[Weekly Compilation of Presidential Documents Volume 34, Number 41 (Monday, October 12, 1998)]
[Pages 1995-1996]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Signing the Higher Education Amendments of 1998

October 7, 1998

    Today I am pleased to sign into law H.R. 6, the ``Higher Education 
Amendments of 1998.'' This legislation is the culmination of bipartisan 
efforts by the Congress and my Administration to increase access to 
college, make higher education more affordable, improve teacher quality, 
and modernize the delivery of student aid. I particularly want to thank 
Senators Jeffords, Coats, Kennedy, and Dodd, and Representatives 
Goodling, McKeon, Clay, Kildee, Andrews, and Petri, as well as other 
Members of the Conference Committee, for their help in guiding this 
legislation through the Congress.
    I also owe a particular debt of gratitude of Representative Fattah, 
whose consistent and tireless work resulted in a new effort that will 
turn the dream of college into a reality for many of the poorest 
families in America. The ``GEAR UP'' program, based in part on my High 
Hopes for College proposal, provides competitive grants to States and 
local partnerships to encourage colleges to work with middle schools in 
high-poverty areas to ensure that students receive and benefit from 
financial aid information, rigorous courses, tutoring, mentoring, and 
scholarships for college.
    I am pleased to see a number of my other initiatives included in 
this bipartisan legislation. College students across the country will 
save hundreds or even thousands of dollars on their loan repayments with 
the extension of the low student loan interest rate on new loans that 
went into effect on July 1st of this year. In addition, the bill allows 
borrowers to refinance outstanding loans at a lower rate by extending 
for 4 months the current interest rate on Direct Consolidation Loans. 
The bill, however, is not perfect. It is unfortunate that the 
legislation permits continuation of the practice of providing excessive 
payments to lenders and guaranty agencies instead of reducing taxpayer 
costs by using competitive market forces. In addition, it is regrettable 
that the legislation does not allow more than 4 months for the millions 
of Americans who are paying high interest rates on their current student 
loans to get the new low consolidation rate, or make that rate available 
to all borrowers. I urge the Congress to revisit these issues in the 
future.
    This bill builds upon the proposals I sent to the Congress to 
improve teacher quality, training, and recruitment as our Nation faces 
the need to hire more than two million teachers over the next 10 years. 
New partnerships between teacher education institutions and school 
districts, partnerships to improve teacher recruitment, Teacher Quality 
Enhancement State grants, and increased accountability will help improve 
teacher quality for all our children. I am also pleased that the 
Congress did not prohibit Federal funding for the National Board for 
Professional Teaching Standards.
    This legislation will promote high-quality distance-learning 
opportunities to provide students, including non-traditional students, 
with increased educational opportunities. The Learning Anytime, Anywhere 
Partnership (LAAP) program, as I proposed, will award competitive grants 
to partnerships to create new distance-learning models, explore the 
efficiencies and cost reductions that can be realized through 
institutional partnerships, and develop innovative measures of student 
achievement through distance learning.
    I am also pleased that H.R. 6 reauthorizes and improves upon many 
programs in the current Higher Education Act designed to promote equal 
educational opportunity. In particular, I would like to commend 
Representative Hinojosa for his work to increase

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funding levels and improve programs for students attending Hispanic-
serving institutions. I am also pleased that H.R. 6 reauthorizes the 
Education of the Deaf Act, which supports Gallaudet University and the 
National Technical Institute for the Deaf, and strengthens programs to 
support tribal and historically black colleges and universities.
    The bill also revolutionizes the delivery of student aid by creating 
within the Government the first-ever Performance-Based Organization 
(PBO)--a concept promoted by Vice President Gore's National Partnership 
for Reinventing Government--to improve services to students and enhance 
administrative efficiency and accountability. I am delighted with this 
bipartisan effort to modernize student aid delivery in the Department of 
Education.
    I do note some constitutional concerns regarding provisions in this 
bill relating to the appointment and reappointment of the Chief 
Operating Officer of the PBO, and the issuance of regulations regarding 
student loan repayment incentives that would have to be certified by the 
Congressional Budget Office. While I do not regard these provisions as 
binding, the Secretary of Education as a matter of policy will implement 
these provisions so far as possible in a manner consistent with the 
principles embodied in the legislation.
    There are costs associated with H.R. 6 after fiscal year 1999 that 
are not fully offset under Administration budget scoring. Under the 
Budget Enforcement Act, a sequester of mandatory programs will be 
required in future years if savings to offset the costs of this Act are 
not enacted. My Administration will work with the Congress to offset 
these costs to avoid a potential sequester.
    This bill represents a positive, bipartisan advancement for 
students, teachers, and the future of higher education. Now the Congress 
must take the critical next step, providing full funding for the new 
initiatives this legislation creates--GEAR UP, teacher preparation and 
recruitment, and LAAP--for fiscal year 1999. I look forward to working 
with the Congress to ensure this funding is made available.
                                            William J. Clinton
The White House,
October 7, 1998.

Note: H.R. 6, approved October 7, was assigned Public Law No. 105-244.