Summary: S.1839 — 96th Congress (1979-1980)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Indefinitely postponed in Senate (06/24/1980)

(Measure indefinitely postponed in Senate, H. R. 5192 passed in lieu)

Education Amendments of 1980 - Amends the Higher Education Act of 1965 to replace all references to the Commissioner of Education and to the Secretary of Health, Education, and Welfare with references to the Secretary of Education. Defines "Department" as the Department of Education.

Specifies that the authorization to enter into contracts or other obligations under such Act shall be effective for fiscal year 1981 and any succeeding fiscal year only to the extent or in such amounts as are provided in advance in appropriation Acts.

=Title I: Establishment of a New Title I of the Higher Education Act of 1965= - Amends the Higher Education Act of 1965 to establish a new title I: "Continuing Postsecondary Education Program and Planning".

Establishes a Commission on National Development in Postsecondary Education to review the effectiveness of policies to promote specified Federal responsibilities in the area of postsecondary education (including use of Federal student assistance to recruit and retain members of the Armed Forces) and to submit a final report to the President and the Congress by January 1, 1983. Terminates the Commission 60 days after submission of the final report. Authorizes appropriations for the period from October 1, 1981, through March 1, 1983, to carry out Commission activities.

Directs the Secretary to make State allotments of funds for State planning and continuing education programs, according to specified formulas. Requires States to use portions of such funds for comprehensive statewide planning, information services, and continuing education. Authorizes the Secretary to make discretionary grants to and contracts with public and private entities from a specified portion of such funds.

Directs the President to appoint a National Advisory Council on Continuing Education to examine all federally supported continuing education and training programs, to make recommendations to eliminate duplication and effectuate coordination of such programs, and to report annually to the President, the Congress, and the Secretary.

Directs the Secretary to conduct a study of the remaining barriers to adult postsecondary education, analyzing characteristics of current or potential adult postsecondary students (individuals 22-years of age or older) and the Federal response, and the ability of educational institutions to respond, to the needs of the growing postsecondary student population. Directs the Secretary to include specified considerations in such analysis and to coordinate such study with the activities of the Commission on National Development in Postsecondary Education and with other studies on student financial assistance authorized under such Act.

Repeals specified Education Information programs (under title IV, part A, of such Act) of grants to States to pay the Federal share of the cost of planning, establishing, and operating Education Information Centers.

Authorizes appropriations for fiscal years 1981 through 1985 to carry out State planning and continuing education programs. Requires that the non-Federal share cover at least one-third of the cost of such programs.

Directs the Secretary to make grants to and contracts with States and educational institutions for institutional planning and adaptation pilot programs. Sets forth: (1) permissible uses of financial assistance for such programs; (2) application requirements; (3) planning and technical assistance functions; and (4) reports and evaluation requirements. Authorizes appropriations for fiscal years 1981 through 1985 to carry out such programs.

Directs the Secretary to make grants to and contracts with institutions of higher education, nonprofit community organizations, and employers and labor organizations contracting with institutions of higher education, for women's worksite development demonstration programs. Sets forth provisions, with regard to such programs, for: (1) applications; (2) uses of funds; and (3) grants for national organizations to coordinate, evaluate, and provide technical assistance. Limits financial assistance for such programs to $75,000 per year per eligible recipient (except national organizations). Authorizes appropriations for fiscal years 1981 through 1985 for such programs. Directs the Secretary to set aside a minimum specified portion of such funds for national coordination and evaluation.

Directs the Secretary to make grants to and contracts with institutions of higher education for postsecondary education and youth unemployment transition three-year demonstration programs, giving special consideration to educational institutions that primarily serve communities experiencing high youth unemployment and low per capita income. Authorizes appropriations for fiscal years 1981 through 1983 for such grants.

Sets forth activities required of educational institutions in carrying out such programs. Requires each educational institution desiring such a grant to establish a community education work foundation following specified guidelines.

Sets forth provisions, with regard to such programs, for: (1) limitations on grants; (2) review panels; (3) periodic review by the Intergovernmental Advisory Council on Education; (4) uses of funds; (5) regulations issued by the Secretary; and (6) evaluation by the National Institute of Education (using two percent of the funds appropriated for such grants).

=Title II: College Library Assistance and Library Training and Research= - Extends the authorizations of appropriations for the existing programs of grants for college library resources, library training and research, and strengthening research library resources.

Establishes a new program to assess the feasibility and advisability of, and, if feasible and advisable, prepare a design for, a national periodical system to preserve and provide access to a comprehensive collection of periodical literature for public and private libraries throughout the United States. Establishes a nonprofit National Periodical System Corporation. Sets forth provisions for: (1) the functions of the Corporation (including guidelines for the design of such system); (2) a Board of Directors; (3) a Director and staff of the Corporation; (4) its nonprofit nature; (5) its authority; (6) approval by Congress of such design before implementation; and (7) no effect on U.S. copyright law. Authorizes appropriations for such new program for fiscal years 1980 through 1982 and for additional sums to implement an approved design for any fiscal year through 1985.

=Title III: Establishment of a New Title III of the Higher Education Act of 1965= - Establishes a new title III: "Institutional Aid".

Directs the Secretary of Education to carry out a program of short-term Federal assistance to strengthen the planning, management, and fiscal capabilities of institutions with special needs. Sets forth required and optional criteria for determining eligibility for such assistance. Authorizes the Secretary to waive certain requirements for eligible institutions: (1) in order to increase higher education opportunities for American Indians, Spanish-speaking people, low-income individuals, or individuals in rural areas unserved by other postsecondary educational institutions; or (2) if an institution has traditionally served substantial numbers of black students. Sets forth provisions, with regard to such program, for: (1) the purpose and duration of a grant; (2) cooperative arrangements; (3) applications for assistance; (4) Federal share; (5) limitations; and (6) challenge grants. (Provides for a waiver of specified requirements for such challenge grants in the case of any institution with special needs that makes a substantial contribution to medical education opportunities for minorities and the economically disadvantaged).

Directs the Secretary to carry out a program to provide grants to institutions of higher education with substantial percentages of students from low-income families. Requires that at least 30 percent of sums available for such grants for each fiscal year be available only for eligible junior or community colleges, with the remainder available to eligible institutions planning to award a bachelor's degree during such year. Sets forth provisions for: (1) criteria for eligibility; (2) amounts of grants; (3) uses of funds; and (4) applications.

Authorizes appropriations for carrying out title III institutional aid programs for fiscal years 1981 through 1985. Requires that, of such sums appropriated in each fiscal year, there be available 50 percent for aid to institutions with special needs and 50 percent for assistance to institutions enrolling substantial percentages of disadvantaged students. Directs the Secretary to assure that such institutions will not receive an amount less than the amount they received in fiscal year 1979. Directs the Secretary to reserve a specified portion of funds for challenge grants to institutions with special needs.

=Title IV: Student Assistance= - Amends title IV (Student Assistance) of such Act to redefine student eligibility for grants, loans, and work assistance under such title to include: (1) attendance at an eligible institution; (2) carrying at least one-half the normal full-time workload; (3) maintaining satisfactory progress in the course of study, according to specified guidelines; (4) not owing a refund on previous grants or being in default on a student loan; and (5) filing a statement that such funds will be used solely for educational purposes. Requires a demonstration of financial need, as determined by a need analysis, for specified forms of financial assistance under such title, including basic educational opportunity grants and supplemental educational opportunity grants.

Redefines institutional eligibility for purposes of title IV programs (except grants to States for State student incentives) to include: (1) a program participation agreement with the Secretary of Education; (2) continued spending of funds from other sources in its scholarship and student aid program (in the case of participant institutions in the supplemental educational opportunity grant program and work-study programs); (3) proper and efficient administration of funds; (4) compliance with specified provisions and regulations relating to fiscal eligibility; (5) reporting to the Secretary and to holders of loans to students under certain programs; and (6) providing institutional and financial assistance information for students.

Extends the basic educational opportunity grants program through fiscal year 1985.

Declares that such basic grants shall be known as "Pell Grants".

Sets the maximum amount of each such grant for academic years 1981-1982 through 1985-1986. Establishes a schedule of reductions, in case of insufficient funds, providing for uniformly increasing percentage reduction as the entitlement decreases.

Sets forth recommended, non-mandatory funding levels to be provided for the supplemental education opportunity grants program, the college work study program, and the national direct student loan program before increases in funding should be provided for the basic educational opportunity grant program.

Extends the supplemental educational opportunity grants program through fiscal year 1985.

Requires that sums appropriated for such program be available for payments to institutions until the end of the second fiscal year succeeding the fiscal year for which they were appropriated.

Raises the limit on the amount of each such grant to $2,000 per academic year. Allows the $200 minimum payment requirement to be reduced proportionately for students enrolled for less than a full academic year.

Eliminates a requirement relating to the prescription of criteria and schedules for the guidance of institutions in determining student need for supplemental educational opportunity grants. (Prescribes such criteria for need analysis for various forms of assistance, including supplemental educational opportunity grants, under title IV and directs the Secretary of Education to publish such schedules, later in the bill).

Limits the period during which a student may receive supplemental grants to the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution which the student attends. Requires that students meet specified eligibility and application requirements for such grants.

Requires institutions to select individuals, from those eligible for such supplemental grants, for the award of such grants and to determine the amounts to be paid them, according to specified criteria. Prohibits an eligible institution from using more than ten percent of its allocation for less-than-half-time undergraduate students eligible for and in need of such grants. Sets forth a formula for allocations to eligible institutions by the Secretary from grant funds apportioned to States. Permits each institution to use such allocations for initial and continuing supplemental grants in a manner which it determines will best achieve the purposes of the supplemental grant program.

Extends the program of grants to States for State student incentives through fiscal year 1985.

Sets forth a formula for the allotment of such grant funds to States.

Raises the limit on the amount of such incentive grants to $2,000 per academic year.

Waives the requirement that all nonprofit institutions of higher education in a State be eligible to participate in the State incentive grant program, in the case of any State in which such participation violates a statute enacted prior to October 1, 1978. Requires that States incentive grant programs: (1) permit eligible institutions, with State agency approval, to use their payments in a manner they determine will best achieve program purposes; and (2) permit eligible institutions, with the express approval of a State agency to use any portion of payments for grants to less-than-half-time students.

Extends special programs for students from disadvantaged backgrounds through fiscal year 1985.

Directs the Secretary, in making grants and contracts for such special programs, to consider the prior experience of service delivery under the particular program for which funds are sought by each applicant.

Adds the training of persons serving or preparing for service in such special programs as one purpose for which such grants and contracts may be designed.

Sets forth eligibility requirements for such special programs, including Talent Search, Upward Bound, Special Services for Disadvantaged Students, and Educational Opportunity Centers. Requires that specified percentages of those participating in such programs be low-income individuals and/or first-generation college students. Authorizes the Secretary to make grants to provide training for staff and leadership personnel in such programs.

Eliminates the title IV program of Education Information.

Establishes a new program entitled "Special Programs for Students Whose Families are Engaged in Migrant and Seasonal Farmwork". Directs the Secretary to maintain and expand existing secondary and postsecondary high school equivalency program and college assistance migrant program projects designed to provide services for students of families engaged in migrant and seasonal farmwork. Authorizes appropriations for such program for fiscal years 1981 through 1985.

Repeals the program of Assistance to Institutions of Higher Education involving cost-of-education payments to each institution of higher education.

Extends the program of veterans' cost-of-instruction payments to institutions of higher education through fiscal year 1985 for some institutions and through any academic year ending before the end of fiscal year 1986 for other institutions.

Requires institutions applying for such payments to set forth plans to insure an adequate effort to carry out programs coordinated with those of a specified veterans' readjustment counseling program and with the veterans' employment and training initiatives authorized under the Comprehensive Employment and Training Act and other specified legislation. Eliminates the less-than-2,500-students-in-attendance size requirement for institutions which may, upon determination of a necessity by the Secretary, carry out such veterans' programs through a consortium agreement with other institutions.

Lowers to $75,000 (formerly $135,000) the maximum amount of such veterans' program payments to any one school and its branches in any fiscal year.

Raises the percentage (from 75 to 90) of such amount received which must be spent to maintain a full-time office of veterans' affairs at the institution. Requires that the veterans' cost-of-instruction payments program be administered by an identifiable administrative unit in the Department of Education.

Extends the Federal loan insurance program through fiscal year 1986 for new student loans and through fiscal year 1990 for loans to enable students with prior insured loans to continue or complete their education program.

Sets a $3,000 limit on the total amount of loans made to an independent undergraduate student in any academic year which may be covered by Federal loan insurance. Sets a limitation on aggregate unpaid principal amounts for all such loans of $15,000 for independent undergraduate students. (Retains the $7,500 limit for non-independent undergraduates). Raises such limit for graduate or professional students to $25,000 (from $15,000). Makes similar changes in limitations on State and non-profit institution loan insurance programs which receive Federal payments to reduce student interest costs or which are reimbursed under Federal loan insurance supplemental guaranty agreements. Authorizes the Secretary to increase the limits applicable to graduate and professional students pursuing exceptionally expensive programs.

Includes among those permitted to defer repayment of principal on Federally-insured student loans, officers in the Commissioned Corps of the Public Health Service, full-time volunteers with specified tax-exempt organizations, interns, and those totally disabled or unable to secure employment because of the care required by a temporarily disabled spouse. Permits similar deferments under specified student loan programs insured by States or nonprofit institutions.

Authorizes each State agency and nonprofit private institution or organization with which the Secretary has a specified agreement, or an eligible lender in such State, to make loans directly to students otherwise unable to obtain federally guaranteed and insured loans. Permits such entities to receive payments, from sums paid by the Student Loan Marketing Association, for each fiscal year to meet the demand for such loans. Limits the amount of such payments to 25 percent of the average of the loans guaranteed by a given entity for three years preceding the fiscal year for which the determination is made (or, if such entity does not have three years previous experience, 25 percent of the loans guaranteed under a program of a State of comparable size). Requires that such loans have the same terms, conditions, and benefits as all other guaranteed and insured student loans.

Raises from seven percent to nine percent the maximum rate of interest per year on the unpaid principal balance of a loan which the Secretary may prescribe and define for federally insured student loans. Reduces to four months (formerly, nine-to-12 months) the period after a student ceases to carry at least one-half the normal full-time academic workload and during which: (1) the student may specifically request loan repayment over less than a five year period; and (2) the student may not be required to begin repayment. Makes similar changes in maximum interest rates and repayment periods for loans under the program of Federal payments to reduce student interest cost.

Directs the Secretary to enter into cooperative agreements with credit bureau organizations to provide for the exchange of information concerning student borrowers. Requires that such agreements provide that: (1) the Secretary disclose only accurate and complete information and not disclose that a loan is in default until a reasonable effort has been made to collect the debt; (2) such organizations will be promptly notified, and will promptly record changes submitted by the Secretary or objections by the borrower with respect to such information; (3) no unfair, unreasonable, harassing, or misleading collection practices will result; and (4) the Secretary will notify the borrower (except in the case of disclosures made to obtain the borrower's location) that such information will only be disclosed after a reasonable period (at least 30 days from the date such notice has been sent) has passed in which such borrower has failed to enter into repayment.

Directs the Secretary to establish: (1) such disclosure of information as a routine use; and (2) a system for the prompt notification of any borrower of any such disclosure. Declares that such information disclosed by the Secretary to credit bureau organizations shall not constitute a system of records under specified provisions of the Privacy Act of 1974 and that credit bureau organizations entering into such agreements with the Secretary shall not be considered Government contractors within the meaning of such Act. Requires that written agreements evidencing federally-insured student loans contain notice of such system of disclosure and provide that the lender, on request of the borrower, will inform such credit bureaus of the repayment status of the note.

Authorizes the Secretary to provide eligible lenders, and State or nonprofit corporations having specified guaranty agreements, with any relevant information from whatever source with respect to borrowers.

Provides, for purposes of State or nonprofit private institutional student loan insurance program agreements with the Secretary for Federal payments to reduce interest costs, that insurance premiums in such programs: (1) be limited to one percent per year on the unpaid principal amount of the loan; and (2) may be used to insure loans and to cover administrative, operating and overhead costs of the insurer. Includes the administrative costs of monitoring the enrollment and repayment status of students among those items: (1) which such State or nonprofit entities may deduct before determining the Secretary's equitable share of payments made by the borrower; and (2) for which the Secretary is authorized to make payments to such entities.

Redefines the administrative costs of promotion of commercial lender participation, for purposes of provisions relating to such agreements, to include the costs of providing interest and special allowance computation and billing services to lenders and the amount of non-Federal funds expended by an insurer as incentive payments to lenders to induce them to improve or expand their program participation. Permits State agencies or nonprofit or private entities, with such agreements with the Secretary, to enter into agreements with eligible lenders (other than an eligible institution or an agency or instrumentality of the State) to authorize multiple disbursements of the proceeds of a loan under which the lender will pay the proceeds of such loans into an escrow account to be administered by the State or nonprofit private entity according to specified provisions.

Requires that eligible lenders enter into agreements with the Secretary under which they will provide thorough and accurate loan counseling, with specified inclusions, on guaranteed or insured loans to the student borrower.

Permits parents of a dependent undergraduate student to borrow, under the same terms as other guaranteed student loans, up to $3,000 per student per academic year and up to $15,000 as an aggregated insured principal for loans on behalf of any one student. Prohibits such borrowing to pay for the expenses of more than three students in any academic year. Provides for annual insurable limits, deferments of repayment of principal, and interest rates for such loans. Directs the Secretary to insure such loans in a State only if the State will not do so within a specified period.

Revises the formulas for computing the amount of specified special allowances and the amount of daily interest on such allowances. Establishes a Committee on Determining Student Loan Special Allowances (which replaces the Committee on the Process of Determining Student Loan Special Allowances) to report to Congress on improved methods, in accord with revised objectives, for the determination of the quarterly rate of special allowances.

Prohibits the payment of any such special allowance unless the authority issuing such obligations submits for the approval of the Secretary a plan of doing business. Requires that such plan assure that: (1) no eligible lender in the area served by the authority will be excluded from participation, under the same terms and conditions for all, in such program; (2) no director or staff member of the authority may own stock in, or receive compensation from, any agency that would contract to service and collect the loans of the authority; (3) student loans will not be purchased from participating lenders at a rate less than nor more than one percent of the unpaid principal amount borrowed plus accrued interest to the date of acquisition; (4) the authority will, within the limit of funds available and subject to applicable State and Federal law, make loans to, or purchase loans incurred by, all eligible students attending an eligible institution, or residing, within the area served; (5) the authority has a plan to pursue the development of new lender participation in a continuing program of benefits to students together with assurances of existing lender commitments to the program; and (6) there will be an annual audit of the authority by a certified public accounting firm, including review of compliance with the plan.

Revises provisions establishing the Student Loan Marketing Association so that Association is no longer "Government-sponsored". Permits the Association's Board of Directors to fix the par value of its common stock from time to time. Terminates the requirement that the Secretary prescribe regulations for the maximum number of shares of such stock which may be issued or be outstanding at any one time. Permits dividends to be declared on nonvoting common stock (as well as on common stock). Authorizes the Association to issue: (1) nonvoting common stock which shall be freely transferable; and (2) nonvoting preferred stock.

Sets forth requirements for the types of security which must be made on warehousing advances made by the Association and for the use of proceeds from such advances. Requires that student loans set aside pursuant to the offering of participations or pooled interests be adequate at all times to ensure timely principal and interest payments of such securities.

Declares that nothing in the provisions requiring the approval of the Secretary of Education and the Secretary of the Treasury for the issuance and having of outstanding obligations by the Association shall be construed so as to authorize such Secretaries to limit, control, or constrain programs of the Association or support of the Guaranteed Student Loan Program by the Association. Prohibits the Secretary of the Treasury from conditioning approval of such issuance on such obligations being made or sold to the Federal Financing Bank. Extends by two years (from prior to July 1, 1982, to prior to July 1, 1984) the authority of the Secretary of Education to guarantee payment on such obligations. Requires prompt Government action on Association requests for approvals to issue such obligations. Authorizes the Secretary of the Treasury to purchase such obligations, within specified limits. Authorizes the Association to sell or issue obligations on the security of guaranteed student loans.

Authorizes the Association to make new insurable loans to specified borrowers to discharge the liability on old student loans. Directs the Association to make payments to State and nonprofit entities and eligible lenders submitting applications setting forth that such payments are necessary to enable such groups to carry out the making of student loans to otherwise ineligible students provided for under this Act. Authorizes the Association to make insurable student loans whenever the Secretary, after consulting with representatives of a State, determines that a substantial portion of all eligible borrowers in a State or within an area of substantial population in a State are unable to obtain student loans. Stipulates that the Association in making such insurable loans shall not be deemed a creditor for purposes of the Consumer Credit Protection Act.

Provides for student loan consolidation by State and nonprofit private entities having agreements with the Secretary (in which case they will not be deemed creditors for Consumer Credit Protection Act purposes) and by eligible lenders or their designated agents, upon the request of a borrower whose aggregate outstanding indebtedness exceeds $5,000 from two or more programs or lenders under title IV of such Act, or exceeds $7,500 from a single lender under the guaranteed and insured loans programs.

Directs the Secretary to make determinations regarding the due diligence by an insurance beneficiary in the collection of a student loan within 90 days after notification of default and to make payment in full on the amount of the beneficiary's loss pending completion of the due diligence investigation.

Provides for a grace period of four months after the completion of specified periods, or combinations, of study, training, service, or unemployment before repayment of principal on a federally insured or guaranteed student loan must begin.

Provides for the recapture of certain interest subsidies on student loans by requiring borrowers to repay such interest subsidies to the Federal Government in installments during the normal loan repayment period. Exempts from specified types of repayment of interest subsidy requirements: interest on loans to students who borrow for more than four years of undergraduate study, or more than $7,500, or for graduate school; or interest accruing during specified periods of certain types of volunteer social or military service.

Makes technical and conforming amendments.

Extends work-study programs through fiscal year 1985.

Provides that each eligible institution may reserve and award not more than ten percent of the funds made available under such work-study programs for each fiscal year for students enrolled on less than a half-time basis.

Requires that agreements for work-study programs provide assurances that employment made available from funds under such programs: (1) will complement and reinforce the educational program of specified minimum percentages (increasing from ten percent in fiscal year 1981 to 30 percent in fiscal year 1985) of students receiving such assistance, in cooperation with the academic advisors of such students; and (2) will not pay any wage to students employed in part-time employment for the institution itself which is less than the Federal minimum wage.

Directs the Secretary to give preference for the first 75 percent of reallotments of unused college work-study program funds to eligible institutions for use for initiating, improving, and expanding programs of cooperative education conducted in accordance with title VIII of such Act, and according to the ratio of the number of students assisted under such cooperative education program at a given institution to the total number of such assisted students for the fiscal year.

Prohibits criteria established for distribution of work-study assistance within a State from resulting in any institution's receiving an amount less than the institution used for fiscal year 1979 unless there is a substantial decline in the student enrollment of such institution.

Requires that seven-and-one-half percent of work-study assistance sums granted to an institution for any fiscal year remain available for expenditure during the succeeding fiscal year to carry out work-study programs. Authorizes the Secretary to make grants of up to seven-and-one-half percent of such sums which an institution may receive from appropriated work-study funds for a fiscal year for expenditure during the preceeding fiscal year.

Raises the limit on the amount which an institution may use for job location and development programs to the lesser of ten percent or $25,000 (formerly, the lesser of ten percent or $15,000) of its allotment for work-study programs.

Establishes a new program of work-study for community service-learning on behalf of low-income individuals and families. Authorizes each institution participating in work-study programs to use funds payable from the work-study allotment, in accordance with regulations of the Secretary and in an amount equal to ten percent of the institution's expenditures under work-study programs, to conduct that institution's program of community service-learning.

Establishes a Government corporation, the National Direct Student Loan Association, to administer the program of direct loans to students in institutions of higher education. Provides for such Association's Board of Directors, general powers, functions, obligations, management, audits, reports, and authorization of appropriations.

Prohibits such Association from entering into specified contracts or arrangements with any collection agency unless such contracts or arrangements are made on a competitive basis.

Authorizes the Association to enter into cooperative agreements with credit bureau organizations to provide for the exchange of information concerning national direct student loan borrowers, with required provisions for disclosure and notification to borrowers similar to the requirements set forth above for agreements made by the Secretary with credit bureaus concerning guaranteed student loan borrowers.

Reestablishes the program of direct loans to students in institutions of higher education.

Directs the National Direct Student Loan Association to make payments to each institution of higher education with which the Association has an agreement on the basis of the estimated needs of such institution for making student loans.

Requires that such agreements provide, among other items: (1) for the deposit in each institution's direct student loan fund of payments made under such program and any other earnings of the fund; (2) that, upon the beginning of the repayment period the note or evidence shall be assigned to the Association for collection, unless the Association finds that the institution requests to act as a collecting agent for direct student loans and has a good collection record, in which case the Association and the institution may agree that the institution act as collection agent.

Permits up to ten percent of direct student loan funds available to an institution in any fiscal year to be used for loans to less than half-time students in need of such loans.

Requires the payments in lieu of reimbursement for direct student loan program administrative expenses be used first by an institution to carry out specified requirements for institutional and financial assistance information for students and then to offset the costs to the institution for the direct student loan program.

Requires the limit on the aggregate of loans to an individual for all years made by an institution from national direct student loan funds from $10,000 to $12,000 for graduate or professional students, from $5,000 to $6,000 for undergraduates who have completed two years towards the bachelor's degree, and from $2,500 to $3,000 for any other students.

Redefines student eligibility requirements for national direct student loans to include: (1) demonstrating financial need in accordance with specified criteria; (2) not owing a refund on previous grants and not being in default on specified student loans; and (3) filing a statement that such funds will be used solely for educational purposes.

Transfers to the Association from the Commissioner of Education or from the institution having an agreement with a student for a direct student loan specified powers and duties with regard to the funding, terms, and collection of such loans.

Raises the required interest rate on such loans from three percent to seven percent per year. Continues to provide that such interest shall not accrue during specified periods.

Adds to the categories of those permitted to defer, for specified periods, repayment of principal of, or interest on, direct student loans: (1) officers in the Commissioned Corps of the Public Health Service; (2) full-time volunteers with specified tax-exempt organizations; (3) interns; and (4) those temporarily totally disabled or unable to secure employment because of the care required by a temporarily disabled spouse.

Provides for a grace period of nine months after the completion of specified periods of study, service, or disability, or combinations thereof, before repayment of principal on a national direct student loan must begin.

Allows the direct student loans repayment period to be extended up to an additional ten years (beyond the normal ten year nine-month maximum) for student borrower who during the repayment period is a low-income individual, pursuant to unform criteria established by the Association.

Eliminates provisions for the cancellation of national direct student loans for certain forms of public service.

Requires that each institution of higher education with a national direct student loan revolving fund established prior to the Act distribute the balance of such fund after September 30, 1980, and and not later than March 31, 1981, by: (1) first paying the Association an amount which bears the same ratio to the balance in such fund at the close of September 30, 1980, as the total amount of the Federal capital contributions to such fund by the Commissioner of Education in effect to the date of enactment of this Act bears to the sum of such Federal contributions and the institution's capital contributions to such fund; and (2) paying the remainder of such balance to the institution.

Directs each institution with a national direct student loan agreement with the Commissioner prior to the effective date of this Act to assign the note or evidence of the obligation of such loans (except for loans assigned prior to the enactment of this Act) to the Association for collection, unless: (1) the institution requests to act as collecting agent for such loans; (2) the Association finds the institution has a good collection record; and (3) the Association and institution agree that the institution act as collecting agent.

Redefines "institution of higher education" for purposes of title IV Student Assistance programs (excluding the veterans' cost-of-instruction payments and the guaranteed student loans programs) to include all the institutions described in the definition of such term for purposes of the entire Act, as well as proprietary institutions of higher education, postsecondary vocational institutions, schools of nursing of different levels, and any accredited institution which fails to meet specified requirements of such Act because it is not located in a State.

Establishes a need analysis method for determining a student's financial need under all title IV programs, excluding State student incentive grants and guaranteed student loans.

Directs the Secretary to: (1) publish annually in the Federal Register a proposed schedule of expected family contributions for an academic year for various levels of family income to determine a student's need for financial assistance; and (2) provide interested parties an opportunity for comments and recommendations during a 30-day period following such publication. Requires such schedule to be submitted to Congress and, if either house of Congress adopts a resolution of disapproval, directs the Secretary to publish a new schedule.

Directs the Secretary to: (1) develop such schedules in cooperation with representatives and organizations involved in student financial assistance; and (2) promulgate regulations for determining expected family contributions according to specified basic criteria.

Sets forth a formula for determining effective family income.

Limits to 10.5 percent the assessment rate on parental discretionary income for families with adjusted gross incomes which exceed $25,000. Authorizes the Secretary to set assessment rates for families with income above such level.

Directs the Secretary to promulgate special regulations for determining the expected family contribution and effective family income of an independent student, consistent with specified basic criteria.

Sets forth criteria for determining "cost of attendance".

Directs the Secretary to prescribe, in cooperation with student financial assistance groups, a common Federal financial aid application form to be used to determine the need and eligibility of a student for financial assistance under title IV programs (excluding State student incentive grants and guaranteed student loans). Prohibits charging a student or parent a fee for processing the data elements of the form prescribed by the Secretary. Directs the Secretary, to the extent practicable, to enter into contracts with not less than three States, institutions of higher education, and private organizations to process such applications and issue eligibility reports. Authorizes the Secretary to contract for: (1) additional services to assure coordination of Federal and non-Federal aid and to provide information, training, and similar services to institutions, aid officers, counselors, lenders, parents, and students; and (2) development, distribution, and processing of a common pre-eligibility aid form to help students anticipate the amount of aid for which they might be eligible.

Sets forth student eligibility standards for any grant, loan, or work assistance under title IV.

Requires institutions participating in title IV programs to disseminate institutional and financial assistance information for prospective and enrolled students. Adds to the required categories information on: (1) special facilities and services for handicapped students; (2) any organization accrediting, approving, or licensing the institution and its programs; and (3) the institution's standards for satisfactory academic progress.

Authorizes the Secretary to contract for the training of financial aid administrators, student peer counselors, student staff or volunteers, and other part-time staff and volunteers who provide financial aid, admissions and academic counseling and outreach, and student support programs. Specifies uses of such financial assistance.

Authorizes the appropriation of $1,000,000 for each of fiscal years 1981 through 1985 for such purpose.

Sets forth the terms and conditions of institutional eligibility agreements for all title IV programs (excluding State student incentive grants). Authorizes the Secretary to prescribe regulations providing for: (1) fiscal audits of eligible institutions; (2) reasonable standards of institutional financial responsibility; (3) policies and procedures at guaranteed student loan program institutions to notify the holder (or if unknown, the insurer) of the note, within 60 days, of the latest known address and enrollment status of a student who formally terminated enrollment or failed to re-enroll on at least a half-time basis; and (4) the limitation, suspension, or termination of eligibility for any institution upon determination, after reasonable notice and opportunity for hearing, of any violation or failure to carry out any title IV provision. Makes misrepresentation of an institution's programs, financial charges, or the employability of its graduates grounds for suspension or termination of eligibility. Provides for the imposition of civil penalties in certain cases.

Continues the authorization of transfer of up to ten percent of an institution's supplemental grant or work-study allotment between such programs.

Sets forth formulas for the allotment and use of funds to meet administrative expenses under title IV programs.

Provides for criminal penalties for specified violations under title IV.

Authorizes the Secretary to conduct a comprehensive study of the effect of federally authorized student assistance programs upon postsecondary education access and choices of high school students. Directs the Secretary to report a plan for such study to the appropriate committees of the Congress. Authorizes the Secretary to reserve, for purposes of such study, up to $15,000,000 in fiscal years 1981 through 1985 from collections returned from formerly defaulted loans returned into repayment status under the guaranteed and insured student loan program.

=Title V: Teacher Corps and Teacher Training Programs= - Extends the authorization of appropriations for the Teacher Corps program and Teacher Training programs through fiscal year 1985.

Eliminates the limitation (that a specified amount be appropriated in any fiscal year for Teacher Training programs) on the requirement that each State receive grants in any fiscal year sufficient to assure the establishment of one teacher center in the State.

Authorizes teacher centers to provide training to familiarize teachers with developments in testing.

Establishes a new program of training for elementary and secondary school teachers to teach handicapped children in areas with a shortage.

Authorizes the Secretary to make grants, on an equitable basis consistent with specified criteria, to State education agencies for a fellowship program of stipends and for higher education allowances for teachers to be trained to provide special education for handicapped children.

Limits the amount of an individual stipend to $9,000 in any one year. Authorizes appropriations through fiscal year 1985 to carry out such program.

=Title VI: Establishment of a New Title VI of the Higher Education Act of 1965= - Establishes a new title VI of such Act: "International Education Programs". (Replaces the former title VI: "Financial Assistance for the Improvement of Undergraduate Instruction").

Authorizes the Secretary to make grants to or enter into contracts with institutions of higher education to establish foreign language centers and programs, focusing on the teaching of modern foreign languages and cultures. Authorizes grants for centers for specific issues in world affairs, for specified research projects, and for improvement of undergraduate foreign language instruction. Requires the Secretary to ensure an equitable national distribution of available program funds. Authorizes appropriations through fiscal year 1985 for such programs.

Authorizes the Secretary to make grants to or enter into contracts with institutions of higher education to develop international business education and training programs.

Limits the Federal share to 50 percent of the cost of such programs. Authorizes appropriations through fiscal year 1985 for such programs.

Establishes a national advisory board to: (1) consider title VI grants and contracts, as well as those made under specified provisions of the Elementary and Secondary Education Act of 1965; (2) advise the Secretary on specified matters; and (3) review title VI international business education programs.

Amends the Elementary and Secondary Education Act of 1965 to establish a new International Understanding program. Authorizes the Secretary to enter into contracts with or make grants to public or private institutions to develop programs to increase the understanding of students and the public about the cultures, actions, and interconnections of nations and people in order better to evaluate the international and domestic impact of major national policies. Sets forth permissible and impermissible uses of such financial assistance. Authorizes appropriations through fiscal year 1985 to carry out such program. Repeals the foreign studies and language development program provisions of the National Defense Education Act of 1958 and the advanced and undergraduate international studies grant programs provisions of the International Education Act of 1966.

=Title VII: Amendment to Title VII of the higher Education Act of 1965= - Amends title VII of such Act to direct the Secretary to assist institutions of higher education and higher education building agencies to construct, reconstruct, or renovate academic facilities and acquire special equipment for: (1) energy use economy, with a priority for the use of coal, solar, and renewable resources; (2) conforming with specified requirements relating to access for the handicapped, environmental protection, or health and safety; (3) research, facilities, including libraries; (4) coping with unusual increases in enrollment; or (5) detecting, removing or otherwise containing asbestos hazards in academic or other facilities used by students in accordance with regulations prescribed by the Secretary.

Authorizes appropriations through fiscal year 1985 in specified amounts for the State Grant Program, Institutional Grants Program, and Loans Program under title VII.

Raises to $100,000 the minimum amount allotted to any State for any fiscal year for grants to all institutions of postsecondary education other than public community colleges and public technical institutes. Requires that each State's allotment be ratably reduced if appropriations are not sufficient.

Raises the limit on the amount of an institutional grant to 75 percent (formerly 50 percent) of the cost of the project.

Discontinues the program of assistance for the construction of academic facilities and the replacement of equipment and supplies by public institutions of higher education in major disaster areas.

=Title VIII: Cooperative Education= - Amends title VIII of the Higher Education Act of 1965 to extend the authorization of appropriations through 1985 to enable the Secretary to carry out programs of Grants for Programs of Cooperative Education and of Grants and Contracts for Training, Research, and Demonstration.

Limits to $400,000 per institution, or $300,000 times the number of institutions in a consortium, the amount of such grants to plan, establish, expand, or carry out programs of cooperative education. Provides for: (1) a five-year maximum period for any one institution's participation in such program; and (2) a decreasing portion of total administrative costs covered by such grants over such period.

=Title IX: Graduate Programs= - Extends through fiscal year 1985 the authorization of appropriations for the Grants to Institutions of Higher Education program under title IX of the Higher Education Act of 1965.

Revises the title IX program of Fellowships for Graduate and Professional Study. Authorizes appropriations for such program. Authorizes the Secretary to award up to 10,000 fellowships for graduate study. Sets 36 months as the maximum period for each fellowship, with a twelve-month extension under special circumstances. Provides that special emphasis be placed on fellowships for individuals who: (1) plan to pursue a career in public service; (2) are pursuing advanced study in energy resources; (3) are from disadvantaged backgrounds; or (4) plan to pursue a career in energy conservation or development (thus consolidating emphases of former title IV sections).

Repeals the title IX sections entitled Public Service Fellowships, fellowships for Other Purposes, Annual Fellowship Report, and General Assistance for Graduate Schools.

Establishes a new program: The National Graduate Fellows Program. Authorizes the Secretary to award up to 450 fellowships each fiscal year from 1981 through 1985 for graduate study in the arts, humanities, and social sciences by students of superior ability selected on the basis of demonstrated achievement and exceptional promise. Authorizes appropriations for such purpose.

Directs the President to appoint a National Graduate Fellows Program Fellowship Board to: (1) establish general policies for such program; (2) select the fields to be awarded fellowships; (3) determine the number of fellowships within a given field; (4) appoint distinguished panels to select fellows; (5) submit reports to Congress on appropriate modifications; and (6) consult with specified groups.

Establishes a new program: the National Talent Grants for First Year Graduate and Professional Study. Directs the Secretary to make grants to institutions of higher education to provide awards to exceptionally qualified first year graduate and professional students who demonstrate financial need, in accordance with criteria established by the Secretary. Limits the percentage of sums appropriated which may be granted to a single institution. Limits awards to an individual to $2,000. Authorizes appropriations through fiscal year 1985 for such program.

Retains the program of Assistance for Training in the Legal Profession (formerly included in Fellowships for Other Purposes). Authorizes the Secretary through fiscal year 1985 to make grants to, or enter into contracts with, public and private agencies and organizations other than institutions of higher education for the purposes of assisting individuals from disadvantaged backgrounds to undertake training for the legal profession. Sets forth conditions for fellowships under such program. Authorizes appropriations through fiscal year 1985 for such purpose.

Redesignates the Law School Clinical Experience Programs, formerly under title XI, as part of title IX. Authorizes appropriations through fiscal year 1985 for such programs.

=Title X: Establishment of a New Title X of the Higher Education Act of 1965= - Establishes a new title X of such Act: "Fund for the Improvement of Postsecondary Education". (Replaces the former title X: "Establishment and Expansion of Community Colleges"). Repeals the Statewide Plans and the Establishment and Expansion of Community Colleges provisions of the former title X.

Includes the establishment and operation of the Fund for the Improvement of Postsecondary Education (formerly authorized under the General Education Provisions Act) under title X of the Higher Education Act of 1965. Authorizes appropriations for purposes of such title through fiscal year 1985.

Retains and redesignates the establishment of Agencies provisions of title X (relating to a Bureau of Occupational and Adult Education and a Community Unit).

Repeals the provisions of the General Education Provisions Act relating to the Fund for the Improvement of Postsecondary Education.

=Title XI: Establishment of a New Title XI of the Higher Education Act of 1965= - Establishes a new title XI of such Act: the Urban Grant University Program. (Replaces the former title XI, Law School Clinical Experience Programs, which is redesignated as part of title IX of such Act).

Authorizes the Secretary to make grants of up to 90 percent of the project cost to urban universities to help solve urban problems and open up urban resources to the community. Authorizes appropriations through fiscal year 1985 for such program. Limits total institutional grants within any State to 15 percent of the national total.

=Title XII: General Provisions= - Amends title XII of the Higher Education Act of 1965 to make technical and conforming amendments. Replaces provisions relating to comprehensive statewide planning grants with provisions relating to Federal-State relationships and required State agreements for States receiving funds under Title I (Continuing Postsecondary Education and Planning) and under title VII's State Grant Program for the Construction, Reconstruction, and Renovation of Academic Facilities. Repeals provisions relating to the Advisory Council on Graduate Education and to specified funding requirements.

Reestablishes the National Advisory Committee on Accreditation and Institutional Eligibility in the Office of Education, through fiscal year 1985.

=Title XIII: National Institute of Education= - Amends the General Education Provisions Act to extend the authorization of appropriations for the National Institute of Education in amounts equal to specified percentages of sums appropriated or available to the Department of Education for fiscal years 1981 through 1985. Amends such Act to revise the declaration of policy to include the provision of an equal opportunity in education to every person regardless of age. Includes as a priority for the National Institute of Education research and development programs to meet the special needs of the non-traditional student, including the older and part-time student. Repeals provisions relating to a Panel for the Review of Laboratory and Center Operations.

=Title XIV: Robert A. Taft Institute= - Robert A. Taft Institute of Government Trust Act - Establishes in the U.S. Treasury the Robert A. Taft Institute Trust Fund. Directs the Secretary of the Treasury to invest such portion of the Fund not required to meet current withdrawals. Authorizes the Secretary of Education to make grants from the Fund to assist in the development of the Robert A. Taft Institute of Government, located in New York, New York. Limits the total amount of such grants in any fiscal year to the lesser of: (1) the total amount of private contributions received by the institute in the prior fiscal year; or (2) the income of the Fund generated in the prior fiscal year. Authorizes appropriations in a specified amount to the Fund.

=Title XV: General Education Provisions= - Amends the General Education Provisions Act to increase the period of automatic extension of the authorization or duration of expiring programs to two years (formerly, one year) for programs that are forward funded. Allows all other programs to be extended automatically for one year. Provides that appropriations for an extended program are for the extent of the fiscal year, not the calendar year.

Authorizes the Congress to reject, in whole or in part, final regulations submitted by the Department of Education.

Authorizes appropriations for fiscal year 1981 for the Pre-College Science Teacher Training program and for the Minority Institutions Science program (both transferred to the Secretary of Education from the National Science Foundation by the Department of Education Reorganization Act).

Continues the Commission on the Review of the Federal Impact Aid Program, established under the Education Amendments of 1978, for the purpose of preparing and submitting to the President and the Congress three supplemental reports, within a specified period. Requires specified studies to be included in such reports.

Requires that the detailed data and appendices for annual evaluation reports on Federal education activities include tabulations of available data to indicate the effectiveness of the programs and projects by the sex, race, and age of beneficiaries.

Requires a Federal agency to publish a copy of any proposed regulation affecting any institution of higher education in the United States in the Federal Register, together with an educational impact statement to: (1) determine whether any information required is already being gathered by or is available from any other Federal agency or authority; and (2) assess the cost and time involved in compliance by affected institutions.

Authorizes and directs the Secretary of Education to make a comprehensive study of the programs authorized by the Elementary and Secondary Education Act of 1965, the Vocational Education Act of 1963, and the Education of the Handicapped Act to analyze: (1) if there are duplications, conflicts, and unnecessary reporting requirements contained in the laws authorizing, or in the regulations promulgated to carry out such programs; (2) the relationship between such Federal programs and similar State programs; and (3) the feasibility of the use of a single comprehensive State plan for such programs. Authorizes the Secretary to enter into specified agreements with from four to ten States to conduct study projects involving such simplification. Directs the Secretary: (1) through the National Institute of Education, to summarize, synthesize, and analyze such State study projects, including the projected impact of State proposals; and (2) in consultation with the Intergovernmental Advisory Council on Education, to develop a plan to carry out such study and to submit a final report on study projects to the Congress by January 1, 1983. Authorizes appropriations, and authorizes the Secretary to use funds from other available sources, to carry out such study.

=Title XVI: Amendments to the Rehabilitation Act of 1973= - Makes conforming amendments to the Rehabilitation Act of 1973. Requires the Architectural and Transportation Barriers Compliance Board to transmit its report required under the Architectural Barriers Act of 1968 to specified committees of the Congress.

Directs (formerly authorized) the Secretary of Education to establish a central clearinghouse for information and resource availability for handicapped individuals.

=Title XVII: Tax Status= - Exempts the National Periodical System Corporation from taxation by the United States, or any territory or possession thereof, or by any State, county, municipality, or local taxing authority. Provides that property accepted by such Corporation under title II of the Higher Education Act of 1965 shall be a gift, bequest, or devise to the United States for Federal tax purposes.

Exempts the National Direct Student Loan Association from similar forms of taxation, except real property taxation.

=Title XVIII: The William Levi Dawson Chair of Public Affairs= - William Levi Dawson Chair of Public Affairs Act - Authorizes the Secretary of Education to provide financial assistance to establish the William Levi Dawson Chair of Public Affairs at Fisk University, Nashville, Tennessee. Authorizes appropriations for fiscal year 1981, to remain available until expended for such purpose.

=Title XIX: Native Hawaiian Education= - Native Hawaiian Education Act - Amends existing provisions of law relating to impacted areas programs to add a new title, to be known as the "Native Hawaiian Elementary and Secondary School Assistance Act", which establishes a grant program under which grants shall be made to local education agencies to meet the special educational needs of Native Hawaiian children. Directs the Secretary of Education to administer such program.

Sets forth: (1) the formula for determining the amount of a grant to which such an agency is entitled; (2) the requirements of an application for such a grant; and (3) the conditions for approving such an application.

Amends the Elementary and Secondary Education Act of 1965 to establish a grant program for improving educational opportunities for Native Hawaiian children.

Authorizes the Secretary to make grants to State and local educational agencies, local universities, and Native Hawaiian organizations to develop programs including: (1) innovative programs for educationally deprived children; (2) bilingual programs; (3) health programs; (4) early childhood educational programs; (5) guidance, counseling and testing programs; (6) programs for handicapped and gifted children; and (7) teacher and nurse training programs.

Directs the Secretary to establish grant programs for teachers of Native Hawaiian children, and to award fellowships for Native Hawaiians to study in specified fields at institutions of higher education.

Amends the Adult Education Act to establish a grant program for improving educational opportunities for Native Hawaiian adults.

Directs the Secretary to make grants to develop, test, and operate programs for achieving literacy and high school equivalency goals for such adults.

Amends the Indian Education Act to make the Office for Elementary and Secondary Education of the Department of Education responsible for administering the Native Hawaiian educational provisions established under this Act.

Establishes the Advisory Council on Native Hawaiian Education.

Declares that nothing in this Act shall be construed as affecting any provision of the Hawaiian Homes Commission Act, 1920.

=Title XX: New Land Grant Colleges= - Amends the Education Amendments of 1972 to require that the Community College of American Samoa and the Community College of Micronesia be considered land grant colleges with the same provisions for assistance as the College of the Virgin Islands and the University of Guam.

=Title XXI: General Daniel James Memorial Health Education Center= - Directs the Secretary of Education to make a grant to establish the General Daniel James Memorial Health Education Center at Tuskegee Institute, Tuskegee, Alabama. Authorizes appropriations for fiscal year 1981, to be available until expended, for such purpose.

=Title XXII: The Navajo Community College Assistance Program= - Amends the Navajo Community College Act to extend the authorization of appropriations by one year and to revise the funding formula to use a factor determined by adding all the credit hours throughout the year taken by Indian students and dividing the sum by 15. Amends the Tribally Controlled Community Colleges Assistance Act of 1978 to exempt the Navajo Community College from the funding formula therein.

=Title XXIII: Refugee Children Impact Aid Program= - Makes eligible for impact aid payments any local education agency experiencing an enrollment increase in any school year of at least 20 students as the result of the entry into any of its schools of refugee children, including those who are paroled into the States, who are applicants for asylum or who have been granted asylum, since November 1, 1979. Sets forth formulas for determining the amount of such aid. Authorizes appropriations for such purpose.