(5) rounding the result to the nearest $100.
``SEC. 479. SIMPLIFIED NEEDS TEST.
``(a) General Eligibility.--For purposes of this title and
as provided in subsection (b), individuals who do not file an
Internal Revenue Service form 1040 shall be considered to
have a zero family contribution if--
``(1) for purposes of section 475 of this part, the sum of
the adjusted gross income of the parents is less than or
equal to the maximum amount of income (rounded annually to
the nearest thousand dollars) that may be earned in order to
claim the Federal earned income credit; or
``(2) for purposes of section 477 of this part, the sum of
the adjusted gross income of the student and spouse (if
appropriate) is less than or equal to the maximum amount of
income (rounded annually to the nearest thousand dollars)
that may be earned in order to claim the Federal earned
income credit.
``(b) Special Rule.--To be eligible under this section, an
individual is not required to qualify or file for the earned
income credit.
``SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID
ADMINISTRATORS.
``Nothing in this title 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 data
required to calculate the expected student or parent
contribution (or both), or 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
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. For the purposes of this section, special
circumstances include excluding from family income any
proceeds of a sale of farm or business assets of a family if
such sale results from a voluntary or involuntary
foreclosure, forfeiture, or bankruptcy or an involuntary
liquidation.
``SEC. 479B. DISREGARD OF STUDENT AID IN OTHER FEDERAL
PROGRAMS.
``Notwithstanding any other provision of law, student
financial assistance received under this title, or under
Bureau of Indian Affairs student assistance programs, shall
not be taken into account in determining the need or
eligibility of any person for benefits or assistance, or the
amount of such benefits or assistance, under any Federal,
State, or local program financed in whole or in part with
Federal funds.
``SEC. 479C. NATIVE AMERICAN STUDENTS.
``In determining family contributions for Native American
students, computations performed pursuant to this part shall
exclude--
``(1) any income and assets of $2,000 or less per
individual payment received by the student (and spouse) and
student's parents under the Per Capita Act or the
Distribution of Judgment Funds Act; and
``(2) any income received by the student (and spouse) and
student's parents under the Alaskan Native Claims Settlement
Act or the Maine Indian Claims Settlement Act.
[[Page 478]]
``SEC. 480. DEFINITIONS.
``As used in this part:
``(a) Total Income.--(1) Except as provided in paragraph
(2), for parents of dependent students and for dependent
students, the term `total income' is equal to adjusted gross
income plus untaxed income and benefits for the preceding tax
year minus excludable income (as defined in subsection (e)).
``(2) For the independent student and, if appropriate his
or her spouse, the term `total income' is equal to adjusted
gross income plus untaxed income and benefits minus
excludable income as defined in subsection (e) for the period
of July 1 to June 30 of the award year.
``(3) No portion of any student financial assistance
received from any program by an individual shall be included
as income or assets in the computation of expected family
contribution for any program funded in whole or in part under
this Act.
``(b) Untaxed Income and Benefits.--The term `untaxed
income and benefits' means--
``(1) child support received;
``(2) welfare benefits, including aid to families with
dependent children under a State plan approved under part A
of title IV of the Social Security Act and aid to dependent
children;
``(3) workman's compensation;
``(4) veterans' benefits, including death pension,
dependency, indemnity compensation, and veterans' education
benefits as defined in subsection (c);
``(5) interest on tax-free bonds;
``(6) housing, food, and other allowances (excluding rent
subsidies for low-income housing) for military, clergy, and
others (including cash payments and cash value of benefits);
``(7) cash support or any money paid on the student's
behalf, except, for dependent students, funds provided by his
or her parents;
``(8) the amount of earned income credit claimed for
Federal income tax purposes;
``(9) untaxed portion of pensions;
``(10) credit for Federal tax on special fuels;
``(11) the amount of foreign income excluded for purposes
of Federal income taxes;
``(12) untaxed social security benefits;
``(13) payments to individual retirement accounts and Keogh
accounts excluded from income for Federal income tax
purposes; and
``(14) any other untaxed income and benefits, such as Black
Lung Benefits, Refugee Assistance, railroad retirement
benefits, or Job Training Partnership Act noneducational
benefits.
``(c) Veteran and Veterans' Benefits.--(1) The term
`veteran' means any individual who--
``(A) has engaged in the active duty in the United States
Army, Navy, Air Force, Marines, or Coast Guard; and
``(B) was released under a condition other than
dishonorable.
``(2) The term `veterans' benefits' means veterans'
benefits the student will receive during the award year,
including but not limited to the following:
``(A) Title 10, chapter 2: Reserve Officer Training Corps
scholarship.
``(B) Title 10, chapter 106: Selective Reserve.
``(C) Title 10, chapter 107: Selective Reserve Educational
Assistance Program.
``(D) Title 37, chapter 2: Reserve Officer Training Corps
Program.
``(E) Title 38, chapter 30: Montgomery GI Bill--active
duty.
``(F) Title 38, chapter 31: vocational rehabilitation.
``(G) Title 38, chapter 32: Post-Vietnam Era Veterans'
Educational Assistance Program.
``(H) Title 38, chapter 35: Dependents Educational
Assistance Program.
``(I) Title 38, section 207: unnamed program for 1977-78
service academy attendees and 1978 ROTC graduates.
``(J) Public Law 97-376, section 156: Restored Entitlement
Program for Survivors (or Quayle benefits).
``(K) Public Law 96-342, section 903: Educational
Assistance Pilot Program.
``(d) Independent Student.--The term `independent', when
used with respect to a student, means any individual who--
``(1) is 24 years of age or older by December 31 of the
award year;
``(2) is an orphan or ward of the court;
``(3) is a veteran of the Armed Forces of the United States
(as defined in subsection (c)(1));
``(4) is a graduate or professional student;
``(5) is a married individual;
``(6) has legal dependents other than a spouse; or
``(7) is a student for whom a financial aid administrator
makes a documented determination of independence by reason of
other unusual circumstances.
``(e) Excludable Income.--The term `excludable income'
means--
``(1) any student financial assistance awarded based on
need as determined in accordance with the provisions of this
part, including any income earned from work under part C of
this title;
``(2) any living allowance received by a participant in a
program established under the National and Community Service
Act of 1990;
``(3) child support payments made by the student or parent;
and
``(4) payments made and services provided under part E of
title IV of the Social Security Act.
``(f) Assets.--(1) The term `assets' means cash on hand,
including the amount in checking and savings accounts, time
deposits, money market funds, trusts, stocks, bonds, other
securities, mutual funds, tax shelters, and the net value of
real estate, income producing property, and business and farm
assets.
``(2) With respect to determinations of need under this
title, other than for subpart 4 of part A, the term `assets'
shall not include the net value of--
``(A) the family's principal place of residence;
``(B) a family farm on which the family resides; or
``(C) a small business (as that term is defined in
regulation prescribed by the Administrator of the Small
Business Administration pursuant to the Small Business Act)
substantially owned and managed by a member or members of the
family.
``(g) Net Assets.--The term `net assets' means the current
market value at the time of application of the assets
included in the definition of `assets', minus the outstanding
liabilities or indebtedness against the assets.
``(h) Treatment of Income Taxes Paid to Other
Jurisdictions.--(1) The tax on income paid to the Governments
of the Commonwealth of Puerto Rico, Guam, American Samoa, the
Virgin Islands, or the Northern Mariana Islands, or the Trust
Territory of the Pacific Islands under the laws applicable to
those jurisdictions, or the comparable tax paid to the
central government of a foreign country, shall be treated as
Federal income taxes.
``(2) References in this part to the Internal Revenue Code
of 1986, Federal income tax forms, and the Internal Revenue
Service shall, for purposes of the tax described in paragraph
(1), be treated as references to the corresponding laws, tax
forms, and tax collection agencies of those jurisdictions,
respectively, subject to such adjustments as the Secretary
may prescribe by regulation.
``(i) Current Balance.--The term `current balance of
checking and savings accounts'
does not include any funds over which an individual is barred
from exercising discretion and control because of the actions
of any State in declaring a bank emergency due to the
insolvency of a private deposit insurance fund.
``(j) Other Financial Assistance; Tuition Prepayment
Plans.--(1) For purposes of determining a student's
eligibility for funds under this title, estimated financial
assistance not received under this title shall include all
scholarships, grants, loans, or other assistance known to the
institution at the time the determination of the student's
need is made.
``(2)(A) Except as provided in subparagraph (B), for
purposes of determining a student's eligibility for funds
under this title, tuition prepayment plans shall reduce the
cost of attendance (as determined under section 472) by the
amount of the prepayment, and shall not be considered
estimated financial assistance.
``(B) If the institutional expense covered by the
prepayment must be part of the student's cost of attendance
for accounting purposes, the prepayment shall be considered
estimated financial assistance, as defined in subsection
480(j).''.
PART G--GENERAL PROVISIONS
SEC. 481. DEFINITIONS.
(a) Institution of Higher Education.--(1) Section 481(a)(1)
of the Act is amended--
(A) by striking ``and part B'';
(B) by adding ``and'' at the end of subparagraph (A);
(C) by striking the semicolon at the end of subparagraph
(B) and inserting a period; and
(D) by striking subparagraphs (C) and (D).
(2) Section 481(a) of the Act is amended by striking
paragraphs (2) and (3) and inserting the following:
``(2) Notwithstanding paragraph (1) of this subsection, an
institution which enrolls 50 percent or more of its students
in correspondence courses is not an `institution of higher
education' under this title.
``(3) An institution may not qualify as an institution of
higher education if--
``(A) such institution has filed for bankruptcy; and
``(B) the institution, its owner, or its chief executive
officer has been convicted of, or has pled nolo contendere or
guilty to, a crime involving the acquisition, use, or
expenditure of funds under this title, or has been judicially
determined to have committed fraud involving funds under this
title.
``(4) An institution may not qualify as an institution of
higher education for purposes of the Pell Grant program under
subpart 2 of part A of this title if such institution is
ineligible to participate in a loan program under part B of
this title as a result of a default rate determination under
section 435(a).
``(5) The Secretary shall certify an institution's
qualification as an institution of higher education in
accordance with the requirements of subsections (e) and (f)
of this subsection.''.
(b) Proprietary Institutions of Higher Education.--Section
481(b) is amended by--
(1) inserting ``pursuant to section 1205'' after ``this
purpose'';
(2) by striking ``and'' at the end of clause (4); and
(3) by striking the period at the end of clause (5) and
inserting the following: ``, and (6) which has at least 15
percent of its revenues from sources that are not derived
from funds provided under this title.''.
(c) Award Year.--Section 481(d) of the Act is amended to
read as follows:
``(d) Academic and Award Year.--(1) For the purpose of any
program under this title, the term `award year' shall be
defined as the period beginning July 1 and ending June 30 of
the following year.
[[Page 479]]
``(2) For the purpose of any program under this title, the
term `academic year' shall require a minimum of 30 weeks of
instructional time in which a full-time student is expected
to complete at least 24 semester or trimester hours or 36
quarter hours at an institution which measures program length
in credit hours or at least 900 clock hours at an institution
which measures program length in clock hours. For the
purposes of any program under this title, program length for
any course of instruction of less than two years which is
occupational, vocational, trade, or technical in nature shall
be measured in clock hours, except for a program where all of
the hours are fully acceptable for credit in a two or four
year program at the institution.''.
(d) Branches of Institutions; Changes of Ownership; Third
Party Servicers.--Section 481 of the Act is amended by
striking subsection (e) and inserting the following new
subsections:
``(e) Time Limitations on, and Renewal of, Eligibility.--
(1) The eligibility for the purposes of any program
authorized under this title of any institution that is
participating in any such program on the date of enactment of
the Higher Education Amendments of 1992 shall expire in
accordance with the schedule prescribed by the Secretary in
accordance with paragraphs (2) and (3), but not later than 5
years after such date of enactment.
``(2) The Secretary shall establish a schedule for the
expiration of the eligibility for purposes of any such
program of all institutions of higher education within the 5-
year period specified in paragraph (1).
``(3) Such schedule shall place a priority for the
expiration of the certification of institutions on those that
meet the following criteria: (A) institutions with high
default rates, (B) institutions where there is evidence of
fraud and abuse, (C) institutions lacking financial
responsibility, (D) institutions with a record of having
violated or failed to carry out any provisions of this title,
or (E) other institutions which the Secretary deems
necessary.
``(4) After the expiration of the certification of any
institution under the schedule prescribed under this
subsection, or upon request for initial certification from an
institution not previously certified, the Secretary may
certify the eligibility for the purposes of any program
authorized under this title of each such institution for a
period not to exceed 4 years.
``(5) The personnel of the Department of Education shall
conduct a site visit at each institution before certifying or
recertifying its eligibility for purposes of any such
program. The Secretary may charge reasonable fees to cover
the expenses of certification and site visits and, to the
extent permitted by appropriations Acts, may retain such fees
to cover such expenses.
``(6) The Secretary shall not certify the eligibility of
any institution for such purposes unless the Secretary
determines that such institution complies with criteria
prescribed by the Secretary, pursuant to section 487(a)(3),
to ensure the proper and efficient administration of funds
received from the Secretary or from students under this
title.
``(f) Provisional Certification of Institutional
Eligibility.--(1) Notwithstanding any other provision of law,
the Secretary is authorized to provisionally certify an
institution's eligibility to participate in programs under
this title if--
``(A) the institution's administrative capability and
financial responsibility is being determined for the first
time;
``(B) there is a complete or partial transfer of ownership,
as defined under section 481(h), of an eligible institution;
or
``(C) the Secretary deems that an institution is, in the
judgment of the Secretary, in an administrative or financial
condition that may jeopardize its ability to perform its
responsibilities under its program participation agreement.
``(2) The Secretary may provisionally certify an
institution under this subsection for up to 3 complete award
years.
``(3) If, prior to the end of a period of provisional
certification under this subsection, the Secretary determines
that the institution is unable to meet its responsibilities
under its program participation agreement, the Secretary may
terminate the institution's participation in programs under
this title.
``(g) Branches.--For the purposes of this title, a branch
of an eligible institution, as defined pursuant to the
regulations of the Secretary, is a separate institution of
higher education and therefore must separately meet all the
requirements of this title.
``(h) Changes of Ownership.--For the purpose of this
section (other than subsection (b)(5)), an eligible
institution of higher education that has a change in
ownership resulting in a change in control shall not be
considered to be the same institution and shall be considered
a new institution for the purpose of establishing
eligibility. Such actions may include (but are not limited
to)--
``(1) the sale of the institution or the majority of its
assets;
``(2) the transfer of the controlling interest of stock of
the institution or its parent corporation;
``(3) the merger of two or more eligible institutions;
``(4) the division of one or more institutions into two or
more institutions;
``(5) the transfer of the controlling interest of stock of
the institutions to its parent corporation; or
``(6) the transfer of the liabilities of the institution to
its parent corporation.
``(i) Third Party Servicer.--For purposes of this title,
the term `third party servicer' means--
``(1) any State or private, profit or nonprofit
organization or individual which enters into a contract with
any eligible institution of higher education to administer,
through either manual or automated processing, any aspect of
such institution's student assistance programs under this
title; or
``(2) any State or private, profit or nonprofit
organization or individual which enters into a contract with
any guaranty agency, or any eligible lender, to administer,
through either manual or automated processing, any aspect of
such guaranty agency's or lender's student loan programs
under part B of this title, including but not limited to,
originating, guaranteeing, monitoring, processing, servicing,
or collecting loans.''.
SEC. 482. MASTER CALENDAR.
(a) Amendment.--Section 482(c) of the Act is amended to
read as follows:
``(c) Delay of Effective Date of Late Publications.--Any
regulatory changes initiated by the Secretary affecting the
programs pursuant to this title that have not been published
in final form by December 1 prior to the start of the award
year shall not become effective until the beginning of the
second award year after such December 1 date.''.
(b) Conforming Amendments.--
(1) Section 482(a)(1) of the Act is amended by striking
``sections 411E and'' each place it appears in subparagraphs
(B) and (C) and inserting ``section''.
(2) Section 482(b) of the Act is amended by striking
``subpart 2'' and inserting ``subpart 3''.
SEC. 483. FORMS AND REGULATIONS.
(a) Forms and Processing.--Section 483(a) of the Act is
amended--
(1) in paragraph (1)--
(A) by striking ``subpart 3'' in the first sentence and
inserting ``subpart 4''; and
(B) by striking out the third and fourth sentences and
inserting the following sentences: ``The common financial
reporting form prescribed by the Secretary shall be produced,
distributed, and processed by the Secretary and no parent or
student shall be charged a fee for the collection,
processing, or delivery of financial aid through the use of
such form. If an institution requires or encourages a student
to provide additional data through an approved contractor,
the charge to the student must be reasonable and based upon
the marginal cost of collecting, processing, and delivering
such data, adjusted for any payment received by the
contractor to produce, distribute, and process the common
financial reporting form prescribed by the Secretary. The
need and eligibility of a student for financial assistance
under parts A, C, and E of this title (other than under
subpart 4 of part A) and the need of a student for the
purpose of parts B and D of this title, may only be
determined by using the form developed by the Secretary
pursuant to this section. No student may receive assistance
under parts A, C, and E of this title (other than under
subpart 4 of part A) or have his or her need established for
the purpose of parts B and D of this title, except by use of
the form developed by the Secretary pursuant to this section.
Institutions and States may receive without charge the data
collected by the Secretary using the form developed pursuant
to this section for the purposes of determining need and
eligibility for institutional and State financial aid awards.
This application will satisfy the requirements of section
411(d) of this title.'';
(2) in paragraph (2)--
(A) by striking ``, to the extent practicable,'' in the
first sentence;
(B) by striking ``not less than 5'' in the first sentence;
and
(C) by striking the second sentence;
(3) by redesignating paragraph (5) as paragraph (6);
(4) by inserting after paragraph (4) the following new
paragraph:
``(5) No approved contractor shall enter into exclusive
arrangements with guarantors, lenders, secondary markets, or
institutions for the purpose of reselling or sharing of data
collected for the multiple data entry process. All data
collected for the multiple data entry process is the
exclusive property of the Secretary and may not be
transferred to a third party by an approved contractor
without the Secretary's expressed written approval.''; and
(5) by adding at the end thereof the following:
``(7) Individuals determined to have a zero family
contribution pursuant to section 479 shall not be required to
provide any financial data, except that which is necessary to
determine eligibility under that section.''.
(b) Additional Amendments.--Section 483 is further
amended--
(1) by striking subsections (d) and (f);
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(3) by inserting after subsection (a) the following new
subsection:
``(b) Streamlined Reapplication Process.--(1) The Secretary
shall, within 240 days after the date of enactment of the
Higher Education Amendments of 1992, develop a streamlined
process for those recipients who reapply for financial aid
funds under this title in the next succeeding academic year
subsequent to the initial year in which they apply.
[[Page 480]]
``(2) The Secretary shall develop appropriate mechanisms to
support reapplication.
``(3) The Secretary shall determine, in cooperation with
institutions, agencies, and organizations involved in student
financial assistance, the data elements that can be updated
from the previous academic year's application.
``(4) Nothing in this title shall be interpreted as
limiting the authority of the Secretary to reduce the number
of data elements required of reapplicants.''; and
(4) by amending subsection (e) to read as follows:
``(e) Toll-Free Information.--The Secretary shall contract
for, or establish, and publicize a toll-free telephone
number, including a telephone number accessible by
telecommunication devices for the deaf (TDD's), to provide
timely and accurate information to the general public and to
refer students with disabilities and their families to the
national clearinghouse on postsecondary education that is
authorized under section 633(c) of the Individuals with
Disabilities Education Act.''.
SEC. 484. STUDENT ELIGIBILITY.
(a) In General.--Section 484 of the Act is amended--
(1) in subsection (a)(1), by inserting ``(including a
program of study abroad approved for credit by the eligible
institution)'' after ``or other program''; and
(2) by striking paragraph (4) of subsection (a) and
inserting the following:
``(4) file with the institution of higher education which
the student intends to attend, or is attending (or in the
case of a loan or loan guarantee with the lender), a
document, which need not be notarized, but which shall
include--
``(A) a statement of educational purpose stating that the
money attributable to such grant, loan, or loan guarantee
will be used solely for expenses related to attendance or
continued attendance at such institution; and
``(B) such student's social security number;'';
(3) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(4) by adding at the end the following new paragraph:
``(6) in the case of a student enrolled in an undergraduate
program of study, not have previously received a
baccalaureate degree.''.
(b) Exceptions to Eligible Student Definition.--
(1) Amendments.--Section 484(b) of the Act is amended--
(A) by striking ``subpart 1'' each place it appears in
paragraph (1) and inserting ``subpart 2'';
(B) in paragraph (4)--
(i) by striking ``part B'' and inserting ``part B, D, or
E''; and
(ii) by inserting before the period at the end the
following: ``or work-study assistance under part C of this
title''; and
(C) by adding at the end the following new paragraph:
``(5) Notwithstanding any other provision of this
subsection, no incarcerated student is eligible to receive a
loan under this title.''.
(2) Effective date.--The amendments made by paragraph
(1)(B) of this subsection shall be effective on and after
December 1, 1987.
(c) Ability To Benefit.--Section 484(d) of the Act is
amended--
(1) by striking ``subparts 1, 2, and 3'' and inserting
``subparts 2, 3, and 4'';
(2) by striking ``shall'' and inserting ``shall (1)''; and
(3) by striking the period at the end thereof and inserting
the following: ``; or (2) be determined as having the ability
to benefit from the education or training in accordance with
such process as the State or an agency of such State shall
prescribe. Any such process described or approved by a State
for the purposes of this section shall be effective only upon
review and approval of the Secretary in accordance with
standards duly promulgated by the Secretary, which standards
shall take into account the effectiveness of such process in
enabling students without high school diplomas or the
equivalent thereof to benefit from the instruction offered by
institutions utilizing such process, and shall also take into
account the cultural diversity, economic circumstances, and
educational preparation of the populations served by the
institutions.''.
(d) Verification.--Section 484(f) of the Act is amended by
adding at the end the following new sentence: ``Nothing in
this subsection shall preclude the Secretary from verifying
all applications for aid through the use of any means
available, including through the exchange of information with
any other Federal agency.''.
(e) Loss of Eligibility.--Section 484(g) of the Act is
amended--
(1) by inserting ``(1)'' before ``No student'';
(2) by inserting ``, part D'' after ``part B'' each place
it appears;
(3) by inserting ``fraudulently'' before ``borrowed'' each
place it appears; and
(4) by adding at the end the following new paragraph:
``(2) If the institution determines that the student
inadvertently borrowed amounts in excess of such annual or
aggregate maximum loan limits, such institution shall allow
the student to repay any amount borrowed in excess of such
limits prior to certifying the student's eligibility for
further assistance under this title.''.
(f) Additional Requirements.--
(1) Amendment.--Section 484 of the Act is amended by adding
at the end thereof the following new subsections:
``(l) Verification of Social Security Number.--The
Secretary of Education, in cooperation with the Commissioner
of the Social Security Administration, shall verify any
social security number provided by a student to an eligible
institution under subsection (a)(4) and shall enforce the
following conditions:
``(1) An institution shall not deny, reduce, delay, or
terminate a student's eligibility for assistance under this
part because social security number verification is pending.
``(2) If there is a determination by the Secretary that the
social security number provided to an eligible institution by
a student is incorrect, the institution shall deny or
terminate the student's eligibility for any grant, loan, or
work assistance under this title until such time as the
student provides a correct social security number.
``(3) If there is a determination by the Secretary that the
social security number provided to an eligible institution by
a student is incorrect, and a correct social security number
cannot be provided by such student, and a loan has been
guaranteed for such student under part B of this title, the
institution shall notify and instruct the lender and guaranty
agency making and guaranteeing the loan to cease further
payments under the loan, but such guaranty shall not be
voided or otherwise nullified with respect to such payments
made before the date that the lender and the guaranty agency
receives such notice.
``(4) Nothing in this subsection shall permit the Secretary
to take any compliance, disallowance, penalty, or other
regulatory action against any institution of higher education
with respect to any error in a social security number, unless
such error was a result of fraud on the part of the
institution or any action against any student with respect to
any error in a social security number, unless such error was
a result of fraud on the part of the student.
``(m) Data Base Matching.--To enforce the Selective Service
registration provisions of section 1113 of Public Law 97-252,
the Secretary shall conduct data base matches with the
Selective Service, using common demographic data elements.
Appropriate confirmation, through an application output
document or through other means, of any person's registration
shall fulfill the requirement to file a separate statement of
compliance. Further, in the absence of a confirmation from
such data matches, an institution may also use data or
documents that support either the student's registration or
the absence of a registration requirement for the student, to
fulfill the requirement to file a separate statement of
compliance. The mechanism for reporting the resolution of
nonconfirmed matches shall be prescribed in regulations by
the Secretary.
``(n) Study Abroad.--Nothing in this Act shall be construed
to limit or otherwise prohibit access to approved study
abroad programs. Students who are otherwise eligible who are
engaged in a program of study abroad approved for academic
credit by the student's home institution are eligible for
assistance under this title. It is not necessary for such a
study abroad program to be required as part of the student's
degree program to qualify for such assistance.
``(o) Courses Offered Through Telecommunications Devices.--
(1) Students enrolled in courses of instruction at eligible
institutions of higher education that are offered in whole or
in part through telecommunications devices or mediums shall
not be considered to be enrolled in correspondence courses.
``(2) Students shall not have their eligibility to
participate in programs under this title restricted or
reduced if such restriction or reduction is based solely on
their enrollment in courses described in paragraph (1) of
this subsection.
``(3) For the purposes of this subsection, the term
`telecommunications devices or mediums' means the use of
television, audio, or computer transmission, including (but
not limited to) open broadcast, closed circuit, cable,
microwave, or satellite, audio conferencing, or computer
conferencing.
``(p) Suspension of Eligibility for Drug-Related
Offenses.--
``(1) In general.--An individual who, after qualifying
under this section as an eligible student, has been convicted
under any Federal or State law of the possession or sale of a
controlled substance shall not be eligible to receive any
grant, loan, or work assistance under this title during the
period beginning on the date of such conviction and ending
after the interval specified in the following table:
``If convicted of:
The possession of a controlled substance: Ineligibility period is:
1st conviction............................ 1 year
2nd conviction............................ 2 years
3rd conviction............................ indefinite
The sale of a controlled substance:
1st conviction............................ 2 years
2nd conviction............................ indefinite
``(2) Rehabilitation.--A student whose eligibility has been
suspended under paragraph (1) shall resume eligibility before
the end of the period determined under such paragraph if the
student satisfactorily completes a drug rehabilitation
program that complies with such criteria as the Secretary
shall prescribe for purposes of this paragraph.
``(3) First convictions.--A student whose eligibility has
been suspended under paragraph (1) and is convicted of his or
her first offense may resume eligibility before the end
[[Page 481]]
of the period determined under such paragraph if--
``(A) the student demonstrates that he or she has enrolled
or been accepted for enrollment in a drug rehabilitation
program that complies with such criteria as the Secretary
shall prescribe for purposes of this subsection; and
``(B) the student agrees that, if the student fails to
complete such program within the earlier of (i) 2 years after
the date the student enrolls in such program, or (ii) 3 years
after the date the student is accepted for enrollment in such
program, the student will reimburse the Federal Government
for the amount of grant or work assistance received pursuant
to this paragraph and for twice the amount of any loan
received pursuant to this paragraph, unless such failure is
excused by the Secretary for good cause.
``(4) Definitions.--As used in this subsection, the term
`controlled substance' has the meaning given in section
102(6) of the Controlled Substances Act (21 U.S.C. 802(6)).
``(5) Effective date.--This subsection shall be effective
upon publication by the Secretary in the Federal Register of
criteria prescribed under paragraph (2) of this
subsection.''.
(2) Clerical amendment.--Section 801(a) of the National
Literacy Act of 1991 is amended by striking ``the Act'' and
inserting ``the Higher Education Act of 1965''.
SEC. 485. STATUTE OF LIMITATIONS.
Section 484A of the Act is amended--
(1) in subsection (b)(2)--
(A) by striking ``part B of''; and
(B) by inserting ``an institution,'' before ``a guaranty
agency''; and
(2) by adding at the end the following new subsection:
``(c) Other Claims and Defenses.--With respect to any loan
made under part B of this title, a lender, except such loans
where the lender is an eligible institution or the
institution has an origination relationship with the lender,
a holder, a guaranty agency or the Secretary shall not be
subject to any claim or defense asserted by the borrower
which is attributable to an act or failure to act by an
educational institution attended by the borrower.''.
SEC. 486. INFORMATION.
(a) Refund Policies and Requirements.--Part G of title IV
of the Act is further amended by inserting after section 484A
the following new section:
``institutional refunds
``Sec. 484B. (a) Refund Policy Required.--Each institution
of higher education participating in a program under this
title shall have in effect a fair and equitable refund policy
under which the institution refunds unearned tuition, fees,
room and board, and other charges to a student who received
grant, loan, or work assistance under this title, or whose
parent received a loan made under section 428B on behalf of
the student, if the student--
``(1) does not register for the period of attendance for
which the assistance was intended; or
``(2) withdraws or otherwise fails to complete the period
of enrollment for which the assistance was provided.
``(b) Disclosure of Policy.--The institution shall provide
a written statement containing its refund policy, together
with examples of the application of this policy, to a
prospective student prior to the student's enrollment and
make its refund policy known to currently enrolled students.
The institution shall include in its statement the procedures
that a student must follow to obtain a refund, but whether or
not the student follows those procedures, the institution
shall, in accordance with subsection (e), pay to the lender
the portion of a refund allocable to the student's loans
made, insured, or guaranteed under section 427, 428, 428A, or
428B, and return the portion of the refund allocable to
another program under title IV of the Act to the appropriate
account for that program as stated in section 485(a)(1)(F).
If the institution changes its refund policy, it shall ensure
that all students are made aware of the new policy.
``(c) Determinations.--The institution's refund policy
shall be considered to be fair and equitable for purposes of
this section if that policy provides for a refund in an
amount of at least the largest of the amounts provided
under--
``(1) the requirements of applicable State law;
``(2) the specific refund requirements established by the
institution's nationally recognized accrediting agency and
approved by the Secretary;
``(3) if no such standards exist, the specific refund
policy standards set by another association of institutions
of postsecondary education and approved by the Secretary; or
``(4) the pro rata refund calculation described in
subsection (d), except that this paragraph will not apply to
the institution's refund policy for any student whose date of
withdrawal from the institution is after the 75 percent point
(in time) in the period of enrollment for which the student
has been charged.
``(d) Definitions.--(1) As used in this section, the term
`pro rata refund' means a refund by the institution of not
less than that portion of the tuition, fees, room and board,
and other charges assessed the student by the institution
equal to the portion of the period of enrollment for which
the student has been charged that remains on the last
recorded day of attendance by the student, rounded downward
to the nearest 10 percent of that period, less any unpaid
charges owned by the student for the period of enrollment for
which the student has been charged, and less a reasonable
administrative fee not to exceed the lesser of 5 percent of
the tuition, fees, room and board, and other charges assessed
the student, or $100.
``(2) For purposes of paragraph (1), `the portion of the
period of enrollment for which the student has been charged
that remains', shall be determined--
``(A) in the case of a program that is measured in credit
hours, by dividing the total number of weeks comprising the
period of enrollment for which the student has been charged
into the number of weeks remaining in that period as of the
last recorded day of attendance by the student;
``(B) in the case of a program that is measured in clock
hours, by dividing the total number of clock hours comprising
the period of enrollment for which the student has been
charged into the number of clock hours remaining to be
completed by the student in that period as of the last
recorded day of attendance by the student; and
``(C) in the case of a correspondence program, by dividing
the total number of lessons comprising the period of
enrollment for which the student has been charged into the
total number of such lessons not submitted by the student.''.
(b) Information Dissemination Activities.--Section
485(a)(1) of the Act (20 U.S.C. 1092(a)(1)) is amended--
(1) in subparagraph (F)--
(A) by inserting ``, as determined under section 484B,''
after ``of the institution'';
(B) by inserting before the semicolon at the end the
following: ``, which refunds shall be credited first to
outstanding balances on loans under part B of this title,
second to loans under parts D and E of this title, and third
to other student assistance provided under this title''.
(2) by striking ``and'' at the end of subparagraph (K);
(3) by striking the period at the end of subparagraph (L)
(as added by section 1 of Public Law 101-542) and inserting a
semicolon;
(4) by redesignating subparagraph (L) (as added by section
201 of Public Law 101-610) as subparagraph (M);
(5) by striking the period at the end of subparagraph (M)
(as redesignated by paragraph (4)) and inserting a semicolon
and ``and''; and
(6) by adding at the end thereof the following new
subparagraph:
``(N) that enrollment in a program of study abroad approved
for credit by the home institution may be considered
enrollment in the home institution for purposes of applying
for Federal student financial assistance.''.
(c) Exit Counseling.--Section 485(b) of the Act is amended
to read as follows:
``(b) Exit Counseling for Borrowers.--(1) Each eligible
institution shall, through financial aid officers or
otherwise, make available counseling to borrowers
(individually or in groups) of loans which are made, insured,
or guaranteed under part B (other than loans made pursuant to
section 428B) of this title or made under parts D or E of
this title prior to the completion of the course of study for
which the borrower enrolled at the institution or at the time
of departure from such institution. The counseling required
by this subsection shall include--
``(A) the average anticipated monthly repayments, a review
of the repayment option available, together with such debt
and management strategies as the institution determines are
designed to facilitate the repayment of such indebtedness;
and
``(B) the terms and conditions under which the student may
obtain partial cancellation or defer repayment of the
principal and interest pursuant to sections 428(b),
464(c)(2), and 465.
``(2)(A) Each eligible institution shall require that the
borrower of a loan made under part B, part D, or part E
submit to the institution, during the exit counseling
required by this subsection, the borrower's expected
permanent address after leaving the institution, regardless
of the reason for leaving; the name and address of the
borrower's expected employer after leaving the institution;
and the address of the borrower's next of kin.
``(B) Exit counseling shall include a review of the
institutions records relating the borrowers name, social
security number, and driver's license number. In any case
where incomplete or obsolete information is identified, the
institution shall collect corrected or complete information.
``(C) The institution shall, within 60 days after the
interview, forward the information collected in subparagraphs
(A) and (B) to the lender and the guaranty agency indicated
on the borrower's student aid records.''.
(d) Campus Security Policy.--
(1) Statistics.--Section 485(f)(1)(F) of the Act is amended
to read as follows:
``(F) Statistics concerning the occurrence on campus,
during the most recent calendar year, and during the 2
preceding calendar years for which data are available, of the
following criminal offenses reported to campus security
authorities or local police agencies:
``(i) murder;
``(ii) sex offenses, forcible or nonforcible;
``(iii) robbery;
``(iv) aggravated assault;
``(v) burglary; and
``(vi) motor vehicle theft.''.
(2) Policy development.--Section 485(f) of the Act is
amended by adding at the end the following new paragraph:
``(7)(A) Each institution of higher education participating
in any program under this title shall develop and distribute
as part of the report described in paragraph (1) a statement
of policy regarding--
[[Page 482]]
``(i) such institution's campus sexual assault programs
which shall be aimed at prevention of sex offenses; and
``(ii) the procedures followed once a sex offense has
occurred.
``(B) The policy described in subparagraph (A) shall
address the following areas:
``(i) Education programs to promote the awareness of rape,
acquaintance rape, and other sex offenses, and possible
sanctions to be imposed following the final determination of
an on-campus disciplinary procedure.
``(ii) Procedures students should follow if a sex offense
occurs, including who should be contacted, the importance of
preserving evidence as may be necessary to the proof of
criminal sexual assault, and to whom the alleged offense
should be reported.
``(iii) Procedures for on-campus disciplinary action in
cases of alleged sexual assault which shall include--
``(I) a clear statement that the accuser and the accused
are entitled to the same opportunities to have others present
during a campus disciplinary proceeding; and
``(II) a clear statement that both the accuser and the
accused shall be informed of the outcome of any campus
disciplinary proceeding brought alleging a sexual assault.
``(iv) Counseling students on their options to notify
proper law enforcement authorities, both on-campus and local
police, and the option to be assisted by campus authorities
in notifying such authorities, if the student so chooses.
``(v) Notification of students of existing counseling,
mental health or student services for victims of sexual
assault, both on campus and in the community.
``(vi) Notification of students of options for and
available assistance in changing academic and living
situations subsequent to an alleged sexual assault incident,
if so requested by the victim and if they are reasonably
available.
``(C) Nothing in this paragraph shall be construed to
confer a private right of action upon any person to enforce
the provisions of this paragraph.''.
(4) Effective date provision.--The amendment made by this
subsection to subparagraph (F)(ii) of section 485(f)(1) of
the Act shall be effective with respect to reports made
pursuant to such section on or after September 1, 1993. The
statistics required by subparagraph (F) of such section
shall--
(A) in the report required on September 1, 1992, include
statistics concerning the occurrence on campus of offenses
during the period from August 1, 1991, to July 31, 1992;
(B) in the report required on September 1, 1993, include
statistics concerning the occurrence on campus of offenses
during (i) the period from August 1, 1991, to December 31,
1991, and (ii) the calendar year 1992;
(C) in the report required on September 1, 1994, include
statistics concerning the occurrence on campus of offenses
during (i) the period from August 1, 1991, to December 31,
1991, and (ii) the calendar years 1992 and 1993; and
(D) in the report required on September 1 of 1995 and each
succeeding year, include statistics concerning the occurrence
on campus of offenses during the two calendar years preceding
the year in which the report is made.
(e) Use of Common Identifiers; Integration of Systems.--
Section 485B of the Act is amended by adding at the end the
following new subsections:
``(e) Common Identifiers.--The Secretary shall, not later
than July 1, 1993--
``(1) revise the codes used to identify institutions and
students in the student loan data system authorized by this
section to make such codes consistent with the codes used in
each database used by the Department of Education that
contains information of participation in programs under this
title; and
``(2) modify the design or operation of the system
authorized by this section to ensure that data relating to
any institution is readily accessible and can be used in a
form compatible with the integrated postsecondary education
data system (IPEDS).
``(f) Integration of Databases.--The Secretary shall
integrate the National Student Loan Data System with the Pell
Grant applicant and recipient databases as of January 1,
1994, and any other databases containing information on
participation in programs under this title.''.
SEC. 487. STUDENT LOAN DATA SYSTEM.
Part G of title IV of the Act is amended by inserting after
section 485B the following new section:
``student loan data system
``Sec. 485C. (a) System Required.--The Secretary shall
established a centralized data system for use by schools,
borrowers, holders, and guarantors in the confirmation of
borrower status, identification of the current holder and
servicer of a loan, and confirmation of internship and
residency status. Such system shall, at a minimum, contain
information for all loans under part B transferred from one
eligible lender to another, or serviced by a third party on
behalf of an eligible lender, or originated with the proceeds
of tax-exempt funds.
``(b) Information in System.--The information contained in
such data system shall be deemed reliable for all program
purposes relating to the conduct of loan servicing, including
but not limited to, compliance with due diligence and claim
filing requirements.
``(c) Deadlines.--The Secretary shall--
``(1) within 6 months of the date of enactment of this
section, submit a plan to the Committee on Labor and Human
Resources of the Senate and the Committee on Education and
Labor of the House for the establishment of such a data
system,
``(2) implement such a data system within 2 years of the
date of enactment.
``(d) Restricted Access.--Notwithstanding the provisions of
section 552(a) of title 5, United States Code, relating to
freedom of information, access to information in the data
system established and maintained pursuant to subsection (a)
shall be restricted to individuals and entities specifically
authorized by the Secretary to have such access.''.
SEC. 488. TRAINING IN FINANCIAL AID AND STUDENT SUPPORT
SERVICES.
Section 486 of the Act is amended to read as follows:
``training in financial aid and student support services
``Sec. 486. (a) Program Authority.--The Secretary is
authorized to provide grants to appropriate nonprofit private
organizations or combinations of such organizations to
provide training for student financial aid administrators and
TRIO personnel, at all levels of experience, who provide
student financial aid services or TRIO support programs.
``(b) Use of Funds.--Financial assistance under this
section may be used for, but is not limited to--
``(1) the operation of short-term training institutes and
special training programs for student financial aid
administrators or TRIO personnel designed to--
``(A) improve the professional management skills of
participants in such institutes and programs;
``(B) improve the delivery of student services;
``(C) improve students' or prospective students'
information on the availability and operation of student
financial assistance programs;
``(D) improve the understanding and knowledge of the
participants concerning the student financial assistance
programs' legislative and regulatory requirements and changes
in legislation and regulations; and
``(2) the development of appropriate materials.
``(c) Limitations.--Grants authorized under this section
shall be--
``(1) limited to not less than $1,000,000 for single-year
grants;
``(2) limited to not less than $1,000,000 per year for
multiple-year grants;
``(3) limited to a maximum of 3 years for multiple-year
grants; and
``(4) may be renewed at the discretion of the Secretary.
``(d) Authorization of Appropriations and Use of Funds.--In
addition to the sums provided pursuant to section 434, there
are authorized to be appropriated $5,000,000 for fiscal year
1993 such sums as may be necessary for each of the 4
succeeding fiscal years to carry out the provisions of this
section.''.
SEC. 489. PROGRAM PARTICIPATION AGREEMENTS.
(a) State Licensing Requirements Disclosure.--Section
487(a)(8) of the Act is amended--
(1) by striking ``at or before the time of application,''
and inserting ``at or before the time of application (A)'';
and
(2) by inserting before the period at the end the
following: ``, and (B) relevant State licensing requirements
of the State in which such institution is located for any job
for which the course of instruction is designed for such
prospective students''.
(b) Additional Conditions.--Section 487(a) of the Act is
amended by adding at the end the following new paragraphs:
``(13) The institution will not provide any commission,
bonus, or other incentive payment based directly or
indirectly on success in securing enrollments or financial
aid to any persons or entities engaged in any student
recruiting or admission activities or in making decisions
regarding the award of student financial assistance.
``(14) The institution acknowledges the authority of the
Secretary, guaranty agencies, lenders, accrediting agencies,
the Secretary of Veterans Affairs, and State review agencies
under section 495 to share with each other any information
pertaining to the institution's eligibility to participate in
programs under this title or any information on fraud and
abuse.
``(15)(A) The institution will not employ an individual in
a capacity that involves the administration of programs under
this title, or the receipt of program funds under this title,
who has been convicted of, or has pled nolo contendere or
guilty to, a crime involving the acquisition, use, or
expenditure of funds under this title, or has been judicially
determined to have committed fraud involving funds under this
title or contract with an institution or third party servicer
that has been terminated under section 432 involving the
acquisition, use, or expenditure of funds under this title,
or who has been judicially determined to have committed fraud
involving funds under this title.
``(B) The institution will not use any individual, agency,
or organization that has been, or whose officers or employees
have been--
``(i) convicted of, or pled nolo contendere or guilty to, a
crime involving the acquisition, use, or expenditure of funds
under this title; or
``(ii) judicially determined to have committed fraud
involving funds under this title.
``(16)(A) The institution, in order to participate as an
eligible institution under part B, will develop a Default
Management Plan for approval by the Secretary as part of its
initial application for certification as an eli-
[[Page 483]]
gible institution and will implement such Plan for two years
thereafter.
``(B) Any institution of higher education which changes
ownership and any eligible institution which changes its
status as a parent or subordinate institution shall, in order
to participate as an eligible institution under part B,
develop a Default Management Plan for approval by the
Secretary and implement such Plan for two years after its
change of ownership or status.
``(17) The institution will not deny any form of Federal
financial aid to any student who meets the eligibility
requirements of this Act on the grounds that the student is
participating in a program of study abroad approved for
credit by the institution.
``(18) The institution will complete surveys conducted as a
part of the Integrated Postsecondary Education Data System
(IPEDS) or any other Federal postsecondary institution data
collection effort, as designated by the Secretary, in a
timely manner and to the satisfaction of the Secretary.
``(19) The institution will collect and transmit to the
Secretary information on students participating in programs
under subpart 2 of part A and part C of this title consistent
with data collected by the Secretary concerning Pell Grant
applicants and recipients, and will report this information
to the Secretary annually, in a manner specified by the
Secretary, to the satisfaction of the Secretary.
``(20)(A) With respect to any institution that offers
athletically related student aid, the institution will--
``(i) cause an annual compilation, independently audited
not less often than every 3 years, to be prepared within 6
months after the end of its fiscal year, of--
``(I) the total revenues, and the revenues from football,
men's basketball, women's basketball, all other men's sports
combined, and all other women's sports combined, derived by
the institution from its intercollegiate athletics
activities;
``(II) the total expenses, and the expenses attributable to
football, men's basketball, women's basketball, all other
men's sports combined and all other women's sports combined,
made by the institution for its intercollegiate athletics
activities; and
``(III) the total revenues and operating expenses of the
institution; and
``(ii) make the reports on such compilations and, where
allowable by State law, the audits available for inspection
by the Secretary and the public.
``(B) For the purpose of subparagraph (A)--
``(i) revenues from intercollegiate athletics activities
allocable to a sport shall include without limitation gate
receipts, broadcast revenues, appearance guarantees and
options, concessions and advertising, but revenues such as
student activities fees or alumni contributions not so
allocable shall be included in the calculation of total
revenues only; and
``(ii) expenses for intercollegiate athletics activities
allocable to a sport shall include without limitation grants-
in-aid, salaries, travel, equipment, and supplies, but
expenses such as general and administrative overhead not so
allocable shall be included in the calculation of total
expenses only.
``(21) The institution will not impose any penalty,
including the assessment of late fees, the denial of access
to classes, libraries, or other institutional facilities, or
the requirement that the student borrow additional funds, on
any student because of the student's inability to meet his or
her financial obligations to the institution as a result of
the delayed disbursement of the proceeds of a loan made under
this title due to compliance with the provisions of this
title, or delays attributable to the institution.''.
(c) Hearings.--Section 487 of the Act is amended--
(1) in subsection (b)(2), by striking out ``on the
record''; and
(2) in subsection (c)--
(A) in the matter preceding subparagraph (A) of paragraph
(1), by striking ``is authorized to'' and inserting
``shall'';
(B) in paragraph (1)(D), by striking out ``on the record,''
and inserting in lieu thereof a comma;
(C) in paragraph (1)(F), by striking out ``on the record'';
and
(D) in paragraph (2)--
(i) in subparagraph (A), by striking out ``on the record,''
and inserting in lieu thereof a comma; and
(ii) in subparagraph (B)(i), by striking out ``on the
record,'' and inserting in lieu thereof a comma.
(d) Audits; Availability of Audit Information.--Section
487(c)(1)(A)(i) of the Act is amended--
(1) by striking ``a financial and compliance audit of an
eligible institution,'' and inserting ``a financial audit of
an eligible institution with regard to the financial
condition of the institution in its entirety, and a
compliance audit of such institution'';
(2) by striking ``at least once every 2 years'' and
inserting ``on at least an annual basis''; and
(3) by inserting ``and shall be available to cognizant
guaranty agencies, eligible lenders, State agencies
(including State review agencies), and the agencies referred
to in section 495'' after ``submitted to the Secretary''.
(e) Information.--Section 487(c) of the Act is amended--
(1) in paragraph (1), by redesignating subparagraphs (C)
through (G) as subparagraphs (E) through (I), respectively;
(2) by inserting after subparagraph (B) of such paragraph
the following new subparagraphs:
``(C)(i) except as provided in clause (ii), a compliance
audit of a third party servicer, with regard to any contract
with an eligible institution, guaranty agency, or lender for
administering or servicing any aspect of the student
assistance programs under this title, at least once every
year and covering the period since the most recent audit,
conducted by a qualified, independent organization or person
in accordance with standards established by the Comptroller
General for the audit of governmental organizations,
programs, and functions, and as prescribed in regulations of
the Secretary, the results of which shall be submitted to the
Secretary; or
``(ii) with regard to third party servicer, which is
audited under chapter 75 of title 31, United States Code,
deeming such audit to satisfy the requirements of clause (i)
for the period covered by such audit;
``(D)(i) a compliance audit of a secondary market with
regard to its transactions involving, and its servicing and
collection of, loans made under this title, at least once a
year and covering the period since the most recent audit,
conducted by a qualified, independent organization or person
in accordance with standards established by the Comptroller
General for the audit of governmental organizations,
programs, and functions, and as prescribed in regulations of
the Secretary, the results of which shall be submitted to the
Secretary; or
``(ii) with regard to a secondary market that is audited
under chapter 75 of title 31, United States Code, such audit
shall be deemed to satisfy the requirements of clause (i) for
the period covered by the audit;'';
(3) in subparagraph (H) (as redesignated) of such
paragraph, by striking out ``an individual or an
organization'' and inserting in lieu thereof ``a third party
servicer'';
(4) in subparagraph (I) (as redesignated) of such
paragraph, by striking out ``an individual or an
organization'' and inserting in lieu thereof ``a third party
servicer'';
(5) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(6) by inserting immediately after paragraph (1) the
following new paragraph:
``(2) If an individual who, or entity that, exercises
substantial control, as determined by the Secretary in
accordance with section 490A(b), over one or more
institutions participating in any program under this title,
or, for purposes of paragraphs (1) (H) and (I), over one or
more organizations that contract with an institution to
administer any aspect of the institution's student assistance
program under this title, is determined to have committed one
or more violations of the requirements of any program under
this title, or has been suspended or debarred in accordance
with the regulations of the Secretary, the Secretary may use
such determination, suspension, or debarment as the basis for
imposing an emergency action on, or limiting, suspending, or
terminating, in a single proceeding, the participation of any
or all institutions under the substantial control of that
individual or entity.''; and
(7) by adding at the end the following new paragraph:
``(5) The Secretary is authorized to provide any
information collected as a result of audits conducted under
this section, together with audit information collected by
guaranty agencies, to any Federal or State agency having
responsibilities with respect to student financial
assistance, including those referred to in subsection (a)(14)
of this section.''.
(f) Financial Responsibility Standards.--Section 487(c) of
the Act is further amended by adding at the end the following
new paragraph:
``(6)(A) For the purpose of paragraph (1)(B) of this
subsection, the Secretary shall consider an institution to be
financially responsible if it is able to--
``(i) provide the services described in its official
publications and statements;
``(ii) provide the administrative resources necessary to
comply with the requirements of this title; and
``(iii) meet all of its financial obligations, including
(but not limited to) refunds of institutional charges and
repayments to the Secretary for liabilities and debts
incurred in programs administered by the Secretary.
``(B) Notwithstanding subparagraph (A), an institution
shall provide the Secretary with satisfactory evidence of its
financial responsibility if, under the bases of accounting
prescribed by regulation by the Secretary, the institution--
``(i) has had operating losses over its 2 most recent
fiscal years;
``(ii) had, for its most recent fiscal year, a deficit net
worth (the institution's liabilities exceed its assets);
``(iii) had, at the end of its most recent fiscal year, a
ratio of current assets to current liabilities of less than
one-to-one; or
``(iv) had its unrestricted current fund or operating fund
reflect sustained material deficits over its 2 most recent
fiscal years.
``(C) The Secretary may determine an institution to be
financially responsible, notwithstanding the institution's
failure to meet the criteria under subparagraphs (A) and (B),
if--
``(i) such institution submits to the Secretary third-party
financial guarantees, such as performance bonds or letters of
credit payable to the Secretary, which third-party financial
guarantees shall equal not less than one-half of the annual
potential liabilities of such institution to the Secretary
for funds under this title and to students for refunds of
institutional charges, including
[[Page 484]]
funds under this title, including loan obligations discharged
to students pursuant to section 437;
``(ii) such institution has its liabilities backed by the
full faith and credit of a State, or its equivalent;
``(iii) such institution establishes to the satisfaction of
the Secretary, with the support of a report of an independent
certified public accountant prepared under generally accepted
accounting principles, that the institution is a going
concern capable of meeting all of its financial obligations,
including (but not limited to) refunds of institutional
charges and repayments to the Secretary for liabilities and
debts incurred in programs administered by the Secretary; or
``(iv) such institution has met standards of financial
responsibility, prescribed by the Secretary by regulation,
that indicate a level of financial strength not less than
those required in subparagraph (B).
``(D) The determination as to whether an institution has
met the standards of financial responsibility provided for in
subparagraphs (B) and (C)(iii) shall be based on an annual
audited and certified financial statement of the institution,
conducted by a qualified independent organization or person
in accordance with standards established by the American
Institute of Certified Public Accountants, that is submitted
to the Secretary.''.
(g) Audit Refunds.--Section 487(c) of the Act is further
amended by adding at the end the following new paragraph:
``(7) Effective with respect to any audit conducted under
this subsection after December 31, 1988, if, in the course of
conducting any such audit, the personnel of the Department of
Education discover, or are informed of, grants or other
assistance provided by an institution in accordance with this
title for which the institution has not received funds
appropriated under this title (in the amount necessary to
provide such assistance), including funds for which
reimbursement was not requested prior to such discovery or
information, such institution shall be permitted to offset
that amount against any sums determined to be owed by the
institution pursuant to such audit, or to receive
reimbursement for that amount (if the institution does not
owe any such sums).''
(h) Conforming Amendments.--Section 487 of the Act is
amended--
(1) by striking ``subpart 3'' in subsection (a) and
inserting ``subpart 4''; and
(2) by striking ``435(a)'' in subsection (d) and inserting
``481''.
SEC. 490. QUALITY ASSURANCE; IDENTIFICATION NUMBERS.
Part G of title IV of the Act is amended by inserting after
section 487 the following new sections:
``quality assurance program
``Sec. 487A. (a) In General.--The Secretary is authorized
to select institutions for voluntary participation in a
Quality Assurance Program that provides participating
institutions with an alternative management approach through
which individual schools develop and implement their own
comprehensive systems to verify student financial aid
application data thereby enhancing program integrity within
the student aid delivery system. The Quality Assurance
Program authorized by this section shall be based on criteria
that include demonstrated institutional performance, as
determined by the Secretary, and shall take into
consideration current quality assurance goals, as determined
by the Secretary.
``(b) Exemption From Requirements.--The Secretary is
authorized to exempt any institution participating in the
Quality Assurance Program from any reporting or verification
requirements in this title, and may substitute such quality
assurance reporting as the Secretary deems necessary to
ensure accountability and compliance with the purposes of the
programs under this title.
``(c) Removal From the Program.--The Secretary is
authorized to determine--
``(1) when an institution that is unable to administer the
Quality Assurance Program must be removed from the program,
and
``(2) when institutions desiring to cease participation in
the program will be required to complete the current award
year under program requirements.
``(d) Experimental Sites.--(1) The Secretary is authorized
to select institutions for voluntary participation as
experimental sites to provide recommendations to the
Secretary on the impact and effectiveness of proposed
regulations or new management initiatives.
``(2) The Secretary is authorized to exempt any institution
participating as an experimental site from any requirements
in this title or in regulations that would bias experimental
results.
``(e) Definitions.--For purposes of this section, `current
award year' is defined as the award year during which the
participating institution indicates its intention to cease
participation.
``assignment of identification numbers
``Sec. 487B. The Secretary shall assign to each participant
(including institutions, lenders, and guaranty agencies) in
title IV programs, a single Department of Education
identification number to be used to identify its
participation in each of the title IV programs.''.
SEC. 491. INTER-PROGRAM TRANSFERS.
Section 488 of the Act is amended--
(1) by striking ``10 percent'' and inserting ``25
percent'';
(2) by striking ``section 413D or 442'' and inserting
``section 442 or 462''; and
(3) by inserting 2 new sentences after the first sentence,
as follows: ``Up to 25 percent of the allotment of an
eligible institution for a fiscal year under section 442 of
this Act, may be transferred to, and used for the purposes
of, the institution's allotment under section 413D within the
discretion of such institution in order to offer a package of
types of aid, including institutional and State aid, that
best fits the needs of each individual student. Nothing in
this section authorizes an institution to use funds allocated
under section 413D for any program or purpose other than the
purposes of section 413A.''.
SEC. 492. ADMINISTRATIVE EXPENSES.
(a) Amount of Payment.--Section 489(a) of the Act is
amended by striking the fourth sentence (relating to payments
with respect to section 447).
(b) Purpose of Payment.--Section 489(b) of the Act is
amended--
(1) by inserting ``(1)'' before ``The sums''; and
(2) by adding at the end the following new paragraph:
``(2) If the institution enrolls a significant number of
students who are (A) attending the institution less than full
time, (B) age 24 or older, (C) single parents, or (D)
independent students, the institution shall use a reasonable
proportion of the funds available under this section for
financial aid services during times and in places that will
most effectively accommodate the needs of such students.''.
(c) Conforming Amendment.--Section 489(a) is further
amended--
(1) by striking ``subpart 2'' each place it appears and
inserting ``subpart 3''; and
(2) by striking ``subpart 1'' each place it appears and
inserting ``subpart 2''.
SEC. 493. CRIMINAL PENALTIES; EXTENT OF LIABILITY.
(a) Criminal Penalties.--Section 490 of the Act is amended
to read as follows:
``criminal penalties
``Sec. 490. (a) In General.--Any person who knowingly and
willfully embezzles, misapplies, steals, or obtains by fraud,
false statement, or forgery any funds, assets, or property
provided or insured under this title, or attempts to so
embezzle, misapply, steal, or obtain such funds, assets, or
property, shall be fined not more than $20,000 or imprisoned
for not more than 5 years, or both; but if the amount so
embezzled, misapplied, stolen, or obtained by fraud, false
statement, or forgery does not exceed $200, the fine shall
not be more than $5,000 and imprisonment shall not exceed one
year, or both.
``(b) Assignment of Loans.--Any person who knowingly and
willfully makes any false statement, furnishes any false
information, or conceals any material information in
connection with the assignment of a loan which is made or
insured under this title, or attempts to so make any false
statement, furnish any false information, or conceal any
material information in connection with such assignment
shall, upon conviction thereof, be fined not more than
$10,000 or imprisoned not more than one year, or both.
``(c) Inducements To Lend or Assign.--Any person who
knowingly and willfully makes an unlawful payment to an
eligible lender under part B, or attempts to make such
unlawful payment, as an inducement to make, or to acquire by
assignment, a loan insured under that part shall, upon
conviction thereof, be fined not more than $10,000 or
imprisoned not more than one year, or both.
``(d) Obstruction of Justice.--Any person who knowingly and
willfully destroys or conceals any record relating to the
provision of assistance under this title or attempts to so
destroy or conceal, with intent to defraud the United States
or to prevent the United States from enforcing any right
obtained by subrogation under this part, shall upon
conviction thereof, be fined not more than $20,000 or
imprisoned not more than 5 years, or both.''.
(b) Extent of Liability.--Part G of title IV of the Act is
further amended by inserting immediately after section 490
the following new section:
``extent of liability
``Sec. 490A. (a) Financial Guarantees; Accuracy of Data.--
Notwithstanding any other provision of law, the Secretary is
authorized, to the extent he determines necessary, to
require--
``(1) financial guarantees from an institution
participating, or seeking to participate, in a program under
this title, or from 1 or more individuals who the Secretary
determines, in accordance with subsection (b), exercise
substantial control over such institution, or both, in an
amount determined by the Secretary to be sufficient to
satisfy the institution's potential liability to the Federal
Government, student assistance recipient, and other program
participants for funds under this title; and
``(2) the assumption of personal liability, by 1 or more
individuals who exercise substantial control over such
institution, as determined by the Secretary in accordance
with subsection (b), for financial losses to the Federal
Government, student assistance recipients, and other program
participants for funds under this title, and civil and
criminal monetary penalties authorized under this title.
``(b) Substantial Control.--(1) The Secretary may determine
that an individual exercises substantial control over 1 or
more institutions participating in a program under this title
if the Secretary determines that--
[[Page 485]]
``(A) the individual directly or indirectly controls a
substantial ownership interest in the institution;
``(B) the individual, either alone or together with other
individuals, represents, under a voting trust, power of
attorney, proxy, or similar agreement, 1 or more persons who
have, individually or in combination with the other persons
represented or the individual representing them, a
substantial ownership interest in the institution; or
``(C) the individual is a member of the board of directors,
the chief executive officer, or other executive officer of
the institution or of an entity that holds a substantial
ownership interest in the institution.
``(2) The Secretary may determine that an entity exercises
substantial control over 1 or more institutions participating
in a program under this title if the Secretary determines
that the entity directly or indirectly holds a substantial
ownership interest in the institution.
``(3) For purposes of this subsection, an ownership
interest is defined as a share of the legal or beneficial
ownership or control of, or a right to share in the proceeds
of the operation of, an institution or institution's parent
corporation. An ownership interest may include, but is not
limited to--
``(A) a sole proprietorship;
``(B) an interest as a tenant-in-common, joint tenant, or
tenant by the entireties;
``(C) a partnership; or
``(D) an interest in a trust.
``(4) For purposes of section 487(c)(1)(G), this section
shall also apply to individuals or organizations that
contract with an institution to administer any aspect of an
institution's student assistance program under this title.''.
SEC. 494. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
(a) Independent Control.--Section 491(b) of the Act is
amended by inserting after the first sentence the following:
``Notwithstanding Department of Education policies and
regulations, the Advisory Committee shall exert independent
control of its budget allocations and expenditures, personnel
decisions and processes, procurements, and other
administrative and management functions. The Advisory
Committee's administration and management shall be subject to
the usual and customary Federal audit procedures.''.
(b) Membership.--Section 491(c)(1) of the Act is amended--
(1) in subparagraph (A), by inserting ``, at least one of
whom shall be a campus financial aid administrator,'' after
``3 members'';
(2) in subparagraph (B), by inserting ``, at least one of
whom shall be a campus financial aid administrator,'' after
``3 members''; and
(3) in subparagraph (C), by inserting ``, at least one of
whom shall be a campus financial aid administrator,'' after
``5 members''.
(c) Functions.--Section 491(d) of the Act is amended--
(1) by striking ``and in assessing the impact of
legislative and administrative policy proposals'' in
paragraph (3);
(2) by redesignating paragraphs (4), (5), (6), and (7) as
paragraphs (5), (6), (7), and (8), respectively; and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) assess the impact of legislative and administrative
policy proposals;''.
(d) Availability of Funds.--Section 491(i) of the Act is
amended by striking ``$500,000'' and inserting ``$750,000''.
(e) Reauthorization.--Section 491 of the Act is amended by
striking subsection (j) and inserting in lieu thereof:
``(j) Term of the Committee.--Notwithstanding the sunset
and charter provisions of the Federal Advisory Committee Act
(5 U.S.C. App. I) or any other statute or regulation, the
Advisory Committee shall be reauthorized and its charter
shall be renewed for a period of 5 years, or until such time
as the Higher Education Act of 1965 is reauthorized or
rescinded.''.
(f) Student Loan Program Simplification.--Section 491 of
the Act is amended by inserting after subsection (j) the
following new subsection:
``(k) Guaranteed Student Loan Program Simplification
Study.--(1) The Advisory Committee shall conduct a thorough
study of means of simplifying all aspects of the Federal
Family Education Loan Program. In carrying out the study, the
Advisory Committee shall examine, at a minimum--
``(A) reduction of paperwork burdens experienced by
financial aid administrators resulting from the current
structure of the Federal Family Education Loan Program;
``(B) promotion of simplification and standardization of
forms, procedures, and all other aspects of guaranty agency
operations for the purpose of facilitating data exchanges
with such agencies (including the National Student Loan
Database) and facilitating Department of Education oversight;
``(C) simplification of the bank repayment process to
minimize borrower confusion, including encouragement of
single holder ownership of all of an individual's loans;
``(D) encouragement of efficient utilization of loan
programs to minimize multiple program borrowing in
postsecondary education; and
``(E) other proposals which are designed to reduce the
administrative burdens and paperwork required by students,
educational institutions, guaranty agencies, lenders,
secondary markets, and the Secretary submitted in response to
a general solicitation by the Advisory Committee.
``(2) The Advisory Committee shall consult with the
Committee on Education and Labor of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate in carrying out the study required by
this subsection.
``(3) The Advisory Committee shall, not later than 1 year
after the date of enactment of this Act, prepare and submit
to the Committee on Education and Labor of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate a report on the study required by
this subsection.''.
SEC. 495. PERFORMANCE BASED REGULATORY RELIEF.
Part G of title IV of the Act is amended by adding at the
end the following new section:
``performance based regulatory relief
``Sec. 493. (a) For institutions of higher education that
satisfy the criteria in subsection (b), the Secretary shall--
``(1) suspend the requirement of section 428G(b)(1);
``(2) consider the institution as having complied with the
regulations establishing the requirements for processing the
borrower's loan proceeds, counseling borrowers, making and
disbursing loans, and contact with the borrower, and any
related or successor regulations prescribed by the Secretary;
``(3) require that the minimum sample size, for the
purposes of regulations prescribed by the Secretary
establishing requirements for audits, and any related or
successor regulations and audits required by section 487(c),
shall be determined on the basis of the opinion rendered by
the auditing entity, without regard to any minimum sample
sizes established for the purpose of such audits by the
Secretary; and
``(4) notwithstanding section 484(f) of the Act, not
require the institution to verify the accuracy of the data
used to determine the eligibility for any program under this
title for more than 20 percent of the applicants in any award
year.
``(b) Performance Criteria.--In order to be eligible for
the provisions in subsection (a), the institution shall--
``(1) have participated in programs under this title for 5
consecutive years;
``(2)(A) have not been required to refund moneys to the
Secretary because of audits performed under section 487(c),
in the two most recent audits; or
``(B) if required to refund moneys to the Secretary because
of audits performed under section 487(c), the refunds may be
no more than 2 percent of the amount that the institution
received under this title for that year;
``(3) currently not be, and within the last 7 years not
have been, subject to any emergency action, any limitation,
suspension, or termination imposed by the Secretary or by any
guaranty agency;
``(4) have used 97 percent of the funds received under
subpart 3 of part A, part C, and part E in the 3 most recent
fiscal years;
``(5) for loans under part E, have a cohort default rate,
as defined in section 462(h), of not greater than 10 percent
for loans made under part E, for the most recent fiscal year;
``(6) have a cohort default rate, as defined in section
435(m), of not greater than 10 percent for the most recent
fiscal year; and
``(7) have submitted the application to determine an
institution's allocation or reallocation of funds under
subpart 3 of part A and parts C and E of this title (34 CFR
674.3, 34 CFR 675.3 and 34 CFR 676.3 and any related or
successor regulations), the fiscal operation report required
of institutions participating in the programs established by
subpart 3 of part A and parts C and E of this title (34 CFR
674.19(d)(3), 34 CFR 675.19(b)(3), 34 CFR 676.19(b)(5) and
any related or successor regulations), and audits (34 CFR
668.23 (c) and (d)) and any related or successor regulations
on or before the date on which they were due, unless the
Secretary waives this requirement due to unusual
circumstances.''.
SEC. 496. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
Part G of title IV of the Act is amended by inserting after
section 493 (as added by section 495 of this Act) the
following new section:
``regional meetings and negotiated rulemaking
``Sec. 493A. (a) In General.--(1) The Secretary shall
convene regional meetings to obtain public involvement in the
development of proposed regulations under this part. Such
meetings shall include individuals and representatives of
groups involved in student financial assistance programs,
such as students, institutions of higher education, guaranty
agencies, lenders, secondary markets, third party servicers,
guaranty agency servicers, and collection agencies.
``(2) During each meeting described in paragraph (1), the
Secretary shall provide for a comprehensive discussion and
exchange of information on a limited number of key issues
selected by the Secretary concerning implementation of this
title. The Secretary shall take into account information
received at such meetings in the development of proposed
regulations and shall publish a summary of such information
in the Federal Register together with such proposed
regulations.
``(b) Draft Regulations.--After holding regional meetings
and before publishing proposed regulations in the Federal
Register, the Secretary shall prepare draft regulations
implementing changes to this part pursuant to this Act and
submit regulations on a limited number of key issues to a
negotiated rulemaking process. The Secretary shall follow the
guidance provided in the Administra-
[[Page 486]]
tive Conference of the United States in Recommendation 82-4
and 85-5, `Procedures for Negotiating Proposed Regulations'
(1 CFR 305-82-4 and 85-5) and any successor recommendation,
regulation, or law. Participants in the negotiation process
shall be chosen by the Secretary from individuals nominated
by groups participating in the regional meetings,
representing the groups described in subsection (a)(1) and
shall include both Washington representatives of such groups
as well as industry participants. To the extent possible, the
Secretary shall select individuals reflecting the diversity
in the industry, representing both large and small
participants, as well as those serving local areas and
national markets. The negotiation process shall be conducted
in a timely manner in order that the final regulations may be
issued by the Secretary within the 240-day period required by
section 431(g) of the General Education Provisions Act.
``(c) Applicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act shall not apply to activities
carried out under this section.''.
PART H--PROGRAM INTEGRITY
SEC. 497. ESTABLISHMENT OF NEW PART H.
Title IV of the Act is amended by adding at the end the
following new part:
``PART H--PROGRAM INTEGRITY
``SEC. 494. STATE POSTSECONDARY REVIEW AGENCY PROGRAM.
``(a) Purpose.--It is the purpose of this section to
authorize the Secretary to enter into agreements that--
``(1) designate one State postsecondary review agency in
each State to be responsible for the conduct or coordination
of the review of institutions of higher education for the
purposes of determining eligibility under this title; and
``(2) provide Federal funds to each State postsecondary
review agency for performing the functions required by such
agreements with the Secretary.
``(b) Program Authority.--The Secretary shall, in
accordance with the provisions of this part, enter into
agreements with each of the States, to carry out the purposes
of this part. If any State declines to enter into an
agreement with the Secretary for the purposes of this part,
the provisions of this part which refer to the State, with
respect to such State, shall refer to the Secretary, who may
make appropriate arrangements with agencies or organizations
of demonstrated competence in reviewing institutions of
higher education.
``(c) Failure To Comply With Agreement.--If a State fails
to enter into an agreement under this section or fails to
meet the requirements of its agreement with the Secretary
under this part--
``(1) the Secretary--
``(A) may not certify for participation in any program
under this title any new institution (including branch
campuses) or any institution that has changed ownership,
pursuant to section 481; and
``(B) may grant only provisional certification for all
institutions in the State pursuant to section 481; and
``(2) the State will be ineligible to receive funds under
section 496 of this part, subpart 4 of part A of this title,
and chapter 2 of subpart 1 of part A of this title.
``SEC. 495. STATE POSTSECONDARY REVIEW AGENCY AGREEMENTS.
``(a) State Organization Structures.--(1) Each agreement
shall describe a State organizational structure responsible
for carrying out the review of institutions under this title.
Each such agency's or instrumentality's action in reviewing
and approving such institutions shall, for purposes of this
part, be considered to be the action of the State.
``(2) For the purposes of this part, the designation of a
State postsecondary review agency for the purpose of entering
into an agreement with the Secretary shall be in accordance
with the State law of each individual State with respect to
the authority to make legal agreements between the State and
the Federal Government.
``(3) Except as provided in paragraph (5), nothing in this
part shall be construed to authorize the Secretary to require
any State to adopt, as a condition for entering into an
agreement, a specific State organizational structure.
``(4) Except as provided in paragraph (5), nothing in this
part shall be construed--
``(A) as a limitation on the authority of any State to
adopt a State organization structure for postsecondary
education agencies, or programs, or institutions of higher
education as appropriate to the needs, traditions, and
circumstances of that State;
``(B) as a limitation on the authority of a State entering
into an agreement pursuant to this part to modify the State
organizational structure at any time subsequent to entering
into such agreement;
``(C) as a limitation on the authority of any State to
enter into an agreement as a member of a consortium of
States;
``(D) as an authorization for the Secretary to withhold
funds from any State or postsecondary institution on the
basis of compliance with a State's constitution or laws;
``(E) as an authorization for any State postsecondary
review agency to exercise planning, policy, coordinating,
supervisory, budgeting, or administrative powers over any
postsecondary institution; or
``(F) as a limitation on the use of State audits for the
purpose of compliance with applicable standards under section
497(d).
``(5) Notwithstanding the provisions of paragraphs (2),
(3), and (4) of this subsection, the Secretary may require
each State to designate an agency or instrumentality
responsible for the conduct or coordination of the review of
institutions under this title.
``(b) Contents of Agreements.--Agreements between each
State and the Secretary shall contain the following elements:
``(1) A designation of a single State postsecondary review
agency, which represents all entities of that State which are
responsible for--
``(A) granting State authorization to each institution of
higher education in that State for the purposes of this
title, and
``(B) ensuring that each institution of higher education in
that State remains in compliance with the standards developed
pursuant to section 497.
``(2) Assurances that the State will review institutions of
higher education for the purpose of determining eligibility
under this title on a schedule to coincide with the dates set
by the Secretary to certify or recertify such institutions of
higher education as provided in section 481.
``(3) Assurances that the appropriate State postsecondary
review agency will administer the program authorized by this
part and will keep such records and provide such information
to the Secretary as may be requested for fiscal audit and
program evaluation, consistent with the responsibilities of
the Secretary.
``(4) A description of the relationship between the State
postsecondary review agency designated for the purposes of
this part and (A) the agency or agencies designated for the
purposes of chapter 36 of title 38 of the United States Code,
(B) the State loan insurance program established under
section 428(b) of this title, and (C) the State grant agency
established under section 415C of this title.
``(5) A plan for performing the functions described in
section 497 of this part.
``(c) Federal Responsibility.--Notwithstanding any other
provision of law, no State shall be required to fulfill the
obligations of an agreement with the Secretary under this
part unless the Secretary reimburses that State for the
Federal costs, specified in section 496 of this part, for
performing the review functions required by such agreement
and the Secretary shall not enter into agreements under this
part unless the Congress appropriates the funds to pay those
Federal costs.
``SEC. 496. FEDERAL REIMBURSEMENT OF STATE POSTSECONDARY
REVIEW AGENCY COSTS.
``(a) Payments.--Subject to subsection (b), the Secretary
shall reimburse the States for the costs of performing the
functions required by agreements with the Secretary
authorized under this part. Such costs shall include expenses
for providing initial and continuing training to its own
personnel and other personnel in its State, including, but
not limited to, personnel at institutions of higher education
subject to approval, to serve the purposes of this part.
Reimbursement shall be provided for necessary activities
which supplement, but do not supplant, existing licensing or
review functions conducted by the State. The Secretary shall
also reimburse such agencies for work performed by their
subcontractors and consultants where such work has a direct
relationship to the requirements of agreements with the
Secretary.
``(b) Limitation on Payments.--Notwithstanding subsection
(a), no State shall receive for any fiscal year an amount
that exceeds an amount that bears the same ratio to the
amount appropriated under subsection (c) for such fiscal year
as the total amount received under this title by students
attending institutions of higher education in that State for
such fiscal year bears to the total amount received under
this title by all students for such fiscal year, based on the
most recent year for which such data are available.
``(c) Authorization of Appropriations.--For the purpose of
enabling the Secretary to make payments to States which have
made agreements with the Secretary under this part, there is
authorized to be appropriated for fiscal year 1993 and
succeeding fiscal years an amount not to exceed one percent
of the amount appropriated for such fiscal year for student
financial assistance programs under this title.
``SEC. 497. FUNCTIONS OF STATE REVIEW AGENCIES.
``(a) Initial Review.--The Secretary shall review all
institutions of higher education in a State which are
eligible or which desire to become eligible under this title
according to the criteria provided in subsection (b). The
Secretary shall report to the State those institutions of
higher education which meet one or more of the criteria
provided in subsection (b) and these institutions shall be
reviewed by the State pursuant to the standards provided in
subsection (d). The Secretary shall supply the State with a
copy of the institutional audits required pursuant to section
487(c) for the institutions which shall be reviewed by the
State. In addition to those institutions identified by the
Secretary, the State may review additional institutions which
meet one or more of the criteria provided in subsection (b),
based on more recent data available to the State, subject to
disapproval by the Secretary.
``(b) Review Criteria.--The criteria for the initial review
of institutions of higher education are as follows:
``(1) a cohort default rate as defined in section 435(m)
equal to or greater than 25 percent;
[[Page 487]]
``(2) a cohort default rate as defined in section 435(m)
equal to or greater than 20 percent and either--
``(A) more than two-thirds of its total undergraduates
enrolled on a half-time or more basis receive assistance
under this title (except subparts 4 and 6 of part A), or
``(B) two-thirds or more of the institution's education and
general expenditures are derived from funds provided to
students enrolled at the institution from the programs
established by this title (except subparts 4 and 6 of part A
and section 428B);
``(3) two-thirds or more of the institution's education and
general expenditures are derived from funds provided to
students enrolled at the institution pursuant to subpart 2 of
part A of this title;
``(4) a limitation, suspension, or termination action by
the Secretary against the institution pursuant to section 487
during the preceding 5 years;
``(5) an audit finding during the 2 most recent audits of
the institution's conduct of the programs established by this
title that resulted in the repayment by the institution of
amounts greater than 3.5 percent of the funds the institution
received from the programs established by this title for the
year;
``(6) a citation of the institution by the Secretary for
failure to submit audits required by this title in a timely
fashion;
``(7) a year-to-year fluctuation of more than 25 percent in
the amounts received by students in either Federal Pell
Grants, Federal Stafford Loans, or Federal Supplemental Loans
to students, which are not accounted for by changes in these
programs;
``(8) failure to meet financial responsibility standards
pursuant to subsection (c)(6)(B) of section 487;
``(9) a change of ownership of the institution that results
in a change of control which includes (but is not limited
to)--
``(A) the sale of the institution or the majority of its
assets;
``(B) the transfer of the controlling interest of stock of
the institution or its parent corporation;
``(C) the division of 1 or more institutions into 2 or more
institutions;
``(D) the transfer of the controlling interest of stock of
the institution to its parent corporation; or
``(E) the transfer of the liabilities of the institution to
its parent corporation;
``(10) initial participation in any of the programs
established pursuant to subparts 2 and 3 of part A, part B,
part C, part D, and part E of this title; and
``(11) a pattern of student complaints related to the
management or conduct of the programs established by this
title pursuant to subsection (k), which in the judgment of
the Secretary are sufficient to justify review of the
institution.
``(c) Use of Recent Data.--The criteria provided for in
subsection (b) shall be measured on the basis of the most
recent data available to the Secretary. Institutions may
request verification of the data used by the Secretary.
``(d) Review Standards.--Institutions which meet one or
more of the criteria in subsection (b) shall be reviewed by
the appropriate State agency or instrumentality in accordance
with published State standards, consistent with the
constitution and laws of the State, developed in consultation
with the institutions in the State, subject to disapproval by
the Secretary, for--
``(1) the quality and content of the institution's courses
or programs of instruction, training, or study in relation to
achieving the stated objectives for which the courses or
programs are offered, including the adequacy of the space,
equipment, instructional material, staff, and student support
services, including student orientation, counseling, and
advisement, for providing education or training that meets
the stated objectives for which the courses or programs are
offered;
``(2) the availability to students and prospective students
of catalogues, admissions requirements, course outlines,
schedules of tuition and fees and the rules and regulations
of the institution relating to students and their accuracy in
reflecting the courses and programs offered by the
institution;
``(3) assurance that the institution has a method to assess
a student's ability to succeed in the course of study for
which he or she has applied;
``(4) assurance that the institution maintains and enforces
standards relating to academic progress and maintains
adequate student records;
``(5) compliance by the institution with applicable laws
and regulations relating to insuring the safety and health of
all persons on the premises of the institution;
``(6) the financial and administrative capacity of the
institution at a specified scale of operations and the
maintenance of adequate financial and other information
necessary to determine the financial and administrative
capacity of the institution;
``(7) for institutions financially at risk, the adequacy of
provisions to provide for the instruction of students and to
provide for the retention and accessibility of academic and
financial aid records of students in the event the
institution closes;
``(8) if the stated objectives of the courses or programs
of the institution are to prepare students for employment,
the relationship of the tuition and fees to the remuneration
that can be reasonably expected by students who complete the
course or program and the relationship of the courses or
programs to providing useful employment in recognized
occupations in the State; and
``(9) the success of the program at the institution
including--
``(A) the rates of the institution's students program
completion and graduation, taking into account the length of
the program at the institution and the selectivity of the
institution's admissions policies;
``(B) the withdrawal rates of the institution's students;
``(C) the rates of placement of the institution's graduates
in occupations related to their course of study; and
``(D) where appropriate, the rate at which the
institution's graduates pass licensure examinations.
``(e) Substitutions Prohibited.--The appropriate State
postsecondary review agency may not substitute either (1)
accreditation by a private accrediting agency or body, or (2)
compliance audits performed by a State guaranty agency
established under section 428(b) of this title, for State
review of compliance with standards in subsection (d).
``(f) State Contracts.--If the appropriate State
postsecondary review agency contracts with a private agency
or body for assistance in performing State review agency
functions, such contract shall be provided for in an
agreement with the Secretary.
``(g) Prohibition on Unrelated Requirements.--
Notwithstanding any of the provisions of this part, the
Secretary shall not require a State to establish standards
that are unrelated to ensuring institutional or program
integrity or that violate the provisions of a State's
constitution or laws.
``(h) Differential Standards for Approval.--A State may
establish different standards of approval and frequency of
review for different classes of institutions of higher
education, as defined by its relevant State laws and
regulations. However, a State shall have a published standard
of approval for each subparagraph of subsection (d) for each
such class of institutions of higher education, unless the
agreement with the Secretary under this part specifically
exempts such classes of institutions as defined by the State.
``(i) Institutional Eligibility.--A State postsecondary
review agency may determine that an institution of higher
education shall not be eligible to participate in programs
under this title based on its own findings or the findings of
a Federal entity in accordance with the following procedures:
``(1) State findings.--If the appropriate State
postsecondary review agency finds that an institution of
higher education does not meet one or more of the standards
of subsection (d) of this section, such State postsecondary
review agency shall notify the Secretary of its findings and
the actions that such agency is taking, or has taken, in
response to such findings within a time period prescribed by
the Secretary by regulations. If a State postsecondary review
agency determines an institution of higher education shall
not be eligible for participation in programs under this
title, such State postsecondary review agency shall notify
the Secretary.
``(2) Secretary's findings.--If the Secretary or other
Federal entity takes, or plans to take, any action against
any institution of higher education (including any actions
taken under section 487), the Secretary shall notify the
appropriate State postsecondary review agency (or agencies,
in the case of multi-State institutions) of such action
within a time period prescribed in the Secretary's
regulations.
``(3) Procedural protections for disapproval.--The
Secretary shall, by regulation, prescribe minimum procedural
standards for the disapproval of institutions of higher
education by the appropriate State postsecondary review
agency or agencies for purposes of this title.
``(j) Limit on State Postsecondary Review Agency
Functions.--The functions of State postsecondary review
agency shall not include performing financial and compliance
audits as may be required under sections 428 or 487 of this
Act.
``(k) Consumer Complaints.--A State, in consultation with
the institutions of higher education in the State, shall
establish procedures for receiving and responding to consumer
complaints about institutions of higher education and shall
keep records of such complaints in order to determine their
frequency and nature for specific institutions of higher
education. The State shall make such records publicly
available.
``(l) Enforcement Mechanisms.--Nothing in this part shall
restrict the authority of the States to establish mechanisms
to enforce the standards established under subsection (d) or
require the States to establish specific mechanisms
recommended by the Secretary.''.
SEC. 497A. DEFINITIONS.
Section 481(a) of the Act is amended by inserting after
paragraph (4) the following new paragraph:
``(5) The term `institution of higher education' does not
include institutions of higher education that are removed
from eligibility for funds under this title as a result of a
review pursuant to part H of this title.''.
SEC. 497B. EFFECTIVE DATES.
The amendments made by this part shall take effect one year
after the date of enactment of this Act, except that, in the
case of any State whose legislature is not in session during
such one-year period, such amendments shall take effect two
years after such date of enactment.
PART I--CONFORMING AMENDMENTS
SEC. 499. CONFORMING AMENDMENTS.
(a) OBRA Amendment.--Section 3008 of the Omnibus Budget
Reconciliation Act of 1990 is
[[Page 488]]
amended by striking ``1996'' and inserting ``1997''.
(b) Higher Education Technical Amendments of 1991.--Section
3(c) of the Higher Education Technical Amendments of 1991 is
amended by striking ``November 15, 1992''.
PART J--AMENDMENTS TO RELATED PROGRAMS
SEC. 499A. EXCELLENCE IN MATHEMATICS, SCIENCE AND ENGINEERING
EDUCATION ACT OF 1990.
Section 601(b) of the Excellence in Mathematics, Science
and Engineering Education Act of 1990 is amended--
(1) by striking ``1992 and'' and inserting ``1992,''; and
(2) by striking ``1993'' and inserting ``1993, and such
sums as may be necessary for each of the 4 succeeding fiscal
years,''.
PART K--AMENDMENTS TO RELATED PROGRAMS
SEC. 499B. EXCELLENCE IN MATHEMATICS, SCIENCE AND ENGINEERING
EDUCATION ACT OF 1990.
Section 621(o) of the Excellence in Mathematics, Science
and Engineering Education Act of 1990 is amended by striking
``fiscal year 1991'' and inserting ``each of the fiscal years
1993 and 1994''.
PART L--AMENDMENTS TO RELATED PROGRAMS
SEC. 499C. EXCELLENCE IN MATHEMATICS, SCIENCE AND ENGINEERING
EDUCATION ACT OF 1990.
Section 621 of the Excellence in Mathematics, Science and
Engineering Education Act of 1990 is amended--
(1) in subsection (b), by amending paragraph (2) to read as
follows:
``(2) Function.--The Advisory Board shall develop an exam
for secondary students testing knowledge in science,
mathematics, and engineering, or shall select an exam from
among existing national exams, and shall annually administer
such exam.'';
(2) by striking subsections (d), (e), and (f);
(3) by redesignating subsection (c) as subsection (d);
(4) by inserting after subsection (b), the following new
subsection:
``(c) Results of Exam.--The Advisory Board shall annually
certify the top 10 scorers in each congressional district on
the exam developed or selected under subsection (b)(2), and
award to the top 2 scorers in each district a scholarship
under this section.'';
(5) in subsection (d)(1), as so redesignated by paragraph
(3) of this section, by striking ``subsection (n)'' and
inserting in lieu thereof ``subsection (l)'';
(6) in subsection (d)(2), as so redesignated by paragraph
(3) of this section, by striking ``subsection (h)'' and
inserting in lieu thereof ``subsection (f)'';
(7) in subsection (d)(3), as so redesignated by paragraph
(3) of this section--
(A) by striking ``subsection (h)'' and inserting in lieu
thereof ``subsection (f)''; and
(B) by inserting ``such additional'' after ``maximum of
3'';
(8) by redesignating subsections (g) through (o) as
subsections (e) through (m), respectively;
(9) in subsection (f)(2), as so redesignated by paragraph
(8) of this section, by striking ``subsection (f)'' and
inserting in lieu thereof ``subsection (d)(3)''; and
(10) in subsection (m), as so redesignated by paragraph (8)
of this section, by striking ``$2,200,000 for fiscal year
1991'' and inserting in lieu thereof ``$4,400,000 for fiscal
year 1993 and $8,800,000 for fiscal year 1994''.
TITLE V--EDUCATOR RECRUITMENT, RETENTION, AND DEVELOPMENT
SEC. 501. REVISION OF TITLE V.
(a) Amendment.--Title V of the Act is amended to read as
follows:
``TITLE V--EDUCATOR RECRUITMENT, RETENTION, AND DEVELOPMENT
``SEC. 501. STATEMENT OF FINDINGS AND PURPOSE.
``(a) Findings.--The Congress finds that--
``(1) teachers in the classroom are the men and women who
must play an integral role in leading our Nation's schools
into the 21st century;
``(2) we should encourage individuals to enter the
education profession so that our teaching force is
representative both of the diversity of our Nation and of the
tremendous talents and skills of our citizens;
``(3) the methods used to prepare prospective teachers and
the continuing education and support provided to practicing
teachers have a significant influence on the effectiveness of
classroom teachers;
``(4) the postsecondary education of education
professionals has not been linked to local, State and
national goals and standards;
``(5) the inservice and continuing professional development
of educators has not promoted systematic and sustained
improvement of the education system;
``(6) State educational agencies have not been funded and
staffed adequately to carry out a mission of supporting a
process to achieve local, State, or national goals and
standards;
``(7) in order to encourage more women and underrepresented
minorities to enter the fields of science and mathematics and
succeed in these fields, we must provide proper training for
existing mathematics and science teachers and recruit women
and underrepresented minorities as teachers in these fields;
``(8) educators must have the expertise and the support
that allow them to adapt to the changing environment in our
schools and to the evolving skills required of our schools'
graduates; and
``(9) the Federal Government plays an essential role in
providing support to educator training and professional
development that will enable teachers to be classroom leaders
and administrators to be school leaders at the forefront of
reforming our Nation's schools.
``(b) Purpose.--It is the purpose of this title--
``(1) to encourage academically qualified students to
become teachers through scholarship assistance;
``(2) to support the recruitment of talented individuals
into the teaching profession;
``(3) to provide assistance to schools of education in
institutions of higher education in order to reform teacher
education programs by encouraging new developments in teacher
preparation which provide for greater integration of subject
matter and pedagogical training and which prepare classroom
teachers to effectively meet changing noneducational
challenges in the schools;
``(4) to promote high quality child development and early
childhood education specialist training programs, including
preschool and early intervention services for infants and
toddlers with disabilities;
``(5) to provide assistance to our Nation's teaching force
for the continued improvement of their professional skills;
``(6) to assist individuals who are currently employed as
school paraprofessionals to obtain the education necessary in
order to become a licensed or certified teachers;
``(7) to promote partnerships between institutions of
higher education and local educational agencies for the
purpose of promoting the restructuring and renewal of
elementary and secondary schools and collegiate teacher
education programs;
``(8) to promote new learning within colleges of education
and State and local educational agencies that will cause
greater collaboration among such entities in order to achieve
common goals and standards through systemic improvement;
``(9) To provide scholarship assistance to encourage women
and minorities who are underrepresented in the fields of
science and mathematics to enter the teaching profession in
these fields; and
``(10) to improve the leadership and managerial skills of
elementary and secondary school administrators.
``SEC. 502. AUTHORIZATION OF APPROPRIATIONS.
``(a) State and Local Programs for Teacher Excellence.--For
part A there are authorized to be appropriated $400,000,000
for fiscal year 1993 and such sums as may be necessary for
the 4 succeeding fiscal years.
``(b) Teacher Scholarships and Fellowships.--
``(1) For subpart 1 of part B there are authorized to be
appropriated $25,000,000 for fiscal year 1993 and such sums
as may be necessary the 4 succeeding fiscal years.
``(2) For subpart 2 of part B there are authorized to be
appropriated $15,000,000 for fiscal year 1993, and such sums
as may be necessary for the 4 succeeding fiscal years.
``(c) National Programs.--
``(1) For subpart 1 of part C there are authorized to be
appropriated $15,000,000 for fiscal year 1993 and such sums
as may be necessary for the 4 succeeding fiscal years.
``(2) For subpart 2 of part C there are authorized to be
appropriated $20,000,000 for the period beginning on October
1, 1992 and ending on September 30, 1997.
``(3) For subpart 3 of part C there are authorized to be
appropriated $20,000,000 for fiscal year 1993 and such sums
as may be necessary for the 4 succeeding fiscal years.
``(4) For subpart 4 of part C there are authorized to be
appropriated $50,000,000 for fiscal year 1993 and such sums
as may be necessary for the 4 succeeding fiscal years.
``(5) For subpart 5 of part C there are authorized to be
appropriated $2,000,000 for fiscal year 1993 and such sums as
may be necessary for the 4 succeeding fiscal years.
``(6) For subpart 6 of part C there are authorized to be
appropriated $5,000,000 for fiscal year 1993 and such sums as
may be necessary for the 4 succeeding fiscal years.
``(7) For subpart 7 of part C there are authorized to be
appropriated $15,000,000 for fiscal year 1993.
``(8) For subpart 8 of part C there are authorized to be
appropriated $15,000,000 for fiscal year 1993 and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
``(9) For subpart 9 of part C, there are authorized to be
appropriated $20,000,000 for fiscal year 1993, and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
``(10) For subpart 10 of part C, there are authorized to be
appropriated $20,000,000 for fiscal year 1993, and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
``(11) For subpart 11 of part C there are authorized to be
appropriated $100,000,000 for fiscal year 1993 and such sums
as may be necessary for each of the 4 succeeding fiscal
years.
``(d) Part D.--
``(1) Critical language and area studies.--There are
authorized to be appropriated $15,000,000 for fiscal year
1993 and such sums as may be necessary for each of the 6
succeeding fiscal years to carry out the provisions of
subpart 1.
``(2) Foreign language and culture instructional
materials.--There are authorized to be appropriated
$4,000,000 for fiscal year 1993 and such sums as may be
necessary for each of the 6 succeeding fiscal years to carry
out the provisions of subpart 2.
[[Page 489]]
``PART A--STATE AND LOCAL PROGRAMS FOR TEACHER EXCELLENCE
``SEC. 511. AUTHORITY AND ALLOCATION OF FUNDS.
``(a) Purpose and Authority.--
``(1) Purpose.--It is the purpose of this part to provide
funds to State educational agencies, local educational
agencies and institutions of higher education in order to
update and improve the skills of classroom teachers,
including preschool and early childhood education specialists
and school administrators and to provide for a comprehensive
examination of State requirements for teacher preservice and
certification.
``(2) Program authorized.--The Secretary is authorized to
make grants to State educational agencies for the purposes of
enhancing and improving the quality of teaching, including
early childhood education, in each of the several States.
``(b) Allotment of Funds.--
``(1) In general.--The Secretary shall allot to each State
an amount which bears the same ratio to the amount of such
remainder as the school-aged population of that State bears
to the school-aged population of all States. In making
allotments under this part, the Secretary shall use the most
recent data available.
``(2) Territorial grants.--From 1 percent of the amount
appropriated under subsection (a) for this part, the
Secretary shall make grants to the Virgin Islands, Guam, the
Northern Mariana Islands, American Samoa, and Palau (until
the Compact of Free Association with Palau takes effect
pursuant to section 101(a) of Public Law 99-658).
``(3) Allocations from state allotments.--
``(A) From the sum allotted each year under paragraph (1),
the State education agency shall allocate not less than 50
percent to local educational agencies within such state
according to the relative enrollments in public schools
within the local educational agency for the purposes of
section 513, except that any local educational agency that
would receive a grant of less than $10,000 shall be required
to form a consortium with other local educational agencies.
In making allotments under this part, the State educational
agency shall use the most recent data available.
``(B) The State educational agency may reserve up to 25
percent of the funds for the purposes of section 514.
``(C) From the sum allotted each year under paragraph (1),
the State educational agency shall reserve not more than 25
percent to distribute to institutions of higher education for
the purposes of section 515.
``(D) The State educational agency may reserve no more than
3 percent of the funds allotted to the State for the purposes
of administering the program under this title.
``(c) State Distribution.--Notwithstanding subsection (b),
if the appropriation for this part for any fiscal year is
less than $250,000,000, the State shall distribute the funds
reserved for local educational agencies on a competitive
basis.
``(d) Definition of State.--For purposes of this
subsection--
``(1) the term `State' includes the several States, the
District of Columbia, and the Commonwealth of Puerto Rico;
and
``(2) the term `school-aged population' means the
populations aged 5 to 17, inclusive.
``SEC. 512. STATE APPLICATION.
``(a) In General.--Any State which desires to receive an
allotment under this part shall submit to the Secretary an
application which--
``(1) designates the State educational agency as the State
agency responsible for the administration and supervision of
programs assisted under this part;
``(2) provides for a process of active discussion and
consultation with a committee, convened by the chief State
school officer, which is broadly representative of the
educational interests within the State, including--
``(A) a representative nominated by each of the following:
``(i) the State teacher organizations;
``(ii) the organizations representing preschool and early
childhood education specialists;
``(iii) the State school administrators organization;
``(iv) the State parents organizations;
``(v) the State business organizations; and
``(vi) the State student organizations;
``(B) a representative from the State board of education;
``(C) a representative of faculty from departments, schools
or colleges of educations;
``(D) other representatives of institutions of higher
education including community colleges;
``(E) the State director of vocational education; and
``(F) the State director of special education;
``(3) describes the competitive process that the State will
use to distribute funds among local educational agencies
pursuant to section 511(c);
``(4) describes the process the State will use to conduct
the assessment required by section 514;
``(5) describes how the State will allocate funds among
activities permitted under section 514;
``(6) describes, if appropriate, the competitive process
that the State will use to select applicants to operate the
State Academies for Teachers, how Academy participants will
be selected, and how the State will monitor the
implementation of the Academies;
``(7) describes, if appropriate, the competitive process
that the State will use to select applicants to operate the
State Academies for School Leaders, how Academy participants
will be selected, and how the State will monitor the
implementation of the Academies;
``(8) describes the competitive process that the State will
use to distribute funds among institutions of higher
education pursuant to section 515;
``(9) describes a plan to promote learning among the State
educational agency staff in order to support and facilitate
systemic improvement of the State educational agency, schools
or colleges of education at institutions of higher education,
and local educational agencies; and
``(10) includes such other information and assurances as
the Secretary may require.
``(b) Functions of Committee.--The application required by
subsection (a) shall identify the procedures by which the
committee required by paragraph (2) of such subsection will
be engaged in--
``(1) ensuring that activities assisted under this part are
effective, coordinated with other State, local, and Federal
activities and programs, and meet the needs of the State for
improving the quality of teaching and teacher education
programs, including those programs concerned with preschool
education and the training of early childhood education
specialists and school leadership programs;
``(2) advising the State on criteria for awarding funds
under section 511(c), section 514(d), section 514(e), and
section 515; and
``(3) advising the State on criteria for approving local
educational agency applications under section 513(a).
``SEC. 513. LOCAL APPLICATION AND USE OF FUNDS.
``(a) Local Application.--Any local educational agency
which desires to receive an allotment under this part shall
submit to the State educational agency an application which--
``(1) describes the needs of such agency with respect to
inservice training programs for teachers and preschool and
early childhood education specialists, pursuant to the
assessment conducted under subsection (b)(2)(A), teacher
recruitment, business partnerships, and the provision of
other opportunities for teachers to improve their skills;
``(2) describes the process used to determine such needs,
including consultation with teachers, preschool and early
childhood specialists, principals, parents, representatives
from departments, schools or colleges of education, and
others in the community;
``(3) describes the activities such agency intends to
conduct with the funds provided under section 511(b)(3)(A)
consistent with the provisions of this section in order to
improve the quality of teaching within such agency;
``(4) describes the processes and methods used to promote
systematic improvement through continual learning in order to
achieve agreed upon local, State and National standards; and
``(5) any other information that the State educational
agency may reasonably require.
``(b) Local Uses of Funds.--
``(1) In general.--Local educational agencies receiving
funds under this part shall use such funds for the inservice
training of teachers and preschool and early childhood
education specialists and may use funds for--
``(A) development of programs to recruit individuals into
the teaching profession and the field of early childhood
education,
``(B) business partnerships, and
``(C) other purposes consistent with improving the quality
of teaching in the local educational agency, as approved by
the State educational agency.
``(2) Inservice training.--
``(A) In order to receive funds under this part, a local
educational agency or a consortium of local educational
agencies shall first assess the needs of such agency or
agencies for inservice training.
``(B) Funds expended for inservice training shall be used
for the cost of--
``(i) the expansion and improvement of inservice training
and retraining of teachers and other appropriate school
personnel, including vocational teachers, special education
teachers, and preschool teachers, consistent with the
assessment conducted under subparagraph (A);
``(ii) providing funds for grants projects for individual
teachers within the local educational agency to undertake
projects to improve their teaching ability or to improve the
instructional materials used in their classrooms;
``(iii) activities designed to address the effects of
chronic community violence on children, such as violence
counseling training for teachers and early childhood
specialists, and activities and training aimed at resolving
conflicts;
``(iv) activities designed to enhance the ability of
teachers to work with culturally diverse students;
``(v) activities designed to integrate academic and
vocational education;
``(vi) as appropriate, activities designed to assist
teacher participation in a Tech-Prep program under section
344(b) of the Carl D. Perkins Vocational and Applied
Technology Act, in order to develop the skills of such
teachers in activities such as organizational development
leadership and interdisciplinary curricula development; and
[[Page 490]]
``(vii) other activities consistent with the goals of this
part as approved by the State educational agency.
``(C) Such activities may be carried out through agreements
with institutions of higher education, nonprofit
organizations, public agencies, and museums.
``(D) Activities related to inservice training shall be
coordinated with such activities carried out under part A of
title II of the Elementary and Secondary Education Act of
1965.
``(3) Recruitment of teachers.--
``(A) Local educational agencies may use funds--
``(i) to establish, operate, or expand programs to
encourage and recruit interested individuals to pursue a
course of study that will lead to a career in education; and
``(ii) to establish, operate, or expand a program where
such agency recruits students currently enrolled in a school
in the local educational agency to be teachers or early
childhood education specialists.
``(B) Activities under this paragraph may include (but
shall not be limited to)--
``(i) academic and career counseling of and support
services for students;
``(ii) programs whereby students act as tutors while they
are enrolled in schools in the local educational agency;
``(iii) programs whereby students enrolled in institutions
of higher education and other individuals tutor students
within schools in the local educational agency;
``(iv) information and recruitment efforts to attract
individuals into the teaching profession; and
``(v) programs to support early childhood education efforts
at the preschool and school level.
``(C) In conducting programs under section 513(b)(3), local
educational agencies shall place a priority on recruiting
students and individuals from minority groups.
``(D) Local educational agencies may conduct programs under
section 513(b)(3) in consortia with institutions of higher
education.
``(4) Business partnerships.--Local educational agencies
may use funds to establish partnerships with representatives
of the business community to sponsor--
``(A) programs which allow representatives of local
business or firms to go into the classroom and work with the
classroom teacher to provide instruction in subject areas
where the expertise of the teacher could be supplemented
especially in the subject areas of mathematics, science, and
vocational and technology education training;
``(B) internship programs which provide an opportunity for
classroom teachers to work in local businesses or firms to
gain practical experience or to develop new skills or
expertise;
``(C) programs which bring students and teachers into
business settings to see applications of course work and in
specialized areas, and to learn to use advanced technical
equipment;
``(D) programs which allow representatives of local
businesses and firms to work with school administrators to
develop instructional material; and
``(E) other activities appropriate to forming a working
relationship between business leaders and classroom leaders.
``SEC. 514. STATE USES OF FUNDS.
``(a) In General.--State educational agencies receiving
funds under this part shall use such funds for conducting an
assessment of teacher education programs within such State,
and may use funds for--
``(1) the establishment of State Academies for Teachers,
``(2) the establishment of State Academies for School
Leaders, and
``(3) other purposes consistent with improving the quality
of the Nation's teaching force, including efforts to improve
the quality and number of preschool and early childhood
education specialists, as approved by the Secretary.
``(b) Teacher Education Study.--Each State educational
agency receiving funds under this part shall, in consultation
with institutions of higher education, local educational
agencies, teachers, parents, the State legislature, the State
board of education, and business, undertake a study of
teacher education programs and State teacher professional
development requirements, including programs and requirements
intended to train preschool and early childhood education
specialists, and the State laws and regulations relating to
such programs and requirements, including any standards or
requirements for certification and licensure, in order to
determine if such programs and requirements are adequately
preparing teachers to effectively educate students. Such
study shall include the consideration of the following in
order to determine if such programs or requirements--
``(1) would be improved if teacher education programs were
required to coordinate courses with other departments on
campus in order to provide prospective teachers with a strong
background in their subject matter;
``(2) integrate academic and vocational education
instruction;
``(3) give enough flexibility in order to allow
experimentation and innovation;
``(4) would be improved if such programs provided
preparation for students desiring to become teachers, but who
are pursuing a bachelor's degree in an area of study other
than education; and
``(5) would be improved if teacher certification required a
bachelor's degree in a subject area and a masters degree in
education.
``(c) Deadlines.--Such study shall be completed by two
years from the end of the first fiscal year in which funding
was made available for this part. The results of such study
shall be reported to the Secretary. In submitting the report
to the Secretary, the State educational agency shall include
in the report the most successful practices used to enhance
the profession of teaching. The Secretary may disseminate
such successful practices in order to assist other States in
their efforts to enhance the profession of teaching. Except
as provided in subsection (d), beginning in the third fiscal
year for which funding is available, State educational
agencies shall use at least 75 percent of their funds
provided under section 511(b)(3)(C) to implement the program
and policy changes flowing from the findings of the study and
to assist schools of education throughout the State in
meeting any new requirements that result from the study. The
State educational agency shall award grants pursuant to
section 515(b)(6) to institutions of higher education to
implement the programs and policy changes flowing from the
findings of the study.
``(d) Waiver.--If a State demonstrates to the Secretary
that it has completed a comparable study within the previous
3 years prior to the fiscal year for which funds were made
available under this part, then the Secretary may waive the
requirements of subsection (a). States receiving a waiver
shall use funds provided under section 511(b)(3)(C) to
implement the program and policy changes resulting from the
funding of such study. If the State can demonstrate to the
Secretary that such program and policy changes have been
implemented, then the State shall use funds provided under
section 511(b)(3)(C) to carry out the activities authorized
under subsections (e) and (f).''
``(e) State Academies for Teachers.--
``(1) Competitive awards for academies.--The State
educational agency may use a portion of the State's grant
under section 511(b)(3)(C) to make competitive awards to
local educational agencies, institutions of higher education,
other public and private nonprofit agencies and
organizations, or consortia of such agencies, institutions,
and organizations, to establish and operate State Academies
for Teachers. Such Academies may be operated in cooperation
or consortium with those of other States. To the extent
practicable, such academies shall coordinate efforts with the
teacher inservice activities of local educational agencies.
``(2) Early childhood academies.--Each State educational
agency may establish an academy aimed at early childhood
education training. Such an academy shall give a priority to
recruiting candidates from underrepresented groups in the
early childhood education profession and shall provide
intensive childhood training in violence counseling.
``(3) Tech-prep academies.--Each State educational agency
may establish an academy for (A) assisting educators in
secondary schools and community colleges to more effectively
understand organizational structures and organizational
change strategies; (B) assisting educators to learn effective
peer leadership strategies; (C) assisting secondary school
teachers and community college faculty to identify the
knowledge and skills required in highly technical industries
and workplaces; (D) assisting secondary school teachers and
community college faculty to apply creative strategies to the
development of interdisciplinary curricula; and (E) assisting
educators in integrating academic and vocational education.
``(4) Authorized activities.--
``(A) Each State choosing to establish State academies for
teachers may establish a separate academy in each of the 6
core academic subjects (English, mathematics, science,
history, foreign languages, and geography) as well as
vocational and technology education, or may establish one or
several academies which focus on more than one subject. Each
academy may have as a focus methods and curricula that stress
instruction in applied settings, including the integration of
vocational education with the core subject areas of focus for
the academy. A State educational agency may establish an
early childhood education academy or tech-prep academy either
in addition to or in lieu of a core academic subject area.
``(B) Except as provided under paragraphs (2) and (3), each
State Academy for Teachers assisted under this title shall
conduct a program of intensive instruction, during the summer
or the school year, focusing on the core academic disciplines
of English, mathematics, science, history, foreign languages,
and geography as well as vocational and technology education.
Such instruction shall be provided to current elementary and
secondary school teachers.
``(C) The instruction provided by each such Academy shall
include--
``(i) renewal and enhancement of participants' knowledge of
one or more of the 6 core academic disciplines described in
subparagraph (A);
``(ii) teaching skills and strategies needed to impart
academic subject matter to students, including students who
are educationally disadvantaged, limited English proficient,
or have disabilities, and other students from diverse
backgrounds;
``(iii) at the Academy's discretion, the use of educational
technologies in teaching the core academic disciplines;
``(iv) training needed to become a lead teacher or a master
teacher in a core subject;
``(v) training needed to participate in curriculum
development in a core subject;
``(vi) training in the development and use of assessment
tools; and
[[Page 491]]
``(vii) integration of academic and vocational instruction.
``(D) Each Academy assisted under this part shall carry out
activities consistent with the purpose of this part, which
may include--
``(i) review of existing teacher enhancement programs to
identify the most promising approaches;
``(ii) development of a curriculum for use by the Academy;
``(iii) review existing systemic improvement strategies and
theories to identify the most promising approaches that will
achieve a quality education for all students;
``(iv) recruitment of teachers within the State to
participate in the Academy's program, including, recruitment
of--
``(I) minority group members;
``(II) individuals with disabilities;
``(III) individuals from areas with high numbers or
concentrations of educationally disadvantaged students; and
``(IV) other teachers who have a potential for leadership;
``(v) follow-up activities for previous participants;
``(vi) dissemination of information about the Academy,
including the training curricula developed; and
``(vii) evaluation of the impact of the Academy on the
teaching practices of participants, and other evaluation
activities designed to strengthen the Academy's program.
``(4) Additional activities.--
``(A) Each Academy may use a portion of the funds provided
for a program of cash awards and recognition to outstanding
teachers in the core academic subject or subjects covered by
the program of the Academy.
``(B) Each Academy choosing to offer the awards under
subparagraph (A) shall select teachers to receive awards from
nominations received from local educational agencies, public
and private schools, teachers, associations of teachers,
parents, associations of parents and teachers, businesses,
business groups, and student groups.
``(C) Any full-time public or private elementary or
secondary school teacher of a core academic subject or
vocational and technology education subject, including an
elementary school teacher of the general curriculum, shall be
eligible to receive an award under this subsection.
``(D) The Academy shall select award recipients in
accordance with criteria developed by the Academy and
approved by the State educational agency. The selection
criteria may take into account, but are not limited to,
teacher's success in--
``(i) educating educationally disadvantaged children, such
as children with disabilities, children of limited English
proficiency, homeless children, or children who are currently
or formerly migratory, in a core academic subject or
vocational and technology education subject;
``(ii) educating gifted and talented students in a core
academic subject;
``(iii) encouraging students to enroll, and succeed, in
advanced classes in a core academic subject or vocational and
technology education subject;
``(iv) teaching a core academic subject or vocational and
technology education subject successfully in schools
educating large numbers of educationally disadvantaged
students, including schools in low-income inner-city or rural
areas;
``(v) introducing a new curriculum in a core academic
subject or vocational and technology education subject into a
school or strengthening an established curriculum;
``(vi) acting as a `master teacher' in a core academic
subject or vocational and technology education subject; or
``(vii) training in violence counseling and conflict
resolution.
``(E) The amount of a teacher's award under this subsection
shall not exceed $5,000 and shall be available for any
purpose the recipient chooses.
``(5) Recipient use of funds.--Each recipient may use a
portion of the funds provided to meet the reasonable start-up
and initial operating costs of carrying out the activities
described in section 305 (a) through (c), which may include
stipends and travel and living expenses for teachers who
participate in the Academy's program if no other funds are
available to pay those costs.
``(6) Cost-sharing.--Funds received under this subsection
may be used to pay up to 75 percent of the cost of a State
Academy for Teachers in the first year, 65 percent of such
cost in the second year, 55 percent in the third year, 45
percent in the fourth year, and 35 percent in the fifth year.
The remaining share shall be provided from non-Federal
sources, and may include in-kind contributions, fairly
valued.
``(f) State Academies for School Leaders.--
``(1) Competitive awards for academies.--Each State
choosing to establish a State Academy for School Leaders
shall make competitive awards to local educational agencies,
institutions of higher education, other public and private
nonprofit agencies and organizations, or consortia of such
agencies, institutions, and organizations, to establish and
operate a State Academy for School Leaders. A priority for
awards shall be given to entities who received funds under
subpart 2 of part C of title V of the Higher Education Act as
in effect on September 30, 1991. Such Academies may be
operated in cooperation or consortium with those of other
States.
``(2) Authorized activities.--Each Academy assisted under
this subsection shall--
``(A) identify models and methods of leadership training
and development that are promising or have proven to be
successful;
``(B) develop curricula, which focus on instructional
leadership, school-based management, and the design and
execution of systemic school improvement strategies and
accountability mechanisms leading to achievement of local,
State, and national goals and standards, for the development
of school leaders;
``(C) identify candidates, including members of minority
groups, individuals with disabilities, and individuals from
schools with high numbers of concentrations of educationally
disadvantaged students, to be trained as new school leaders;
``(D) provide intensive training and development programs
both for persons desiring and demonstrating outstanding
promise to become school leaders, and for current school
leaders seeking enhanced and up-to-date knowledge needed to
perform their jobs effectively, with a special emphasis on
violence training and conflict resolution;
``(E) identify local educational agencies and schools with
principal and other school leader vacancies and work with
them to match Academy participants with such vacancies;
``(F) as appropriate, facilitate internships for graduates
of the program for new school leaders, under the guidance and
supervision of experienced administrators;
``(G) provide periodic follow-up development activities for
school leaders trained through the Academy's programs;
``(H) disseminate information about the Academy, including
the training curricula developed;
``(I) evaluation of the impact of the Academy on the
leadership practices of participants, and other evaluation
activities designed to strengthen the Academy's program; and
``(J) as appropriate, coordinate activities with those of
any State academies for teachers established in the State.
``(3) Use of funds.--Each recipient of funds under this
subsection shall use those funds to meet the reasonable
start-up and initial operating costs of carrying out the
activities described in paragraph (2), which may include
stipends, travel, and living expenses for participants in the
Academy if no other funds are available to pay those costs.
``(4) Cost-sharing.--Funds received under this subsection
may be used to pay up to 75 percent of the cost of a State
Academy for School Leaders in the first year, 65 percent of
such cost in the second year, 55 percent in the third year,
45 percent in the fourth year, and 35 percent in the fifth
year. The remaining share shall be provided from non-Federal
sources, and may include in kind contributions, fairly
valued.
``SEC. 515. INSTITUTIONS OF HIGHER EDUCATION USES OF FUNDS.
``(a) Applications.--Institutions of higher education
desiring to receive a grant under section 511(b)(3)(D) shall
submit to the State educational agency an application which--
``(1) describes the types of activities that the school,
college, or department of education plans to undertake with
funds provided;
``(2) describes the process used by the institution to
determine the State's needs for improving teacher education
and training for preschool and early childhood education
specialists, including consulting with current students,
teachers, representatives from local educational agencies,
parents, and representatives from preschool and early
childhood specialists;
``(3) if such institution is applying for a grant to assist
local educational agencies in providing inservice training
for teachers, describes the training and services that such
institution plans to provide for teachers within the local
educational agency and demonstrates that such training and
services are consistent with the needs of the local
educational agencies to be served;
``(4) describes how the institution plans to integrate
academic and vocational teacher education programs; and
``(5) other information that may be required by the State
educational agency.
``(b) Awards.--The State educational agency shall award
grants on a competitive basis to institutions of higher
education that have departments, schools, or colleges of
education. In awarding grants, the State educational agency
shall award funds for the following purposes:
``(1) for institutions of higher education in consultation
and cooperation with a local educational agency or a
consortium of local educational agencies, to develop and
provide technical assistance to local education agencies in
providing inservice training for teachers;
``(2) for improving teacher education programs in order to
further innovation in teacher education programs within an
institution of higher education and to better meet the needs
of the local educational agencies for well-prepared teachers;
``(3) for improving training for preschool and early
childhood education specialists, including preschool and
early intervention services for infants and toddlers with
disabilities, in order to further innovation in such programs
with institutions of higher education and to better meet the
needs of preschool and early childhood education programs for
well-prepared personnel;
``(4) to integrate the instruction of academic and
vocational teacher education programs;
[[Page 492]]
``(5) activities to encourage individuals, especially
individuals from minority groups, to pursue a career in
education; and
``(6) when the study of teacher education programs is
completed under section 514, to implement the new
requirements for teacher education programs.
``SEC. 516. FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT REGULAR
NONFEDERAL FUNDS.
``A State educational agency, local educational agency, or
institution of higher education may use funds received under
this part only so as to supplement and, to the extent
practicable, increase the level of funds that would be
available from non-Federal sources for the uses of funds
under this part and in no case may such funds be so used as
to supplant such funds from such non-Federal sources.
``SEC. 517. COORDINATION WITH OTHER PROGRAMS.
``If a State educational agency receives funding under the
Neighborhood Schools Improvement Act, then the State
educational agency shall ensure that activities conducted
under this part shall be consistent with the goals and
objectives of the State plan under section 8006 of such Act.
``PART B--TEACHER SCHOLARSHIPS AND FELLOWSHIPS
``Subpart 1--Paul Douglas Teacher Corps Scholarships
``SEC. 521. PURPOSE.
``It is the purpose of this subpart to make available,
through grants to the States, scholarships to individuals who
are outstanding high school graduates and who demonstrate an
interest in teaching, in order to enable and encourage those
individuals to pursue teaching careers in education at the
preschool, elementary, or secondary level, and to encourage
women and minorities who are underrepresented in the fields
of science and mathematics to pursue teaching careers in
these fields. Such scholarships shall be referred to as Paul
Douglas Teacher Corps Scholarships.
``SEC. 522. ALLOCATION AMONG STATES.
``From the sums appropriated for this subpart for any
fiscal year, the Secretary shall allocate to any State an
amount based on the school-age population in the State
compared to the school-age population in all States. In
making such allotments, the Secretary shall use the most
recent data available.
``SEC. 523. GRANT APPLICATIONS.
``(a) Submission of Applications.--The Secretary is
authorized to make grants to States in accordance with the
provisions of this subpart. In order to receive a grant under
this subpart, a State shall submit an application at such
time or times, in such manner, and containing such
information as the Secretary may prescribe by regulation.
Such application shall set forth a program of activities for
carrying out the purposes of this subpart in such detail as
will enable the Secretary to determine the degree to which
such program will accomplish such purposes and such other
policies, procedures, and assurances as the Secretary may
require by regulation.
``(b) Content of Applications.--The Secretary shall approve
an application under this subpart only if the application--
``(1) describes the selection criteria and procedures to be
used by the State in the selection of scholarship recipients;
``(2) designates the State agency which administers the
program under subpart 4 of part A of title IV, relating to
State student incentive grants, or the State agency with
which the Secretary has an agreement under section 428(b);
``(3) describes the outreach effort the State agency
intends to use to publicize the availability of Paul Douglas
Teacher Corps Scholarships to high school students in the
State;
``(4) describes how the State will inform recipients, upon
receipt of the award, of current and projected teacher
shortages and surpluses within the State;
``(5) provides assurances that each recipient eligible
under section 525(b) who receives a Paul Douglas Teacher
Corps Scholarship shall enter into an agreement with the
State agency under which the recipient shall--
``(A) within the 10-year period after completing the
postsecondary education for which the Paul Douglas Teacher
Corps Scholarship was awarded, teach for a period of not less
than 2 years for each year for which assistance was received,
in a public or private nonprofit preschool, elementary, or
secondary school in any State, or, on a full-time basis,
children with disabilities or children with limited English
proficiency in a private nonprofit school, except that, in
the case of (i) individuals who teach in a shortage area
established by the Secretary pursuant to section 530, or (ii)
individuals from minority groups who teach in public or
private nonprofit elementary or secondary schools in any
State where there are significant numbers of minority
students enrolled, the requirements of this subparagraph
shall be reduced by one-half;
``(B) provide the State agency evidence of compliance with
section 527 as required by the State agency; and
``(C) repay all or part of a Paul Douglas Teacher Corps
Scholarship received under section 524 plus interest and, if
applicable, reasonable collection fees, in compliance with
regulations issued by the Secretary under section 527, in the
event that the conditions of subparagraph (A) are not
complied with, except as provided for in section 528;
``(6) provides that the agreement entered into with
recipients shall fully disclose the terms and conditions
under which assistance under this subpart is provided and
under which repayment may be required including--
``(A) a description of the procedures required to be
established under paragraph (7); and
``(B) a description of the appeals procedures required to
be established under paragraph (8) under which a recipient
may appeal a determination of noncompliance with any
provision under this subpart;
``(7) provides for procedures under which a recipient of
assistance received under this part who teaches for less than
the period required under paragraph (5)(A) will have the
repayment requirements reduced or eliminated consistent with
the provisions of sections 527 and 528;
``(8) provides for appeals procedures under which a
recipient may appeal any determination of noncompliance with
any provision under this part; and
``(9) provides assurances that the State agency shall make
particular efforts to attract students from low-income
backgrounds; ethnic and racial minority students; students
with disabilities; other individuals from groups historically
underrepresented in teaching; individuals who express a
willingness or desire to teach in rural schools, urban
schools, or schools having less than average academic results
or serving large numbers of economically disadvantaged
students; or students who show interest in pursuing teaching
careers in science and mathematics, especially women and
minorities who are underrepresented in these fields.
``(c) Selection Criteria and Procedures.--The State
educational agency, in cooperation with the State higher
education agency, and pursuant to scholarship selection
criteria included in section 525, shall establish criteria to
select Paul Douglas Teacher Corps Scholarship recipients.
These criteria shall be intended to attract highly qualified
individuals into teaching, to ensure that these students are
enrolled in approved teacher education programs, and to meet
the needs of States in addressing teacher shortages,
including a demonstrated interest in teaching, or skill or
professional experience in fields of expertise in which the
State is experiencing teacher shortages.
``(d) Special Consideration.--The State educational agency,
in cooperation with the State higher education agency, shall
give special consideration in the selection of teacher corps
members to individuals who--
``(1) intend to teach or provide related services to
students with disabilities;
``(2) intend to teach limited English proficient students;
``(3) intend to teach preschool age children;
``(4) intend to teach in schools servicing inner city or
rural or geographically isolated areas (as defined by the
Secretary by regulations consistent with the purposes of this
section); or
``(5) intend to teach in curricular areas or geographic
areas where there are demonstrated shortages of qualified
teachers.
``(e) Priority Consideration.--The State educational agency
shall give priority consideration in the selection of
individuals from disadvantaged backgrounds, including racial
and ethnic minorities and individuals with disabilities, who
are underrepresented in the teaching profession or in the
curricular areas in which they are preparing to teach.
``(f) Solicitation of Views on Selection Criteria and
Procedures.--In developing the selection criteria and
procedures to be used by the State, the State shall solicit
the views of local educational agencies, private educational
institutions, and other interested parties. Such views--
``(1) shall be solicited by means of (A) written comments;
and (B) publication of proposed selection criteria and
procedures in final form for implementation; and
``(2) may be solicited by means of (A) public hearings on
the teaching needs of elementary and secondary schools in the
State (including the number of new teachers needed, the
expected supply of new teachers, and the shortages in the
State of teachers with specific preparation); or (B) such
other methods as the State may determine to be appropriate to
gather information on such needs.
``SEC. 524. AMOUNT AND DURATION OF AND RELATION TO OTHER
ASSISTANCE.
``(a) Limitations on Amount and Duration.--Subject to
subsection (c) each Paul Douglas Teacher Corps Scholar shall
receive a $5,000 scholarship for each academic year of
postsecondary education for study in preparation to become a
preschool, special education, elementary, or secondary
teacher. No individual shall receive scholarship assistance
for more than 4 years of postsecondary education, as
determined by the State agency.
``(b) Consideration of Award in Other Programs.--
Notwithstanding the provisions of title IV of this Act,
scholarship funds awarded pursuant to this part shall be
considered in determining eligibility for student assistance
under title IV of this Act.
``(c) Assistance Not To Exceed Need.--Paul Douglas Teacher
Corps Scholarship assistance awarded by the statewide panel
established pursuant to section 525(a) to any individual in
any given year, when added to assistance received under title
IV of this Act, shall not exceed the cost of attendance, as
defined in section 472 of this Act, at the institution the
individual is attending. If the amount of the Paul Douglas
Teacher Corps Scholarship assistance and assistance received
under title IV of this Act, exceeds the
[[Page 493]]
cost of attendance, the Paul Douglas Teacher Corps
Scholarship shall be reduced by an amount equal to the amount
by which the combined awards exceed the cost of attendance.
``(d) Assistance Not To Exceed Cost of Attendance.--No
individual shall receive an award under the Paul Douglas
Teacher Corps Scholarship established under this subpart, in
any academic year, which exceeds the cost of attendance, as
defined in section 472 of this Act, at the institution the
individual is attending.
``SEC. 525. SELECTION OF PAUL DOUGLAS TEACHER CORPS SCHOLARS.
``(a) Selection by Statewide Panels.--Paul Douglas Teacher
Corps Scholars shall be selected by a 7-member statewide
panel appointed by the chief State elected official, acting
in consultation with the State educational agency, or by an
existing grant agency or panel designated by the chief State
elected official and approved by the Secretary of Education.
The statewide panel shall be representative of school
administrators, teachers, including preschool and special
education teachers, and parents.
``(b) Eligibility for Selection; Selection Criteria and
Procedures.--Selections of Paul Douglas Teacher Corps
Scholars shall be made from students who have graduated or
who are graduating from high school and who rank in the top
15 percent of their graduating class. The State educational
agency shall make applications available to public and
private nonprofit high schools in the State and in other
locations convenient to applicants, parents, and others. The
statewide panel shall develop criteria and procedures for the
selection of Paul Douglas Teacher Corps Scholars. Such
criteria may include the applicant's high school grade point
average, involvement in extracurricular activities, financial
need, and expression of interest in teaching as expressed in
an essay written by the applicant. The panel may also require
the applicant to furnish letters of recommendation from
teachers and others. Special consideration shall be afforded
to women and minorities who are underrepresented in the
fields of science and mathematics and are seeking to enter
the teaching profession in these fields.
``(c) Waivers.--For purposes of making priority
considerations in section 523(d) States may waive certain
criteria in section 525(b) for up to 25 percent of
individuals receiving Paul Douglas Teacher Corps
Scholarships.
``SEC. 526. SCHOLARSHIP CONDITIONS.
``Recipients of scholarship assistance under this subpart
shall continue to receive such scholarship payments only
during such periods that the State agency finds that the
recipient is--
``(1) enrolled as a full-time student in an accredited
postsecondary institution;
``(2) pursuing a course of study leading to teacher
certification; and
``(3) maintaining satisfactory progress as determined by
the postsecondary institution the recipient is attending.
``SEC. 527. SCHOLARSHIP REPAYMENT PROVISIONS.
``Recipients found by the State agency to be in
noncompliance with the agreement entered into under section
523(b)(4) of this subpart shall be required to repay a pro
rata amount of the scholarship awards received, plus interest
and, where applicable, reasonable collection fees, on a
schedule and at a rate of interest to be prescribed by the
Secretary by regulations issued pursuant to this subpart.
``SEC. 528. EXCEPTIONS TO REPAYMENT PROVISIONS.
``(a) Deferral During Certain Periods.--A recipient shall
not be considered in violation of the agreement entered into
pursuant to section 523(b)(4) during any period in which the
recipient--
``(1) is pursuing a full-time course of study related to
the field of teaching at an eligible institution;
``(2) is serving, not in excess of 3 years, as a member of
the armed services of the United States;
``(3) is temporarily totally disabled for a period of time
not to exceed 3 years as established by sworn affidavit of a
qualified physician;
``(4) is unable to secure employment of a period not to
exceed 12 months by reason of the care required by a spouse
who is disabled;
``(5) is seeking and unable to find full-time employment
for a single period not to exceed 12 months;
``(6) is seeking and unable to find full-time employment as
a teacher in a public or private nonprofit preschool,
elementary or secondary school, or a public or private
nonprofit preschool, education program for a single period
not to exceed 27 months; or
``(7) satisfies the provisions of additional repayment
exceptions that may be prescribed by the Secretary in
regulations issued pursuant to this subpart.
``(b) Forgiveness if Permanently Totally Disabled.--A
recipient shall be excused from repayment of any scholarship
assistance received under this subpart if the recipient
becomes permanently totally disabled as established by sworn
affidavit of a qualified physician.
``SEC. 529. FEDERAL ADMINISTRATION OF STATE PROGRAMS;
JUDICIAL REVIEW.
``(a) Disapproval Hearing Required.--The Secretary shall
not finally disapprove any application for a State program
submitted under section 523, or any modification thereof,
without first affording the State agency submitting the
program reasonable notice and opportunity for a hearing.
``(b) Suspension of Eligibility.--Whenever the Secretary,
after reasonable notice and opportunity for hearing to the
State agency administering a State program approved under
this subpart, finds--
``(1) that the State program has been so changed that it no
longer complies with the provisions of this subpart, or
``(2) that in the administration of the program there is a
failure to comply substantially with any such provisions,
the Secretary shall notify such State agency that the State
will not be regarded as eligible to participate in the
program under this subpart until the Secretary is satisfied
that there is no longer any such failure to comply.
``(c) Court Review.--(1) If any State is dissatisfied with
the Secretary's final action under subsection (b)(1) or (2),
such State may appeal to the United States court of appeals
for the circuit in which such State is located. The summons
and notice of appeal may be served at any place in the United
States. The Secretary shall forthwith certify and file in the
court the transcript of the proceedings and the record on
which the action was based.
``(2) The findings of fact by the Secretary, if supported
by substantial evidence, shall be conclusive; but the court,
for good cause shown, may remand the case to the Secretary to
take further evidence, and the Secretary may thereupon make
new or modified findings of fact and may modify any previous
action, and shall certify to the court the transcript and
record of further proceedings. Such new or modified findings
of fact shall likewise be conclusive if supported by
substantial evidence.
``(3) The court shall have jurisdiction to affirm the
action of the Secretary or to set it aside, in whole or in
part. The judgment of the court shall be subject to review by
the Supreme Court of the United States upon certiorari or
certification as provided in section 1254 of title 28, United
States Code.
``SEC. 530. DESIGNATION OF SHORTAGE AREAS.
``For the purposes of this part, the term `shortage areas'
means (1) geographic areas of the State in which there is a
shortage of elementary and secondary school teachers, and (2)
an area of shortage of elementary and secondary school
teachers in specific grade levels and in specific academic,
instructional, subject matter, and discipline
classifications. Such shortage areas shall be prescribed by
the Secretary, in consultation with the chief State school
officer or, in the case of nonprofit private elementary or
secondary schools, with appropriate officials of nonprofit
private schools in each State in accordance with this
section. In carrying out the provision of this section, the
Secretary shall give special consideration to areas in which
emergency certification of individuals in a State is being
used to correct teacher shortages; and to States which have
retirement laws permitting early retirement.
``Subpart 2--Christa McAuliffe Fellowship Program
``SEC. 531. DECLARATION OF PURPOSE; DESIGNATION.
``(a) Purpose.--It is the purpose of this subpart to
establish a national fellowship program for outstanding
teachers.
``(b) Designation.--Individuals awarded fellowships under
this subpart shall be known as `Christa McAuliffe Fellows'.
``SEC. 532. USE OF FUNDS FOR FELLOWSHIPS AND ADMINISTRATION.
``Funds appropriated for any fiscal year for fellowships to
outstanding teachers under this subpart shall be used to
award fellowships in accordance with the requirements of this
subpart, except that not more than 3 percent of such funds
shall be used for purposes of administering this subpart,
including activities authorized under section 537.
``SEC. 533. CHRISTA MCAULIFFE FELLOWSHIPS.
``(a) Award Distribution and Amounts.--(1) Except as
provided under paragraph (3), sums available for the purpose
of this subpart shall be used to award one national teacher
fellowship to a public or private school teacher teaching in
each congressional district of each State, and in the
District of Columbia, and the Commonwealth of Puerto Rico;
and one such fellowship in Guam, the Virgin Islands, American
Samoa, the Northern Mariana Islands, and Palau (until the
Compact of Free Association with Palau takes effect pursuant
to section 101(a) of Public Law 99-658).
``(2) Fellowship awards may not exceed the average national
salary of public school teachers in the most recent year for
which satisfactory data are available, as determined by the
Secretary. Christa McAuliffe teacher fellows may not receive
an award for 2 consecutive years. Subject to the repayment
provisions of section 536, Christa McAuliffe teacher fellows
shall be required to return to a teaching position in their
current school district or private school system for at least
2 years following the fellowship award. The Secretary is
authorized, in extraordinary circumstances, to waive or defer
all or a portion of the service requirement, or allow fellows
to fulfill their service requirement by going into a teaching
position in another school or school district.
``(3) If the appropriation for this subpart under section
502(b) is not sufficient to provide the number of fellowships
required by paragraph (1) at the level required under
paragraph (2), the Secretary shall determine and publish an
alternative distribution of fellowships which will permit
fellowship awards at that level and which is geographi-
[[Page 494]]
cally equitable. The Secretary shall send a notice of such
determination to each of the statewide panels established
under section 534.
``(b) Use of Awards.--Christa McAuliffe teacher fellows may
use such awards for such projects for improving education as
the Secretary may approve, including (1) sabbaticals for
study or research directly associated with the objectives of
this part, or academic improvement; (2) consultation with or
assistance to other school districts or private school
systems; (3) development of special innovative programs; (4)
model teacher programs and staff development; (5) projects or
partnerships that involve the business community and the
schools; or (6) programs that incorporate the use and the
sharing of technologies to help students learn.
``SEC. 534. SELECTION OF CHRISTA MCAULIFFE TEACHER
FELLOWSHIPS.
``Recipients of Christa McAuliffe teacher fellowships in
each State shall be selected (in accordance with section 535)
by a 7-member statewide panel appointed by the chief State
elected official, acting in consultation with the State
educational agency, or by an existing panel designated by the
chief State elected official and approved by the Secretary.
The statewide panel shall be representative of school
administrators, teachers, parents, and institutions of higher
education.
``SEC. 535. EVALUATION OF APPLICATIONS.
``(a) Submission to and Review by Statewide Panel.--An
applicant for Christa McAuliffe teacher fellowship assistance
shall submit a proposal for a project under section 533(b),
and shall indicate the extent to which the applicant wishes
to continue current teaching duties. The applicant shall
submit such a proposal to the local education agency for
comment prior to submission to the statewide panel (appointed
under section 534) for the State within which the proposed
project is to be conducted. In evaluating proposals, such
statewide panel shall consult with the local education
agency, requesting 2 recommendations from teaching peers; a
recommendation from the principal; and a recommendation of
the superintendent on the quality of the proposal and its
benefit to education; and any other criteria for awarding
fellowships as is considered appropriate by such statewide
panel. Selection of fellows shall be made in accordance with
regulations prescribed by the Secretary of Education.
``(b) Public Announcement.--Announcement of awards shall be
made in a public ceremony.
``SEC. 536. FELLOWSHIP REPAYMENT PROVISIONS.
``Repayment of the award shall be made to the Federal
Government in the case of fraud or gross noncompliance.
``SEC. 537. INFORMATION DISSEMINATION.
``The Secretary shall establish a clearinghouse or
otherwise provide for the collection and dissemination of
information on exemplary projects for improving education
that receive funds under section 533(b) of this part. The
Secretary may utilize the National Diffusion Network in
carrying out the requirements of this section.
``PART C--NATIONAL PROGRAMS
``Subpart 1--National Mini Corps Program
``SEC. 541. NATIONAL MINI CORPS.
``(a) Program Authorized.--The Secretary is authorized to
make grants to institutions of higher education to establish
partnerships with local educational agencies to carry out the
purposes of the National Mini Corps Program.
``(b) Definitions.--As used in this subpart--
``(1) the term `individual' (A) has the same meaning as the
terms `first generation college student' and `low income
individual' as defined under section 417A(d) of this Act, or
(B) means a student enrolled in an institution of higher
education who is the child of current or former migratory
workers (including migratory agricultural dairy workers) or
of migratory fishermen;
``(2) the term `children' means children who are eligible
to receive services under part A or subpart 1 of part D of
title I of the Elementary and Secondary Education Act of
1965.
``(c) Purpose of the Program.--It is the purpose of the
National Mini Corps Program to--
``(1) provide individuals who are enrolled or plan to
enroll in an institution of higher education with advisement,
training, and instructional services, and to be role models
for children;
``(2) provide outreach and recruitment services to
encourage children to enroll in teacher education programs;
``(3) provide support and instructional services to
individuals who are enrolled in an institution of higher
education to enable such individuals to provide direct
instructional services, which are coordinated with the
overall educational goals of the State or local educational
agency, to children eligible to receive services under
chapter 1 of title I of the Elementary and Secondary
Education Act of 1965 during the regular or summer term,
including--
``(A) lessons and provision of materials that meet the
academic needs of children in the classroom;
``(B) supplemental instruction to reinforce the basic
skills and concepts provided through instruction by the
teacher; and
``(C) instruction in other subject areas.
``(4) designate college coordinators at participating
institutions of higher education to train, supervise, and
assign individuals to carry out the activities of this
subpart in cooperation with State and local educational
agencies in which children with special needs have been
identified; and
``(5) support other appropriate activities related to
encouraging individuals to enter the teaching profession and
to provide a link to the community.
``(d) Application Required.--Institutions of higher
education desiring to receive a grant under this subpart
shall submit an application to the Secretary which shall
include--
``(1) a written partnership agreement with the State and
local educational agency in which the children have been
identified for participation in the activities under this
subpart;
``(2) a description of the strategies that will be employed
to engage the community generally in the activities and
programs supported by the programs under this subpart;
``(3) a description of the process by which individuals
will be recruited and selected to participate in the programs
under this subpart;
``(4) a description of the programs and activities which
will be supported by the programs under this subpart; and
``(5) such other information as the Secretary considers
necessary to determine the nature of the local needs, the
quality of the proposed Mini Corps Program, and the
capability of the applicant to implement the proposed Mini
Corps Program.
``(e) Awarding of Grants.--In awarding grants under this
subpart, the Secretary shall ensure, to the extent
practicable, that--
``(1) grants are equitably distributed on a geographic
basis throughout the Nation and among a variety of
communities; and
``(2) the amount of the grant awarded is proportionate to
the number of individuals and children who, on the basis of
the grant application, are expected to be involved in the
programs and activities supported by the National Mini Corps.
``(f) Uses of Funds.--Funds provided under this part may be
used for planning, implementing and operating a National Mini
Corps Program; except that not more than 15 percent of any
grant received under this part may be used for administrative
costs.
``Subpart 2--National Teacher Board
``SEC. 546. NATIONAL BOARD FOR PROFESSIONAL TEACHING
STANDARDS.
``(a) Definitions.--For the purpose of this subpart--
``(1) The term `Board' means the National Board for
Professional Teaching Standards.
``(2) The term `Committee' means the Fund for Improvement
and Reform of Schools and Teaching Board established in
section 3231 of the Fund for the Improvement and Reform of
Schools and Teaching Act.
``(3) The term `elementary school' has the same meaning
given that term in section 1471(8) of the Elementary and
Secondary Education Act of 1965.
``(4) The term `secondary school' has the same meaning
given that term in section 1471(21) of the Elementary and
Secondary Education Act of 1965.
``(5) The term `Secretary' means the Secretary of
Education.
``(b) Program Authorization.--
``(1) Program authorized.--From sums appropriated under
section 502(c)(2) in any fiscal year, the Secretary is
authorized and directed, in accordance with this subpart, to
provide financial assistance to the National Board for
Professional Teaching Standards, in order to pay the Federal
share of the costs of the activities described in subsection
(d).
``(2) Terms and conditions.--(A) No financial assistance
may be made available under this subpart except upon an
application as required by subsection (e).
``(B) No financial assistance may be made available under
this subpart unless the Secretary determines that--
``(i) the Board will comply with the provisions of this
subpart;
``(ii) the Board will use the Federal funds only for
research and development activities in accordance with
subsection (d) and such teacher assessment and certification
procedures will be free from racial, cultural, gender or
regional bias;
``(iii) the Board--
``(I) will widely disseminate for review and comment
announcements of specific research projects to be conducted
with Federal funds, including a description of the goals and
focus of the specific project involved and the specific merit
review procedures and evaluation criteria to be used in the
competitive award process; and
``(II) will send such announcements to the Secretary of
Education, the Director of the National Science Foundation,
the National Research Council, and the educational research
community;
``(iv) the Secretary, pursuant to an arrangement with the
Board, will publish the announcements described in clause
(iii) in the Federal Register (or such other publication
deemed appropriate by the Secretary) and in publications of
general circulation designed to disseminate such
announcements widely to the educational research community;
``(v) the Board will, after offering any interested party
an opportunity to make comment upon, and take exception to,
the projects contained in the announcements described in
clause (iii) for a 30-day period following publication, and
after reconsidering any project upon which comment is made or
to which exception is taken, through the Secretary issue a
request for proposals in the Federal Register (or such other
publication
[[Page 495]]
deemed appropriate by the Secretary) containing any revised
project information;
``(vi) the Board will make awards of Federal funds
competitively on the basis of merit, and, in the award
process, the Board will select, to the extent practicable
consistent with standards of excellence--
``(I) a broad range of institutions associated with
educational research and development; and
``(II) individuals who are broadly representative of the
educational research and teaching communities with expertise
in the specific area of research and development in question;
``(vii) the Board will adopt audit practices customarily
applied to nonprofit private organizations and will comply
with subsection (g)(3);
``(viii) the Board will not use Federal funds to meet the
administrative and operating expenses of the Board;
``(ix) the Board will submit an annual report to Congress
in accordance with the provisions of subsection (g)(1); and
``(x) the Board will, upon request, disseminate to States,
local educational agencies, or other public educational
entities the results of any research or research project
produced with funds authorized by this part, upon the payment
of the cost of reproducing the appropriate material.
``(3) Availability of funds.--(A) Notwithstanding any other
provision of law, funds appropriated to carry out this
subpart shall remain available for obligation and expenditure
until the end of the second fiscal year succeeding the fiscal
year for which the funds were appropriated.
``(B) No funds shall be made available to the Board after
September 30, 1997, except as authorized by paragraph (1) of
this subsection.
``(c) Consultation.--The Board shall consult at least twice
annually with the Committee on the design and execution of
its overall research and development strategy, including
procedures to assure compliance with the requirements of this
subpart. The procedures shall include--
``(1) an outline of specific research and development
agenda and activities to be conducted with the Federal funds;
and
``(2) provisions to ensure compliance with the open
competition and merit review requirements of this subpart for
proposals and projects assisted under this subpart.
``(d) Authorized Activities.--
``(1) In general.--Federal funds received under this
subpart may only be used for research and development
activities directly related to the development of teacher
assessment and certification procedures for elementary and
secondary school teachers.
``(2) Priorities.--(A) The Board shall give priority to
research and development activities in--
``(i) mathematics;
``(ii) the sciences;
``(iii) foreign languages; and
``(iv) literacy, including the ability to read, write and
analyze.
``(B) The Board shall give priority to research and
development activities for the certification of elementary
and secondary school teachers and the need and ability of
such teachers to teach special educational populations,
including--
``(i) limited English proficient children;
``(ii) gifted and talented children;
``(iii) children with disabilities; and
``(iv) economically and educationally disadvantaged
children.
``(e) Application.--
``(1) In general.--The Board shall submit applications to
the Secretary at such time and in such manner as the
Secretary may reasonably require. Each such application
shall--
``(A) describe the activities for which assistance is
sought; and
``(B) provide assurances that the non-Federal share of the
cost of activities of the Board is paid from non-Federal
sources, together with a description of the manner in which
the Board will comply with the requirements of this
paragraph.
``(2) Approval.--The Secretary shall approve an application
unless such application fails to comply with the provisions
of this subpart.
``(f) Federal Share.--
``(1) In general.--The Secretary shall pay to the Board the
Federal share of the costs of the activities of the Board for
the period for which the application is approved under
subsection (e).
``(2) Amount of federal share.--The Federal share shall be
50 percent of the costs of the activities described in
subsection (d).
``(g) Reports and Auditing Provision.--
``(1) National board for professional teaching standards
report.--The Board shall submit an annual report to the
appropriate committees of the Congress not later than
December 31, 1993, and each succeeding year thereafter for
any fiscal year in which Federal funds are expended pursuant
to this subpart. The Board shall disseminate the report for
review and comment to the Department of Education, the
National Science Foundation, the National Research Council,
and the education research community. The report shall--
``(A) include a detailed financial statement and a report
of the audit practices described in subsection
(d)(3)(B)(vii);
``(B) include a description of the general procedures to
assure compliance with the requirements of this subpart as
required in subsection (d); and
``(C) provide a comprehensive and detailed description of
the Board's agenda, activities, and planned activities for
the preceding and succeeding fiscal years, including--
``(i) the Board's overall research and development program
and activities;
``(ii) the specific research and development projects and
activities conducted with Federal funds during the preceding
fiscal year, including--
``(I) a description of the goals and methodology of the
project;
``(II) a description and assessment of the findings (or
status and preliminary findings if project is not yet
completed);
``(III) a description of the competitive bidding process,
the merit review procedures, and the evaluation criteria used
to award project funds; and
``(IV) a description of the Board's plans for dissemination
of the findings described in clause (ii);
``(iii) the specific research and development projects and
activities planned to be conducted with Federal funds during
the succeeding fiscal year, including the goals and
methodologies to be used; and
``(iv) a listing of available publications of the Board,
including publications related to policies, standards and
general information, research reports, and commissioned
papers of the Board.
``(2) First annual report.--The first annual report
required by this subsection shall include a description of
the Board's research and development agenda for the
succeeding 5-year period. Such first report shall include to
the maximum extent practicable, a description of specific
research and development projects and activities, and the
goals and methodologies of such projects and activities.
``(3) Additional reports.--The Department of Education, the
National Science Foundation, and the National Research
Council shall report to the appropriate committees of the
Congress on the compliance of the Board with the requirements
of this part not later than 30 days after the Board submits
its annual report pursuant to paragraph (1).
``(4) Auditing provision.--The Comptroller General of the
United States, and any of his authorized representatives,
shall have access, for the purpose of audit and examination,
to any books, documents, papers, and records of the Board,
and to any recipient of the Board, that is pertinent to the
sums received and disbursed under this subpart.
``(h) Evaluation.--
``(1) In general.--After September 30, 1995, the Secretary
shall reserve not more than 2 percent of the amount
appropriated pursuant to the authority of section 502(c)(2)
to provide for an independent, ongoing evaluation of the
research program of teacher assessments carried out by the
Board and the fairness and the accuracy of the date such
evaluations produce. The evaluation shall include an analysis
of the impact of teacher assessments on minority teachers.
The findings of the evaluation shall be submitted to the
Labor and Human Resources Committee of the Senate and the
Education and Labor Committee of the House of
Representatives.
``(2) Special rule.--The Secretary shall enter into a
contract for the performance of the evaluation described in
subsection (a) with a nationally recognized organization
(such as the National Academy of Sciences or the National
Academy of Education).
``(i) Construction.--Nothing in this subpart shall be
construed to--
``(1) establish a preferred national curriculum or
preferred teaching methodology for elementary and secondary
school instruction;
``(2) infringe upon the rights and responsibilities of the
States to license elementary and secondary school teachers;
``(3) infringe upon the practice or accreditation of home
school or private school teaching;
``(4) provide an individual certified by the Board with a
right of action against a State, local educational agency, or
other public educational entity for any decisions related to
hiring, promotion, retention or dismissal; or
``(5) authorize the Secretary to exercise supervision or
control over the research program, standards, assessment
practices, administration, or staffing policies of the Board.
``Subpart 3--Partnerships for Innovative Teacher Education
``SEC. 551. FINDINGS.
``The Congress finds as follows:
``(1) All students must master challenging subject matter
and learn to be critical thinkers and self-directed learners,
so that they will be prepared for responsible citizenship,
further learning, and productive employment in our modern
economy.
``(2) Teachers must have a thorough understanding of the
content they teach and knowledge and skill in how to teach it
to all students.
``(3) Teachers learn to teach most effectively in clinical,
school-based settings with prospective and novice teachers
working under the guidance of master teachers.
``(4) Highly skilled and effective teachers and specialists
at all levels of the education system are needed, especially
in programs serving very young (early childhood and preschool
aged) children.
``(5) Research and development for improving teaching
practices and student learning can and should be done by and
with teachers for use in their particular schools.
``(6) School-based research and development is an effective
way to generate knowledge that is needed for improving
teaching and learning.
[[Page 496]]
``(7) To be effective, training provided prospective
teachers by institutions of higher education must be
responsive to the needs of schools and teachers.
``(8) The business community has an important role to play
in encouraging school-based research and development to
improve teaching and learning.
``(9) American education needs a comprehensive reform
strategy based on 3 principles: creation of a supportive
political structure for sustained, school-level change;
school-wide interventions that engage the teachers, students,
and members of the wider school community in more powerful
learning; and promotion of research and development that is
close to the action of teaching and learning, but that draws
on the best intellectual resources that the Nation has to
offer.
``(10) Sustained collaborations between universities,
schools, businesses, communities, and Government will provide
the means to improve teaching and learning and to support
change over the long run.
``SEC. 552. PURPOSE.
``It is the purpose of this subpart to stimulate the
development of capacity for educational innovation through
assisting in the establishment of teaching schools for the
improvement of teacher education and teaching by providing
financial assistance to partnerships involving institutions
of higher education, elementary, and secondary schools and,
where appropriate preschools, local educational agencies, and
the business community with the support and collaboration of
the State educational agency, of other educational
organizations, social or human service agencies, and other
community organizations.
``SEC. 553. PROGRAM AUTHORITY.
``(a) Authority.--The Secretary is authorized to make
grants to, and enter into contracts and cooperative
agreements with, eligible entities to plan, establish, and
operate teaching schools to develop and put into practice the
best knowledge about teaching.
``(b) Definitions.--For the purpose of this subpart--
``(1) the term `teaching school' means a public preschool,
elementary, or secondary school whose mission, in addition to
providing the best possible education to its students, is to
provide a site for formal collaboration between 1 or more
institutions of higher education and the school for the
purpose of--
``(A) the training of prospective and beginning teachers
(including preschool and early childhood education
specialists, where appropriate) under the guidance of master
teachers and teacher educators;
``(B) the continuing development of experienced teachers;
``(C) research and development to improve teaching and
learning and the organization of schools;
``(D) public demonstration of exemplary learning programs
for diverse students; and
``(E) dissemination of knowledge produced in the research
and development process;
``(2) the term `institution of higher education' shall have
the same meaning as defined in section 1201(a) of this Act;
and
``(3) the term `eligible entity' means a partnership that
includes the participation of at least one institution of
higher education, at least one local educational agency,
teachers, and the business community, and may include the
State educational agency.
``(c) Awards and Renewals.--
``(1)(A) An award made under this subpart shall be for a
term of 1 year.
``(B) An award made under this part may be in the form of a
one-year planning grant or a one-year implementation grant.
An implementation grant may be renewed without further
competition annually for up to 4 additional years, upon
submission of an evaluation of the project to the Secretary
and assurances that the recipient--
``(i) has achieved the goals set out in its application for
the original term;
``(ii) shows promise of continuing its progress;
``(iii) will meet its share of the project costs; and
``(iv) has developed a plan for continuing the teaching
school after Federal funding is no longer available.
``(2) No teaching school may be supported with
implementation grant funds provided under this part for a
period of more than 3 years.
``SEC. 554. APPLICATIONS.
``(a) Applications.--(1) Any eligible entity desiring to
receive an award under this part shall submit an application
to the Secretary, at such time, in such manner, and
containing such information as the Secretary may require.
``(2) Each such application shall include--
``(A) a description of the partnership's plan for systemic
change in education, and a description of the activities and
services for which assistance is sought;
``(B) an identification of the preschool, elementary, or
secondary school, or schools, that will operate as teaching
schools;
``(C) assurances that in establishing the teaching schools,
the applicant has consulted with teachers, administrators,
and parents who will be affected at the teaching school site;
``(D) an identification of the institution, or
institutions, of higher education that will be the partner in
each teaching school and a description of each institution's
capacity to engage in education innovation;
``(E) a statement of the goals to be achieved during the
initial period of the award including a statement of the
partnership's understanding of and commitment to higher
quality teaching and learning;
``(F) a plan for monitoring progress and evaluating the
effectiveness of the teaching school in meeting the goals it
has developed for teacher and student performance; and
``(G) estimates of the number of prospective and beginning
teachers to be trained in the teaching school in each year of
the project and assurances that a significant number of
prospective and beginning teachers will be trained in the
teaching school in each year of the project.
``(b) Priorities.--In making awards under this part, the
Secretary shall give priority to applicants that--
``(1) select teaching school sites based on need, as
evidenced by such measures as a high rate of teacher
attrition or a high proportion of the student body at risk of
educational failure;
``(2) propose projects that demonstrate the strong
commitment to or previous active support for educational
innovation;
``(3) propose projects that demonstrate collaboration with
other educational organizations, social or human service
agencies, other community organizations, and the business
community in the teaching school's operation;
``(4) demonstrate potential for a significant impact on the
quality of the future education work force; and
``(5) demonstrate the long-term feasibility of the
partnership.
``(c) Special Rules.--An application from a partnership
must describe--
``(1) how the State will assist the partnership by
addressing the need to change or waive a State rule or
regulation that is found by a teaching school to impede the
school's progress in achieving its goals;
``(2) how the local educational agency will address the
need to change or waive a local rule or regulation that is
found by a teaching school to impede the school's progress in
achieving its goals; and
``(3) how partners that are institutions of higher
education will involve the School of Education, the School of
Arts and Sciences, and the School of Technology or
Engineering and any other department of the institution.
``SEC. 555. USES OF FUNDS.
``(a) Uses of Funds.--
``(1) Applicants may use funds awarded under this part for
the planning, establishment, and operation of teaching
schools, including--
``(A) staff development;
``(B) purchase of books, materials, and equipment,
including new technology;
``(C) minor remodeling;
``(D) payment of personnel directly related to the
operation of the teaching school program;
``(E) participation in the activities of a network of
teaching schools;
``(F) other costs incidental to planning establishing, or
operating teaching schools; and
``(G) the evaluation component required in section
533(c)(1)(B).
``(2) The Secretary may limit the amounts of funds that may
be used for minor remodeling and the purchase of equipment
under this part.
``(b) Authorized Activities.--Teaching schools shall use
funds under this part for the following activities:
``(1) Training activities for prospective teachers in the
school setting.
``(2) Internship training and other induction activities
for prospective and beginning teachers.
``(3) Activities to integrate academic and vocational
education.
``(4) Training and other activities to promote the
continued learning of experienced teachers, especially in
their subject matter knowledge and how to teach it.
``(5) Participation of experienced teachers in the
internship training and assessment of prospective and
beginning teachers.
``(6) Participation of higher education faculty with
expertise in pedagogy in the school-based training and
continuing development of teachers.
``(7) Activities designed to increase beginning and
experienced teachers' understanding and use of research
findings.
``(8) Participation of expert practicing teachers and
administrators in the university-based education studies of
prospective teachers.
``(9) Participation of faculty with expertise in the
liberal arts and sciences in the training of prospective and
beginning teachers and in the continuing development of
experienced teachers.
``(10) Experimentation and research conducted in the school
by teachers and university faculty to improve teaching and
learning.
``(11) Activities designed to disseminate information about
the lessons learned in the teaching school with other
teachers in the district's schools.
``(12) Organizational restructuring, including the
introduction of new roles and staffing patterns in the school
and university.
``(13) Efforts to link the school and its neighborhood and
community to ensure that children are ready to learn when
they come to school.
``(14) Activities intended to address the effects of
chronic community violence, such as violence counseling and
conflict resolution training.
``(15) Training and leadership development of personnel in
order to prepare them to assume new roles.
[[Page 497]]
``(16) New technologies to enhance instruction and
management.
``(17) Efforts to strengthen linkages between schools,
universities and education agencies and the business
community, so as to improve the transition of students into
the workplace.
``(18) Other activities proposed by the applicant and
approved by the Secretary.
``SEC. 556. RESERVATION OF FUNDS; COST SHARING.
``(a) Reservations.--The Secretary is authorized to reserve
up to 3 percent of the amount appropriated for each fiscal
year under section 502(c)(3) to--
``(1) study the planning and evaluate implementation
processes and the results of the teaching schools established
under this program;
``(2) disseminate findings of such studies and evaluations
to researchers, practitioners, policy makers, and parents;
``(3) provide technical assistance to teaching schools; and
``(4) support the development of a network or networks of
teaching schools.
``(b) Cost Sharing.--The Federal share of the cost of the
activities set forth in an approved application for a one-
year planning or implementation grant shall be 50 percent.
``SEC. 557. DEFINITIONS.
``For the purpose of this subpart, the term `teacher'
includes elementary and secondary school classroom teachers,
and preschool and early childhood education specialist.
``Subpart 4--Teacher Opportunity Corps
``SEC. 561. PURPOSE.
``It is the purpose of this subpart to encourage
institutions of higher education to offer educational
programs and financial assistance that would enable
paraprofessionals working in shortage area schools serving
disadvantaged students to become certified or licensed
teachers.
``SEC. 562. DEFINITIONS.
``For the purpose of this subpart--
``(1) the term `certified or licensed teacher' means an
individual who possesses a document certifying that the
individual has met the requirements of a State for employment
as a teacher in the public schools of that State (including
individuals who have been certified as specialists in
preschool and early childhood education);
``(2) the term `shortage area' means (A) an area the
Secretary has designated as an area with a shortage of
elementary and secondary school teachers, or (B) a shortage
in a designated subject area, under section 530 of this Act;
``(3) the term `chapter 1' means chapter 1 of title I of
the Elementary and Secondary Education Act of 1965; and
``(4) the term `paraprofessional' means an individual with,
at least, a high school diploma or recognized equivalent who
is employed in a preschool or elementary or secondary school
under the supervision of a certified teacher to assist in
providing instruction, which may include (but is not limited
to) bilingual education, special education, and migrant
education.
``SEC. 563. ALLOCATION AMONG STATES.
``From the sums appropriated for this subpart pursuant to
section 502(c)(4) for any fiscal year, the Secretary shall
allocate to any State an amount which bears as nearly as
possible the same ratio to such sums as the allocation of
funds under part A of chapter 1 in that State bears to the
total allocation of funds under part A of chapter 1 in all
States receiving grants under this subpart, except that no
State grant shall be less than $500,000 in any fiscal year.
``SEC. 564. AGREEMENTS.
``Each State receiving a grant authorized by this subpart
shall enter into an agreement with the Secretary. Each such
agreement shall include provisions designed to ensure that--
``(1) the State educational agency or the State agency
which administers subpart 4 of part A of title IV, relating
to State student incentive grants, will administer the
program authorized by this subpart in the State;
``(2) the State educational agency or higher education
agency will use no more than 5 percent of the grant it
receives to cover administrative expenses; and
``(3) the State educational agency or higher education
agency will keep such records and provide such information to
the Secretary as may be required for fiscal audit and program
evaluation, consistent with the responsibilities of the
Secretary.
``SEC. 565. STATE GRANT APPLICATIONS.
``(a) Authority.--The Secretary is authorized to make
grants to the States to support programs at institutions of
higher education that serve the purposes of this subpart.
``(b) Submission of Applications.--In order to receive a
grant under this subpart, a State shall submit an application
at such time or times, in such manner, and containing such
information as the Secretary may prescribe by regulation.
Such application shall set forth a program of activities for
carrying out the purposes set forth in this subpart in such
detail as will enable the Secretary to determine the degree
to which such program will accomplish such purposes and such
other policies, procedures, and assurances as the Secretary
may require by regulation.
``SEC. 566. GENERAL CRITERIA FOR STATE GRANTS.
``(a) Grant Requirements.--The following criteria shall
apply to each State grant made under this subpart:
``(1) The grant shall ensure the involvement of
institutions of higher education and schools or local
educational agencies that are located in shortage areas.
``(2) The grant shall ensure that all regular and
developmental credit-bearing courses taken in educational
programs offered under this subpart are fully creditable to a
baccalaureate or graduate program leading to teacher
certification or licensure.
``(3) The grant shall require that any paraprofessional who
receives student financial assistance under this subpart
enter into an agreement under which the paraprofessional
shall--
``(A) within the 10-year period after completing the
postsecondary education for which the assistance was
provided, act as an educational professional or a
paraprofessional in a shortage area school for a period of
not less than one year for each full-time academic year or
equivalent for which the assistance was received;
``(B) provide to the State evidence of compliance with
subparagraph (A); and
``(C) repay all or part of the student financial assistance
received under this subpart, plus interest and reasonable
collection costs (if applicable), in the event that the
paraprofessional fails to comply with the conditions of
subparagraph (A), in accordance with the regulations
prescribed by the Secretary under section 527 and except in
the circumstances provided in section 528.
``(4) The amount of scholarship awarded under this subpart
shall be reduced by the amount that the scholarship exceeds
the student's cost of attendance, as defined in section 472.
A scholarship awarded under this subpart shall not be reduced
on the basis of the student's receipt of other forms of
Federal student financial assistance but shall be taken into
account in determining the eligibility of the student for
those other forms of Federal student financial assistance.
``(5) The grant shall establish a system for the evaluation
of the programs conducted.
``(b) Duration of Grant.--Each grant under this subpart
shall be for a term of no less than 5 years, subject to the
availability of appropriations.
``(c) Uses of Funds.--Funds made available under this
subpart to any State may be used for--
``(1) providing student financial assistance to
paraprofessionals to pay part or all of the costs of
attendance (as determined under section 472);
``(2) instructional and supportive services for such
paraprofessionals during participation in such programs; and
``(3) child care expenses as provided in paragraph (7) of
such section in programs of postsecondary education required
for teacher certification or licensure.
``Subpart 5--National Job Bank for Teacher Recruitment
``SEC. 571. STUDY.
``The Secretary, through the Office of Educational Research
and Improvement, shall conduct a study on the feasibility
of--
``(1) establishing a clearinghouse to operate a national
teacher job bank; or
``(2) establishing regional clearinghouses to operate
regional teacher job banks.
``SEC. 572. NATIONAL TEACHER JOB BANK DEMONSTRATION.
``(a) Program Authorized.--The Secretary, through the
Office of Educational Research and Improvement, shall
contract with one or more State entities, nonprofit
organizations, or institutions of higher education to
establish a National or Regional Teacher Job Bank
Clearinghouse which shall--
``(1) assist local educational agencies and private schools
in locating qualified applicants for teaching-related
positions; and
``(2) help individuals in locating teaching-related jobs or
the training necessary to enter the teaching profession or
the field of early childhood or preschool education.
``(b) Application Required.--Each entity desiring to enter
into a contract with the Secretary for the establishment of a
Teacher Job Bank Clearinghouse shall submit an application to
the Secretary at such time, in such manner and accompanied by
such information as the Secretary may reasonably require.
Each such application shall include--
``(1) a demonstration of the applicant's capacity to
efficiently and effectively handle a large volume of
inquiries from employers and potential employees;
``(2) a demonstration of support from local educational
agencies and private schools and institutions of higher
education that are likely to use the services provided by the
Teacher Job Bank Clearinghouse; and
``(3) a demonstration of ability to provide prospective
teachers with information either directly or by contract with
another entity regarding the certification and licensure
requirements of each State which is served by a clearinghouse
and procedures for assisting out-of-State teachers to meet
State certification requirements.
``(c) Priority.--The Secretary shall give priority to
applications submitted pursuant to paragraph (1) which--
``(1) demonstrate the ability to serve a region of the
United States and involve the cooperation of several State
educational agencies and institutions of higher education; or
``(2) demonstrate an ability to address shortages of
teachers, such as teachers from minority groups, special
education teachers, bilingual teachers, or individuals
planning to teach in subject areas, geographical areas, or
types of schools with shortages.
``SEC. 573. USE OF FUNDS.
``Each entity, organization, or institution receiving funds
under this subpart may use such funds to--
[[Page 498]]
``(1) develop, in consultation with local education
agencies and other appropriate entities, standardized initial
application forms for teaching jobs and related positions,
and standardized forms and procedures for announcing
available teaching positions;
``(2) coordinate and assist State and local teacher
recruitment efforts;
``(3) publish and disseminate information about
opportunities for teacher employment and teacher training;
``(4) maintain a system for matching available teachers
with job openings for which they are qualified and for
tracking the supply of teachers and the demand for teachers
among the States;
``(5) encourage the development of programs to recruit and
train minorities and individuals with disabilities to become
teachers;
``(6) assist employers in checking the background of
applicants;
``(7) publicize the availability of scholarships, loans,
and other programs that assist individuals wishing to pursue
a teaching career;
``(8) assist employers in the development of effective
teacher recruitment programs;
``(9) assist in developing reciprocal agreements on teacher
certification among States; and
``(10) conduct such other activities and services necessary
to carrying out the purposes of this subpart in accordance
with the provisions of this subpart.
``SEC. 574. DEFINITION.
``For the purposes of this subpart, the term `teacher'
includes elementary and secondary school classroom teachers,
and preschool and early childhood education specialists.
``Subpart 6--Midcareer Teacher Training for Nontraditional Students
``SEC. 581. STATEMENT OF PURPOSE.
``It is the purpose of this subpart to encourage
institutions of higher education with schools or departments
of education to establish and maintain programs that will
provide teacher training to individuals who are moving to a
career in education from another occupation. This is
particularly important for women and minorities who are
underrepresented in the fields of science and mathematics.
``SEC. 582. SELECTION OF PROCEDURES.
``From the funds available for this subpart, the Secretary
shall make grants to institutions of higher education on the
basis of the competitive selection among qualifying
applications. Institutions selected as recipients shall be
awarded (1) an initial planning grant for use during the
first 2 fiscal years after selection, and (2) for
institutions demonstrating successful performance with the
planning grant, a renewal grant for use during not more than
2 additional years.
``SEC. 583. APPLICATIONS.
``(a) Contents of Applications.--Applications for grants
under this subpart shall demonstrate that--
``(1) the applicant will establish and maintain a program
of midcareer teacher retraining designed to prepare
individuals for teacher certification requirements who
already have a baccalaureate or advanced degree and job
experience in education-related fields of study, including
preschool and early childhood education and special
education, and to prepare teachers in the fields of science
and mathematics;
``(2) the applicant has designed a program which includes
at least the following elements:
``(A) a screening mechanism to ensure that individuals who
are admitted to the program possess the current subject
matter knowledge and the characteristics that would make them
likely to succeed as classroom teachers;
``(B) a clear set of program goals and expectations which
are communicated to participants; and
``(C) a curriculum that, when successfully completed, will
provide participants with the skills and credentials needed
to teach in specific subject areas, as well as a realistic
perspective on the educational process;
``(3) the program has been developed with the cooperation
and assistance of the local business community;
``(4) the program will be operated under a cooperative
agreement between the institution and one or more State or
local educational agencies; and
``(5) the program will be designed and operated with the
active participation of qualified classroom teachers,
including special education and early childhood education
specialists, and specialists in science and mathematics and
will include an inservice training component and follow-up
assistance.
``(b) Review of Applications.--Applications for grants
under this subpart shall be reviewed by a panel of experts in
teacher training designated by the Secretary. The Secretary
shall, to the extent of available funds, select at least one
applicant from each of the 10 regions served by the
Department and ensure that programs offered reflect all
significant areas of national need in which shortages exist.
``SEC. 584. AMOUNT OF GRANTS.
``The initial planning grant to an institution of higher
education under this part shall not exceed $100,000 for the 2
years for which it is available. The renewal grant to an
institution under this part shall not exceed $50,000 for each
of the 2 years for which it is available.
``SEC. 585. REPORTS AND INFORMATION.
``Each institution of higher education that receives a
grant under this subpart shall submit to the Secretary such
reports and other information on the program it conducts
under this subpart as the Secretary deems necessary. The
Secretary shall disseminate such information to other
institutions of higher education for the purpose of promoting
greater use of midcareer teacher training programs without
direct Federal financial assistance.
``Subpart 7--Alternative Routes to Teacher Certification and Licensure
``SEC. 586. SHORT TITLE.
``This subpart may be cited as the `Alternative Routes to
Teacher Certification and Licensure Act of 1991'.
``SEC. 587. FINDINGS.
``The Congress finds that--
``(1) effective elementary and secondary schools require
competent teachers and strong leadership;
``(2) school systems would benefit greatly by increasing
the pool of qualified individuals from which to recruit
teachers;
``(3) many talented professionals who have demonstrated a
high level of subject area competence outside the education
profession may wish to pursue careers in education, but have
not fulfilled the requirements to be certified or licensed as
teachers;
``(4) alternative routes can enable qualified individuals
to fulfill State certification or licensure requirements and
would allow school systems to utilize the expertise of such
professionals and improve the pool of qualified individuals
available to local educational agencies as teachers; and
``(5) alternative routes to certification or licensure
requirements that do not exclude qualified individuals from
teaching solely because such individuals do not meet
traditional certification or licensure requirements would
allow school systems to take advantage of these professionals
and improve the supply of well-qualified teachers.
``SEC. 588. PURPOSE.
``It is the purpose of this subpart to improve the supply
of well-qualified elementary and secondary school teachers by
encouraging and assisting States to develop and implement
programs for alternative routes to teacher certification or
licensure requirements. Such programs shall place special
emphasis on the participation of individuals who are members
of minority groups.
``SEC. 589. ALLOTMENTS.
``(a) In General.--(1) From the amount appropriated to
carry out this part, the Secretary shall allot to each State
the lesser of either the amount the State applies for under
section 590 or an amount that is proportional to the State's
share of the total population of children ages five through
seventeen in all the States (based on the most recent data
available that is satisfactory to the Secretary).
``(2) If a State does not apply for its allotment, or the
full amount of its allotment, under the preceding paragraph,
the Secretary may reallocate the excess funds to one or more
other States that demonstrate, to the satisfaction of the
Secretary, a current need for the funds.
``(b) Special Rule.--Notwithstanding section 412(b) of the
General Education Provisions Act, funds awarded under this
subpart shall remain available for obligation by a recipient
for a period of two calendar years from the date of the
grant.
``SEC. 590. STATE APPLICATIONS.
``(a) In General.--Any State desiring to receive a grant
under this subpart shall, through the State educational
agency, submit an application at such time, in such manner,
and containing such information, as the Secretary may
reasonably require.
``(b) Requirements.--Each application shall--
``(1) describe the programs, projects, and activities to be
undertaken; and
``(2) contain such assurances as the Secretary considers
necessary, including assurances that--
``(A) assistance provided to the State educational agency
under this subpart will be used to supplement, and not to
supplant, any State or local funds available for the
development and implementation of programs to provide
alternative routes to fulfilling teacher certification or
licensure requirements;
``(B) the State educational agency has, in developing and
designing the application, consulted with--
``(i) representatives of local educational agencies,
including superintendents and school board members, including
representatives of their professional organizations where
applicable;
``(ii) elementary and secondary school teachers, including
representatives of their professional organizations;
``(iii) institutions of higher education with schools or
departments of education;
``(iv) parents; and
``(v) other interested organizations and individuals; and
``(C) the State educational agency will submit to the
Secretary, at such time as the Secretary may specify, a final
report describing the activities carried out with assistance
provided under this part and the results achieved.
``(c) GEPA Provisions Inapplicable.--Sections 435 and 436
of the General Education Provisions Act, except to the extent
that such sections relate to fiscal control and fund
accounting procedures, shall not apply to this part.
``SEC. 591. USE OF FUNDS.
``(a) In General.--(1) A State educational agency shall use
assistance provided under this subpart to support programs,
projects, or activities that develop and implement
[[Page 499]]
new, or expand and improve existing, programs that enable
individuals to move to a career in education from another
occupation through an alternative route to teacher
certification or licensure.
``(2) A State educational agency may carry out such
programs, projects, or activities directly, through
contracts, or through grants to local educational agencies,
intermediate educational agencies, institutions of higher
education, or consortia of such agencies.
``(b) Uses of Funds.--Funds received under this subpart may
be used for--
``(1) the design, development, implementation, and
evaluation of programs that enable qualified professionals
who have demonstrated a high level of subject area competence
outside the education profession and are interested in
entering the education profession to fulfill State
certification or licensure requirements;
``(2) the establishment of administrative structures
necessary for the development and implementation of programs
to provide alternative routes to fulfilling State
requirements for certification or licensure;
``(3) training of staff, including the development of
appropriate support programs, such as mentor programs, for
teachers entering the school system through alternative
routes to teacher certification or licensure;
``(4) the development of recruitment strategies;
``(5) the development of reciprocity agreements between or
among States for the certification or licensure of teachers;
and
``(6) other appropriate programs, projects, and activities
designed to meet the objectives of this part.
``SEC. 592. COORDINATION REQUIREMENT.
``As appropriate, State educational agencies receiving
assistance under this subpart shall coordinate activities
with those undertaken pursuant to subpart 6 of this title.
``SEC. 593. DEFINITION.
``For purposes of this subpart, the term `State' means each
of the 50 States, the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, Guam, American Samoa, the
Northern Mariana Islands, and Palau (until the Compact of
Free Association with Palau takes effect pursuant to section
101(a) of Public Law 99-658).
``Subpart 8--Training for Teachers of Drug-Exposed Children
``SEC. 594. PROGRAM AUTHORIZED.
``(a) General Authority.--From the funds appropriated to
carry out this subpart, the Secretary may make grants to
schools of education at institutions of higher education to
support the development and instruction in the use of
curricula and instructional materials that provide teachers
and other education personnel with effective strategies for
educating drug-exposed children. In selecting schools for
receipt of grants under this subpart, the Secretary shall
give priority to schools located in or near communities with
a significant drug problem as indicated by a large number or
rate of--
``(1) arrests for, or while under the influence of drugs;
``(2) infants born prenatally exposed to drugs;
``(3) drug-exposed children of preschool or school age; or
``(4) other appropriate data, as determined by the
Secretary.
``(b) Conditions for Grant Assistance.--Any recipient of a
grant under this section shall agree, as a condition to
receipt of such grant, to disseminate the curricula and
materials developed with funds provided under this subpart by
either or both of the following methods:
``(1) Instruction of teachers and other education personnel
from schools within the State in which the grant recipient is
located.
``(2) Designation of personnel of the grant recipient to
serve as consultants to such schools for the dissemination of
such curricula and materials.
``(c) Clearinghouse.--(1) The Secretary shall establish a
clearinghouse to compile and make available the curricula and
instructional materials developed with funds provided under
this subpart. The clearinghouse shall make available--
``(A) implementable curriculum plans for educational
personnel in classroom and other school settings;
``(B) curriculum plans for schools of education in
institutions of higher education that describe drug-exposed
children's characteristics and strategies for educating drug-
exposed children; and
``(C) other information concerning the characteristics of
drug-exposed children and effective strategies for educating
such children.
``(2) The Secretary shall consult with the Secretary of
Health and Human Services concerning the curricula,
materials, and information to be made available through the
clearinghouse. The Secretary shall effectively notify State
and local educational agencies concerning the availability of
such curricula, materials, and information from the
clearinghouse.
``Subpart 9--Teacher Recruitment and Placement
``SEC. 594A. PROGRAM AUTHORIZED.
``(a) Grants Authorized.--The Secretary is authorized, in
accordance with the provisions of this subpart, to make
grants to institutions of higher education with schools or
departments of education to pay the Federal share of
developing and carrying out programs designed to--
``(1) recruit, prepare, and train students to become
elementary and secondary school teachers; and
``(2) place the students as teachers in urban and rural
public or private nonprofit elementary or secondary schools
where at least 50 percent of students enrolled are from
minority groups.
``(b) Special Consideration.--The Secretary is authorized,
in making grants under this subpart, to give special
consideration to historically Black colleges and
universities.
``SEC. 594B. USE OF FUNDS.
``Grants under this subpart may be used for the costs of
developing and carrying out the program of teacher
recruitment, preparation, training, and placement described
in section 594A.
``SEC. 594C. APPLICATION.
``No grant may be made under this subpart unless an
application is made by the institution of higher education at
such time, in such manner, and containing or accompanied by
such information as the Secretary may reasonably require.
``SEC. 594D. FEDERAL SHARE.
``(a) In General.--Except as provided in subsection (b),
the Federal share for each fiscal year shall be 75 percent.
``(b) Performance Incentive.--In any fiscal year beginning
after September 30, 1993, the Secretary may, based upon
evaluation and monitoring of programs assisted under this
subpart, increase the Federal share for a recipient of funds
under this subpart for the succeeding fiscal year to 85
percent, if the Secretary determines that there is
demonstrated success in the operation of the program assisted
by such recipient.
``Subpart 10--Partnerships for Encouraging Minority Students to Become
Teachers
``SEC. 595A. PROGRAM AUTHORIZED.
``(a) In General.--The Secretary is authorized, in
accordance with the provisions of this subpart, to make
grants to partnerships comprised of institutions of higher
education and local educational agencies for developing and
carrying out programs designed to identify and encourage
minority students in the 7th through the 12th grades to
aspire to, and to prepare for, careers in elementary and
secondary school teaching.
``(b) Consortia Grants Authorized.--The Secretary is
authorized in accordance with this subpart, to make grants to
consortia of institutions of higher education which have a
demonstrated record and special expertise in the program
authorized by this subpart and have entered a partnership
agreement in accordance with section 595B.
``(c) Selection Criteria.--In making grants under this
subpart, the Secretary shall approve applications which
contain provision for projects designed to carry out the
purposes described in subsection (a) and which include--
``(1) college entry preparation;
``(2) remedial programs;
``(3) teaching mentors;
``(4) motivational activities;
``(5) tutoring;
``(6) teaching skill development;
``(7) future teacher clubs;
``(8) guidance in curriculum selection; and
``(9) instruction in test-taking skills.
``SEC. 595B. PARTNERSHIP AGREEMENT.
``(a) In General.--To be eligible for a grant under this
subpart, an institution of higher education and a local
educational agency must enter into a written partnership
agreement. A partnership may include other public agencies or
private organizations. All partners shall sign the agreement.
``(b) Contents of Agreement.--The agreement shall include--
``(1) a listing of all participants in the partnership;
``(2) a description of the responsibilities of each
participant in the partnership; and
``(3) a listing of the resources, if any, to be contributed
to the partnership.
``SEC. 595C. APPLICATION.
``(a) Application Required.--A partnership desiring to
receive a grant under this subpart shall submit an
application to the Secretary.
``(b) Contents of Application.--The application shall
include--
``(1) the written and signed partnership agreement required
by section 595B;
``(2) a listing of the elementary, if applicable, and
secondary schools of the local educational agency to be
involved in the program assisted under this subpart; and
``(3) a description of the services and activities to be
offered under the program assisted under this subpart; and
``(4) such additional information and assurances as the
Secretary may reasonably require.
``Subpart 11--Veterans Teacher Corps
``SEC. 596A. STATEMENT OF PURPOSE.
``It is the purpose of this subpart to provide assistance
to local educational agencies to establish programs to inform
United States military veterans of teaching opportunities and
to provide assistance in the establishment of teaching
opportunities for the individuals described in this section.
``SEC. 596B. VETERANS TEACHER CORPS AUTHORIZED.
``(a) Program Authorized.--The Secretary is authorized, in
accordance with the provisions of this subpart, to make
grants to local educational agencies to conduct Veterans
Teachers Corps activities.
``(b) Activities Authorized.--Grants under this subpart may
be used, in accordance with applications approved under
section 596C for--
``(1) planning and implementation of informational and
outreach programs leading to the development of programs
specifically de-
[[Page 500]]
signed to inform United States military veterans about
teaching opportunities and the qualifications necessary for
such opportunities;
``(2) planning and implementation of programs leading to
the creation of teaching opportunities for such veterans;
``(3) support for programs to assist such veterans and to
meet the qualifications to become teachers;
``(4) disseminating information on the Veterans Teacher
Corps program and on sources of students financial assistance
available under title IV of this Act and under programs
administered by the Department of Veterans Affairs and other
Federal agencies; and
``(5) from not more than 65 percent of the funds received
under this subpart, make scholarships available to such
military veterans under the same terms and conditions
specified in subpart 1 of part B of this subtitle.
``SEC. 596C. APPLICATIONS.
``Each local educational agency desiring a grant under this
subpart shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may reasonably require. Each such application
shall--
``(1) describe the local educational agency's plan for
disseminating information regarding teaching opportunities
and necessary qualifications;
``(2) provide an estimate of the number of United States
military veterans in the jurisdiction of the agency;
``(3) describe any commitments of support for the program
from United States military veterans groups;
``(4) describe in detail the activities to be supported
with the grant, including, the specific identification of the
personnel to administer the program, the procedures to be
used, in awarding scholarships under this subpart, the
methodologies to be used for information dissemination, and a
timetable for implementation of the program; and
``(5) contain such other assurances and other information
as the Secretary may reasonably require.
``SEC. 596D. LIMITATIONS ON AMOUNT AND DURATION OF
ASSISTANCE.
``Each grant awarded pursuant to this subpart to establish
and operate a Veterans Teacher Corps program shall be for a
period of 5 years and shall be for not less than $250,000 for
each fiscal year.
``SEC. 596E. PRIORITY IN AWARDS.
``In awarding grants under this subpart, the Secretary
shall give priority to applications evidencing commitments of
support for the program from veterans and teacher
organizations in the jurisdiction of the applicant.
``SEC. 596F. REPORTS AND INFORMATION.
``Each recipient of funds under this subpart shall provide
the Secretary with a report and detailed description of the
activities supported with funds received. Such report shall
include an evaluation of the success of the program and such
recommendations as the grantee deems appropriate.
``PART D--FOREIGN LANGUAGE INSTRUCTION
``Subpart 1--Demonstration Grants for Critical Language and Area
Studies
``SEC. 597A. DEMONSTRATION GRANTS FOR CRITICAL LANGUAGE AND
AREA STUDIES.
``(a) Program Authority.--The Secretary is authorized to
make demonstration grants to eligible consortia to enable
such eligible consortia to--
``(1) operate critical language and area studies programs;
``(2) develop and acquire educational equipment and
materials; and
``(3) develop teacher training programs, texts, curriculum,
and other activities designed to improve and expand the
instruction of foreign languages at elementary and secondary
schools across the Nation.
``(b) Grant Limitation.--The Secretary shall not award a
grant which exceeds $2,000,000 to an eligible consortium
under this section in any fiscal year, but shall award grants
of sufficient size, scope and quality for a program of
comprehensive instruction of foreign languages.
``(c) Special Rules.--
``(1) Priority.--In awarding grants under this section, the
Secretary shall give priority to eligible consortia with
demonstrated, proven effectiveness in the field of critical
language and area studies and which have been in existence
for at least 1 year prior to applying for a grant under this
section.
``(2) Equitable distribution.--In awarding grants under
this section, the Secretary shall take into consideration
providing an equitable geographic distribution of such grants
among the regions of the United States.
``(3) Program requirement.--Each eligible consortium
receiving a grant under this section shall include in the
activities assisted pursuant to such grant, a study abroad or
cultural exchange program.
``(d) Eligible Consortium.--
``(1) In general.--For the purposes of this section, the
term `eligible consortium' means a cooperative effort between
entities in one or more States that must include at least 4
schools, of which--
``(A) one shall be an institution of higher education;
``(B) one shall be a secondary school with experience in
teaching critical languages;
``(C) one shall be a secondary school with experience in
teaching critical languages and in which at least 25 percent
of the students are eligible to be counted under chapter 1 of
title I of the Elementary and Secondary Education Act of
1965; and
``(D) one shall be a secondary school in which at least 25
percent of the students are eligible to be counted under
chapter 1 of title I of the Elementary and Secondary
Education Act of 1965.
``(2) Nonprofit organizations.--Each eligible consortium
described in paragraph (1) may include a nonprofit
organization to provide services not otherwise available from
the entities described in paragraph (1).
``(e) Administration.--Each eligible consortium receiving a
grant under this section may use not more than 10 percent of
such grant for administrative expenses.
``(f) Application.--
``(1) In general.--Except as provided in paragraph (2),
each eligible consortium desiring a grant under this section
shall submit an application to the Secretary at such time, in
such manner and accompanied by such information as the
Secretary may reasonably require.
``(2) Special rule.--The State educational agency or State
higher education agency responsible for the supervision of
any one school participating in an eligible consortium may
submit the application described in paragraph (1) on behalf
of such eligible consortium.
``(g) Definitions.--For purposes of this section the term
`critical language' means each of the languages contained in
the list of critical foreign languages designated by the
Secretary pursuant to section 212(d) of the Education for
Economic Security Act (50 Federal Register 149, 31413).
``Subpart 2--Development of Foreign Language and Culture Instructional
Materials
``SEC. 597B. DEVELOPMENT OF FOREIGN LANGUAGE AND CULTURE
INSTRUCTIONAL MATERIALS.
``(a) Grants Authorized.--The Secretary of Education is
authorized to provide grants on a competitive basis to
qualified State and local educational agencies, institutions
of higher education, private nonprofit foreign language
organization, nonprofit education associations, or a
consortium thereof, to enable such entity or entities to act
as a resource center for--
``(1) coordinating the development of and disseminating
foreign language and culture instructional material,
including children's literature in foreign languages,
videotapes and computer software, and teacher's instructional
kits relating to international study; and
``(2) encouraging the expanded use of technology in
teaching foreign languages and culture at the elementary
school level and, when the needs of elementary schools have
been met, at the secondary school level, with a particular
emphasis on expanding the use of technology in teaching
foreign languages and culture at elementary and secondary
schools that have proportionally fewer resources available
for teaching foreign languages and cultures, including
schools in urban and rural areas.
``(b) Coordination.--In developing materials and
technologies under this section, the Secretary shall, where
appropriate, make use of materials and technologies developed
under the Star Schools Assistance Program Act.''.
(b) Expiration Date.--Effective July 1, 1995, the
Alternative Routes to Teacher Certification and Licensure Act
of 1991 (as contained in subpart 7 of part C of title V of
the Higher Education Act of 1965) is repealed.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
SEC. 601. REVISION OF TITLE VI.
Title VI of the Act is amended to read as follows:
``TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
``PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES
``SEC. 601. FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds that--
``(1) the well-being of the United States, its economy and
long-range security, is dependent on the education and
training of Americans in international and foreign language
studies and on a strong research base in these areas;
``(2) knowledge of other countries and the ability to
communicate in other languages is essential to the promotion
of mutual understanding and cooperation among nations; and
``(3) present and future generations of Americans must be
afforded the opportunity to develop to the fullest extent
possible their intellectual capacities in all areas of
knowledge.
``(b) Purposes.--It is the purpose of this part to assist
in the development of knowledge, international study,
resources and trained personnel, to stimulate the attainment
of foreign language acquisition and fluency, to develop a
pool of international experts to meet national needs, and to
coordinate the programs of the Federal Government in the
areas of foreign language, area and other international
studies, including professional international affairs
education and research.
``SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA
CENTERS.
``(a) National Language and Area Centers Authorized.--(1)
The Secretary is authorized--
``(A) to make grants to institutions of higher education,
or combinations thereof, for the purpose of establishing,
strengthening, and operating comprehensive language and area
centers and programs; and
``(B) to make grants to such institutions or combinations
for the purpose of establishing,
[[Page 501]]
strengthening, and operating a diverse network of
undergraduate language and area centers and programs,
which will be national resources for teaching of any modern
foreign language, for instruction in fields needed to provide
full understanding of areas, regions, or countries in which
such language is commonly used, for research and training in
international studies, and the international and foreign
language aspects of professional and other fields of study,
and for instruction and research on issues in world affairs
which concern one or more countries.
``(2) Authorized Activities.--Any such grant may be used to
pay all or part of the cost of establishing or operating a
center or program, including--
``(A) the cost of faculty, staff, and student travel in
foreign areas, regions, or countries,
``(B) the cost of teaching and research materials,
``(C) the cost of curriculum planning and development,
``(D) the cost of bringing visiting scholars and faculty to
the center to teach or to conduct research,
``(E) the cost of establishing and maintaining linkages
with overseas institutions of higher education and other
organizations that may contribute to the educational
objectives of this section for the purpose of contributing to
the teaching and research of the center or program,
``(F) the cost of training and improvement of the staff,
for the purpose of, and subject to such conditions as the
Secretary finds necessary, for carrying out the objectives of
this section, and
``(G) subject to such conditions as the Secretary finds
necessary, for carrying out the objectives of this section.
``(3) Grants to Maintain Library Collections.--The
Secretary may make grants to centers described in paragraph
(1)(A) having important library collections for the
maintenance of such collections.
``(4) Outreach Grants and Summer Institutes.--The Secretary
may make additional grants to centers designated in paragraph
(1)(A) for any one or combination of the following purposes:
``(A) Programs of linkage or outreach between foreign
language, area studies, and other international fields and
professional schools and colleges.
``(B) Programs of linkage or outreach with 2 and 4-year
colleges and universities.
``(C) Programs of linkage or outreach with departments or
agencies of State and Federal Governments.
``(D) Programs of linkage or outreach with the news media,
business, professional, or trade associations.
``(E) Summer institutes in foreign area and other
international fields designed to carry out the programs of
linkage and outreach in subparagraphs (A), (B), (C), and (D)
of this paragraph.
``(b) Stipends for Foreign Language and Area Studies.--
``(1)(A) Graduate stipends.--The Secretary is authorized to
make grants to institutions of higher education or
combinations of such institutions for the purpose of paying
stipends to individuals undergoing advanced training in any
center or program approved by the Secretary under this part.
``(B) Stipend recipients shall be individuals who are
engaged in an instructional program with stated performance
goals for functional foreign language use or in a program
developing such performance goals, in combination with area
studies, international studies, or the international aspects
of a professional studies program.
``(C) Stipends awarded to graduate level recipients may
include allowances for dependents and for travel for research
and study in the United States and abroad.
``(2) Doctoral stipends.--(A) The Secretary is authorized
to make grants to institutions of higher education or
combinations of such institutions for the purpose of paying
stipends to students beginning with their third year of
graduate training in any center or program approved by the
Secretary under this part.
``(B) Stipends recipients shall be individuals engaged in
completing advanced degree requirements in foreign language,
foreign area studies, or other international fields.
``(C) Stipends shall be for the purpose of completing
degree requirements, such as the predissertation level
studies, preparation for dissertation research including the
study of less commonly taught languages, dissertation
research abroad, and dissertation writing.
``(D) Stipends may be held up to a maximum of 4 years
contingent upon satisfactory progress towards completion of
the degree program.
``(3) Funding limitations.--The Secretary is not authorized
to make awards under paragraph (2) for any fiscal year unless
the amount made available under paragraph (1) for such fiscal
year equals or exceeds the current services equivalent of the
level of funding during fiscal year 1991 under paragraph (1).
``(c) Special Rule With Respect to Travel.--No funds may be
expended under this part for undergraduate travel except in
accordance with rules prescribed by the Secretary setting
forth policies and procedures to assure that Federal funds
made available for such travel are expended as part of a
formal program of supervised study.
``SEC. 603. LANGUAGE RESOURCE CENTERS.
``(a) Language Resources Centers Authorized.--The Secretary
is authorized to make grants to and enter into contracts with
institutions of higher education, or combinations of such
institutions, for the purpose of establishing, strengthening,
and operating a limited number of national language resource
and training centers, which shall serve as resources to
improve the capacity to teach and learn foreign languages
effectively. Activities carried out by such centers may
include--
``(1) the conduct of research on new and improved teaching
methods, including the use of advanced educational
technology;
``(2) the development of new teaching materials reflecting
the use of such research in effective teaching strategies;
``(3) the development and application of performance
testing appropriate to an educational setting for use as a
standard and comparable measurement of skill levels in all
languages;
``(4) the training of teachers in the administration and
interpretation of performance tests, the use of effective
teaching strategies, and the use of new technologies;
``(5) the publication of instructional materials in the
less commonly taught languages; and
``(6) the widespread dissemination of research results,
teaching materials, and improved pedagogical strategies to
others within the postsecondary education community.
``(b) Conditions for Grants.--Grants under this section
shall be made on such conditions as the Secretary determines
to be necessary to carry out the provisions of this section.
``SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN
LANGUAGE PROGRAMS.
``(a) Incentives for the Creation of Undergraduate
International Studies and Foreign Language Programs.--(1) The
Secretary is authorized to make grants to institutions of
higher education, or combinations of such institutions, to
assist them in planning, developing, and carrying out a
program to improve undergraduate instruction in international
studies and foreign languages. These grants shall be awarded
to institutions seeking to create new programs or curricula
in area studies, foreign languages, and other international
fields. Grants made under this section may be used to pay up
to 50 percent of the cost of projects and activities which
are an integral part of such a program, such as--
``(A) planning for the development and expansion of
undergraduate programs in international studies;
``(B) teaching, research, curriculum development, and other
related activities;
``(C) training of faculty members in foreign countries;
``(D) expansion of foreign language courses;
``(E) programs under which foreign teachers and scholars
may visit institutions as visiting faculty;
``(F) international education programs designed to develop
or enhance linkages between two and four year institutions of
higher education, or baccalaureate and post-baccalaureate
programs or institutions;
``(G) the development of an international dimension in
preservice and inservice teacher training;
``(H) the development of undergraduate study abroad
programs in locations abroad in which such study
opportunities are not otherwise available or which serve
students for whom such opportunities are not otherwise
available and which provide courses that are closely related
to on-campus foreign language and international studies
curricula; and
``(I) the integration of new study abroad opportunities for
undergraduate students into curricula of specific degree
programs.
``(2) The non-Federal share of the cost of the programs
funded under this subsection may be provided either in cash
or in-kind. Such assistance may be composed of institutional
and noninstitutional funds, including State and private
contributions.
``(3) Priority shall be given to those institutions that
require entering students to have successfully completed at
least 2 years of secondary school foreign language
instruction or that require each graduating student to earn 2
years of postsecondary credit in a foreign language (or have
demonstrated equivalent competence in the foreign language)
or, in the case of a two-year degree granting institution,
offer 2 years of postsecondary credit in a foreign language.
``(b) Grants To Strengthen Program of Demonstrated
Excellence in Undergraduate International Studies and Foreign
Language Programs.--(1) The Secretary is authorized to make
grants to institutions of higher education or combinations of
such institutions for strengthening programs of demonstrated
excellence in area studies, foreign languages, and other
international fields in order to ensure their self-sustaining
maintenance and growth. These grants shall enhance the
capacity-building and dissemination functions of existing
programs. Grants made under this subsection may be used to
pay up to 50 percent of the cost of project and activities
which are an integral part of such a program, such as--
``(A) teaching, research, curriculum development, and other
related activities;
``(B) strengthening undergraduate major and minors directly
related to the generation of international expertise;
``(C) developing new foreign language courses, especially
in those languages previously not taught at the institutions,
and improving the quality of existing foreign language
programs;
[[Page 502]]
``(D) expanding library and teaching resources;
``(E) establishing linkages overseas with institutions of
higher education and organizations that contribute to the
educational objectives of this subsection;
``(F) developing programs designed to integrate
professional and technical education with area studies,
foreign languages, and other international fields;
``(G) disseminating curricular materials and program
designs to other educational institutions;
``(H) integrating on-campus undergraduate curriculum with
study abroad and exchange programs;
``(I) developing study and internship abroad programs in
locations in which such study opportunities are not otherwise
available or study abroad opportunities which serve students
for whom such opportunities are not otherwise available;
``(J) training faculty and staff in area studies, foreign
languages, and other international fields; and
``(K) conducting summer institutes in foreign area and
other international fields to provide faculty and curriculum
development, including the integration of professional and
technical education with foreign area and other international
knowledge or skills to government personnel or private sector
professionals involved in international activities.
``(2) As a condition for the award of any grant under this
subsection, the Secretary may establish criteria for
evaluating programs and require an annual report which
evaluates the progress and performance of students in such
programs.
``(3) The non-Federal share of the cost of the programs
funded under this subsection may be provided either in cash
or in-kind. Such assistance may be composed of institutional
and noninstitutional funds, including State and private
contributions.
``(c) Programs of National Significance.--The Secretary may
also make grants to public and private nonprofit agencies and
organizations, including professional and scholarly
associations, whenever the Secretary determines such grants
will make an especially significant contribution to attaining
the objective of this section.
``SEC. 605. INTENSIVE SUMMER LANGUAGE INSTITUTES.
``(a) Intensive Summer Language Institutes Authorized.--(1)
The Secretary is authorized to make grants to institutions of
higher education, or combinations of such institutions, for
the purpose of establishing and conducting intensive summer
language institutes.
``(2) Eligible Grant Recipients.--Training authorized by
this section shall be provided through--
``(A) institutes designed to meet the needs for intensive
language training by advanced foreign language students;
``(B) institutes designed to provide professional
development and improve language instruction through
preservice and inservice training for language teachers; or
``(C) institutes that combine the purposes of subparagraphs
(A) and (B).
``(3) Authorized Activities.--Grants made under this
section may be used for--
``(A) intensive training in critical languages;
``(B) training in neglected languages; and
``(C) stipends for students and faculty attending the
institutes authorized by this section.
``(4) Instructional Program.--Institutes supported under
this section may provide instruction on a full-time or part-
time basis to supplement instruction not fully available in
centers supported under section 602.
``(b) Peer Review.--Grants made under this section shall be
awarded on the basis of recommendations made by peer review
panels composed of broadly representative professionals.
``SEC. 606. RESEARCH; STUDIES; ANNUAL REPORT.
``(a) Authorized Activities.--The Secretary may, directly
or through grants or contracts, conduct research and studies
which contribute to the purposes of this part. Such research
and studies may include but are not limited to--
``(1) studies and surveys to determine needs for increased
or improved instruction in foreign language, area studies, or
other international fields, including the demand for foreign
language, area, and other international specialists in
government, education, and the private sector;
``(2) studies and surveys to assess the utilization of
graduates of programs supported under this title by
governmental, educational, and private sector organizations
and other studies assessing the outcomes and effectiveness of
programs so supported;
``(3) comparative studies of the effectiveness of
strategies to provide international capabilities at
institutions of higher education;
``(4) research on more effective methods of providing
instruction and achieving competency in foreign languages;
``(5) the development and publication of specialized
materials for use in foreign language, area studies, and
other international fields, or for training foreign language,
area, and other international specialists; and
``(6) the application of performance tests and standards
across all areas of foreign language instruction and
classroom use.
``(b) Annual Report.--The Secretary shall prepare, publish,
and announce an annual report listing the books and research
materials produced with assistance under this title.
``SEC. 607. PERIODICALS AND OTHER RESEARCH MATERIALS
PUBLISHED OUTSIDE THE UNITED STATES.
``(a) Program Authorized.--In addition to the amount
authorized to be appropriated by section 610, there are
authorized to be appropriated $8,500,000 for fiscal year
1993, and such sums as may be necessary for the 4 succeeding
fiscal years to provide assistance for the acquisition of,
and provision of access to, periodicals and other research
materials published outside the United States.
``(b) Authorized Activities.--From the amount appropriated
under subsection (a) for any fiscal year, the Secretary shall
make grants to institutions of higher education or public or
nonprofit private library institutions or consortia of such
institutions for the following purposes:
``(1) to acquire periodicals and other research materials
published outside the United States which are not commonly
held by American academic libraries and which are of
scholarly or research importance;
``(2) to maintain in machine-readable form current
bibliographic information on periodicals and other research
materials thus acquired, and to enter such information into
one or more of the widely available bibliographic data bases;
``(3) to preserve such periodicals and other research
materials; and
``(4) to make such periodicals and other research materials
widely available to researchers and scholars.
``(c) Limitations.--(1) The Secretary shall evaluate grant
applications and award grants according to the following
criteria:
``(A) the total number of library research materials in an
institution's collection;
``(B) the comprehensiveness, both current and
retrospective, of the institution's collection of periodicals
and other research materials published outside the United
States;
``(C) public accessibility to the institution's collection
of periodicals and other research materials published outside
the United States;
``(D) the institution's technological capability to share
its collection of periodicals and other research materials
published outside the United States with other institutions
of higher education, with public or nonprofit institutions,
and with individual scholars; and
``(E) the institution's budget and staff capability to
build, maintain, and service periodicals and other research
materials published outside the United States.
``(2) The Secretary shall award no more than 8 grants from
the amounts appropriated under subsection (a).
``(d) Written Agreement.--(1) Prior to the awarding of
grants authorized under subsection (c), the recipient
institution must file a formal written agreement with the
Secretary which outlines their collecting responsibilities
regarding periodicals and other research materials published
outside the United States and ensures public access.
``(2) No funds from grants authorized under subsection (c)
may be used by a recipient institution to acquire and process
periodicals and other research materials published outside
the United States other than that specified in the agreement
filed with the Secretary under paragraph (1).
``(e) Copyright.--Nothing in this section shall be
considered to amend, affect, or define the provisions of
title 17, United States Code, relating to copyright.
``SEC. 608. SELECTION OF GRANT RECIPIENTS.
``(a) Competitive Grants.--The Secretary shall award grants
under section 602 competitively on the basis of criteria that
separately, but not less rigorously, evaluate the
applications for comprehensive and undergraduate language and
area centers and programs.
``(b) Selection Criteria.--The Secretary shall set criteria
for grants awarded under section 602 by which a determination
of excellence shall be made to meet the differing objectives
of graduate and undergraduate institutions.
``(c) Equitable Distribution of Grants.--The Secretary
shall, to the extent practicable, award grants under this
part (other than section 602) in such manner as to achieve an
equitable distribution of funds throughout the Nation, based
on the merit of a proposal with peer review by broadly
representative professionals.
``SEC. 609. EQUITABLE DISTRIBUTION OF FUNDS.
``(a) Selection Criteria.--The Secretary shall make
excellence the criterion for selection of grants awarded
under section 602.
``(b) Equitable Distribution.--To the extent practicable
and consistent with the criterion of excellence, the
Secretary shall award grants under this part (other than
section 602) in such a manner as will achieve an equitable
distribution of funds throughout the Nation.
``(c) Support for Undergraduate Education.--The Secretary
shall also award grants under this part in such manner as to
ensure that an appropriate portion of funds are used to
support undergraduate education.
``SEC. 610. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part $100,000,000 for fiscal year 1993, and such sums as may
be necessary for the 4 succeeding fiscal years.
``PART B--BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS
``SEC. 611. FINDINGS AND PURPOSES.
``(a) Findings.--The Congress finds that--
``(1) the future economic welfare of the United States will
depend substantially on
[[Page 503]]
increasing international skills in the business and
educational community and creating an awareness among the
American public of the internationalization of our economy;
``(2) concerted efforts are necessary to engage business
schools, language and area study programs, professional
international affairs education programs, public and private
sector organizations, and United States business in a
mutually productive relationship which benefits the Nation's
future economic interests;
``(3) few linkages presently exist between the manpower and
information needs of United States business and the
international education, language training and research
capacities of institutions of higher education in the United
States, and public and private organizations; and
``(4) organizations such as world trade councils, world
trade clubs, chambers of commerce and State departments of
commerce are not adequately used to link universities and
business for joint venture exploration and program
development.
``(b) Purposes.--It is the purpose of this part--
``(1) to enhance the broad objective of this Act by
increasing and promoting the Nation's capacity for
international understanding and economic enterprise through
the provision of suitable international education and
training for business personnel in various stages of
professional development; and
``(2) to promote institutional and noninstitutional
educational and training activities that will contribute to
the ability of United States business to prosper in an
international economy.
``SEC. 612. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.
``(a) Program Authorized.--The Secretary is authorized to
make grants to institutions of higher education, or
combinations of such institutions, to pay the Federal share
of the cost of planning, establishing and operating centers
for international business education which--
``(1) will be national resources for the teaching of
improved business techniques, strategies, and methodologies
which emphasize the international context in which business
is transacted,
``(2) will provide instruction in critical foreign
languages and international fields needed to provide
understanding of the cultures and customs of United States
trading partners, and
``(3) will provide research and training in the
international aspects of trade, commerce, and other fields of
study.
In addition to providing training to students enrolled in the
institution of higher education in which a center is located,
such centers shall serve as regional resources to businesses
proximately located by offering programs and providing
research designed to meet the international training needs of
such businesses. Such centers shall also serve other faculty,
students, and institutions of higher education located within
their region.
``(b) Authorized Expenditures.--Each grant made under this
section may be used to pay the Federal share of the cost of
planning, establishing or operating a center, including the
cost of--
``(1) faculty and staff travel in foreign areas, regions,
or countries,
``(2) teaching and research materials,
``(3) curriculum planning and development,
``(4) bringing visiting scholars and faculty to the center
to teach or to conduct research, and
``(5) training and improvement of the staff, for the
purpose of, and subject to such conditions as the Secretary
finds necessary for, carrying out the objectives of this
section.
``(c) Required Activities.--(1) Programs and activities to
be conducted by centers assisted under this section shall
include--
``(A) interdisciplinary programs which incorporate foreign
language and international studies training into business,
finance, management, communications systems, and other
professional curricula;
``(B) interdisciplinary programs which provide business,
finance, management, communications systems, and other
professional training for foreign language and international
studies faculty and advanced degree candidates;
``(C) evening or summer programs, such as intensive
language programs, available to members of the business
community and other professionals which are designed to
develop or enhance their international skills, awareness, and
expertise;
``(D) collaborative programs, activities, or research
involving other institutions of higher education, local
educational agencies, professional associations, businesses,
firms, or combinations thereof, to promote the development of
international skills, awareness, and expertise among current
and prospective members of the business community and other
professionals;
``(E) research designed to strengthen and improve the
international aspects of business and professional education
and to promote integrated curricula; and
``(F) research designed to promote the international
competitiveness of American businesses and firms, including
those not currently active in international trade.
``(2) Permissible Activities.--Programs and activities to
be conducted by centers assisted under this section may
include--
``(A) the establishment of overseas internship programs for
students and faculty designed to provide training and
experience in international business activities, except that
no Federal funds provided under this section may be used to
pay wages or stipends to any participant who is engaged in
compensated employment as part of an internship program;
``(B) other eligible activities prescribed by the
Secretary; and
``(C) the establishment of linkages overseas with
institutions of higher education and other organizations that
contribute to the educational objectives of this section;
``(D) summer institutes in international business, foreign
area studies, and other international studies designed to
carry out the purposes of paragraph (1) of this subsection;
and
``(E) the development of opportunities for business
students to study abroad in locations which are important to
the existing and future economic well-being of the United
States.
``(d) Advisory Council.--(1) In order to be eligible for
assistance under this section, an institution of higher
education, or combination of such institutions, shall
establish a center advisory council which will conduct
extensive planning prior to the establishment of a center
concerning the scope of the center's activities and the
design of its programs.
``(2) Membership on Advisory Council.--The Center Advisory
Council shall include--
``(A) one representative of an administrative department or
office of the institution of higher education;
``(B) one faculty representative of the business or
management school or department of such institution;
``(C) one faculty representative of the international
studies or foreign language school or department of such
institution;
``(D) one faculty representative of another professional
school or department of such institution, as appropriate;
``(E) one or more representative of local or regional
businesses or firms;
``(F) one representative appointed by the Governor of the
State in which the institution of higher education is located
whose normal responsibilities include official oversight or
involvement in State-sponsored trade-related activities or
programs; and
``(G) such other individuals as the institution of higher
education deems appropriate.
``(3) Meetings.--In addition to the initial planning
activities required under subsection (d)(1), the center
advisory council shall meet not less than once each year
after the establishment of the center to assess and advise on
the programs and activities conducted by the center.
``(e) Grant Duration; Federal Share.--
``(1) Duration of grants.--The Secretary shall make grants
under this section for a minimum of 3 years unless the
Secretary determines that the provision of grants of shorter
duration is necessary to carry out the objectives of this
section.
``(2) Federal share.--The Federal share of the cost of
planning, establishing and operating centers under this
section shall be--
``(A) not more than 90 percent for the first year in which
Federal funds are furnished,
``(B) not more than 70 percent for the second such year,
and
``(C) not more than 50 percent for the third such year and
for each such year thereafter.
``(3) Non-federal share.--The non-Federal share of the cost
of planning, establishing, and operating centers under this
section may be provided either in cash or in-kind assistance.
``(f) Grant Conditions.--Grants under this section shall be
made on such conditions as the Secretary determines to be
necessary to carry out the objectives of this section. Such
conditions shall include--
``(1) evidence that the institution of higher education, or
combination of such institutions, will conduct extensive
planning prior to the establishment of a center concerning
the scope of the center's activities and the design of its
programs in accordance with subsection (d)(1);
``(2) assurance of ongoing collaboration in the
establishment and operation of the center by faculty of the
business, management, foreign language, international
studies, professional international affairs, and other
professional schools or departments, as appropriate;
``(3) assurance that the education and training programs of
the center will be open to students concentrating in each of
these respective areas, as appropriate; and
``(4) assurance that the institution of higher education,
or combination of such institutions, will use the assistance
provided under this section to supplement and not to supplant
activities conducted by institutions of higher education
described in subsection (c)(1).
``SEC. 613. JOINT VENTURING AGREEMENTS.
``(a) Purpose.--The purpose of this section is to provide
assistance to the Centers for International Business
Education and Research in consortia with other institutions
of higher education with demonstrated expertise in area
studies, foreign language studies, international studies, or
global business education in order to utilize such expertise
in research, curriculum development, doctoral study,
educational exchange programs, or other services for the
business community.
``(b) Grants Authorized.--The Secretary is authorized to
make grants to the Centers for International Business
Education and Research in consortia with an institution or
institutions of higher education which have a specialized
expertise in area studies, foreign language studies,
international studies, or global business education. Of the
funds allo-
[[Page 504]]
cated for this section under section 615(a), not more than
one-fourth may be allotted to participating centers. The
remainder of such funds shall be allotted to partnership
institutions. The partnership institution shall provide
matching funds, in cash or in kind, of 50 percent of the
amount provided from Federal funds. Such match may come from
the institution's resources or from the business
community.''.
``SEC. 614. EDUCATION AND TRAINING PROGRAMS.
``(a) Program Authorized.--The Secretary shall make grants
to, and enter into contracts with, institutions of higher
education to pay the Federal share of the cost of programs
designed to promote linkages between such institutions and
the American business community engaged in international
economic activity. Each program assisted under this section
shall both enhance the international academic programs of
institutions of higher education and provide appropriate
services to the business community which will expand its
capacity to engage in commerce abroad.
``(b) Authorized Activities.--Eligible activities to be
conducted by institutions of higher education under this
section shall include, but are not limited to--
``(1) innovation and improvement in international education
curricula to serve the needs of the business community,
including development of new programs for nontraditional,
mid-career, or part-time students;
``(2) development of programs to inform the public of
increasing international economic interdependence and the
role of American business within the international economic
system;
``(3) internationalization of curricula at the junior and
community college level, and at undergraduate and graduate
schools of business;
``(4) development of area studies programs, and
interdisciplinary international programs;
``(5) establishment of export education programs through
cooperative arrangements with regional and world trade
centers and councils, and with bilateral and multilateral
trade associations;
``(6) research for and development of specialized teaching
materials, including language materials, and facilities
appropriate to business-oriented students;
``(7) establishment of student and faculty fellowships and
internships for training and education in international
business activities;
``(8) development of opportunities for junior business and
other professional school faculty to acquire or strengthen
international skills and perspectives;
``(9) development of research programs on issues of common
interest to institutions of higher education and private
sector organizations and associations engaged in or promoting
international economic activity;
``(10) the establishment of internships overseas to enable
foreign language students to develop their foreign language
skills and knowledge of foreign cultures and societies;
``(11) the establishment of linkages overseas with
institutions of higher education and organizations that
contribute to the educational objectives of this section; and
``(12) summer institutes in international business, foreign
area and other international studies designed to carry out
the purposes of this section.
``(c) Applications.--No grant may be made and no contract
may be entered into under the provisions of this section
unless an institution of higher education submits an
application at such time and in such manner as the Secretary
may reasonably require. Each such application shall be
accompanied by a copy of the agreement entered into by the
institution of higher education with a business enterprise,
trade organization or association engaged in international
economic activity, or a combination or consortium of such
enterprises, organizations or associations, for the purpose
of establishing, developing, improving or expanding
activities eligible for assistance under subsection (b) of
this section. Each such application shall contain assurances
that the institution of higher education will use the
assistance provided under this section to supplement and not
to supplant activities conducted by institutions of higher
education described in subsection (b).
``(d) Federal Share.--The Federal share under this part for
each fiscal year shall not exceed 50 percent of the cost of
such program.
``SEC. 615. AUTHORIZATION OF APPROPRIATIONS.
``(a) Centers for International Business Education.--There
are authorized to be appropriated $12,500,000 for the fiscal
year 1993 and such sums as may be necessary for each of the 4
succeeding fiscal years to carry out the provisions of
section 612 and section 613.
``(b) Education and Training Programs.--There are
authorized to be appropriated $7,500,000 for fiscal year
1993, and such sums as may be necessary for the 4 succeeding
fiscal years, to carry out the provisions of section 614.
``PART C--GENERAL PROVISIONS
``SEC. 631. DEFINITIONS.
``(a) Definitions.--As used in this title--
``(1) the term `area studies' means a program of
comprehensive study of the aspects of a society or societies,
including study of its history, culture, economy, politics,
international relations and languages;
``(2) the term `international business' means profit-
oriented business relationships conducted across national
boundaries and includes activities such as the buying and
selling of goods; investments in industries; the licensing of
processes, patents and trademarks; and the supply of
services;
``(3) the term `export education' means educating, teaching
and training to provide general knowledge and specific skills
pertinent to the selling of goods and services to other
countries, including knowledge of market conditions,
financial arrangements, laws and procedures;
``(4) the term `internationalization of curricula' means
the incorporation of international or comparative
perspectives in existing courses of study or the addition of
new components to the curricula to provide an international
context for American business education;
``(5) the term `comprehensive language and area center'
means an administrative unit of a university that contributes
significantly to the national interest in advanced research
and scholarship, employs a critical mass of scholars in
diverse disciplines related to a geographic concentration,
offers intensive language training in languages of its area
specialization, maintains important library collections
related to the area, and makes training available in language
and area studies to a graduate, postgraduate, and
undergraduate clientele; and
``(6) the term `undergraduate language and area center'
means an administrative unit of an institution of higher
education, including but not limited to 4-year colleges, that
contributes significantly to the national interest through
the education and training of students who matriculate into
advanced language and area studies programs, professional
school programs, or incorporates substantial international
and foreign language content into baccalaureate degree
programs, engages in research, curriculum development and
community outreach activities designed to broaden
international and foreign language knowledge, employs faculty
with strong language, area, and international studies
credentials, maintains library holdings, including basic
reference works, journals, and works in translation, and
makes training available predominantly to undergraduate
students;
``(7) the term `critical languages' means each of the
languages contained in the list of critical languages
designated by the Secretary pursuant to section 212(d) of the
Education for Economic Security Act (50 Fed. Reg. 149,
31413), except that, in the implementation of this
definition, the Secretary may set priorities according to the
purposes of this title; and
``(8) the term `institution of higher education' means, in
addition to institutions which meet the definition of section
1201(a) of this Act, institutions which meet the requirements
of section 1201(a) of this Act except that (1) they are not
located in the United States, and (2) they apply for
assistance under this title in consortia with institutions
which meet the definition of 1201(a) of this Act.
``(b) Special Conditions.--All references to individuals or
organizations, unless the context otherwise requires, mean
individuals who are citizens or permanent residents of the
United States or organizations which are organized or
incorporated in the United States.
``SEC. 632. PRESERVATION OF PRE-1992 PROGRAMS.
``Notwithstanding any other provision of law, amendments to
this title establishing new programs or expanding existing
programs enacted pursuant to the Higher Education Amendments
of 1992 shall not be funded in fiscal year 1993, or the 4
succeeding fiscal years, unless and until Congress enacts
appropriations for programs under this title enacted prior to
such Amendments at a level no less than the level of funding
in effect for such preexisting programs for fiscal year 1992.
``PART D--INSTITUTE FOR INTERNATIONAL PUBLIC POLICY
``SEC. 641. ESTABLISHMENT.
``(a) Establishment.--There is authorized to be established
an Institute for International Public Policy through grant or
contract between the Secretary and an eligible recipient. The
Institute for International Public Policy shall conduct a
program to significantly increase the numbers of African
Americans and other minorities in the international service,
international voluntary service, and foreign service of the
United States.
``(b) Definition of Eligible Recipient.--An eligible
recipient shall be a consortia of institutions eligible for
assistance under part B of title III of this Act, other
institutions of higher education which serve substantial
numbers of African American and other minority students, and
institutions of higher education with programs in training
foreign service professionals. Each consortia shall designate
an institution of higher education as the host institution
for the Institute for International Public Policy.
``SEC. 642. ACADEMIC YEAR ABROAD PROGRAM.
``The Institute for International Public Policy shall
conduct an academic year abroad program. The academic year
abroad program shall be open to eligible students at
institutions of higher education, including historically
Black colleges and universities as defined in section 322 of
this Act, tribally controlled Indian community colleges as
defined in the Tribally Controlled Community College
Assistance Act of 1978, and other institutions of higher
education with significant minority student populations.
Eligible students expenses shall be shared by the In-
[[Page 505]]
stitute and the institution at which the student is in
attendance. Each student may spend up to 9 months abroad in a
program of academic study, as well as social, familial and
political interactions designed to foster an understanding of
and familiarity with the language, culture, economics and
governance of the host country.
``SEC. 643. MASTERS DEGREE IN INTERNATIONAL RELATIONS.
``The Institute for International Public Policy shall
provide, in cooperation with the other consortium
institutions, a program of study leading to a masters degree
in international relations. The masters degree program
designed by the consortia shall be reviewed and approved by
the Board of Visitors. The Institute may grant fellowships in
an amount not to exceed the level of support comparable to
that provided by the National Science Foundation Graduate
Fellowships, except such amount shall be adjusted as
necessary so as not to exceed the fellow's demonstrated level
of need according to measurement of need approved by the
Secretary. A fellowship recipient shall agree to undertake
full-time study and to enter the international service,
international voluntary service, or foreign service of the
United States.
``SEC. 644. INTERNSHIPS.
``The Institute shall enter into agreements with
historically Black colleges and universities as defined in
section 322 of this Act, tribally controlled Indian community
colleges as defined in the Tribally Controlled Community
College Assistance Act of 1978, and other institutions of
higher education with significant numbers of minority
students, and institutions of higher education with programs
in training foreign service professionals, to provide
academic year internships during the junior and senior year
and summer internships following the sophomore and junior
academic years, by work placements with an international
voluntary or government agency, including the Agency for
International Development, the United States Information
Agency, the International Monetary Fund, the National
Security Council, the Organization of American States, the
Organization of African Unity, the Overseas Private
Investment Corporation, the Department of State, Office of
the United States Trade Representative, the World Bank, and
the United Nations.
``SEC. 645. BOARD OF VISITORS.
``(a) Board.--There shall be appointed a Board of Visitors
for the Institute for International Public Policy, in
addition to 3 ex-officio members, 1 of whom shall be
designated by the Secretary of Education and 1 of whom shall
be designated by the Secretary of State. The President of
each of the consortia institutions shall also name 1
representative to the Board of Visitors who shall meet the
criteria set forth in section 645(b) of this title. The
President of the host institution shall also serve as an ex-
officio member of the Board of Visitors. The Board shall
review and advise the Institute with respect to all aspects
of the academic program and shall submit an annual report to
the Secretary of Education and the Secretary of State on the
Institute's activities and accomplishments, on the progress
of the academic program, and shall include a statistical
analysis of the placement of minorities in the foreign
service.
``(b) Qualifications.--The qualifications for service on
the Board of Visitors shall include: (1) previous experience
in the foreign service, including appointive service as an
Ambassador or another diplomat; (2) academic experience in
instruction or research and writing in international
political, economic or social areas; (3) extensive practical
or professional experience in overseas business, development
or international voluntary work; or (4) governmental
experience in the foreign service international service or
international education.
``SEC. 646. PROGRAM REQUIREMENTS.
``(a) Requirements for Junior Year Abroad.--As used in this
part--
``(1) An eligible student for the junior year abroad
program must be enrolled full-time in a baccalaureate degree
program at an institution of higher education, and be
entering the third year of study at an institution which
nominates him/her for participation in the junior year abroad
program.
``(2) An institution of higher education desiring to send a
student on the junior year abroad enter into a Memorandum of
Understanding with the Institute to provide the requisite
academic preparation for students participating in the junior
year abroad or internship programs, and agrees to pay one-
half the cost of each student it nominates for participation
in the junior year abroad program, and meets such other
requirements as the Secretary of Education may from time to
time, by regulation, reasonably require.
``(b) Match Required.--The recipient of a grant or contract
under this part shall contribute to the conduct of the
program supported by the grant or contract an amount from
non-Federal sources equal to at least one-fourth the amount
of the grant, which contribution may be in cash or in
services, supplies, or equipment.
``SEC. 647. GIFTS AND DONATIONS.
``The Institute is authorized to receive money and other
property donated, bequeathed, or devised to the Institute
with or without a condition of restriction, for the purpose
of providing financial support for the Fellowships or
underwriting the cost of the Junior Year Abroad Program. All
funds or property given, devised, or bequeathed shall be
retained in a separate account, and an accounting of those
funds and property shall be included in the annual report of
the Board of Visitors to the Secretary of Education and the
Secretary of State.
``SEC. 648. AUTHORIZATION.
``There is authorized to be appropriated for fiscal year
1993, $15,000,000 to carry out the purposes of this part and
such sums as may be necessary for each succeeding fiscal
year.''.
TITLE VII--CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC
FACILITIES
SEC. 701. PURPOSES.
(a) Purposes.--Section 701 is amended--
(1) by inserting a period after ``instructional
instrumentation and equipment'' in subsection (a);
(2) by striking out ``if the primary purpose of such
assistance is to enable such institutions--'' in subsection
(a) and inserting the following: ``In making such grants, the
Secretary shall include, but not be limited to, assistance to
enable institutions--'';
(3) by striking out subparagraphs (A) and (B) of subsection
(a)(1) and inserting in lieu thereof the following:
``(A) Federal, State, and local laws requiring removal of
barriers to full participation by disabled individuals;'';
(4) by redesignating subparagraphs (C) and (D) of
subsection (a)(1) as subparagraphs (B) and (C), respectively;
and
(5) in paragraph (4) of subsection (a), by inserting after
``libraries,'' the following: ``(including renovation of
libraries to promote the use of new technologies and
preservation of library materials)''.
(b) Priority.--Section 701(b) is amended by striking out
``priority shall be given'' and inserting in lieu thereof
``priority may be given.''.
SEC. 702. AUTHORIZATION OF APPROPRIATIONS.
Section 702 of the Act is amended to read as follows:
``appropriations authorized
``Sec. 702. (a) Parts A and B.--There are authorized to be
appropriated--
``(1) $50,000,000 for part A for fiscal year 1993 and each
of the 4 succeeding fiscal years; and
``(2) $50,000,000 for part B for fiscal year 1993 and each
of the 4 succeeding fiscal years.
``(b) Other Programs.--There are authorized to be
appropriated--
``(1) such sums as may be necessary to provide not more
than $100,000,000 in loans under part C for fiscal year 1993
and for each of the 4 succeeding fiscal years; and
``(2) $25,000,000 for fiscal year 1993 and for each of the
4 succeeding fiscal years for part D.
``(c) Buy American Requirement.--No funds appropriated
pursuant to this section may be expended by an institution of
higher education for any procurement contract that an agency
of the Government would be prohibited from entering into
under the Act of March 3, 1933 (41 U.S.C. 10a et seq.,
popularly known as the `Buy American Act').''.
SEC. 703. REVISION OF PART A.
(a) Amendment.--Part A of title VII of the Act is amended
to read as follows:
``PART A--GRANTS FOR THE CONSTRUCTION, RECONSTRUCTION, AND RENOVATION
OF UNDERGRADUATE ACADEMIC FACILITIES
``SEC. 711. GRANTS.
``(a) Grants to Institutions; State Limitation.--(1) Funds
available for this part shall be used by the Secretary to
make grants to institutions of higher education to construct,
reconstruct, and renovate undergraduate academic facilities
pursuant to an application for assistance consistent with the
objectives of this title.
``(2) The total payment for any fiscal year made to
institutions of higher education in any State shall not
exceed 12.5 percent of sums appropriated for this part.
``(b) Peer Review Required.--In making grants under this
section, the Secretary shall utilize a national peer review
panel. The panel shall be broadly representative of all types
and classes of institutions of higher education in the United
States. Such panel shall make recommendations to the
Secretary based on its assessment of--
``(1) the effectiveness of the program in the proposed use
of Federal assistance;
``(2) the extent to which the receipt of the grant will
assist the institution in overcoming deficiencies in existing
equipment and facilities; and
``(3) the compatibility of the proposal with a State plan,
where such plan exists.
``(c) Cost Limitations.--The amount of the grant shall not
exceed 50 percent of the development cost of the project. No
funds or resources provided through Federal programs shall be
used to meet the institution's share of the program supported
under this section.
``(d) Use for Maintenance.--An amount less than or equal to
10 percent of that portion of an award granted under this
part which is allotted by the recipient to meet costs of--
``(1) research and instructional instrumentation and
equipment; and
``(2) equipment and structural changes necessary to ensure
the proper functioning of such research or instructional
instrumentation and equipment;
may be allocated by the recipient for maintenance of
equipment and changes described in paragraphs (1) and (2).
Part or all of this percentage may also be applied to costs
of upgrading such equipment and structural
[[Page 506]]
changes within 3 years of the date of initial use, if the
recipient deems such upgrading essential to the continued
usefulness of such research or instructional instrumentation
and equipment.''.
(b) Conforming Amendment.--Section 1203(f) of the Act is
amended--
(1) by adding ``and'' at the end of paragraph (1);
(2) by striking out ``; and'' in paragraph (2) and
inserting in lieu thereof a period; and
(3) by striking out paragraph (3).
SEC. 704. CONSOLIDATION OF PARTS C AND F AND ELIMINATION OF
PART G.
Title VII of the Act is amended--
(1) by striking parts F and G;
(2) by redesignating parts H and J as parts G and H,
respectively;
(3) by redesignating sections 781, 782, and 795 as sections
771, 772, and 781, respectively;
(4) by striking section 783; and
(5) by amending part C to read as follows:
``PART C--LOANS FOR CONSTRUCTION, RECONSTRUCTION AND RENOVATION OF
ACADEMIC, HOUSING, AND OTHER EDUCATIONAL FACILITIES
``SEC. 731. FEDERAL ASSISTANCE IN THE FORM OF LOANS.
``(a) Authority and Conditions for Loans.--To assist
institutions of higher education in the construction,
reconstruction, or renovation of housing, undergraduate and
graduate academic facilities, and other educational
facilities for students and faculties, the Secretary may make
loans of funds to such institutions for the construction,
reconstruction, or renovation of such facilities. No such
assistance shall be provided unless--
``(1) the educational institution involved is unable to
secure the necessary funds for the construction or purchase
from other sources upon terms and conditions equally as
favorable as the terms and conditions applicable to loans
under this title; and
``(2) the Secretary finds that any such construction will
be undertaken in an economical manner, and that any such
facilities are not or will not be of elaborate or extravagant
design or materials.
``(b) Amount and Conditions of Loans.--A loan to
institutions of higher education or higher education building
agency--
``(1) may be in an amount not exceeding the total
development cost of the facility, as determined by the
Secretary;
``(2) shall be secured in such manner and be repaid within
such period, not exceeding 50 years, as may be determined by
the Secretary; and
``(3) shall bear interest at a rate determined by the
Secretary which shall be not more than the lower of (A) 5.5
percent per annum, or (B) the total of one-quarter of 1
percent per annum added to the rate of interest paid by the
Secretary on funds obtained from the Secretary of the
Treasury.
No loan shall be made unless the Secretary finds that not
less than 20 percent of the development cost of the project
will be financed from non-Federal sources.
``SEC. 732. GENERAL PROVISIONS.
``(a) Budget and Accounting.--In the performance of, and
with respect to, the functions, powers, and duties under this
part, the Secretary, notwithstanding the provisions of any
other law, shall--
``(1) prepare annually and submit a budget program as
provided for wholly owned Government corporations by chapter
91 of title 31, United States Code; and
``(2) maintain a set of accounts which shall be audited by
the Comptroller General in accordance with the provisions of
chapter 35 of title 31, United States Code, but such
financial transactions of the Secretary, as the making of
loans and vouchers approved by the Secretary, in connection
with such financial transactions shall be final and
conclusive upon all officers of the Government.
``(b) Use of Funds.--Funds made available to the Secretary
pursuant to the provisions of this part shall be deposited in
a checking account or accounts with the Treasurer of the
United States. Receipts and assets obtained or held by the
Secretary in connection with the performance of functions
under this part, and all funds available for carrying out the
functions of the Secretary under this part (including
appropriations therefor, which are hereby authorized), shall
be available, in such amounts as may from year to year be
authorized by the Congress, for the administrative expenses
of the Secretary in connection with the performance of such
functions.
``(c) Legal Powers.--In the performance of, and with
respect to, the functions, powers, and duties under this
part, the Secretary, notwithstanding the provisions of any
other law, may--
``(1) prescribe such rules and regulations as may be
necessary to carry out the purposes for this part;
``(2) sue and be sued;
``(3) foreclose on any property or commence any action to
protect or enforce any right conferred upon him by any law,
contract, or other agreement, and bid for and purchase at any
foreclosure or any other sale any property in connection with
which the Secretary has made a loan pursuant to this part;
``(4) in the event of any such acquisition, notwithstanding
any other provision of law relating to the acquisition,
handling, or disposal of real property by the United States,
complete, administer, remodel and convert, dispose of, lease,
and otherwise deal with, such property, but any such
acquisition of real property shall not deprive any State or
political subdivision thereof of its civil or criminal
jurisdiction in and over such property or impair the civil
rights under the State or local laws of the inhabitants on
such property;
``(5) sell or exchange at public or private sale, or lease,
real or personal property, and sell or exchange any
securities or obligations, upon such terms as the Secretary
may fix;
``(6) obtain insurance against loss in connection with
property and other assets held;
``(7) subject to the specific limitations in this part,
consent to the modification, with respect to the rate of
interest, time of payment of any installment of principal or
interest, security, or any other term of any contract or
agreement to which the Secretary is a party or which has been
transferred to the Secretary pursuant to this part, granting
to a borrower of a loan made before October 1, 1992, the
option of repaying the loan at a discount computed in
accordance with subsection (d) if the repayment is (A) made
from non-Federal sources, (B) not derived from proceeds of
obligations the income of which is exempt from taxation under
the Internal Revenue Code of 1986, and (C) made on a loan
that has been outstanding for at least 5 years; and
``(8) include in any contract or instrument made pursuant
to this title such other covenants, conditions, or provisions
as may be necessary to assure that the purposes of this part
will be achieved.
``(d) Computation of Allowable Discounts.--The Secretary
shall compute the discount which may be offered to a borrower
as an inducement to early repayment under subsection (c)(7)
in an amount determined by the Secretary to be in the best
financial interests of the Government, taking into account
the yield on outstanding marketable obligations of the United
States having maturities comparable to the remaining term of
such loan.
``(e) Nondiscrimination Between Borrowers in Offering
Discounted Prepayment.--(1) If the Secretary offers a
discount as an inducement to early repayment under subsection
(c)(7), such offer shall be available without regard to
whether the borrower is delinquent or in default on the loan
on or before October 1, 1991, but the Secretary shall refuse
to make such offer to a borrower that becomes delinquent or
goes into default after that date.
``(2) The discount offered shall apply, in the case of a
borrower that complies with paragraph (1), to the entire
amount outstanding on the loan (including any amount owed
with respect to payments that are overdue).
``(f) Contracts for Supplies or Services.--Section 3709 of
the Revised Statutes shall not apply to any contract for
services or supplies on account of any property acquired
pursuant to this part if the amount of such contract does not
exceed $1,000.
``(g) Applicability of Government Corporation Control
Act.--The provisions of section 9107(a) of title 31, United
States Code, which are applicable to corporations or agencies
subject to chapter 91 of such title, shall also be applicable
to the activities of the Secretary under this part.
``(h) Wage Rates.--The Secretary shall take such action as
may be necessary to ensure that all laborers and mechanics
employed by contractors or subcontractors on any project
assisted under this part--
``(1) shall be paid wages at rates not less than those
prevailing on the same type of work on similar construction
in the immediate locality as determined by the Secretary of
Labor in accordance with the Act of March 3, 1931 (Davis-
Bacon Act), as amended; and
``(2) shall be employed not more than 40 hours in any one
week unless the employee receives wages for his employment in
excess of the hours specified above at a rate not less than
one and one-half times the regular rate at which he is
employed;
but the Secretary may waive the application of this
subsection in cases or classes of cases where laborers or
mechanics, not otherwise employed at any time in the
construction of such project, voluntarily donate their
services without full compensation for the purpose of
lowering the costs of construction and the Secretary
determines that any amounts saved thereby are fully credited
to the educational institution undertaking the construction.
``(i) Limitation.--No loan may be made under this part for
any facility on the campus of any postsecondary educational
institution until 5 years after the date on which a previous
loan for another facility on such campus was made under this
part, unless the loan is intended to be used to construct or
reconstruct a facility damaged as a result of a national
disaster, as declared by the President.
``SEC. 733. APPORTIONMENT.
``(a) Limitation.--Not more than 12.5 percent of the amount
of the funds provided for in this part in the form of loans
shall be made available to educational institutions within
any one State.
``(b) Priorities.--In awarding loans under this part, the
Secretary shall give priority--
``(1) to loans for renovation or reconstruction of graduate
or undergraduate academic facilities; and
``(2) to loans for renovation or reconstruction of older
graduate or undergraduate academic facilities that have gone
without major renovation or reconstruction for an extended
period.
``SEC. 734. DEFINITIONS.
``For the purpose of this part:
``(a) Housing.--The term `housing' means--
``(1) new or existing structures suitable for dwelling use,
including single-room dormitories and apartments; and
[[Page 507]]
``(2) dwelling facilities provided for rehabilitation,
alteration, conversion, or improvement of existing structures
which are otherwise inadequate for the proposed dwelling use.
``(b) Educational Institution.--The term `institution of
higher education or higher education building agency' means--
``(1)(A) any educational institution which offers, or
provides satisfactory assurance to the Secretary that it will
offer within a reasonable time after completion of a facility
for which assistance is requested under this part, at least a
2-year program acceptable for full credit toward a
baccalaureate degree (including any public educational
institution, or any private educational institution no part
of the net earnings of which inures to the benefit of any
private shareholder or individual); or
``(B) any public educational institution which--
``(i) is administered by a college or university;
``(ii) offers technical or vocational instruction; and
``(iii) provides residential facilities for some or all of
the students receiving such instruction;
``(2) any hospital operating a school of nursing beyond the
level of high school approved by the appropriate State
authority, or any hospital approved for internships, by
recognized authority, if such hospital is either a public
hospital or a private hospital, no part of the net earnings
of which inures to the benefit of any private shareholder or
individual;
``(3) any corporation (no part of the net earnings of which
inures to the benefit of any private shareholder or
individual)--
``(A) established for the sole purpose of providing housing
or other educational facilities for students or students and
faculty of one or more institutions included in paragraph (1)
without regard to their membership in or affiliation with any
social, fraternal, or honorary society or organization; and
``(B) upon dissolution of which all title to any property
purchased or built from the proceeds of any loan which is
made under section 731, will pass to such institution (or to
any one or more of such institutions) unless it is shown to
the satisfaction of the Secretary that such property or the
proceeds from its sale will be used for some other nonprofit
educational purpose;
``(4) any agency, public authority, or other
instrumentality of any State, established for the purpose of
providing or financing housing or other educational
facilities for students or faculty of any educational
institution included in paragraph (1), but nothing in this
paragraph shall require an institution included in paragraph
(1) to obtain loans or grants through any instrumentality
included in this paragraph; and
``(5) any nonprofit student housing cooperative corporation
established for the purpose of providing housing for students
or students and faculty of any institution included in
paragraph (1).
In the case of any loan made under section 731 to a
corporation described in paragraph (3) which was not
established by the institution or institutions for whose
students or students and faculty it would provide housing, or
to a student housing cooperative corporation described in
paragraph (5), and in the case of any loan which is obtained
from other sources by such a corporation, the Secretary shall
require that the note securing such loan be cosigned by such
institution (or by any one or more of such institutions).
Where the law of any State in effect on the date of enactment
of the Housing Act of 1964 prevents the institution or
institutions, for whose students or students and faculty
housing is to be provided, from cosigning the
note, the Secretary shall require the corporation and the
proposed project to be approved by such institution (or by
any one or more of such institutions) in lieu of such
cosigning.
``(c) Undergraduate and Graduate Academic Facilities.--(1)
Except as provided in paragraph (2), the term `undergraduate
and graduate academic facilities' means structures suitable
for use as classrooms, laboratories, libraries, and related
facilities, the primary purpose of which is the instruction
of students pursuing at least a 2-year program acceptable for
full credit toward a baccalaureate degree, or for
administration of the educational programs serving such
students, of an institution of higher education, and
maintenance, storage, or utility facilities essential to
operation of the foregoing facilities, as well as infirmaries
or other facilities designed to provide primarily for
outpatient care of student and instructional personnel. Plans
for such facilities shall be in compliance with such
standards as the Secretary may prescribe or approve in order
to ensure that projects assisted with the use of Federal
funds under this title shall be, to the extent appropriate in
view of the uses to be made of the facilities, accessible to
and usable by handicapped persons.
``(2) The term `undergraduate and graduate academic
facilities' shall not include (A) any facility intended
primarily for events for which admission is to be charged to
the general public, (B) any gymnasium or other facility
specially designed for athletic or recreational activities,
other than for an academic course in physical education or
where the Secretary finds that the physical integration of
such facilities with other undergraduate academic facilities
included under this part is required to carry out the
objectives of this part, (C) any facility used or to be used
for sectarian instruction or as a place for religious
worship, or (D) any facility which (although not a facility
described in the preceding clause) is used or to be used
primarily in connection with any part of the program of a
school or department of divinity.
``(d) Development Cost.--The term `development cost' means
costs of the construction of the housing, academic
facilities, or other educational facilities and the land on
which it is located, including necessary site improvements to
permit its use for housing, academic facilities, or other
educational facilities; except that in the case of the
purchase of facilities such term means the cost as approved
by the Secretary.
``(e) Faculties.--The term `faculties' means members of the
faculty and their families.
``(f) Other Educational Facilities.--The term `other
educational facilities' means (1) new or existing structures
suitable for use as cafeterias or dining halls, student
centers or student unions, infirmaries or other inpatient or
outpatient health facilities, or for other essential service
facilities, and (2) structures suitable for the above uses
provided by rehabilitation, alteration, conversion, or
improvement of existing structures which are otherwise
inadequate for such uses.''.
SEC. 705. AMENDMENT TO PART E.
Section 752(c)(1) of the Act is amended by inserting before
the period at the end the following: ``, unless such
institution has been declined for primary insurance or
guarantees for the assets or obligations by an organization
which guarantees, insures, and reinsures bonds, debentures,
notes, evidences of debt, loans and interests therein''.
SEC. 706. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL
FINANCING.
Title VII of the Act is further amended by inserting after
part E the following new part:
``PART F--HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
``SEC. 761. FINDINGS.
``The Congress finds that--
``(1) a significant part of the Federal mission in
education has been to attain equal opportunity in higher
education for low-income, educationally disadvantaged
Americans and African Americans;
``(2) the Nation's historically Black colleges and
universities have played a prominent role in American history
and have an unparalleled record of fostering the development
of African American youth by recognizing their potential,
enhancing their academic and technical skills, and honing
their social and political skills through higher education;
``(3) the academic and residential facilities on the
campuses of all historically Black colleges and universities
have suffered from neglect, deferred maintenance and are in
need of capital improvements in order to provide appropriate
settings for learning and social development through higher
education;
``(4) due to their small enrollments, limited endowments
and other financial factors normally considered by lenders in
construction financing, historically Black colleges and
universities often lack access to the sources of funding
necessary to undertake the necessary capital improvements
through borrowing and bond financing;
``(5) despite their track record of long-standing and
remarkable institutional longevity and viability,
historically Black colleges and universities often lack the
financial resources necessary to gain access to traditional
sources of capital financing such as bank loans and bond
financing; and
``(6) Federal assistance to facilitate low-cost capital
basis for historically Black colleges and universities will
enable such colleges and universities to continue and expand
their educational mission and enhance their significant role
in American higher education.
``SEC. 762. DEFINITIONS.
``For the purposes of this part--
``(1) The term `eligible institution' means a `part B
institution' as that term is defined in section 322(2) of the
Higher Education Act of 1965 (20 U.S.C. 1061(2)).
``(2) The term `Advisory Board' means the Advisory Board
established by section 766 of this part.
``(3) The term `loan' means a loan made to an eligible
institution under the provisions of this part and pursuant to
an agreement with the Secretary.
``(4) The term `qualified bond' means any obligation issued
by the designated bonding authority at the direction of the
Secretary, the net proceeds of which are loaned to an
eligible institution for the purposes described in section
763(b).
``(5) The term `funding' means any payment under this part
from the Secretary to the eligible institution or its
assignee in fulfillment of the insurance obligations of the
Secretary pursuant to an agreement under section 763.
``(6) The term `capital project' means, subject to section
764(b) of this part--
``(A) any classroom facility, library, laboratory facility,
dormitory (including dining facilities) or other facility
customarily used by colleges and universities for
instructional or research purposes or for housing students,
faculty, and staff;
``(B) instructional equipment, research instrumentation,
and any capital equipment or fixture related to facilities
described in subparagraph (A);
``(C) any other facility, equipment or fixture the
construction, acquisition, or renovation of which is
essential to the main-
[[Page 508]]
taining of accreditation of the member institution by a
nationally recognized accrediting agency or association; and
``(D) any real property or interest therein underlying
facilities described in subparagraph (A) or (C).
``(7) The term `interest' includes accredited value or any
other payment constituting interest on an obligation.
``(8) The term `outstanding', when used with respect to
bonds, shall not include bonds the payment of which shall
have been provided for by the irrevocable deposit in trust of
obligations maturing as to principal and interest in such
amounts and at such times as will ensure the availability of
sufficient moneys to make payments on such bonds.
``(9) The term `designated bonding authority' means the
private, for-profit corporation selected by the Secretary
pursuant to section 765(1) of this part for the purpose of
issuing taxable construction bonds in furtherance of the
purposes of this part.
``SEC. 763. FEDERAL INSURANCE FOR BONDS.
``(a) General Rule.--Subject to the limitations in section
764 of this part, the Secretary is authorized to enter into
insurance agreements to provide financial insurance to
guarantee the full payment of principal and interest on
qualified bonds upon the conditions set forth in subsections
(b) and (c) of this section.
``(b) Responsibilities of the Designated Bonding
Authority.--The Secretary may not enter into an insurance
agreement described in subsection (a) of this section unless
the Secretary designates a qualified bonding authority in
accordance with sections 765(1) and 766 and the designated
bonding authority agrees in such agreement to--
``(1) use the proceeds of the qualified bonds, less costs
of issuance not to exceed 2 percent of the principal amount
thereof, to make loans to eligible institutions or for
deposit into a reserve fund for repayment of the bonds;
``(2) provide in each loan agreement with respect to a loan
that not less than 75 percent of the proceeds of the loan
will be used--
``(A) to finance the construction, acquisition, equipping,
or renovation of a capital project; or
``(B) to refinance an obligation the proceeds of which were
used to finance the construction, acquisition, equipping, or
renovation of a capital project;
``(3)(A) charge such interest on loans, and provide for
such a schedule of repayments of loans, as will, upon the
timely repayment of the loans, provide adequate and timely
funds for the payment of principal and interest on the bonds;
and
``(B) require that any payment on a loan expected to be
necessary to make a payment of principal and interest on the
bonds be due no less than 60 days prior to the date of the
payment on the bonds for which it is expected to be needed;
``(4) prior to the making of any loan, provide for a credit
review of the member institution receiving the loan and
assure the Secretary that, on the basis of such credit
review, it is reasonable to anticipate that the member
institution receiving the loan will be able to repay the loan
in a timely manner pursuant to the terms thereof;
``(5) provide in each loan agreement with respect to a loan
that, if a delinquency on such loan results in a funding
under the insurance agreement, the member institution
obligated on such loan shall repay the Secretary, upon terms
to be determined by the Secretary, for such funding;
``(6) assign any loans to the Secretary, upon the demand of
the Secretary, if a delinquency on such loan has required a
funding under the insurance agreement;
``(7) in the event of a delinquency on a loan, engage in
such collection efforts as the Secretary shall require for a
period of not less than 45 days prior to requesting a funding
under the insurance agreement;
``(8) create a reserve fund from the proceeds of the bonds
to be drawn upon to pay principal and interest on bonds in
the event of delinquencies in loan repayment;
``(9) provide in each loan agreement with respect to a loan
that, if a delinquency on such loan results in amounts being
withdrawn from the reserve fund to pay principal and interest
on bonds, subsequent payments on such loan shall be available
to replenish such reserve fund;
``(10) comply with the limitations set forth in section 764
of this part; and
``(11) make loans only to eligible institutions under this
part in accordance with regulations prescribed by the
Secretary to ensure that loans are fairly allocated among as
many eligible institutions as possible, consistent with
making loans of amounts that will permit capital projects of
sufficient size and scope to significantly contribute to the
educational program of the eligible institutions.
``(c) Additional Agreement Provisions.--Any insurance
agreement described in subsection (a) of this section shall
provide as follows:
``(1) The payment of principal and interest on bonds shall
be insured by the Secretary until such time as such bonds
have been retired or canceled.
``(2) The Secretary shall create a letter of credit
authorizing the Treasury Department to disburse funds to the
designated bonding authority or its assignee.
``(3) The letter of credit shall be drawn upon in the
amount determined by paragraph (4) of this subsection upon
the certification of the designated bonding authority to the
Secretary or the Secretary's designee that there is a
delinquency on 1 or more loans and there are insufficient
funds available from loan repayments and the reserve fund to
make a scheduled payment of principal and interest on the
bonds.
``(4) Upon receipt by the Secretary or the Secretary's
designee of the certification described in paragraph (3) of
this subsection, the designated bonding authority may draw a
funding under the letter of credit in an amount equal to--
``(A) the amount required to make the next scheduled
payment of principal and interest on the bonds, less
``(B) the amount available to the designated bonding
authority from loan repayments and the reserve fund.
``(5) All fundings under the letter of credit shall be paid
to the designated bonding authority within 2 business days
following receipt of the certification described in paragraph
(3) of this subsection.
``(d) Full Faith and Credit Provisions.--The full faith and
credit of the United States is pledged to the payment of all
fundings which may be required to be paid under the
provisions of this section.
``SEC. 764. LIMITATIONS ON FEDERAL INSURANCE FOR BONDS ISSUED
BY THE DESIGNATED BONDING AUTHORITY.
``(a) Limit on Amount.--At no time shall the aggregate
principal amount of outstanding bonds insured under this part
together with any accrued unpaid interest thereon exceed
$500,000,000, of which--
``(1) not more than $350,000,000 shall be used for loans to
eligible institutions that are private historically Black
colleges and universities; and
``(2) not more than $150,000,000 shall be used for loans to
eligible institutions which are historically Black public
colleges and universities.
For purposes of paragraphs (1) and (2), Lincoln University of
Pennsylvania and Howard University in Washington, District of
Columbia are historically Black public institutions.
``(b) Limitation on Credit Authority.--The authority of the
Secretary to issue letters of credit and insurance under this
part is effective only to the extent provided in advance by
appropriations Acts.
``(c) Religious Activity Prohibition.--No loan may be made
under this Act for any educational program, activity or
service related to sectarian instruction or religious worship
or provided by a school or department of divinity or to an
institution in which a substantial portion of its functions
is subsumed in a religious mission.
``(d) Discrimination Prohibition.--No loan may be made to a
member institution under this part if the member institution
discriminates on account of race, color, religion, national
origin, sex (to the extent provided in title IX of the
Education Amendments of 1972), or handicapping condition;
except that the prohibition with respect to religion shall
not apply to a member institution which is controlled by or
which is closely identified with the tenets of a particular
religious organization if the application of this section
would not be consistent with the religious tenets of such
organization.
``SEC. 765. AUTHORITY OF THE SECRETARY.
``In the performance of, and with respect to, the functions
vested in the Secretary by this Act, the Secretary--
``(1) shall, within 120 days of enactment of this Act,
publish in the Federal Register a notice and request for
proposals for any private for-profit organization or entity
wishing to serve as the designated bonding authority under
this part, which notice shall--
``(A) specify the time and manner for submission of
proposals;
``(B) specify any information, qualifications, criteria, or
standards the Secretary determines to be necessary to
evaluate the financial capacity and administrative capability
of any applicant to carry out the responsibilities of the
designated bonding authority under this part;
``(2) may sue and be sued in any court of record of a State
having general jurisdiction or in any district court of the
United States, and such district courts shall have
jurisdiction of civil actions arising under this part without
regard to the amount in controversy, and any action
instituted under this part without regard to the amount in
controversy, and any action instituted under this section by
or against the Secretary shall survive notwithstanding any
change in the person occupying the office of the Secretary or
any vacancy in such office;
``(3)(A) may foreclose on any property and bid for and
purchase at any foreclosure, or any other sale, any property
in connection with which the Secretary has been assigned a
loan pursuant to this part; and
``(B) in the event of such an acquisition, notwithstanding
any other provisions of law relating to the acquisition,
handling, or disposal of real property by the United States,
complete, administer, remodel and convert, dispose of, lease,
and otherwise deal with, such property, except that--
``(i) such action shall not preclude any other action by
the Secretary to recover any deficiency in the amount of a
loan assigned to the Secretary; and
``(ii) any such acquisition of real property shall not
deprive any State or political subdivision thereof of its
civil or criminal jurisdiction in and over such property or
impair the civil rights under the State or local laws of the
inhabitants on such property;
``(4) may sell, exchange, or lease real or personal
property and securities or obligations; and
[[Page 509]]
``(5) may include in any contract such other covenants,
conditions, or provisions necessary to ensure that the
purposes of this Act will be achieved.
``SEC. 766. HBCU CAPITAL FINANCING ADVISORY BOARD.
``(a) Establishment and Purpose.--There is established
within the Department of Education, the Historically Black
College and Universities Capital Financing Advisory Board
which shall provide advice and counsel to the Secretary and
the designated bonding authority as to the most effective and
efficient means of implementing construction financing on
Black college campuses, and advise the Congress of the United
States regarding the progress made in implementing this part.
The Advisory Board shall meet with the Secretary at least
twice each year to advise him as to the capital needs of
historically Black colleges and universities, how those needs
can be met through the program authorized by this part, what
additional steps might be taken to improve the operation and
implementation of the construction financing program, and how
minority vendors and historically Black colleges might
mutually benefit under this part.
``(b) Board Membership.--
``(1) Composition.--The Advisory Board shall be composed of
9 members as follows:
``(A) the Secretary or the Secretary's designee;
``(B) three members who are presidents of private
historically Black colleges or universities;
``(C) two members who are presidents of public historically
Black colleges or universities;
``(D) the president of the United Negro College Fund, Inc.;
``(E) the president of the National Association for Equal
Opportunity in Higher Education; and
``(F) the executive director of the White House Initiative
on historically Black colleges and universities.
``(2) Terms.--The term of office of each member appointed
under paragraph (1)(C) shall be 3 years, except that--
``(A) of the members first appointed, 2 shall be appointed
for terms of one year, 2 shall be appointed for terms of 2
years, and 3 shall be appointed for terms of 3 years, as
designated at the time of their appointment;
``(B) members appointed to fill a vacancy occurring before
the expiration of a term of a member shall be appointed to
serve the remainder of that term; and
``(C) a member may continue to serve after the expiration
of a term until a successor is appointed.
``SEC. 767. MINORITY BUSINESS ENTERPRISE UTILIZATION.
``In the performance of and with respect to the Secretary's
effectuation of his responsibilities under section 765(1) and
to the maximum extent feasible in the implementation of the
purposes of this part, minority business persons, including
bond underwriters and credit enhancers, bond counsel,
marketers, accountants, advisors, construction contractors,
and managers should be utilized.''.
SEC. 707. FORGIVENESS OF CERTAIN TITLE VII LOANS.
Part G of title VII of the Act (as redesignated) is amended
by inserting after section 773 (as redesignated) the
following new section:
``forgiveness of certain loans
``Sec. 774. (a) Forgiveness Authorized.--The Secretary may
forgive the entire balance due on any loan made under part C
or part F of this title (as in effect on the day before the
date of enactment of the Higher Education Amendments of
1992), or under the College Housing and Academic Facilities
Loan program, or any other federally subsidized, insured, or
authorized loan program designed to assist institutions of
higher education to construct academic or dormitory
facilities, whenever the Secretary determines that--
``(1) the institution of higher education seeking loan
forgiveness is a historically black college or university as
defined in section 322(2) of this Act or is a tribally
controlled community college, as defined in section 2(a)(4)
of the Tribally Controlled Community College Assistance Act;
``(2) the institution of higher education is current in its
payments to the Department or has entered into a moratorium
agreement with the Secretary with respect to such payments;
and
``(3) the outstanding indebtedness equals at least one-
quarter of the annual budget for the most recent fiscal year
of the institution of higher education seeking forgiveness of
its housing loan indebtedness, exclusive of funds provided
under titles III and IV of this Act, and in the judgment of
the Secretary the survival of the institution of higher
education is threatened.
``(b) Application.--Each institution requesting forgiveness
of any loan under this section shall submit an application to
the Secretary at such time, in such manner and containing or
accompanied by such information, as the Secretary may
reasonably require.''.
SEC. 708. REPEAL.
Part H of title VII of the Act (as redesignated by section
704) is repealed.
TITLE VIII--COOPERATIVE EDUCATION
SEC. 801. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.
(a) Authorization of Appropriations.--Section 801(a) of the
Act is amended to read as follows:
``Sec. 801. (a) Appropriations Authorized.--There are
authorized to be appropriated to carry out this title
$45,000,000 for fiscal year 1993, and such sums as may be
necessary for each of the 4 succeeding fiscal years.''.
(b) Reservations.--Section 801(b) of the Act is amended--
(1) in paragraph (1)--
(A) by striking out ``75 percent'' and inserting ``53
percent''; and
(B) by striking ``section 802'' and inserting ``section
802(b)'';
(2) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively;
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) 22 percent shall be available for carrying out grants
to institutions of higher education and combinations of such
institutions for cooperative education under section
802(c);'';
(4) in paragraph (3) (as redesignated by paragraph (2) of
this subsection), by striking out ``12\1/2\ percent'' and
inserting ``11 percent'';
(5) in paragraph (4) (as so redesignated), by striking out
``10 percent'' and inserting ``11 percent''; and
(6) in paragraph (5) (as so redesignated), by striking out
``2\1/2\ percent'' and inserting ``3 percent''.
SEC. 802. GRANTS FOR COOPERATIVE EDUCATION.
(a) Applications for New Programs.--Section 802(b) of the
Act is amended--
(1) by inserting ``for New Programs'' after
``Applications'';
(2) by striking ``desiring to receive a grant under this
title'' and inserting ``which has not received funds under
this title for the administration of the cooperative
education program for any of the 10 preceding fiscal years
and desires to receive a grant under this subsection'';
(3) in paragraph (4), by striking ``to assure'' and
inserting ``a formal statement of institutional commitment
which assures'';
(4) in paragraph (5), by inserting ``or associate degree''
after ``who are certificate'';
(5) in paragraph (6)(A), by striking out clauses (i)
through (iv) and inserting the following:
``(i) the number of unduplicated student applicants in the
cooperative education program;
``(ii) the number of unduplicated students placed in co-op
jobs;
``(iii) the number of employers who have hired co-op
students;
``(iv) the total income for all students derived from
working in co-op jobs; and
``(v) the increase or decrease in the number of students
placed in co-op jobs in the program in the second previous
year compared to such previous fiscal year; and''.
(b) Applications for Existing Programs.--Section 802 is
amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Applications for Existing Programs.--(1) Any
institution of higher education, or participant in a
combination of such institutions, which--
``(A) has an existing cooperative education program; or
``(B) has received Federal assistance for at least 5 fiscal
years under this section;
may apply to receive a grant under this subsection.
``(2) Each institution of higher education, or combination
of institutions, desiring to receive a grant under this
subsection shall submit an application to the Secretary at
such time and in such manner as the Secretary shall
prescribe. Each such application shall comply with the
requirements of paragraphs (1), (2), (3), (5), (6), (7), and
(8) of subsection (b).
``(3)(A) Except as provided in subparagraphs (B) and (C),
the amount of a grant under this subsection shall be an
amount that bears the same ratio to the amount available
under section 801(b)(2) as the applicant institution's number
of unduplicated students placed in co-op jobs (as defined 34
CFR Part 631.5, as in effect on December 31, 1990) in the
previous year bears to the total number of such students in
all institutions applying under this subsection.
``(B) No institution of higher education may receive an
amount of Federal funds under this subsection in excess of 25
percent of that institution's co-op personnel and operating
budget for the previous fiscal year.
``(C) The minimum annual award level for which an
institution is eligible under this subsection is $1,000 and
the maximum annual award level is $75,000.
``(4) Grants under this subsection shall be used
exclusively to extend the quality and participation of the
cooperative education program, for outreach in new curricular
areas and outreach to potential participants including
underrepresented and nontraditional populations.
``(5) No institution that receives funds under this
subsection for a fiscal year may receive funds under
subsection (b) for such fiscal year.''.
(c) Duration of Grants.--Section 802(d) of the Act (as
redesignated by subsection (b)(1)) is amended--
(1) in paragraph (1)(A), by striking ``Except as provided
in paragraph (3), no'' and inserting ``No'';
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
(d) Federal Share.--Section 802(d)(2) of the Act (as
redesignated by subsection (b)(1)) is amended--
[[Page 510]]
(1) in subparagraph (A), by striking out ``90 percent'' and
inserting ``85 percent'';
(2) in subparagraph (B), by striking out ``80 percent'' and
inserting ``70 percent'';
(3) in subparagraph (C), by striking out ``70 percent'' and
inserting ``55 percent'';
(4) in subparagraph (D), by striking out ``60 percent'' and
inserting ``40 percent''; and
(5) in subparagraph (E), by striking out ``30 percent'' and
inserting ``25 percent''.
(e) Consideration of Applications.--Section 802(e) of the
Act (as redesignated) is amended--
(1) by inserting ``strength of'' before ``commitment'' in
paragraph (1)(B);
(2) by striking ``education has'' in such paragraph and
inserting ``education as'';
(3) by inserting ``and formalized institutional commitment
statement'' after ``demonstrated by the plans'' in such
paragraph; and
(4) by striking ``on an institution-wide basis'' in
paragraph (1)(C).
(f) Amendments to Section 803.--Section 803 of the Act is
amended--
(1) in subsection (a)(1), by striking out ``section
801(b)(2)'' and inserting ``section 801(b)(3)'';
(2) in subsection (a)(2)--
(A) by striking ``and'' at the end of subparagraph (D);
(B) by striking the comma at the end of subparagraph (E)
and inserting ``; and'';
(C) by inserting after subparagraph (E) the following new
subparagraph:
``(F) encourage model and cooperative education in the
fields of science and mathematics for women and minorities
who are underrepresented in these fields;''; and
(D) by striking out ``section 801(b)(3)'' and inserting
``section 801(b)(4)''; and
(3) in subsection (a)(3), by striking out ``section
801(b)(4)'' and inserting ``section 801(b)(5)''.
TITLE IX--GRADUATE PROGRAMS
SEC. 901. PURPOSE; ADMINISTRATIVE PROVISIONS.
Title IX of the Act is amended by inserting before part A
the following new section:
``administrative provisions
``Sec. 900. (a) Coordination Required.--In carrying out the
purposes of this title, the Secretary shall provide for
coordinated administration and regulation of graduate
programs under this title to ensure that the programs are
carried out in a manner most compatible with academic
practices.
``(b) Hiring Authority.--For purposes of carrying out this
title, the Secretary shall appoint, without regard to the
provisions of title 5 of the United States Code governing
appointments in the competitive service, such administrative
and technical employees, with the appropriate educational
background, as shall be needed to assist in the
administration of such part. Such employees shall 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.
``(c) Use for Religious Purposes Prohibited.--No fellowship
shall be awarded under this title for study at a school or
department of divinity.''.
SEC. 902. AMENDMENTS TO PART A.
Part A of title IX of the Act is amended--
(1) by amending the heading of such part to read as
follows:
``PART A--GRANTS TO INSTITUTIONS TO ENCOURAGE WOMEN AND MINORITY
PARTICIPATION IN GRADUATE EDUCATION'';
(2) by amending section 901 to read as follows:
``grants authorized
``Sec. 901. The Secretary shall make grants to institutions
of higher education to enable such institutions--
``(1) to identify talented undergraduate students who--
``(A) demonstrate financial need, and
``(B) are individuals from minority groups underrepresented
in graduate education or are women underrepresented in fields
of study in graduate education such as the fields of science
and mathematics, and
``(2) to provide such students with an opportunity to
participate in a program of research and scholarly activities
at such institutions designed to provide such students with
effective preparation for graduate study in such fields or
related fields.'';
(3) in section 902(a)(2)--
(A) by inserting ``women and'' before ``minority
undergraduates''; and
(B) by inserting ``, especially those interested in
entering fields in which they are underrepresented'' after
``minority undergraduates''; and
(4) by inserting after section 903 the following new
section:
``information collection
``Sec. 904. In order to assist institutions of higher
education to identify talented women and minority
undergraduates for graduate study, institutions receiving
awards under this part shall provide to the Secretary such
information as the Secretary determines is necessary to carry
out this section. With respect to students participating in a
summer internship under this part, the Secretary shall
collect information submitted by such institutions, such as
the students' names, addresses, and institutions attended for
undergraduate study. The Secretary shall, subject to the
authorization of each student, make the information available
to institutions of higher education offering graduate
programs seeking to identify talented women and minority
undergraduates for graduate study.''.
SEC. 903. AMENDMENTS TO PART B.
(a) Purpose.--Section 921 of the Act is amended to read as
follows:
``statement of purpose; designation
``Sec. 921. (a) Purpose.--It is the purpose of this subpart
to provide, through institutions of higher education, a
program of grants to assist in making available the benefits
of masters level and professional education to highly
talented individuals from minority groups underrepresented in
masters level and professional education and to highly
talented women who are underrepresented in masters levels and
professional education.
``(b) Designation.--Each recipient of such an award under
this part shall be known as a `Postbaccalaureate Opportunity
Fellow'.''.
(b) Applications.--Section 922(c) of the Act is amended by
striking ``graduate or professional degree'' and inserting
``masters or professional degree''.
(c) Selection of Applications.--Section 922(d) of the Act
is amended--
(1) by striking paragraph (1);
(2) in paragraph (2), by striking ``and'' at the end
thereof;
(3) in paragraph (3)--
(A) by inserting ``women and'' after ``a larger number
of'';
(B) by striking ``in colleges and universities'' and
inserting ``in professional and academic careers requiring
master's or professional degrees''; and
(C) by striking the period at the end and inserting a
semicolon;
(4) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively; and
(5) by adding at the end the following new paragraphs:
``(3) take into account the need to expand access by women
and minority groups to careers heretofore lacking adequate
representation of women and minority groups; and
``(4) take into account the success of the applicant in
providing students with access to careers in which women and
minority groups are underrepresented.''.
(d) Priorities for Fellowships.--Section 922(e) of the Act
is amended to read as follows:
``(e) Priorities for Fellowships.--The Secretary shall
assure that, in making grants under this subpart, a priority
for awards is accorded to--
``(1) individuals from minority groups and women who are
pursuing masters level or professional study in fields in
which they are underrepresented; and
``(2) individuals from minority groups and women who are
pursuing masters level study leading to careers that serve
the public interest.''.
(e) Institutional Payments.--Section 922(f) of the Act is
amended to read as follows:
``(f) Institutional Payments.--The Secretary shall (in
addition to stipends paid to individuals under this subpart)
pay to the institution of higher education, for each
individual awarded a fellowship at such institution, $10,000
with respect to such awards made for academic year 1993-1994,
to be adjusted annually thereafter in accordance with
inflation as determined by the Department of Labor's Consumer
Price Index for the previous calendar year.''.
(f) Award of Fellowships.--Section 923 of the Act is
amended to read as follows:
``award of fellowships
``Sec. 923. (a) Awards.--The Secretary shall make payments
to institutions of higher education for the purpose of paying
stipends to individuals who are awarded fellowships under
this subpart. The stipends the Secretary may establish shall
reflect the purpose of this program to encourage highly
talented students to undertake masters level and professional
study as described in this subpart. Such stipends shall be
set at a level of support comparable to that provided by the
National Science Foundation Graduate Fellowships, except such
amount shall be adjusted as necessary so as not to exceed the
fellow's demonstrated level of need according to measurements
of need approved by the Secretary.
``(b) Requirements for Awards.--No student enrolled in
graduate study leading to a masters or professional degree
shall receive an award except during periods in which such
student is maintaining satisfactory progress in, and devoting
essentially full time to study or research (including acting
as a teaching assistant or research assistant as may be
required as a condition to award a degree), in the field in
which such fellowship was awarded and is not engaging in
gainful employment, other than part-time employment by the
institution of higher education involved in teaching,
research, or similar activities, approved by the Secretary.
Such period shall not exceed the normal period for completing
the program in which the student is enrolled or a total of 3
years, whichever is less, except that the Secretary may
provide by regulation for the granting of such fellowships
for a period of study not to exceed one 12-month period, in
addition to the 2-year period for study or research set forth
in this section, under special circumstances which the
Secretary determines would most effectively serve the
purposes of this part. The Secretary shall make a
determination to provide such 12-month extension of an award
to an individual fellowship recipient for study or research
upon review of an application for such extension by the
recipient.''.
(g) Graduate Fellowships.--Part B of title IX is further
amended--
(1) by striking the heading of part B and inserting the
following:
[[Page 511]]
``PART B--POSTBACCALAUREATE OPPORTUNITY AND HARRIS FELLOWSHIP PROGRAMS
``Subpart 1--Postbaccalaureate Opportunity Fellowships''; and
(2) by adding at the end thereof the following new subpart:
``Subpart 2--Patricia Roberts Harris Graduate Fellowship Program
``SEC. 926. STATEMENT OF PURPOSE; DESIGNATION OF AWARDS.
``(a) Purpose.--It is the purpose of this subpart to
provide, through institutions of higher education, a program
of grants to assist in making available the benefits of
doctoral education to individuals from minority groups who
are underrepresented in doctoral education and to women who
are underrepresented in fields of doctoral education.
``(b) Designation.--Each recipient of such an award under
this subpart shall be known as a `Patricia Roberts Harris
Graduate Fellow'.
``SEC. 927. PROGRAM AUTHORIZED.
``(a) Grant by Secretary.--The Secretary shall make grants
to institutions of higher education to enable such
institutions to make grants in accordance with the provisions
of this subpart.
``(b) Distribution and Amounts of Grants.--(1) In making
such grants the Secretary shall, consistent with the
allocation of grants based on merit, seek a broad geographic
distribution of awards and an equitable distribution among
eligible public and independent institutions of higher
education.
``(2) Whenever the Secretary determines that an institution
of higher education is unable to use all of the amounts
available to it under this subpart, the Secretary shall, on
such dates during each fiscal year as the Secretary may fix,
reallot such amounts not needed to institutions which can use
the grants authorized by this subpart.
``(c) Applications.--Any eligible institution of higher
education offering a program of doctoral education may apply
for grants under this subpart. Each such institution may make
an application to the Secretary at such time, in such manner,
and containing or accompanied by such information as the
Secretary may reasonably require. Such application may be
made on behalf of academic departments or similar
organizational units within such institution meeting the
requirements of this subsection, including interdisciplinary
or interdepartmental programs.
``(d) Selection of Applications.--In making grants to
institutions of higher education, the Secretary shall--
``(1) take into account present and projected needs for
highly trained individuals in academic fields of high
national priority;
``(2) consider the need to prepare a larger number of women
and individuals from minority groups, especially from among
such groups which have been traditionally underrepresented in
colleges and universities and in specific fields, but nothing
contained in this paragraph shall be interpreted to require
any institution to grant preference or disparate treatment to
the members of one minority group on account of an imbalance
which may exist with respect to the total number or
percentage of individuals of such group participating in or
receiving the benefits of the program authorized in this
section, in comparison with the total number of percentage of
individuals of such group in any community, State, section,
or other area.
``(e) Priorities for Fellowships.--The Secretary shall
assure that, in making grants under this subpart, awards are
made to women and individuals from traditionally
underrepresented groups undertaking doc-
toral study, including those interested in entering the
fields of science and mathematics.
``(f) Institutional Payments.--The Secretary shall (in
addition to stipends paid to individuals under this subpart)
pay to the institution of higher education, for each
individual awarded a fellowship at such institution, $10,000
with respect to such awards made for the academic year 1993-
1994, to be adjusted annually thereafter in accordance with
inflation as determined by the Department of Labor's Consumer
Price Index for the previous calendar year.
``SEC. 928. AWARD OF FELLOWSHIPS.
``(a) Awards.--The Secretary shall make payments to
institutions of higher education for the purpose of paying
stipends to individuals who are awarded fellowships under
this subpart. The stipends the Secretary may establish shall
reflect the purpose of this program to encourage highly
talented students to undertake doctoral study as described in
this subpart. Such stipends shall be set at a level of
support comparable to that provided by the National Science
Foundation Graduate Fellowships, except such amount shall be
adjusted as necessary so as not to exceed the fellow's
demonstrated level of need according to measurements of need
approved by the Secretary.
``(b) Requirements for Awards.--No student enrolled in
graduate study leading to a doctoral degree shall receive an
award except during periods in which such student is
maintaining satisfactory progress in, and devoting
essentially full time to study, research (including acting as
a teaching assistant or research assistant as may be required
as a condition to award a degree), or dissertation work in
the field in which such fellowship was awarded and is not
engaging in gainful employment, other than part-time
employment by the institution of higher education involved in
teaching, research, or similar activities, approved by the
Secretary. Such period shall not exceed a total of three
years, consisting of not more than two years of support for
study or research, and not more than one year of support for
dissertation work provided that the student has attained
satisfactory progress to the dissertation stage. The
institution shall provide two years of support for each
student, including at least one year of supervised teaching,
following the two years of predissertation support under this
subpart. The Secretary may provide by regulation for the
granting of such fellowships for a period for study not to
exceed one 12-month period, in addition to the two-year
period for study or research set forth in this section, under
special circumstances which the Secretary determines would
most effectively serve the purposes of this part. The
Secretary shall make a determination to provide such 12-month
extension of an award to an individual fellowship recipient
for study or research upon review of an application for such
extension by the recipient.''.
SEC. 904. AMENDMENTS TO PART C.
(a) Award of Fellowships.--Section 931 of the Act is
amended--
(1) by striking out ``Number and'' in the heading of
subsection (a); and
(2) by striking out ``not more than 450 fellowships per
year'' and inserting in lieu thereof ``up to 600 new
fellowships per year'' in subsection (a).
(b) Stipends.--Section 933(a) of the Act is amended to read
as follows:
``Sec. 933. (a) Award by Secretary.--The Secretary shall
pay to individuals awarded fellowships under this part such
stipends as the Secretary may establish, reflecting the
purpose of this program to encourage highly talented students
to undertake graduate study as described in this part. Such
fellowships shall be set at a level of support comparable to
that provided by the National Science Foundation Graduate
Fellowships,
except such amount shall be adjusted as necessary so as not
to exceed the fellow's demonstrated level of need according
to measurements of need approved by the Secretary.''.
(c) Institutional Payments.--Section 933(b)(1) of the Act
is amended by striking out ``$6,000'' and inserting in lieu
thereof ``$10,000 with respect to such awards made for the
academic year 1993-1994, to be adjusted annually thereafter
in accordance with inflation as determined by the Department
of Labor's Consumer Price Index for the previous calendar
year''.
SEC. 905. AMENDMENTS TO PART D.
(a) Awards to Graduate Students.--Section 945(a) of the Act
is amended by inserting after ``any point in their graduate
study'' the following: ``, including students pursuing a
doctoral degree after having completed a masters degree
program at an institution of higher education,''.
(b) Amount of Stipends.--Section 945(b) of the Act is
amended to read as follows:
``(b) Amount of Stipends.--The Secretary shall make
payments to institutions of higher education for the purpose
of paying stipends to individuals who are awarded fellowships
under this subpart. The stipends the Secretary establishes
shall reflect the purpose of this program to encourage highly
talented students to undertake graduate study as described in
this part. Such stipends shall be set at a level of support
comparable to that provided by the National Science
Foundation Graduate Fellowships, except such amount shall be
adjusted as necessary so as not to exceed the fellow's
demonstrated level of need according to measurements of need
approved by the Secretary.''.
(c) Additional Assistance.--Section 946 of the Act is
amended to read as follows:
``additional assistance for cost of education
``Sec. 946. (a) Payments Authorized.--The Secretary shall
(in addition to stipends paid to individuals under this
subpart) pay to the institution of higher education, for each
individual awarded a fellowship at such institution, $10,000
with respect to such awards made for the academic year 1993-
1994, to be adjusted annually thereafter in accordance with
inflation as determined by the Department of Labor's Consumer
Price Index for the previous calendar year.
``(b) Use for Overhead Prohibited.--Funds made available
pursuant to this part may not be used for the general
operational overhead of the academic department or
program.''.
SEC. 906. AMENDMENT TO PART E.
Section 951 of the Act is amended to read as follows:
``program requirements
``Sec. 951. (a) Program Authority.--The Secretary shall
carry out a program to assist minority, low income, or
educationally disadvantaged college graduates to successfully
pursue a law degree and service in the legal profession
through an annual grant or contract with the Council on Legal
Education Opportunity (hereinafter CLEO). A grant or contract
under this part shall permit CLEO to use up to 6 percent of
the funds provided for administrative costs of the grant or
contract.
``(b) Services Authorized.--A legal training project under
this subpart may provide the following services--
``(1) assistance and counseling in gaining admission to
accredited law schools;
``(2) a 6-week intensive summer program designed to prepare
minority, low-income or educationally disadvantaged
individuals for the successful completion of legal studies;
or
[[Page 512]]
``(3) an academic-year program of tutorial services,
academic advice and counseling designed to assist eligible
participants successfully complete their legal training,
which may include but is not limited to--
``(A) instruction in reading, legal research, legal writing
skills and problem analysis;
``(B) academic advice and assistance in course selection;
``(C) advisement about financing their legal education and
available student financial aid;
``(D) personal and professional counseling relative to
career alternatives in the legal profession and bar
examination preparation; and
``(E) any other activity consistent with subparagraphs (A)
through (D) which furthers the objectives of this subsection
which the Secretary may, by regulation, reasonably require.
``(c) Use of Funds.--The Secretary shall by grant or
contract on a biennial basis, with the Council on Legal
Education Opportunity, cover all or part of the cost of--
``(1) engaging in such activities as are reasonably
designed to publicize the existence and availability of
program funds to assist minority, low-income, and
educationally disadvantaged individuals to pursue a legal
education;
``(2) selecting minority, low-income and educationally
disadvantaged individuals for training for the legal
profession;
``(3) facilitating the entry of such individuals into law
schools at institutions of higher education for the purpose
of pursuing a legal education;
``(4) selecting from among all qualified applicants, which
shall provide the services authorized by section 951(b)(2) or
(3);
``(5) evaluating the quality, impact and continuing
feasibility of the programs implemented under section 951(b);
``(6) providing, through the institutions, agencies, and
organizations selected under paragraph (3), for not more than
6 months prior to entry of such individuals upon their course
of training for the legal profession, or following entry,
training designed to assist them to complete successfully
such training for the legal profession;
``(7) paying such stipends (including allowances for
participant travel and for their dependents) as the Secretary
may determine for such individuals for any such period of
preliminary training for the legal profession during which
such individuals maintain satisfactory academic progress
toward the J.D. or L.L.B. degree, as determined by the
respective institution; and
``(8) paying for administrative activities of the
institutions of higher education, agencies, or organizations
which receive subgrants or contracts under paragraph (6), or
with which such contracts are entered into, to the extent
that such activities are for the purpose of furthering the
activities described in paragraphs (1) through (7).''.
SEC. 907. AMENDMENTS TO PART F.
(a) Program Authorization.--Section 961(a) of the Act is
amended by striking out ``establishing or expanding'' and
inserting in lieu thereof ``continuing, expanding, or
establishing''.
(b) Limitation on Amounts.--Section 961(c) is amended by
striking out ``$100,000'' and inserting in lieu thereof
``$250,000''.
SEC. 908. ADDITION OF NEW PART; AUTHORIZATION OF
APPROPRIATIONS.
Title IX of the Act is further amended by striking part G
and inserting the following:
``PART G--GRANTS TO INSTITUTIONS TO ENCOURAGE MINORITIES TO ENTER THE
HIGHER EDUCATION PROFESSORATE
``SEC. 971. PROGRAM AUTHORIZED.
``The Secretary shall make grants to institutions of higher
education or to nonprofit organizations associated with
institutions of higher education with a demonstrated record
of enhancing minority access to graduate education to enable
such institutions, in consortia with historically black
colleges and universities and other institutions with
significant enrollments of African Americans, Asian
Americans, Hispanic Americans, Native Hawaiians, Pacific
Islanders, and Native Americans, to identify talented
minority undergraduate students and faculty who wish to enter
or continue in the higher education professorate, and to
provide such students with stipends and a fellowship to
assist them in obtaining the doctoral degree and teach in an
institution of higher education.
``SEC. 972. DESIGNATION OF FELLOWS.
``Students receiving awards under this part shall be known
as `Faculty Development Fellows'.
``SEC. 973. APPLICATIONS AND AWARDS.
``(a) Required Information.--Each applicant institution of
higher education or nonprofit organization shall submit an
application under this part to the secretary containing the
following information--
``(1) the names of those undergraduate institutions which
are historically or predominantly black colleges and
universities or other institutions with significant
enrollments of African Americans, Asian Americans, Hispanic
Americans, Native Hawaiians, Pacific Islanders, and Native
Americans which have agreed to cooperate with the applicant
institution to carry out the purposes of this part;
``(2) the institution's plan for identifying and recruiting
minority faculty and talented minority undergraduates who
might participate in the program;
``(3) the program or programs of doctoral study that the
institution plans to offer in its doctoral program;
``(4) the institution's plan for using current minority
faculty and other faculty as mentors and academic resources
in support of the program;
``(5) other institutional resources, including tuition
waivers, assistantships or financial aid other than loans,
that the institution will make available to successful
Faculty Development Fellowship applicants; and
``(6) such other assurances and information as the
Secretary may reasonably require by regulation.
``(b) Selection Requirements.--In making awards to
institutions, the Secretary shall give priority to those
applications which include the following--
``(1) provide a tuition waiver and a minimum $2,000 stipend
to each Faculty Development Fellow;
``(2) provide additional financial support to the Faculty
Development Fellow from non-Federal resources, either in cash
or in kind, such as contributions from the business community
and civic organizations;
``(3) emphasize courses of study leading to the doctoral
degrees in disciplines where minorities are underrepresented;
and
``(4) ensure that the Faculty Development Fellow will teach
in an institution of higher education where minority
undergraduate students are likely to benefit from the
educational experience and academic achievements of the
Faculty Development Fellow.
``(c) Geographic Distribution.--The Secretary shall ensure
an equitable geographic distribution among the institutional
awards and that both public and private institutions are
fairly represented among the recipients.
``(d) Waiver by the Secretary.--The Secretary may waive all
or any portion of the requirement under section 973(b)(1)
upon application of any institution which is eligible for
funds under title III of this Act, pursuant to criteria
established by the Secretary by regulation.
``SEC. 974. FELLOWSHIPS.
``Each institution of higher education or consortium
receiving a grant under this subpart shall award fellowships
in an amount equal to $15,000, or an amount based on the
financial need of the recipient (as determined by the
institution in accordance with measurements of need approved
by the Secretary) whichever is less.
``SEC. 975. TEACHING REQUIREMENT.
``Each Faculty Development Fellowship recipient shall enter
into an agreement with the host institution awarding the
fellowship (and the sending institution if the Faculty
Development Fellow is a current faculty member), under which
the fellowship recipient shall--
``(1) within a 5-year period after completing the doctorate
degree for which the Faculty Development Fellowship was
awarded, teach, for a period of not less than 1 year for each
year for which financial assistance was received, in a public
or private nonprofit institution of higher education, or in
the case of a for-profit institution, one that offers at
least the Associate of Arts degree;
``(2) provide the institution of higher education that
awarded the fellowship, with evidence of compliance with
section 975(1); and
``(3) repay all or part of the Faculty Development
Fellowship received pursuant to this part, plus interest, and
if applicable reasonable collection fees, under regulations
issued by the Secretary, in the event the conditions of
section 976 are not met, except insofar as provided in
section 976.
``SEC. 976. CONSEQUENCES OF NONCOMPLIANCE.
``Recipients found by the Secretary to be in noncompliance
with the agreement entered into under section 975 of this
part shall be required to repay to the Federal Government a
pro rata amount of the fellowship awards provided from
Federal sources plus interest (but in no event at an interest
rate higher than the rate applicable to loans in the
applicable period under part B of title IV) and where
applicable, reasonable collection fees, on a schedule and at
a rate of interest to be prescribed by the Secretary by
regulations issued pursuant to this subpart.
``SEC. 977. EXCEPTIONS TO REPAYMENT PROVISIONS.
``(a) Deferral During Certain Periods.--A recipient shall
not be considered in violation of the agreement entered into
pursuant to section 974 during any period in which the
recipient--
``(1) is pursuing a full-time course of study related to
the field of teaching at an eligible institution;
``(2) is serving, not in excess of 3 years, as a member of
the armed services of the United States;
``(3) is temporarily totally disabled for a period of time
not to exceed 3 years as established by sworn affidavit of a
qualified physician;
``(4) is unable to secure employment for a period not to
exceed 12 months by reason of the care required by a spouse
who is disabled;
``(5) is seeking and unable to find full-time employment
for a single period not to exceed 12 months;
``(6) is engaged in full-time employment as a teacher in a
public or private nonprofit preschool, elementary or
secondary school, or a public or private nonprofit preschool,
education program; or
``(7) satisfies the provisions of additional repayment
exceptions that may be prescribed by the Secretary in
regulations issued pursuant to this subpart.
``(b) Forgiveness if Permanently Totally Disabled.--A
recipient shall be excused from repayment of any fellowship
assistance received under this subpart if the recipient
becomes permanently totally dis-
[[Page 513]]
abled as established by sworn affidavit of a qualified
physician.
``PART H--AUTHORIZATION OF APPROPRIATIONS
``SEC. 981. AUTHORIZATION OF APPROPRIATIONS.
``(a) Part A.--There are authorized to be appropriated to
carry out part A $25,000,000 for fiscal year 1993, and such
sums as may be necessary for the 4 succeeding fiscal years.
``(b)(1) Part B Subpart 1.--There are authorized to be
appropriated to carry out subpart 1 of part B $50,000,000 for
fiscal year 1993, and such sums as may be necessary for the 4
succeeding fiscal years.
``(2) Part B Subpart 2.--There are authorized to be
appropriated to carry out subpart 2 of part B $50,000,000 for
fiscal year 1993, and such sums as may be necessary for the 4
succeeding fiscal years.
``(c) Part C.--There are authorized to be appropriated to
carry out part C $50,000,000 for fiscal year 1993, and such
sums as may be necessary for the 4 succeeding fiscal years.
``(d) Part D.--There are authorized to be appropriated to
carry out part D $50,000,000 for fiscal year 1993, and such
sums as may be necessary for the 4 succeeding fiscal years.
``(e) Part E.--There are authorized to be appropriated to
carry out part E $10,000,000 for fiscal year 1994, and such
sums as may be necessary for the 4 succeeding fiscal years.
``(f) Part F.--There are authorized to be appropriated to
carry out part F $10,000,000 for fiscal year 1993, and such
sums as may be necessary for the 4 succeeding fiscal years.
``(g) Part G.--There are authorized to be appropriated to
carry out part G $25,000,000 for fiscal year 1993, and such
sums as may be necessary for the 4 succeeding fiscal
years.''.
TITLE X--POSTSECONDARY IMPROVEMENT PROGRAM
SEC. 1001. AMENDMENTS TO PART A.
(a) Planning Grants.--Section 1001 of the Act is amended--
(1) by inserting ``(a)'' after ``Sec. 1001.'';
(2) by striking ``postsecondary'' in the matter preceding
paragraph (1) and inserting ``higher''; and
(3) by adding at the end the following new subsection:
``(b)(1) The Secretary is authorized to make planning grant
to institutions of higher education for the development and
testing of innovative techniques in postsecondary education.
``(2) Such grants shall not exceed $20,000.''.
(b) Authorization of Appropriations.--Section 1005 of the
Act is amended to read as follows:
``authorization of appropriations
``Sec. 1005. (a) There are authorized to be appropriated to
carry out this part (except for section 1001(b)) $20,000,000
for fiscal year 1993 and such sums as may be necessary for
the 4 succeeding fiscal years.
``(b) There are authorized to be appropriated to carry out
section 1001(b) $1,000,000 for fiscal year 1993 and such sums
as may be necessary for the 4 succeeding fiscal years.''.
SEC. 1002. AMENDMENTS TO PART B.
(a) Minority Science Improvement Programs.--Section 1021(b)
of the Act is amended by inserting ``and minority women''
after ``ethnic minorities''.
(b) Science and Engineering Access.--Section 1033(5) of the
Act is amended by inserting ``, particularly minority
women,'' after ``minority students''.
(c) Reauthorization of Part B.--Section 1047 of the Act is
amended to read as follows:
``authorization of appropriations
``Sec. 1047. (a) Authorizations.--There are authorized to
be appropriated to carry out the purposes of this part,
$10,000,000 for fiscal year 1993, and such sums as may be
necessary for the 4 succeeding fiscal years.
``(b) Appropriation Limitation.--For any fiscal year, 50
percent of the funds under this part shall be allocated for
the purpose of section 1021, 33.33 percent for the purpose of
section 1031, and 16.67 percent for the purpose of section
1032.''.
SEC. 1003. AMENDMENT TO PART C.
Part C of title X of the Act is amended to read as follows:
``Part C--Special Projects in Areas of National Need
``Sec. 1061. (a) The Secretary is authorized to make grants
to institutions of higher education, or consortia thereof,
and such other public agencies and nonprofit organizations as
the Secretary deems necessary for innovative projects
concerning one or more areas of particular national need
identified by the Secretary and the Director of the Fund.
``(b) No grant shall be made under this part unless an
application is made at such time, in such manner, and
contains or is accompanied by such information as the
Director may require.
``(c) Areas of national need shall initially include, but
shall not be limited to the following:
``(1) International exchanges.
``(2) Campus climate and culture.
``(3) Evaluation and dissemination.
``(d) There are authorized to be appropriated to carry out
this part $5,000,000 for fiscal year 1993 and such sums as
may be necessary for the 4 succeeding fiscal years.''.
SEC. 1004. WOMEN AND MINORITIES SCIENCE AND ENGINEERING
OUTREACH DEMONSTRATION PROGRAM.
Title X of the Act is amended by adding at the end the
following new part:
``PART D--WOMEN AND MINORITIES SCIENCE AND ENGINEERING OUTREACH
DEMONSTRATION PROGRAM
``SEC. 1071. PURPOSE.
``It is the purpose of this part to provide grants to
institutions of higher education working in partnership with
elementary and secondary schools to establish outreach
programs for female and minority elementary and secondary
students to increase the participation of those students in
science and engineering undergraduate and graduate degree
programs.
``SEC. 1072. PROGRAM AUTHORIZED.
``The Secretary shall, in accordance with the provision of
this part, carry out a program of providing grants to
institutions of higher education that are designed to
enhance, coordinate, develop, and expand programs and
initiatives which identity and encourage female and minority
elementary and secondary students to pursue higher education
in preparation for careers in science and engineering. The
Secretary is authorized to award grants for women and
minority science and engineering outreach demonstration
programs to institutions meeting the eligibility criteria
defined in section 1073.
``SEC. 1073. ELIGIBLE INSTITUTIONS.
``(a) In General.--The Secretary shall provide grants under
this program to institutions which meet the following
selection criteria:
``(1) Grantees shall be institutions of higher education
with science and engineering programs.
``(2) Grantees shall have female and minority enrollment
and retention rates significantly higher than national
averages but shall not meet the definition for `minority
institution' established in part B of this title.
``(3) Grantees shall demonstrate their ability to conduct
outreach activities in science and engineering to female and
minority students at the elementary and secondary levels.
``(4) Grantees shall incorporate the use of advanced
telecommunications equipment, including fiber optics and
interactive video systems, to improve the development of
intermodal programs targeted toward female and minority
students.
``(5) Grantees shall enter into a partnership agreement
with a local educational agency and at least 1 local business
or industry and the duties of each partner in the consortium
shall be defined in the institution's application to the
Secretary.
``(b) Limitation.--The Secretary shall award no less than
40 percent of the total funds made available under this
section to eligible institutions in the Nation's ten largest
metropolitan statistical areas, where minority elementary and
secondary school student populations exceed the national
average and where the female elementary and secondary school
student population's performance in mathematics and science
has been consistently below that of the male student
population.
``SEC. 1074. AMOUNT, DURATION, AND USE OF FUNDS.
``(a) Amount and Duration of Grants.--Grants provided under
this section should be no less than $500,000 in a single
fiscal year, and shall be continued for a period not to
exceed 5 fiscal years.
``(b) Use of Grants.--Grants provided under this section
may be used for:
``(1) The operation and administration of outreach programs
to elementary and secondary students.
``(2) Faculty development programs in support of outreach
programs.
``(3) Curriculum development in support of the outreach
programs.
``(4) Disseminating information about the outreach programs
to elementary and secondary schools and institutions of
higher education.
``(5) Supporting cooperative efforts with elementary and
secondary schools, community groups, business and industry
and other education-related groups, to expand the scope of
the outreach programs.
``(6) Establishing infrastructure necessary to operate
programs, specifically including telecommunications equipment
providing distance learning capabilities.
``SEC. 1075. APPLICATION.
``To receive a grant under this section, an eligible
institution shall submit an application at such time, in such
manner, and containing or accompanied by such information, as
the Secretary may reasonably require.
``SEC. 1076. EVALUATION.
``(a) Independent Annual Evaluation.--The Secretary shall
provide for the annual independent evaluation of programs
under this part to determine their effectiveness in
providing--
``(1) the operation and administration of outreach programs
to elementary and secondary students;
``(2) faculty development programs in support of outreach
programs;
``(3) curriculum development in support of the outreach
programs;
``(4) disseminating information about the outreach programs
to elementary and secondary schools and institutions of
higher education;
``(5) supporting cooperative efforts with elementary and
secondary schools, community groups, business and industry
and other education-related groups, to expand the scope of
outreach programs; and
``(6) establishing infrastructure necessary to operate
programs, specifically including telecommunications equipment
providing distance learning capabilities.
``(b) Criteria.--(1) Each evaluation shall be conducted by
individuals not directly involved in the administration of
the program or project operated under this part. Such
independent evaluators and the program ad-
[[Page 514]]
ministrators shall jointly develop evaluation criteria which
provide for appropriate analysis of the factors under
subsection (a). When possible, each evaluation shall include
comparisons with appropriate control groups.
``(2) In order to determine a program's effectiveness in
achieving its stated goals, each evaluation shall contain
objective measures of such goals and, where feasible, shall
obtain the specific views of program participants about such
programs.
``(c) Report to Congress and Dissemination.--The Secretary
shall prepare and submit to the Congress a review and summary
of the results of such evaluations not later than September
30, 1997.
``SEC. 1077. FEDERAL SHARE.
``The Federal share of programs assisted under this part
shall be 90 percent in the first year, 80 percent in the
second year, 70 percent in the third year, 60 percent in the
fourth year, and 50 percent in the fifth year. The remaining
funds shall be provided from non-Federal sources.
``SEC. 1078. SUPPLEMENT/NOT SUPPLANT.
``An institution of higher education or a local educational
agency may use funds received under this part only so as to
supplement and, to the extent practicable, increase the level
of funds that would be available from non-Federal sources for
the uses of funds under this part and in no case may such
funds be so used as to supplant such funds from such non-
Federal sources.
``SEC. 1079. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part, $25,000,000 for fiscal year 1993, and such sums as may
be necessary for each of the 4 succeeding fiscal years. Not
more than 3 percent of the amount appropriated for any fiscal
year may be used for purposes of section 1076.''.
TITLE XI--STUDENT COMMUNITY SERVICE
SEC. 1101. REVISION OF TITLE.
(a) Amendment.--Title XI of the Act is amended to read as
follows:
``TITLE XI--STUDENT COMMUNITY SERVICE
``PART A--HIGHER EDUCATION INNOVATIVE PROJECTS FOR COMMUNITY SERVICE
``SEC. 1101. HIGHER EDUCATION INNOVATIVE PROJECTS FOR
COMMUNITY SERVICE.
``(a) Purpose.--It is the purpose of this part to support
innovative projects to encourage students to participate in
community service activities while such students are
attending institutions of higher education.
``(b) General Authority.--The Secretary of Education, after
consultation with the Commission on National Service to
insure coordination of activities, is authorized to make
grants to, and enter into contracts with, institutions of
higher education (including a combination of such
institutions) and other public agencies and nonprofit
organizations working in partnership with institutions of
higher education--
``(1) to enable the institution to create or expand
community service activities for students attending that
institution;
``(2) to encourage student-initiated and student-designed
community service projects;
``(3) to encourage students to participate in community
service activities that will engender a sense of social
responsibility and commitment to the community;
``(4) to encourage students to assist in the teaching of
individuals with limited basic skills or an inability to read
and write; and
``(5) to provide for the training of teachers, prospective
teachers, related education personnel, and community leaders
in the skills necessary to develop, supervise, and organize
community service activities, taking into consideration the
particular needs of a community and the ability of the
grantee to actively involve a major part of the community in,
and substantially benefit the community by, the proposed
community service activities.
``(c) Federal Share.--
``(1) In general.--The Federal share of each grant awarded
under this section shall not exceed 50 percent of the cost of
the community service activities carried out with each such
grant.
``(2) Non-federal sources.--That portion of the costs of
programs that receive assistance under this part that are to
be paid from sources other than Federal funds may be paid in
cash or in kind (fairly evaluated).
``(d) Application for Grant.--To receive a grant under this
part, an applicant shall prepare and submit to the Secretary,
an application at such time, in such manner, and containing
such information as the Secretary may reasonably require,
including--
``(1) a description of the proposed program to be
established with assistance provided under the grant;
``(2) a description of the human, educational,
environmental or public safety service that participants will
perform and the community need that will be addressed under
such program;
``(3) a description of the procedure for training
supervisors and participants and for supervising and
organizing participants in such proposed program;
``(4) a description of the budget for the program; and
``(5) assurances that, prior to the placement of a
participant in the program, the applicant will consult with
any local labor organization representing employees, with any
employers, and with any business organizations in the area
who are engaged in the same or similar work or business as
that proposed to be carried out by such project.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated for the purposes of carrying
out part A, $15,000,000 for fiscal year 1993 and such sums as
may be necessary for the 4 succeeding fiscal years.
``PART B--STUDENT LITERACY CORPS AND STUDENT MENTORING CORPS
``SEC. 1111. PURPOSE.
``It is the purpose of this part to provide financial
assistance to institutions of higher education to promote the
development of literacy corps programs and mentoring corps
programs to be operated by institutions of higher education
in public community agencies in the communities in which such
institutions are located.
``SEC. 1112. LITERACY CORPS PROGRAM AND MENTORING CORPS
PROGRAM.
``(a) General Authority.--From the amount appropriated
pursuant to section 1116 for any fiscal year, the Secretary
is authorized, in accordance with the provisions of this
part, to make grants to institutions of higher education for
not to exceed 4 years to carry out literacy corps programs or
mentoring corps program.
``(b) Limitation.--An institution of higher education shall
only receive 1 grant under this part in each fiscal year.
``(c) Continuation of Literacy Program.--Grants under this
section are renewable upon application by the institution of
higher education in accordance with section 1114.
``(d) Federal Share.--
``(1) In general.--The Federal share of carrying out
student literacy corps programs under this part shall be--
``(A) up to 100 percent for an initial grant to an
institution of higher education; and
``(B) up to 75 percent for a grant renewed under subsection
(c).
``(2) Non-federal share.--The non-Federal share of carrying
out student literacy corps programs under this part may be
paid from any non-Federal sources.
``SEC. 1113. USES OF FUNDS.
``(a) In General.--Funds made available under this part may
be used for--
``(1) grants to institutions of higher education for--
``(A) the costs of participation of institutions of higher
education in the literacy corps program or mentoring corps
program for which assistance is sought; and
``(B) stipends for student coordinators engaged in the
literacy corps program or mentoring corps program for which
assistance is sought; and
``(2) technical assistance, collection and dissemination of
information, and evaluation in accordance with section 1115.
``(b) Limitations.--(1) No grant under this part to an
institution of higher education may exceed $100,000.
``(2) No institution of higher education may expend more
than $25,000 of a grant made under this part in the first
year in which the institution receives such a grant.
``SEC. 1114. APPLICATIONS.
``(a) Application Required.--Each institution of higher
education desiring to receive a grant under this part shall
submit an application to the Secretary, at such time, in such
manner, and containing or accompanied by such information as
the Secretary may reasonably require.
``(b) Contents of Application.--
``(1) Literacy corps.--Each application shall--
``(A) contain assurances that the institution will use the
grant in accordance with section 1113;
``(B) contain adequate assurances that--
``(i) the institution has established 1 or more courses of
instruction for academic credit which are designed to combine
the training of undergraduate students in various academic
departments such as social sciences, economics, and education
with experience as tutors;
``(ii) such individuals will be required, as a condition of
receiving credit in such course, to perform, for each credit,
not less than 2 hours a week, of voluntary, uncompensated
service during the academic term in a public community agency
as a tutor in such agency's educational or literacy program;
``(iii) such tutoring service will be supplementary to the
existing instructional services, offered in a structured
classroom setting, and furnished under the supervision of
qualified personnel; and
``(iv) the institution will locate such tutoring services
in one or more public community agencies which serve
educationally or economically disadvantaged individuals and
individuals with disabilities and, as provided in section
1116, will give priority in providing tutoring services to--
``(I) educationally disadvantaged students receiving
services under chapter 1 of title I of the Elementary and
Secondary Education Act of 1965;
``(II) students with disabilities; and
``(III) illiterate parents of educationally or economically
disadvantaged elementary school students, with special
emphasis on single-parent households; and
``(C) demonstrate that the institution of higher education
has participated, prior to applying for a grant under this
part, in community service activities, including the conduct
of a cooperative education program; and
``(D) contain such other assurances as the Secretary may
reasonably require.
``(2) Mentoring corps.--Each application shall--
[[Page 515]]
``(A) contain assurances that the institution will use the
grant in accordance with section 1113;
``(B) contain adequate assurances that--
``(i) the institution has established 1 or more courses of
instruction for academic credit which are designed to combine
the training of undergraduate students of various academic
departments with experience as mentors;
``(ii) such individuals will be required, as a condition of
receiving credit in such course, to perform not less than 60
hours of voluntary, uncompensated service during the academic
term as a mentor to economically disadvantaged children and
youth;
``(iii) such mentoring will be complimentary to the
existing instructional services offered in a structured
classroom setting, and will include structured and informal
activities geared towards improving the academic, social and
emotional development of children in the programs;
``(iv) the institution will locate public community
agencies or elementary/secondary schools which serve
educationally or economically disadvantaged youth and, as
provided in section 1116, will give priority in providing
mentoring services to economically disadvantaged children and
youth through community-based organizations or elementary/
secondary schools;
``(C) demonstrate that the institution of higher education
has participated, prior to applying for a grant under this
part, in community service activities, including the conduct
of a cooperative education program; and
``(D) contain such other assurances as the Secretary may
reasonably require.
``(c) Waiver.--The Secretary may, upon request of an
institution of higher education which does not meet the
requirements of clause (3) of subsection (b), grant a waiver
of the requirement under such clause if the institution of
higher education provides assurances that--
``(1) the institution of higher education has conducted
another significant program which involves community outreach
and service; or
``(2) its failure to engage in community service related
programs or activities prior to making application under this
part will not impede the ability of the institution to engage
in the outreach efforts necessary to carry out the
requirements of this part.
An institution of higher education may apply for a waiver as
part of the application described in subsection (b).
``(d) Reopening of Application Process.--The Secretary
shall accept applications for assistance under this part for
90 days following the date of enactment of this Act.
``SEC. 1115. TECHNICAL ASSISTANCE AND COORDINATION CONTRACT.
``To the extent that funds are available therefor pursuant
to section 1116, the Secretary may, directly or by way of
grant, contract, or other arrangement--
``(1) provide technical assistance to grant recipients
under this part;
``(2) collect and disseminate information with respect to
programs assisted under this part; and
``(3) evaluate such programs and issue reports on the
results of such evaluations.
``SEC. 1116. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out the
provisions of this part $15,000,000 for fiscal year 1993 and
such sums as may be necessary for each of the 4 succeeding
fiscal years.
``SEC. 1117. DEFINITION.
``For the purpose of this part--
``(1) Institution of higher education.--The term
`institution of higher education' (as defined in section 1201
of this Act), in the case of an institution of higher
education with a branch campus, means, at the election of the
institution--
``(A) a branch campus of the institution, or
``(B) the institution.
``(2) Public community agency.--The term `public community
agency' means an established community agency with an
established program of instruction such as elementary and
secondary schools, Head Start centers, prisons, agencies
serving youth, and agencies serving the handicapped,
including disabled veterans.
``PART C--INNOVATIVE PROJECTS FOR COMMUNITY SERVICES AND STUDENT
FINANCIAL INDEPENDENCE
``SEC. 1121. STATEMENT OF PURPOSE.
``It is the purpose of this part to support innovative
projects in order to determine the feasibility of encouraging
student participation in community service projects in
exchange for educational services or financial assistance and
thereby reduce the debt acquired by students in the course of
completing postsecondary educational programs.
``SEC. 1122. INNOVATIVE PROJECTS FOR COMMUNITY SERVICES AND
STUDENT FINANCIAL INDEPENDENCE.
``(a) General Authority.--The Secretary is authorized, in
accordance with the provisions of this part, to make grants
to and contracts with institutions of higher education
(including combinations of such institutions) and with such
other public agencies and nonprofit private organizations as
the Secretary deems necessary for innovative projects
designed to carry out the purpose of this part.
``(b) Applications.--No grant may be made and no contract
may be entered into under this section unless an application
is made at such time, in such manner, and contained or
accompanied by such information as the Director may require.
``(c) Applicable Procedures.--(1) No application may be
approved under subsection (b) unless the National Board of
the Fund for Improvement of Postsecondary Education, under
procedures established by the Director, approves the
application.
``(2) The provisions of section 1004(b) shall apply to
grants made under this part.
``(d) Definitions.--For the purposes of this part, the term
`Director' means the director of the Fund for the Improvement
of Postsecondary Education.
``SEC. 1123. AUTHORIZATION OF APPROPRIATIONS.
``(a) There are authorized to be appropriated to carry out
this part, $5,000,000 for fiscal year 1993, and such sums as
may be necessary for the 4 succeeding fiscal years.
``(b) No funds may be appropriated pursuant to subsection
(a) for any fiscal year unless funds are appropriated for
part A of this title for such fiscal year.
``PART D--COMMUNITY SERVICE-LEARNING
``SEC. 1131. PROGRAM AUTHORITY.
``(a) Purpose.--The purpose of this part is--
``(1) to encourage and enable institutions of higher
education to develop workstudy programs involving eligible
students in community service-learning designed to develop,
improve, or expand services for low-income individuals and
families or to solve particular problems related to the needs
of low-income individuals; and
``(2) to enable institutions to establish or expand a
program under which such institution, separately or in
combination with other eligible institutions and through
formal or informal consultation with local nonprofit,
governmental, educational, and community-based organizations,
locates and develops community services jobs for students
receiving assistance under part C of title IV.
``(b) Definitions.--For the purpose of this part--
``(1) `community service-learning program' means a program
of student work that--
``(A) provides tangible community services for or on behalf
of low-income individuals or families; and
``(B) to the maximum extent practicable, provides
participating students with work-learning opportunities which
complement and reinforce their educational programs or
vocational goals; and
``(2) `community services' means services which are
identified by an institution of higher education, through
formal or informal consultation with local nonprofit,
governmental, and community-based organizations, as designed
to improve the quality of life for community residents,
particularly low-income individuals, or to solve particular
problems related to their needs including, but not limited
to, such fields as health care, child care, literacy
training, education (including tutorial services), welfare,
social services, transportation, housing and neighborhood
improvement, public safety, crime prevention and control,
recreation, rural development, and community improvement.
``(c) Community Service Job Location and Development
Program.--The Secretary is authorized to enter into
agreements with eligible institutions to provide a program
under paragraph (2) of subsection (a) of this part, which
agreement shall--
``(1) provide that the Federal share of the cost of any
program under this section will not exceed 80 percent of such
cost;
``(2) provide satisfactory assurance that funds available
under this section will not be used for the location or
development of jobs for students to obtain upon graduation,
but rather for the location and development of jobs available
to students during and between periods of attendance at such
institution;
``(3) provide satisfactory assurance that the location or
development of jobs pursuant to programs assisted under this
part will not result in the displacement of employed workers
or impair existing contracts for service;
``(4) provide satisfactory assurance that Federal funds
used for the purpose of this part can realistically be
expected to help generate student wages exceeding, in the
aggregate, the amount of such funds, and that if such funds
are used to contract with another organization, appropriate
performance standards are part of such contract; and
``(5) provide that the institution will submit to the
Secretary an annual report on the uses made of funds provided
under this part and an evaluation of the effectiveness of
such program in benefiting the students of such institution.
``(d) Use of Funds.--The Secretary shall not regulate the
amount or the proportion of funds available to eligible
institutions, under this section, that they may use to carry
out the activities described in subsections (a), (c), and
(e). Such uses of funds shall be solely determined by each
such institution.
``(e) Use of Funds To Conduct Program.--Each institution
participating under this part may use funds made available
under section 442(e) to conduct that institution's program of
community service-learning, including--
``(1) development of mechanisms to assure the academic
quality of the student experience,
``(2) assuring student access to educational resources,
expertise, and supervision necessary to achieve community
service objectives, and
``(3) collaboration with public and private nonprofit
agencies in the planning, development, and administration of
such programs.
[[Page 516]]
``PART E--GRANTS FOR SEXUAL OFFENSES EDUCATION
``SEC. 1171. GRANTS FOR CAMPUS SEXUAL OFFENSES EDUCATION.
``(a) In General.--(1) The Secretary of Education is
authorized to make grants to or enter into contracts with
institutions of higher education for sexual offenses
education and prevention programs under this section.
``(2) The Secretary shall make financial assistance
available on a competitive basis under this section. An
institution of higher education or consortium of such
institutions which desires to receive a grant or enter into a
contract under this section shall submit an application to
the Secretary at such time, in such manner, and containing or
accompanied by such information as the Secretary may
reasonably require in accordance with regulations.
``(3) The Secretary shall make every effort to ensure the
equitable participation of private and public institutions of
higher education and to ensure the equitable geographic
participation of such institutions. In the award of grants
and contracts under this section, the Secretary shall give
priority to institutions who show the greatest need for the
sums requested.
``(b) General Sexual Offenses Prevention and Education
Grants.--Grants may be used for the following purposes:
``(1) to provide training for campus security and college
personnel, including campus disciplinary or judicial boards,
that address the issues of sexual offenses;
``(2) to develop, disseminate, or implement campus security
and student disciplinary policies to prevent and discipline
sexual offense crimes;
``(3) to develop, enlarge, or strengthen support services
programs including medical or psychological counseling to
assist victims' recovery from sexual offense crimes;
``(4) to create, disseminate, or otherwise provide
assistance and information about victims' options on and off
campus to bring disciplinary or other legal action; and
``(5) to implement, operate, or improve sexual offense
education and prevention programs, including programs making
use of peer-to-peer education.
``(c) Model Grants.--Not less than 25 percent of the funds
authorized under this section shall be available for grants
for model demonstration programs to be coordinated with local
rape crisis centers for the development and implementation of
quality rape prevention and education curricula and for local
programs to provide services to student sexual offense
victims.
``(d) Eligibility.--No institution of higher education or
consortium of such institutions shall be eligible for a grant
under this section unless--
``(1) its student code of conduct, or other written policy
governing student behavior explicitly prohibits all forms of
sexual offenses;
``(2) it has in effect and implements a written policy
requiring the disclosure of the victim of any sexual offense
the outcome of any investigation by campus police or campus
disciplinary proceedings brought pursuant to the victim's
complaint against the alleged perpetrator of the sexual
offense, except that nothing in this section shall be
interpreted to authorize disclosure to any person other than
the victim; and
``(3) the Secretary shall give priority to those grant
applicants who do not have an established campus education
program regarding sexual offenses.
``(e) Applications.--(1) In order to be eligible to receive
a grant under this section for any fiscal year, an
institution of higher education, or consortium of such
institutions, shall submit an application to the Secretary at
such time and in such manner as the Secretary shall
prescribe.
``(2) Each such application shall--
``(A) set forth the activities and programs to be carried
out with funds granted under this part;
``(B) contain an estimate of the cost for the establishment
and operation of such programs;
``(C) explain how the program intends to address the issue
of sexual offenses;
``(D) provide assurances that the Federal funds made
available under this section shall be used to supplement and,
to the extent practical, to increase the level of funds that
would, in the absence of such Federal funds, be made
available by the applicant for the purpose described in this
part, and in no case to supplant such funds; and
``(E) include such other information and assurances as the
Secretary reasonably determines to be necessary.
``(f) Grantee Reporting.--Upon completion of the grant
period under this section, the grantee institution or
consortium of institutions shall file a performance report
with the Secretary explaining the activities carried out
together with an assessment of the effectiveness of those
activities in achieving the purposes of this section. The
Secretary shall suspend funding for an approved application
if an applicant fails to submit an annual performance report.
``(g) Definitions.--For purposes of this part, the term
`sexual offenses educational and prevention' includes
programs that provide education seminars, peer-to-peer
counseling, operation of hotlines, self-defense courses, the
prepartion of informational materials, and any other effort
to increase campus awareness of the facts about, or to help
prevent, sexual offenses.
``(h) General Terms and Conditions.--
``(1) Regulations.--No later than 45 days after the date of
enactment of this section, the Secretary shall publish
proposed regulations implementing this section. No later than
120 days after such date, the Secretary shall publish final
regulations implementing this section.
``(2) Reports to congress.--No later than 180 days after
the end of each fiscal year for which grants are made under
this section, the Secretary shall submit to the committees of
the House of Representatives and the Senate reponsible for
issues relating to higher education and to crime, a report
that includes--
``(A) the amount of grants made under this section;
``(B) a summary of the purposes for which those grants were
provided and an evaluation of their progress; and
``(C) a copy of each grantee report filed pursuant to
subsection (f) of this section.
``(3) For the purpose of carrying out this subchapter,
there are authorized to be appropriated $20,000,000 for the
fiscal year 1993, and such sums as may be necessary for each
of the 4 succeeding fiscal years.
``PART F--DWIGHT D. EISENHOWER LEADERSHIP PROGRAM
``SEC. 1181. SHORT TITLE; ESTABLISHMENT OF THE PROGRAM.
``(a) Short Title.--This part may be cited as the `Dwight
D. Eisenhower Leadership Development Act of 1992'.
``(b) Establishment of Program.--
``(1) In general.--The Secretary shall establish a program
to be known as the `Dwight D. Eisenhower Leadership
Development Program'.
``(2) Special rule.--The program assisted under this part
shall be established in conjunction with institutions of
higher education which are specially prepared to undertake
the development of new generations of leaders in the areas of
national and international affairs.
``(c) Functions of the Program.--The functions of the
program assisted under this part shall include--
``(1) stimulating and supporting the development of
leadership skills among new generations of American college
students;
``(2) directing a national program that identifies,
recruits, inspires, and educates outstanding young men and
women regarding leadership roles in a wide variety of fields
in both the public and private sectors;
``(3) offering opportunities for young, needy, American
leaders, with a priority given to those who qualify for
assistance under title IV of this Act, to benefit from
internships in national and international organizations, with
special attention being given to establishing such
opportunities in developing countries;
``(4) developing curriculum for secondary and postsecondary
education;
``(5) developing a prototype for understanding and teaching
critical leadership skills to young Americans and encouraging
institutions of higher education to establish similar
leadership programs throughout the United States and abroad;
and
``(6) stimulating the theoretical and practical study of
leadership and leadership development to develop both a
better understanding of leadership and improved methods to
teach critical skills to young adults.
``(d) Operation of the Program.--The Secretary is
authorized to make grants to or enter into cooperative
agreements, contracts, or leases with institutions of higher
education (as defined in section 1201 of this title) or with
nonprofit private organizations in consortia with such
institutions to operate the program assisted under this part.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated $10,000,000 for fiscal year
1993 and such sums as may be necessary for each of the 4
succeeding fiscal years to carry out this part.''.
(b) Conforming Amendment.--Section 118 of the National and
Community Service Act of 1990 is repealed.
TITLE XII--GENERAL PROVISIONS
SEC. 1201. DEFINITIONS.
(a) Institution of Higher Education.--Section 1201(a) of
the Act is amended--
(1) in the first sentence, by striking ``, or if not so
accredited'' through ``institution so accredited''; and
(2) in the last sentence--
(A) by inserting after ``quality of'' in the last sentence
``the education or''; and
(B) by inserting before the period ``, pursuant to section
1205''.
(b) Cross Reference Definitions.--Section 1201 of the Act
is amended--
(1) by redesignating subsections (l) and (m) as subsections
(m) and (n), respectively; and
(2) by striking subsections (d) through (k) and inserting
the following:
``(d) The term `secondary school' has the same meaning
given that term under section 1471(21) of the Elementary and
Secondary Education Act of 1965.
``(e) The term `Secretary' means the Secretary of
Education.
``(f) The term `local educational agency' has the same
meaning given that term under section 1471(12) of the
Elementary and Secondary Education Act of 1965.
``(g) The term `State educational agency' has the same
meaning given that term under section 1471(23) of the
Elementary and Secondary Education Act of 1965.
``(h) The term `elementary school' has the same meaning
given that term under section 1471(8) of the Elementary and
Secondary Education Act of 1965.
``(i) The term `combination of institutions of higher
education' means a group of insti-
[[Page 517]]
tutions of higher education that have entered into a
cooperative arrangement for the purpose of carrying out a
common objective, or a public or private nonprofit agency,
organization, or institution designated or created by a group
of institutions of higher education for the purpose of
carrying out a common objective on their behalf.
``(j) The term `gifted and talented children' has the same
meaning given that term under section 4103(1) of the
Elementary and Secondary Education Act of 1965.
``(k) The term `disability' shall have the same meanings as
defined in section 3 of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12102).
``(l) The term `special education teacher' means teachers
who teach children with disabilities as defined in the
Individuals With Disabilities Education Act.''.
SEC. 1202. ANTIDISCRIMINATION.
Section 1202 of the Act is amended--
(1) by inserting ``(a) In General.--'' after ``Sec.
1202.''; and
(2) by adding at the end the following:
``(b) Limitations on Statutory Construction.--Nothing in
this Act shall be construed to limit the rights or
responsibilities of any individual under the Americans With
Disabilities Act of 1990, the Rehabilitation Act of 1973, or
any other law.''.
SEC. 1203. THE NATIONAL ADVISORY COMMITTEE ON ACCREDITATION
AND INSTITUTIONAL ELIGIBILITY.
Section 1205 of the Act is amended--
(1) in subsection (c)(1), by inserting ``education and''
after ``quality of ''; and
(2) in subsection (f), by striking ``1991'' and inserting
``1997''.
SEC. 1204. APPROVAL OF ACCREDITING AGENCY OR ASSOCIATION.
Title XII of the Act is amended by inserting after section
1205 the following new section:
``SEC. 1205A. APPROVAL OF ACCREDITING AGENCY OR ASSOCIATION.
``(a) Standards Required.--No accrediting agency or
association may be determined by the Secretary to be a
reliable authority as to the quality of education or training
offered for this Act or other Federal purposes, unless the
agency or association meets standards established by the
Secretary pursuant to this section. The Secretary shall,
after notice and opportunity for a hearing, establish
standards for such determinations. Such standards shall
require that--
``(1) the accrediting agency or association shall be a
regional, national, or State agency or association and shall
demonstrate the ability and the experience to operate as an
accrediting agency or association within the State, region,
or nationally, as appropriate;
``(2)(A) for the purpose of participation in programs under
this Act, such agency or association has a voluntary
membership and has as a principal purpose the accrediting of
institutions of higher education or is a State; or
``(B) for the purpose of participation in other programs
administered by the Department of Education or other Federal
agencies, such agency or association has a voluntary
membership and has as its principal purpose the accrediting
of institutions of higher education or programs;
``(3) such agency or association is separate and
independent, both administratively and financially, of any
related, associated, or affiliated trade association or
membership organization, except for voluntary professional
organizations and agencies or associations which have as
their principal purpose the accreditation of programs within
institutions, which are accredited by another agency or
association recognized by the Secretary;
``(4) such agency or association consistently applies and
enforces standards that ensure that the courses or programs
of instruction, training, or study at the institution of
higher education are of sufficient quality to achieve, for
the duration of the accreditation period, the stated
objective for which the courses or the programs are offered;
``(5) the standards of accreditation of the agency or
association shall assess the institution's--
``(A) curricula,
``(B) faculty,
``(C) facilities, equipment, and supplies,
``(D) fiscal and administrative capacity at a specified
scale of operations,
``(E) student support services,
``(F) recruiting and admissions practices, academic
calendars, catalogs, publications, grading and advertising,
``(G) program length and tuition and fees in relation to
the subject matters taught, the objectives of the degrees or
credentials offered,
``(H) measures of program length in clock hours or credit
hours,
``(I) success with respect to student achievement in
relation to its mission, including, as appropriate,
consideration of course completion, State licensing
examination, and job placement rates,
``(J) default rates in the student loan programs under
title IV of this Act,
``(K) record of student complaints, and
``(L) compliance with its program responsibilities under
title IV of this Act, including any results of financial or
compliance audits, program reviews, and such other
information as the Secretary may provide to the agency or
association, and
such standards shall also include an appropriate measure or
measures of student achievement;
``(6) such agency or association shall apply procedures
throughout the accrediting process, including evaluation and
withdrawal proceedings, that comply with due process,
including--
``(A) adequate specification of requirements and
deficiencies at the institution of higher education or
program being examined;
``(B) notice of an opportunity for a hearing by any such
institution;
``(C) the right to appeal from any adverse action against
any such institution; and
``(D) the right to representation by counsel for any such
institution;
``(7) such agency or association shall notify the Secretary
and the appropriate State postsecondary agency or agencies in
a timely fashion of the accreditation of an institution and
any final denial, withdrawal, or termination of accreditation
of an institution, together with any other action taken with
respect to an institution; and
``(8) such agency or association shall make available to
the public a summary of the specific reasons for any final
accrediting decisions involving denial, termination, or
suspension of accreditation, together with the comments of
the affected institution, and shall give the institution at
least 30 days notice prior to the release of such summary.
``(b) Separate and Independent Defined.--For the purpose of
subsection (a)(3), the term `separate and independent' means
that--
``(1) the members of the postsecondary education governing
body of the accrediting agency or association are not elected
or selected by the board or chief executive officer of any
related, associated, or affiliated trade association or
membership organization;
``(2) at least 25 percent of the members of the policy and
decision making bodies of the accrediting agency or
association are representative of the general public (not
members of any related, associated, or affiliated trade
association or membership organization), and guidelines are
established for such members to avoid conflicts of interest;
``(3) dues to the accrediting agency or association are
paid separately from any dues paid to any related,
associated, or affiliated trade association or membership
organization; and
``(4) the budget of the accrediting agency or association
is developed and determined by the accrediting agency or
association without review or resort to consultation with any
other entity or organization.
``(c) Operating Procedures Required.--No accrediting agency
or association may be approved by the Secretary for the
purpose of this title, unless the agency or association--
``(1) performs, at regularly established intervals, on-site
inspections and reviews of institutions of higher education
(at least one such visit at each institution whose primary
purpose is to provide vocational education and training
should be unannounced), with particular focus on educational
quality and program effectiveness, and assures that
accreditation team members are well-trained and knowledgeable
with respect to their responsibilities;
``(2) requires institutions of higher education subject to
its jurisdiction which plan to establish a branch campus to
submit a business plan prior to opening the branch campus;
``(3) agrees to conduct, as soon as practicable, but within
a period of not more than 6 months of the establishment of a
new branch campus or a change of ownership of an institution
of higher education an on-site visit of that branch campus or
of the institution after a change of ownership;
``(4) requires that teach-out agreements among institutions
are subject to approval by the accrediting agency or
association consistent with standards promulgated by such
agency or association;
``(5) maintains and makes publicly available written
materials regarding standards and procedures for
accreditation, appeal procedures and the accreditation status
of each institution subject to its jurisdiction; and
``(6) discloses publicly whenever an institution of higher
education subject to its jurisdiction is being considered for
accreditation or reaccreditation.
``(d) Length of Approval.--No accrediting agency or
association may be approved by the Secretary for the purpose
of this Act for a period of more than 5 years.
``(e) Initial Arbitration Rule.--The Secretary may not
recognize the accreditation of any institution of higher
education unless the institution of higher education agrees
to submit any dispute involving the final denial, withdrawal,
or termination of accreditation to initial arbitration prior
to any other legal action.
``(f) Limitation on Scope of Standards.--Nothing in this
Act shall be construed to permit the Secretary to establish
standards for accrediting agencies or associations which are
not provided for in this section. Nothing in this Act shall
be construed to prohibit or limit any accrediting agency or
association from adopting additional standards not provided
for in this section: Provided, That such additional standards
are not applied in a manner that is inconsistent with the
institution's mission or contrary to the religious beliefs
espoused by the institution.
``(g) Accreditation Rule.--The Secretary shall not
recognize the accreditation of any eligible institution of
higher education if the institution of higher education is in
the process of changing its accrediting agency or
association, unless the eligible institution submits to the
Secretary all materials relating to the prior accreditation,
including materials demonstrating reasonable cause for
changing the accrediting agency or association.
[[Page 518]]
``(h) Dual Accreditation Rule.--The Secretary shall not
recognize the accreditation of any eligible institution of
higher education if the institution of higher education is
accredited by more than one accrediting agency or
association, unless the institution submits to each such
agency and association and to the Secretary the reasons for
accreditation by more than one such agency or association and
demonstrates to the Secretary reasonable cause for its
accreditation by more than one agency or association. If the
institution is accredited by more than one accrediting agency
or association, the institution shall designate which
agency's accreditation shall be utilized in determining the
institution's eligibility for programs under this Act.
``(i) Impact of Loss of Accreditation.--An institution may
not be certified or recertified as an institution of higher
education under section 481 or participate in any of the
other programs authorized by this Act if such institution--
``(1) is not currently accredited by any agency or
association recognized by the Secretary;
``(2) has had its accreditation withdrawn, revoked, or
otherwise terminated for cause during the preceding 24 months
unless such withdrawal, revocation, or termination has been
rescinded by the same accrediting agency; or
``(3) has withdrawn from accreditation voluntarily under a
show cause or suspension order during the preceding 24 months
unless such order has been rescinded by the same accrediting
agency.
``(j) Suspension of Approval.--The Secretary shall suspend
the approval of an accrediting agency or association if the
Secretary determines, after notice and opportunity for a
hearing, that the accrediting agency or association has
failed to effectively apply the standards or operate
according to the procedures provided in this section.
``(k) Limitation on the Secretary's Authority.--The
Secretary may only recognize accrediting agencies or
associations which accredit institutions of higher education
for the purpose of enabling such institution to establish
eligibility to participate in the programs under this Act or
which accredit institutions of higher education or higher
education programs for the purpose of enabling them to
establish eligibility to participate in other programs
administered by the Department of Education or other Federal
agencies.
``(l) Independent Evaluation.--(1) The Secretary shall
conduct a comprehensive review and evaluation of the
performance of all accrediting agencies or associations which
seek recognition by the Secretary in order to determine
whether such accrediting agencies or associations meet the
standards established by this section. The Secretary shall
conduct an independent evaluation of the information provided
by such agency or association. Such evaluation shall include:
``(A) the solicitation of third-party information
concerning the performance of the accrediting agency or
association; and
``(B) site visits at both the accrediting agency or
association and member institutions, including unannounced
visits where appropriate.
``(2) The Secretary shall place a priority for review of
accrediting agencies or associations on those which accredit
institutions of higher education which participate most
extensively in the programs authorized by title IV of this
Act and on those agencies or associations which have been the
subject of the most complaints or legal actions.
``(3) The Secretary shall consider all available
information concerning the compliance of the accrediting
agency or association with the standards provided for in this
section, including any complaints or legal actions against
such agency or association. In cases where deficiencies in
the performance of an accreditation agency or association
with respect to the requirements of this section are noted,
the Secretary shall take these deficiencies into account in
the approval process. The Secretary shall not, under any
circumstances, base decisions on the approval or disapproval
of accreditation agencies or associations on standards other
than those contained in this section.
``(4) The Secretary shall maintain sufficient documentation
to support the conclusions reached in the approval process,
and upon disapproval of any accreditation agency or
association, shall make publicly available the reason for
such disapproval, including reference to the specific
standards under this section which have not been fulfilled.
``(m) Regulations.--The Secretary shall by regulation
provide for procedures for the recognition of accrediting
agencies or associations and for the appeal of the
Secretary's decisions.
``(n) Definition.--For the purpose of this section, the
term `accrediting agency or association' includes any
organization recognized by the Secretary for the purposes of
this section including, but not limited to, boards,
commissions and committees.''.
SEC. 1205. DISCLOSURE OF FOREIGN GIFTS AND FOREIGN OWNERSHIP.
Title XII of the Higher Education Act of 1965 is amended by
inserting after section 1208 the following section:
``disclosures of foreign gifts
``Sec. 1209. (a) Disclosure Report.--Whenever any
institution is owned or controlled by a foreign source or
receives a gift from or enters into a contract with a foreign
source, the value of which is $250,000 or more, considered
alone or in combination with all other gifts from or
contracts with that foreign source within a calendar year,
the institution shall file a disclosure report with the
Secretary on January 31 or July 31, whichever is sooner.
``(b) Contents of Report.--Each report to the Secretary
required by this Act shall contain:
``(1) For gifts received from or contracts entered into
with a foreign source other than a foreign government, the
aggregate dollar amount of such gifts and contracts
attributable to a particular country. The country to which a
gift is attributable is the country of citizenship, or if
unknown, the principal residence for a foreign source who is
a natural person, and the country of incorporation, or if
unknown, the principal place of business, for a foreign
source which is a legal entity.
``(2) For gifts received from or contracts entered into
with a foreign government, the aggregate amount of such gifts
and contracts received from each foreign government.
``(3) In the case of an institution which is owned or
controlled by a foreign source, the identity of the foreign
source, the date on which the foreign source assumed
ownership or control, and any changes in program or structure
resulting from the change in ownership or control.
``(c) Additional Disclosures for Restricted and Conditional
Gifts.--Notwithstanding the provisions of subsection (b),
whenever any institution receives a restricted or conditional
gift or contract from a foreign source, the institution shall
disclose:
``(1) For such gifts received from or contracts entered
into with a foreign source other than a foreign government,
the amount, the date, and a description of such conditions or
restrictions. The report shall also disclose the country of
citizenship, or if unknown, the principal residence for a
foreign source which is a natural person, and the country of
incorporation, or if unknown, the principal place of business
for a foreign source which is a legal entity.
``(2) For gifts received from or contracts entered into
with a foreign government, the amount, the date, a
description of such conditions or restrictions, and the name
of the foreign government.
``(d) Relation to Other Reporting Requirements.--
``(1) State requirements.--If an institution described
under subsection (a) is within a State which has enacted
requirements for public disclosure of gifts from or contracts
with a foreign source that are substantially similar to the
requirements of this section, a copy of the disclosure report
filed with the State may be filed with the Secretary in lieu
of a report required under subsection (a). The State in which
the institution is located shall provide to the Secretary
such assurances as the Secretary may require to establish
that the institution has met the requirements for public
disclosure under State law if the State report is filed.
``(2) Use of other federal reports.--If an institution
receives a gift from, or enters into a contract with, a
foreign source, where any other department, agency, or bureau
of the Executive Branch requires a report containing
requirements substantially similar to those required under
this Act, a copy of this report may be filed with the
Secretary in lieu of a report required under subsection (a).
``(e) Public Inspection.--All disclosure reports required
by this Act shall be public records open to inspection and
copying during business hours.
``(f) Enforcement.--
``(1) Court orders.--Whenever it appears that an
institution has failed to comply with the requirements of
this section, including any rule or regulation promulgated
thereunder, a civil action may be brought in an appropriate
district court of the United States, or the appropriate
United States court of any territory or other place subject
to the jurisdiction of the United States, to request such
court to compel compliance with the requirements of the Act.
``(2) Costs.--For knowing or willful failure to comply with
the requirements of this section, including any rule or
regulation promulgated thereunder, an institution shall pay
to the Treasury of the United States the full costs to the
United States of obtaining compliance, including all
associated costs of investigation and enforcement.
``(g) Regulations.--The Secretary may promulgate
regulations to carry out the ministerial duties imposed on
the Secretary by this section.
``(h) Definitions.--For the purpose of this section--
``(1) the term `contract' means any agreement for the
acquisition by purchase, lease, or barter of property or
services by the foreign source, for the direct benefit or use
of either of the parties;
``(2) the term `foreign source' means--
``(A) a foreign government, including an agency of a
foreign government;
``(B) a legal entity, governmental or otherwise, created
solely under the laws of a foreign state or states;
``(C) an individual who is not a citizen or a national of
the United States or a trust territory or protectorate
thereof; and
``(D) an agent, including a subsidiary or affiliate of a
foreign legal entity, acting on behalf of a foreign source;
``(3) the term `gift' means any gift of money or property;
``(4) the term `institution' means any institution, public
or private, or, if a multicampus institution, any single
campus of such institution, in any State which--
[[Page 519]]
``(A) is legally authorized within such State to provide a
program of education beyond high school;
``(B) provides a program for which it awards a bachelor's
degree (or provides not less than a 2-year program which is
acceptable for full credit toward such a degree) or more
advanced degrees; and
``(C) is accredited by a nationally recognized accrediting
agency or association and to which institution Federal
financial assistance is extended (directly or indirectly
through another entity or person), or which institution
receives support from the extension of Federal financial
assistance to any of its subunits; and
``(5) the term `restricted or conditional gift or contract'
means any endowment, gift, grant, contract, award, present,
or property of any kind which includes provisions regarding
(A) the employment, assignment, or termination of faculty;
(B) the establishment of departments, centers, research or
lecture programs, or new faculty positions; (C) the selection
or admission of students; or (D) the award of grants, loans,
scholarships, fellowships, or other forms of financial aid
restricted to students of a specified country, religion, sex,
ethnic origin, or political opinion.''.
SEC. 1206. ADMISSION OF MINORITY STUDENTS.
(a) Findings.--The Congress finds that racial
discrimination is indefensible, improper, and immoral.
(b) Sense of Congress.--It is the sense of the Congress
that--
(1) institutions of higher education should review their
admissions policies and, if necessary, revise them to ensure
that applicants are not illegally excluded from admission;
(2) the Attorney General should investigate allegations of
illegal racial discrimination in the admissions policies of
institutions of higher education and pursue legal action
against those schools which have violated title IV or VI
(relating to desegregation of public education and
nondiscrimination in federally assisted programs
respectively), or both, of the Civil Rights Act of 1964 (42
U.S.C. 2000c--2000c-8 and 42 U.S.C. 2000d--2000d-6
respectively); and
(3) the Secretary of Education should conclude, as soon as
possible, the compliance reviews on admissions policies of
certain institutions of higher education being conducted by
the Department of Education and should, in addition, initiate
additional reviews of the admissions policies of schools
alleged to have illegally discriminated on the basis of race.
TITLE XIII--INDIAN HIGHER EDUCATION PROGRAMS
PART A--TRIBALLY CONTROLLED COMMUNITY COLLEGES
SEC. 1301. REAUTHORIZATION OF THE TRIBALLY CONTROLLED
COMMUNITY COLLEGES ACT.
(a) General Authorization.--Section 110(a) of the Tribally
Controlled Community College Assistance Act of 1978 is
amended to read as follows:
``Sec. 110. (a)(1) There is authorized to be appropriated,
for the purpose of carrying out section 105 $3,200,000 for
fiscal year 1993 and such sums as may be necessary for each
of the 4 succeeding fiscal years.
``(2) There is authorized to be appropriated for the
purpose of carrying out section 107, $30,000,000 for fiscal
year 1993 and such sums as may be necessary for each of the 4
succeeding fiscal years.
``(3) There is authorized to be appropriated for the
purpose of carrying out sections 112(b) and 113, $10,000,000
for fiscal year 1993 and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
(b) Endowment Grants.--Section 306(a) of such Act is
amended to read as follows:
``Sec. 306. (a) There are authorized to be appropriated to
carry out the provisions of this title, $5,000,000 for fiscal
year 1993 and such sums as may be necessary for each of the 4
succeeding fiscal years.''.
(c) Economic Development.--Section 403 of such Act is
amended to read as follows:
``SEC. 403. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated for grants under
this title, $2,000,000 for fiscal year 1993 and such sums as
may be necessary for each of the 4 succeeding fiscal
years.''.
(d) Navajo Community Colleges.--Section 5(a)(1) of the
Navajo Community College Act is amended to read as follows:
``Sec. 5. (a)(1) For the purpose of making construction
grants under this Act, there are authorized to be
appropriated $2,000,000 for fiscal year 1993 and such sums as
may be necessary for each of the 4 succeeding fiscal
years.''.
PART B--HIGHER EDUCATION TRIBAL GRANT AUTHORIZATION ACT
SEC. 1311. SHORT TITLE.
This part may be cited as the ``Higher Education Tribal
Grant Authorization Act''.
SEC. 1312. FINDINGS.
The Congress finds that--
(1) there are increasing numbers of Indian students
qualifying for postsecondary education, and there are
increasing numbers desiring to go to postsecondary
institutions;
(2) the needs of these students far outpace the resources
available currently;
(3) Indian tribes have shown an increasing interest in
administering programs serving these individuals and making
decisions on these programs reflecting their determinations
of the tribal and human needs;
(4) the contracting process under the Indian Self-
Determination and Education Assistance Act has provided a
mechanism for the majority of the tribes to assume control
over this program from the Bureau of Indian Affairs;
(5) however, inherent limitations in the contracting
philosophy and mechanism, coupled with cumbersome
administrative procedures developed by the Bureau of Indian
Affairs have effectively limited the efficiency and
effectiveness of these programs;
(6) the provision of these services in the most effective
and efficient form possible is necessary for tribes, the
country, and the individuals to be served; and
(7) these services are part of the Federal Government's
continuing trust responsibility to provide education services
to American Indian and Alaska Natives.
SEC. 1313. PROGRAM AUTHORITY.
(a) In General.--The Secretary shall, from the amounts
appropriated for the purpose of supporting higher education
grants for Indian students under the authority of the Act of
November 2, 1921, popularly known as the Snyder Act (25
U.S.C. 13), make grants to Indian tribes in accordance with
the requirements of this part to permit those tribes to
provide financial assistance to individual Indian students
for the cost of attendance at institutions of higher
education.
(b) Limitation on Secretary's Authority.--The Secretary
shall not place any restrictions on the use of funds provided
to an Indian tribe under this part that is not expressly
authorized by this part.
(c) Effect on Federal Responsibilities.--The provisions of
this part shall not affect any trust responsibilities of the
Federal Government.
(d) No Termination for Administrative Convenience.--Grants
provided under this part may not be terminated, modified,
suspended, or reduced only for the convenience of the
Administering agency.
SEC. 1314. QUALIFICATION FOR GRANTS TO TRIBES.
(a) Contracting Tribes.--Any Indian tribe that obtains
funds for educational purposes similar to those authorized in
this part pursuant to contract under the Indian Self-
Determination and Education Assistance Act may qualify for a
grant under this part by submitting to the Secretary a notice
of intent to administer a student assistance program under
section 1313. Such notice shall be effective for the fiscal
year following the fiscal year in which it is submitted,
except that if such notice is submitted during the last 90
days of a fiscal year such notice shall be effective the
second fiscal year following the fiscal year in which it is
submitted, unless the Secretary waives this limitation.
(b) Noncontracting Tribes.--Any Indian tribe that is not
eligible to qualify for a grant under this part by filing a
notice under subsection (a) may qualify for such a grant by
filing an application for such a grant. Such application
shall be submitted under guidelines for programs under the
Indian Self-Determination and Education Assistance Act, as in
effect on January 1, 1991, and shall be reviewed under the
standards, practices, and procedures applicable to
applications to contract under such Act as in effect on the
date the application is received, except that--
(1) if the tribe is not notified that its application has
been disapproved within 180 days after it is filed with the
Secretary, the application shall be deemed to be approved;
(2) if the application is disapproved, the Secretary shall
provide technical assistance to the tribe for purposes of
correcting deficiencies in the application;
(3) the Secretary shall designate an office or official to
receive such applications, and shall toll the 180-day period
described in paragraph (1) from the date of receipt by such
office or official; and
(4) applications shall be approved for the fiscal year
following the fiscal year in which submitted, unless the
Secretary waives the limitation of this paragraph.
(c) Termination of Grants.--
(1) Continuing eligibility presumed.--An Indian tribe which
has qualified under subsection (a) or (b) for a grant under
this part for any fiscal year shall continue to be eligible
for such a grant for each succeeding fiscal year unless the
Secretary revokes such eligibility for a cause described in
paragraph (2).
(2) Causes for loss of eligibility.--The Secretary may
revoke the eligibility of an Indian tribe for a grant under
this part if such tribe--
(A) fails to submit to the Bureau an annual financial
statement that reports revenues and expenditures determined
by use of an accounting system, established by the tribe,
that complies with generally accepted accounting principles;
(B) fails to submit to the Bureau an annual program
description, stating the number of students served, and
containing such information concerning such students, their
educational programs and progress, and the financial
assistance distributed to such students as the Secretary may
require by regulation;
(C) fails to submit to the Secretary a biennial financial
audit conducted in accordance with chapter 75 of title 31,
United States Code; or
(D) fails, in an evaluation of its financial assistance
program conducted by an impartial third party entity, to
comply with standards under this part relating to (i)
eligible students, programs, or institutions of higher
education, (ii) satisfactory progress, or (iii) allowable
administrative costs; as determined under contracts
applicable to programs to provide financial assistance to
indi-
[[Page 520]]
vidual Indian students for the cost of attendance at
institutions of higher education administered by Indian
tribes under the Indian Self-Determination and Education
Assistance Act and in effect on January 20, 1991.
(3) Procedures for revocation of eligibility.--The
Secretary shall not revoke the eligibility of an Indian tribe
for a grant under this part except--
(A) after notice in writing to the tribe of the cause and
opportunity to the tribe to correct;
(B) providing technical assistance to the tribe in making
such corrections; and
(C) after hearing and appeals conducted under the same
rules and regulations that apply to similar termination
actions under the Indian Self-Determination and Education
Assistance Act.
SEC. 1315. ALLOCATION OF GRANT FUNDS.
(a) Allocation of Funds.--
(1) In general.--The Secretary shall continue to determine
the amount of program funds to be received by each grantee
under this part by the same method used for determining such
distribution in fiscal year 1991 for tribally-administered
and Bureau-administered programs of grants to individual
Indians to defray postsecondary expenses.
(2) Administrative costs.--In addition to the amount
determined under paragraph (1), a grantee which has exercised
the option given in section 1314(a) to administer the program
under a grant shall receive an amount for administrative
costs determined pursuant to the method used by the grantee
during the preceding contract period. All other grantees
shall receive an amount for administrative costs determined
pursuant to the regulations governing such determinations
under the Indian Self Determination and Education Assistance
Act, as in effect at the time of application to grants being
made.
(3) Single grant; separate accounts.--Each grantee shall
receive only one grant during any fiscal year, which shall
include both of the amounts under paragraphs (1) and (2).
Each grantee shall maintain this grant in a separate account.
(b) Use of Funds.--Funds provided by grants under this part
shall be used--
(1) to make grants to individual Indian students to meet,
on the basis of need, any educational expense of attendance
in a postsecondary education program (as determined under the
contracts applying to the postsecondary education program
administered by tribes under the Indian Self Determination
and Education Assistance Act (Public Law 93-638)), to the
extent that such expense is not met from other sources or
cannot be defrayed through the action of any State, Federal,
or municipal Act, except that nothing in this subsection
shall be interpreted as requiring any priority in
consideration of resources; and
(2) costs of administering the program under this part,
except that no more may be spent on administration of such
program than is generated by the method for administrative
cost computation specified in section 1315(a)(2).
SEC. 1316. LIMITATIONS ON USE OF FUNDS.
(a) Use for Religious Purposes.--None of the funds made
available under this part may be used for study at any school
or department of divinity or for any religious worship or
sectarian activity.
(b) Interest on Funds.--No interest or other income on any
funds made available under this part shall be used for any
purpose other than those for which such funds may be used.
(c) Payments.--
(1) In general.--Except as otherwise provided in this
subsection, the Secretary shall make payments to grantees
under this part in two payments--
(A) one payment to be made no later than October 1 of each
fiscal year in an amount equal to one-half the amount paid
during the preceding fiscal year to the grantee or a
contractor that has elected to have the provisions of this
part apply, and
(B) the second payment consisting of the remainder to which
the grantee or contractor is entitled for the fiscal year to
be made by no later than January 1 of the fiscal year.
(2) New grantees.--For any tribe for which no payment was
made under this part in the preceding fiscal year, full
payment of the amount computed for each fiscal year shall be
made by January 1 of the fiscal year.
(d) Investment of Funds.--
(1) Treatment as tribal property.--Notwithstanding any
other provision of law, any interest or investment income
that accrues on any funds provided under this part after such
funds are paid to the Indian tribe or tribal organization and
before such funds are expended for the purpose for which such
funds were provided under this part shall be the property of
the Indian tribe or tribal organization and shall not be
taken into account by any officer or employee of the Federal
Government in determining whether to provide assistance, or
the amount of assistance, under any provision of Federal law.
(2) Investment requirements.--Funds provided under this
part may be--
(A) invested by the Indian tribe or tribal organization
only in obligations of the United States or in obligations or
securities that are guaranteed or insured by the United
States, or
(B) deposited only into accounts that are insured by an
agency or instrumentality of the United States.
(e) Recoveries.--For the purposes of underrecovery and
overrecovery determinations by any Federal agency for any
other funds, from whatever source derived, funds received
under this part shall not be taken into consideration.
SEC. 1317. ADMINISTRATIVE PROVISIONS.
(a) Biennial Report.--The Secretary shall submit a biennial
report to the Congress on the programs established under this
part. Such report shall include--
(1) a description of significant administrative actions
taken by the Secretary under this part;
(2) the number of grants made under the authority of this
part;
(3) the number of applications denied for such grants and
the reasons therefor;
(4) the remedial actions taken to enable applicants to be
approved;
(5) the number of students served, by tribe;
(6) statistics on the academic pursuits of the students
provided assistance under this part the average amount of
assistance provided; and
(7) such additional information as the Secretary considered
significant.
(b) Role of the Director.--Applications for grants under
this part, and all application modifications, shall be
reviewed and approved by personnel under the direction and
control of the Director of the Office of Indian Education
Programs. Required reports shall be submitted to education
personnel under the direction and control of the Director of
such Office.
(c) Application of Indian Self-Determination and Education
Assistance Act.--All provisions of sections 5, 6, 7, 105,
109, and 110 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450c et seq.), except those
provisions pertaining to indirect costs and length of
contract, shall apply to grants provided under this part.
(d) Regulations.--The Secretary is authorized to issue
regulations relating to the discharge of duties specifically
assigned to the Secretary by this part. In all other matters
relating to the details of planning, development,
implementing, and evaluating grants under this part, the
Secretary shall not issue regulations. Regulations issued
pursuant to this part shall not have the standing of a
Federal statute for the purposes of judicial review.
(e) Retrocession.--Whenever an Indian tribe requests
retrocession of any program for which assistance is provided
under this part, such retrocession shall become effective
upon a date specified by the Secretary not more than 120 days
after the date on which the tribe requests the retrocession,
or such later date as may be mutually agreed upon by the
Secretary and the tribe. If such a program is retroceded, the
Secretary shall provide to any Indian tribe served by such
program at least the same quantity and quality of services
that would have been provided under such program at the level
of funding provided under this part prior to the
retrocession. The tribal governing body requesting the
retrocession shall specify whether the retrocession shall be
to a contract administered by the tribe, or a tribal entity,
under the authority of the Indian Self-Determination Act or
to a Bureau administered program.
PART C--CRITICAL NEEDS FOR TRIBAL DEVELOPMENT ACT
SEC. 1321. SHORT TITLE.
This part may be cited as the ``Critical Needs for Tribal
Development Act''.
SEC. 1322. DEFINITIONS.
As used in this part:
(1) The term ``federally funded higher education
assistance'' means any grant assistance provided to an Indian
student from funds made available for such purpose by
contract or grant to an Indian tribe from amounts
appropriated under the authority of the Act of November 2,
1921, popularly known as the Snyder Act (25 U.S.C. 13).
(2) The term ``eligible Indian tribe or tribal
organization'' means any Indian tribe or tribal organization
that qualifies to administer federally funded higher
education assistance under a contract pursuant to the Indian
Self-Determination and Education Assistance Act of 1975 or
under a grant pursuant to the Higher Education Tribal Grant
Authorization Act of 1991.
SEC. 1323. SERVICE CONDITIONS PERMITTED.
(a) In General.--An eligible Indian tribe or tribal
organization may, in accordance with the requirements of this
part, require any applicant for federally funded higher
education assistance, as a condition of receipt of such
assistance, to enter into a critical area service agreement
in accordance with section 1324.
(b) Critical Area Designation.--Any eligible Indian tribe
or tribal organization that intends to require critical area
service agreements shall, by a formal action of the tribal
council or its delegate, designate particular occupational
areas as critical areas for the economic or human development
needs of the tribe or its members. The tribe or organization
shall notify the Secretary of the Interior in writing of such
designated critical areas. Such designations shall be
applicable to federally funded higher education assistance
for any fiscal year following the fiscal year in which the
designation is made until such designation is withdrawn by
the tribe or organization by formal action. The tribe or
organization shall notify the Secretary of the Interior in
writing of any designations that are withdrawn.
SEC. 1324. CRITICAL AREA SERVICE AGREEMENTS.
(a) Terms of Agreements.--A critical area service agreement
shall be an agreement between an Indian student who receives
or who shall receive federally funded higher edu-
[[Page 521]]
cation assistance and an Indian tribe or tribal organization
providing such assistance in which the student agrees--
(1) to undertake a course of study at an eligible
institution (as that term is defined in section 435(a) of the
Higher Education Act of 1965) in an area of critical need, as
determined under section 1323, and to pursue that course of
study to its completion; and
(2)(A) to perform, for each academic year for which the
student receives federally funded higher education assistance
under a critical area service agreement, one calendar year of
service to the tribe or organization in an occupation that is
in a critical area designated by the tribe pursuant to
section 1322(b), commencing not later than 6 months after the
student ceases to carry at an institution of higher education
at least one-half the normal full-time academic workload as
determined by the institution; or
(B) to repay such assistance to the Secretary, together
with interest thereon at a rate prescribed by the Secretary
by regulation, in monthly or quarterly installments over not
more than 5 years.
(b) Service Limitations and Conditions.--The tribe or
tribal organization shall agree that a student performing
services under a critical area service agreement--
(1) shall be provided compensation, benefits, and working
conditions at the same level and to the same extent as any
other employee working a similar length of time and doing the
same type of work;
(2) may be treated as providing services to the tribe or
organization if the student provides services for members of
the tribe or organization that are approved by the tribe or
organization and agreed to by the student even though such
services are performed while the student is employed by a
Federal, State, or local agency or instrumentality or by a
nonprofit or for-profit private institution or organization;
and
(3) may obtain the benefits of a waiver or suspension in
accordance with the requirements of subsection (c).
(c) Waiver and Suspension of Service Agreement.--
(1) Waiver.--An Indian tribe or tribal organization may, by
formal action, waive the service agreement of an Indian
student for just cause, as determined in accordance with
regulations prescribed by the Secretary. The tribe or
organization shall notify the Secretary in writing of any
waiver granted under this subsection.
(2) Suspension.--The obligation of a student to perform
services under a critical area service agreement--
(A) shall be suspended for not more than 18 months if, at
the request of the student, the tribe or organization
determines that there are no employment opportunities
available in any critical service area; and
(B) shall be suspended if the student ceases to attend an
institution of higher education as a consequence of an
institutional determination of unsatisfactory performance.
If, at the end of a period of suspension under subparagraph
(A), there are still no employment opportunities available in
any critical service area, the student's obligations under
the agreement shall terminate. A suspension under
subparagraph (B) shall be reviewed by the tribe or
organization annually, but may be continued indefinitely.
(d) Pro Rata Reduction for Partial Services.--The Secretary
shall, by regulation, provide for the pro rata reduction of
repayment obligations under subsection (a)(2) in the case of
any student who partially completes the service obligation of
that student under subsection (a)(1).
(e) Certification of Service.--An Indian tribe or tribal
organization receiving services under a critical area service
agreement--
(1) shall establish procedures for monitoring and
evaluating the provisions of this part, and provide a copy of
such procedures to the Secretary and to each individual
providing services under a critical area service agreement;
(2) shall annually certify to the Secretary the identities
of the individuals performing service under such agreements;
and
(3) shall annually certify to the Secretary the amount of
service performed, and the amount remaining to be performed,
by each such individual under such agreements.
SEC. 1325. GENERAL PROVISIONS.
(a) Application of Existing Procedures.--Except as provided
in subsection (b), the requirements relating to student
eligibility, needs analysis, and determination of eligibility
for the program to be attended regularly incorporated by
reference into contracts under the Indian Self-Determination
and Education Assistance Act of 1975 (Public Law 93-638) for
tribal operation of higher education grant programs prior to
January 1, 1991, shall apply.
(b) Additional, Excess, and Incremental Costs.--The tribe
or tribal organization may establish in writing, subject to
the review of the Secretary, procedures for determining
additional, excess, or inducement costs to be associated with
grants for critical area service agreements.
PART D--INSTITUTE OF AMERICAN INDIAN NATIVE CULTURE AND ARTS
DEVELOPMENT
SEC. 1331. INSTITUTE OF AMERICAN INDIAN NATIVE CULTURE AND
ARTS DEVELOPMENT.
(a) Board of Directors.--Section 1505 of the Higher
Education Amendments of 1986 (20 U.S.C. 4412) is amended--
(1) in subsection (a)(1)(A)--
(A) by striking ``The voting'' and inserting ``Subject to
the provisions of subsection (i), the voting''; and
(B) by inserting before the period at the end thereof the
following: ``, and diverse fields of expertise, including
finance, law, and fine arts higher education
administration'';
(2) by redesignating paragraph (3) of subsection (a) as
paragraph (4);
(3) by inserting after paragraph (2) of such subsection the
following new paragraph:
``(3) The President shall carry out the activities under
subparagraphs (B) and (C) of paragraph (2) through the Board.
The Board may make recommendations based upon the nominations
received, may make recommendations of its own, and may review
and make comments to the President or the President's
appointed staff on individuals being considered by the
President who were not nominated pursuant to paragraph
(2).''; and
(4) by striking subsection (i) and inserting the following:
``(i) Appointment Exception for Continuity.--
``(1) In order to maintain the stability and continuity of
the Board, the Board shall have the power to recommend the
continuation of Members on the Board pursuant to the
provisions of this subsection. When the Board makes such a
recommendation, the Chairman of the Board shall cause such
recommendation to be transmitted to the President no later
than 75 days prior to the expiration of the term of such
Member.
``(2) If the President has not transmitted to the Senate a
nomination to fill the position of the Member covered by such
a recommendation within 60 days of the date upon which said
Member's term expires, such Member will be deemed to have
been reappointed for another full term to the Board, with all
the rights and responsibilities thereto.
``(3) This subsection shall not be construed to permit less
than 7 members of the Board to be Indians. If an extension of
a term under paragraph (2) would result in less than 7
members being Indians, the term of the Member covered by the
motion under paragraph (2) shall be deemed to expire on the
date 60 days after the date upon which it would have been
deemed to expire without the operation of this subsection,
except that the provisions of subsection (b)(4), relating to
continuation of service pending replacement, shall continue
to apply.''.
(b) General Powers of Board.--Section 1507 of such
Amendments (20 U.S.C. 4414) is amended--
(1) by redesignating paragraphs (3) through (13) of
subsection (a) as paragraphs (4) through (14), respectively;
(2) by striking paragraph (2) of such subsection and
inserting the following:
``(2) to make agreements and contracts with persons, Indian
tribes, and private or governmental entities and to make
payments or advance payments under such agreements or
contract without regard to section 3324 of title 31;
``(3) any other provision of law to the contrary
notwithstanding, to enter into joint development ventures
with public or private commercial or noncommercial entities
for development of facilities to meet the plan required under
section 1519, provided that such ventures are related to and
further the mission of the Institute;'';
(3) by striking paragraph (13) of such subsection (as
redesignated by paragraph (1) of this subsection) and
inserting the following:
``(13) to use any funds or property received by the
Institute to carry out the purpose of this chapter, including
the authority to designate on an annual basis a portion, not
to exceed 10 percent, of the funds appropriated pursuant to
section 1531 for investment, without regard to any other
provision of law regarding investment or disposition of
federally appropriated funds, on a short-term basis for the
purpose of maximizing yield and liquidity of such funds;
and''; and
(4) in subsection (c) by striking ``may be expended'' and
inserting ``shall be expended''.
(c) Staff of Institute.--Section 1509(b)(2) of such
Amendments is amended to read as follows:
``(2) The president of the Institute shall fix the basic
compensation for officers and employees of the Institute at
rates comparable to the rates in effect under the General
Schedule for individuals with comparable qualifications, and
holding comparable positions, to whom chapter 51 of title 5
applies or at rates comparable to those of similar
institutions of higher education.''.
(d) Functions of Institute.--Section 1510(b) of such
Amendments is amended to read as follows:
``(b) Administrative Entities.--
``(1) The Board shall be responsible for establishing the
policies and administrative organization relating to the
administrative control and monitoring responsibilities for
all subdivisions, administrative entities, and departments of
the Institute.
``(2) The specific responsibilities of each subdivision,
entity, and department of the Institute lies solely within
the discretion of the Board, or its designee.
``(3) The Board shall establish, within the Institute,
departments for the study of culture and arts and for
research and exchange, and a museum. The Board shall
establish the areas of competency for the departments created
under this paragraph, which may include (but are not limited
to) Departments of Arts and Sciences, Visual Arts, Performing
Arts, Language, Literature and Museology and a learning
resources center, programs of institutional support and
development, re-
[[Page 522]]
search programs, fellowship programs, seminars, publications,
scholar-in-residence programs and inter-institutional
programs of cooperation at national and international
levels.''.
(e) Indian Preference.--Section 1511(a) of such Amendments
is amended by inserting ``develop a policy or policies for
the Institute to'' after ``is authorized to''.
(f) Transfer of Functions.--Section 1514 of such Amendments
is amended--
(1) in subsection (b)(1), by striking ``All personnel'' and
inserting ``Subject to subsection (d), all personnel''; and
(2) in subsection (d)(2), by striking ``monetary damage''
and inserting ``monetary damages''.
(g) Reports.--Section 1515(b) of such Amendments is
amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3).
(h) Headquarters.--Section 1516 of such Amendments is
amended--
(1) by striking ``The site of the Institute of American
Indian Arts, at''; and
(2) by striking ``the Secretary'' and inserting ``the
Board''.
(i) Compliance With Other Acts.--Section 1517 of such
Amendments is amended by adding at the end thereof the
following new subsection:
``(d) Conditions on Federal Assistance.--The Institute
shall not be subject to any provision of law requiring that
non-Federal funds or other moneys be used in part to fund any
grant or contract or cooperative agreement or project as a
condition to application for, or receipt of, Federal
assistance. This subsection shall not be construed to effect
in a negative fashion the review, prioritization, or
acceptance of any application or proposal for such a program,
solicited or unsolicited.''.
(j) Endowment Program.--Section 1518 of such Amendments is
amended--
(1) in subsection (a)(3), by striking ``the date of
enactment of this Act'' and inserting ``November 29, 1990'';
and
(2) in subsection (b)(4), by inserting ``, non-Federal
governmental,'' after ``any private''.
(k) Provision of Facilities.--Part A of title XV of such
Amendments is amended by adding at the end thereof the
following new section:
``SEC. 1519. PROVISION OF FACILITIES.
``(a) Plan.--The Board shall prepare a master plan on the
short- and long-term facilities needs of the Institute. The
master plan shall include evaluation of all facets of
existing Institute programs, including support activities and
programs and facilities. The master plan shall include impact
projections for the Institute's move to a new campus site.
This master plan shall evaluate development and construction
requirements (based on a growth plan approved by the Board),
including (but not limited to) items such as infrastructure
and site analysis, development of a phased plan with
architectural and engineering studies, cost projections,
landscaping, and related studies which cover all facets of
the Institute's programs and planned functions. The plan
shall be periodically reviewed as determined by the Board.
``(b) Deadline for Transmittal.--The plan required by this
subsection shall be transmitted to Congress no later than 18
months after the date of enactment of this provision. Such
plan shall include a prioritization of needs, as determined
by the Board.''.
PART E--TRIBAL DEVELOPMENT STUDENT ASSISTANCE REVOLVING LOAN PROGRAM
SEC. 1341. SHORT TITLE.
This part may be cited as the ``Tribal Development Student
Assistance Act''.
SEC. 1342. FINDINGS; PURPOSES.
(a) Findings.--The Congress finds that--
(1) a substantial number of Indian students have partially
completed their degrees in postsecondary education, but have
been unable, for a number of reasons, to complete the
degrees;
(2) in at least some measure these students have been
supported by tribal funds or grants of Federal monies
administered by the Bureau of Indian Affairs or tribes;
(3) the inability of the students to complete these degrees
has led to a hardship for the students and a loss of a
potential pool of talent to the tribes or tribal
organizations which originally financed, at least in part,
these efforts;
(4) this loss has crippled tribal efforts in the areas of
economic and social development;
(5) this failure to complete the postsecondary schooling
has led to economic loss to the tribes and the Federal
Government which could be remedied by completion of the
courses of study; and
(6) a program to identify students with a level of
postsecondary completion short of the fulfillment of
graduation requirements and to encourage them to complete
these requirements, including provision of resources, will
benefit the students, the tribes, and the Federal Government.
(b) Purposes.--The purposes of this part are--
(1) to establish a revolving loan program to be
administered by a tribe or tribal organization for the
purposes of increasing the number of college graduates
available to work in tribal businesses, tribal government,
and tribal services such as schools and hospitals;
(2) to conduct research to assess the situational and
educational barriers to participation in postsecondary
education; and
(3) to encourage development, through grants, of a model
which provides, in addition to loans, transitional and
follow-up services needed to encourage persistence in
postsecondary education.
SEC. 1343. REVOLVING FUND.
(a) Receipt, Investment, and Accounting.--
(1) Tribes and tribal organizations.--Funds received under
a grant under this part or recovered under the provisions of
section 1346(a)(2) shall be identified and accounted for
separately from any other tribal or Federal funds received
from the Federal Government. All funds in this account shall
be used for the purposes of this part.
(2) Financial procedures.--The Secretary of the Interior is
responsible for establishing, by regulations, such
requirements for receipt, investment and accounting of funds
under subsection (b) as shall safeguard and financial
interests of the Federal Government.
(b) Investment.--Funds provided under this part or
recovered by the tribe or tribal organization under the
provisions of section 1346 shall be--
(1) invested by the Indian tribe or tribal organization
only in obligations of the United States or in obligations or
securities that are guaranteed or insured by the United
States, or
(2) deposited only in accounts that are insured by an
agency or instrumentality of the United States.
(c) Treatment of Income.--Notwithstanding any other
provision of law, any interest or investment income that
accrues on any funds covered under this provision after such
funds have been distributed to a tribe or tribal organization
and before such funds are distributed for the purposes of
making loans under this part shall be the property of the
tribe or tribal organization and shall not be taken into
account by any officer or employee of the Federal Government
in determining whether to provide assistance, or the amount
of assistance, under any provision of Federal law.
SEC. 1344. ELIGIBLE RECIPIENTS.
(a) Tribes and Tribal Organizations.--The Secretary of the
Interior shall make grants, in accordance with the
requirements of this part, to--
(1) tribes or multitribal organizations not serviced by
current federally funded postsecondary institutions
authorized for economic development grants; and
(2) tribes or multitribal organizations which lack
sufficient numbers of professionally trained tribal members
to support established or ongoing economic development
initiatives.
(b) Students.--Any tribe or tribal organization that
receives funds under subsection (a) shall make such funds
available by loan, under terms and conditions consistent with
section 1345, to Indian students who have successfully
completed 30 hours of postsecondary education and who are
eligible for readmission to a postsecondary institution.
SEC. 1345. TERMS OF LOANS.
(a) In General.--A loan under this part to an Indian
student shall--
(1) be subject to repayment over a period of not more than
5 years;
(2) not bear interest;
(3) be subject to forgiveness for services to the tribe in
accordance with section 1346; and
(4) contain such additional terms and conditions as the
initial loan agreement between the tribe or tribal
organization and student may prescribe in writing.
(b) Cost of Attendance.--Calculation of the cost of
attendance for the student must include all costs as
determined by the tribe for the purposes of fulfilling the
policy of this part.
(c) Additional Requirements.--Any student seeking a loan
under this part shall apply for and accept the maximum
financial aid available from other sources. However, for
purposes of determining eligibility, loans provided under
this program may not be considered in needs analysis under
any other Federal law, and may not penalize students in
determining eligibility for other funds.
SEC. 1346. SERVICE FULFILLMENT AND CONDITIONS; REPAYMENTS;
WAIVERS.
(a) Service Agreement Required.--Prior to receipt of a loan
under this part, the tribe or tribal organization and the
eligible recipient shall enter into a written agreement,
subject to the conditions of this section, which commits the
recipient--
(1) to perform, for each academic year for which the
student receives assistance under this part one calendar year
of service to the tribe or organization in an occupation
related to the course of study pursued and an economic or
social development plan developed by the tribe or tribal
organization, commencing not later than 6 months after the
student ceases to carry at an institution of higher education
at least one-half the normal full-time academic workload as
determined by the institution; or
(2) to repay to the tribe or tribal organization the full
amount of the loan, in monthly or quarterly installments over
not more than 5 years. Funds recovered under this provision
will be reported annually to the Secretary and invested in
the account established under section 1343.
(b) Service Limitations and Conditions.--The tribe or
tribal organization shall agree that a student performing
services under this part--
(1) shall be provided compensation, benefits, and working
conditions at the same level and to the same extent as any
other employee working a similar length of time and doing the
same type of work;
[[Page 523]]
(2) may be treated as providing services to the tribe or
organization if the student provides services for members of
the tribe or organization that are approved by the tribe or
organization and agreed to by the student even though such
services are performed while the student is employed by a
Federal, State, or local agency or instrumentality or by a
nonprofit or for-profit private institution or organization;
and
(3) may obtain the benefits of a waiver or suspension in
accordance with the requirements of subsection (c).
(c) Waiver and Suspension of Service Agreement.--
(1) Waiver.--An Indian tribe or tribal organization may, by
formal action, waive the service agreement of an Indian
student for just cause, as determined in accordance with
regulations prescribed by the Secretary. The tribe or
organization shall notify the Secretary in writing of any
waiver granted under this subsection.
(2) Suspension.--The obligation of a student to perform
services under this part--
(A) shall be suspended for not more than 18 months if, at
the request of the student, the tribe or organization
determines that there are no employment opportunities
available in any applicable area; and
(B) shall be suspended if the student ceases to attend an
institution of higher education as a consequence of an
institutional determination of unsatisfactory performance.
If, at the end of a period of suspension under subparagraph
(A), there are still no employment opportunities available
which fulfill the requirements of this part, the student's
obligations under the agreement shall terminate. A suspension
under subparagraph (B) shall be reviewed by the tribe or
organization annually, but may be continued indefinitely.
(d) Pro Rata Reduction for Partial Services.--The Secretary
shall, by regulation, provide for the pro rata reduction of
repayment obligations under subsection (a)(2) in the case of
any student who partially completes the service obligation of
that student under subsection (a)(1).
(e) Certification of Service.--An Indian tribe or tribal
organization receiving services under this part--
(1) shall establish procedures for monitoring and
evaluating the provisions of this part, and provide a copy of
such procedures to the Secretary and to each individual
providing services under a critical area service agreement;
(2) shall annually certify to the Secretary the identities
of the individuals performing service under such agreements;
and
(3) shall annually certify to the Secretary the amount of
service performed, and the amount remaining to be performed,
by each such individual under such agreements.
SEC. 1347. ADMINISTRATION.
(a) Regulations.--The Secretary shall establish, by
regulation, an application process containing such
requirements as the Secretary deems necessary for purposes of
making grants to eligible entities under this part, providing
that the Secretary shall take into account in reviewing
applications under this part the number of students with
partial completion identified by the applicant, relative to
the total number of the members of tribe which would be
benefitted by provision of services under section 1346, and
shall attempt to achieve geographic and demographic diversity
in grants made under this part.
(b) Grant Procedures.--(1) Subject to the availability of
funds and acceptable applications, the Secretary shall make 5
grants to tribes or tribal organizations for purposes of this
part, each grant to be for a period of 4 years.
(2) The amount of administrative costs associated with
grants under this part shall be negotiated by the Secretary
with the successful applicants and made a part of the grant
agreement.
SEC. 1348. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part, $2,000,000 for fiscal year 1993 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
TITLE XIV--MISCELLANEOUS
PART A--STUDIES
SEC. 1401. DATA ON NONTRADITIONAL STUDENTS.
(a) Study Required.--The Secretary of Education shall
conduct a 2-year study regarding the types of programs
available for, and determine the success or failure of such
programs in, increasing the accessibility for nontraditional
students to postsecondary education. The study shall be
conducted through the Office of Educational Research and
Improvement.
(b) Purpose.--The purpose of the study shall be--
(1) to appraise the adequacies and deficiencies of current
student financial aid information resources and services and
evaluate the effectiveness of these programs as they pertain
to the nontraditional student;
(2) to investigate the availability of grants and loans and
other financial assistance to nontraditional students
(includes independent students, part-time students, students
24 or older, and single parents);
(3) to assess the availability of supportive services for
the nontraditional students including (but not limited to)
counseling, child care services, campus health center
services, and library services;
(4) to make recommendations on how the Department of
Education can maintain an effective data base regarding
nontraditional students that will include--
(A) a yearly count of the number of students who are
nontraditional and breakdown of the institutions they are
attending;
(B) the number of nontraditional students who work and go
to school;
(C) participation in Federal student aid programs;
(D) unmet costs of postsecondary education for
nontraditional students; and
(E) trends over the last decade regarding participation of
nontraditional students in title IV programs.
(c) Report.--The Secretary of Education shall submit an
interim report to the Committee on Education and Labor of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate within 1 year after the date of
enactment of this section and submit a final report 2 years
after such date of enactment.
SEC. 1402. STUDY OF FEDERAL BENEFIT COORDINATION.
(a) In General.--The Secretary of Education shall conduct a
study to evaluate the coordination of Federal student
financial assistance programs under this title with other
programs funded in whole or in part with Federal funds, with
particular attention to--
(1) the effect of receipt of program assistance under this
title on students eligible for other programs funded in whole
or in part with Federal funds, including reduction or denial
of such other program funds; and
(2) the attendance cost elements funded in whole or in part
by programs under this title for students eligible for other
Federal programs and the inclusion of room and/or board costs
in such attendance costs.
(b) Report.--The Secretary of Education shall prepare and
submit to the appropriate committees of the Congress a report
on the study conducted pursuant to subsection (a) not later
than 3 years after the date of enactment of this Act,
together with such recommendations as the Secretary deems
appropriate.
SEC. 1403. NATIONAL SURVEY OF FACTORS ASSOCIATED WITH
PARTICIPATION.
(a) Authority of the Secretary.--In order to assure
improved and accurate data on the participation of at-risk
students in postsecondary education, the Secretary, acting
through the National Center for Educational Statistics, shall
conduct a special purpose survey on a biennial basis of
factors associated with participation of low-income,
disadvantaged, non-English language background, and minority
students, including (but not limited to) African American,
Native Americans, Native Hawaiians, major Hispanic subgroups,
and Asian students from disadvantaged backgrounds in various
types of postsecondary education. The survey data shall
permit comparisons with other groups that have
characteristically participated at higher rates than at-risk
students.
(b) Development of the Survey.--The Secretary shall consult
with the Congress and the elementary and secondary and higher
education community in developing such an annual survey. The
survey shall include, but not be limited to--
(1) academic preparation of groups at key points in the
elementary and secondary education process;
(2) rates of academic progress and graduation from high
school;
(3) participation in postsecondary education by type and
control of institution and by program of study;
(4) persistence rates in postsecondary programs, or, in the
case of short-term programs, completion rates; and
(5) average student financial assistance awarded to groups,
including Federal, State, and other assistance.
(c) Report to Congress.--The Secretary shall report
relevant data and conclusions from the survey to Congress on
an annual basis, including comparisons of important factors
for at-risk and other relevant populations.
(d) Development of Plan.--In the event of significant
findings related to underparticipation rates of at-risk and
other students, the Secretary shall submit a plan containing
policies and program modifications for ensuring the
participation of at-risk students. The plan shall indicate
the modifications the Secretary will make to increase
participation, including, but not limited to, increasing
information and training, and recommending other relevant
changes to the programs under this title.
(e) Panel Survey on Income Dynamics.--The Secretary, acting
through the National Center for Education Statistics, shall
make an interagency agreement with the National Science
Foundation to provide for additional questions and an
appropriate sample size as part of an existing panel study of
income dynamics to provide information on the educational
processes and other developmental behavior of Hispanic,
black, and non-Hispanic white children and their short-term
and long-term consequences. There is authorized to be
appropriated $900,000 for fiscal year 1993 and for each of
the 4 succeeding fiscal years for this activity.
SEC. 1404. EVALUATION OF ASSISTANCE GUARANTY PROGRAMS.
(a) Purpose.--The purposes of this section are--
(1) to require the Secretary to determine the effectiveness
of programs for disadvantaged elementary and secondary school
students that offer guarantees for postsecondary education,
and
(2) to encourage business community involvement through the
dissemination of successful programs.
[[Page 524]]
(b) Conduct of Study.--
(1) The Secretary shall, through the Office of Educational
Research and Improvement, evaluate the effectiveness of
programs for disadvantaged children that, in exchange for the
child's commitment to achieving a satisfactory elementary and
secondary education, promise the child the financial
resources needed to pursue a postsecondary education.
(2) The Secretary shall study a sample of the types of
programs available, and (A) determine the success or failure
of such programs in increasing the access and entry of
disadvantaged students into postsecondary education, (B)
identify the most successful programs and the causes for
success, and (C) determine the responsibilities of sponsors
of the programs.
(3) The programs studied shall include a guarantee of
postsecondary education for students currently in elementary
or secondary grade levels. The programs may include
supportive services, mentoring, study skills, and counseling
to students participating in the program.
(c) Dissemination.--The Secretary shall disseminate the
findings through appropriate agencies and organizations
including associations of businesses.
(d) Submission of Report.--The Secretary shall submit an
interim report by January 31, 1995, and a final report by
June 30, 1996, to the Committee on Education and Labor of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate.
SEC. 1405. INFORMATION ON GRADUATE EDUCATION.
(a) Assessment Required.--The Office of Educational
Research and Improvement shall conduct a study which will
provide an assessment of the information currently collected
on graduate education and will identify what additional
information should be generated to guide the Department of
Education in defining and executing its role in the support
of graduate education.
(b) Subject of Assessment.--The assessment required by
subsection (a) shall include the assessment of the total
amount of Federal, State, private, foundation, and
institutional fellowships, assistantships, loans, or any
other forms of financial assistance to all graduate students,
including both American and foreign students; and how these
amounts are distributed by race, by sex, to nontraditional
students, and to students with disabilities. In addition, the
assessment shall determine the number of graduate students,
cross-referenced by race, sex, and national origin, part-
time, full-time, independent versus dependent status, and
individuals with disabilities who enrolled and completed all
requirements for the degrees master of arts, master of
science, master in business administration, doctor of
philosophy, doctor of education, juris doctor, medical
doctor, doctor in veterinary medicine, and doctor of dental
science.
(c) Consultation.--In conducting this study, the Office of
Educational Research and Improvement shall consult with other
agencies and organizations involved in graduate education
policy, including the Congressional Office of Technology
Assessment, the President's Office of Science and Technology
Policy, the National Science Foundation and the other Federal
agencies supporting academic research and graduate education,
the National Academy of Sciences and other public and private
organizations which participate in the formulation and
implementation of national graduate education policies and
programs.
(d) Date for Completion.--The study shall be completed
within 2 years of the date of enactment of this Act.
SEC. 1406. STUDY OF THE CENTER FOR INTERNATIONAL EDUCATION'S
STAFFING REQUIREMENTS.
The Comptroller General shall conduct an evaluation of the
staffing requirements of the United States Department of
Education's Center for International Education. The
evaluation shall consider the effectiveness of the staffing
patterns and assess staffing needs in relation to the
administration of title VI of the Higher Education Act of
1965 and section 102(b)(6) of the Mutual Educational and
Cultural Exchange Act, including (1) the number and
experience of personnel required to achieve the objectives of
such programs at a high level of quality, and (2) the extent
to which additional staff may be required to administer
amendments to such programs made by this Act. In conducting
the evaluation, the Comptroller General shall consult
institutions of higher education which have participated
under such programs, and national organizations of such
institutions. Within one year after the date of enactment of
this Act, the Comptroller General shall submit to the
Congress a report on the results of such evaluation together
with such recommendations as the Comptroller General deems
appropriate.
SEC. 1407. STUDY OF ENVIRONMENTAL HAZARDS IN INSTITUTIONS OF
HIGHER EDUCATION.
(a) Study Authorized.--The Secretary, in cooperation with
the Administrator of the Environmental Protection Agency, is
authorized to conduct a study of the extent to which
asbestos, lead in drinking water, or radon gas pose a threat
to the health and safety of students and employees of
institutions of higher education.
(b) Survey Required.--Such study shall include a survey of
a representative sample of institutions of higher education
in order to assess how widespread such hazards are. A
sufficient number of institutions shall be sampled and tested
in order to provide reasonable estimates on--
(1) the number of institutions which contain friable
asbestos (as defined in the Asbestos Hazard Emergency
Response Act) and how many students and employees may be
exposed to unsafe levels of asbestos fibers,
(2) the number of institutions that have rooms which
contain more than 4 picocuries/liter of radon, and
(3) the number of institutions which contain water
fountains or faucets or water coolers which discharge water
with more than 10 parts per billion of lead.
(c) Consultation.--In designing and carrying out such
study, the Secretary shall consult with associations
representing institutions of higher education, faculty, and
other employees.
(d) Report on Study.--The Secretary shall submit a report
with the results of the assessment, including the information
required by subsection (b), along with recommendations by the
Secretary regarding what actions, if any, Congress and the
Administration should take to ensure that environmental
health hazards, if any, are eliminated. The report shall be
presented to Congress not later than July 1, 1995.
(e) Authorization of Appropriations.--There are authorized
to be appropriated $3,000,000 in fiscal year 1993 for the
purposes of carrying out this assessment.
SEC. 1408. STUDY OF CIVILIAN EDUCATION TRAINING PROGRAMS.
(a) Findings.--The Congress finds that--
(1) the role of the military as a source of supply of
trained pilots and mechanics and other personnel for
commercial aviation is severely reduced;
(2) approximately 50 percent of the 52,000 commercial
pilots currently flying will retire by the year 2000 and an
additional 8,000 to 10,000 pilots will be needed by then;
(3) there is significant underrepresentation of minorities
and women currently working in the aviation industry and
African Americans constitute less than 1 percent of pilots
with the Nation's scheduled air carriers;
(4) there is a substantial projected increase of minorities
and women as a proportion of the workforce by the year 2000;
and
(5) there is need for a comprehensive study of future human
resources needs for the air transportation industry,
including a thorough investigation of recruitment, aviation
training outside the military context, financial and other
incentives and disincentives which affect the flow of people,
and especially minorities and women, into the industry.
(b) Study Required.--The Secretary of Education shall enter
into appropriate arrangements with the National Academy of
Sciences Commission on Behavioral and Social Sciences and
Education to study civilian education training programs
needed to satisfy the workforce requirements of the
commercial aviation industry in the year 2000 and beyond. The
specific concerns to be addressed by the study shall
include--
(1) the avenues for civilians to enter the aviation
industry,
(2) the characteristics of current training and the match
with skill requirements in the workplace, and
(3) the impediments and incentives for minorities and women
to enter the aviation industry (such as a lack of role
models, cost of schooling and flight time, the
underutilization of historically black colleges and
universities in the educational training process, and
institutional barriers).
(c) Interim Report.--The Secretary of Education shall
request that the National Academy of Sciences Commission on
Behavioral and Social Sciences and Education submit an
interim report of its deliberations, conclusions, and
recommendations to the Secretary and the Congress within 1
year after the date of enactment of this Act, and the study
shall be completed within 2 years of the date of enactment of
this Act.
SEC. 1409. AMENDMENTS TO GENERAL EDUCATION PROVISIONS ACT.
(a) Library of Congress Access to Data.--Section
406(d)(4)(H) of the General Education Provisions Act is
amended by--
(1) inserting ``and the Librarian of Congress'' after
``Comptroller General of the United States''; and
(2) inserting ``and the Library of Congress'' after ``the
General Accounting Office''.
(b) Student Records.--Section 438(a)(4)(B)(ii) of the
General Education Provisions Act (20 U.S.C.
1232g(a)(4)(B)(ii) is amended to read as follows:
``(ii) records maintained by a law enforcement unit of the
educational agency or institution that were created by that
law enforcement unit for the purpose of law enforcement;''.
SEC. 1410. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL-BASED
DECISIONMAKERS DEMONSTRATION PROGRAM.
(a) In General.--The Secretary is authorized to make grants
to local education agencies, jointly with one or more
institutions of higher education, to establish programs to
provide training and technical assistance to school-based
decisionmakers in local education agencies implementing
system-wide reform.
(b) Application.--To be eligible to receive a training and
technical assistance demonstration grant under this section,
eligible entities shall submit an application to the
Secretary in such form and containing or accompanied by such
information as the Secretary may require. A copy of the
application shall also be sent to the State educational
agency for notification purposes.
[[Page 525]]
(c) Authorization of Appropriations.--There are authorized
to be appropriated $1,000,000 for fiscal year 1993 and such
sums as may be necessary for fiscal years 1994 and 1995.
SEC. 1411. REPORT ON THE USE OF PELL GRANTS BY PRISONERS.
(a) Report Required.--The Secretary of Education shall
submit to the Congress a report on the use of Pell Grants by
prisoners. Such report shall contain a statement of--
(1) the number of prisoners receiving Pell Grants,
(2) the average amount of the Pell Grants awarded to
prisoners,
(3) the average length of Pell Grant subsidized study for
prisoners,
(4) the graduation or success rate of prisoners receiving
Pell Grants,
(5) an analysis of whether prisoners' lack of income has
made them more successful in obtaining Pell Grants over other
low-income citizens who are not incarcerated,
(6) an analysis of whether prisoners lack of income
provides them within an advantage in receiving Pell Grants,
and
(7) the Secretary's recommendations for making the program
more equitable with regard to awards to prisoners in relation
to other applicants.
(b) Deadline for Submission.--The report required by
subsection (a) shall be submitted not later than 6 months
after the date of enactment of this Act.
PART B--NATIONAL CLEARINGHOUSE FOR POSTSECONDARY EDUCATION MATERIALS
SEC. 1421. NATIONAL CLEARINGHOUSE FOR POSTSECONDARY EDUCATION
MATERIALS.
(a) Purpose.--The purpose of this section is to coordinate
the production and distribution of educational materials in
an accessible form, especially audio and digital text
production, to college and university based print-handicapped
population.
(b) Program Authority.--(1) The Secretary is authorized to
award a grant or contract to establish a National
Clearinghouse for Postsecondary Education Materials
(hereinafter referred to as the ``Clearinghouse'') to
coordinate the production and distributon of educational
materials, in an accessible form, including audio and digital
for students with disabilities.
(2) The grant or contract awarded pursuant to paragraph (1)
shall be made on a competitive basis.
(3) The grant or contract awarded under this section shall
be awarded for a period of 3 years.
(c) Use of Funds.--The grant or contract awarded under this
section shall be used to--
(1) catalog in computer-readable form postsecondary
education materials;
(2) identify college campus-based services producing taped
texts whose technical and reader quality make them eligible
for inclusion in the Clearinghouse and share its quality
control standards with campus-based disabled student support
services offices;
(3) promote data conversion and programming to allow the
electronic exchange of bibliographic information between
existing on line systems;
(4) encourage outreach efforts that will educate print-
disabled individuals, as defined by section 652(d)(2) of the
Individuals With Disabilities Education Act, educators,
schools and agencies about the Clearinghouse's activities;
(5) upgrade existing computer systems at the Clearinghouse;
(6) coordinate with identifiable and existing data bases
containing postsecondary education materials, including the
programs authorized under section 652(d) of the Individuals
With Disabilities Act; and
(7) develop and share national guidelines and standards for
the production of audio and digital text materials.
(d) Federal Share Limitation.--The Federal share under this
section may not be more than--
(1) 80 percent of the total cost of the program in the
first year,
(2) 60 percent of the total cost of the program in the
second year, and
(3) 50 percent of the total cost of the program in the
third year.
(e) Authorization of Appropriations.--There are authorized
to be appropriated for the purpose of this section,
$1,000,000 for fiscal year 1993 and such sums as may be
necessary for each of the fiscal years 1994 and 1995.
PART C--NATIONAL CENTER FOR THE WORKPLACE
SEC. 1431. PURPOSE; DESIGNATION.
It is the purpose of this part to address the new and
previously unknown problems created by the simultaneous
convergence of broad economic, social, cultural, political,
and technological changes in the workplace through a national
center administered by the Department of Labor that will join
together workplace experts from America's best institutions
of higher education with experts from the public and private
sectors to conduct research, share information, and propose
remedies.
SEC. 1432. ESTABLISHMENT.
(a) Establishment.--There is authorized to be established
the National Center for the Workplace (hereafter in this part
referred to as the ``Center'') through grant or contract
between the Secretary of Labor and an eligible recipient.
(b) Definition of Eligible Recipient.--An eligible
recipient shall be a consortium of institutions of higher
education in the United States, each member of which grants
graduate degrees in the field of industrial and labor
relations and conducts nationally recognized research in that
field. The consortium shall be represented and coordinated by
a host institution of higher education that meets all of the
following criteria:
(1) Broad collective knowledge of and demonstrable
experience in the wide range of interconnected employment and
workplace issues.
(2) A nationally recognized faculty that, collectively,
demonstrates a nonpartisan research and policy perspective
joining the several relevant workplace disciplines (labor
economics, industrial relations, collective bargaining, human
resource management, sociology, psychology, and law) in a
multidisciplinary approach to workplace issues.
(3) Established credibility and working relationships with
employers, unions, and government agencies on a national
scale, and established means of providing education and
technical assistance to each of the above groups that include
publications, state-of-the-art electronic and video
technology, and distinguished extension/outreach programs
operating on a national and international level.
SEC. 1433. USE OF FUNDS.
(a) Center Activities.--Payments made under this part may
be used to establish and operate the Center, to bring
together major independent researchers from the Center's
member-institutions focused on the most significant workplace
problems with the aim of analysis and synthesis of policy
implications and dissemination of findings, and to support
the following activities:
(1) The coordination and funding of research activities of
the Center's member-institutions for collaborative collection
and evaluation of data on changes and trends in the workplace
and in the labor force, on established and emerging public
policy issues, on the economic and occupational structures,
and on work organizations and employment conditions.
(2) The analysis of the public policy implications of
social and demographic changes in the United States as they
relate to the workplace.
(3) The conduct of seminars for Federal and State
policymakers on policy implications of the Center's findings.
Such seminars shall be held at least once each year. In
addition, the Center shall utilize electronic technology,
such as computer networks and video conferencing, to convey
the cumulative value of the Center's activities from year to
year and to foster continuous exchange of ideas and
information.
(4) The conduct of a National Conference once each year for
the leaders of business and organized labor in the United
States designed to convey the cumulative value of the
Center's activities and to foster an exchange of ideas and
information.
(5) The evaluation of the economic and social implications
of national and international workplace and employment issues
such as the impact of new technologies on job structure and
the work organization, new employment concepts in American
industry, alternative workplace policies and practices, and
existing and proposed government policies.
(6) The provision of ready access to the Center's
collective expertise for policy officials in the Federal and
State governments and representatives of private and public
sector organizations through meetings, publications, special
reports, video conferences, electronic mail and computer
networks, and other means to share up-to-date information on
workplace and employment issues, practices, and innovations,
the most promising options, and guidance in management of the
change process.
(7) The development of programs, curricula, and
instructional materials for colleges, universities, and other
educational institutions designed to impart the knowledge and
skills required to promote innovations in the design of work
and employment conditions that enhance organizational
performance and meet worker needs.
(8) The development and administration of a national
repository of information on key workplace issues that can be
readily accessed by the public and private sector.
(b) Fellowships.--Payments made under this part may also be
used to provide graduate assistantships and fellowships at
the Center to encourage graduate study of the field of
industrial and labor relations and to encourage graduate
research in areas that are seen as critical to national
competitiveness.
SEC. 1434. BOARD OF ADVISORS.
(a) Board.--There shall be appointed a Board of Advisors to
the Center that shall consist of representatives of the
private and public sectors and of the member-institutions of
the consortium. Two members shall be appointed by the Chair
of the House of Representatives Committee on Education and
Labor, and two members shall be appointed by the Chair of the
Senate Committee on Labor and Human Resources. Two members
shall be appointed by the Secretary of Education. Four
members shall be appointed by the Secretary of Labor: two
from organizations that represent employers and two from
organizations that represent trade unions. In addition, the
President of each consortium member-institution shall appoint
one member to the Board. Other members may be added to the
Board by majority vote of the Board's appointed members.
(b) Meetings and Responsibilities.--The Board of Advisors
shall meet from time to
[[Page 526]]
time, but no less than twice each year, to review and advise
the Center with respect to all aspects of its program. The
Board shall submit an annual report to the Secretary of
Education and the Secretary of Labor on the Center's
activities and accomplishments.
SEC. 1435. GIFTS AND DONATIONS.
The Center is authorized to receive money and other
property donated, bequeathed, or devised to the Center with
or without a condition of restriction, for the purpose of
furthering the activities of the Center. All funds or
property given, devised, or bequeathed shall be retained in a
separate account, and an accounting of those funds and
property shall be included in the annual report of the Board
of Advisors to the Secretary of Education and Secretary of
Labor.
SEC. 1436. AUTHORIZATION.
There is authorized to be appropriated for fiscal year
1993, $2,500,000 which may remain available until expended to
carry out the purposes of this part, and such sums as may be
necessary for each of the 4 succeeding fiscal years.
TITLE XV--BUY AMERICA
SEC. 1501. SENSE OF CONGRESS.
It is the sense of the Congress that a recipient (including
a nation, individual, group, or organization) of any form of
student assistance or other Federal assistance under the Act
should, in expanding that assistance, purchase American-made
equipment and products.
SEC. 1502. NOTICE.
The Secretary of Education shall provide to each recipient
of student assistance or other Federal assistance under the
Act a notice describing the sense of the Congress stated
under section 1501.
The bill, as amended, was ordered to be engrossed and read a third
time, was read a third time by title.
The question being put, viva voce,
Will the House pass said bill?
The SPEAKER announced that the yeas had it.
Mr. FORD of Michigan demanded that the vote be taken by the yeas and
nays, which demand was supported by one-fifth of the Members present, so
the yeas and nays were ordered.
The vote was taken by electronic device.
It was decided in the
Yeas
365
<3-line {>
affirmative
Nays
3