Text: H.R.3553 — 102nd Congress (1991-1992)All Information (Except Text)

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Union Calendar No. 265
102d CONGRESS
2d Session
H. R. 3553
[Report No. 102-447]
A BILL
To amend and extend the Higher Education Act of 1965.
February 27, 1992
Reported with an amendment, committed to the Committee on the Whole House
on the State of the Union, and ordered to be printed
HR 3553 RH
Union Calendar No. 265
102d CONGRESS
2d Session
 H. R. 3553
[Report No. 102-447]
To amend and extend the Higher Education Act of 1965.
IN THE HOUSE OF REPRESENTATIVES
October 11, 1991
Mr. FORD of Michigan (for himself, Mr. GAYDOS, Mr. CLAY, Mr. MILLER of
California, Mr. MURPHY, Mr. KILDEE, Mr. WILLIAMS, Mr. MARTINEZ, Mr. OWENS of
New York, Mr. HAYES of Illinois, Mr. PERKINS, Mr. SAWYER, Mr. PAYNE of New
Jersey, Mrs. LOWEY of New York, Mrs. UNSOELD, Mr. WASHINGTON, Mr. SERRANO,
Mrs. MINK, Mr. ANDREWS of New Jersey, Mr. JEFFERSON, Mr. REED, Mr. ROEMER,
Mr. OLVER, Mr. PASTOR, Mr. DE LUGO, Mr. FUSTER, and Mr. FOGLIETTA) introduced
the following bill; which was referred to the Committee on Education and Labor
February 27, 1992
Additional sponsors: Mr. MCCLOSKEY, Mr. MOODY, Mr. MCNULTY, Mr. JONTZ,
Mr. TOWNS, Mr. KOLTER, Mr. ROE, Mr. ORTIZ, Mr. EDWARDS of California,
Mr. RAHALL, Mr. WYDEN, Mr. EVANS, Mrs. COLLINS of Michigan, Mr. PETERSON
of Florida, Mr. NAGLE, Mr. STAGGERS, Mr. ECKART, Mr. NEAL of Massachusetts,
Ms. NORTON, Mr. PORTER, Mr. TORRES, Mr. POSHARD, Mr. MARKEY, Mr. KOPETSKI,
Mr. DINGELL, Mr. TRAXLER, Mr. LIPINSKI, Mr. COSTELLO, Mr. WEISS, Mr. FROST,
Mr. AUCOIN, Mr. SAVAGE, Mr. FAZIO, Mr. YATES, Mr. STUDDS, Mr. KOSTMAYER,
Mr. DYMALLY, Mr. SWIFT, Mr. STOKES, Mr. DE LA GARZA, Mr. RICHARDSON,
Mr. ROYBAL, Mr. BUSTAMANTE, Mr. MORRISON, Mrs. BOXER, Mr. MCDERMOTT,
Mr. RANGEL, Ms. KAPTUR, Mr. MINETA, Mr. SANGMEISTER, Mr. BEVILL,
Mr. CARR, Mr. LANCASTER, Mr. BLAZ, Mr. WOLPE, Mr. DEFAZIO, Mr. SCHEUER,
Mr. FRANK of Massachusetts, Mr. FLAKE, Mr. SOLARZ, Mr. MURTHA, Mr. HALL
of Texas, Ms. PELOSI, Mr. WHEAT, Mrs. SCHROEDER, Mr. MFUME, Mr. CONYERS,
Mr. FALEOMAVAEGA, Mr. BLACKWELL, and Mr. Dooley
February 27, 1992
Reported with an amendment, committed to the Committee on the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on October
11, 1991]
A BILL
To amend and extend the Higher Education Act of 1965.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; GENERAL EFFECTIVE DATE.
  (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) 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) MANUFACTURING ENGINEERING EDUCATION- There are authorized to be
  appropriated to carry out part E of this title, $25,000,000 for fiscal year
  1993, and such sums as may be necessary for the 4 succeeding fiscal years.
  `(e) ACCESS AND EQUITY TO EDUCATION FOR ALL AMERICANS THROUGH
  TELECOMMUNICATIONS- There are authorized to be appropriated 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 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
  `(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 for such fiscal
  year as the total amount received under title IV by students attending
  institutions in the State for such fiscal year bears to the total amount
  received under title IV by all students for such fiscal year.
  `(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; and
  `(4) 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, or
  `(5) 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--MANUFACTURING ENGINEERING EDUCATION
`SEC. 161. PURPOSE.
  `The purposes of this part are to encourage the development of undergraduate
  and graduate level programs of education and research in manufacturing
  engineering at institutions of higher education in the United States and to
  increase the number of persons educated in the techniques and disciplines
  of manufacturing engineering through--
  `(1) the expansion of Federal Government support for programs  of
  manufacturing engineering education in the United States;
  `(2) the provision of financial support for the establishment of new
  programs of manufacturing engineering education across the United States;
  `(3) the upgrading of existing programs in manufacturing engineering
  education in the United States;
  `(4) the encouragement of increased participation of women, members of
  minority groups, and disabled persons in manufacturing education and
  training; and
  `(5) the active involvement of the Federal Government, States, and local
  governments along with institutions of higher education and private industry
  in cooperative undertakings to establish and support such programs.
`SEC. 162.  MANUFACTURING ENGINEERING EDUCATION GRANT PROGRAM.
  `(a) ESTABLISHMENT OF GRANT PROGRAM- The Secretary, in consultation with
  the Director of the National Science Foundation and the Director of the
  Office of Science and Technology Policy, shall establish a program for
  the Secretary to make grants to institutions of higher education for the
  following purposes:
  `(1) To support the enhancement of existing programs in manufacturing
  engineering education that are conducted by grantee institutions and that
  meet the requirements of section 163.
  `(2) To support the establishment at grantee institutions of new programs
  in manufacturing engineering education that meet such requirements.
  `(b) NEW PROGRAMS IN MANUFACTURING ENGINEERING EDUCATION- For the purpose
  of subsection (a)(2), a program in manufacturing engineering education
  to be established at an institution of higher education may be considered
  new regardless of whether the program is to be conducted--
  `(1) within an existing department in a school of engineering of the
  grantee institution of higher education;
  `(2) within a manufacturing engineering department to be established
  separately from the existing departments within such school of engineering;
  or
  `(3) within a manufacturing engineering school or center to be established
  separately from an existing school of engineering of such institution.
  `(c) MINIMUM NUMBER OF GRANTS FOR NEW PROGRAMS- Of the total number of
  grants awarded pursuant to this section, at least one-third shall be
  awarded for the purpose stated in subsection (a)(2).
  `(d) GEOGRAPHICAL DISTRIBUTION OF GRANTS- In awarding grants under this
  subsection, the Secretary shall, to the maximum extent practicable, avoid
  geographical concentration of grant awards.
  `(e) INITIAL GRANTS- Within one year after the date of the enactment of
  this part, the Secretary, in consultation with the Director of the National
  Science Foundation, shall award grants under the program to at least 10
  institutions of higher education across the United States.
  `(f) COORDINATION OF GRANT PROGRAM WITH THE NATIONAL SCIENCE FOUNDATION- The
  Secretary and the Director of the National Science Foundation shall enter
  into a written agreement for carrying out the grant program established
  pursuant to this section. The agreement shall include the following matters:
  `(1) Procedures to ensure that the grant program is fully coordinated with
  similar existing education programs of the National Science Foundation.
  `(2) Provisions for the National Science Foundation to assist in the
  administration and management of grants made by the Secretary under the
  program.
`SEC. 163. COVERED PROGRAMS OF MANUFACTURING ENGINEERING EDUCATION.
  `(a) IN GENERAL- A program of engineering education supported with a grant
  awarded pursuant to this part shall meet the requirements of this section.
  `(b) LEVEL OF HIGHER EDUCATION FOR WHICH PROGRAM IS OFFERED- The program
  of education shall be conducted at the undergraduate level, the graduate
  level, or both the undergraduate and graduate levels.
  `(c) COMPONENTS OF PROGRAM- The program of education shall be a consolidated
  and integrated multidisciplinary program of education having each of the
  following components:
  `(1) Multidisciplinary instruction that encompasses the total manufacturing
  engineering enterprise and that may include--
  `(A) manufacturing engineering education and training through classroom
  activities, laboratory activities, thesis projects, and individual or
  team projects;
  `(B) faculty development programs;
  `(C) recruitment of educators highly qualified in manufacturing engineering;
  `(D) presentation of seminars, workshops, and training for the development
  of specific research or education skills; and
  `(E) activities involving interaction between the institution of higher
  education conducting the program and industry, including programs for
  visiting scholars or industry executives.
  `(2) Opportunities for students to obtain work experience in manufacturing
  through such activities as internships, summer job placements, or cooperative
  work-study programs.
  `(3) Faculty and student research that is directly related to, and
  supportive of, the education of undergraduate or graduate students in
  advanced manufacturing science and technology because of--
  `(A) the increased understanding of advanced manufacturing science and
  technology that is derived from such research; and
  `(B) the enhanced quality and effectiveness of the instruction that result
  from that increased understanding.
  `(d) SIGNIFICANT INVOLVEMENT OF INDUSTRY- The program shall be conducted
  with a significant level of involvement of private sector manufacturing
  firms having major manufacturing operations in the United States and a
  significant level of collaboration between the firms so involved and the
  institution of higher education conducting the program.
`SEC. 164. GRANT PROPOSALS.
  `(a) PROPOSAL REQUIREMENTS- The Secretary, in coordination with the Director
  of the  National Science Foundation, shall solicit from institutions
  of higher education in the United States proposals for grants to be
  made pursuant to this part for the support of programs of manufacturing
  engineering education that are consistent with the purposes of this Act.
  `(b) CONTENT OF PROPOSALS- Each proposal submitted by an institution of
  higher education shall include the following:
  `(1) A description of the program proposed to be supported by the grant.
  `(2) A discussion of the institution's experience and demonstrated
  capabilities that qualify the institution to conduct the proposed program.
  `(3) A discussion of how industrial experience, expertise, and facilities
  will be integrated into the proposed program.
  `(4) A description of the anticipated curriculum.
  `(5) A description of the research proposed to be conducted pursuant to the
  proposed program, including how the research will support the instructional
  content of the program.
  `(6) A commitment by the non-Federal Government participants in the
  proposed program to contribute financial or in-kind support sufficient
  to defray at least 50 percent of the total cost of the program during the
  period covered by the grant, including a description of the cost-sharing
  arrangements provided to carry out the cost-sharing commitment.
  `(7) A description of the specific benefits the proposed program will
  provide for the improvement of the defense industrial base of the United
  States and the education and training of engineers in manufacturing methods,
  techniques, and technology in the United States.
  `(8) A plan to achieve a significant level of participation by women,
  members of minority groups, and disabled persons through active recruitment
  of students from among such persons.
`SEC. 165. GRANT AWARDS.
  `(a) MERIT COMPETITION- Grants shall be awarded on the basis of merit
  competition in accordance with procedures prescribed by the Secretary in
  coordination with the Director of the National Science Foundation.
  `(b) SELECTION CRITERIA- The Secretary may select a proposal for the award
  of a grant pursuant to this part if the proposal, at a minimum--
  `(1) promotes the achievement of the purposes of this Act;
  `(2) contains innovative approaches for improving engineering education
  in manufacturing technology;
  `(3) demonstrates a strong commitment by the proponents to apply the
  resources necessary to achieve the objectives for which the grant is to
  be made;
  `(4) provides for the conduct of research that supports the instruction to
  be provided in the proposed program and is likely to improve manufacturing
  engineering and technology;
  `(5) demonstrates a significant level of involvement of United States
  industry in the proposed instructional and research activities;
  `(6) is likely to attract superior students;
  `(7) proposes to involve fully qualified faculty personnel who are
  experienced in research and education in areas associated with manufacturing
  engineering and technology;
  `(8) proposes a program that, within 3 years after the grant is made,
  is likely to attract from sources other than the Federal Government the
  financial and other support necessary to sustain such program; and
  `(9) proposes to achieve a significant level of participation by women,
  members of minority groups, and disabled persons through active recruitment
  of students from among such persons.
`PART F--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--
  `(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
  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.
  `(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 IN HISTORICALLY
BLACK COLLEGES AND UNIVERSITIES
`SEC. 241. STRENGTHENING LIBRARY AND INFORMATION SCIENCE PROGRAMS IN
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
  `(a) IN GENERAL- The Secretary shall 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 ethnic minorities, particularly in areas of critical needs of
  library and information science. 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 libraries and library and information
  science programs, including new techniques of information transfer and
  communication technology.
  `(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; and
  `(10) North Carolina Central University School of Law.'.
  (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 (10) 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 (10) 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 (10) 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 paragraphs (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 (10) 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 distributed 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 clauses (i) through (v) 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 15 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 July 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
  indicates a decrease 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 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 by inserting before the period
  at the end of the first sentence 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
-------------------------------------------------------------------------------------------------------------------------------------
                                               If tuition is: And expected
                                               family contribution is:
                                                                                                $0
                                                                                                $1-200
                                                                                                $201-400
                                                                                                $401-600
                                                                                                $601-800
-------------------------------------------------------------------------------------------------------------------------------------
                                             $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
------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                             If tuition is: And expected
                                             family contribution is:
                                                                                      $801-1,000
                                                                                      $1,001-1,200
                                                                                      $1,201-1,400
                                                                                      $1,401-1,600
                                                                                      $1,601-1,800
                                                                                      $1,801-2,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           $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
------------------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE 1- PELL GRANT PAYMENT SCHEDULE--Continued
Dependent Students, Independent Students with Dependents
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                If tuition is: And expected
                                                family contribution 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
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       $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
                                       3,000-3,199
                                       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
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                If tuition is: And expected
                                                family contribution 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
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                              $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
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                If tuition is: And expected
                                                family contribution 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
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                               $0-$99
                                               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
                                          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
                                          3,200-3,300
                                          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
--------------------------------------------------------------------------------------------------------------------------------------------------
                                          If tuition is: And expected family
                                          contribution is:
                                                                                     $0-2,000
                                                                                     $2,001-2,200
                                                                                     $2,201-2,400
                                                                                     $2,401-2,600
                                                                                     $2,601-2,800
--------------------------------------------------------------------------------------------------------------------------------------------------
                                        $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
---------------------------------------------------------------------------------------------------------------------------------------------------
                                           If tuition is: And expected family
                                           contribution is:
                                                                                  $2,801-3,000
                                                                                  $3,001-3,200
                                                                                  $3,201-3,400
                                                                                  $3,401-3,600
                                                                                  $3,601-3,800
---------------------------------------------------------------------------------------------------------------------------------------------------
                                         $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
                                     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
----------------------------------------------------------------------------------------------------------------------------------------
                                             If tuition is: And expected
                                             family contribution is:
                                                                                    $3,801-4,000
                                                                                    $4,001-4,200
                                                                                    $4,201-4,400
                                                                                    $4,401-4,600
----------------------------------------------------------------------------------------------------------------------------------------
                                           $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) by reducing the amount in any such cell that exceeds such maximum
  grant amount to an amount equal to such maximum grant amount; 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
--------------------------------------------------------------------------------------------------------------------------
                                                Tuition is: And expected
                                                family contribution is:
                                                                                               0
                                                                                               $1-200
                                                                                               $201-400
                                                                                               $401-600
--------------------------------------------------------------------------------------------------------------------------
                                           $0-$199
                                           $2,750 $2,427   $2,347   $2,266
                                           200-399
                                           2,825  2,502    2,422    2,341
                                           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
---------------------------------------------------------------------------------------------------------------------------------------------------
                                             If tuition is: And expected
                                             family contribution is:
                                                                                        $601-800
                                                                                        $801-1,000
                                                                                        $1,001-1,200
                                                                                        $1,201-1,400
                                                                                        $1,401-1,600
---------------------------------------------------------------------------------------------------------------------------------------------------
                                           $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
                                       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
----------------------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                   $1,601-1,800
                                                                                   $1,801-2,000
                                                                                   $2,001-2,200
                                                                                   $2,201-2,400
                                                                                   $2,401-2,600
----------------------------------------------------------------------------------------------------------------------------------------------------
                                          $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
----------------------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                   $2,601-2,800
                                                                                   $2,801-3,000
                                                                                   $3,001-3,200
                                                                                   $3,201-3,400
                                                                                   $3,401-3,600
----------------------------------------------------------------------------------------------------------------------------------------------------
                                          $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
                                      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
----------------------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                   $3,601-3,800
                                                                                   $3,801-4,000
                                                                                   $4,001-4,200
                                                                                   $4,201-4,400
                                                                                   $4,401-4,600
----------------------------------------------------------------------------------------------------------------------------------------------------
                                          $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
                                      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
----------------------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                   $4,601-4,800
                                                                                   $4,801-5,000
                                                                                   $5,001-5,200
                                                                                   $5,201-5,400
                                                                                   $5,401-5,600
----------------------------------------------------------------------------------------------------------------------------------------------------
                                          $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
------------------------------------------------------------------------------------------------------------------------------------------------------
                                              If tuition is: And expected
                                              family contribution is:
                                                                                     $5,601-5,800
                                                                                     $5,801-6,000
                                                                                     $6,001-6,200
                                                                                     $6,201-6,400
                                                                                     $6,401-6,600
------------------------------------------------------------------------------------------------------------------------------------------------------
                                            $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
                                        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
---------------------------------------------------------------------------------------------------------------------------------
                                      If tuition is: And expected family
                                      contribution is:
                                                                             $6,601-6,800
                                                                             $6,801-7,000
                                                                             $7,001-7,200
                                                                             $7,201-7,400
---------------------------------------------------------------------------------------------------------------------------------
                                    $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
                                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
----------------------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                       $0-2,000
                                                                                       $2,001-2,200
                                                                                       $2,201-2,400
                                                                                       $2,401-2,600
                                                                                       $2,601-2,800
----------------------------------------------------------------------------------------------------------------------------------------------------
                                          $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
----------------------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                   $2,801-3,000
                                                                                   $3,001-3,200
                                                                                   $3,201-3,400
                                                                                   $3,401-3,600
                                                                                   $3,601-3,800
----------------------------------------------------------------------------------------------------------------------------------------------------
                                          $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
                                      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
---------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                   $3,801-4,000
                                                                                   $4,001-4,200
                                                                                   $4,201-4,400
                                                                                   $4,401-4,600
---------------------------------------------------------------------------------------------------------------------------------------
                                          $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
                                    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
----------------------------------------------------------------------------------------------------------------------------------------------------
                                            If tuition is: And expected
                                            family contribution is:
                                                                                   $4,601-4,800
                                                                                   $4,801-5,000
                                                                                   $5,001-5,200
                                                                                   $5,201-5,400
                                                                                   $5,401-5,600
----------------------------------------------------------------------------------------------------------------------------------------------------
                                          $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
------------------------------------------------------------------------------------------------------------------------------
                                   If tuition is: And expected family
                                   contribution 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
                                      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 student may be awarded a basic grant for more than two and one-half
  academic years while attending on a less than half-time basis.'.
  (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) ENTITLEMENT TO GRANTS- Section 411 of the Act is further amended--
  (1) by striking subsections (g) and (h) and inserting the following:
  `(g) CONTRACTUAL RIGHT TO GRANT- Each student who has qualified for a grant
  under this section shall have a contractual right against the United States
  for the amount to which the student is entitled under this section.'; and
  (2) by redesignating subsection (i) as subsection (h).
  (j) TREATMENT OF RECIPIENTS- Section 411(h) of the Act (as redesignated
  by subsection (i) of this section) 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'.
  (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) REPEAL OF ALLOCATION RULE- Section 415C(b) of the Act is amended--
  (1) by striking paragraph (7); and
  (2) by redesignating paragraphs (8), (9), and (10) as paragraphs (7),
  (8), and (9), respectively.
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. Technical 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 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. POST-BACCALAUREATE ACHIEVEMENT PROGRAM AUTHORITY.
  `(a) PROGRAM AUTHORITY- The Secretary shall carry out a program to be
  known as the `Ronald E. McNair Post-Baccalaureate Achievement Program'
  that shall be designed to provide disadvantaged college students with
  effective preparation for doctoral study.
  `(b) SERVICES- A post-baccalaureate 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 post-baccalaureate
  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 post-secondary 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 post-baccalaureate
  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 authorized 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(a)(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.
  `(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
  sufficient to meet their full financial need (as defined under part F)
  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 403F, 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 institutions, 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
  403E.
  `(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 section 403F(a)
  and section 403F(b) $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--HONORS AWARDS
`SEC. 405A. SCHOLARSHIPS AUTHORIZED.
  `(a) PROGRAM AUTHORITY- The Secretary is authorized, in accordance with
  this chapter, to award Presidential 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 Presidential Honors scholarship for each year that the
  student receives a Pell Grant.
  `(c) PRESIDENTIAL HONORS SCHOLARS- Students awarded scholarships under
  this chapter shall be known as `Presidential Honors Scholars'.
`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 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 Presidential 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 Presidential 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 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 Presidential 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 Presidential Honors Awards in attendance
  at that institution.
  `(c) AWARDS CEREMONY- Each year the Secretary shall conduct an awards
  ceremony honoring first-year recipients of Presidential 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 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--CONGRESSIONAL 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) CONGRESSIONAL ACHIEVEMENT SCHOLARSHIPS- Students awarded scholarships
  under this chapter shall be known as `Congressional 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 Congressional Achievement Scholarship for a given academic year is
  not dependent on whether the student received a Congressional 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 Congressional Achievement Scholarship.
`SEC. 409D. AWARD PROCEDURES.
  `(a) AWARD PROCEDURES- (1) The Secretary shall establish the procedures
  through regulations by which Congressional 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.'.
  (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--
  (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 under this
  part 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.
  (a) INSOLVENCY; CORRECTION OF ERRORS UNDER REDUCTION OF EXCESS CASH
  RESERVES- Section 422 of the Act is amended by adding at the end the
  following new subsections:
  `(e) CORRECTION FOR ERRORS UNDER REDUCTION OF EXCESS CASH RESERVES- (1)
  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) 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.
  `(f) INSOLVENCY OF A GUARANTY AGENCY-
  `(1) INFORMATION COLLECTION; STANDARDS- The Secretary shall collect, on at
  least an annual basis, information from each guaranty agency to enable the
  Secretary to evaluate the financial solvency of each agency. The information
  collected shall include, at a minimum, the amount of current reserves,
  cash disbursements, and accounts payable and receivable. The Secretary,
  based on the information collected under this paragraph, shall establish
  a standard for use in determining which guaranty agencies which shall be
  subject to guaranty agency management plans under paragraph (2).
  `(2) MANAGEMENT PLANS- Any guaranty agency determined by the Secretary
  under the standard 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 and shall be subject to approval by the Secretary.
  `(3) AGENCY FAILURE TO SUBMIT ACCEPTABLE PLANS- If a guaranty agency fails
  to submit a guaranty agency management plan acceptable to the Secretary or
  is 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 order to
  meet immediate cash needs of the guaranty agency and permit the uninterrupted
  payment of claims;
  `(B) permit the transfer of guarantees to another guaranty agency;
  `(C) terminate the reinsurance agreement of the guaranty agency at a
  specified date, or require the merger or consolidation of the guaranty
  agency;
  `(D) transfer guarantees to the Department for the purpose of payment of
  such claims, after consulting with affected lenders prior to such transfer
  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
  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 Congress a report specifying the
  Secretary's assessment of the fiscal soundness of the guaranty agency
  system together with recommendations for legislative changes, if any,
  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 shall be exempt from disclosure
  under section 552a of title 5, United States Code, relating to freedom of
  information, or any other Federal law.'.
  (b) CONFORMING AMENDMENTS- Section 428(b)(1) of the Act is amended--
  (1) by striking out `and' at the end of subparagraph (W),
  (2) by striking out the period at the end of subparagraph (X) and inserting
  a semicolon, and
  (3) by adding at the end the following new subparagraph:
  `(Y) provides information to the Secretary pursuant to section 422(f)
  and maintains sufficient reserve funds in relation to its guarantee
  obligations; and'.
SEC. 424. GRADUATED REPAYMENT.
  (a) FISL AMENDMENT- Section 427(c) of the Act is amended--
  (1) by striking--
  `(c) MINIMUM REPAYMENT RATE- The total of the payments'
and inserting the following:
  `(c) SPECIAL REPAYMENT RULES-
  `(1) MINIMUM REPAYMENT RATE- Except as provided in paragraph (2), the
  total of the payments';
  (2) by indenting the remaining text of subsection (c) 2 EM spaces; and
  (3) by adding at the end thereof the following:
  `(2) GRADUATED REPAYMENT SCHEDULE- If a borrower so requests prior to the
  beginning of the repayment period, the repayment of a loan to that borrower
  insured under this part shall be made in accordance with a graduated or
  income-sensitive schedule established by the lender.'.
  (b) GSL AMENDMENT- Section 428(b)(1)(L) of the Act is amended--
  (1) by striking `provides that the total' and insert in lieu thereof
  `provides that, except as provides in clause (iv), the total';
  (2) by striking the semicolon at the end of clause (ii) and inserting `;
  and'; and
  (3) by inserting after clause (ii) the following new clauses:
  `(iii) for the first 2 years of repayment the borrower shall receive
  monthly statements that designate the principal and the interest that has
  been repaid; and
  `(iv) if the borrower so requests prior to the beginning of the repayment
  period, the repayment of a loan to that borrower shall be made in accordance
  with a graduated or income-sensitive schedule established by the lender.'.
SEC. 425. STUDY ABROAD.
  (a) DISBURSEMENT-
  (1) INSURED LOANS- Section 427(a)(3) of the Act is amended by inserting
  before the semicolon the following: `, and except further that checks to
  students who are studying outside the United States in a program of study
  abroad that is approved for credit by the institution may be endorsed
  pursuant to an authorized power-of-attorney'.
  (2) GUARANTEED LOANS- Section 428(b)(1)(N) of the Act is amended by
  inserting before the semicolon the following: `or 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 428(b)(1)(O) of the Act is amended by
  inserting before the semicolon at the end thereof the following: `except
  for borrowers who are 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.
  Section 427A(e)(3) of the Act is amended--
  (1) by striking `or by reducing the number of payments' and inserting
  `by reducing the number of payments'; and
  (2) 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).'
SEC. 427. AMENDMENTS TO SECTION 428.
  (a) 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.'.
  (b) 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)(1) of the Act (as redesignated by
  subsection (a)) 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)'.
  (c) DEFERMENTS-
  (1) AMENDMENT- Section 428(b)(1)(M) of the Act is amended--
  (A) by inserting `by the Secretary' after `shall accrue and be paid'; and
  (B) 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;
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;
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),'.
  (d) 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) except
  as provided in subparagraph (M) of this paragraph and subsection (c)(3)
  of this section, 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 subparagraphs (D) and (L) of this paragraph and except
  as provided by subparagraph (M) of this paragraph, and subsection (c)(3)
  of this section, 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;'.
  (e) CONSEQUENCES OF LS&T ACTIONS- Section 428(b)(1)(T) is amended to read
  as follows:
  `(T) provides that any guaranty agency may limit the total number of loans
  or volume of loans, made under this part, which are allowed to an eligible
  institution during any academic year; and may limit, suspend or terminate
  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 the Federal student loan insurance programs or is ineligible pursuant
  to criteria issued under the student loan insurance program which are
  substantially the same as regulations with respect to such eligibility
  issued under the Federal student loan insurance programs;
  `(ii) there is a State constitutional prohibition affecting the eligibility
  of such an institution;
  `(iii) such institution fails to make timely refunds to students 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 loan or grant 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 finalizes a limitation, suspension, or
termination action against an eligible institution, that action is immediately
applicable nationally for all institutions with the Department of Education
institution identification code of such institution, unless the Secretary
states otherwise within 30 days of notification by the guaranty agency;'.
  (f) PARTICIPATION AGREEMENTS BETWEEN GUARANTY AGENCIES AND INSTITUTIONS-
  Section 428(b)(1) is amended by adding at the end thereof the following
  new subparagraph:
  `(Z) provides for a participation agreement between the guaranty agency
  and each eligible institution within its designated service area.'.
  (g) 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
  `; and'; and
  (3) by adding at the end the following new subparagraph:
  `(F) provide that the lender will be required promptly to notify the
  borrower, and, upon the request of such institution, the guaranty agency
  shall notify the last institution the student attended prior to the
  beginning of repayment of any loan made under this part of--
  `(i) any sale or other transfer of the loan to another holder;
  `(ii) the address and phone number by which contact may be made with such
  other holder concerning repayment of the loan.'.
  (h) 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.
  (i) 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.'.
  (j) 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) RESTRICTIONS ON GUARANTY AGENCY OFFICERS AND EMPLOYEES- No guaranty
  agency shall permit any of its officers or employees, or any member of
  their immediate families, to have a direct financial interest in, or serve
  as an officer or employee of, any lender, secondary market, contractor,
  or servicer with which the guaranty agency does business.'.
  (k) INFORMATION FROM STATE LICENSING BOARDS- Section 428(b) of the Act is
  further amended by adding at the end the following new paragraph:
  `(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.'.
  (l) 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 45 days after the guaranty agency discharges its insurance
  obligation on the loan, whichever is later.'.
  (m) 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.'.
  (n) 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'.
  (o) FORBEARANCE- 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; and
  `(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.
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.'.
  (p) 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'.
  (q) SUBROGATION- Section 428(c)(8) of the Act is amended to read as follows:
  `(8) ASSIGNMENT TO PROTECT THE FEDERAL FISCAL INTEREST- If the Secretary
  determines that the protection of the Federal fiscal interest so requires,
  a guaranty agency shall assign to the Secretary any loan of which it is
  the holder 36 months after the Secretary has made a payment pursuant to
  paragraph (1) of this subsection unless a judgment against the defaulted
  borrower has been obtained or a payment from all sources of at least $300
  has been received in the preceding 12 months.'.
  (r) 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) The Secretary shall make the determination under subparagraph (A)
  based upon the audits submitted under this subparagraph and submit the
  results of the determination to each appropriate guaranty agency.
  `(iii) Each guaranty agency shall review the Secretary's determination
  on the basis of the audit and other information in the possession of the
  guaranty agency. If the results of the audit are not persuasively rebutted
  by such other information, the Secretary shall inform the eligible lender
  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 by the
  Secretary upon 60 days notice and an opportunity for a hearing before the
  Secretary upon a finding by the Secretary 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.'.
  (s) COST OF LENDER PARTICIPATION PROMOTION- Section 428(f)(1)(A)(i)
  of the Act is amended by striking `commercial lender' and inserting
  `eligible lender'.
SEC. 428. SUPPLEMENTAL LOAN PROGRAM.
  (a) 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 section
  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.'.
  (b) 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 or for which payments of principal
  are deferred under sections 427(a)(2)(C)(i) and 428(b)(1)(M)(i), 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. 429. PLUS LOANS.
  (a) 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.'.
  (b) 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).'.
  (c) 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) 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;'.
  (b) 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.'.
  (c) 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).'.
  (d) 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), and that any such period shall not be included in determining
  the repayment period pursuant to subsection (c)(2) of this section;'.
  (e) REPAYMENT PERIODS- Section 428C(c)(2)(A) of the Act is amended 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.'.
  (f) GRADUATE AND INCOME SENSITIVE REPAYMENT- Section 428C(c)(2)(A) of the
  Act is amended by striking `may' and inserting `shall'.
SEC. 431. DISBURSEMENT RULES.
  (a) PENALTIES PROHIBITED- Section 428G(b) of the Act is amended by adding
  at the end the following new paragraph:
  `(3) PENALTIES TO STUDENTS PROHIBITED- No institution may penalize any
  student by, for example, assessing any late fees or denying a student
  access to classes, libraries or computer facilities because of a student's
  inability to meet his or her obligations to the institution caused by the
  delayed disbursement of loan proceeds provided for in this subsection.'.
  (b) 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) may, with the permission of the borrower, be disbursed on a weekly
  or monthly basis, consistent with paragraph (1) of this subsection.'.
  (c) 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, this provision shall not apply to the $300 overaward
  allowance under section 443(b)(4) of Part C for students receiving assistance
  under that part'.
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 shall provide to the lender a statement from the
  eligible institution at which the student has been accepted for enrollment,
  or a 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 allowances 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- (1) 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) 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) 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) 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) 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 OF LOANS FOR INCLUSION IN THE PROGRAM- Loans made under this
  part shall be eligible for extended collection pursuant to this section if--
  `(1) the location of the borrower is known;
  `(2) the borrower has made no payments or has missed at least two consecutive
  payments;
  `(3) the loans are at least 120 days but less than 180 days delinquent,
  and all due diligence required has been performed;
  `(4) the loan entered repayment if fiscal year 1990 or later;
  `(5) the participating guaranty agency has provided preclaims assistance
  pursuant to a request by the eligible lender at 60 to 90 days of delinquency;
  and
  `(6) the eligible lender providing extended collection efforts is not in
  possession of information that the loan may be uncollectible.
  `(e) LENDER ELIGIBILITY TO PARTICIPATE- An eligible lender may participate
  in the program authorized by this section pursuant to an agreement entered
  into under subsection (a) if--
  `(1) 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;
  `(2) the eligible lender is not subject to a limitation, suspension,
  or termination agreement or Default Management Plan under this part; and
  `(3) the eligible lender meets such other criteria as the guaranty agency
  and the Secretary may reasonably require.
  `(f) 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.
  `(g) REPORTS TO THE SECRETARY AND TO THE CONGRESS- (1) 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) 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 recommendations as the Secretary may deem
  appropriate, including expansion of the demonstration program.
  `(h) REGULATIONS- The Secretary shall prescribe regulations for the
  administration of this section within 120 days of the enactment of this Act.
  `(i) 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.
  `(j) TERMINATION- The demonstration program shall terminate on September
  30, 1995.'.
SEC. 433. ADMINISTRATIVE PROVISIONS.
  (a) DEFAULT REDUCTION- Section 431 of the Act is amended by adding at the
  end the following new subsection:
  `(c) USE FOR DEFAULT REDUCTION MANAGEMENT- (1) USE REQUIRED- The Secretary
  shall expend no less than $25,000,000 for fiscal year 1993 and each of the
  four succeeding fiscal years from funds under this section for default
  reduction management activities. 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. At the
  conclusion of each fiscal year, the Secretary shall report his findings and
  activities concerning the expenditure of funds authorized by this section
  to the Appropriations Committees of the House of Representatives and the
  Senate and to the Committee on Education and Labor of the House and the
  Committee on Labor and Human Resources of the Senate.
  `(4) TRAINING ACTIVITIES- Not less than $5,000,000 for fiscal year 1993
  and each of the four succeeding fiscal years of the amount made available
  under paragraph (1) of this subsection shall be used to carry out section
  486 of this Act.'.
  (b) AUTHORITY TO REGULATE SERVICES- Section 432(a)(1) is amended by inserting
  before the semicolon the following: `, including regulations with respect
  to third party servicers to ensure sound management and accountability of
  programs under this part'.
  (c) LIMITATION, SUSPENSION, AND TERMINATION- The second sentence of section
  432(h)(2)(A) of the Act is amended by striking out `The Secretary shall
  disqualify such lender from participation in the student loan insurance
  program of each of the guaranty agencies under this part, and notify
  such guaranty agencies of such disqualification--' and inserting in lieu
  thereof `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 action--'.
  (d) 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) Within 270 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) 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) 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 270 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) 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) 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) 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 270 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.'.
  (e) 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.'.
  (f) CONSEQUENCES OF GUARANTY AGENCY INSOLVENCY- Section 432 of the Act is
  further amended by adding at the end the following new subsection:
  `(n) 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.'.
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;
  `(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; and
  `(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.'; and
  (2) 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';
  (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
  (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.'.
  (e) REPEAL OF ADDITIONAL DEFINITIONS- Section 435 of the Act is further
  amended by striking subsections (g), (h), and (n).
  (f) DEFINITION OF THIRD PARTY SERVICER- Section 435 of the Act is amended
  by inserting after subsection (f) the following:
  `(g) THIRD PARTY SERVICER- 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 eligible lender,
  to administer, through either manual or automated processing, any aspect of
  such guaranty agency's or lender's student loan programs under this part,
  including, but not limited to, originating, guaranteeing, monitoring,
  processing, servicing, or collecting loans.'.
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) 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 pursue any claim available to such borrower against
  the institution or settle the loan obligation pursuant to the bonding
  authority under section 487(c)(1)(B).
  `(2) 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) 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.
  `(4) 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.
  `(5) The Secretary shall report to credit bureaus with respect to loans
  which have been discharged pursuant to this subsection.
  `(6) This subsection shall apply to all loans made to borrowers who were
  in attendance at an institution which ceased to provide instruction on or
  after January 1, 1986.'.
SEC. 437. SPECIAL RULE; ELIMINATION OF DISCOUNTING.
  (a) SPECIAL ALLOWANCE PERMITTED ON UNSUBSIDIZED LOANS- Section
  438(b)(5)(A)(ii) of the Act is amended by inserting `428H,' after `428C,'.
  (b) 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).'.
  (c) 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 thereof the following new paragraph:
  `(6) PHASEOUT OF ORIGINATION FEE- For each of the following academic years,
  the origination fee shall not exceed the following percentages of the
  principal amount of the loan:
  `(A) For the academic year beginning July 1, 1993, 4 percent.
  `(B) For the academic year beginning July 1, 1994, 3 percent.
  `(C) For the academic year beginning July 1, 1995, 2 percent.
  `(D) For the academic year beginning July 1, 1996, 1 percent.
  `(E) For the academic year beginning July 1, 1997, and thereafter, the
  origination fee shall be zero.'.
  (d) DISCOUNTING- Section 438(d)(2)(C) of the Act is amended by striking
  `or discount'.
SEC. 438. STUDENT LOAN MARKETING ASSOCIATION.
  (a) INTEREST CHARGES- Section 439(d)(3) of the Act is amended by adding at
  the end the following new sentence: `The Association may charge interest
  on any loan on the same basis as national banks located in the District of
  Columbia and, with respect to loans made through a lender located outside
  of the District of Columbia, on the same basis as national banks located
  in the State in which such lender is located.'.
  (b) 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 ASSOCIATION-
  `(1) REPORTS BY THE ASSOCIATION- The Association shall promptly furnish to
  the Secretary 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 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
  requested 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.
  `(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 of
  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 categories 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) CONSEQUENCES OF FAILURE TO AWARD- Section 442(e) of the Act is amended
  to read as follows:
  `(e) REALLOCATION OF EXCESS ALLOCATIONS- (1) 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 not
  to exceed 25 percent of such excess to eligible institutions to carry out
  the purposes of section 1131. The Secretary shall allocate the remainder
  of such excess in accordance with section 445(a)(2).
  `(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.'.
  (d) MENTORING 447- Section 443(b)(2) of the Act is amended by striking
  subparagraph (A) and inserting the following:
  `(A) an institution may use funds provided under this part to pay eligible
  students to engage in activities as a mentor for the purpose of--
  `(i) tutoring;
  `(ii) supporting educational and recreational activities;
  `(iii) counseling, including career counseling; and
  `(iv) other appropriate activities; and'.
  (e) 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;'.
  (f) 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;'.
  (g) 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'.
  (h) 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.'.
  (i) INDIVIDUALS WITH DISABILITIES- Section 443(b) of the Act is amended--
  (1) by redesignating paragraph (9) as paragraph (10);
  (2) by striking `and' at the end of paragraph (8); and
  (3) by inserting after paragraph (8) the following new paragraph:
  `(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; and'.
  (j) 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.'.
  (k) 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 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.'.
  (l) 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 alternatives 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 LOANS
`SEC. 451. PROGRAM AND PAYMENT AUTHORITY.
  `(a) PROGRAM AUTHORITY- The Secretary shall, in accordance with the
  provisions of this part, carry out a direct loan program for qualified
  students at 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.
  `(b) PAYMENT AUTHORITY- The Secretary shall, from funds made available
  under section 458, make payments under this part for any fiscal year to
  each institution of higher education having an agreement under section 452,
  on the basis of the estimated needs of the students of that institution
  for student loans taking into consideration the demand and eligibility of
  such students for subsidized and unsubsidized direct loans under this part.
  `(c) PAYMENT RULES-
  `(1) IN GENERAL- The Secretary shall make payments required by subsection
  (b) of this section in such installments as the Secretary determines--
  `(A) reflect accurately the disbursement of funds for student loans by
  the institution of higher education concerned, and
  `(B) will best carry out the objectives of this part.
  `(2) INITIAL PAYMENTS- The initial payments for any academic year required by
  subsection (b) shall be made available to institutions of higher education
  not later than July 1 for the academic year which begins on or after that
  date. Payments of entitlements by the Secretary under this part shall be
  made promptly.
  `(d) ENTITLEMENT PROVISION- An institution whose application has been
  approved by the Secretary under section 452(b) shall be deemed to have
  a contractual obligation from the United States for making the payments
  specified in that application.
`SEC. 452. APPLICATIONS OF AND AGREEMENTS WITH INSTITUTIONS OF HIGHER
EDUCATION.
  `(a) APPLICATION REQUIRED-
  `(1) IN GENERAL- Any institution of higher education desiring to receive
  payments from the Secretary under this part shall make an agreement under
  subsection (b) and shall submit an application for such payments to the
  Secretary in accordance with the provisions of this part. The Secretary
  shall set dates before which such institutions must file applications
  under this section. Each such application shall contain such information
  as is necessary to ensure the correctness of estimated need for funds for
  students at the institution of higher education.
  `(2) FIRST COHORT OF INSTITUTIONS- For the academic year beginning July 1,
  1994, the Secretary shall make agreements under subsection (b) with not
  less than 450 institutions, but not more than 500 institutions. Agreements
  with institutions for the academic year beginning July 1, 1994, shall be
  concluded by July 1, 1993, and the Secretary shall publish the list of
  the institutions with which he has concluded agreements in the Federal
  Register not later than July 1, 1993. For the academic year beginning
  July 1, 1994, the Secretary shall make agreements with institutions which
  represent a cross-section of institutions of higher education in terms of
  size, geographic location, length of program, control and composition of
  student body.
  `(3) SECOND COHORT OF INSTITUTIONS- For the academic year beginning July 1,
  1995, the Secretary shall make agreements with not less than 950 institutions
  but not more than 1,000 institutions in addition to the institutions with
  which the Secretary made agreements for the academic year beginning July 1,
  1994. Agreements with institutions for the academic year beginning July 1,
  1995, shall be concluded by July 1, 1994, and the Secretary shall publish
  the list of institutions with which he has concluded agreements in the
  Federal Register not later than July 1, 1994.
  `(4) THIRD COHORT OF INSTITUTIONS- For the academic year beginning July 1,
  1996, the Secretary shall make agreements with any institution desiring to
  participate. Agreements with institutions for the academic year beginning
  July 1, 1996, shall be concluded by July 1, 1995.
  `(b) AGREEMENT REQUIRED- An agreement with any institution of higher
  education for the payment of advances under this part shall--
  `(1) provide for the establishment and maintenance of a program at the
  institution under which--
  `(A) the institution will identify eligible students at the institution,
  in accordance with section 484;
  `(B) the institution will estimate the need of each such student as required
  by Part F; and
  `(C) the institution will originate loans to such eligible students in
  accordance with this part;
  `(2) provide assurances that the institution will comply with the provisions
  of section 463A, relating to student loan information;
  `(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 for the Secretary only for the purpose of making
  loans under this part; and
  `(4) include such other provisions as may be necessary to protect the
  financial interest of the United States and promote the purposes of this
  part as are agreed to by the Secretary and the institution.
  `(c) USE OF DESIGNATED LENDING AGENTS- An institution or a consortium of
  institutions may carry out its responsibility to originate loans pursuant to
  subsection (b)(1)(C) through a designated lending agent of such institution
  or consortium in accordance with an agreement between such institution or
  consortium and the designated lending agent that--
  `(1) is in such form and contains such terms and conditions as the Secretary
  shall require by regulation to ensure the competence of the lending agent
  to originate loans under this part and to protect the fiscal interest of
  the Federal Government; and
  `(2) is approved by the Secretary.
  `(d) ADMINISTRATIVE EXPENSE PROVISION- An institution that has entered into
  an agreement under subsection (b) shall be entitled, for each fiscal year
  during which it makes student loans under such agreement, to a payment
  in lieu of reimbursement for its expenses in administering its student
  loan program under this subpart during such year. Each such payment shall
  be made in accordance with section 489 and shall be an amount equal to
  $20 per academic year for each student enrolled in that institution who
  receives a loan under this part for that year. Payments received by an
  institution under this subsection shall be used first by the institution
  to carry out the provisions of section 489(b) of this Act and then for such
  additional administrative costs as the institution determines necessary. An
  institution that has an agreement under subsection (b) shall be deemed to
  have a contractual right to the payments required by this subsection.'
`SEC. 453. ELIGIBILITY FOR AND AMOUNT OF LOANS.
  `(a) ELIGIBILITY-
  `(1) COMMON ELIGIBILITY REQUIREMENTS FOR SUBSIDIZED AND UNSUBSIDIZED LOANS-
  Any subsidized loan under this part may be made only to a student eligible
  to participate in programs under this title pursuant to section 484, and
  any unsubsidized loan under this part may be made only to such a student
  or the parent of a dependent undergraduate student.
  `(2) NEEDS TESTING FOR SUBSIDIZED LOANS- A subsidized loan under this part
  may be made only to a student who (in addition to meeting the requirements
  of paragraph (1)) demonstrates financial need for such loan (pursuant to
  part F of this title).
  `(3) STUDENT ELIGIBILITY FOR UNSUBSIDIZED LOANS- (A) Independent students
  shall be eligible to borrow unsubsidized loans under this part in amounts
  specified in subsection (c)(2). In addition, undergraduate dependent students
  shall be eligible to borrow funds under this section if the financial aid
  administrator determines, after review of the financial aid information
  submitted by the student and considering the debt burden of the student,
  that exceptional circumstances will likely preclude the student's parents
  from borrowing under this part. If the financial aid administrator makes
  such a determination, appropriate documentation of such determination shall
  be maintained in the institution's records to support such determination. No
  student shall be eligible to borrow unsubsidized loans under this part until
  such student has obtained a certificate of graduation from a school providing
  secondary education, or the recognized equivalent of such certificate.
  `(B) Unsubsidized loans may not be borrowed under this part by any student
  who is enrolled at any institution during any fiscal year if the cohort
  default rate for such institution, for the most recent fiscal year for
  which such rates are available, equals or exceeds 30 percent. The Secretary
  shall notify institutions to which such restriction applies annually, and
  specify the fiscal year covered by the restriction. The Secretary shall
  afford any institution to which such restriction applies an opportunity to
  present evidence contesting the accuracy of the calculation of the cohort
  default rate for such institution.
  `(4) PARENT ELIGIBILITY FOR UNSUBSIDIZED LOANS- Parents of a dependent
  student shall be eligible to borrow unsubsidized loans under this part in
  any amount, subject to subsection (c)(1).
  `(b) SUBSIDIZED LOAN AMOUNTS-
  `(1) DETERMINATION BASED ON COST OF ATTENDANCE- The amount of all subsidized
  loans for each student for each academic year made from loan funds paid
  pursuant to agreements under this part may not exceed the cost of attendance
  at the institution of higher education for that year minus the aggregate of--
  `(A) any financial assistance received by the student borrower under parts
  A and C of this title, and any other provision of Federal law;
  `(B) any other scholarship, grant, and loan assistance received by the
  student borrower; and
  `(C) the expected family contribution.
  `(2) ANNUAL LIMITS- No student may borrow under this part an amount of
  subsidized loans in any academic year or its equivalent (as determined
  under regulations of the Secretary) in excess of--
  `(A) 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) $6,500, if such student is carrying at least the normal full-time
  academic workload (as defined in regulations of the Secretary);
  `(ii) $4,875, if such student is carrying three-quarters of the normal
  full-time academic workload (as defined in regulations of the Secretary); and
  `(iii) $3,250, if such student is carrying at least one-half of the normal
  full-time academic workload (as defined in regulations of the Secretary);
  `(B) 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) $8,000, if such student is carrying at least the normal full-time
  academic workload (as defined in regulations of the Secretary);
  `(ii) $6,000, if such student is carrying at least three-quarters of
  the normal full-time academic workload (as defined in regulations of the
  Secretary); and
  `(iii) $4,000, if such student is carrying at least one-half of the normal
  full-time academic workload (as defined in regulations of the Secretary).
  `(C) In the case of a graduate or professional student (as defined in
  regulations of the Secretary) at an eligible institution--
  `(i) $13,000, if such student is carrying at least the normal full-time
  academic workload (as defined in regulations of the Secretary); and
  `(ii) $6,500, if such student is carrying at least one-half of the normal
  full-time academic workload (as defined in regulations of the Secretary); and
except in cases where the Secretary determines, pursuant to regulations,
that a higher amount is warranted in order to carry out the purpose of this
part with respect to students engaged in specialized training requiring
exceptionally high costs of education.
  `(3) AGGREGATE LIMITS- No student may borrow under this part an aggregate
  principal amount of subsidized loans in excess of--
  `(A) $38,500, in the case of any student who has not successfully completed
  a program of undergraduate education (excluding unsubsidized loans); or
  `(B) $98,500, in the case of any graduate or professional student (as
  defined by regulations of the Secretary and including any loans under
  this part made to such student before the student became a graduate or
  professional student, but excluding unsubsidized loans).
  `(c) UNSUBSIDIZED LOAN AMOUNTS-
  `(1) DETERMINATION BASED ON COST OF ATTENDANCE- The amount of all
  unsubsidized loans for any student (whether obtained by the student or a
  parent, or both) for each academic year made from loan funds paid pursuant
  to agreements under this part may not exceed the cost of attendance at
  the institution of higher education for that year minus the aggregate of--
  `(A) any financial assistance received by the student borrower under parts
  A and C of this title, and any other provision of Federal law, including
  any subsidized loan under this part; and
  `(B) any other scholarship, grant, and loan assistance received by the
  student borrower.
  `(2) LIMITS ON UNSUBSIDIZED LOANS TO STUDENTS-
  `(A) ANNUAL LIMITS- No student may borrow under this part an amount of
  unsubsidized loans in any academic year or its equivalent (as determined
  under regulations of the Secretary) in excess of--
  `(i) $4,000, in the case of a student who has not successfully completed
  the first and second year of a program of undergraduate education, except
  as provided in subparagraph (C);
  `(ii) $6,000, in the case of a student who has successfully completed such
  first and second year but who has not successfully completed the remainder
  of a program of undergraduate education; or
  `(iii) $10,000, in the case of a graduate or professional student (as
  defined in regulations of the Secretary);
except in cases where the Secretary determines, pursuant to regulations,
that a higher amount is warranted in order to carry out the purpose of this
part with respect to students engaged in specialized training requiring
exceptionally high costs of education.
  `(B) AGGREGATE LIMITS- No student may borrow under this part an aggregate
  principal amount of unsubsidized loans in excess of--
  `(i) $28,000, in the case of any student who has not successfully completed
  a program of undergraduate education (excluding subsidized loans); or
  `(ii) $78,000, in the case of any graduate or professional student (as
  defined by regulations of the Secretary and including any loans under
  this part made to such student before the student became a graduate or
  professional student, but excluding subsidized loans).
  `(d) SPECIAL RULE FOR FIRST-YEAR STUDENTS- In the case of a student who
  has not successfully completed the first year of a program of undergraduate
  education and who is not enrolled in a program that is at least one academic
  year in length, as determined in accordance with regulations prescribed
  by the Secretary, the maximum amount of unsubsidized loans a student may
  borrow in any academic year or its equivalent shall be--
  `(1) $2,500 for a student who is determined, in accordance with such
  regulations, to be enrolled in a program whose length is at least  2/3
  of an academic year;
  `(2) $1,500 for a student who is determined, in accordance with such
  regulations, to be enrolled in a program whose length is less than  2/3 ,
  but at least  1/3 , of an academic year; and
  `(3) zero for a student who is determined, in accordance with such
  regulations, to be enrolled in a program whose length is less than  1/3
  of an academic year.
  `(e) DETERMINATIONS BASED ON COST OF ATTENDANCE- Determinations under
  subsections (b)(1) and (c)(1) shall be made by the institution of higher
  education in accordance with the provisions of part F of this title.
  `(f) ANNUAL LIMIT DETERMINATIONS- The annual limits contained in this
  section shall not be deemed to be exceeded by a line of credit under which
  actual payments to the borrower will not be made in any year in excess of
  the annual limit.
`SEC. 454. TERMS OF LOANS.
  `(a) REQUIREMENTS FOR BOTH SUBSIDIZED AND UNSUBSIDIZED LOANS- A loan may
  be made with funds paid under this part only if--
  `(1) made to a student, or the parent of a student, who (A) is an eligible
  student under section 484; (B) has agreed to notify promptly the Secretary
  concerning any change of address; and (C) is carrying at least one-half
  the normal full-time academic workload for the course of study the student
  is pursuing (as determined by the institution); and
  `(2) evidenced by a note or other written agreement which--
  `(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;
  `(B) provides that periodic installments of principal need not be paid,
  but interest shall accrue and be paid by the Secretary, during any period--
  `(i) during which the borrower (I) is pursuing a full-time course of study
  at an eligible institution, (II) is pursuing at least a half-time course of
  study (as determined by such institution) during an enrollment period for
  which the student has obtained a loan under this part, or (III) is pursuing
  a course of study pursuant to a graduate fellowship program approved by the
  Secretary, or pursuant to a rehabilitation training program for disabled
  individuals approved by the Secretary except that no borrower shall be
  eligible for a deferment under this clause or any subsidized loan made
  under this part, while serving in a medical internship or residency program;
  `(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; or
  `(iii) not in excess of 36 months for any reason which the Secretary deems
  will cause economic hardship for the borrower,
and that any such period shall not be included in determining the 10-year
period provided in subparagraph (B), except that only the provisions of
clauses (i), and (ii) of this subparagraph shall be available in the case
of a borrower who is a parent of a qualified student under section 453(a);
  `(C) entitles the borrower to accelerate without penalty repayment of the
  whole or any part of the loan;
  `(D)(i) contains a notice of the system, of disclosure of information
  concerning such loan to credit bureau organizations under section 430A, and
  `(ii) provides that the Secretary on request of the borrower will provide
  information on the repayment status of the note to such organizations; and
  `(E) contains such other terms and conditions, consistent with the provisions
  of this part and with the regulations issued by the Secretary pursuant to
  this part, as may be agreed upon by the parties to such loan;
  `(3) the funds borrowed are disbursed to the student by check or other means
  that is payable to and requires the endorsement or other certification by
  such student, except nothing in this part shall be interpreted to allow
  the Secretary to require checks to be made copayable to the institution
  and the borrower or to prohibit the disbursement of loan proceeds by means
  other than by check; and
  `(4) the funds borrowed are disbursed by the institution in accordance
  with a schedule that is consistent with subsection (d).
  `(b) ADDITIONAL TERMS FOR SUBSIDIZED LOANS- The note or other written
  agreement for any subsidized loan shall--
  `(1) provide for repayment (except as provided in subsection (e)) of the
  principal amount of the loan in installments over a period of not less
  than 5 years (unless sooner repaid or unless the student during the 6
  months 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
  an institution of higher education one-half the normal full-time academic
  workload as determined by the institution; except--
  `(A) as provided in subsection (a)(2)(B);
  `(B) that the note or other written instrument may contain such reasonable
  provisions relating to repayment in the event of default in the payment
  of interest, or other default by the borrower, as may be authorized by
  regulations of the Secretary in effect at the time the loan is made; and
  `(C) that the Secretary and the student, 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, may agree to a repayment schedule
  which begins earlier, or is of shorter duration, than required by this
  subparagraph, but in the event a borrower has requested and obtained the
  repayment period of less than 5 years, the borrower may at any time prior
  to the total repayment of the loan, have the repayment period extended so
  that the total repayment period is not less than 5 years; and
  `(2) provide for interest on the unpaid principal balance of the loan at a
  rate of 8 percent per year, which interest shall be payable in installments
  over the period of the loan except that, if provided in the note or other
  written agreement, any interest payable by the student may be deferred
  until not later than the date upon which repayment of the first installment
  of principal falls due, in which case interest accrued during that period
  may be added on that date to the principal.
  `(c) ADDITIONAL TERMS FOR UNSUBSIDIZED LOANS- The note or other written
  agreement for any unsubsidized loan shall--
  `(1) provide for repayment (except as provided in subsection (e)) of the
  principal amount of the loan in installments over a period of not less
  than 5 years (unless sooner repaid or unless the borrower during the 6
  months preceding the start of the repayment period, specifically requests
  that repayment be made over a shorter period) nor more than 10 years,
  beginning not later than 60 days after the date such loan is disbursed,
  or, if the loan is disbursed in multiple installments, not later than 60
  days after the disbursement of the last such installment; except--
  `(A) that the note or other written instrument may contain such reasonable
  provisions relating to repayment in the event of default in the payment
  of interest, or other default by the borrower, as may be authorized by
  regulations of the Secretary in effect at the time the loan is made; and
  `(B) that the lender and the borrower, 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, may agree to a repayment schedule
  which begins earlier, or is of shorter duration, than required by this
  subparagraph, but in the event a borrower has requested and obtained the
  repayment period of less than 5 years, the borrower may at any time prior
  to the total repayment of the loan, have the repayment period extended so
  that the total repayment period is not less than 5 years;
  `(2) provide for interest on the unpaid principal balance of the loan at the
  rate most recently determined under subsection (f)(2) at the time the loan
  is made, which interest shall be payable in installments over the period of
  the loan except that, if provided in the note or other written agreement,
  any interest payable by the student may be deferred until not later than
  the date upon which repayment of the first installment of principal falls
  due, in which case interest accrued during that period may be added on
  that date to the principal.
  `(d) REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS-
  `(1) MULTIPLE DISBURSEMENT REQUIRED-
  `(A) TWO DISBURSEMENTS REQUIRED- The proceeds of any loan made under this
  part that is made for any period of enrollment shall be disbursed in 2 or
  more installments, none of which exceeds one-half of the loan.
  `(B) MINIMUM INTERVAL REQUIRED- The interval between the first and second
  such installments shall be not less than one-half of such period of
  enrollment, except as necessary to permit the second installment to be
  disbursed at the beginning of the second semester, quarter, or similar
  division of such period of enrollment.
  `(2) METHOD OF MULTIPLE DISBURSEMENT- Disbursements under paragraph (1)
  shall be made in accordance with a schedule determined by the institution
  that complies with the requirements of this section.
  `(3) WITHHOLDING OF SECOND DISBURSEMENT-
  `(A) WITHDRAWING STUDENTS- An institution or designated lending agent
  that is informed by the borrower or the institution that the borrower
  has ceased to be enrolled before the disbursement of the second or any
  succeeding installment shall withhold such disbursement. Any disbursement
  which is so withheld shall be credited to the borrower's loan and treated
  as a prepayment thereon.
  `(B) STUDENTS RECEIVING OVER-AWARDS- If the sum of a disbursement for any
  student and the other financial aid obtained by such student exceeds the
  amount of assistance for which the student is eligible under this title,
  the institution such student is attending shall withhold and return the
  portion (or all) of such installment that exceeds such eligible amount. Any
  portion (or all) of a disbursement installment which is so returned shall
  be credited to the borrower's loan and treated as a prepayment thereon.
  `(4) SPECIAL RULES FOR MULTIPLE DISBURSEMENT- For the purpose of this
  subsection--
  `(A) all loans issued for the same period of enrollment shall be considered
  as a single loan; and
  `(B) the requirements of such subsection shall not apply in the case of
  a loan made to a student to cover the cost of attendance at an eligible
  institution outside the United States.
  `(e) SPECIFIC REPAYMENT RULES-
  `(1) MINIMUM AMOUNTS TO BE REPAID ANNUALLY- The total of the payments
  by a borrower during any year of any repayment period with respect to
  the aggregate amount of all subsidized and unsubsidized loans to that
  borrower which are paid from loan funds paid pursuant to agreements under
  this part shall not, unless the borrower and the Secretary otherwise agree,
  be less than $600 or the balance of all such loans (together with interest
  thereon), whichever amount is less, except that in the case of husband and
  wife, both of whom have such loans outstanding, the total of the combined
  payments for such a couple during any year shall not be less than $600 or
  the balance of all such loans, whichever is less.
  `(2) GRADUATED AND INCOME CONTINGENT REPAYMENT SCHEDULES- If a borrower so
  requests, the repayment of a loan under this part shall be made in accordance
  with a graduated or income contingent repayment schedule established
  by the Secretary by regulation. In order to carry out the provisions of
  this paragraph, the Secretary and the borrower may agree to increase the
  repayment period described in subsection (b)(1) or (c)(1) of this section,
  but in no event may the repayment period be extended beyond 20 years.
  `(3) NOTICE- The Secretary shall notify the student borrower of a loan under
  this part at the beginning of the repayment period of the availability of
  the flexible repayment program.
  `(f) INTEREST RATES-
  `(1) ORDER TO ESTABLISH RATES ON UNSUBSIDIZED LOANS- The Secretary shall,
  by order published in the Federal Register, establish the interest rates
  for unsubsidized loans made under this part. Such order shall be published
  not later than January 2, and shall be effective with respect to loans
  made during the one-year period beginning on the July 1 following such
  publication. The Secretary's order shall not be subject to judicial review.
  `(2) INTEREST RATE FOR UNSUBSIDIZED LOANS- The order prescribed under
  paragraph (1) shall establish an interest rate for unsubsidized loans made
  after the effective date of such order and before the effective date of
  a subsequent order. Such rate shall be equal to--
  `(A) the bond equivalent rate of 52-week Treasury bills auctioned at the
  final auction held prior to the date such order is prescribed; plus
  `(B) 3.25 percent,
except that such rate shall not exceed 12 percent.
  `(3) REPORT ON INTEREST RATE ON UNSUBSIDIZED LOANS- The Secretary shall
  submit to the Congress a report for any fiscal year for which the interest
  rate for unsubsidized loans established under paragraph (2) subsection is
  not sufficient to recover for the Government--
  `(A) the cost to the Government of obtaining the funds for such loans
  under section 458;
  `(B) the costs to the Government of obtaining collection services for such
  loans under section 457;
  `(C) the costs to the Government of administering this part with respect
  to such loans; and
  `(D) the costs to the Government that result from any defaults on such
  loans by the borrowers.
  `(4) REPORT ON INTEREST RATE ON SUBSIDIZED LOANS- The Secretary shall submit
  to the Congress a report for any fiscal year for which the interest rate
  for subsidized loans established under subsection (b)(2) is not sufficient
  to recover for the Government--
  `(A) the cost to the Government of obtaining the funds for such loans
  under section 458;
  `(B) the costs to the Government of obtaining collection services for such
  loans under section 457; and
  `(C) the costs to the Government of administering this part with respect
  to such loans.
`SEC. 455. CONSOLIDATION LOANS.
  `(a) AGREEMENTS FOR PROVISION OF LOANS-
  `(1) AGREEMENT REQUIRED FOR PROVISION OF LOANS- For the purpose of providing
  loans to eligible borrowers for consolidation of their obligations with
  respect to eligible student loans, the Secretary shall enter into agreements
  in accordance with subsection (b).
  `(2) PROVISION OF FUNDS TO CONSOLIDATION AGENTS- The Secretary shall,
  by regulation, provide for the distribution of funds obtained pursuant to
  section 458 through consolidation agents to eligible borrowers under this
  section. Such regulations shall, to the extent practicable, reflect the
  procedures used to distribute funds to institutions under section 452.
  `(3) DEFINITION OF ELIGIBLE BORROWER- (A) For the purpose of this section,
  the term `eligible borrower' means a borrower who, at the time of application
  for a consolidation loan--
  `(i) has an outstanding indebtedness on eligible student loans, at the
  time of application for a consolidation loan, of not less than $10,000; and
  `(ii) is in repayment status, or in a grace period preceding repayment, and
  is not delinquent with respect to any required payment on such indebtedness
  by more than 90 days.
  `(B) An individual's status as an eligible borrower under this section
  terminates upon receipt of a consolidation loan under this section except
  with respect to eligible student loans received after the date of receipt
  of the consolidation loan. Loans made under this section shall, to the
  extent used to discharge loans made under this title, be counted against
  the applicable limitations on aggregate indebtedness contained in sections
  425(a), 428(b)(1)(B), 428A(b)(2), 454, and 464(a)(2). Nothing in this
  subparagraph shall be interpreted to authorize the Secretary to require
  agents for consolidation loans to receive, to maintain, or to make reports
  with respect to preexisting records relating to any eligible student loan
  (as defined under paragraph (4)) discharged by a borrower in receiving a
  consolidation loan.
  `(4) DEFINITION OF ELIGIBLE STUDENT LOANS- For the purpose of paragraph
  (1), the term `eligible student loans' means any of the following loans, if
  at least one loan is a loan described in subparagraph (A) of this paragraph:
  `(A) loans made under this part except for loans made to parents;
  `(B) loans made, insured, or guaranteed under part B except for loans made
  to parent borrowers under section 428B, including loans made to parent
  borrowers under section 428B as in effect prior to the enactment of the
  Higher Education Amendments of 1986;
  `(C) loans made under part E of this title; or
  `(D) loans made under subpart II of part C of title VII of the Public
  Health Service Act.
  `(b) AGREEMENTS WITH AGENT- Any agent selected by the Secretary to
  operate a program of transmitting consolidation loans from the Secretary
  to eligible borrowers under this section shall enter into an agreement
  with the Secretary which provides--
  `(1) that the agent will provide a consolidation loan to an eligible
  borrower (on request of that borrower) only if the borrower certifies that
  the borrower has no other application pending for a loan under this section;
  `(2) that each consolidation loan will bear interest, and be subject to
  repayment, in accordance with subsection (c);
  `(3) that each consolidation loan will be made, notwithstanding any other
  provision of this part limiting the annual or aggregate principal amount for
  all insured loans made to a borrower, in an amount (A) which is not less than
  the minimum amount required for eligibility of the borrower under subsection
  (a)(3), and (B) which is equal to the sum of the unpaid principal and accrued
  unpaid interest and late charges of all eligible student loans received by
  the eligible borrower which are selected by the borrower for consolidation;
  `(4) that the proceeds of each consolidation loan will be paid to the holder
  or holders of the loans so selected to discharge the liability on such loans;
  `(5) that a consolidation loan will not be made unless the agent has
  determined to its satisfaction, in accordance with reasonable and prudent
  business practices, for each loan being consolidated--
  `(A) that the loan is a legal, valid, and binding obligation of the borrower;
  `(B) that each such loan was made and serviced in compliance with applicable
  laws and regulations; and
  `(C) in the case of loans under part B, that the insurance on such loan
  is in full force and effect;
  `(6) the reporting requirements of the Secretary on the agent and an
  identification of the office of the Department of Education which will
  process claims and perform other related administrative functions;
  `(7) the alternative repayment terms which will be offered to borrowers; and
  `(8) such other terms and conditions as the Secretary may specifically
  require of the agent to carry out this section.
  `(c) TERMS AND CONDITIONS OF LOANS- A consolidation loan made pursuant to
  this section shall be made only to an eligible borrower who has agreed
  to notify the Secretary promptly concerning any change of address. The
  consolidation loan shall be evidenced by a note or other written agreement
  which--
  `(1) is made without security and without endorsement, except that if the
  borrower is a minor and such note or other written agreement executed by
  him or her would not, under applicable law, create a binding obligation,
  endorsement may be required;
  `(2) provides for the payment of interest and the repayment of principal
  in accordance with subsection (c) of this section;
  `(3) 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
  454(a)(2)(B), and that any such period shall not be included in determining
  the repayment period pursuant to subsection (c)(2) of this section;
  `(4) entitles the borrower to accelerate without penalty repayment of the
  whole or any part of the loan; and
  `(5)(A) contains a notice of the system of disclosure concerning such loan
  to credit bureau organizations under section 430A, and
  `(B) provides that the lender on request of the borrower will provide
  information on the repayment status of the note to such organizations.
  `(d) PAYMENT OF PRINCIPAL AND INTEREST-
  `(1) INTEREST RATES- (A) Consolidation loans made under this section shall
  bear interest at rates determined under subparagraph (B) or (C).
  `(B) Except as provided in subparagraph (C), a consolidation loan shall
  bear interest at an annual rate on the unpaid principal balance of the
  loan which is equal to the weighted average of the interest rates on the
  loans consolidated, rounded to the nearest whole percent.
  `(C) A consolidation loan shall bear interest at an annual rate on the
  unpaid principal balance of the loan equal to not less than 8 percent.
  `(2) REPAYMENT SCHEDULES- (A) Notwithstanding any other provision of
  this part, the Secretary shall establish repayment terms as will promote
  the objectives of this section, which shall include the establishment of
  graduated and income contingent repayment schedules. 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.
  `(B) Unless a consolidation loan under subparagraph (A)(ii) will be used
  to discharge at least $10,000 of loans made under this part, such loan
  shall be repaid in accordance with subparagraph (A)(i).
  `(C) The amount outstanding on other student loans which may be counted
  for the purpose of subparagraph (A) may not exceed the amount of the
  consolidation loan.
  `(3) ADDITIONAL REPAYMENT REQUIREMENTS- Notwithstanding paragraph (2), the
  Secretary may, with respect to repayment on the loan when the amount of a
  monthly or other similar payment on the loan is not a multiple of $5, round
  the payment to the next highest whole dollar amount that is a multiple of $5.
  `(4) COMMENCEMENT OF REPAYMENT- Repayment of a consolidation loan shall
  commence within 60 days after all holders have, pursuant to subsection
  (b)(1)(D), discharged the liability of the borrower on the loans selected
  for consolidation.
`SEC. 456. REPAYMENT BY THE SECRETARY OF LOANS OF DECEASED OR DISABLED
BORROWERS
  `If a student borrower who has received a loan described in section 454 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.
`SEC. 457. ADMINISTRATIVE PROVISIONS.
  `(a) IN GENERAL- In carrying out the provisions of this part, the Secretary
  is authorized--
  `(1) to consent to the modification, with respect to rate of interest,
  time of payment of any installment of principal and interest or any portion
  thereof, or any other provision of any note evidencing a loan which has
  been made under this part;
  `(2) to enforce, pay, compromise, waive, or release any right, title,
  claim, lien, or demand, however acquired, including any equity or any
  right of redemption;
  `(3) to conduct litigation in accordance with the provisions of section
  432(a)(2);
  `(4) encourage either directly or by way of contract or other arrangement
  the participation of institutions of higher education in the program
  authorized by this part; and
  `(5) to enter into competitive contracts or other arrangements with State
  agencies, guaranty agencies, nonprofit organizations, institutions of higher
  education, and with collection and servicing agencies, for servicing and
  collection of loans under this part.
  `(b) LOAN COLLECTION FUNCTIONS UNDER COMPETITIVE PROCUREMENT CONTRACTS-
  The Secretary, by one or more contracts made in accordance with Federal
  laws concerning Government procurement, shall provide for--
  `(1) the collection of principal and interest of student loans made under
  this part;
  `(2) the establishment and operation of a central data system for the
  maintenance of records on all loans made pursuant to this part;
  `(3) programs for default prevention; and
  `(4) such other programs as the Secretary determines are necessary to
  assure the success of the student loan program authorized by this part.
  `(c) LOAN CONSOLIDATION FUNCTIONS- The Secretary, by one or more contracts
  made in accordance with Federal laws regulating Government procurement,
  shall provide for loan consolidation in accordance with section 455.
`SEC. 458. AUTHORIZATION OF APPROPRIATIONS.
  `There are authorized to be appropriated such sums as may be necessary for
  fiscal year 1994 and the 4 succeeding fiscal years to enable the Secretary
  to make payments pursuant to section 451.
`SEC. 459. DEFINITIONS.
  `As used in this part--
  `(1) the term `guaranty agency' has the same meaning given that term by
  section 435(j); and
  `(2) the term `institution of higher education' means any eligible
  institution described in section 481 that has demonstrated administrative
  capacity to carry out the provisions of this part.'.
SEC. 452. AMENDMENT TO WIND-DOWN THE STAFFORD STUDENT LOAN PROGRAM.
  Section 428(a)(5) of the Act is amended to read as follows:
  `(5) DURATION OF AUTHORITY- The period referred to in paragraph (1)(B)
  of this subsection shall begin on the date of enactment of this Act and
  end at the close of June 30, 1996.'.
SEC. 453. 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 1992 and for each succeeding fiscal year
  thereafter for administrative expenses necessary for carrying out this
  title, including expenses for staff personnel 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) 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.'.
  (f) 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);'.
  (g) 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 and pursuant to the agreements entered into under paragraph (1),
  shall disclose to any credit bureau organization with which the Secretary
  has such an agreement--
  `(A) the amount of loans made to any borrower under this part at the time
  of the disbursement of the loan; and
  `(B) the information set forth in section 430A(a).'.
  (h) 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) $16,000 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.'.
  (i) 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.'.
  (j) 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;'.
  (k) 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
  disbursement for any student and the other financial aid obtained 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 accordingly.'.
  (l) 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.'.
  (m) DEFERMENTS FOR STUDY ABROAD- Section 464(c) of the Act is amended by
  adding at the end thereof the following new paragraph:
  `(5) 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.'.
  (n) 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 on loans made under this part 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).
  `(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.'.
  (o) 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)'.
  (p) 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.'.
  (q) 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 Revolving 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'.
  (r) DEFINITIONS; LIMITATIONS- Part E of title IV is further amended by
  adding at the end the following new sections:
`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.
`LIMITATIONS
  `SEC. 469A. (a) TERMINATION- No institution that has an agreement with
  the Secretary pursuant to section 452 may receive any funds pursuant to
  section 462 or make any new loans pursuant to part E of this title.
  `(b) DEPOSIT OF COLLECTIONS- Any collections of loans made under part E
  after the institution has begun distributing funds to students pursuant to
  part D shall be deposited in an endowment fund, established and operated
  in accordance with regulations prescribed by the Secretary, the proceeds
  from which shall be awarded, in accordance with subpart 3 of part A of
  this title, to students in attendance at the institution.'.
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
  actual 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;
  `(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); and
  `(12) for any student, additional education expenses determined by the
  institution to be necessary for the student's program of study.
`SEC. 473. FAMILY CONTRIBUTION.
  `For the purpose of this title, except subpart 4 of part A, the term
  `family contribution' 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;
except that the amount determined under this subsection shall not be less
than zero.
  `(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
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    If parents' State or
                                                    territory of residence is--
                                                    And parents' total
                                                    income is--
                                                                                                                                                                                             less
                                                                                                                                                                                             than
                                                                                                                                                                                             $15,000
                                                                                                                                                                                             or
                                                                                                                                                                                             $15,000
                                                                                                                                                                                             or
                                                                                                                                                                                             more
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           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
           (including student)                 1      2      3       4
           5 For each additional subtract:
-------------------------------------------------------------------------------------------------------------
  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 parent 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 instructional 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, computed on the basis of the
  net worth of such business (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
---------------------------------------------------------------------------------------------
           If the net worth of a business 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
----------------------------------------------------------------------------------------------------------------------
                                                        If the age of the
                                                        oldest parent is--
                                                        And there are
                                                                                             two
                                                                                             parents
                                                                                             one
                                                                                             parent
----------------------------------------------------------------------------------------------------------------------
                                               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 equal to--
  `(A) the parents' available income (determined in accordance with subsection
  (c)); multiplied by
  `(B) the assessment schedule in subsection (e),
except that the allowance shall not be less than zero.
  `(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.
  `(i) ADJUSTMENTS FOR ENROLLMENT PERIODS OTHER THAN 9 MONTHS- For periods of
  enrollment other than nine months, the parents' contribution from adjusted
  available income is determined as follows:
  `(1) For periods of enrollment less than 9 months, the parents' contribution
  from adjusted available income (determined in accordance with subsection (b))
  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 is adjusted
  based on individual circumstances.
`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 spouse.
  `(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, computed on the basis of the
  net worth of such business (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
---------------------------------------------------------------------------------------------
           If the net worth of a business 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
-------------------------------------------------------------------------------------------------------------------
                                                        If the age of the
                                                        student is-- And
                                                        the student is
                                                                                                  married
                                                                                                  single
-------------------------------------------------------------------------------------------------------------------
                                               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):
`Percentages for Computation of State and Other Tax Allowance
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     If student's State
                                                     or territory of
                                                     residence is--
                                                     And family's total
                                                     income is--
                                                                                                                                                                                              less
                                                                                                                                                                                              than
                                                                                                                                                                                              $15,000
                                                                                                                                                                                              $15,000
                                                                                                                                                                                              or
                                                                                                                                                                                              more
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                            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
           (including student)                 1      2      3       4
           5 For each additional subtract:
-------------------------------------------------------------------------------------------------------------
  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 spouse.
  `(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 instructional 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, computed on the basis of the
  net worth of such business (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
---------------------------------------------------------------------------------------------
           If the net worth of a business 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
-----------------------------------------------------------------------------------------------------------------
                                                        If the age of the
                                                        student is-- And
                                                        the student is
                                                                                       married
                                                                                       single
-----------------------------------------------------------------------------------------------------------------
                                               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.
  `(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.
`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.
`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) In the computation of family contributions for the programs under this
  title for any academic year, there shall be excluded from family income
  any proceeds of a sale of farm or business assets of that family if such
  sale results from a voluntary or involuntary foreclosure, forfeiture,
  or bankruptcy or an involuntary liquidation.
  `(4) 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;
  `(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) alimony and child support payments; 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 ASSSISTANCE; 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) 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 INSTITUTION OF HIGHER EDUCATION- Section 481(b) of the Act
  is amended by striking the last two sentences and inserting the following:
  `Notwithstanding clause (1) of this subsection, an institution which
  provides less than a 600 clock hour, but more than a 300 clock hour,
  program of training to prepare students for gainful employment in a
  recognized occupation may be eligible for loans under part B or part D if
  (i) the owner of the institution or a prospective employer cosigns the
  loan with the students, pursuant to regulations of the Secretary; and (ii)
  the loan amount is not more than half of the tuition and fees as defined
  in section 472(1).'.
  (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.
  `(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- 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.'.
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 use any form other than one approved
  by the Secretary, the costs of such forms or processing of such forms,
  or of the delivery of aid as the result of using such forms, shall be
  paid by the institution and shall not be charged to or in any way passed
  on to the student. 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;
  (3) by inserting after subsection (a) the following new subsection:
  `(b) STREAMLINED REAPPLICATION PROCESS- (1) The Secretary shall, within
  270 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.
  `(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 visual
  telecommunications devices or mediums and lead to recognized associate,
  bachelor, or graduate degrees conferred by such institutions 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 `visual telecommunications
  devices or mediums' means the use of television transmission, including
  (but not limited to) open broadcast, closed circuit, cable, microwave, or
  satellite, and the use of video cassettes, video discs, and other systems
  or devices that produce visual images.
  `(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 of the period determined under such paragraph
  if 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.
  `(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 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 for a loan where the lender is an
  eligible institution), 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 owed 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 part 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--
  (1) by striking `part E' in the matter preceding paragraph (1) and inserting
  `part D or E';
  (2) by inserting `(1)' after the subsection heading;
  (3) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A),
  (B), and (C), respectively;
  (4) by striking `part B or part E' in subparagraph (A) (as redesignated)
  and inserting `part B, D, or E';
  (5) by striking the last two sentences; and
  (6) by adding at the end the following new paragraph:
  `(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) POLICY- Section 485(f)(1) of the Act is amended by adding at the end
  the following new subparagraph:
  `(J) A statement of current campus policies regarding institutional programs
  aimed at the prevention of sex offenses, procedures to be followed once
  a sex offense has occurred, and the availability of assistance to victims.'.
  (2) 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.'.
  (3) POLICY DEVELOPMENT- Section 485(f) of the Act is amended by adding at
  the end the following new paragraph:
  `(7) In developing a campus sexual assault policy pursuant to paragraph
  (1)(J), some examples might include--
  `(A) clearly establishing the role of appropriate campus personnel in--
  `(i) counseling students regarding the options available for responding
  to the sexual offense, for example, contacting local police and/or going
  through an internal campus disciplinary proceeding;
  `(ii) contacting the proper authorities on the occurrence of a sexual
  offense and providing students a list of the campus personnel responsible
  for providing students with any assistance or information they are to
  receive from the school;
  `(iii) informing students and campus personnel as to the importance of
  preserving evidence as may be necessary to the proof of criminal sexual
  assault;
  `(B) consider the following provisions for inclusion in their campus policy--
  `(i) providing that both the assailant and the victim are assured of the
  same opportunity to have or not have legal assistance, or ability to have
  others present, in any campus disciplinary proceeding; and the right to
  be notified of the outcome of such proceeding;
  `(ii) providing information on any options, as provided by State and
  Federal laws or regulations, with regard to mandatory testing of sexual
  assault suspects for communicable diseases and with regard to notification
  to victims of the results of such testing;
  `(iii) providing information on what other services are available to students
  who are victims of sexual offenses. For example, providing a list of mental
  health services operated by the institution and/or rape crisis centers in
  the surrounding community;
  `(iv) how the institution might try to keep the victim out of close proximity
  to the alleged assailant in classes and the living environment. For example,
  the institutions might try to offer the student housing alternatives
  or classes separate from the alleged assailant, if they are reasonably
  available.'.
  (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 approving bodies 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
  eligible 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) With respect to any institution that offers athletically related
  student aid, the institution will--
  `(A) have an annual audit conducted, in accordance with guidelines prescribed
  by the Secretary by regulation, by a person certified to perform financial
  audits, of--
  `(i) the total revenues, and the revenues by sport, derived by the
  institution's athletic departments and intercollegiate athletic activities;
  `(ii) the total expenditures, and the direct expenditures by sport,
  derived from such departments and intercollegiate activities; and
  `(iii) the total revenues and expenditures of the institution for the same
  period; and
  `(B) make the reports on such audits available for inspection by the
  Secretary and the public.'.
  (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) AVAILABILITY OF RECORDS- Section 487(c)(1)(A)(i) of the Act is amended by
  inserting `and shall be available to relevant guaranty agencies, eligible
  lenders, State agencies (including State approving agencies), and the
  agencies referred to in section 495' after `submitted to the Secretary'.
  (e) FINANCIAL RESPONSIBILITY STANDARDS- Section 487(c)(1)(B) of the Act
  is amended by inserting before the semicolon at the end the following:
  `and such standards of financial responsibility shall--
  `(i) be based on an annual financial audit report of the institution
  (conducted by a qualified, independent organization or persons in accordance
  with standards established by the Comptroller General for the audit of
  governmental organizations, programs, and functions) which is submitted
  to the Secretary; and
  `(ii) require of every institution of higher education a letter of credit
  or other irrevocable bond sufficient to cover all potential liabilities
  of such institution to students and to the Secretary for funds under this
  title and to cover all loan obligations discharged to students pursuant
  to section 437(c)'.
  (f) INFORMATION- Section 487(c) of the Act is amended--
  (1) in paragraph (1), by redesignating subparagraphs (C) through (G)
  as subparagraphs (D) through (H), respectively;
  (2) by inserting after subparagraph (B) of such paragraph the following
  new subparagraph:
  `(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;'; and
  (3) in subparagraph (G) (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 (H) (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)(G) and (H), 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)(15) of this section.'.
  (g) 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, arising from any material inaccuracy
  of information submitted by an institution to the Secretary.
  `(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--
  `(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.
  Section 491 of the Act is amended by striking subsection (j).
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 Disbursing 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)(1)(A), in the two most recent
  audits; or
  `(B) if required to refund moneys to the Secretary because of audits
  performed under section 487(c)(1)(A), the refunds may be no more than
  2 percent of 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 cumulative default rate, as defined
  in section 462(h), of not greater than 7.5 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
  of 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.(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- 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
  Administrative 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 APPROVING 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 approving agency in each State to be
  responsible for the conduct or coordination of the review and approval of
  institutions of higher education for the purposes of determining eligibility
  under this title; and
  `(2) provide Federal funds to each State postsecondary approving 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(h); and
  `(B) may grant only provisional certification for all institutions in the
  State pursuant to section 481(f); 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 part 1 of
  this title.
`SEC. 495. STATE POSTSECONDARY APPROVING AGENCY AGREEMENTS.
  `(a) STATE ORGANIZATION STRUCTURES- (1) Each agreement shall describe
  a State organizational structure that identifies the State agency or
  instrumentality responsible for review and approval of each institution
  of higher education in the State for participation in student assistance
  programs 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 postsecondary approving agency.
  `(2) For the purposes of this part, the designation of a State postsecondary
  approving 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; or
  `(E) as an authorization for any State postsecondary approving agency
  to exercise planning, policy, coordinating, supervisory, budgeting, or
  administrative powers over any postsecondary institution.
  `(5) Notwithstanding the provisions of paragraphs (2), (3), and (4) of this
  subsection, the Secretary may require each State to develop an organizational
  structure, that designates a State agency or instrumentality as having
  responsibility for the review and approval of each institution of higher
  education in that State as part of the agreement pursuant to this part.
  `(b) CONTENTS OF AGREEMENTS- Agreements between each State and the Secretary
  shall contain the following elements:
  `(1) A designation of a single State postsecondary approving 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 standard developed pursuant to section 497.
  `(2) Assurances that the State will review and approve or disapprove
  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(e).
  `(3) Assurances that the State postsecondary approving 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
  approving 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 State postsecondary approving agency 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 APPROVING AGENCY COSTS.
  `(a) PAYMENTS- Subject to subsection (b), the Secretary shall reimburse
  the States for the costs of performing State postsecondary approving agency
  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. 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 APPROVING AGENCIES.
  `(a) STATE REVIEW- The State postsecondary approving agency shall review
  all institutions of higher education in the State which are eligible or
  which desire to become eligible under this title according to the criteria
  provided in subsection (b). Institutions of higher education which do not
  meet any of the criteria provided in subsection (b) shall be approved for
  eligibility under this title by the State postsecondary approving agency
  without further review by the agency. Institutions of higher education
  which meet one or more of the criteria provided in subsection (b) shall
  be reviewed pursuant to the standards provided in subsection (d).
  `(b) STATE CRITERIA- The criteria for the initial review of institutions
  of higher education are:
  `(1) a cohort default rate as defined in section 435(m) equal to or greater
  than 25 percent;
  `(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) a limitation, suspension, or termination action by the Secretary
  against the institution pursuant to sections 487(c)(1)(D) or (E) or section
  487(c)(2)(A) during the preceding 5 years;
  `(4) 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 2 percent of the funds
  the institution received from the programs established by this title for
  the year;
  `(5) a citation of the institution by the Secretary for failure to submit
  audits required by this title in a timely fashion;
  `(6) a year-to-year fluctuation of more than 25 percent in the amounts
  received by students in either Pell Grants or Stafford Loans under sections
  428 and 428A, which are not accounted for by changes in these programs;
  `(7) 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 merger of 2 or more eligible institutions;
  `(D) the division of 1 or more institutions into 2 or more institutions;
  `(E) the transfer of the controlling interest of stock of the institution
  to its parent corporation; or
  `(F) the transfer of the liabilities of the institution to its parent
  corporation;
  `(8) lack of participation in 1 or more of the programs established by
  this title for more than 5 years;
  `(9) a significant number of student complaints related to the management
  or conduct of the programs established by this title; and
  `(10) such other criteria as the Secretary establishes by regulation.
  `(c) USE OF RECENT DATA- The criteria provided for in subsection (b)
  shall be measured solely on the basis of the most recent available data
  provided by the Secretary. Institutions may request verification of the
  data provided by the Secretary.
  `(d) STATE STANDARDS- Institutions which meet one or more of the criteria
  in subsection (b) shall meet 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;
  `(2) the adequacy of the space, equipment, instructional material,
  instructional personnel, 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;
  `(3) 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;
  `(4) the existence of a method to assess a student's ability to succeed
  in the course of study for which he or she has applied;
  `(5) the enforcement of standards relating to attendance and academic
  progress and the maintenance of adequate student records for the purpose
  of enforcing such standards;
  `(6) 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;
  `(7) 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;
  `(8) 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; and
  `(9) 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.
  `(e) SUBSTITUTIONS PROHIBITED- The State postsecondary approving 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 approval of
  compliance with standards in subsection (d).
  `(f) STATE CONTRACTS- If the State postsecondary approving agency contracts
  with a private agency or body for assistance in performing State approving
  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 postsecondary approving
  agency 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 postsecondary
  approving agency 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) DISAPPROVAL AUTHORITY- A State postsecondary approving agency may
  determine that an institution of higher education should be disapproved
  based on its own findings or the findings of a Federal entity in accordance
  with the following procedures:
  `(1) STATE POSTSECONDARY APPROVING AGENCY FINDINGS- If a State postsecondary
  approving agency finds that an institution of higher education is not in
  compliance with this section, such State postsecondary approving 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
  approving agency disapproves an institution of higher education, such
  State postsecondary approving agency shall notify the Secretary. The
  Secretary shall terminate such institution's participation in programs
  under this title.
  `(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 State postsecondary approving agency (or agencies, in the case of
  multi-State institutions) of such action within a time period prescribed
  in the Secretary's regulations and the State (or States) may disapprove
  such institutions for the purposes of this part.
  `(3) PROCEDURAL PROTECTIONS FOR DISAPPROVAL- The Secretary shall, by
  regulation, prescribe minimum procedural standards for the disapproval of
  institutions of higher education by State postsecondary approving agencies
  for purposes of this title.
  `(j) LIMIT ON STATE POSTSECONDARY APPROVING AGENCY FUNCTIONS- The functions
  of State postsecondary approving 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 postsecondary approving agency shall
  establish procedures for receiving and responding to consumer complaints
  about approved 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. The plan required in section 495(b)
  may include, but not be limited to, such mechanisms as--
  `(1) assessing fees to finance State oversight and protect against tuition
  liabilities;
  `(2) conducting on-site investigations;
  `(3) pressing civil or criminal charges against institutions of higher
  education or school owners or directors or imposing civil fines;
  `(4) imposing preenrollment academic standards for students; and
  `(5) establishing disclosure and reporting requirements on institutions
  of higher education, school owners, and directors.'.
SEC. 497A. DEFINITIONS.
  Section 481(a) of the Act is amended by inserting after paragraph (4)
  the following new paragraph:
  `(5)(A) The term `institution of higher education' does not include
  institutions of higher education that are not currently approved by a
  State postsecondary approval agency in accordance with the requirements
  of part H of this title.
  `(B) Subparagraph (A) shall not apply to any institution which--
  `(i) has a program participation agreement with the Secretary in accordance
  with section 487 in effect as of the effective date of this part H; and
  `(ii) has made timely application to the appropriate State approving agency
  in accordance with the requirements of this part H,
unless the Secretary has terminated such institution's participation in
programs under this title in accordance with section 487 or subsection (i)
of section 497.'.
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 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' and inserting `October 1, 1997'.
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.
`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 Commonwealth of the Northern Mariana Islands,
  and American Samoa.
  `(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;
  `(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; and
  `(vi) 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, including programs intended to train preschool and
  early childhood education specialists, and the State laws and regulations
  relating to such programs, 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 September 30, 1995, and
  such results shall be reported to the Secretary. Beginning in fiscal year
  1996, State educational agencies shall use at least 75 percent of their
  funds provided under section 511(b)(3)(C) to implement the findings of the
  study and to assist schools of education throughout the State in meeting any
  new requirements that result from the study. Pursuant to section 515(b)(5),
  the State educational agency shall award grants to institutions of higher
  education to implement the findings of the study.
  `(d) 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.
  `(2) EARLY CHILDHOOD ACADEMIES- Each State educational agency may also
  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) AUTHORIZED ACTIVITIES-
  `(A) Each State choosing to establish State academies for teachers may
  establish a separate academy in each of the 5 core academic subjects
  (English, mathematics, science, history, 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 either in addition to or in lieu of
  a core academic subject area.
  `(B) 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, 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 of the
  five core academic disciplines described in subparagraph (A), except as
  provided in subsection (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
  `(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.
  `(e) 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;
  `(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 purpose 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) 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;
  `(5) 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 (6); and
  `(B) a description of the appeals procedures required to be established
  under paragraph (7) under which a recipient may appeal a determination of
  noncompliance with any provision under this subpart;
  `(6) provides for procedures under which a recipient of assistance received
  under this part who teaches for less than the period required under paragraph
  (4)(A) will have the repayment requirements reduced or eliminated consistent
  with the provisions of sections 527 and 528;
  `(7) provides for appeals procedures under which a recipient may appeal
  any determination of noncompliance with any provision under this part; and
  `(8) 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 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.
  `(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.
  `(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 geographically 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' has the same meaning (A) as defined under
  section 417(a)(d) of this Act or (B) as defined under section 418A(c)(1)
  of this Act; and
  `(2) the term `children' means children who are eligible to receive services
  under chapter 1 of title I of the Elementary and Secondary Education Act
  of 1965 and migrant children.
  `(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 National Mini Corps;
  `(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 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.
  `(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.
  `(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 chapter 1 in that State bears to the total
  allocation of funds under 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 higher education agency 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 557 and except in the circumstances provided in
  section 558.
  `(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; and
  `(2) establishing regional clearinghouses.
`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 pay the
  Federal share of the costs of establishing a Teacher Job Bank Clearinghouse
  which shall--
  `(1) assist public and private education agencies 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 capacity to efficiently and effectively handle
  a large volume of inquiries from employers and potential employees;
  `(2) a demonstration of support from public and private education agencies
  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 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) are representative of 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
  underrepresented minorities, 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--
  `(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 the supply of teachers with 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 4907 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 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 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) a significant drug problem as indicated by other appropriate data.
  `(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 581.
`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,
  for demonstrated success in the operation of the program assisted under
  this subpart.
`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 composed
  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 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) 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. USE OF FUNDS.
  `Grants under this subpart may be used for the program of encouraging
  minority students to prepare to become elementary and secondary school
  teachers described in the application approved under section 595D.
`SEC. 595D. 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.'.
  (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, professional international affairs training, and international
  studies 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, 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) SUMMER INSTITUTES AND OTHER ACTIVITIES- 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,
  professional schools of international affairs, 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 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;
  `(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 which 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 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 schools of international affairs,
  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.
  `(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;
  `(F) research designed to promote the international competitiveness of
  American businesses and firms, including those not currently active in
  international trade; and
  `(G) opportunities for business students to study abroad in locations
  which are important to the existing and future economic well-being of the
  United States.
  `(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; and
  `(D) summer institutes in international business, foreign area studies,
  professional schools of international affairs, and other international
  studies designed to carry out the purposes of paragraph (1) of this
  subsection.
  `(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 schools of 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. 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, professional schools of
  international affairs, 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. 614. AUTHORIZATION OF APPROPRIATIONS.
  `(a) CENTERS FOR INTERNATIONAL BUSINESS EDUCATION- There are authorized
  to be appropriated $10,000,000 for the fiscal year 1993 and for each of
  the 4 succeeding fiscal years to carry out the provisions of section 612.
  `(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 613.
`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 nationally recognized 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, and other institutions of higher
  education with significant minority student populations. Eligible students
  expenses shall be shared by the Institute 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
  $15,000 annually to students who undertake full-time study and who agree
  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, and other institutions of
  higher education with significant numbers of minority students 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 or international service.
`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 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.'.
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 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, 783, and 795 as sections 771, 772,
  773, and 781, respectively; and
  (4) 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 fr